[House Report 110-417]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-417

======================================================================
 
PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 3920) TO AMEND THE TRADE 
ACT OF 1974 TO REAUTHORIZE TRADE ADJUSTMENT ASSISTANCE, TO EXTEND TRADE 
   ADJUSTMENT ASSISTANCE TO SERVICE WORKERS AND FIRMS, AND FOR OTHER 
                                PURPOSES

                                _______
                                

  October 30, 2007.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

    Mr. Welch, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 781]

    The Committee on Rules, having had under consideration 
House Resolution 781, by a non-record vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 3920, the 
``Trade and Globalization Assistance Act of 2007,'' under a 
structured rule. The resolution provides for one hour of 
debate, with 40 minutes equally divided and controlled by the 
chairman and ranking minority member of the Committee on Ways 
and Means and 20 minutes equally divided and controlled by the 
chairman and ranking minority member of the Committee on 
Education and Labor.
    The resolution waives all points of order against 
consideration of the bill except those arising under clause 9 
or 10 of rule XXI. The resolution provides that the amendment 
in the nature of a substitute recommended by the Committee on 
Ways and Means, modified by the amendment printed in part A of 
this report, shall be considered as adopted and the bill, as 
amended, shall be considered as read. The resolution waives all 
points of order against provisions in the bill, as amended. 
This waiver does not affect the point of order available under 
clause 9 of rule XXI (regarding earmark disclosure).
    The resolution makes in order the substitute amendment 
printed in part B of this report if offered by Rep. Jim McCrery 
(R-LA) or his designee. The resolution provides that the 
substitute amendment shall be considered as read and debatable 
for one hour equally divided and controlled by the proponent 
and an opponent. The resolution waives all points of order 
against the substitute amendment except those arising under 
clause 9 or 10 of rule XXI. The resolution provides one motion 
to recommit with or without instructions. Finally, the 
resolution permits the Chair, during consideration of the bill, 
to postpone further consideration of it to a time designated by 
the Speaker.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against the bill's 
consideration (except those arising under clause 9 or 10 of 
rule XXI), includes a waiver of: clause 4(a) of rule XIII 
(availability of committee report); section 302 of the 
Congressional Budget Act (regarding subdivision breach); and 
303 of the Congressional Budget Act (regarding outyear 
spending). Although the resolution waives all points of order 
against provisions in the bill, the Committee is not aware of 
any points of order against the bill. The waiver of all points 
of order against the bill is prophylactic in nature.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 376

    Date: October 30, 2007.
    Measure: H.R. 3920.
    Motion by: Mr. Hastings (WA).
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Ryan, Paul (WI), #5, which 
would require that any State providing TAA assistance for 
workers and any organization receiving a TAA for Firms grant 
submit an annual report assessing certain indicators of 
performance.
    Results: Defeated 4-9.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Dreier--Yea; Diaz-Balart--Yea; Hastings 
(WA)--Yea; Sessions--Yea; Slaughter--Nay.

Rules Committee record vote No. 377

    Date: October 30, 2007.
    Measure: H.R. 3920.
    Motion by: Mr. Sessions.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Price, Tom (GA), #3, which 
strikes Section 13 in bill, dealing with non-waiver of rights 
and remedies.
    Results: Defeated 4-9.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Dreier--Yea; Diaz-Balart--Yea; Hastings 
(WA)--Yea; Sessions--Yea; Slaughter--Nay.

       SUMMARY OF AMENDMENT IN PART A TO BE CONSIDERED AS ADOPTED

    The amendment to H.R. 3920, the Trade and Globalization 
Assistance Act of 2007, as reported, includes provisions 
strengthening the TAA for Farmers program and makes clarifying 
changes to the TAA for Workers program. The amendment also 
reforms the Worker Adjustment and Retraining Notification Act 
and extends COBRA continuation coverage for TAA-eligible and 
Pension Benefit Guaranty Corporation recipients.

           SUMMARY OF AMENDMENT IN PART B TO BE MADE IN ORDER

    1. McCrery (LA): Amendment in the Nature of a Substitute. 
Reauthorizes the Trade Adjustment Assistance (TAA) programs for 
workers, firms and farmers for 5 years. Restructures the TAA to 
increase training options while retaining the current two years 
of income support for TAA for workers program participants who 
remain unemployed and train full-time. Increases the federal 
share of monthly TAA participant premiums for the Health 
Coverage Tax Credit (HCTC) from 65% today to 70% and continues 
HCTC. Allows States to apply for waivers of unemployment 
compensation program rules. Expands the new markets tax credit 
to benefit firms and workers in local communities impacted by 
trade, globalization, and other causes of job loss. Extends 
Workforce Investment Act (WIA) employment and training 
programs, creates a consolidated funding stream, and increases 
State and local flexibility. Provides for collection of 
Unemployment Insurance overpayments. (60 minutes)

         PART A: TEXT OF AMENDMENT TO BE CONSIDERED AS ADOPTED

  Page 6, strike line 17 and all that follows through page 7, 
line 2, and insert the following:
                  (A) in the matter preceding subparagraph 
                (A)--
                          (i) by striking ``Secretary'' and 
                        inserting ``Secretary of Labor''; and
                          (ii) by striking ``or subdivision'' 
                        and inserting ``or public agency, or 
                        subdivision of a firm or public 
                        agency,''; and
                  (B) in subparagraph (A), by striking 
                ``firm)'' and inserting ``firm, and workers in 
                a service sector firm or subdivision of a 
                service sector firm, or of a public agency or 
                subdivision thereof)''; and
  Page 8, lines 1 and 2, strike ``that are''.
  Page 13, line 9, insert a comma before ``has been''.
  Page 14, strike lines 10 through 13 and insert the following:
          (3) in subsection (d)--
                  (A) by striking ``subdivision of the firm'' 
                and all that follows through ``he shall'' and 
                inserting ``subdivision of the firm, or of a 
                public agency or subdivision of a public 
                agency, that total or partial separations from 
                such firm (or subdivision) or public agency (or 
                subdivision) are no longer attributable to the 
                conditions specified in section 222, the 
                Secretary shall''; and
                  (B) by striking ``together with his reasons'' 
                and inserting ``and on the Website of the 
                Department of Labor, together with the 
                Secretary's reasons''.
  Page 17, strike lines 1 through 19 and insert the following:
  ``(b) Determination Regarding Industry-Wide Certification.--
The Secretary shall, not later than 60 days after receiving a 
request or resolution described in subsection (a) with respect 
to a domestic industry, or making the third certification of 
workers in a domestic industry described in subsection (a), as 
the case may be--
          ``(1) determine whether all adversely affected 
        workers in that domestic industry are eligible to apply 
        for assistance under this subchapter, in accordance 
        with the criteria established under subsection (e); or
          ``(2) determine whether all adversely affected 
        workers in that domestic industry in a specific 
        geographic region are eligible to apply for assistance 
        under this subchapter, in accordance with the criteria 
        established under subsection (e).''.
  Page 18, line 3, strike ``or'' and insert ``of''.
  Page 19, strike lines 9 through 16 and insert the following:
                          ``(iii) Training before separation.--
                        Any worker covered by a certification 
                        under subparagraph (A)(ii) shall be 
                        deemed to be an adversely affected 
                        worker for purposes of receiving 
                        services under section 235 and training 
                        under section 236, without regard to 
                        whether the worker has been totally or 
                        partially separated from employment. In 
                        the case of a worker not totally or 
                        partially separated from employment, 
                        the reference in section 236(a)(1)(A) 
                        to `suitable employment' shall be 
                        deemed not to refer to such 
                        employment.''.
  Page 20, line 13, add after the period the following: ``In 
the case of a worker described in paragraph (1)(B)(iii), no 
services described in section 235 or training described in 
section 236 may be initiated after such termination date.''.
  Move section 114 to the beginning of subtitle F of title I, 
redesignate such section as section 161, and redesignate 
succeeding sections accordingly.
  Page 29, line 10, strike ``foreign''.
  Page 34, line 6, insert after ``section)'' the following: ``, 
and the periods specified in section 231(a)(5)(A)''.
  Page 34, beginning on line 9, strike ``delays in 
certification due to administrative reconsideration or judicial 
review,''.
  Page 44, line 7, strike ``101(a)'' and insert ``102''.
  Page 45, line 14, strike ``to enter'' and insert ``in order 
to receive''.
  Page 45, strike lines 19 through 23 and insert the following:
          ``(2) because of the application to any such week in 
        training of the provisions of State law or Federal 
        unemployment insurance law relating to availability for 
        work, active search for work, or refusal to accept 
        work.''.
  Page 68, beginning on line 9, strike ``does not return to the 
employment from which the worker was separated'' and insert 
``is not employed at the firm from which the worker was 
separated''.
  Page 69, strike lines 4 through 6 and insert the following:
                  ``(D) Training and other services.--A worker 
                described in subparagraph (B) shall be eligible 
                to receive training approved under section 236 
                and services under section 235.''.
  Insert after section 141 the following:

SEC. 142. EXTENSION OF COBRA BENEFITS FOR CERTAIN TAA-ELIGIBLE 
                    INDIVIDUALS AND PBGC RECIPIENTS.

  (a) ERISA Amendments.--Section 602(2)(A) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 1162(2)(A)) 
is amended--
          (1) by moving clause (v) to after clause (iv) and 
        before the flush left sentence beginning with ``In the 
        case of a qualified beneficiary'';
          (2) by striking ``In the case of a qualified 
        beneficiary'' and inserting the following:
                          ``(vi) Special rule for disability.--
                        In the case of a qualified 
                        beneficiary''; and
          (3) by redesignating clauses (v) and (vi), as amended 
        by paragraphs (1) and (2), as clauses (viii) and (ix) 
        and by inserting after clause (iv) the following new 
        clauses:
                          ``(v) Special rule for pbgc 
                        recipients.--In the case of a 
                        qualifying event described in section 
                        603(2) with respect to a covered 
                        employee who (as of such qualifying 
                        event) has a nonforeitable right to a 
                        benefit any portion of which is to be 
                        paid by the Pension Benefit Guaranty 
                        Corporation under title IV, 
                        notwithstanding clause (i) or (ii), the 
                        date of the death of the covered 
                        employee, or in the case of the 
                        surviving spouse or dependent children 
                        of the covered employee, 36 months 
                        after the date of the death of the 
                        covered employee.
                          ``(vi) Special rule for taa-eligible 
                        individuals.--In the case of a 
                        qualifying event described in section 
                        603(2) with respect to a covered 
                        employee who is (as of the date that 
                        the period of coverage would, but for 
                        this clause or clause (vii), otherwise 
                        terminate under clause (i) or (ii)) a 
                        TAA-eligible individual (as defined in 
                        section 605(b)(4)(B)), the period of 
                        coverage shall not terminate by reason 
                        of clause (i) or (ii), as the case may 
                        be, before the later of the date 
                        specified in such clause or the date on 
                        which such individual ceases to be such 
                        a TAA-eligible individual.
                          ``(vii) Special rule for certain taa-
                        eligible individuals.--In the case of a 
                        qualifying event described in section 
                        603(2) with respect to a covered 
                        employee who is (as of the date that 
                        the period of coverage would, but for 
                        this clause or clause (vi), otherwise 
                        terminate under clause (i) or (ii)) a 
                        TAA-eligible individual (as defined in 
                        section 605(b)(4)(B)) and who (as of 
                        such qualifying event) has attainted 
                        age 55 or has completed 10 or more 
                        years of service with the employer, 
                        clauses (i) and (ii) shall not 
                        apply.''.
  (b) IRC Amendments.--Clause (i) of section 4980B(f)(2)(B) of 
the Internal Revenue Code of 1986 is amended--
          (1) by striking ``In the case of a qualified 
        beneficiary'' and inserting the following:
                                  ``(VI) Special rule for 
                                disability.--In the case of a 
                                qualified beneficiary'', and
          (2) by redesignating subclauses (V) and (VI), as 
        amended by paragraph (1), as subclauses (VIII) and (IX) 
        and by inserting after clause (IV) the following new 
        subclauses:
                                  ``(V) Special rule for pbgc 
                                recipients.--In the case of a 
                                qualifying event described in 
                                paragraph (3)(B) with respect 
                                to a covered employee who (as 
                                of such qualifying event) has a 
                                nonforeitable right to a 
                                benefit any portion of which is 
                                to be paid by the Pension 
                                Benefit Guaranty Corporation 
                                under title IV of the Employee 
                                Retirement Income Security Act 
                                of 1974, notwithstanding 
                                subclause (I) or (II), the date 
                                of the death of the covered 
                                employee, or in the case of the 
                                surviving spouse or dependent 
                                children of the covered 
                                employee, 36 months after the 
                                date of the death of the 
                                covered employee.
                                  ``(VI) Special rule for taa-
                                eligible individuals.--In the 
                                case of a qualifying event 
                                described in paragraph (3)(B) 
                                with respect to a covered 
                                employee who is (as of the date 
                                that the period of coverage 
                                would, but for this subclause 
                                or subclause (VII), otherwise 
                                terminate under subclause (I) 
                                or (II)) a TAA-eligible 
                                individual (as defined in 
                                paragraph (5)(C)(iv)(II)), the 
                                period of coverage shall not 
                                terminate by reason of 
                                subclause (I) or (II), as the 
                                case may be, before the later 
                                of the date specified in such 
                                subclause or the date on which 
                                such individual ceases to be 
                                such a TAA-eligible individual.
                                  ``(VII) Special rule for 
                                certain taa-eligible 
                                individuals.--In the case of a 
                                qualifying event described in 
                                paragraph (3)(B) with respect 
                                to a covered employee who is 
                                (as of the date that the period 
                                of coverage would, but for this 
                                subclause or subclause (VI), 
                                otherwise terminate under 
                                subclause (I) or (II)) a TAA-
                                eligible individual (as defined 
                                in paragraph (5)(C)(iv)(II)) 
                                and who (as of such qualifying 
                                event) has attainted age 55 or 
                                has completed 10 or more years 
                                of service with the employer, 
                                subclauses (I) and (II) shall 
                                not apply.''.
  (c) PHSA Amendments.--Section 2202(2)(A) of the Public Health 
Service Act (42 U.S.C. 300bb-2(2)(A)) is amended--
          (1) by striking ``In the case of a qualified 
        beneficiary'' and inserting the following:
                          ``(v) Special rule for disability.--
                        In the case of a qualified 
                        beneficiary''; and
          (2) by redesignating clauses (iv) and (v), as amended 
        by paragraph (1), as clauses (vi) and (vii) and by 
        inserting after clause (iii) the following new clauses:
                          ``(iv) Special rule for taa-eligible 
                        individuals.--In the case of a 
                        qualifying event described in section 
                        2203(2) with respect to a covered 
                        employee who is (as of the date that 
                        the period of coverage would, but for 
                        this clause or clause (v), otherwise 
                        terminate under clause (i) or (ii)) a 
                        TAA-eligible individual (as defined in 
                        section 2205(b)(4)(B)), the period of 
                        coverage shall not terminate by reason 
                        of clause (i) or (ii), as the case may 
                        be, before the later of the date 
                        specified in such clause or the date on 
                        which such individual ceases to be such 
                        a TAA-eligible individual.
                          ``(v) Special rule for certain taa-
                        eligible individuals.--In the case of a 
                        qualifying event described in section 
                        2203(2) with respect to a covered 
                        employee who is (as of the date that 
                        the period of coverage would, but for 
                        this clause or clause (iv), otherwise 
                        terminate under clause (i) or (ii)) a 
                        TAA-eligible individual (as defined in 
                        section 2205(b)(4)(B)) and who (as of 
                        such qualifying event) has attainted 
                        age 55 or has completed 10 or more 
                        years of service with the employer, 
                        clauses (i) and (ii) shall not 
                        apply.''.
  (d) Effective Date.--The amendments made by this section 
shall apply to periods of coverage which would (without regard 
to the amendments made by this section) end on or after January 
1, 2008.
  Insert after title II the following and redesignate 
accordingly:

           TITLE III--TRADE ADJUSTMENT ASSISTANCE FOR FARMERS

SEC. 301. ELIGIBILITY OF CERTAIN OTHER PRODUCERS.

  Section 292 of the Trade Act of 1974 (19 U.S.C. 2401a) is 
amended--
          (1) in subsection (a), by inserting ``and on the 
        Website of the Department of Agriculture'' after 
        ``Federal Register''; and
          (2) by adding at the end the following:
  ``(f) Eligibility of Certain Other Producers.--An 
agricultural commodity producer or group of producers that 
resides outside of the State or region identified in a petition 
filed under subsection (a) may file a request to become a party 
to that petition not later than 30 days after the date notice 
is published in the Federal Register and on the Website of the 
Department of Agriculture with respect to that petition.''.
  Page 76, after line 18, insert the following (and redesignate 
subsequent subsections accordingly):
  ``(c) Collection of Data From States.--The Secretary is 
authorized to collect such data from the States as is necessary 
to carry out this section.''.
  Add at the end the following:

        TITLE VI--WORKER ADJUSTMENT AND RETRAINING NOTIFICATION

SEC. 601. SHORT TITLE.

  This title may be cited as the ``Early Warning and Health 
Care for Workers Affected by Globalization Act''.

SEC. 602. AMENDMENTS TO THE WARN ACT.

  (a) Definitions.--
          (1) Employer, plant closing, and mass layoff.--
        Paragraphs (1) through (3) of section 2(a) of the 
        Worker Adjustment and Retraining Notification Act (29 
        U.S.C. 2101(a)(1)-(3)) are amended to read as follows:
          ``(1) the term `employer' means any business 
        enterprise that employs 100 or more employees;
          ``(2) the term `plant closing' means the permanent or 
        temporary shutdown of a single site of employment, or 
        of one or more facilities or operating units within a 
        single site of employment, which results in an 
        employment loss at such site, during any 30-day period, 
        for 50 or more employees;
          ``(3) the term `mass layoff' means a reduction in 
        force at a single site of employment which results in 
        an employment loss at such site, during any 30-day 
        period, for 50 or more employees.''.
          (2) Secretary of labor.--
                  (A) Definition.--Paragraph (8) of such 
                section is amended to read as follows:
          ``(8) the term `Secretary' means the Secretary of 
        Labor or a representative of the Secretary of Labor.''.
                  (B) Regulations.--Section 8(a) of such Act 
                (29 U.S.C. 2107(a)) is amended by striking ``of 
                Labor''.
          (3) Conforming amendments.--
                  (A) Notice.--Section 3(d) of such Act (29 
                U.S.C. 2102(d)) is amended by striking out ``, 
                each of which is less than the minimum number 
                of employees specified in section 2(a)(2) or 
                (3) but which in the aggregate exceed that 
                minimum number,'' and inserting ``which in the 
                aggregate exceed the minimum number of 
                employees specified in section 2(a)(2) or 
                (3)''.
                  (B) Definitions.--Section 2(b)(1) of such Act 
                (29 U.S.C. 2101(b)(1)) is amended by striking 
                ``(other than a part-time employee)''.
  (b) Notice.--
          (1) Notice period.--
                  (A) In general.--Section 3 of the Worker 
                Adjustment and Retraining Notification Act (29 
                U.S.C. 2102) is amended by striking ``60-day 
                period'' and inserting ``90-day period'' each 
                place it appears.
                  (B) Conforming amendment.--Section 5(a)(1) of 
                such Act (29 U.S.C. 2104(a)(1)) is amended in 
                the matter following subparagraph (B), by 
                striking ``60 days'' and inserting ``90 days''.
          (2) Recipients.--Section 3(a) of such Act (29 U.S.C. 
        2102(a)) is amended--
                  (A) in paragraph (1), by striking ``or, if 
                there is no such representative at that time, 
                to each affected employee; and'' and inserting 
                ``and to each affected employee;''; and
                  (B) by redesignating paragraph (2) as 
                paragraph (3) and inserting after paragraph (1) 
                the following:
          ``(2) to the Secretary; and''.
          (3) Information regarding benefits and services 
        available to workers and dol notice to congress.--
        Section 3 of such Act (29 U.S.C. 2102) is further 
        amended by adding at the end the following:
  ``(e) Information Regarding Benefits and Services Available 
to Employees.--Concurrent with or immediately after providing 
the notice required under subsection (a)(1), an employer shall 
provide affected employees with information regarding the 
benefits and services available to such employees, as described 
in the guide compiled by the Secretary under section 12.
  ``(f) DOL Notice to Congress.--As soon as practicable and not 
later than 15 days after receiving notification under 
subsection (a)(2), the Secretary of Labor shall notify the 
appropriate Senators and Members of the House of 
Representatives who represent the area or areas where the plant 
closing or mass layoff is to occur.''.
  (c) Enforcement.--
          (1) Amount.--Section 5(a)(1) of the Worker Adjustment 
        and Retraining Notification Act (29 U.S.C. 2104(a)(1)) 
        is amended--
                  (A) in subparagraph (A)--
                          (i) by striking ``back pay for each 
                        day of violation'' and inserting ``two 
                        days' pay multiplied by the number of 
                        calendar days short of 90 that the 
                        employer provided notice before such 
                        closing or layoff''
                          (ii) in clause (ii), by striking 
                        ``and'' at the end thereof;
                  (B) by redesignating subparagraph (B) as 
                subparagraph (C);
                  (C) by inserting after subparagraph (A) the 
                following:
          ``(B) interest on the amount described in 
        subparagraph (A) calculated at the prevailing rate; 
        and''; and
                  (D) by striking the matter following 
                subparagraph (C) (as so redesignated).
          (2) Exemption.--Section 5(a)(4) of such Act (29 
        U.S.C. 2104(a)(4)) is amended by striking ``reduce the 
        amount of the liability or penalty provided for in this 
        section'' and inserting ``reduce the amount of the 
        liability under subparagraph (C) of paragraph (1) and 
        reduce the amount of the penalty provided for in 
        paragraph (3)''.
          (3) Administrative complaint.--Section 5(a)(5) of 
        such Act (29 U.S.C. 2104(a)(5)) is amended--
                  (A) by striking ``may sue'' and inserting 
                ``may,'';
                  (B) by inserting after ``both,'' the 
                following: ``(A) file a complaint with the 
                Secretary alleging a violation of section 3, or 
                (B) bring suit''; and
                  (C) by adding at the end thereof the 
                following new sentence: ``A person seeking to 
                enforce such liability may use one or both of 
                the enforcement mechanisms described in 
                subparagraphs (A) and (B).''.
          (4) Action by the secretary.--Section 5 of such Act 
        (29 U.S.C. 2104) is amended--
                  (A) by redesignating subsection (b) as 
                subsection (d); and
                  (B) by inserting after subsection (a) the 
                following new subsections:
  ``(b) Action by the Secretary.--
          ``(1) Administrative action.--The Secretary shall 
        receive, investigate, and attempt to resolve complaints 
        of violations of section 3 by an employer in the same 
        manner that the Secretary receives, investigates, and 
        attempts to resolve complaints of violations of 
        sections 6 and 7 of the Fair Labor Standards Act of 
        1938 (29 U.S.C. 206 and 207).
          ``(2) Subpoena powers.--For the purposes of any 
        investigation provided for in this section, the 
        Secretary shall have the subpoena authority provided 
        for under section 9 of the Fair Labor Standards Act of 
        1938 (29 U.S.C. 209).
          ``(3) Sums recovered.--Any sums recovered by the 
        Secretary on behalf of an employee under subparagraphs 
        (A), (B), and (D) of section 5(a)(1) shall be held in a 
        special deposit account and shall be paid, on order of 
        the Secretary, directly to each employee affected. Any 
        such sums not paid to an employee because of inability 
        to do so within a period of 3 years, and any sums 
        recovered by the Secretary under subparagraph (C) of 
        section 5(a)(1), shall be credited as an offsetting 
        collection to the appropriations account of the 
        Secretary of Labor for expenses for the administration 
        of this Act and shall remain available to the Secretary 
        until expended.
  ``(c) Limitations.--
          ``(1) Limitations period.--An action may be brought 
        under this section not later than 2 years after the 
        date of the last event constituting the alleged 
        violation for which the action is brought.
          ``(2) Commencement.--In determining when an action is 
        commenced under this section for the purposes of 
        paragraph (1), it shall be considered to be commenced 
        on the date on which the complaint is filed.''.
  (d) Posting of Notices; Penalties.--Section 11 of the Worker 
Adjustment and Retraining Notification Act (29 U.S.C. 2101 
note) is amended to read as follows:

``SEC. 11. POSTING OF NOTICES; PENALTIES.

  ``(a) Posting of Notices.--Each employer shall post and keep 
posted in conspicuous places upon its premises where notices to 
employees are customarily posted a notice to be prepared or 
approved by the Secretary setting forth excerpts from, or 
summaries of, the pertinent provisions of this chapter and 
information pertinent to the filing of a complaint.
  ``(b) Penalties.--A willful violation of this section shall 
be punishable by a fine of not more than $500 for each separate 
offense.''.
  (e) Non-Waiver of Rights and Remedies; Information Regarding 
Benefits and Services Available to Employees.--Such Act is 
further amended by adding at the end the following:

``SEC. 12. RIGHTS AND REMEDIES NOT SUBJECT TO WAIVER.

  ``(a) In General.--The rights and remedies provided under 
this Act (including the right to maintain a civil action) may 
not be waived, deferred, or lost pursuant to any agreement or 
settlement other than an agreement or settlement described in 
subsection (b).
  ``(b) Agreement or Settlement.--An agreement or settlement 
referred to in subsection (a) is an agreement or settlement 
negotiated by the Secretary, an attorney general of any State, 
or a private attorney on behalf of affected employees.

``SEC. 13. INFORMATION REGARDING BENEFITS AND SERVICES AVAILABLE TO 
                    WORKERS.

  ``The Secretary of Labor shall maintain a guide of benefits 
and services which may be available to affected employees, 
including unemployment compensation, trade adjustment 
assistance, COBRA benefits, and early access to training and 
other services, including counseling services, available under 
the Workforce Investment Act of 1998. Such guide shall be 
available on the Internet website of the Department of Labor 
and shall include a description of the benefits and services, 
the eligibility requirements, and the means of obtaining such 
benefits and services. Upon receiving notice from an employer 
under section 3(a)(2), the Secretary shall immediately transmit 
such guide to such employer.''.
  (f) Notice Excused Where Caused by Terrorist Attack.--Section 
3(b)(2) of the Worker Adjustment and Retraining Notification 
Act (29 U.S.C. 2102(b)(2)) is amended by adding at the end the 
following new subparagraph:
  ``(C) No notice under this Act shall be required if the plant 
closing or mass layoff is due directly or indirectly to a 
terrorist attack on the United States.''.

SEC. 603. EFFECTIVE DATE.

  Except as otherwise provided in this Act, the provisions of 
this Act, and the amendments made by this Act, shall take 
effect on the date of the enactment of this Act.

             PART B: TEXT OF AMENDMENT TO BE MADE IN ORDER

 1. An Amendment To Be Offered by Representative McCrery of Louisiana, 
               or His Designee, Debatable for 60 minutes

  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 ``Helping 
American Workers Adjust to Globalization and Win Act''.
  (b) Table of Contents.--The table of contents for this Act is 
as follows:
Sec. 1. Short title; table of contents.
                TITLE I--TRADE ADJUSTMENT ASSISTANCE FOR
                                WORKERS

                Subtitle A--Petitions and Determinations

Sec. 101. Petitions.
Sec. 102. Group eligibility requirements.
Sec. 103. Determinations by Secretary of Labor.
Sec. 104. Benefit information to workers.
Sec. 105. Administrative reconsideration of determinations by
         Secretary of Labor.
                      Subtitle B--Program Benefits

                Chapter 1--Trade Readjustment Allowances

Sec. 111. Qualifying requirements for workers.
Sec. 112. Weekly amounts.
Sec. 113. Limitations on trade readjustment allowances.
           Chapter 2--Training, Other Reemployment Services, 
                             and Allowances

Sec. 121. Reemployment services.
Sec. 122. Training.
Sec. 123. Job search allowances.
Sec. 124. Relocation allowances.
                     Subtitle C--General Provisions

Sec. 131. Agreements with States.
Sec. 132. Authorization of appropriations; incentive payments to 
                            States.
Sec. 133. Phase-out of demonstration project for alternative trade
         adjustment assistance for older workers.
Sec. 134. Wage supplement program.
Sec. 135. Definitions.
Sec. 136. Capacity-building grants to enhance training for workers.
                       Subtitle D--Effective Date

Sec. 141. Effective date.
              TITLE II--OTHER TRADE ADJUSTMENT ASSISTANCE
                    PROGRAMS AND RELATED PROVISIONS

Sec. 201. Technical assistance for firms.
Sec. 202. Extension of trade adjustment assistance for firms.
Sec. 203. Extension of trade adjustment assistance for farmers.
Sec. 204. Judicial review.
Sec. 205. Termination.
                  TITLE III--MISCELLANEOUS PROVISIONS

Sec. 301. Credit reduction for failures relating to co-enrollment of
         participants and program performance reports.
Sec. 302. TAA wage supplement participants eligibility for credit for
         health insurance costs.
Sec. 303. Special allocation under new markets tax credit in
         connection with trade adjustment assistance.
Sec. 304. Expedited reemployment demonstration projects.
Sec. 305. Increase in percentage of TAA and PBGC health insurance
         tax credit.
Sec. 306. Collection of unemployment compensation debts.
Sec. 307. Offsets.
               TITLE IV--WORKFORCE INVESTMENT IMPROVEMENT

Sec. 401. Short title.
Sec. 402. References.
     Subtitle A--Amendments to Title I of the Workforce Investment 
                              Act of 1998

Sec. 411. Definitions.
Sec. 412. Purpose.
Sec. 413. State workforce investment boards.
Sec. 414. State plan.
Sec. 415. Local workforce investment areas.
Sec. 416. Local workforce investment boards.
Sec. 417. Local plan.
Sec. 418. Establishment of one-stop delivery systems.
Sec. 419. Eligible providers of training services.
Sec. 420. Eligible providers of youth activities.
Sec. 421. Youth activities.
Sec. 422. Comprehensive programs for adults.
Sec. 423. Performance accountability system.
Sec. 424. Authorization of appropriations.
Sec. 425. Job Corps.
Sec. 426. Native American programs.
Sec. 427. Migrant and seasonal farmworker programs.
Sec. 428. Veterans' workforce investment programs.
Sec. 429. Youth challenge grants.
Sec. 430. Technical assistance.
Sec. 431. Demonstration, pilot, multiservice, research and
         multi-State projects.
Sec. 432. Community-based job training.
Sec. 433. Evaluations.
Sec. 434. National dislocated worker grants.
Sec. 435. Authorization of appropriations for national activities.
Sec. 436. Requirements and restrictions.
Sec. 437. Nondiscrimination.
Sec. 438. Administrative provisions.
Sec. 439. State legislative authority.
Sec. 440. Workforce innovation in regional economic development.
Sec. 441. General program requirements.
    Subtitle B--Adult Education, Basic Skills, and Family Literacy 
                               Education

Sec. 451. Table of contents.
Sec. 452. Amendment.
            Subtitle C--Amendments to the Wagner-Peyser Act

Sec. 461. Amendments to the Wagner-Peyser Act.
        Subtitle D--Amendments to the Rehabilitation Act of 1973

Sec. 471. Findings.
Sec. 472. Rehabilitation Services Administration.
Sec. 473. Director.
Sec. 474. Definitions.
Sec. 475. State plan.
Sec. 476. Scope of services.
Sec. 477. Standards and indicators.
Sec. 478. Reservation for expanded transition services.
Sec. 479. Client assistance program.
Sec. 480. Protection and advocacy of individual rights.
Sec. 481. Chairperson.
Sec. 482. Authorizations of appropriations.
Sec. 483. Conforming amendment.
Sec. 484. Helen Keller National Center Act.
               Subtitle E--Transition and Effective Date

Sec. 491. Transition provisions.
Sec. 492. Effective date.

            TITLE I--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS

                Subtitle A--Petitions and Determinations

SEC. 101. PETITIONS.

  Section 221(a) of the Trade Act of 1974 (19 U.S.C. 2271(a)) 
is amended--
          (1) in paragraph (1), by striking ``simultaneously 
        with the Secretary and with the Governor of the State 
        in which such workers' firm or subdivision is located'' 
        and inserting ``with the Secretary'';
          (2) by redesignating paragraphs (2) and (3) as 
        paragraphs (3) and (4), respectively;
          (3) by inserting after paragraph (1) the following 
        new paragraph:
  ``(2) Upon receipt of a petition filed under paragraph (1), 
the Secretary shall promptly notify the Governor of the State 
in which such workers' firm or subdivision is located of the 
filing of the petition and its contents.'';
          (4) in paragraph (3) (as redesignated by paragraph 
        (2) of this section), by striking ``a petition filed 
        under paragraph (1)'' and inserting ``a notice under 
        paragraph (2)''; and
          (5) in paragraph (4) (as redesignated by paragraph 
        (2) of this section)--
                  (A) by striking ``the petition'' and 
                inserting ``a petition filed under paragraph 
                (1)''; and
                  (B) by inserting ``and on the Website of the 
                Department of Labor'' after ``in the Federal 
                Register''.

SEC. 102. GROUP ELIGIBILITY REQUIREMENTS.

  (a) In General.--Subsection (a)(2)(B)(i) of section 222 of 
the Trade Act of 1974 (19 U.S.C. 2272) is amended by inserting 
at the end before the semicolon the following: ``that 
contributed importantly to such workers' separation or threat 
of separation''.
  (b) Adversely Affected Secondary Workers.--Subsection (b) of 
such section is amended--
          (1) in paragraph (2), by striking ``and'' at the end;
          (2) by redesignating paragraph (3) as paragraph (4);
          (3) by inserting after paragraph (2) the following 
        new paragraph:
          ``(3) the sales or production, or both, of such firm 
        or subdivision have decreased absolutely; and''; and
          (4) in subparagraph (A) of paragraph (4) (as 
        redesignated by paragraph (2) of this subsection), by 
        inserting at the end before the semicolon the 
        following: ``and contributed importantly to the 
        workers' separation or threat of separation determined 
        under paragraph (1)''.
  (c) Definitions.--Subsection (c) of such section is amended--
          (1) in paragraph (3), by striking ``, if the 
        certification of eligibility under subsection (a) is 
        based on an increase in imports from, or a shift in 
        production to, Canada or Mexico''; and
          (2) by adding at the end the following new 
        paragraphs:
          ``(5) The term `article' means--
                  ``(A) a tangible product subject to duty 
                under the Harmonized Tariff Schedule of the 
                United States which is not incidental to the 
                provision of a service; or
                  ``(B) an intangible product, such as a 
                digital product (including computer programs, 
                text, video, image and sound recordings, and 
                similar products), that would be subject to 
                duty under the Harmonized Tariff Schedule of 
                the United States if the intangible product 
                were embodied in a physical medium and which is 
                not incidental to the provision of a service.
          ``(6) The term `worker' means--
                  ``(A) with respect to a firm described in 
                subsection (a)--
                          ``(i) an individual directly employed 
                        by the firm that produces an article 
                        that is the basis for a determination 
                        under subsection (a) and who performs 
                        tasks relating to the production of the 
                        article; or
                          ``(ii) an individual who is under the 
                        operational control of the firm that 
                        produces an article that is the basis 
                        for a determination under subsection 
                        (a) pursuant to a contract or leasing 
                        arrangement and who performs tasks 
                        relating to the production of the 
                        article;
                  ``(B) with respect to a firm that is a 
                supplier described in subsection (b)--
                          ``(i) an individual directly employed 
                        by the firm that is a supplier and who 
                        performs tasks relating to the 
                        production of component parts for an 
                        article that is the basis for a 
                        determination under subsection (a); or
                          ``(ii) an individual who is under the 
                        operational control of the firm that is 
                        a supplier pursuant to a contract or 
                        leasing arrangement and who performs 
                        tasks relating to the production of 
                        component parts for an article that is 
                        the basis for a determination under 
                        subsection (a); and
                  ``(C) with respect to a firm that is a 
                downstream producer described in subsection 
                (b)--
                          ``(i) an individual directly employed 
                        by the firm that is a downstream 
                        producer and who perform tasks relating 
                        to the provision of additional, value-
                        added production processes for an 
                        article that is the basis for a 
                        determination under subsection (a); or
                          ``(ii) an individual who is under the 
                        operational control of the firm that is 
                        a downstream producer pursuant to a 
                        contract or leasing arrangement and who 
                        performs tasks relating to the 
                        provision of additional, value-added 
                        production processes for an article 
                        that is the basis for a determination 
                        under subsection (a).''.

SEC. 103. DETERMINATIONS BY SECRETARY OF LABOR.

  (a) Workers Covered by Certification.--Subsection (b) of 
section 223 of the Trade Act of 1974 (19 U.S.C. 2273) is 
amended--
          (1) in the matter preceding paragraph (1), by 
        striking ``under this section'' and inserting ``under 
        subsection (a) or (d) of this section''; and
          (2) in paragraph (2), to read as follows:
          ``(2) after the earliest of--
                  ``(A) the date that is two years after the 
                date on which certification is granted under 
                subsection (a);
                  ``(B) the date that is two years after the 
                date of the earliest determination, if any, 
                denying certification under subsection (a); or
                  ``(C) the termination date, if any, 
                determined under subsection (e).''.
  (b) Publication of Determination.--Subsection (c) of such 
section is amended--
          (1) by striking ``his determination'' and inserting 
        ``a determination'';
          (2) by inserting ``and on the Website of the 
        Department of Labor'' after ``in the Federal 
        Register''; and
          (3) by striking ``his reasons'' and inserting ``the 
        Secretary's reasons''.
  (c) Amendment to Certification.--Such section is further 
amended--
          (1) by redesignating subsection (d) as subsection 
        (e); and
          (2) by inserting after subsection (c) the following 
        new subsection:
  ``(d) Whenever the Secretary determines, with respect to any 
certification of eligibility of the workers of a firm or 
subdivision of the firm, and subject to such regulations as the 
Secretary may prescribe, that good cause exists to amend such 
certification, the Secretary shall amend such certification and 
promptly publish notice of such amendment in the Federal 
Register and on the Website of the Department of Labor together 
with the reasons for making such determination.''.
  (d) Termination of Certification.--Subsection (e) of such 
section (as redesignated by subsection (c)(1) of this section) 
is amended--
          (1) by striking ``he shall'' and inserting ``the 
        Secretary shall'';
          (2) by inserting ``and on the Website of the 
        Department of Labor'' after ``in the Federal 
        Register''; and
          (3) by striking ``his reasons'' and inserting ``the 
        Secretary's reasons''.

SEC. 104. BENEFIT INFORMATION TO WORKERS.

  Section 225(a) of the Trade Act of 1974 (19 U.S.C. 2275(a)) 
is amended in the fourth sentence by striking ``the State Board 
for Vocational Education or equivalent agency and other public 
or private agencies, institutions, and employers, as 
appropriate,'' and inserting ``the appropriate State workforce 
investment board (established under section 111 of the 
Workforce Investment Act of 1998 (29 U.S.C. 2821)) and State 
workforce agency responsible for the administration of the 
State workforce investment program funded under title I of the 
Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.)''.

SEC. 105. ADMINISTRATIVE RECONSIDERATION OF DETERMINATIONS BY SECRETARY 
                    OF LABOR.

  (a) In General.--Subchapter A of chapter 2 of title II of the 
Trade Act of 1974 (19 U.S.C. 2271 et seq.) is amended by adding 
at the end the following new section:

``SEC. 226. ADMINISTRATIVE RECONSIDERATION OF DETERMINATIONS BY 
                    SECRETARY OF LABOR.

  ``(a) Administrative Reconsideration.--
          ``(1) In general.--A worker, group of workers, 
        certified or recognized union or other duly authorized 
        representative of such worker or group of workers, or 
        any of the individuals or entities described in section 
        221(a)(1)(C), aggrieved (or on behalf of such workers 
        aggrieved) by a determination of the Secretary of Labor 
        under section 223 denying a certification of 
        eligibility, may file a request for administrative 
        reconsideration with the Secretary not later than 60 
        days after the date on which notice of the 
        determination is published under section 223.
          ``(2) Failure to make timely request.-- The failure 
        to file a request for administrative reconsideration of 
        a determination denying a certification of eligibility 
        under section 223 within the 60-day period described in 
        paragraph (1) shall be deemed to be a failure to 
        exhaust administrative remedies and such determination 
        shall not be subject to judicial review under section 
        284.
  ``(b) Notice, Review, and Final Determination.--
          ``(1) Notice.--If a request for administrative 
        reconsideration of a determination of the Secretary is 
        filed in accordance with the provisions of subsection 
        (a), the Secretary shall promptly publish notice 
        thereof in the Federal Register and on the Website of 
        the Department of Labor.
          ``(2) Review of determination.--The Secretary shall 
        initiate a review of the determination of the Secretary 
        upon filing of the request for administrative 
        reconsideration under subsection (a) and shall include 
        an opportunity for interested persons to submit 
        additional information.
          ``(3) Final determination.--The Secretary shall issue 
        a final determination on the request for administrative 
        reconsideration not later than 60 days after the date 
        on which the Secretary publishes notice of the request 
        for reconsideration pursuant to paragraph (1). Upon 
        reaching a determination on a reconsideration, the 
        Secretary shall promptly publish a summary of the 
        determination in the Federal Register and on the 
        Website of the Department of Labor, together with the 
        reasons for making such determination. The requirements 
        relating to judicial review under section 284 shall 
        apply to any determination made by the Secretary under 
        this subsection.''.
  (b) Clerical Amendment.--The table of contents in section 1 
of the Trade Act of 1974 is amended by inserting after the item 
relating to section 225 the following:

``Sec. 226. Administrative reconsideration of determinations by 
          Secretary of Labor.''.

                      Subtitle B--Program Benefits

                CHAPTER 1--TRADE READJUSTMENT ALLOWANCES


SEC. 111. QUALIFYING REQUIREMENTS FOR WORKERS.

  (a) Basic Trade Readjustment Allowance.--Subsection (a) of 
section 231 of the Trade Act of 1974 (19 U.S.C. 2291) is 
amended--
          (1) in the matter preceding paragraph (1), by 
        striking ``60 days'' and inserting ``40 days'';
          (2) in paragraph (1), by striking ``occurred--'' and 
        all that follows and inserting ``occurred during the 
        period described in section 223(b).''; and
          (3) by striking paragraphs (4) and (5).
  (b) Payment of Additional Trade Readjustment Allowance.--Such 
section is further amended--
          (1) by redesignating subsections (b) and (c) as 
        subsections (c) and (d), respectively; and
          (2) by inserting after subsection (a) the following 
        new subsection:
  ``(b) In addition to the payment of a trade readjustment 
allowance under subsection (a), payment of an additional trade 
readjustment allowance shall be made to an adversely affected 
worker who is covered by a certification under subchapter A and 
who--
          ``(1) files an application for such allowance for any 
        week of unemployment which begins after the worker has 
        received the maximum amount of trade readjustment 
        allowances payable under subsection (a);
          ``(2) meets the conditions described in paragraphs 
        (1) through (3) of subsection (a); and
          ``(3) is either--
                  ``(A) totally unemployed and is enrolled in a 
                full-time training program approved by the 
                Secretary under section 236(a); or
                  ``(B) partially unemployed and is enrolled in 
                a full-time or part-time training program 
                approved by the Secretary under section 
                236(a).''.
  (c) Withholding of Trade Readjustment Allowance Pending 
Beginning or Resumption of Participation in Training Program; 
Period of Applicability.--Subsection (c) of such section (as 
redesignated by subsection (b)(1) of this section) is amended 
to read as follows:
  ``(c) If the Secretary determines that--
          ``(1) the adversely affected worker--
                  ``(A) has failed to begin participation in 
                the training program the enrollment in which 
                meets the requirement of subsection (b)(3), or
                  ``(B) has ceased to participate in such 
                training program before completing such 
                training program, and
          ``(2) there is no justifiable cause for such failure 
        or cessation,
no trade readjustment allowance may be paid to the adversely 
affected worker under this part for the week in which such 
failure, cessation, or revocation occurred, or any succeeding 
week, until the adversely affected worker begins or resumes 
participation in a training program approved under section 
236(a).''.
  (d) Waivers of Training Requirements.--Subsection (d) of such 
section (as redesignated by subsection (b)(1) of this section) 
is hereby repealed.

SEC. 112. WEEKLY AMOUNTS.

  (a) In General.--Subsection (a) of section 232 of the Trade 
Act of 1974 (19 U.S.C. 2292) is amended--
          (1) by striking ``(a)'' and inserting ``(a)(1)'';
          (2) by inserting ``paragraph (2) and'' after 
        ``Subject to'';
          (3) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively; and
          (4) by adding at the end the following new paragraph:
  ``(2)(A) Notwithstanding section 231(a)(3)(B), if an 
adversely affected worker who is participating in training 
qualifies for unemployment insurance under State law, based in 
whole or in part upon part-time or short-term employment 
following approval of the worker's initial trade readjustment 
allowance application under section 231(a), then for any week 
for which unemployment insurance is payable and for which the 
worker would otherwise be entitled to a trade readjustment 
allowance based upon the certification under section 223, the 
worker shall be paid a trade readjustment allowance in the 
amount described in subparagraph (B).
  ``(B) The trade readjustment allowance payable under 
subparagraph (A) shall be equal to the weekly benefit amount of 
the unemployment insurance upon which the worker's trade 
readjustment allowance was initially determined under paragraph 
(1), reduced by--
          ``(i) the amount of the unemployment insurance 
        benefit payable to such worker for that week of 
        unemployment for which a trade readjustment allowance 
        is payable under subparagraph (A) of this paragraph; 
        and
          ``(ii) the amounts described in subparagraphs (A) and 
        (B) of paragraph (1).''.
  (b) Adversely Affected Workers Who Are Undergoing Training.--
Subsection (b) of such section is amended--
          (1) by inserting ``under section 231(b)'' after ``who 
        is entitled to trade readjustment allowances''; and
          (2) by striking ``he is undergoing any such'' and 
        inserting ``such worker is undergoing''.

SEC. 113. LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES.

  Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is 
amended--
          (1) in subsection (a)--
                  (A) in paragraph (1)--
                          (i) by striking ``The maximum 
                        amount'' and inserting ``Except as 
                        provided in paragraph (3), the maximum 
                        amount''; and
                          (ii) by striking ``52'' and inserting 
                        ``39''; and
                  (B) in paragraph (3), by striking ``52'' each 
                place it appears and inserting ``65'';
          (2) by striking subsection (b);
          (3) by redesignating subsections (c) through (g) as 
        subsections (b) through (f), respectively; and
          (4) in subsection (f) (as redesignated by paragraph 
        (3) of this section), by striking ``section 
        236(a)(5)(D)'' and inserting ``section 236''.

    CHAPTER 2--TRAINING, OTHER REEMPLOYMENT SERVICES, AND ALLOWANCES


SEC. 121. REEMPLOYMENT SERVICES.

  (a) In General.--Section 235 of the Trade Act of 1974 (19 
U.S.C. 2295) is amended--
          (1) in the heading, by striking ``EMPLOYMENT'' and 
        inserting ``REEMPLOYMENT'';
          (2) by striking ``The Secretary'' the first place it 
        appears and inserting ``(a) The Secretary'';
          (3) by striking ``counseling, testing, and placement 
        services, and supportive and other services'' and 
        inserting ``career counseling, testing and assessments, 
        and job placement services, and supportive and other 
        services''; and
          (4) by adding at the end the following new 
        subsection:
  ``(b) In order to facilitate the provision of services 
described in subsection (a), the Secretary shall ensure the 
effective implementation of the requirements of section 239(e) 
relating to the co-enrollment of adversely affected workers in 
the dislocated worker program authorized under chapter 5 of 
subtitle B of title I of the Workforce Investment Act of 1998 
(29 U.S.C. 2861 et seq.).''.
  (b) Clerical Amendment.--The table of contents in section 1 
of the Trade Act of 1974 is amended by striking the heading 
relating to part II of subchapter B of chapter 2 of title II of 
the Trade Act of 1974 and the item relating to section 235 of 
such Act and inserting the following:

    ``Part II--Training, Other Reemployment Services, and Allowances

``Sec. 235. Reemployment services.''.

SEC. 122. TRAINING.

  (a) In General.--Section 236 of the Trade Act of 1974 (19 
U.S.C. 2296) is amended to read as follows:

``SEC. 236. TRAINING.

  ``(a) Approval of Training.--
          ``(1) In general.--If the Secretary determines that 
        an adversely affected worker, including an adversely 
        affected worker who has obtained reemployment 
        subsequent to separation from the adversely affected 
        employment, or an adversely affected incumbent worker, 
        meets the criteria described in paragraph (2), and 
        otherwise meets the requirements described under this 
        section, the Secretary shall approve the training 
        program requested by the worker. Upon such approval, 
        the worker shall be entitled to have payment of the 
        costs of such training (subject to the limitations 
        imposed by this section) paid on the worker's behalf by 
        the Secretary directly or through a voucher system. The 
        costs of such training shall include the costs of 
        tuition, books, required tools, and fees related to 
        education, licensing, or certification.
          ``(2) Criteria for approval of training program.--For 
        purposes of paragraph (1), training for an adversely 
        affected worker or an adversely affected incumbent 
        worker, shall be approved if the Secretary determines 
        that--
                  ``(A) the worker needs additional marketable 
                skills to obtain or retain employment 
                comparable to the worker's adversely affected 
                employment;
                  ``(B) there is a reasonable expectation of 
                such employment following the completion of the 
                training; and
                  ``(C) the worker is qualified to undertake 
                and complete the training sought.
          ``(3) Enrollment deadline.--
                  ``(A) In general.--In order to receive 
                assistance under this section, a worker shall 
                enroll in a training program approved under 
                paragraph (1) not later than the later of--
                          ``(i) the last day of the 39th week 
                        after the worker's most recent 
                        separation from adversely affected 
                        employment which meets the requirements 
                        of paragraphs (1) and (2) of section 
                        231(a); or
                          ``(ii) the last day of the 13th week 
                        after the week in which the Secretary 
                        issues a certification under subchapter 
                        A covering such worker.
                  ``(B) Extension for justifiable cause.--The 
                Secretary may grant an extension of the 
                enrollment period described in subparagraph (A) 
                for a worker if the Secretary determines that 
                there is justifiable cause for such an 
                extension.
  ``(b) Funding for Training.--
          ``(1) Annual limit on aggregate payments under 
        program.--
                  ``(A) In general.--The total amount of 
                payments that may be made under subsection 
                (a)(1) for any fiscal year shall not exceed 
                $220,000,000.
                  ``(B) Apportionment among states.--The 
                Secretary shall establish a method for 
                apportioning among States the funds that are 
                available for training under this chapter in 
                any fiscal year. Such method may include the 
                use of formula allotments and reallotments, and 
                the establishment of a reserve that is used to 
                assist in apportioning funds to those States in 
                need of additional funding during the fiscal 
                year.
          ``(2) Limitations applicable to workers.--
                  ``(A) Duration.--Subject to subparagraph (C), 
                the costs of a training program approved under 
                subsection (a)(1) for an adversely affected 
                worker or an adversely affected incumbent 
                worker shall be paid under this section for a 
                period not to exceed four years from the date 
                the worker first enrolled in the training 
                program. A worker may participate in such 
                training program during such period on a full-
                time or part-time basis. During the period of 
                participation the worker shall make adequate 
                yearly progress, as determined by the 
                Secretary, toward the attainment of a license, 
                certificate, or degree pursuant to such 
                training program in order to remain eligible 
                for assistance under this section.
                  ``(B) Amount.--Subject to subparagraph (C), 
                the payments for a training program under 
                subsection (a)(1) for a worker may not exceed 
                $4,000 for any one-year period, or a total of 
                $8,000 over the maximum four-year period 
                described in subparagraph (A).
                  ``(C) Exceptions.--
                          ``(i) Literacy training and 
                        prerequisites.--If the Secretary 
                        determines that an adversely affected 
                        worker or an adversely affected 
                        incumbent worker needs literacy 
                        training, English as a second language 
                        instruction, remedial education, 
                        educational assistance to obtain a high 
                        school diploma or General Equivalency 
                        Degree, or prerequisites in order to 
                        participate in a training program for 
                        occupations in demand, the Secretary 
                        shall approve the provision of such 
                        activities and provide up to $1,000 in 
                        payments for such activities. Such 
                        payments shall not be included for 
                        purposes of applying the limits on 
                        payments described in subparagraph (B).
                          ``(ii) On-the-job training.--The 
                        provisions of subparagraphs (A) and (B) 
                        shall not be applicable to on-the-job 
                        training programs, except as provided 
                        in subsection (f)(2).
          ``(3) Duplicative payments prohibited.--No payment 
        may be made under subsection (a)(1) of the costs of 
        training an adversely affected worker or an adversely 
        affected incumbent worker if such costs are payable or 
        have already been paid under any other provision of 
        Federal law.
          ``(4) Report.--
                  ``(A) In general.--Not later than May 31 and 
                November 30 of each year, the Secretary shall 
                submit to the Committee on Finance of the 
                Senate and the Committee on Ways and Means of 
                the House of Representatives a report on--
                          ``(i) the initial allocation among 
                        States of funds for training approved 
                        under this section;
                          ``(ii) any additional distributions 
                        of funds for training approved under 
                        this section during the two most recent 
                        fiscal quarters and cumulatively during 
                        the fiscal year;
                          ``(iii) the amount of funds obligated 
                        and expended by the States to provide 
                        training approved under this section 
                        during the two most recent fiscal 
                        quarters and cumulatively during the 
                        fiscal year; and
                          ``(iv) the efforts of the Department 
                        of Labor to ensure that each State 
                        receives an appropriate level of funds 
                        during the fiscal year to provide 
                        training approved under this section to 
                        all eligible workers.
                  ``(B) Definition.--In this paragraph, the 
                term `fiscal quarter' means any 3-month period 
                beginning on October 1, January 1, April 1, or 
                July 1 of a fiscal year.
  ``(c) Training Programs That May Be Approved.--The training 
programs that may be approved under subsection (a) include--
          ``(1) employer-based training, including--
                  ``(A) on-the-job training;
                  ``(B) customized training; and
                  ``(C) apprenticeship programs registered 
                under the National Apprenticeship Act (29 
                U.S.C. 50 et seq.);
          ``(2) a training program that leads to a license, 
        certificate, or degree and is linked to occupations in 
        demand, which may include training provided in 
        classroom, distance learning, and technology-based 
        learning;
          ``(3) a training program that has been determined by 
        a State to be eligible to receive payments under 
        section 122 of the Workforce Investment Act of 1998 (29 
        U.S.C. 2842);
          ``(4) a program of remedial education that will 
        enable a worker to obtain employment or to enroll in a 
        training program described in paragraph (2) or (3); and
          ``(5) a training program for which all, or any 
        portion, of the costs of training the worker are paid--
                  ``(A) under any Federal or State program 
                other than this chapter; or
                  ``(B) from any source other than this 
                section.
  ``(d) Sharing of Costs.--
          ``(1) In general.--The Secretary is not required 
        under subsection (a) to pay the costs of any training 
        approved under such subsection to the extent that such 
        costs are paid--
                  ``(A) under any Federal or State program 
                other than this chapter; or
                  ``(B) from any source other than this 
                section.
          ``(2) Cost-sharing agreement.--Before approving any 
        training to which paragraph (1) may apply, the 
        Secretary may require that the adversely affected 
        worker or the adversely affected incumbent worker enter 
        into an agreement with the Secretary under which the 
        Secretary will not be required to pay under this 
        section the portion of the costs of such training that 
        the worker has reason to believe will be paid under the 
        program, or by the source, described in subparagraph 
        (A) or (B) of paragraph (1).
  ``(e) Supplemental Assistance.--
          ``(1) In general.--The Secretary may, where 
        appropriate, authorize supplemental assistance 
        necessary to defray reasonable transportation and 
        subsistence expenses for separate maintenance when 
        training is provided in facilities that are not within 
        commuting distance of a worker's regular place of 
        residence.
          ``(2) Limitations.--The Secretary may not authorize--
                  ``(A) payments for subsistence that exceed 
                whichever is the lesser of--
                          ``(i) the actual per diem expenses 
                        for subsistence; or
                          ``(ii) payments at 50 percent of the 
                        prevailing per diem allowance rate 
                        authorized under the Federal travel 
                        regulations; or
                  ``(B) payments for travel expenses exceeding 
                the prevailing mileage rate authorized under 
                the Federal travel regulations.
  ``(f) Payment of Costs of On-the-Job Training.--
          ``(1) In general.--The Secretary shall pay the costs 
        of any on-the-job training of an adversely affected 
        worker that is approved under subsection (a)(l), but 
        the Secretary may pay such costs, notwithstanding any 
        other provision of this section, only if--
                  ``(A) no currently employed worker is 
                displaced by such adversely affected worker 
                (including partial displacement such as a 
                reduction in the hours of nonovertime work, 
                wages, or employment benefits);
                  ``(B) such training does not impair existing 
                contracts for services or collective bargaining 
                agreements;
                  ``(C) in the case of training which would be 
                inconsistent with the terms of a collective 
                bargaining agreement, the written concurrence 
                of the labor organization concerned has been 
                obtained;
                  ``(D) no other individual is on layoff from 
                the same, or any substantially equivalent, job 
                for which such adversely affected worker is 
                being trained;
                  ``(E) the employer has not terminated the 
                employment of any regular employee or otherwise 
                reduced the work force of the employer with the 
                intention of filling the vacancy so created by 
                hiring such adversely affected worker;
                  ``(F) the job for which such adversely 
                affected worker is being trained is not being 
                created in a promotional line that will 
                infringe in any way upon the promotional 
                opportunities of currently employed 
                individuals;
                  ``(G) such training is not for the same 
                occupation from which the worker was separated 
                and with respect to which such worker's group 
                was certified pursuant to section 222;
                  ``(H) the employer is provided reimbursement 
                of not more than 50 percent of the wage rate of 
                the participant, for the cost of providing the 
                training and additional supervision related to 
                the training;
                  ``(I) the duration of such training does not 
                exceed 1 year; and
                  ``(J) the employer has not received payment 
                under subsection (a)(1) with respect to any 
                other on-the-job training provided by such 
                employer which failed to meet the requirements 
                of subparagraphs (A), (B), (C), (D), (E), and 
                (F).
          ``(2) Supplementary training.--An on-the-job training 
        program approved under this section may include, as a 
        component of such program, the provision of training 
        with a provider other than the employer that is not 
        provided on-the-job and is designed to enhance the 
        occupational skills of the worker. The costs of such 
        training shall be subject to the limitation described 
        in subsection (b)(2)(B).
  ``(g) Effect of Approved Training on Eligibility for 
Unemployment Compensation.--A worker may not be determined to 
be ineligible or disqualified for unemployment insurance or 
program benefits under this subchapter because the individual 
is in training approved under subsection (a), because of 
leaving work which is not comparable employment to enter such 
training, or because of the application to any such week in 
training of provisions of State law or Federal unemployment 
insurance law relating to availability for work, active search 
for work, or refusal to accept work.
  ``(h) Definition.--In this section, the term `customized 
training' means training that is--
          ``(1) designed to meet the special requirements of an 
        employer or group of employers;
          ``(2) conducted with a commitment by the employer or 
        group of employers to employ an individual upon 
        successful completion of the training; and
          ``(3) for which the employer pays for a significant 
        portion of the cost of such training, as determined by 
        the Secretary.''.
  (b) Conforming Amendments.--Part II of subchapter B of 
chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2295 
et seq.) is amended--
          (1) in section 237(b)(2), by striking ``section 
        236(b)(1) and (2)'' and inserting ``section 236''; and
          (2) in subsections (b)(1) and (c)(2) of section 238, 
        by striking ``section 236(b)(1) and (2)'' each place it 
        appears and inserting ``section 236''.

SEC. 123. JOB SEARCH ALLOWANCES.

  Section 237(a)(2) of the Trade Act of 1974 (19 U.S.C. 
2297(a)(2)) is amended--
          (1) in subparagraph (B), by striking ``suitable'' and 
        inserting ``comparable''; and
          (2) in subparagraph (C)(ii), by striking ``, unless 
        the worker received a waiver under section 231(c)''.

SEC. 124. RELOCATION ALLOWANCES.

  Section 238(a)(2) of the Trade Act of 1974 (19 U.S.C. 
2298(a)(2)) is amended--
          (1) in subparagraph (B), by striking ``suitable'' and 
        inserting ``comparable'';
          (2) in subparagraph (D)--
                  (A) in the heading, by striking ``suitable'' 
                and inserting ``out-of-area''; and
                  (B) in clause (i) to read as follows:
                          ``(i) has obtained employment 
                        affording a reasonable expectation of 
                        long-term duration in the area in which 
                        the worker wishes to relocate and which 
                        provides wages that are substantially 
                        greater than the wages for the 
                        employment that is likely to be 
                        available to the worker in the area 
                        from which the worker would be 
                        relocating; and''; and
          (3) in subparagraph (E)(ii), by striking ``, unless 
        the worker received a waiver under section 231(c)''.

                     Subtitle C--General Provisions

SEC. 131. AGREEMENTS WITH STATES.

  (a) In General.--Subsection (a) of section 239 of the Trade 
Act of 1974 (19 U.S.C. 2311) is amended--
          (1) in the matter preceding clause (1), by striking 
        ``any State agency'' and inserting ``a State agency'';
          (2) in clause (2), to read as follows: ``(2) in 
        accordance with subsections (e) and (f), will afford 
        adversely affected workers testing and assessments, 
        career counseling, referral to training and job search 
        programs, and job placement services, and'';
          (3) by striking clause (3); and
          (4) by redesignating clause (4) as clause (3).
  (b) Administration.--Subsection (e) of such section is 
amended--
          (1) in the first sentence, to read as follows: ``Any 
        agreement entered into under this section shall provide 
        for the administration of the provision for 
        reemployment services, training, and supplemental 
        assistance under sections 235 and 236 of this Act by 
        the same State agency responsible for the 
        administration of the State workforce investment 
        program funded under title I of the Workforce 
        Investment Act of 1998 (29 U.S.C. 2801 et seq.) and 
        shall include such terms and conditions as are 
        established by the Secretary in consultation with the 
        States and set forth in such agreement.'';
          (2) in the second sentence, by striking ``Any 
        agency'' and inserting ``The agency''; and
          (3) by adding at the end the following new sentence: 
        ``The terms and conditions set forth in the agreement 
        shall include at a minimum that--
          ``(1) adversely affected workers applying for 
        assistance under this chapter shall be co-enrolled in 
        the dislocated worker program authorized under chapter 
        5 of subtitle B of title I of the Workforce Investment 
        Act of 1998 (29 U.S.C. 2861 et seq.); and
          ``(2) the services provided under this chapter shall 
        be administered through the one-stop delivery system 
        established under title I of such Act (29 U.S.C. 2801 
        et seq.).''.
  (c) Cooperating State Agency.--Subsection (f) of such section 
is amended--
  (1) in paragraph (2), by adding ``and'' at the end;
  (2) by striking paragraph (3);
  (3) by redesignating paragraph (4) as paragraph (3); and
  (4) in paragraph (3) (as redesignated by paragraph (3) of 
this subsection), by striking ``suitable''.
  (d) Performance Accountability.--Such section is further 
amended by adding at the end the following new subsection:
  ``(h) Performance Accountability.--
          ``(1) In general.--Any agreement entered into under 
        this section shall include performance measures that 
        the cooperating State or State agency is expected to 
        achieve with respect to the program carried out under 
        this chapter. The performance measures shall consist of 
        indicators of performance and levels of performance 
        applicable to each indicator.
          ``(2) Indicators of performance.--The indicators of 
        performance shall be--
                  ``(A) entry into employment;
                  ``(B) retention in employment;
                  ``(C) average earnings; and
                  ``(D) such other indicators as the Secretary 
                determines are appropriate.
          ``(3) Levels of performance.--The levels of 
        performance for each State for the indicators of 
        performance described in paragraph (2) shall be 
        determined by the Secretary, after consultation with 
        the State.
          ``(4) Performance reporting.--Any agreement shall 
        also include a requirement that the State annually 
        report to the Secretary the level of performance 
        achieved with respect to each indicator under the 
        program carried out under this chapter in the preceding 
        fiscal year, and the State shall submit such additional 
        reports regarding the performance of programs as the 
        Secretary may require. The Secretary shall make the 
        information contained in the annual reports available 
        to the general public through publication on the 
        Website of the Department of Labor and other 
        appropriate methods and shall provide copies of the 
        reports to the Committee on Ways and Means of the House 
        of Representatives and the Committee on Finance of the 
        Senate. The Secretary shall also publish on the Website 
        of the Department of Labor a list identifying those 
        States that fail to submit reports to the Secretary on 
        a timely basis or fail to submit accurate reports.''.

SEC. 132. AUTHORIZATION OF APPROPRIATIONS; INCENTIVE PAYMENTS TO 
                    STATES.

  (a) In General.--Subsection (a) of section 245 of the Trade 
Act of 1974 (19 U.S.C. 2317) is amended by striking ``December 
31, 2007'' and inserting ``September 30, 2012''.
  (b) Incentive Payments to States.--Such section is further 
amended by adding at the end the following new subsection:
  ``(c) Incentive Payments to States.--If, in the last quarter 
of any fiscal year, the Secretary determines that the amount of 
funds needed to make payments for the costs of training under 
this chapter for such fiscal year will not reach the amount of 
the limitation described in section 236(b)(1)(A) and funds 
appropriated to make payments for the costs of such training 
remain available for obligation, the Secretary may use not more 
than an amount equal to five percent of the amount of the 
limitation described in such section 236(b)(1)(A) to award 
funds to States that the Secretary determines have demonstrated 
exemplary performance in carrying out the program under this 
chapter with respect to exceeding the performance levels 
established pursuant to section 239(h) and with respect to such 
other factors as the Secretary determines appropriate. Such 
funds shall be available to the States for the purpose of 
enhancing the administration of the program which may include 
improvements to management information systems, targeted 
outreach, staff training, and enhanced services to 
participants.''.
  (c) Conforming and Clerical Amendments.--
          (1) Conforming amendment.--Such section is further 
        amended in the heading by inserting before the period 
        at the end the following: ``; INCENTIVE PAYMENTS TO 
        STATES''.
          (2) Clerical amendment.--The table of contents in 
        section 1 of the Trade Act of 1974 is amended by 
        striking the item relating to section 245 and inserting 
        the following:

``Sec. 245. Authorization of appropriations; incentive payments to 
          States.''.

SEC. 133. PHASE-OUT OF DEMONSTRATION PROJECT FOR ALTERNATIVE TRADE 
                    ADJUSTMENT ASSISTANCE FOR OLDER WORKERS.

  Section 246(b)(1) of the Trade Act of 1974 (19 U.S.C. 
2318(b)(1)) is amended by striking ``the date that is 5 years 
after the date under which such program is implemented by the 
State'' and inserting ``September 30, 2008''.

SEC. 134. WAGE SUPPLEMENT PROGRAM.

  (a) In General.--Chapter 2 of title II of the Trade Act of 
1974 (19 U.S.C. 2271 et seq.) is amended by inserting after 
section 246 the following new section:

``SEC. 246A. WAGE SUPPLEMENT PROGRAM.

  ``(a) Establishment.--Beginning on October 1, 2008, the 
Secretary shall establish a program to provide the benefits 
described in subsection (b) to an adversely affected worker who 
meets the eligibility criteria described in subsection (c), 
including the requirement that such worker be employed for the 
minimum number of hours per week described in subsection 
(c)(3).
  ``(b) Benefits.--
          ``(1) Amount of payments.--A State shall use the 
        funds provided to the State under section 241 to pay an 
        hourly wage supplement to an eligible adversely 
        affected worker for a period not to exceed 2 years, in 
        an amount equal to the difference, if any (but not less 
        than zero) resulting from subtracting the amount 
        described in paragraph (2)(B) from the amount described 
        in paragraph (2)(A).
          ``(2) Factors.--(A) For purposes of paragraph (1), 
        the amount described in this subparagraph is the sum 
        of--
                  ``(i) whichever is the highest of--
                          ``(I) the hourly minimum wage that is 
                        applicable to a worker under the Fair 
                        Labor Standards Act of 1938 (29 U.S.C. 
                        201 et seq.), or if such worker is 
                        exempt under section 13 of such Act (29 
                        U.S.C. 213), the hourly minimum wage 
                        that would be applicable if section 
                        6(a)(1) of such Act (29 U.S.C. 
                        206(a)(1)) were applied; or
                          ``(II) the applicable State or local 
                        hourly minimum wage; and
                  ``(ii) $2.40.
          ``(B) For purposes of paragraph (1), the amount 
        described in this subparagraph is the hourly wage 
        actually paid to such worker.
          ``(3) Health insurance eligibility.--A worker 
        described in subsection (c) who is participating in the 
        program established under subsection (a) is eligible to 
        receive, for a period not to exceed 2 years, a credit 
        for health insurance costs to the extent provided under 
        section 35 of the Internal Revenue Code of 1986.
  ``(c) Eligibility for Wage Supplement.--A worker in a group 
that the Secretary has certified as eligible to apply for 
adjustment assistance under section 223 may elect to receive 
the benefits described in subsection (b) if such worker--
          ``(1) is covered by a certification under subchapter 
        A of this chapter;
          ``(2) meets the requirements of paragraphs (1) and 
        (2) of section 231(a));
          ``(3) is employed for an average of at least 30 hours 
        per week, which may include employment as part of an 
        apprenticeship program registered under the National 
        Apprenticeship Act (20 U.S.C. 50 et seq.);
          ``(4) does not return to the employment from which 
        the worker was separated; and
          ``(5) has not received any payments under section 246 
        while covered under the same certification as described 
        in paragraph (1).
  ``(d) Effect on Other Benefits.--A worker receiving payments 
under this section shall not be eligible to receive other 
benefits under this chapter except for training assistance 
provided under section 236 (provided that such worker otherwise 
meets the requirements of section 236) or the assistance 
described in subsection (b)(3). A worker may receive payments 
under this section during breaks in training that exceed the 
period described in section 233(e) if the worker otherwise 
meets the requirements of this section.''.
  (b) Clerical Amendment.--The table of contents in section 1 
of the Trade Act of 1974 is amended by inserting after the item 
relating to section 246 the following:

``Sec. 246A. Wage supplement program.''.

SEC. 135. DEFINITIONS.

  Section 247 of the Trade Act of 1974 (19 U.S.C. 2319) is 
amended by adding at the end the following new paragraphs:
          ``(18) The term `comparable employment' means, with 
        respect to a worker, work of a substantially equal or 
        higher skill level than the worker's past adversely 
        affected employment, and wages for such work at not 
        less than 80 percent of the worker's average weekly 
        wage.
          ``(19) The term `adversely affected incumbent worker' 
        means a worker who is a member of a group of workers 
        who have been certified as eligible to apply for 
        adjustment assistance under subchapter A and who has 
        not been separated from adversely affected 
        employment.''.

SEC. 136. CAPACITY-BUILDING GRANTS TO ENHANCE TRAINING FOR WORKERS.

  (a) In General.--Chapter 2 of title II of the Trade Act of 
1974 (19 U.S.C. 2271 et seq.) is amended by adding at the end 
the following new section:

``SEC. 250. CAPACITY-BUILDING GRANTS TO ENHANCE TRAINING FOR WORKERS.

  ``(a) In General.--The Secretary may award grants to eligible 
entities described in subsection (b) to temporarily increase 
the capacity of such entities, through the activities 
authorized under subsection (c), to provide training to workers 
as provided for in section 236.
  ``(b) Eligible Entities.--An eligible entity referred to in 
subsection (a) is--
          ``(1) a community college (as such term is defined in 
        section 202(a)(2) of the Carl D. Perkins Vocational and 
        Applied Technology Education Amendments of 1998 (20 
        U.S.C. 2371(a)(2)) that provides training for 
        occupations in demand; or
          ``(2) a provider of training for occupations in 
        demand that is eligible to receive funds under section 
        122 of the Workforce Investment Act of 1998 (29 U.S.C. 
        2842).
  ``(c) Authorized Activities.--An eligible entity that is 
awarded a grant under this section shall utilize funds under 
the grant to expand available training slots and prepare 
adversely affected workers and adversely affected incumbent 
workers under this chapter for occupations in demand by 
conducting such activities as the Secretary may authorize, 
including--
          ``(1) the development of education and training 
        curricula, which may be developed in consultation with 
        employers of incumbent workers, local workforce 
        investment boards (as defined in section 117 of the 
        Workforce Investment Act of 1998 (29 U.S.C. 2832)), 
        labor organizations that represent individuals 
        currently employed in occupations in demand for the 
        local area, regional economic development agencies, 
        one-stop operators (as defined in section 101(29) of 
        such Act (29 U.S.C. 2801(29)), community-based 
        organizations, or any other public or private entity 
        that is likely to employ or facilitate the employment 
        of adversely affected workers in occupations in demand;
          ``(2) the hiring of additional faculty and staff;
          ``(3) the acquisition of new equipment or the 
        upgrading of existing equipment, which shall be 
        necessary to facilitate the teaching of job skills to 
        adversely affected workers and adversely affected 
        incumbent workers; and
          ``(4) the development of a program to provide on-the-
        job training experiences for adversely affected workers 
        in coordination with local employers that have 
        committed to employ adversely affected workers 
        following successful completion of the program.
  ``(d) Application.--
          ``(1) Requests for applications.--
                  ``(A) By the secretary.--In each fiscal year, 
                and at such times as the Secretary may 
                determine, the Secretary may request 
                applications from eligible entities to carry 
                out activities authorized under this section.
                  ``(B) By an eligible entity.--At any time, 
                and in such form and manner as the Secretary 
                may prescribe, an eligible entity may recommend 
                that the Secretary initiate a request for 
                capacity building grant applications if the 
                eligible entity believes that there has been or 
                will be a sudden and significant shortage of 
                training slots available to adversely affected 
                workers and adversely affected incumbent 
                workers in a local area.
          ``(2) Information required for application.--To be 
        eligible to receive a grant under this section, an 
        applicant shall provide to the Secretary the following 
        information in the application:
                  ``(A) A description of the factors in a local 
                area that have resulted or may result in a 
                significant increase in demand for training 
                slots by adversely affected workers and 
                adversely affected incumbent workers, which may 
                include--
                          ``(i) mass layoffs at firms that are 
                        believed to employ a large number of 
                        adversely affected workers;
                          ``(ii) imminent closure or relocation 
                        of facilities that are believed to 
                        employ a large number of adversely 
                        affected workers; and
                          ``(iii) prevailing labor market 
                        conditions that may have an immediate, 
                        measurable adverse employment impact on 
                        the employment of adversely affected 
                        workers.
                  ``(B) A description of the number of training 
                slots currently available to adversely affected 
                workers and adversely affected incumbent 
                workers, and the number of proposed additional 
                slots to be made available using funds under 
                the grant.
                  ``(C) A description of the potential number 
                of adversely affected workers and adversely 
                affected incumbent workers in the local area 
                who would be able to access increased training 
                slots.
                  ``(D) A description of the commitment made by 
                local employers, labor organizations, and other 
                public or private organizations to assist in 
                the development of training and related 
                curricula for the benefit of adversely affected 
                workers and adversely affected incumbent 
                workers.
  ``(e) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section $50,000,000 for 
each of fiscal years 2008 through 2012.''.
  (b) Clerical Amendment.--The table of contents in section 1 
of the Trade Act of 1974 is amended by inserting after the item 
relating to section 249 the following:

``Sec. 250. Capacity-building grants to enhance training for workers.''.

                       Subtitle D--Effective Date

SEC. 141. EFFECTIVE DATE.

  The amendments made by this title shall take effect beginning 
90 days after the date of the enactment of this Act.

   TITLE II--OTHER TRADE ADJUSTMENT ASSISTANCE PROGRAMS AND RELATED 
                               PROVISIONS

SEC. 201. TECHNICAL ASSISTANCE FOR FIRMS.

  Section 253 of the Trade Act of 1974 (19 U.S.C. 2343) is 
amended by adding at the end the following new subsections:
  ``(c)(1) Any grant made under subsection (b)(3) shall include 
performance measures that an intermediary organization is 
expected to achieve with respect to the program carried out 
under this chapter. The performance measures shall consist of 
indicators of performance described in paragraph (2) and levels 
of performance described in paragraph (3) applicable to each 
such indicator of performance.
  ``(2) The indicators of performance referred to in paragraph 
(1) are the following:
          ``(A) The extent to which outreach efforts 
        effectively apprise import-impacted firms likely to 
        benefit from the program about resources available 
        under the program.
          ``(B) The extent to which firms receiving adjustment 
        assistance under section 252 meet or exceed targets to 
        retain or create employment.
          ``(C) The percentage of workers totally or partially 
        separated from employment that have returned to work or 
        returned to their previous level of employment.
          ``(D) The extent to which firms receiving adjustment 
        assistance under section 252 meet or exceed targets for 
        maintaining or increasing sales or production.
          ``(E) Such other indicators of performance as the 
        Secretary may determine are appropriate.
  ``(3) The levels of performance referred to in paragraph (1) 
shall be determined by the Secretary, after consultation with 
the intermediary organization. In reviewing an intermediary 
organization's levels of performance, the Secretary shall take 
into consideration economic conditions affecting the region 
served by the organization that may affect that performance.
  ``(4)(A) Any grant made under subsection (b)(3) shall also 
include a requirement that the intermediary organization submit 
to the Secretary a report on an annual basis on the levels of 
performance achieved with respect to each indicator of 
performance under the program carried out under this chapter in 
the preceding fiscal year, and such additional reports 
regarding such indicators of performance as the Secretary may 
require.
  ``(B) The Secretary shall make the information contained in 
the reports described in subparagraph (A) available to the 
general public through publication on the Website of the 
Economic Development Administration and other appropriate 
methods. The Secretary shall provide copies of the reports 
described in subparagraph (A) to the Committee on Ways and 
Means of the House of Representatives and the Committee on 
Finance of the Senate.
  ``(C) The Secretary shall also publish on the Website of the 
Economic Development Administration a list that identifies 
those intermediary organizations that fail to submit reports to 
the Secretary in accordance with subparagraph (A) on a timely 
basis or fail to submit accurate reports to the Secretary in 
accordance with subparagraph (A).
  ``(d) At least once every three years, the Secretary shall 
provide for an independent evaluation of each intermediary 
organization receiving assistance under this section to assess 
the intermediary organization's performance and contribution 
toward retention and creation of employment. The purpose of the 
evaluations shall be to determine which intermediary 
organizations are performing well and merit continued 
assistance under this section and which intermediary 
organizations should not receive continued assistance under 
this section, so that other universities and intermediary 
organizations that have not previously received assistance 
under this section may participate in the program carried out 
under this chapter.''.

SEC. 202. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE FOR FIRMS.

  Section 256(b) of the Trade Act of 1974 (19 U.S.C. 2346(b)) 
is amended--
          (1) by striking ``and $4,000,000'' and inserting 
        ``$4,000,000''; and
          (2) by inserting after ``October 1, 2007,'' the 
        following: ``$15,000,000 for the 9-month period 
        beginning on January 1, 2008, and $19,000,000 for each 
        of the fiscal years 2009 through 2012,''.

SEC. 203. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE FOR FARMERS.

  Section 298(a) of the Trade Act of 1974 (19 U.S.C. 2401g(a)) 
is amended by adding at the end the following new sentence: 
``There are authorized to be appropriated to the Department of 
Agriculture to carry out this chapter $81,000,000 for the 9-
month period beginning on January 1, 2008, and $90,000,000 for 
each of the fiscal years 2009 through 2012.''.

SEC. 204. JUDICIAL REVIEW.

  (a) In General.--Section 284(a) of the Trade Act of 1974 (19 
U.S.C. 2395(a)) is amended in the first sentence--
          (1) by striking ``or authorized representative'' and 
        inserting ``or other duly authorized representative'';
          (2) by striking ``aggrieved'' and inserting ``, or 
        any of the individuals or entities described in section 
        221(a)(1)(C), aggrieved (or on behalf of such workers 
        aggrieved)''; and
          (3) by striking ``section 223'' and inserting 
        ``section 226''.
  (b) Effective Date.--The amendments made by subsection (a) 
shall take effect beginning 90 days after the date of the 
enactment of this Act.

SEC. 205. TERMINATION.

  Section 285 of the Trade Act of 1974 (19 U.S.C. 2271 note) is 
amended by striking ``December 31, 2007'' each place it appears 
and inserting ``September 30, 2012''.

                  TITLE III--MISCELLANEOUS PROVISIONS

SEC. 301. CREDIT REDUCTION FOR FAILURES RELATING TO CO-ENROLLMENT OF 
                    PARTICIPANTS AND PROGRAM PERFORMANCE REPORTS.

  (a) In General.--Paragraph (3) of section 3302(c) of the 
Internal Revenue Code of 1986 is amended--
          (1) by striking ``(3) If'' and inserting ``(3) (A) 
        Except as provided in subparagraph (B), if'',
          (2) by redesignating subparagraphs (A) and (B) as 
        clauses (i) and (ii), respectively, and
          (3) by adding at the end the following new 
        subparagraph:
          ``(B) If the Secretary of Labor determines that a 
        State, or State agency, failed to meet the requirements 
        of subsections (e)(1) (relating to the co-enrollment of 
        participants) or (h)(3) (relating to the submission of 
        reports on program performance) of section 239 of the 
        Trade Act of 1974, the Secretary of Labor may direct 
        that, in the case of a taxpayer subject to the 
        unemployment compensation law of such State, the total 
        credits (after applying subsections (a) and (b) and 
        paragraphs (1) and (2) of this section) otherwise 
        allowable under this section for a year during which 
        such State or agency fails to meet those requirements 
        shall (in lieu of reduction under subparagraph (A)) be 
        reduced by 3 percent of the tax imposed with respect to 
        wages paid by such taxpayer during such year which are 
        attributable to such State.''.
  (b) Effective Date.--The amendments made by this section 
shall apply with respect to taxable years beginning after 
September 30, 2008.

SEC. 302. TAA WAGE SUPPLEMENT PARTICIPANTS ELIGIBILITY FOR CREDIT FOR 
                    HEALTH INSURANCE COSTS.

  (a) Eligibility.--Paragraph (1) of section 35(c) of the 
Internal Revenue Code of 1986 is amended by striking ``and'' at 
the end of subparagraph (B), by striking the period at the end 
of subparagraph (C) and inserting ``, and'' , and by adding 
after subparagraph (C) the following:
                  ``(D) an eligible TAA wage supplement 
                recipient.''.
  (b) Eligible TAA Wage Supplement Recipient Defined.--
Subsection (c) of section 35 of such Code is amended by adding 
after paragraph (4) the following:
          ``(5) Eligible taa wage supplement recipient.--The 
        term `eligible TAA wage supplement recipient' means, 
        with respect to any month, any individual who--
                  ``(A) is a worker described in section 
                246A(c) of the Trade Act of 1974 who is 
                participating in the wage supplement program 
                established under section 246A(a) of such Act, 
                and
                  ``(B) is receiving a benefit for such month 
                under section 246A(b) of such Act.
        An individual shall continue to be treated as an 
        eligible TAA wage supplement recipient during the first 
        month that such individual would otherwise cease to be 
        an eligible TAA wage supplement recipient by reason of 
        the preceding sentence.''.
  (c) Qualified Health Insurance.--Subparagraph (J) of section 
35(e)(1) of such Code is amended by striking ``or'' at the end 
of clause (ii), by striking the period at the end of clause 
(iii) and inserting ``, or'' , and by inserting after clause 
(iii) the following:
                          ``(iv) in the case of an eligible TAA 
                        wage supplement recipient, the benefit 
                        described in subsection (c)(5)(B).''.
  (d) Subsidized Coverage.--Subparagraph (B) of section 
35(f)(1) of such Code is amended --
          (1) by inserting ``or an eligible TAA wage supplement 
        recipient'' after ``eligible alternative TAA 
        recipient'' in the matter preceding clause (i), and
          (2) by inserting ``or eligible taa wage supplement 
        recipients'' after ``eligible alternative taa 
        recipients'' in the heading.
  (e) Advance Payment of HCTC.--Paragraph (1) of section 
7527(d) of such Code is amended by striking ``or an eligible 
alternative TAA recipient (as defined in section 35(c)(3))'' 
and inserting ``, an eligible alternative TAA recipient (as 
defined in section 35(c)(3)), or an eligible TAA wage 
supplement recipient (as defined in section 35(c)(5))''.
  (f) Effective Date.--The amendments made by this section 
shall apply to taxable years beginning after December 31, 2007.

SEC. 303. SPECIAL ALLOCATION UNDER NEW MARKETS TAX CREDIT IN CONNECTION 
                    WITH TRADE ADJUSTMENT ASSISTANCE.

  (a) In General.--Section 45D of the Internal Revenue Code of 
1986 is amended by redesignating subsection (i) as subsection 
(j) and by inserting after subsection (h) the following new 
subsection:
  ``(i) Special Allocations in Connection With Trade Adjustment 
Assistance.--
          ``(1) Allocations.--The new markets tax credit 
        limitation otherwise determined under subsection (f)(1) 
        shall be increased by an amount equal to $500,000,000 
        for 2008 to be allocated among qualified community 
        development entities to make capital or equity 
        investments in, or loans to, qualified TAA businesses.
          ``(2) Restriction on designation.--A qualified 
        community development entity receiving an allocation 
        under paragraph (1) may not use such allocation to 
        designate any qualified equity investment under 
        subsection (b)(1)(C) unless substantially all of such 
        investment is used for the purpose described in 
        paragraph (1).
          ``(3) Qualified taa businesses.--For purposes of this 
        subsection--
                  ``(A) In general.--The term `qualified TAA 
                business' means, with respect to any taxable 
                year--
                          ``(i) any qualified active low-income 
                        community business (as defined in 
                        subsection (d)(2)) which meets the 
                        requirements of clause (i) or (ii) of 
                        subparagraph (B) for such taxable year, 
                        and
                          ``(ii) any specified TAA business.
                  ``(B) Specified taa business.--The term 
                `specified TAA business' means, with respect to 
                any taxable year, any corporation (including a 
                nonprofit corporation) or partnership if--
                          ``(i) not less than 40 percent of the 
                        individuals hired by such entity during 
                        such taxable year were eligible TAA 
                        recipients (as defined in section 
                        35(c)(2)) or eligible alternative TAA 
                        recipients (as defined in section 
                        35(c)(3)) with respect to any month 
                        beginning during the 1-year period 
                        ending on the hiring date (as defined 
                        in section 51(d)) of such individual,
                          ``(ii) such entity is certified by 
                        the Secretary of Commerce as eligible 
                        to apply for adjustment assistance 
                        under chapter 3 of title II of the 
                        Trade Act of 1974 with respect to any 
                        portion of the taxable year in which 
                        the investment or loan referred to in 
                        paragraph (1) is made, and
                          ``(iii) the Secretary determines that 
                        such entity will utilize the assistance 
                        provided pursuant to this section in a 
                        manner consistent with the purposes of 
                        subsection (d)(2)(A).
                The requirement of clause (i) shall be treated 
                as satisfied for any taxable year if such 
                clause would be satisfied if all individuals 
                hired by such entity during such taxable year 
                and all preceding taxable years which are not 
                before the taxable year in which the investment 
                or loan referred to in paragraph (1) was made 
                were taken into account.
          ``(4) Reallocations.--Subsection (f)(3) shall be 
        applied separately with respect to the amount of the 
        increase under paragraph (1).''.
  (b) Effective Date.--The amendments made by this section 
shall apply to allocations made after December 31, 2007.

SEC. 304. EXPEDITED REEMPLOYMENT DEMONSTRATION PROJECTS.

  Title III of the Social Security Act (42 U.S.C. 501 and 
following) is amended by adding at the end the following:

                        ``DEMONSTRATION PROJECTS

  ``Sec. 305.  (a) The Secretary of Labor may enter into 
agreements, with States submitting an application described in 
subsection (b), for the purpose of allowing such States to 
conduct demonstration projects to test and evaluate measures 
designed--
  ``(1) to expedite, such as through the use of a wage 
insurance program, the reemployment of individuals who 
establish initial eligibility for unemployment compensation 
under the State law of such State; or
  ``(2) to improve the effectiveness of such State in carrying 
out its State law.
  ``(b) The Governor of any State desiring to conduct a 
demonstration project under this section shall submit an 
application to the Secretary of Labor at such time, in such 
manner, and including such information as the Secretary of 
Labor may require. Any such application shall, at a minimum, 
include--
          ``(1) a general description of the proposed 
        demonstration project, including the authority (under 
        the laws of the State) for the measures to be tested, 
        as well as the period of time during which such 
        demonstration project would be conducted;
          ``(2) if a waiver under subsection (c) is requested, 
        the specific aspects of the project to which the waiver 
        would apply and the reasons why such waiver is needed;
          ``(3) a description of the goals and the expected 
        programmatic outcomes of the demonstration project, 
        including how the project would contribute to the 
        objective described in subsection (a)(1), subsection 
        (a)(2), or both;
          ``(4) assurances (accompanied by supporting analysis) 
        that the demonstration project would not result in any 
        increased net costs to the State's account in the 
        Unemployment Trust Fund;
          ``(5) a description of the manner in which the 
        State--
                  ``(A) will conduct an impact evaluation, 
                using a control or comparison group or other 
                valid methodology, of the demonstration 
                project; and
                  ``(B) will determine the extent to which the 
                goals and outcomes described in paragraph (3) 
                were achieved; and
          ``(6) assurances that the State will provide any 
        reports relating to the demonstration project, after 
        its approval, as the Secretary of Labor may require.
  ``(c) The Secretary of Labor may waive any of the 
requirements of section 3304(a)(4) of the Internal Revenue Code 
of 1986 or of paragraph (1) or (5) of section 303(a), to the 
extent and for the period the Secretary of Labor considers 
necessary to enable the State to carry out a demonstration 
project under this section.
  ``(d) A demonstration project under this section--
          ``(1) may be commenced any time after September 30, 
        2007; and
          ``(2) may not, under subsection (b), be approved for 
        a period of time greater than 2 years, subject to 
        extension upon request of the Governor of the State 
        involved for such additional period as the Secretary of 
        Labor may agree to, except that in no event may a 
        demonstration project under this section be conducted 
        after the end of the 5-year period beginning on the 
        date of the enactment of this section.
  ``(e) The Secretary of Labor shall, in the case of any State 
for which an application is submitted under subsection (b)--
          ``(1) notify the State as to whether such application 
        has been approved or denied within 90 days after 
        receipt of a complete application, and
          ``(2) provide public notice of the decision within 10 
        days after providing notification to the State in 
        accordance with paragraph (1).
Public notice under paragraph (2) may be provided through the 
Internet or other appropriate means. Any application under this 
section that has not been approved within such 90 days shall be 
treated as denied.
  ``(f) The Secretary of Labor may terminate a demonstration 
project under this section if the Secretary determines that the 
State has not complied with the terms and conditions of the 
project.''.

SEC. 305. INCREASE IN PERCENTAGE OF TAA AND PBGC HEALTH INSURANCE TAX 
                    CREDIT.

  (a) In General.--Subsection (a) of section 35 of the Internal 
Revenue Code of 1986 is amended by striking ``65 percent'' and 
inserting ``70 percent''.
  (b) Conforming Amendment.--Subsection (b) of section 7527 of 
such Code is amended by striking ``65 percent'' and inserting 
``70 percent''.
  (c) Effective Date.--The amendments made by this section 
shall apply to months beginning after December 31, 2007, in 
taxable years ending after such date.

SEC. 306. COLLECTION OF UNEMPLOYMENT COMPENSATION DEBTS.

  (a) In General.--Section 6402 of the Internal Revenue Code 
(relating to authority to make credits or refunds) is amended 
by redesignating subsections (f) through (k) as subsections (g) 
through (l), respectively, and by inserting after subsection 
(e) the following new subsection:
  ``(f) Collection of Unemployment Compensation Debts.--
          ``(1) In general.--Upon receiving notice from any 
        State that a named person owes a covered unemployment 
        compensation debt to such State, the Secretary shall, 
        under such conditions as may be prescribed by the 
        Secretary--
                  ``(A) reduce the amount of any overpayment 
                payable to such person by the amount of such 
                covered unemployment compensation debt;
                  ``(B) pay the amount by which such 
                overpayment is reduced under subparagraph (A) 
                to such State and notify such State of such 
                person's name, taxpayer identification number, 
                address, and the amount collected; and
                  ``(C) notify the person making such 
                overpayment that the overpayment has been 
                reduced by an amount necessary to satisfy a 
                covered unemployment compensation debt.
        If an offset is made pursuant to a joint return, the 
        notice under subparagraph (B) shall include the names, 
        taxpayer identification numbers, and addresses of each 
        person filing such return and the notice under 
        subparagraph (C) shall include information related to 
        the rights of a spouse of a person subject to such an 
        offset.
          ``(2) Priorities for offset.--Any overpayment by a 
        person shall be reduced pursuant to this subsection--
                  ``(A) after such overpayment is reduced 
                pursuant to--
                          ``(i) subsection (a) with respect to 
                        any liability for any internal revenue 
                        tax on the part of the person who made 
                        the overpayment;
                          ``(ii) subsection (c) with respect to 
                        past-due support; and
                          ``(iii) subsection (d) with respect 
                        to any past-due, legally enforceable 
                        debt owed to a Federal agency; and
                  ``(B) before such overpayment is credited to 
                the future liability for any Federal internal 
                revenue tax of such person pursuant to 
                subsection (b).
        If the Secretary receives notice from a State or States 
        of more than one debt subject to paragraph (1) or 
        subsection (e) that is owed by a person to such State 
        or States, any overpayment by such person shall be 
        applied against such debts in the order in which such 
        debts accrued.
          ``(3) Notice; consideration of evidence.--No State 
        may take action under this subsection until such 
        State--
                  ``(A) notifies the person owing the covered 
                unemployment compensation debt that the State 
                proposes to take action pursuant to this 
                section;
                  ``(B) provides such person at least 60 days 
                to present evidence that all or part of such 
                liability is not legally enforceable;
                  ``(C) considers any evidence presented by 
                such person and determines that an amount of 
                such debt is legally enforceable; and
                  ``(D) satisfies such other conditions as the 
                Secretary may prescribe to ensure that the 
                determination made under subparagraph (C) is 
                valid and that the State has made reasonable 
                efforts to obtain payment of such covered 
                unemployment compensation debt.
          ``(4) Covered unemployment compensation debt.--For 
        purposes of this subsection, the term `covered 
        unemployment compensation debt' means--
                  ``(A) a past-due debt for erroneous payment 
                of unemployment compensation which has become 
                final under the law of a State certified by the 
                Secretary of Labor pursuant to section 3304 and 
                which remains uncollected;
                  ``(B) contributions due to the unemployment 
                fund of a State for which the State has 
                determined the person to be liable; and
                  ``(C) any penalties and interest assessed on 
                such debt.
          ``(5) Regulations.--
                  ``(A) In general.--The Secretary may issue 
                regulations prescribing the time and manner in 
                which States must submit notices of covered 
                unemployment compensation debt and the 
                necessary information that must be contained in 
                or accompany such notices. The regulations may 
                specify the minimum amount of debt to which the 
                reduction procedure established by paragraph 
                (1) may be applied.
                  ``(B) Fee payable to secretary.--The 
                regulations may require States to pay a fee to 
                the Secretary, which may be deducted from 
                amounts collected, to reimburse the Secretary 
                for the cost of applying such procedure. Any 
                fee paid to the Secretary pursuant to the 
                preceding sentence shall be used to reimburse 
                appropriations which bore all or part of the 
                cost of applying such procedure.
                  ``(C) Submission of notices through secretary 
                of labor.--The regulations may include a 
                requirement that States submit notices of 
                covered unemployment compensation debt to the 
                Secretary via the Secretary of Labor in 
                accordance with procedures established by the 
                Secretary of Labor. Such procedures may require 
                States to pay a fee to the Secretary of Labor 
                to reimburse the Secretary of Labor for the 
                costs of applying this subsection. Any such fee 
                shall be established in consultation with the 
                Secretary of the Treasury. Any fee paid to the 
                Secretary of Labor may be deducted from amounts 
                collected and shall be used to reimburse the 
                appropriation account which bore all or part of 
                the cost of applying this subsection.
          ``(6) Erroneous payment to state.--Any State 
        receiving notice from the Secretary that an erroneous 
        payment has been made to such State under paragraph (1) 
        shall pay promptly to the Secretary, in accordance with 
        such regulations as the Secretary may prescribe, an 
        amount equal to the amount of such erroneous payment 
        (without regard to whether any other amounts payable to 
        such State under such paragraph have been paid to such 
        State).''.
  (b) Disclosure of Certain Information to States Requesting 
Refund Offsets for Legally Enforceable State Unemployment 
Compensation Debt.--
          (1) General rule.--Paragraph (3) of section 6103(a) 
        of such Code is amended by inserting ``(10),'' after 
        ``(6),''.
          (2) Disclosure to department of labor and its 
        agent.--Paragraph (10) of section 6103(l) of such Code 
        is amended--
                  (A) by striking ``(c), (d), or (e)'' each 
                place it appears in the heading and text and 
                inserting ``(c), (d), (e), or (f)'',
                  (B) in subparagraph (A) by inserting ``, to 
                officers and employees of the Department of 
                Labor and its agent for purposes of 
                facilitating the exchange of data in connection 
                with a request made under subsection (f)(5) of 
                section 6402,'' after ``section 6402'', and
                  (C) in subparagraph (B) by inserting ``, and 
                any agents of the Department of Labor,'' after 
                ``agency'' the first place it appears.
          (3) Safeguards.--Paragraph (4) of section 6103(p) of 
        such Code is amended--
                  (A) in the matter preceding subparagraph (A), 
                by striking ``(l)(16),'' and inserting 
                ``(l)(10), (16),'';
                  (B) in subparagraph (F)(i), by striking 
                ``(l)(16),'' and inserting ``(l)(10), (16),''; 
                and
                  (C) In the matter following subparagraph 
                (f)(iii)--
                          (i) in each of the first two places 
                        it appears, by striking ``(l)(16),'' 
                        and inserting ``(l)(10), (16),'';
                          (ii) by inserting ``(10),'' after 
                        ``paragraph (6)(A),''; and
                          (iii) in each of the last two places 
                        it appears, by striking ``(l)(16)'' and 
                        inserting ``(l)(10) or (16)''.
  (c) Expenditures From State Fund.--Section 3304(a)(4) of such 
Code is amended--
          (1) in subparagraph (E), by striking ``and'' after 
        the semicolon;
          (2) in subparagraph (F), by inserting ``and'' after 
        the semicolon; and
          (3) by adding at the end the following new 
        subparagraph:
                  ``(G) With respect to amounts of covered 
                unemployment compensation debt (as defined in 
                section 6402(f)(4)) collected under section 
                6402(f).--
                          ``(i) amounts may be deducted to pay 
                        any fees authorized under such section; 
                        and
                          ``(ii) the penalties and interest 
                        described in section 6402(f)(4)(B) may 
                        be transferred to the appropriate State 
                        fund into which the State would have 
                        deposited such amounts had the person 
                        owing the debt paid such amounts 
                        directly to the State;''.
  (d) Conforming Amendments.--
          (1) Subsection (a) of section 6402 of such Code is 
        amended by striking ``(c), (d), and (e),'' and 
        inserting ``(c), (d), (e), and (f)''.
          (2) Paragraph (2) of section 6402(d) of such Code is 
        amended by striking ``and before such overpayment is 
        reduced pursuant to subsection (e)'' and inserting 
        ``and before such overpayment is reduced pursuant to 
        subsections (e) and (f)''.
          (3) Paragraph (3) of section 6402(e) of such Code is 
        amended in the last sentence by inserting ``or 
        subsection (f)'' after ``paragraph (1)''.
          (4) Subsection (g) of section 6402 of such Code, as 
        redesignated by subsection (a), is amended by striking 
        ``(c), (d), or (e)'' and inserting ``(c), (d), (e), or 
        (f)''.
          (5) Subsection (i) of section 6402 of such Code, as 
        redesignated by subsection (a), is amended by striking 
        ``subsection (c) or (e)'' and inserting ``subsection 
        (c), (e), or (f)''.
  (e) Effective Date.--The amendments made by this section 
shall apply to refunds payable under section 6402 of the 
Internal Revenue Code of 1986 on or after the date of enactment 
of this Act.

SEC. 307. OFFSETS.

  (a) Time for Payment of Corporate Estimated Taxes.--
Subparagraph (B) of section 401(1) of the Tax Increase 
Prevention and Reconciliation Act of 2005 is amended by 
striking ``115 percent'' and inserting ``127.50 percent''.
  (b) Customs User Fees.--Section 13031(j)(3)(A) of the 
Consolidated Omnibus Budget Reconciliation Act of 1985 (19 
U.S.C. 58c(j)(3)(A)) is amended by striking ``October 21, 
2014'' and inserting ``February 17, 2015''.
  (c) Timeframe for Medicare Part A and B Payments.--
Notwithstanding sections 1816(c) and 1842(c)(2) of the Social 
Security Act or any other provision of law--
          (1) any payment from the Federal Hospital Insurance 
        Trust Fund under section 1817 of the Social Security 
        Act (42 U.S.C. 1395i) or from the Federal Supplementary 
        Medical Insurance Trust Fund under section 1841 of such 
        Act (42 U.S.C. 1395t) for claims submitted under part A 
        or B of title XVIII of such Act for items and services 
        furnished under such part A or B, respectively, that 
        would otherwise be payable during the period beginning 
        on September 22, 2012, and ending on September 30, 
        2012, shall be paid on the first business day of 
        October 2012; and
          (2) no interest or late penalty shall be paid to an 
        entity or individual for any delay in a payment by 
        reason of the application of paragraph (1).

               TITLE IV--WORKFORCE INVESTMENT IMPROVEMENT

SEC. 401. SHORT TITLE.

  This title may be cited as the ``Workforce Investment 
Improvement Act of 2007''.

SEC. 402. REFERENCES.

  Except as otherwise expressly provided, wherever in this 
title an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the 
amendment or repeal shall be considered to be made to a section 
or other provision of the Workforce Investment Act of 1998 (20 
U.S.C. 9201 et seq.).

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

SEC. 411. DEFINITIONS.

  Section 101 (29 U.S.C. 2801) is amended--
          (1) by striking paragraphs (13) and (24) and 
        redesignating paragraphs (1) through (12) as paragraphs 
        (3) through (14), and paragraphs (14) through (23) as 
        paragraphs (15) through (24), respectively;
          (2) by inserting after ``In this title:'' the 
        following new paragraphs:
          ``(1) Accrued expenditures.--The term `accrued 
        expenditures' means charges incurred by recipients of 
        funds under this title for a given period requiring the 
        provision of funds for goods or other tangible property 
        received; services performed by employees, contractors, 
        subgrantees, subcontractors, and other payees; and 
        other amounts becoming owed under programs assisted 
        under this title for which no current services or 
        performance is required, such as annuities, insurance 
        claims, and other benefit payments.
          ``(2) Administrative costs.--The term `administrative 
        costs' means expenditures incurred by State and local 
        workforce investment boards, direct recipients 
        (including State grant recipients under subtitle B and 
        recipients of awards under subtitle D), local grant 
        recipients, local fiscal agents or local grant 
        subrecipients, and one-stop operators in the 
        performance of administrative functions and in carrying 
        out activities under this title which are not related 
        to the direct provision of workforce investment 
        services (including services to participants and 
        employers). Such costs include both personnel and non-
        personnel and both direct and indirect.'';
          (3) in paragraph (6) (as so redesignated), by 
        inserting ``(or such other level as the Governor may 
        establish)'' after ``8th grade level'';
          (4) in paragraph (10)(C) (as so redesignated), by 
        striking ``not less than 50 percent of the cost of the 
        training'' and inserting ``a significant portion of the 
        cost of training, as determined by the local board (or, 
        in the case of an employer in multiple local areas in 
        the State, as determined by the Governor), taking into 
        account the size of the employer and such other factors 
        as the local board determines to be appropriate''; and
          (5) in paragraph (11) (as so redesignated)--
                  (A) in subparagraph (A)(ii)(II), by striking 
                ``section 134(c)'' and inserting ``section 
                121(e)'';
                  (B) in subparagraph (B)(iii), by striking 
                ``intensive services described in section 
                134(d)(3)'' and inserting ``work ready services 
                described in section 134(c)(3)(M) through 
                (U)'';
                  (C) in subparagraph (C), by striking ``or'' 
                after the semicolon;
                  (D) in subparagraph (D), by striking the 
                period and inserting ``; or''; and
                  (E) by adding at the end the following:
                  ``(E)(i) is the spouse of a member of the 
                Armed Forces on active duty for a period of 
                more than 30 days (as defined in section 
                101(d)(2) of title 10, United States Code) who 
                has experienced a loss of employment as a 
                direct result of relocation to accommodate a 
                permanent change in duty station of such 
                member; or
                  ``(ii) is the spouse of a member of the Armed 
                Forces on active duty who meets the criteria 
                described in paragraph (12)(B).'';
          (6) in paragraph (12)(A) (as redesignated)--
                  (A) by striking ``and'' after the semicolon 
                and inserting ``or'';
                  (B) by striking ``(A)'' and inserting 
                ``(A)(i)''; and
                  (C) by adding at the end the following:
                  ``(ii) is the dependent spouse of a member of 
                the Armed Forces on active duty for a period of 
                more than 30 days (as defined in section 
                101(d)(2) of title 10, United States Code) 
                whose family income is significantly reduced 
                because of a deployment (as defined in section 
                991(b) of title 10, United States Code, or 
                pursuant to paragraph (4) of such section), a 
                call or order to active duty pursuant to a 
                provision of law referred to in section 
                101(a)(13)(B) of title 10, United States Code, 
                a permanent change of station, or the service-
                connected (as defined in section 101(16) of 
                title 38, United States Code) death or 
                disability of the member; and'';
          (7) in paragraph (13) (as so redesignated), by 
        inserting ``or regional'' after ``local'' each place it 
        appears;
          (8) in paragraph (14) (as so redesignated)--
                  (A) in subparagraph (A), by striking 
                ``section 122(e)(3)'' and inserting ``section 
                122''; and
                  (B) by striking subparagraph (B), and 
                inserting the following:
                  ``(B) work ready services, means a provider 
                who is identified or awarded a contract as 
                described in section 134(c)(3);''.
          (9) in paragraph (25)--
                  (A) in subparagraph (B), by striking ``higher 
                of--'' and all that follows through clause (ii) 
                and inserting ``poverty line for an equivalent 
                period;''; and
                  (B) by redesignating subparagraphs (D) 
                through (F) as subparagraphs (E) through (G), 
                respectively, and inserting after subparagraph 
                (C) the following:
                  ``(D) receives or is eligible to receive free 
                or reduced price lunch under the Richard B. 
                Russell National School Lunch Act (42 U.S.C. 
                1751 et seq.);'';
          (10) in paragraph (32) by striking ``the Republic of 
        the Marshall Islands, the Federated States of 
        Micronesia,''; and
          (11) by striking paragraph (33) and redesignating 
        paragraphs (34) through (53) as paragraphs (33) through 
        (52), respectively.

SEC. 412. PURPOSE.

  Section 106 (29 U.S.C. 2811) is amended by inserting at the 
end the following: ``It is also the purpose of this subtitle to 
provide workforce investment activities in a manner that 
promotes the informed choice of participants and actively 
involves participants in obtaining training services that will 
increase their skills and improve their employment outcomes.''.

SEC. 413. STATE WORKFORCE INVESTMENT BOARDS.

  (a) Membership.--
          (1) In general.--Section 111(b) (29 U.S.C. 2821(b)) 
        is amended--
                  (A) by amending paragraph (1)(C) to read as 
                follows:
                  ``(C) representatives appointed by the 
                Governor, who are--
                          ``(i)(I) the lead State agency 
                        officials with responsibility for the 
                        programs and activities that are 
                        described in section 121(b) and carried 
                        out by one-stop partners;
                          ``(II) in any case in which no lead 
                        State agency official has 
                        responsibility for such a program or 
                        activity, a representative in the State 
                        with expertise relating to such program 
                        or activity; and
                          ``(III) if not included under 
                        subclause (I), the director of the 
                        State unit, defined in section 7(8)(B) 
                        of the Rehabilitation Act of 1973 (29 
                        U.S.C. 705(8)(B)) except that in a 
                        State that has established 2 or more 
                        designated State units to administer 
                        the vocational rehabilitation program, 
                        the board representative shall be the 
                        director of the designated State unit 
                        that serves the most individuals with 
                        disabilities in the State;
                          ``(ii) the State agency officials 
                        responsible for economic development;
                          ``(iii) representatives of business 
                        in the State who--
                                  ``(I) are owners of 
                                businesses, chief executive or 
                                operating officers of 
                                businesses, and other business 
                                executives or employers with 
                                optimum policy making or hiring 
                                authority, including members of 
                                local boards described in 
                                section 117(b)(2)(A)(i);
                                  ``(II) represent businesses 
                                with employment opportunities 
                                that reflect employment 
                                opportunities in the State; and
                                  ``(III) are appointed from 
                                among individuals nominated by 
                                State business organizations 
                                and business trade 
                                associations;
                          ``(iv) chief elected officials 
                        (representing both cities and counties, 
                        where appropriate);
                          ``(v) one or more representatives of 
                        labor organizations, who have been 
                        nominated by State labor federations or 
                        labor organizations within the State; 
                        and
                          ``(vi) such other representatives and 
                        State agency officials as the Governor 
                        may designate.''; and
                  (B) in paragraph (3), by striking ``paragraph 
                (1)(C)(i)'' and inserting ``paragraph 
                (1)(C)(iii)''.
          (2) Conforming amendment.--Section 111(c) (29 U.S.C. 
        2811(c)) is amended by striking ``subsection 
        (b)(1)(C)(i)'' and inserting ``subsection 
        (b)(1)(C)(iii)''.
  (b) Functions.--Section 111(d) (29 U.S.C. 2811(d)) is 
amended--
          (1) in paragraph (2), by striking ``section 134(c)'' 
        and inserting ``section 121(e)'';
          (2) by amending paragraph (3) to read as follows:
          ``(3) development and review of statewide policies 
        affecting the integrated provision of services through 
        the one-stop delivery system described in section 121 
        within the State, including--
                  ``(A) the development of objective criteria 
                and procedures for, and the issuance of, 
                certifications of one-stop centers;
                  ``(B) the criteria for the allocation of one-
                stop center infrastructure funding under 
                section 121(h), and oversight of the use of 
                such funds;
                  ``(C) policies relating to the appropriate 
                roles and contributions of one-stop partner 
                programs within the one-stop delivery system, 
                including approaches to facilitating equitable 
                and efficient cost allocation in the one-stop 
                delivery system, consistent with section 121;
                  ``(D) strategies for providing effective 
                outreach to individuals and employers who could 
                benefit from services provided through the one-
                stop delivery system; and
                  ``(E) strategies for technology improvements 
                to facilitate access to services provided 
                through the one-stop delivery system, in remote 
                areas, and for individuals with disabilities, 
                which may be utilized throughout the State;
                  ``(F) identification and dissemination of 
                information on best practices for effective 
                operation of one-stop centers, including use of 
                innovative business outreach, partnerships, and 
                service delivery strategies, including for 
                hard-to-serve populations; and
                  ``(G) carrying out of such other matters as 
                may promote statewide objectives for, and 
                enhance the performance of, the one-stop 
                delivery system;'';
          (3) in paragraph (4), by inserting ``and the 
        development of State criteria relating to the 
        appointment and certification of local boards under 
        section 117'' after ``section 116'';
          (4) in paragraph (5), by striking ``128(b)(3)(B) and 
        133(b)(3)(B)'' and inserting ``sections 128(b)(3) and 
        133(b)(3)''; and
          (5) in paragraph (8)--
                  (A) by striking ``employment statistics 
                system'' and inserting ``workforce and labor 
                market information system''; and
                  (B) by striking ``and'' after the semicolon;
          (6) in paragraph (9)--
                  (A) by striking ``section 503'' and inserting 
                ``section 136(i)''; and
                  (B) by striking the period and inserting ``; 
                and''; and
          (7) by inserting the following new paragraph after 
        paragraph (9):
          ``(10) reviewing and providing comment on the State 
        plans of all one-stop partner programs, where 
        applicable, in order to provide effective strategic 
        leadership in the development of a high-quality, 
        comprehensive statewide workforce investment system.''.
  (c) Elimination of Alternative Entity and Provision of 
Authority To Hire Staff.--Section 111(e) (29 U.S.C. 2821(e)) is 
amended to read as follows:
  ``(e) Authority To Hire Staff.--The State board may hire 
staff to assist in carrying out the functions described in 
subsection (d).''.
  (d) Conflict of Interest.--Section 111(f)(1) (29 U.S.C. 
2821(f)(1)) is amended by inserting ``or participate in action 
taken'' after ``vote''.
  (e) Sunshine Provision.--Section 111(g) (29 U.S.C. 2821(g)) 
is amended--
          (1) by inserting ``, and modifications to the State 
        plan,'' after ``State plan'' ; and
          (2) by inserting ``, and modifications to the State 
        plan'' after ``the plan''.

SEC. 414. STATE PLAN.

  (a) Planning Cycle.--Section 112(a) (29 U.S.C. 2822(a)) is 
amended by striking ``5-year strategy'' and inserting ``2-year 
strategy''.
  (b) Contents.--Section 112(b) (29 U.S.C. 2822(b)) is 
amended--
          (1) by amending paragraph (7) to read as follows:
          ``(7) a description of the State criteria for 
        determining the eligibility of training providers in 
        accordance with section 122, including how the State 
        will take into account the performance of providers and 
        whether the training programs relate to occupations 
        that are in demand;'';
          (2) in paragraph (8)--
                  (A) in subparagraph (A)--
                          (i) in clause (ix), by striking 
                        ``and'' after the semicolon;
                          (ii) by adding the following new 
                        clause after clause (x):
                          ``(xi) programs authorized under 
                        title II of the Social Security Act (42 
                        U.S.C. 401 et seq.) (related to Federal 
                        old-age, survivors, and disability 
                        insurance benefits), title XVI of such 
                        Act (42 U.S.C. 1381 et seq.) (relating 
                        to supplemental security income), title 
                        XIX of such Act (42 U.S.C. 1396 et 
                        seq.) (relating to Medicaid), and title 
                        XX of such Act (42 U.S.C. 1397 et seq.) 
                        (relating to block grants to States for 
                        social services), programs authorized 
                        under title VII of the Rehabilitation 
                        Act of 1973 (29 U.S.C. 796 et seq.), 
                        and programs carried out by State 
                        agencies relating to mental retardation 
                        and developmental disabilities; and'';
                  (B) by amending subparagraph (B) to read as 
                follows:
                  ``(B) a description of common data collection 
                and reporting processes used for the programs 
                and activities described in subparagraph (A) 
                that are one-stop partners, including 
                assurances that such processes utilize 
                quarterly wage records for performance measures 
                relating to entry into employment, retention in 
                employment, and average earnings that are 
                applicable to such programs or activities, or, 
                if such records are not being used, an 
                identification of the barriers to such use and 
                a description of how the State will address 
                such barriers within one year of the approval 
                of the plan;''; and
          (3) in paragraph (11), by inserting ``, including 
        controls and procedures to ensure that the limitations 
        on the costs of administration are not exceeded''.
          (4) in paragraph (12)(A), by striking ``sections 
        128(b)(3)(B) and 133(b)(3)(B)'' and inserting 
        ``sections 128(b)(3) and 133(b)(3)'';
          (5) in paragraph (14), by striking ``section 134(c)'' 
        and inserting ``section 121(e)'';
          (6) in paragraph (17)(A)--
                  (A) in clause (iii) by striking ``and'';
                  (B) by amending clause (iv) to read as 
                follows:
                          ``(iv) how the State will serve the 
                        employment and training needs of 
                        dislocated workers (including displaced 
                        homemakers), low income individuals 
                        (including recipients of public 
                        assistance), individuals with limited 
                        English proficiency, homeless 
                        individuals, individuals training for 
                        nontraditional employment, and other 
                        individuals with multiple barriers to 
                        employment (including older 
                        individuals); and''; and
                  (C) by inserting after clause (iv) the 
                following:
                          ``(v) how the State will serve the 
                        employment and training needs of 
                        individuals with disabilities, 
                        consistent with section 188 and 
                        Executive Order 13217 (42 U.S.C. 12131 
                        note; relating to community-based 
                        alternatives for individuals with 
                        disabilities) including the provision 
                        of outreach, intake, assessments, and 
                        service delivery, the development of 
                        performance measures established under 
                        section 136, the training of staff, and 
                        other aspects of accessibility to 
                        program services, consistent with 
                        sections 504 and 508 of the 
                        Rehabilitation Act of 1973; and'';
          (7) in paragraph (17)(B), by striking ``to the extent 
        practicable'' and inserting ``in accordance with the 
        requirements of the Jobs for Veterans Act (PL 107-
        288)'';
          (8) in paragraph (18)(D), by striking ``youth 
        opportunity grants'' and inserting ``youth challenge 
        grants''; and
          (9) by adding at the end the following new 
        paragraphs:
          ``(19) a description of the process and methodology 
        for determining one-stop partner program contributions 
        for the cost of the infrastructure of one-stop centers 
        under section 121(h)(1) and of the formula for 
        allocating such infrastructure funds to local areas 
        under section 121(h)(3);
          ``(20) a description of the strategies and programs 
        providing outreach to businesses, identifying workforce 
        needs of businesses in the State, and ensuring that 
        such needs will be met (including the needs of small 
        businesses), which may include--
                  ``(A) implementing innovative programs and 
                strategies designed to meet the needs of all 
                businesses in the State, including small 
                businesses, which may include incumbent worker 
                training programs, sectoral and industry 
                cluster strategies, regional skills alliances, 
                career ladder programs, utilization of 
                effective business intermediaries, and other 
                business services and strategies that better 
                engage employers in workforce investment 
                activities and make the statewide workforce 
                investment system more relevant to the needs of 
                State and local businesses, consistent with the 
                objectives of this title; and
                  ``(B) providing incentives and technical 
                assistance to assist local areas in more fully 
                engaging all employers, including small 
                employers, in local workforce investment 
                activities, to make the workforce investment 
                system more relevant to the needs of area 
                businesses, and to better coordinate workforce 
                investment, economic development, and 
                postsecondary education and training efforts to 
                contribute to the economic well-being of the 
                local area and region, as determined 
                appropriate by the local board;
          ``(21) a description of how the State will utilize 
        technology to facilitate access to services in remote 
        areas which may be utilized throughout the State;
          ``(22) a description of the State strategy and 
        assistance to be provided for encouraging regional 
        cooperation within the State and across State borders 
        as appropriate; and
          ``(23) a description of the actions that will be 
        taken by the State to foster communication and 
        partnerships with non-profit organizations (including 
        community, faith-based, and philanthropic 
        organizations) that provide employment-related, 
        training, and complementary services, in order to 
        enhance the quality and comprehensiveness of services 
        available to participants under this title.''.
  (c) Modification to Plan.--Section 112(d) (29 U.S.C. 2822(d)) 
is amended by striking ``5-year period'' and inserting ``2-year 
period''.

SEC. 415. LOCAL WORKFORCE INVESTMENT AREAS.

  (a) Designation of Areas.--
          (1) Considerations.--Section 116(a)(1)(B) (29 U.S.C. 
        2831(a)(1)(B)) is amended by adding at the end the 
        following clause:
                          ``(vi) The extent to which such local 
                        areas will promote efficiency in the 
                        administration and provision of 
                        services.''.
          (2) Automatic designation.--Section 116(a)(2) (29 
        U.S.C. 2831(a)(2)) is amended to read as follows:
          ``(2) Automatic designation.--
                  ``(A) In general.--Except as provided in 
                subparagraph (B) of this paragraph and 
                subsection (b), the Governor shall approve a 
                request for designation as a local area from--
                          ``(i) any unit of general local 
                        government with a population of 500,000 
                        or more; and
                          ``(ii) an area served by a rural 
                        concentrated employment program grant 
                        recipient that served as a service 
                        delivery area or substate area under 
                        the Job Training Partnership Act (29 
                        U.S.C. 1501 et seq.),
                for the 2-year period covered by a State plan 
                under section 112 if such request is made not 
                later than the date of the submission of the 
                State plan.
                  ``(B) Continued designation based on 
                performance.--The Governor may deny a request 
                for designation submitted pursuant to 
                subparagraph (A) if such unit of government was 
                designated as a local area for the preceding 2-
                year period covered by a State plan and the 
                Governor determines that such local area did 
                not perform successfully during such period.''.
  (b) Single Local Area States.--Section 116(b) (29 U.S.C. 
2831(b)) is amended to read as follows:
  ``(b) Single Local Area States.--
          ``(1) Continuation of previous designation.--
        Notwithstanding subsection (a), the Governor of any 
        State that was a single local area for purposes of this 
        title as of July 1, 2007, may continue to designate the 
        State as a single local area for purposes of this title 
        if the Governor identifies the State as a local area in 
        the State plan under section 112(b)(5).
          ``(2) New designation.--The Governor of a State not 
        described in paragraph (1) may designate the State as a 
        single local area if, prior to the submission of the 
        State plan or modification to such plan so designating 
        the State, no local area meeting the requirements for 
        automatic designation under subsection (a) requests 
        such designation as a separate local area.
          ``(3) Effect on local plan.--In any case in which the 
        local area is the State pursuant to this subsection, 
        the local plan under section 118 shall be submitted to 
        the Secretary for approval as part of the State plan 
        under section 112.''.
  (c) Regional Planning.--Section 116(c)(1) (29 U.S.C. 
2831(c)(1)) is amended by adding at the end the following: 
``The State may require the local boards for the designated 
region to prepare a single regional plan that incorporates the 
elements of the local plan under section 118 and that is 
submitted and approved in lieu of separate local plans under 
such section.''.

SEC. 416. LOCAL WORKFORCE INVESTMENT BOARDS.

  (a) Composition.--Section 117(b)(2) (29 U.S.C. 2832(b)(2)) is 
amended--
          (1) in subparagraph (A)--
                  (A) in clause (i)(II), by inserting ``, 
                businesses that are in the leading industries 
                in the local area, and large and small 
                businesses in the local area'' after ``local 
                area'';
                  (B) by amending clause (ii) to read as 
                follows:
                          ``(ii) a superintendent of the local 
                        secondary school system and the 
                        president or chief executive officer of 
                        a postsecondary educational institution 
                        serving the local area (including 
                        community colleges, where such entities 
                        exist);'';
                  (C) in clause (iii)--
                          (i) by striking ``representatives'' 
                        and inserting ``one or more 
                        representatives''; and
                          (ii) by inserting ``or by labor 
                        organizations in the local area'' after 
                        ``federations'';
                  (D) in clause (iv)--
                          (i) by striking ``representatives'' 
                        and inserting ``one or more 
                        representatives''; and
                          (ii) by striking the semicolon and 
                        inserting ``and faith-based 
                        organizations; and'';
                  (E) in clause (v) by inserting ``one or 
                more'' before ``representatives''; and
                  (F) by striking clause (vi); and
          (2) in subparagraph (B), by striking the period and 
        inserting ``; and''; and
          (3) by adding at the end the following subparagraph:
                  ``(C) except for the individuals described in 
                subparagraph(A)(ii), shall not include any 
                individual who is employed by an entity 
                receiving funds for the provision of services 
                under chapters 4 or 5.''.
  (b) Authority of Board Members.--Section 117(b)(3) (29 U.S.C. 
2832(b) is amended--
          (1) in the heading, by inserting ``AND 
        REPRESENTATION'' after ``MEMBERS''; and
          (2) by adding at the end the following: ``The members 
        of the board shall represent diverse geographic 
        sections within the local area.''.
  (c) Functions.--Section 117(d) (29 U.S.C. 2832(d)) is 
amended--
          (1) in paragraph (2)(B), by striking ``by awarding 
        grants'' and all that follows through ``youth 
        council'';
          (2) by striking paragraph (2)(D) and inserting the 
        following:
                  ``(D) Identification of eligible providers of 
                work ready services.--If the one-stop operator 
                does not provide the work ready services 
                described in section 134(c)(3)(M) through (U) 
                in the local area, the local board shall 
                identify eligible providers of such services in 
                the local area by awarding contracts.'';
          (3) in paragraph (3)(B) by striking clause (ii) and 
        inserting the following:
                          ``(ii) Staff.--The local board may 
                        employ staff to assist in carrying out 
                        the functions described in this 
                        subsection.'';
          (4) in paragraph (4) by inserting ``, and ensure the 
        appropriate use and management of the funds provided 
        under this title for such programs, activities, and 
        system'' after ``area'';
          (5) in paragraph (6)--
                  (A) by striking ``employment statistics 
                system'' and inserting ``workforce and labor 
                market information system''; and
                  (B) by striking ``employment statistics 
                system'' and inserting ``workforce and labor 
                market information system'';
          (6) by amending paragraph (8) to read as follows:
          ``(8) Convening, brokering, and leveraging.--The 
        local board shall support a comprehensive workforce 
        investment system for the local area and promote the 
        participation by private sector employers, service 
        providers, and other stakeholders in such system. The 
        Board shall ensure the effective provision, through the 
        system, of convening, brokering, and leveraging 
        activities, through intermediaries such as the one-stop 
        operator in the local area or through other 
        organizations, to assist such employers in meeting 
        hiring needs. Such activities may include--
                  ``(A) convening private sector employers, 
                including small employers, labor, economic 
                development, and education leaders in the area 
                to align system missions and services, and to 
                identify and meet the employment, education, 
                and skills training needs of the local area in 
                support of regional and local economic growth 
                strategies;
                  ``(B) providing leadership in the design and 
                implementation of a comprehensive workforce 
                development system that extends beyond those 
                programs authorized under title I of this Act 
                (including programs identified in section 
                121(b)) for the local area;
                  ``(C) brokering relationships and service 
                arrangements across system stakeholders and 
                partners; and
                  ``(D) leveraging resources other than those 
                provided under title I of this Act, including 
                public and private resources, to significantly 
                expand resources available for employment and 
                training activities identified as necessary in 
                the local area.'';
          (7) by adding at the end the following:
          ``(9) Technology improvements.--The local board shall 
        develop strategies for technology improvements to 
        facilitate access to services, in remote areas, for 
        services authorized under this subtitle and carried out 
        in the local area.''.
  (d) Limitations.--Section 117(f) (29 U.S.C. 2832(f)) is 
amended by striking paragraph (2) and inserting the following:
          ``(2) Work ready services, designation, or 
        certification as one-stop operators.--A local board may 
        provide work ready services described in section 
        (c)(d)(2) through a one-stop delivery system described 
        in section 121 or be designated or certified as a one-
        stop operator only with the agreement of the chief 
        elected official and the Governor.''.
  (e) Conflict of Interest.--Section 117(g)(1) (29 U.S.C. 
2832(g)(1)) is amended by inserting ``or participate in action 
taken'' after ``vote''.
  (f) Authority To Establish Councils and Elimination of 
Requirement for Youth Councils.--Section 117(h) (29 U.S.C. 
2832(h)) is amended to read as follows:
  ``(h) Establishment of Councils.--The local board may 
establish councils to provide information and advice to assist 
the local board in carrying out activities under this title. 
Such councils may include a council composed of one-stop 
partners to advise the local board on the operation of the one-
stop delivery system, a youth council composed of experts and 
stakeholders in youth programs to advise the local board on 
activities for youth, and such other councils as the local 
board determines are appropriate.''.
  (g) Repeal of Alternative Entity Provision.--Section 117 (29 
U.S.C. 2832) is further amended by striking subsection (i).

SEC. 417. LOCAL PLAN.

  (a) Planning Cycle.--Section 118(a) (29 U.S.C. 2833(a)) is 
amended by striking ``5-year'' and inserting ``2-year''.
  (b) Contents.--Section 118(b) (29 U.S.C. 2833(b)) is 
amended--
          (1) by amending paragraph (2) to read as follows:
          ``(2) a description of the one-stop delivery system 
        to be established or designated in the local area, 
        including 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 participants;'';
          (2) in paragraph (4)--
                  (A) by striking ``and dislocated worker''; 
                and
                  (B) by inserting before the semicolon ``, 
                including a description of how the local area 
                will implement the requirements of section 
                134(c)(4)(G) relating to ensuring that training 
                services are linked to occupations that are in 
                demand'';
          (3) in paragraph (5), by striking ``statewide rapid 
        response activities'' and inserting ``statewide 
        activities'';
          (4) in paragraph (9), by striking ``; and'' and 
        inserting a semicolon; and
          (5) by redesignating paragraph (10) as paragraph (13) 
        and inserting after paragraph (9) the following:
          ``(10) a description of the strategies and services 
        that will be initiated in the local area to more fully 
        engage all employers, including small employers, in 
        workforce investment activities, to make the workforce 
        investment system more relevant to the needs of area 
        businesses, and to better coordinate workforce 
        investment and economic development efforts, which may 
        include the implementation of innovative initiatives 
        such as incumbent worker training programs, sectoral 
        and industry cluster strategies, regional skills 
        alliance initiatives, career ladder programs, 
        utilization of effective business intermediaries, and 
        other business services and strategies designed to meet 
        the needs of area employers and contribute to the 
        economic well-being of the local area, as determined 
        appropriate by the local board, consistent with the 
        objectives of this title;
          ``(11) a description of how the local board will 
        facilitate access to services provided through the one-
        stop delivery system involved in remote areas, 
        including facilitating access through the use of 
        technology;
          ``(12) how the local area will serve the employment 
        and training needs of individuals with disabilities, 
        consistent with section 188 and Executive Order 13217 
        (42 U.S.C. 12131 note) including the provision of 
        outreach, intake, assessments, and service delivery, 
        the development of performance measures, the training 
        of staff, and other aspects of accessibility to program 
        services, consistent with sections 504 and 508 of the 
        Rehabilitation Act of 1973; and''.

SEC. 418. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEMS.

  (a) One-Stop Partners.--
          (1) Required partners.--Section 121(b)(1) (29 U.S.C. 
        2841(b)(1)) is amended--
                  (A) by striking subparagraph (A) and 
                inserting the following:
                  ``(A) Roles and responsibilities of one-stop 
                partners.--Each entity that carries out a 
                program or activities described in subparagraph 
                (B) shall--
                          ``(i) provide access through the one-
                        stop delivery system to the programs 
                        and activities carried out by the 
                        entity, including making the work ready 
                        services described in section 134(d)(2) 
                        that are applicable to the program of 
                        the entity available at the one-stop 
                        centers (in addition to any other 
                        appropriate locations);
                          ``(ii) use a portion of the funds 
                        available to the program of the entity 
                        to maintain the one-stop delivery 
                        system, including payment of the 
                        infrastructure costs of one-stop 
                        centers in accordance with subsection 
                        (h);
                          ``(iii) enter into a local memorandum 
                        of understanding with the local board 
                        relating to the operation of the one-
                        stop system that meets the requirements 
                        of subsection (c);
                          ``(iv) participate in the operation 
                        of the one-stop system consistent with 
                        the terms of the memorandum of 
                        understanding, the requirements of this 
                        title, and the requirements of the 
                        Federal laws authorizing the programs 
                        carried out by the entity; and
                          ``(v) provide representation on the 
                        State board to the extent provided 
                        under section 111.'';
                  (B) in subparagraph (B)--
                          (i) by striking clauses (ii) and (v);
                          (ii) by redesignating clauses (iii) 
                        and (iv) as clauses (ii) and (iii), 
                        respectively, and by redesignating 
                        clauses (vi) through (xii) as clauses 
                        (iv) through (x), respectively;
                          (iii) in clause (ix) (as so 
                        redesignated), by striking ``and'' at 
                        the end;
                          (iv) in clause (x) (as so 
                        redesignated), by striking the period 
                        and inserting ``; and''; and
                          (v) by inserting after clause (x)(as 
                        so redesignated) the following:
                          ``(xi) programs authorized under part 
                        A of title IV of the Social Security 
                        Act (42 U.S.C. 601 et seq.), subject to 
                        subparagraph (C); and
                          ``(xii) programs authorized under 
                        section 6(d)(4) of the Food Stamp Act 
                        of 1977 (7 U.S.C. 2015(d)(4)), subject 
                        to subparagraph (C).''; and
                  (C) by adding after subparagraph (B) the 
                following:
                  ``(C) Determination by the governor.--The 
                program referred to in clauses (xi) and (xii) 
                of subparagraph (B) shall be included as a 
                required partner for purposes of this title in 
                a State unless the Governor of the State 
                notifies the Secretary and the Secretary of 
                Health and Human Services (in the case of the 
                program referred to in clause (xi) of 
                subparagraph (B)), or the Secretary and the 
                Secretary of Agriculture (in the case of the 
                program referred to in clause (xii) of 
                subparagraph (B)) in writing of a determination 
                by the Governor not to include such programs as 
                required partners for purposes of this title in 
                the State.''.
          (2) Additional partners.--Section 121(b)(2)(B) (29 
        U.S.C. 2841(b)(2)(B)) is amended to read as follows:
                  ``(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 program (established by 
                        Public Law 106-170);
                          ``(ii) employment and training 
                        programs carried out by the Small 
                        Business Administration;
                          ``(iii) programs under part D of 
                        title IV of the Social Security Act (42 
                        U.S.C. 451 et seq.) (relating to child 
                        support enforcement);
                          ``(iv) employment, training, and 
                        literacy services carried out by public 
                        libraries;
                          ``(v) programs carried out in the 
                        local area for individuals with 
                        disabilities, including programs 
                        carried out by State agencies relating 
                        to mental health, mental retardation, 
                        and developmental disabilities, State 
                        Medicaid agencies, State Independent 
                        Living Councils, and Independent Living 
                        Centers;
                          ``(vi) programs authorized under the 
                        National and Community Service Act of 
                        1990 (42 U.S.C. 1250 et seq.);
                          ``(vii) cooperative extension 
                        programs carried out by the Department 
                        of Agriculture; and
                          ``(viii) other appropriate Federal, 
                        State, or local programs, including 
                        programs in the private sector.''.
  (b) Local Memorandum of Understanding.--Section 121(c)(2)(A) 
(29 U.S.C. 2841(c)(2)(A)) is amended to read as follows:
                  ``(A) provisions describing--
                          ``(i) the services to be provided 
                        through the one-stop delivery system 
                        consistent with the requirements of 
                        this section, including the manner in 
                        which the services will be coordinated 
                        through such system;
                          ``(ii) how the costs of such services 
                        and the operating costs of such system 
                        will be funded, through cash and in-
                        kind contributions, to provide a stable 
                        and equitable funding stream for 
                        ongoing one-stop system operations, 
                        including the funding of the 
                        infrastructure costs of one-stop 
                        centers in accordance with subsection 
                        (h);
                          ``(iii) methods of referral of 
                        individuals between the one-stop 
                        operator and the one-stop partners for 
                        appropriate services and activities; 
                        and
                          ``(iv) the duration of the memorandum 
                        of understanding and the procedures for 
                        amending the memorandum during the term 
                        of the memorandum, and assurances that 
                        such memorandum shall be reviewed not 
                        less than once every 2-year period to 
                        ensure appropriate funding and delivery 
                        of services; and''.
  (c) Provision of Services.--Subtitle B of title I is 
amended--
          (1) in section 121(d)(2), by striking ``section 
        134(c)'' and inserting ``subsection (e)'';
          (2) by striking subsection (e) of section 121;
          (3) by moving subsection (c) of section 134 from 
        section 134, redesignating such subsection as 
        subsection (e), and inserting such subsection (as so 
        redesignated) after subsection (d) of section 121; and
          (4) by amending subsection (e) of section 121 (as 
        moved and redesignated by paragraph (3))--
                  (A) in paragraph (1)(A), by striking ``core 
                services described in subsection (d)(2)'' and 
                inserting ``work ready services described in 
                section 134(c)(2)'';
                  (B) in paragraph (1)(B)--
                          (i) by striking ``intensive 
                        services'';
                          (ii) by striking ``paragraphs (3) and 
                        (4) of subsection (d)'' and inserting 
                        ``section 134(c)(4)'';
                          (iii) by striking ``individual 
                        training accounts'' and inserting 
                        ``career enhancement accounts''; and
                          (iv) by striking ``subsection 
                        (d)(4)(G)'' and inserting ``section 
                        134(c)(4)(G)'';
                  (C) in paragraph (1)(C), by striking 
                ``subsection (e)'' and inserting ``section 
                134(d)'';
                  (D) in paragraph (1)(D), by striking 
                ``section 121(b)'' and inserting ``subsection 
                (b)'';
                  (E) by amending paragraph (1)(E) to read as 
                follows:
                  ``(E) shall provide access to the information 
                described in section 15(e) of the Wagner-Peyser 
                Act (29 U.S.C. 49l-2(e)).''; and
                  (F) in paragraph (2)(B)(ii)(II), by striking 
                ``core services'' and inserting ``work ready 
                services''.
  (d) Certification and Funding of One-Stop Centers.--Section 
121 (as amended by subsections (b) and (c)) is further amended 
by adding at the end the following new subsections:
  ``(g) Certification of One-Stop Centers.--
          ``(1) In general.--
                  ``(A) In general.--The State board shall 
                establish objective procedures and criteria for 
                periodically certifying one-stop centers for 
                the purpose of awarding the one-stop 
                infrastructure funding described in subsection 
                (h).
                  ``(B) Criteria.--The criteria for 
                certification under this subsection shall 
                include minimum standards relating to the scope 
                and degree of service integration achieved by 
                the centers involving the programs provided by 
                the one-stop partners, and how the centers 
                ensure that such providers meet the employment 
                needs of local employers and participants.
                  ``(C) Effect of certification.--One-stop 
                centers certified under this subsection shall 
                be eligible to receive the infrastructure 
                grants authorized under subsection (h).
          ``(2) Local boards.--Consistent with the criteria 
        developed by the State, the local board may develop 
        additional criteria of higher standards to respond to 
        local labor market and demographic conditions and 
        trends.
  ``(h) One-Stop Infrastructure Funding.--
          ``(1) Partner contributions.--
                  ``(A) Provision of funds.--Notwithstanding 
                any other provision of law, as determined under 
                subparagraph (B), a portion of the Federal 
                funds provided to the State and areas within 
                the State under the Federal laws authorizing 
                the one-stop partner programs described in 
                subsection (b)(1)(B) and participating 
                additional partner programs described in 
                (b)(2)(B) for a fiscal year shall be provided 
                to the Governor by such programs to carry out 
                this subsection.
                  ``(B) Determination of governor.--
                          ``(i) In general.--Subject to 
                        subparagraph (C), the Governor, in 
                        consultation with the State board, 
                        shall determine the portion of funds to 
                        be provided under subparagraph (A) by 
                        each one-stop partner and in making 
                        such determination shall consider the 
                        proportionate use of the one-stop 
                        centers by each partner, the costs of 
                        administration for purposes not related 
                        to one-stop centers for each partner, 
                        and other relevant factors described in 
                        paragraph (3).
                          ``(ii) Special rule.--In those States 
                        where the State constitution places 
                        policy-making authority that is 
                        independent of the authority of the 
                        Governor in an entity or official with 
                        respect to the funds provided for adult 
                        education and literacy activities 
                        authorized under title II of this Act 
                        and for postsecondary career education 
                        activities authorized under the Carl D. 
                        Perkins Career and Technical Education 
                        Act, the determination described in 
                        clause (i) with respect to such 
                        programs shall be made by the Governor 
                        with the appropriate entity or official 
                        with such independent policy-making 
                        authority.
                          ``(iii) Appeal by one-stop 
                        partners.--The Governor shall establish 
                        a procedure for the one-stop partner 
                        administering a program described in 
                        subsection (b) to appeal a 
                        determination regarding the portion of 
                        funds to be contributed under this 
                        paragraph on the basis that such 
                        determination is inconsistent with the 
                        criteria described in the State plan or 
                        with the requirements of this 
                        paragraph. Such procedure shall ensure 
                        prompt resolution of the appeal.
                  ``(C) Limitations.--
                          ``(i) Provision from administrative 
                        funds.--The funds provided under this 
                        paragraph by each one-stop partner 
                        shall be provided only from funds 
                        available for the costs of 
                        administration under the program 
                        administered by such partner, and shall 
                        be subject to the limitations with 
                        respect to the portion of funds under 
                        such programs that may be used for 
                        administration.
                          ``(ii) Federal direct spending 
                        programs.--Programs that are Federal 
                        direct spending under section 250(c)(8) 
                        of the Balanced Budget and Emergency 
                        Deficit Control Act of 1985 (2 U.S.C. 
                        900(c)(8)) shall not, for purposes of 
                        this paragraph, be required to provide 
                        an amount in excess of the amount 
                        determined to be equivalent to the 
                        proportionate use of the one-stop 
                        centers by such programs in the State.
                          ``(iii) Native american programs.--
                        Native American programs established 
                        under section 166 shall not be subject 
                        to the provisions of this subsection. 
                        The method for determining the 
                        appropriate portion of funds to be 
                        provided by such Native American 
                        programs to pay for the costs of 
                        infrastructure of a one-stop center 
                        certified under subsection (g) 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.
          ``(2) Allocation by governor.--From the funds 
        provided under paragraph (1), the Governor shall 
        allocate funds to local areas in accordance with the 
        formula established under paragraph (3) for the 
        purposes of assisting in paying the costs of the 
        infrastructure of One-Stop centers certified under 
        subsection (g).
          ``(3) Allocation formula.--The State board shall 
        develop a formula to be used by the Governor to 
        allocate the funds described in paragraph (1). The 
        formula shall include such factors as the State board 
        determines are appropriate, which may include factors 
        such as the number of centers in the local area that 
        have been certified, the population served by such 
        centers, and the performance of such centers.
          ``(4) Costs of infrastructure.--For purposes of this 
        subsection, the term `costs of infrastructure' means 
        the nonpersonnel costs that are necessary for the 
        general operation of a one-stop center, including the 
        rental costs of the facilities, the costs of utilities 
        and maintenance, and equipment (including adaptive 
        technology for individuals with disabilities).
  ``(i) Other Funds.--
          ``(1) In general.--In addition to the funds provided 
        to carry out subsection (h), a portion of funds made 
        available under Federal law authorizing the one-stop 
        partner programs described in subsection (b)(1)(B) and 
        participating partner programs described in subsection 
        (b)(2)(B), or the noncash resources available under 
        such programs shall be used to pay the costs relating 
        to the operation of the one-stop delivery system that 
        are not paid for from the funds provided under 
        subsection (h), to the extent not inconsistent with the 
        Federal law involved including--
                  ``(A) infrastructure costs that are in excess 
                of the funds provided under subsection (h);
                  ``(B) common costs that are in addition to 
                the costs of infrastructure; and
                  ``(C) the costs of the provision of work 
                ready services applicable to each program.
          ``(2) Determination and guidance.--The method for 
        determining the appropriate portion of funds and 
        noncash resources to be provided by each program under 
        paragraph (1) shall be determined as part of the 
        memorandum of understanding under subsection (c). The 
        State board shall provide guidance to facilitate the 
        determination of appropriate allocation of the funds 
        and noncash resources in local areas.''.

SEC. 419. ELIGIBLE PROVIDERS OF TRAINING SERVICES.

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

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

  ``(a) Eligibility.--
          ``(1) In general.--The Governor, after consultation 
        with the State board, shall establish criteria and 
        procedures regarding the eligibility of providers of 
        training services described in section 134(c)(4) to 
        receive funds provided under section 133(b) for the 
        provision of such training services.
          ``(2) Providers.--Subject to the provisions of this 
        section, to be eligible to receive the funds provided 
        under section 133(b) for the provision of training 
        services, the provider shall be--
                  ``(A) a postsecondary educational institution 
                that--
                          ``(i) is eligible to receive Federal 
                        funds under title IV of the Higher 
                        Education Act of 1965 (20 U.S.C. 1070 
                        et seq.); and
                          ``(ii) provides a program that leads 
                        to an associate degree, baccalaureate 
                        degree, or industry-recognized 
                        certification;
                  ``(B) an entity that carries out programs 
                under the Act of August 16, 1937 (commonly 
                known as the `National Apprenticeship Act'; 50 
                Stat. 664, chapter 663; 29 U.S.C. 50 et seq.); 
                or
                  ``(C) another public or private provider of a 
                program of training services.
          ``(3) Inclusion in list of eligible providers.--A 
        provider described in subparagraph (A) or (C) of 
        paragraph (2) shall comply with the criteria and 
        procedures established under this section to be 
        included on the list of eligible providers of training 
        services described in subsection (d)(1). A provider 
        described in paragraph (2)(B) shall be included on the 
        list of eligible providers of training services 
        described in subsection (d)(1) for so long as the 
        provider remains certified by the Department of Labor 
        to carry out the programs described in paragraph 
        (2)(B).
  ``(b) Criteria.--
          ``(1) In general.--The criteria established pursuant 
        to subsection (a) shall take into account--
                  ``(A) the performance of providers of 
                training services with respect to the 
                performance measures described in section 136 
                and other matters for which information is 
                required under paragraph (2) and other 
                appropriate measures of performance outcomes 
                for those participants receiving training 
                services under this subtitle (taking into 
                consideration the characteristics of the 
                population served and relevant economic 
                conditions);
                  ``(B) whether the training programs of such 
                providers relate to occupations that are in 
                demand,
                  ``(C) the need to ensure access to training 
                services throughout the State, including any 
                rural areas;
                  ``(D) the ability of providers to offer 
                programs that lead to a degree or an industry-
                recognized certification, certificate, or 
                mastery;
                  ``(E) the information such providers are 
                required to report to State agencies with 
                respect to other Federal and State programs 
                (other than the program carried out under this 
                subtitle), including one-stop partner programs; 
                and
                  ``(F) such other factors as the Governor 
                determines are appropriate to ensure the 
                quality of services provided, the 
                accountability of providers, that the one-stop 
                centers will ensure that such providers meet 
                the needs of local employers and participants, 
                and the informed choice of participants under 
                chapter 5.
          ``(2) Information.--The criteria established by the 
        Governor shall require that a provider of training 
        services submit appropriate, accurate, and timely 
        information to the State for purposes of carrying out 
        subsection (d), with respect to participants receiving 
        training services under this subtitle in the applicable 
        program, including--
                  ``(A) information on degrees and industry-
                recognized certifications received by such 
                participants;
                  ``(B) information on costs of attendance for 
                such participants;
                  ``(C) information on the program completion 
                rate for such participants; and
                  ``(D) information on the performance of the 
                provider with respect to the performance 
                measures described in section 136 for such 
                participants (taking into consideration the 
                characteristics of the population served and 
                relevant economic conditions), which may 
                include information specifying the percentage 
                of such participants who entered unsubsidized 
                employment in an occupation related to the 
                program.
          ``(3) Renewal.--The criteria established by the 
        Governor shall also provide for biennial review and 
        renewal of eligibility under this section for providers 
        of training services.
          ``(4) Local criteria.--A local board in the State may 
        establish criteria in addition to the criteria 
        established by the Governor, or may require higher 
        levels of performance than required under the criteria 
        established by the Governor, for purposes of 
        determining the eligibility of providers of training 
        services to receive funds described in subsection (a) 
        to provide the services in the local area involved.
          ``(5) Limitation.--In carrying out the requirements 
        of this subsection, no personally identifiable 
        information regarding a student, including Social 
        Security number, student identification number, or 
        other identifier, may be disclosed without the prior 
        written consent of the parent or eligible student in 
        compliance with section 444 of the General Education 
        Provisions Act (20 U.S.C. 1232g).
  ``(c) Procedures.--The procedures established under 
subsection (a) shall identify the application process for a 
provider of training services to become eligible to receive 
funds under section 133(b) for the provision of training 
services, and identify the respective roles of the State and 
local areas in receiving and reviewing applications and in 
making determinations of eligibility based on the criteria 
established under this section. The procedures shall also 
establish a process for a provider of training services to 
appeal a denial or termination of eligibility under this 
section that includes an opportunity for a hearing and 
prescribes appropriate time limits to ensure prompt resolution 
of the appeal.
  ``(d) Information To Assist Participants in Choosing 
Providers.--In order to facilitate and assist participants 
under chapter 5 in choosing providers of training services, the 
Governor shall ensure that an appropriate list or lists of 
providers determined eligible under this section in the State, 
including information regarding the occupations in demand that 
relate to the training programs of such providers, is provided 
to the local boards in the State to be made available to such 
participants and to members of the public through the one-stop 
delivery system in the State. The accompanying information 
shall consist of information provided by providers described in 
subparagraphs (A) and (C) of subsection (a)(2) in accordance 
with subsection (b) (including information on receipt of 
degrees and industry-recognized certifications, and costs of 
attendance, for participants receiving training services under 
this subtitle in applicable programs) and such other 
information as the Secretary determines is appropriate. The 
list and the accompanying information shall be made available 
to such participants and to members of the public through the 
one-stop delivery system in the State.
  ``(e) Enforcement.--
          ``(1) In general.--The criteria and procedures 
        established under this section shall provide the 
        following:
                  ``(A) Intentionally supplying inaccurate 
                information.--Upon a determination, by an 
                individual or entity specified in the criteria 
                or procedures, that a provider of training 
                services, or individual providing information 
                on behalf of the provider, intentionally 
                supplied inaccurate information under this 
                section, the eligibility of such provider to 
                receive funds under chapter 5 shall be 
                terminated for a period of time that is not 
                less than 2 years.
                  ``(B) Substantial violations.--Upon a 
                determination, by an individual or entity 
                specified in the criteria or procedures, that a 
                provider of training services substantially 
                violated any requirement under this title, the 
                eligibility of such provider to receive funds 
                under the program involved may be terminated, 
                or other appropriate action may be taken.
                  ``(C) Repayment.--A provider of training 
                services whose eligibility is terminated under 
                subparagraph (A) or (B) shall be liable for the 
                repayment of funds received under chapter 5 
                during a period of noncompliance described in 
                such subparagraph.
          ``(2) Construction.--Paragraph (1) shall be construed 
        to provide remedies and penalties that supplement, but 
        do not supplant, other civil and criminal remedies and 
        penalties.
  ``(f) Agreements With Other States.--States may enter into 
agreements, on a reciprocal basis, to permit eligible providers 
of training services to accept career enhancement accounts 
provided in another State.
  ``(g) Recommendations.--In developing the criteria, 
procedures, and information required under this section, the 
Governor shall solicit and take into consideration the 
recommendations of local boards and providers of training 
services within the State.
  ``(h) Opportunity To Submit Comments.--During the development 
of the criteria, procedures, requirements for information, and 
the list of eligible providers required under this section, the 
Governor shall provide an opportunity for interested members of 
the public, including representatives of business and labor 
organizations, to submit comments regarding such criteria, 
procedures, and information.
  ``(i) On-the-Job Training or Customized Training Exception.--
          ``(1) In general.--Providers of on-the-job training 
        or customized training shall not be subject to the 
        requirements of subsections (a) through (g).
          ``(2) Collection and dissemination of information.--A 
        one-stop operator in a local area shall collect such 
        performance information from on-the-job training and 
        customized training providers as the Governor may 
        require, determine whether the providers meet such 
        performance criteria as the Governor may require, and 
        disseminate information identifying providers that meet 
        the criteria as eligible providers, and the performance 
        information, through the one-stop delivery system. 
        Providers determined to meet the criteria shall be 
        considered to be identified as eligible providers of 
        training services.''.

SEC. 420. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.

  (a) Eligible Providers of Youth Activities.--Section 123 (29 
U.S.C. 2843) is amended to read as follows:

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

  ``(a) In General.--From the funds allocated under section 
128(b) to a local area, the local board for such area shall 
award grants or contracts on a competitive basis to providers 
of youth activities identified based on the criteria in the 
State plan 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 
are an insufficient number of eligible providers of training 
services in the local area involved (such as rural areas) for 
grants to be awarded on a competitive basis under subsection 
(a).''.
  (b) Clerical Amendment.--The table of contents in section 
1(b) is amended by amending the item related to section 123 to 
read as follows:

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

SEC. 421. YOUTH ACTIVITIES.

  (a) State Allotments.--Section 127 (29 U.S.C. 2852(a)) is 
amended--
          (1) in subsection (a)(1), by striking ``opportunity'' 
        and inserting ``challenge''; and
          (2) by striking subsection (b) and inserting the 
        following:
  ``(b) Allotment Among States.--
          ``(1) Youth activities.--
                  ``(A) Youth challenge grants.--
                          ``(i) Reservation of funds.--Of the 
                        amount appropriated under section 
                        137(a) for each fiscal year, the 
                        Secretary shall reserve 25 percent to 
                        provide youth challenge grants under 
                        section 169.
                          ``(ii) Limitation.--Notwithstanding 
                        clause (i), if the amount appropriated 
                        under section 137(a) for a fiscal year 
                        exceeds $1,000,000,000, the Secretary 
                        shall reserve $250,000,000 to provide 
                        youth challenge grants under section 
                        169.
                  ``(B) Outlying areas and native americans.--
                          ``(i) In general.--After determining 
                        the amount to be reserved under 
                        subparagraph (A), of the remainder of 
                        the amount appropriated under section 
                        137(a) for each fiscal year the 
                        Secretary shall--
                                  ``(I) reserve not more than 
                                \1/4\ of one percent of such 
                                amount to provide assistance to 
                                the outlying areas to carry out 
                                youth activities and statewide 
                                workforce investment 
                                activities; and
                                  ``(II) reserve not more than 
                                1 and \1/2\ percent of such 
                                amount to provide youth 
                                activities under section 166 
                                (relating to Native Americans).
                          ``(ii) Restriction.--The Republic of 
                        Palau shall cease to be eligible to 
                        receive funding under this subparagraph 
                        upon entering into an agreement for 
                        extension of United States educational 
                        assistance under the Compact of Free 
                        Association (approved by the Compact of 
                        Free Association Amendments Act of 2003 
                        (Public Law 108-188)) after the date of 
                        enactment of the Workforce Investment 
                        Improvement Act of 2007.
                  ``(C) States.--
                          ``(i) In general.--Of the remainder 
                        of the amount appropriated under 
                        section 137(a) for a fiscal year that 
                        is available after determining the 
                        amounts to be reserved under 
                        subparagraphs (A) and (B), the 
                        Secretary shall allot--
                                  ``(I) the amount of the 
                                remainder that is less than or 
                                equal to the total amount that 
                                was allotted to States for 
                                fiscal year 2007 under section 
                                127(b)(1)(C) of this Act (as in 
                                effect on the day before the 
                                date of enactment of the 
                                Workforce Investment 
                                Improvement Act of 2007) in 
                                accordance with the 
                                requirements of such section 
                                127(b)(1)(C); and
                                  ``(II) the amount of the 
                                remainder, if any, in excess of 
                                the amount referred to in 
                                subclause (I) in accordance 
                                with clause (ii).
                          ``(ii) Formulas for excess funds.--
                        Subject to clauses (iii) and (iv), of 
                        the amounts described in clause 
                        (i)(II)--
                                  ``(I) 33\1/3\ percent shall 
                                be allotted on the basis of the 
                                relative number of individuals 
                                in the civilian labor force who 
                                are ages 16 through 19 in each 
                                State, compared to the total 
                                number of individuals in the 
                                civilian labor force who are 
                                ages 16 through 19 in all 
                                States;
                                  ``(II) 33\1/3\ percent shall 
                                be allotted on the basis of the 
                                relative number of unemployed 
                                individuals in each State, 
                                compared to the total number of 
                                unemployed individuals in all 
                                States; and
                                  ``(III) 33\1/3\ percent shall 
                                be allotted on the basis of the 
                                relative number of 
                                disadvantaged youth who are 
                                ages 16 through 21 in each 
                                State, compared to the total 
                                number of disadvantaged youth 
                                who are ages 16 through 21 in 
                                all States.
                          ``(iii) Minimum and maximum 
                        percentages.--The Secretary shall 
                        ensure that no State shall receive an 
                        allotment for a fiscal year that is 
                        less than 90 percent or greater than 
                        130 percent of the allotment percentage 
                        of that State for the preceding fiscal 
                        year.
                          ``(iv) Small state minimum 
                        allotment.--Subject to clause (iii), 
                        the Secretary shall ensure that no 
                        State shall receive an allotment under 
                        this paragraph that is less than \3/10\ 
                        of 1 percent of the amount available 
                        under subparagraph (A).
          ``(2) Definitions.--For the purposes of paragraph 
        (1), the following definitions apply:
                  ``(A) Allotment percentage.--The term 
                `allotment percentage', used with respect to 
                fiscal year 2008 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 this subsection for the 
                fiscal year. The term, with respect to fiscal 
                year 2007, means the percentage of the amounts 
                allotted to States under this chapter (as in 
                effect on the day before the date of enactment 
                of the Workforce Investment Improvement Act of 
                2007) that is received by the State involved 
                for fiscal year 2007.
                  ``(B) Disadvantaged youth.--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 poverty line.
          ``(3) Special rule.--For purposes of the formulas 
        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.'';
          (3) in subsection (c)--
                  (A) by amending paragraph (2) to read as 
                follows:
          ``(2) Amount.--The amount available for reallotment 
        for a program year is equal to the amount by which the 
        unexpended balance at the end of the program year prior 
        to the program year for which the determination is made 
        exceeds 30 percent of the total amount of funds 
        available to the State under this section during such 
        prior program year (including amounts allotted to the 
        State in all prior program years that remained 
        available). For purposes of this paragraph, the 
        expended balance is the amount that is the difference 
        between--
                  ``(A) the total amount of funds available to 
                the State under this section during the program 
                year prior to the program year for which the 
                determination is made (including amounts 
                allotted to the State in all prior program 
                years that remained available); and
                  ``(B) the accrued expenditures during such 
                prior program year.'';
                  (B) in paragraph (3)--
                          (i) by striking ``for the prior 
                        program year'' and inserting ``for the 
                        program year in which the determination 
                        is made''; and
                          (ii) by striking ``such prior program 
                        year'' and inserting ``such program 
                        year'';
                  (C) by amending paragraph (4) to read as 
                follows:
          ``(4) Eligibility.--For purposes of this subsection, 
        an eligible State means a State which does not have an 
        amount available for reallotment under paragraph (2) 
        for the program year for which the determination under 
        paragraph (2) is made.''; and
                  (D) in paragraph (5), by striking 
                ``obligation'' and inserting ``accrued 
                expenditure''.
  (b) Within State Allocations.--
          (1) Reservation for statewide activities.--Section 
        128(a) is amended to read as follows:
  ``(a) Reservation for Statewide Activities.--
          ``(1) In general.--The Governor of a State shall 
        reserve not more than 10 percent of the amount allotted 
        to the State under section 127(a)(1)(C) for a fiscal 
        year for statewide activities.
          ``(2) Use of funds.--Regardless of whether the 
        amounts are allotted under section 127(a)(1)(C) and 
        reserved under paragraph (1) or allotted under section 
        132 and reserved under section 133(a), the Governor may 
        use the reserved amounts to carry out statewide youth 
        activities under section 129(b) or statewide employment 
        and training activities under section 133.''.
          (2) Within state allocations.--Section 128(b) is 
        amended to read as follows:
  ``(b) Within State Allocation.--
          ``(1) In general.--Of the amounts allotted to the 
        State under section 127(a)(1)(C) and not reserved under 
        subsection (a)(1)--
                  ``(A) not less than 80 percent of such 
                amounts shall be allocated by the Governor to 
                local areas in accordance with paragraph (2); 
                and
                  ``(B) not more than 20 percent of such 
                amounts shall be allocated by the Governor to 
                local areas in accordance with paragraph (3).
          ``(2) Established formula.--
                  ``(A) In general.--Of the amounts described 
                in paragraph (1)(A), the Governor shall 
                allocate--
                          ``(i) 33\1/3\ percent shall be 
                        allotted on the basis of the relative 
                        number of individuals in the civilian 
                        labor force who are ages 16 through 19 
                        in each local area, compared to the 
                        total number of individuals in the 
                        civilian labor force who are ages 16 
                        through 19 in all local areas in the 
                        State;
                          ``(ii) 33\1/3\ percent shall be 
                        allotted on the basis of the relative 
                        number of unemployed individuals in 
                        each local area, compared to the total 
                        number of unemployed individuals in all 
                        local areas in the State; and
                          ``(iii) 33\1/3\ percent on the basis 
                        of the relative number of disadvantaged 
                        youth who are ages 16 through 21 in 
                        each local area, compared to the total 
                        number of disadvantaged youth who are 
                        ages 16 through 21 in all local areas 
                        in the State.
                  ``(B) Minimum and maximum percentages.--The 
                Governor shall ensure that no local area shall 
                receive an allocation for a fiscal year under 
                this paragraph that is less than 90 percent or 
                greater than 130 percent of the allocation 
                percentage of the local area for the preceding 
                fiscal year.
                  ``(C) Definitions.--
                          ``(i) Allocation percentage.--For 
                        purposes of this paragraph, the term 
                        `allocation percentage', used with 
                        respect to fiscal year 2008 or a 
                        subsequent fiscal year, means a 
                        percentage of the amount described in 
                        paragraph(1)(A) that is received 
                        through an allocation made under this 
                        paragraph for the fiscal year. The 
                        term, with respect to fiscal year 2007, 
                        means the percentage of the amounts 
                        allocated to local areas under this 
                        chapter (as in effect on the day before 
                        the date of enactment of the Workforce 
                        Investment Improvement Act of 2007) 
                        that is received by the local area 
                        involved for fiscal year 2007.
                          ``(ii) Disadvantaged youth.--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 poverty line.
          ``(3) Youth discretionary allocation.--The Governor 
        shall allocate to local areas the amounts described in 
        paragraph (1)(B) in accordance with such demographic 
        and economic factors as the Governor, after 
        consultation with the State board and local boards, 
        determines are appropriate.
          ``(4) Local administrative cost limit.--
                  ``(A) In general.--Of the amounts allocated 
                to a local area under this subsection for a 
                fiscal year, not more than 10 percent of the 
                amount may be used by the local boards for the 
                administrative costs of carrying out local 
                workforce investment activities under this 
                chapter or chapter 5.
                  ``(B) Use of funds.--Funds made available for 
                administrative costs under subparagraph (A) may 
                be used for the administrative costs of any of 
                the local workforce investment activities 
                described in this chapter or chapter 5, 
                regardless of whether the funds were allocated 
                under this subsection or section 133(b).''.
          (3) Reallocation.--Section 128(c) (29 U.S.C. 2853(c)) 
        is amended--
                  (A) in paragraph (1), by striking ``paragraph 
                (2)(A) or (3) of'';
                  (B) by amending paragraph (2) to read as 
                follows:
          ``(2) Amount.--The amount available for reallocation 
        for a program year is equal to the amount by which the 
        unexpended balance at the end of the program year prior 
        to the program year for which the determination is made 
        exceeds 30 percent of the total amount of funds 
        available to the local area under this section during 
        such prior program year, (including amounts allotted to 
        the local area in prior program years that remain 
        available). For purposes of this paragraph, the 
        unexpended balance is the amount that is the difference 
        between--
                  ``(A) the total amount of funds available to 
                the local area under this section during the 
                program year prior to the program year for 
                which the determination is made (including 
                amounts allocated to the local area in all 
                prior program years that remained available); 
                and
                  ``(B) the accrued expenditures during such 
                prior program year.'';
                  (C) in paragraph (3)--
                          (i) by striking ``subsection (b)(3)'' 
                        the first two places it appears and 
                        inserting ``subsection (b)'';
                          (ii) by striking ``the prior program 
                        year'' and inserting ``the program year 
                        in which the determination is made'';
                          (iii) by striking ``such prior 
                        program year'' and inserting ``such 
                        program year''; and
                          (iv) by striking the last sentence; 
                        and
                  (D) by amending paragraph (4) to read as 
                follows:
          ``(4) Eligibility.--For purposes of this subsection, 
        an eligible local area means a local area which does 
        not have an amount available for reallocation under 
        paragraph (2) for the program year for which the 
        determination under paragraph (2) is made.''.
  (c) Youth Participant Eligibility.--Section 129(a) (29 U.S.C. 
2854(a)) is amended to read as follows:
  ``(a) Youth Participant Eligibility.--
          ``(1) In general.--The individuals participating in 
        activities carried out under this chapter by a local 
        area during any program year shall be individuals who, 
        at the time the eligibility determination is made, 
        are--
                  ``(A) not younger than age 16 or older than 
                age 24; and
                  ``(B) one or more of the following:
                          ``(i) school dropouts;
                          ``(ii) recipients of a secondary 
                        school diploma, General Educational 
                        Development credential (GED), or other 
                        State-recognized equivalent (including 
                        recognized alternative standards for 
                        individuals with disabilities) who are 
                        deficient in basic skills and not 
                        attending any school;
                          ``(iii) court-involved youth 
                        attending an alternative school;
                          ``(iv) youth in foster care or who 
                        have been in foster care; or
                          ``(v) in school youth who are low-
                        income individuals and one or more of 
                        the following:
                                  ``(I) Deficient in literacy 
                                skills.
                                  ``(II) Homeless, runaway, or 
                                foster children.
                                  ``(III) Pregnant or parents.
                                  ``(IV) Offenders.
                                  ``(V) Individuals who require 
                                additional assistance to 
                                complete an educational 
                                program, or to secure and hold 
                                employment.
          ``(2) Priority for school dropouts.--A priority in 
        the provision of services under this chapter shall be 
        given to individuals who are school dropouts.
          ``(3) Limitations on activities for in-school 
        youth.--
                  ``(A) Percentage of funds.--For any program 
                year, not more than 50 percent of the funds 
                available for statewide activities under 
                subsection (b), and not more than 50 percent of 
                funds available to local areas under subsection 
                (c), may be used to provide activities for in-
                school youth meeting the requirements of 
                paragraph (1)(B)(v).
                  ``(B) Exception.--A State that receives a 
                minimum allotment under section 127(b)(1) in 
                accordance with section 127(b)(1)(C)(iv) or 
                under section 132(b)(1) in accordance with 
                section 132(b)(1)(B)(iv)(II) may increase the 
                percentage described in subparagraph (A) for a 
                local area in the State, if--
                          ``(i) after an analysis of the 
                        eligible youth population in the local 
                        area, the State determines that the 
                        local area will be unable to use at 
                        least 50 percent of the funds available 
                        for activities under subsection (b) or 
                        (c) to serve out-of-school youth due to 
                        a low number of out-of-school youth; 
                        and
                          ``(ii)(I) the State submits to the 
                        Secretary, for the local area, a 
                        request including a proposed increased 
                        percentage for purposes of subparagraph 
                        (A), and the summary of the eligible 
                        youth population analysis; and
                          ``(II) the request is approved by the 
                        Secretary.
                  ``(C) Non-school hours required.--
                          ``(i) In general.--Except as provided 
                        in clause (ii), activities carried out 
                        under this chapter for in-school youth 
                        meeting the requirements of paragraph 
                        (1)(B)(v) shall only be carried out in 
                        non-school hours or periods when school 
                        is not in session (such as before and 
                        after school or during recess).
                          ``(ii) Exception.--The requirements 
                        of clause (i) shall not apply to 
                        activities carried out for in-school 
                        youth meeting the requirements of 
                        paragraph (1)(B)(v) during school hours 
                        that are part of a program that has 
                        demonstrated effectiveness in high 
                        school youth attaining diplomas.
          ``(4) Consistency with compulsory school attendance 
        laws.--In providing assistance under this section to an 
        individual who is required to attend school under 
        applicable State compulsory school attendance laws, the 
        priority in providing such assistance shall be for the 
        individual to attend school regularly.''.
  (d) Statewide Youth Activities.--Section 129(b) (29 U.S.C. 
2854(b)) is amended to read as follows:
  ``(b) Statewide Activities.--
          ``(1) In general.--Funds reserved by a Governor for a 
        State as described in sections 128(a) and 133(a)(1) may 
        be used for statewide activities including--
                  ``(A) additional assistance to local areas 
                that have high concentrations of eligible 
                youth;
                  ``(B) supporting the provision of work ready 
                services described in section 134(c)(2) in the 
                one-stop delivery system;
                  ``(C) conducting evaluations under section 
                136(e) of activities authorized under this 
                chapter and chapter 5 in coordination with 
                evaluations carried out by the Secretary under 
                section 172, research, and demonstration 
                projects;
                  ``(D) providing incentive grants to local 
                areas for regional cooperation among local 
                boards (including local boards in a designated 
                region as described in section 116(c)), for 
                local coordination of activities carried out 
                under this Act, and for exemplary performance 
                by local areas on the local performance 
                measures;
                  ``(E) providing technical assistance and 
                capacity building to local areas, one-stop 
                operators, one-stop partners, and eligible 
                providers, including the development and 
                training of staff, the development of exemplary 
                program activities, and the provision of 
                technical assistance to local areas that fail 
                to meet local performance measures;
                  ``(F) operating a fiscal and management 
                accountability system under section 136(f); and
                  ``(G) carrying out monitoring and oversight 
                of activities under this chapter and chapter 5.
          ``(2) Limitation.--Not more than 5 percent of the 
        funds allotted under section 127(b) shall be used by 
        the State for administrative activities carried out 
        under this subsection and section 133(a).
          ``(3) Prohibition.--No funds described in this 
        subsection or in section 134(a) may be used to develop 
        or implement education curricula for school systems in 
        the State.''.
  (e) Local Elements and Requirements.--
          (1) Program design.--Section 129(c)(1) (29 U.S.C. 
        2854(c) (1)) is amended--
                  (A) in the matter preceding subparagraph (A), 
                by striking ``paragraph (2)(A) or (3), as 
                appropriate, of'';
                  (B) in subparagraph (B), by inserting ``are 
                directly linked to one or more of the 
                performance measures relating to this chapter 
                under section 136, and that'' after ``for each 
                participant that''; and
                  (C) in subparagraph (C)--
                          (i) by redesignating clauses (i) 
                        through (iv) as clauses (ii) through 
                        (v), respectively;
                          (ii) by inserting before clause (ii) 
                        (as so redesignated) the following:
                          ``(i) activities leading to the 
                        attainment of a secondary school 
                        diploma, General Educational 
                        Development credential (GED), or other 
                        State-recognized equivalent (including 
                        recognized alternative standards for 
                        individuals with disabilities);'';
                          (iii) in clause (ii) (as so 
                        redesignated), by inserting ``and 
                        advanced training'' after 
                        ``opportunities'';
                          (iv) in clause (iii) (as so 
                        redesignated), by inserting ``that lead 
                        to the attainment of recognized 
                        credentials'' after ``learning''; and
                          (v) by amending clause (v) (as so 
                        redesignated) to read as follows:
                          ``(v) effective connections to 
                        employers, including small employers, 
                        in sectors of the local and regional 
                        labor markets experiencing high growth 
                        in employment opportunities.''.
          (2) Program elements.--Section 129(c)(2) (29 U.S.C. 
        2854(c)(2)) is amended--
                  (A) in subparagraph (A), by striking 
                ``secondary school, including dropout 
                prevention strategies'' and inserting 
                ``secondary school diploma, General Educational 
                Development credential (GED), or other State-
                recognized equivalent (including recognized 
                alternative standards for individuals with 
                disabilities), including dropout prevention 
                strategies'';
                  (B) in subparagraph (I), by striking ``and'' 
                at the end;
                  (C) in subparagraph (J), by striking the 
                period at the end and inserting a semicolon; 
                and
                  (D) by adding at the end the following:
                  ``(K) on-the-job training opportunities; and
                  ``(L) financial literacy skills.''.
          (3) Additional requirements.--Section 129(c)(3)(A) 
        (29 U.S.C. 2854(c)(3)(A)) is amended in the matter 
        preceding clause (i) by striking ``or applicant who 
        meets the minimum income criteria to be considered an 
        eligible youth''.
          (4) Priority and exceptions.--Section 129(c) (29 
        U.S.C. 2854(c)) is further amended--
                  (A) by striking paragraphs (4) and (5) and 
                redesignating paragraphs (6) through (8) as 
                paragraphs (4) through (6), respectively; and
                  (B) in paragraph (5) (as so redesignated), by 
                striking ``youth councils'' and inserting 
                ``local boards''.

SEC. 422. COMPREHENSIVE PROGRAMS FOR ADULTS.

  (a) Title Amendment.--
          (1) The title heading of chapter 5 is amended to read 
        as follows:

   ``CHAPTER 5--COMPREHENSIVE EMPLOYMENT AND TRAINING ACTIVITIES FOR 
                               ADULTS''.

          (2) Clerical amendment.--The table of contents in 
        section 1(b) is amended by amending the item related to 
        the heading for chapter 5 to read as follows:

   ``Chapter 5--Comprehensive Employment and Training Activities for 
                                Adults''.

  (b) General Authorization.--Section 131 (29 U.S.C. 2861) is 
amended--
          (1) by striking ``paragraphs (1)(B) and (2)(B) of''; 
        and
          (2) by striking ``, and dislocated workers,''.
  (c) State Allotments.--Section 132 (29 U.S.C. 2862) is 
amended--
          (1) by amending subsection (a) to read as follows:
  ``(a) In General.--The Secretary shall--
          ``(1) reserve 7.5 percent of the amount appropriated 
        under section 137 for a fiscal year, of which--
                  ``(A) not less than 85 percent shall be used 
                for national dislocated worker grants under 
                section 173;
                  ``(B) not more than 10 percent may be used 
                for demonstration projects under section 171; 
                and
                  ``(C) not more than 5 percent may be used to 
                provide technical assistance under section 170; 
                and
          ``(2) make allotments from 92.5 percent of the amount 
        appropriated under section 137 for a fiscal year in 
        accordance with subsection (b).'';
          (2) by amending subsection (b) to read as follows:
  ``(b) Allotment Among States for Adult Employment and 
Training Activities.--
          ``(1) Reservation for outlying areas.--
                  ``(A) In general.--From the amount made 
                available under subsection (a)(2) for a fiscal 
                year, the Secretary shall reserve not more than 
                \1/4\ of 1 percent to provide assistance to 
                outlying areas to carry out employment and 
                training activities for adults and statewide 
                workforce investment activities.
                  ``(B) Restriction.--The Republic of Palau 
                shall cease to be eligible to receive funding 
                under this paragraph upon entering into an 
                agreement for extension of United States 
                educational assistance under the Compact of 
                Free Association (approved by the Compact of 
                Free Association Amendments Act of 2003 (Public 
                Law 108-188)) after the date of enactment of 
                the Workforce Investment Improvement Act of 
                2007.
          ``(2) States.--Subject to paragraph (5), of the 
        remainder of the amount referred to under subsection 
        (a)(2) for a fiscal year that is available after 
        determining the amount to be reserved under paragraph 
        (1), the Secretary shall allot to the States for 
        employment and training activities for adults and for 
        statewide workforce investment activities--
                  ``(A) 26 percent in accordance with paragraph 
                (3); and
                  ``(B) 74 percent in accordance with paragraph 
                (4).
          ``(3) Base formula.--
                  ``(A) Fiscal year 2008.--
                          ``(i) In general.--Subject to clause 
                        (ii), the amount referred to in 
                        paragraph (2)(A) shall be allotted for 
                        fiscal year 2008 on the basis of 
                        allotment percentage of each State 
                        under section 6 of the Wagner-Peyser 
                        Act for fiscal year 2007.
                          ``(ii) Excess amounts.--If the amount 
                        referred to in paragraph (2)(A) for 
                        fiscal year 2008 exceeds the amount 
                        that was available for allotment to the 
                        States under the Wagner-Peyser Act for 
                        fiscal year 2007, such excess amount 
                        shall be allotted on the basis of the 
                        relative number of individuals in the 
                        civilian labor force in each State, 
                        compared to the total number of 
                        individuals in the civilian labor force 
                        in all States, adjusted to ensure that 
                        no State receives less than \3/10\ of 
                        one percent of such excess amount.
                          ``(iii) Definition.--For purposes of 
                        this subparagraph, the term `allotment 
                        percentage' means the percentage of the 
                        amounts allotted to States under 
                        section 6 of the Wagner-Peyser Act that 
                        is received by the State involved for 
                        fiscal year 2007.
                  ``(B) Fiscal years 2009 and thereafter.--
                          ``(i) In general.--Subject to clause 
                        (ii), the amount referred to in 
                        paragraph(2)(A) shall be allotted for 
                        fiscal year 2009 and each fiscal year 
                        thereafter on the basis of the 
                        allotment percentage of each State 
                        under this paragraph for the preceding 
                        fiscal year.
                          ``(ii) Excess amounts.--If the amount 
                        referred to in paragraph (2)(A) for 
                        fiscal year 2009 or any fiscal year 
                        thereafter exceeds the amount that was 
                        available for allotment under this 
                        paragraph for the prior fiscal year, 
                        such excess amount shall be allotted on 
                        the basis of the relative number of 
                        individuals in the civilian labor force 
                        in each State, compared to the total 
                        number of individuals in the civilian 
                        labor force in all States, adjusted to 
                        ensure that no State receives less than 
                        \3/10\ of one percent of such excess 
                        amount.
                          ``(iii) Definition.--For purposes of 
                        this subparagraph, the term `allotment 
                        percentage' means the percentage of the 
                        amounts allotted to States under this 
                        paragraph in a fiscal year that is 
                        received by the State involved for such 
                        fiscal year.
          ``(4) Consolidated formula.--
                  ``(A) In general.--Subject to subparagraphs 
                (B) and (C), of the amount referred to in 
                paragraph (2)(B)--
                          ``(i) 60 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) 25 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) 15 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.
                  ``(B) Minimum and maximum percentages.--
                          ``(i) Minimum percentage.--The 
                        Secretary shall ensure that no State 
                        shall receive an allotment under this 
                        paragraph for a fiscal year that is 
                        less than 90 percent of the allotment 
                        percentage of the State under this 
                        paragraph for the preceding fiscal 
                        year.
                          ``(ii) Maximum percentage.--Subject 
                        to clause (i), the Secretary shall 
                        ensure that no State shall receive an 
                        allotment for a fiscal year under this 
                        paragraph that is more than 130 percent 
                        of the allotment of the State under 
                        this paragraph for the preceding fiscal 
                        year.
                  ``(C) Small state minimum allotment.--Subject 
                to subparagraph (B), the Secretary shall ensure 
                that no State shall receive an allotment under 
                this paragraph that is less than \2/10\ of 1 
                percent of the amount available under 
                subparagraph (A).
                  ``(D) Definitions.--For the purposes of this 
                paragraph:
                          ``(i) Allotment percentage.--The term 
                        `allotment percentage', used with 
                        respect to fiscal year 2008 or a 
                        subsequent fiscal year, means a 
                        percentage of the amounts described in 
                        paragraph (2)(B) that is received 
                        through an allotment made under this 
                        paragraph for the fiscal year. The 
                        term, with respect to fiscal year 2007, 
                        means the percentage of the amounts 
                        allotted to States under this chapter 
                        (as in effect on the day before the 
                        date of enactment of the Workforce 
                        Investment Improvement Act of 2007) and 
                        under reemployment service grants 
                        received by the State involved for 
                        fiscal year 2007.
                          ``(ii) Disadvantaged adult.--The term 
                        `disadvantaged adult' means an 
                        individual who is age 22 through 72 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 poverty line.
                          ``(iii) 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\1/2\ percent of the civilian labor 
                        force in the State.
          ``(5) Adjustments in allotments based on differences 
        with unconsolidated formulas.--
                  ``(A) In general.--The Secretary shall ensure 
                that for any fiscal year no State has an 
                allotment difference, as defined in 
                subparagraph (C), that is less than zero. The 
                Secretary shall adjust the amounts allotted to 
                the States under this subsection in accordance 
                with subparagraph (B) if necessary to carry out 
                this subparagraph.
                  ``(B) Adjustments in allotments.--
                          ``(i) Redistribution of excess 
                        amounts.--
                                  ``(I) In general.--If 
                                necessary to carry out 
                                subparagraph (A), the Secretary 
                                shall reduce the amounts that 
                                would be allotted under 
                                paragraphs (3) and (4) to 
                                States that have an excess 
                                allotment difference, as 
                                defined in subclause (II), by 
                                the amount of such excess, and 
                                use such amounts to increase 
                                the allotments to States that 
                                have an allotment difference 
                                less than zero.
                                  ``(II) Excess amounts.--For 
                                purposes of subclause (I), the 
                                term `excess' allotment 
                                difference means an allotment 
                                difference for a State that 
                                is--
                                          ``(aa) in excess of 3 
                                        percent of the amount 
                                        described in 
                                        subparagraph 
                                        (C)(i)(II); or
                                          ``(bb) in excess of a 
                                        percentage established 
                                        by the Secretary that 
                                        is greater than 3 
                                        percent of the amount 
                                        described in 
                                        subparagraph (C)(i)(II) 
                                        if the Secretary 
                                        determines that such 
                                        greater percentage is 
                                        sufficient to carry out 
                                        subparagraph (A).
                          ``(ii) Use of amounts available under 
                        national reserve account.--If the funds 
                        available under clause (i) are 
                        insufficient to carry out subparagraph 
                        (A), the Secretary shall use funds 
                        reserved under section 132(a) in such 
                        amounts as are necessary to increase 
                        the allotments to States to meet the 
                        requirements of subparagraph (A). Such 
                        funds shall be used in the same manner 
                        as the States use the other funds 
                        allotted under this subsection.
                  ``(C) Definition of allotment difference.--
                          ``(i) In general.--For purposes of 
                        this paragraph, the term `allotment 
                        difference' means the difference 
                        between--
                                  ``(I) the total amount a 
                                State would receive of the 
                                amounts available for allotment 
                                under subsection (b)(2) for a 
                                fiscal year pursuant to 
                                paragraphs (3) and (4); and
                                  ``(II) the total amount the 
                                State would receive of the 
                                amounts available for allotment 
                                under subsection (b)(2) for the 
                                fiscal year if such amounts 
                                were allotted pursuant to the 
                                unconsolidated formulas 
                                (applied as described in clause 
                                (iii)) that were used in 
                                allotting funds for fiscal year 
                                2007.
                          ``(ii) Unconsolidated formulas.--For 
                        purposes of clause (i), the 
                        unconsolidated formulas are:
                                  ``(I) The requirements for 
                                the allotment of funds to the 
                                States contained in section 
                                132(b)(1)(B) of this Act (as in 
                                effect on the day before the 
                                date of enactment of the 
                                Workforce Investment 
                                Improvement Act of 2007) that 
                                were applicable to the 
                                allotment of funds under such 
                                section for fiscal year 2007.
                                  ``(II) The requirements for 
                                the allotment of funds to the 
                                States contained in section 
                                132(b)(2)(B) of this Act (as in 
                                effect on the day before the 
                                date of enactment of the 
                                Workforce Investment 
                                Improvement Act of 2007) that 
                                were applicable to the 
                                allotment of funds under such 
                                section for fiscal year 2007.
                                  ``(III) The requirements for 
                                the allotment of funds to the 
                                States that were contained in 
                                section 6 of the Wagner-Peyser 
                                Act (as in effect on the day 
                                before the date of enactment of 
                                the Workforce Investment 
                                Improvement Act of 2007) that 
                                were applicable to the 
                                allotment of funds under such 
                                Act for fiscal year 2007.
                                  ``(IV) The requirements for 
                                the allotment of funds to the 
                                States that were established by 
                                the Secretary for Reemployment 
                                Services Grants that were 
                                applicable to the allotment of 
                                funds for such grants for 
                                fiscal year 2007.
                          ``(iii) Proportionate application of 
                        unconsolidated formulas based on fiscal 
                        year 2007.--In calculating the amount 
                        under clause (i)(II), each of the 
                        unconsolidated formulas identified in 
                        clause (ii) shall be applied, 
                        respectively, only to the proportionate 
                        share of the total amount of funds 
                        available for allotment under 
                        subsection (b)(2) for a fiscal year 
                        that is equal to the proportionate 
                        share to which each of the 
                        unconsolidated formulas applied with 
                        respect to the total amount of funds 
                        allotted to the States under all of the 
                        unconsolidated formulas in fiscal year 
                        2007.
                          ``(iv) Rule of construction.--The 
                        amounts used to adjust the allotments 
                        to a State under subparagraph (B) for a 
                        fiscal year shall not be included in 
                        the calculation of the amounts under 
                        clause (i) for a subsequent fiscal 
                        year, including the calculation of 
                        allocation percentages for a preceding 
                        fiscal year applicable to paragraphs 
                        (3) and (4) and to the unconsolidated 
                        formulas described in clause (ii).''; 
                        and
          (3) in subsection (c)--
                  (A) by amending paragraph (2) to read as 
                follows:
          ``(2) Amount.--The amount available for reallotment 
        for a program year is equal to the amount by which the 
        unexpended balance at the end of the program year prior 
        to the program year for which the determination is made 
        exceeds 30 percent of the total amount of funds 
        available to the State under this section during such 
        prior program year (including amounts allotted to the 
        State in all prior program years that remained 
        available). For purposes of this paragraph, the 
        expended balance is the amount that is the difference 
        between--
                  ``(A) the total amount of funds available to 
                the State under this section during the program 
                year prior to the program year for which the 
                determination is made (including amounts 
                allotted to the State in all prior program 
                years that remained available); and
                  ``(B) the accrued expenditures during such 
                prior program year.'';
                  (B) in paragraph (3)--
                          (i) by striking ``for the prior 
                        program year'' and inserting ``for the 
                        program year in which the determination 
                        is made''; and
                          (ii) by striking ``such prior program 
                        year'' and inserting ``such program 
                        year'';
                  (C) by amending paragraph (4) to read as 
                follows:
          ``(4) Eligibility.--For purposes of this subsection, 
        an eligible State means a State that does not have an 
        amount available for reallotment under paragraph (2) 
        for the program year for which the determination under 
        paragraph (2) is made.''; and
                  (D) in paragraph (5), by striking 
                ``obligation'' and inserting ``accrued 
                expenditure''.
  (d) Within State Allocations.--Section 133 (29 U.S.C. 2863) 
is amended--
          (1) by amending subsection (a) to read as follows:
  ``(a) Reservation for Statewide Activities.--The Governor of 
a State may reserve up to 40 percent of the total amount 
allotted to the State under section 132 for a fiscal year to 
carry out the statewide activities described in section 
134(a).'';
          (2) by amending subsection (b) to read as follows:
  ``(b) Allocations to Local Areas.--
          ``(1) In general.--Of the amounts allotted to the 
        State under section 132(b)(2) and not reserved under 
        subsection (a)--
                  ``(A) 85 percent of such amounts shall be 
                allocated by the Governor to local areas in 
                accordance with paragraph (2); and
                  ``(B) 15 percent of such amounts shall be 
                allocated by the Governor to local areas in 
                accordance with paragraph (3).
          ``(2) Established formula.--
                  ``(A) In general.--Of the amounts described 
                in paragraph (1)(A), the Governor shall 
                allocate--
                          ``(i) 60 percent on the basis of the 
                        relative number of unemployed 
                        individuals in each local area, 
                        compared to the total number of 
                        unemployed individuals in all local 
                        areas in the State;
                          ``(ii) 25 percent on the basis of the 
                        relative excess number of unemployed 
                        individuals in each local area, 
                        compared to the total excess number of 
                        unemployed individuals in all local 
                        areas in the State; and
                          ``(iii) 15 percent shall be allotted 
                        on the basis of the relative number of 
                        disadvantaged adults in each local 
                        area, compared to the total number of 
                        disadvantaged adults in all local areas 
                        in the State.
                  ``(B) Minimum and maximum percentages.--The 
                Governor shall ensure that no local area shall 
                receive an allocation for a fiscal year under 
                this paragraph that is less than 90 percent or 
                greater than 130 percent of the allocation 
                percentage of the local area for the preceding 
                fiscal year.
                  ``(C) Definitions.--
                          ``(i) Allocation percentage.--The 
                        term `allocation percentage', used with 
                        respect to fiscal year 2008 or a 
                        subsequent fiscal year, means a 
                        percentage of the amount described in 
                        paragraph (1)(A) that is received 
                        through an allocation made under this 
                        paragraph for the fiscal year. The 
                        term, with respect to fiscal year 2007, 
                        means the percentage of the amounts 
                        allocated to local areas under this 
                        chapter (as in effect on the day before 
                        the date of enactment of the Workforce 
                        Investment Improvement Act of 2007) 
                        that is received by the local area 
                        involved for fiscal year 2007.
                          ``(ii) Disadvantaged adult.--The term 
                        `disadvantaged adult' means an 
                        individual who is age 22 through 72 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 poverty line.
                          ``(iii) Excess number.--The term 
                        `excess number' means, used with 
                        respect to the excess number of 
                        unemployed individuals within a local 
                        area, the number that represents the 
                        number of unemployed individuals in 
                        excess of 4.5 percent of the civilian 
                        labor force in the local area.
          ``(3) Discretionary allocation.--The Governor shall 
        allocate to local areas the amounts described in 
        paragraph (1)(B) based on a formula developed in 
        consultation with the State board and local boards. 
        Such formula shall be objective and geographically 
        equitable and may include such demographic and economic 
        factors as the Governor, after consultation with the 
        State board and local boards, determines are 
        appropriate.
          ``(4) Local administrative cost limit.--
                  ``(A) In general.--Of the amounts allocated 
                to a local area under this subsection and 
                section 128(b) for a fiscal year, not more than 
                10 percent of the amount may be used by the 
                local boards for the administrative costs of 
                carrying out local workforce investment 
                activities under this chapter or chapter 4.
                  ``(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 4, 
                regardless of whether the funds were allocated 
                under this subsection or section 128(b).'';
          (3) in subsection (c)--
                  (A) in paragraph (1), by striking ``paragraph 
                (2)(A) or (3) of'';
                  (B) by amending paragraph (2) to read as 
                follows:
          ``(2) Amount.--The amount available for reallocation 
        for a program year is equal to the amount by which the 
        unexpended balance at the end of the program year prior 
        to the program year for which the determination is made 
        exceeds 30 percent of the total amount of funds 
        available to the local area under this section during 
        such prior program year (including amounts allotted to 
        the local area in prior program years that remain 
        available). For purposes of this paragraph, the 
        unexpended balance is the amount that is the difference 
        between--
                  ``(A) the total amount of funds available to 
                the local area under this section during the 
                program year prior to the program year for 
                which the determination is made (including 
                amounts allocated to the local area in all 
                prior program years that remained available); 
                and
                  ``(B) the accrued expenditures during such 
                prior program year.'';
                  (C) by amending paragraph (3)--
                          (i) by striking ``subsection (b)(3)'' 
                        the first two places it appears and 
                        inserting ``subsection (b)'';
                          (ii) by striking ``the prior program 
                        year'' and inserting ``the program year 
                        in which the determination is made'';
                          (iii) by striking ``such prior 
                        program year'' and inserting ``such 
                        program year''; and
                          (iv) by striking the last sentence; 
                        and
                  (D) by amending paragraph (4) to read as 
                follows:
          ``(4) Eligibility.--For purposes of this subsection, 
        an eligible local area means a local area which does 
        not have an amount available for reallocation under 
        paragraph (2) for the program year for which the 
        determination under paragraph (2) is made.''.
  (e) Use of Funds for Employment and Training Activities.--
          (1) Statewide employment and training activities.--
        Section 134(a) (29 U.S.C. 2864(a) is amended to read as 
        follows:
          ``(1) In general.--
                  ``(A) Required use of funds.--Not less than 
                60 percent of the funds reserved by a Governor 
                under section 133(a) shall be used to support 
                One-Stop delivery systems and the provision of 
                work ready services, and, in addition, may be 
                used to support the provision of discretionary 
                one-step delivery services, in local areas, 
                consistent with the local plan, through one-
                stop delivery systems by distributing funds to 
                local areas in accordance with subparagraph 
                (B). Such funds may be used by States to employ 
                State personnel to provide such services in 
                designated local areas in consultation with 
                local boards.
                  ``(B) Method of distributing funds.--The 
                method of distributing funds under this 
                paragraph shall be developed in consultation 
                with the State board and local boards. Such 
                method of distribution, which may include the 
                formula established under section 121(h)(3), 
                shall be objective and geographically 
                equitable, and may include factors such as the 
                number of centers in the local area that have 
                been certified, the population served by such 
                centers, and the performance of such centers.
                  ``(C) Other use of funds.--Funds reserved by 
                a Governor for a State--
                          ``(i) under section 133(a) and not 
                        used under subparagraph (A), may be 
                        used for statewide activities described 
                        in paragraph (2); and
                          ``(ii) under section 133(a) and not 
                        used under subparagraph (A), and under 
                        section 128(a) may be used to carry out 
                        any of the statewide employment and 
                        training activities described in 
                        paragraph (3).
          ``(2) Statewide rapid response activities.--A State 
        shall carry out statewide rapid response activities 
        using funds reserved as described in section 133(a). 
        Such activities shall include--
                  ``(A) provision of rapid response activities, 
                carried out in local areas by the State or by 
                an entity designated by the State, working in 
                conjunction with the local boards and the chief 
                elected officials in the local areas; and
                  ``(B) 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 in the local areas.
          ``(3) Statewide activities.--Funds reserved by a 
        Governor for a State as described in sections 133(a) 
        and 128(a) may be used for statewide activities 
        including--
                  ``(A) supporting the provision of work ready 
                services described in section 134(c)(2) in the 
                one-stop delivery system;
                  ``(B) implementing innovative programs and 
                strategies designed to meet the needs of all 
                businesses in the State, including small 
                businesses, which may include incumbent worker 
                training programs, sectoral and industry 
                cluster strategies and partnerships, including 
                regional skills alliances, sectoral skills 
                partnerships (in which representatives of 
                multiple employers for a specific industry 
                sector or group of related occupations, 
                economic development agencies, providers of 
                training services described in subsection 
                (d)(4), labor federations, and other entities 
                that can provide needed supportive services 
                tailored to the needs of workers in that sector 
                or group, for a local area or region, identify 
                gaps between the current and expected demand 
                and supply of labor and skills in that sector 
                or group for that area or region and develop a 
                strategic skills gap action plan), career 
                ladder programs, micro-enterprise and 
                entrepreneurial training and support programs, 
                utilization of effective business 
                intermediaries, activities to improve linkages 
                between the one-stop delivery system in the 
                State and all employers (including small 
                employers) in the State, and other business 
                services and strategies that better engage 
                employers in workforce investment activities 
                and make the workforce investment system more 
                relevant to the needs of State and local 
                businesses, consistent with the objectives of 
                this title;
                  ``(C) conducting evaluations under section 
                136(e) of activities authorized under this 
                chapter and chapter 4 in coordination with 
                evaluations carried out by the Secretary under 
                section 172, research, and demonstration 
                projects;
                  ``(D) providing incentive grants to local 
                areas for regional cooperation among local 
                boards (including local boards in a designated 
                region as described in section 116(c)), for 
                local coordination of activities carried out 
                under this Act, and for exemplary performance 
                by local areas on the local performance 
                measures;
                  ``(E) providing technical assistance and 
                capacity building to local areas, one-stop 
                operators, one-stop partners, and eligible 
                providers, including the development and 
                training of staff, the development of exemplary 
                program activities, and the provision of 
                technical assistance to local areas that fail 
                to meet local performance measures;
                  ``(F) operating a fiscal and management 
                accountability system under section 136(f);
                  ``(G) carrying out monitoring and oversight 
                of activities carried out under this chapter 
                and chapter 4;
                  ``(H) implementing innovative programs, such 
                as incumbent worker training programs, programs 
                and strategies designed to meet the needs of 
                businesses in the State, including small 
                businesses, and engage employers in workforce 
                activities, and programs serving individuals 
                with disabilities consistent with section 188;
                  ``(I) developing strategies for effectively 
                serving hard-to-serve populations and for 
                integrating programs and services among one-
                stop partners; and
                  ``(J) carrying out activities to facilitate 
                remote access to services provided through a 
                one-stop delivery system, including 
                facilitating access through the use of 
                technology.
          ``(4) Limitation.--Not more than 5 percent of the 
        funds allotted under section 132(b) shall be used by 
        the State for administrative activities carried out 
        under this subsection and section 128(a).''.
          (2) Local employment and training activities.--
        Section 134(b) (29 U.S.C. 2864(b)) is amended--
                  (A) by striking ``under paragraph (2)(A)'' 
                and all that follows through ``section 
                133(b)(2)(B)'' and inserting ``under section 
                133(b)''; and
                  (B) in paragraphs (1) and (2), by striking 
                ``or dislocated workers, respectively''.
          (3) Technical amendment.--Section 134 is further 
        amended by redesignating subsections (d) and (e) as 
        subsections (c) and (d), respectively.
          (4) Required local employment and training 
        activities.--
                  (A) Allocated funds.--Section 134(c)(1) (29 
                U.S.C. 2864(c)(1)) (as redesignated by 
                paragraph (3)) is amended to read as follows:
          ``(1) In general.--Funds allocated to a local area 
        for adults under section 133(b) shall be used--
                  ``(A) to establish a one-stop delivery system 
                as described in section 121(e);
                  ``(B) to provide the work ready services 
                described in paragraph (2) through the one-stop 
                delivery system in accordance with such 
                paragraph;
                  ``(C) to provide training services described 
                in paragraph (4) to adults described in such 
                paragraph; and
                  ``(D) to designate a dedicated business 
                liaison in the local area who may be funded 
                with funds provided under this title or from 
                other sources to establish and develop 
                relationships and networks with large and small 
                employers and their intermediaries.''.
                  (B) Work ready services.--Section 134(c)(2) 
                (29 U.S.C. 2864(c)(2)) (as redesignated by 
                paragraph (3)) is amended----
                          (i) in the heading, by striking 
                        ``core services'' and inserting ``work 
                        ready services'';
                          (ii) by striking ``core services'' 
                        and inserting ``work ready services'';
                          (iii) by striking ``paragraph 
                        (1)(A)'' and inserting ``paragraph 
                        (1)(A)(i)'';
                          (iv) by striking ``who are adults or 
                        dislocated workers'';
                          (v) in subparagraph (A), by inserting 
                        ``and assistance in obtaining 
                        eligibility determinations under the 
                        other one-stop partner programs through 
                        such activities as assisting in the 
                        submission of applications, the 
                        provision of information on the results 
                        of such applications, the provision of 
                        intake services and information, and, 
                        where appropriate and consistent with 
                        the authorizing statute of the one-stop 
                        partner program, determinations of 
                        eligibility'' after ``subtitle'';
                          (vi) by amending subparagraph (D) to 
                        read as follows:
                  ``(D) labor exchange services, including--
                          ``(i) job search and placement 
                        assistance, and where appropriate 
                        career counseling;
                          ``(ii) appropriate recruitment 
                        services for employers, including small 
                        employers, in the local area, which may 
                        include services described in this 
                        subsection, including information and 
                        referral to specialized business 
                        services not traditionally offered 
                        through the one-stop delivery system; 
                        and
                          ``(iii) reemployment services 
                        provided to unemployment claimants, 
                        including claimants identified as in 
                        need of such services under the worker 
                        profiling system established under 
                        section 303(j) of the Social Security 
                        Act (42 U.S.C. 503(j));'';
                          (vii) in subparagraph (I), by 
                        inserting ``and the administration of 
                        the work test for the unemployment 
                        compensation system'' after 
                        ``compensation''; and
                          (viii) by striking subparagraph (H) 
                        and inserting the following:
                  ``(H) provision of accurate information, in 
                formats that are usable and understandable to 
                all one-stop center customers, relating to the 
                availability of supportive services or 
                assistance, including child care, child 
                support, medical or child health assistance 
                under title XIX or XXI of the Social Security 
                Act (42 U.S.C. 1396 et seq. and 1397aa et 
                seq.), benefits under the Food Stamp Act of 
                1977 (7 U.S.C. 2011 et seq.), the earned income 
                tax credit under section 32 of the Internal 
                Revenue Code of 1986, and assistance under a 
                State program funded under part A of title IV 
                of the Social Security Act (42 U.S.C. 601 et 
                seq.) and other supportive services and 
                transportation provided through funds made 
                available under such part, available in the 
                local area, and referral to such services or 
                assistance as appropriate;''; and
                          (ix) by amending subparagraph (J) to 
                        read as follows:
                  ``(J) assistance in establishing eligibility 
                for programs of financial aid assistance for 
                training and education programs that are not 
                funded under this Act and are available in the 
                local area; and''; and
                          (x) by redesignating subparagraph (K) 
                        as subparagraph (M); and
                          (xi) by inserting the following new 
                        subparagraphs after subparagraph (J)):
                  ``(K) the provision of information from 
                official publications of the Internal Revenue 
                Service, regarding federal tax credits 
                available to individuals relating to education, 
                job training and employment, including the Hope 
                Scholarship Credit and the Lifetime Learning 
                Credit (26 U.S.C. 25A), and the Earned Income 
                Tax Credit (26 U.S.C. 32);
                  ``(L) services relating to the Work 
                Opportunity Tax Credit (26 U.S.C. 51);
                  ``(M) comprehensive and specialized 
                assessments of the skill levels and service 
                needs of adults and dislocated workers, which 
                may include--
                          ``(i) diagnostic testing and use of 
                        other assessment tools; and
                          ``(ii) in-depth interviewing and 
                        evaluation to identify employment 
                        barriers and appropriate employment 
                        goals;
                  ``(N) development of an individual employment 
                plan, to identify the employment goals, 
                appropriate achievement objectives, and 
                appropriate combination of services for the 
                participation to achieve the employment goals;
                  ``(O) group counseling;
                  ``(P) individual counseling and career 
                planning;
                  ``(Q) case management;
                  ``(R) short-term prevocational services, 
                including development of learning skills, 
                communications skills, interviewing skills, 
                punctuality, personal maintenance skills, and 
                professional conduct, to prepare individuals 
                for unsubsidized employment or training;
                  ``(S) internships and work experience;
                  ``(T) literacy activities relating to basic 
                work readiness, information and communication 
                technology literacy activities, and financial 
                literacy activities, if such activities are not 
                available to participants in the local area 
                under programs administered under the Adult 
                Education and Family Literacy Act (20 U.S.C. 
                2901 et seq.); and
                  ``(U) out-of-area job search assistance and 
                relocation assistance.''.
                  (C) Delivery of services.--Section 134(c)(3) 
                (29 U.S.C. 2864(c)(3) (as redesignated by 
                paragraph (3) of this subsection) is amended to 
                read as follows:
          ``(3) Delivery of services.--The work ready services 
        described in paragraph (M) through (U) shall be 
        provided through the one-stop delivery system and may 
        be provided through contracts with public, private for-
        profit, and private nonprofit service providers, 
        approved by the local board.''.
                  (D) Training services.--Section 134(c)(4) (as 
                redesignated by paragraph (3) of this 
                subsection) is amended--
                          (i) by amending subparagraph (A) to 
                        read as follows:
                  ``(A) In general.--Funds allocated to a local 
                area under section 133(b) shall be used to 
                provide training services to adults who--
                          ``(i) after an interview, evaluation, 
                        or assessment, and case management, 
                        have been determined by a one-stop 
                        operator or one-stop partner, as 
                        appropriate, to--
                                  ``(I) be in need of training 
                                services to obtain or retain 
                                suitable employment; and
                                  ``(II) have the skills and 
                                qualifications to successfully 
                                participate in the selected 
                                program of training services;
                          ``(ii) select programs of training 
                        services that are directly linked to 
                        the employment opportunities in the 
                        local area involved or in another area 
                        in which the adults receiving such 
                        services are willing to commute or 
                        relocate;
                          ``(iii) who meet the requirements of 
                        subparagraph (B); and
                          ``(iv) who are determined eligible in 
                        accordance with the priority system in 
                        effect under subparagraph (E).'';
                          (ii) in subparagraph (B)(i), by 
                        striking ``Except'' and inserting 
                        ``Notwithstanding section 479B of the 
                        Higher Education Act of 1965 (20 U.S.C. 
                        1087uu) and except'';
                          (iii) by amending subparagraph (D) to 
                        read as follows:
                  ``(D) Training services.--Training services 
                authorized under this paragraph may include--
                          ``(i) occupational skills training;
                          ``(ii) on-the-job training;
                          ``(iii) skill upgrading and 
                        retraining;
                          ``(iv) entrepreneurial training;
                          ``(v) education activities leading to 
                        a high school diploma or its 
                        equivalent, including a General 
                        Educational Development credential, in 
                        combination with, concurrently or 
                        subsequently, occupational skills 
                        training;
                          ``(vi) adult education and literacy 
                        activities provided in conjunction with 
                        other training authorized under this 
                        subparagraph;
                          ``(vii) workplace training combined 
                        with related instruction; and
                          ``(viii) occupational skills training 
                        that incorporates English language 
                        acquisition.'';
                          (iv) by amending subparagraph (E) to 
                        read as follows:
                  ``(E) Priority.--
                          ``(i) In general.--A priority shall 
                        be given to unemployed individuals and 
                        employed workers who need training 
                        services to retain employment or to 
                        advance in a career for the provision 
                        of intensive and training services 
                        under this subsection.
                          ``(ii) Determinations.--The Governor 
                        and the appropriate local board shall 
                        direct the one-stop operators in the 
                        local area with regard to making 
                        determinations with respect to the 
                        priority of service under this 
                        subparagraph.'';
                          (v) in subparagraph (F), by striking 
                        clause (iii) and inserting the 
                        following:
                          ``(iii) Career enhancement 
                        accounts.--An individual who seeks 
                        training services and who is eligible 
                        pursuant to subparagraph (A), may, in 
                        consultation with a case manager, 
                        select an eligible provider of training 
                        services from the list or identifying 
                        information for providers described in 
                        clause (ii)(I). Upon such selection, 
                        the one-stop operator involved shall, 
                        to the extent practicable, refer such 
                        individual to the eligible provider of 
                        training services, and arrange for 
                        payment for such services through a 
                        career enhancement account.
                          ``(iv) Coordination.--Each local 
                        board may, through one-stop centers, 
                        coordinate career enhancement accounts 
                        with other Federal, State, local, or 
                        private job training programs or 
                        sources to assist the individual in 
                        obtaining training services.
                          ``(v) Enhanced career enhancement 
                        accounts.--Each local board may, 
                        through one-stop centers, assist 
                        individuals receiving career 
                        enhancement accounts through the 
                        establishment of such accounts that 
                        include, in addition to the funds 
                        provided under this paragraph, funds 
                        from other programs and sources that 
                        will assist the individual in obtaining 
                        training services.''; and
                          (vi) in subparagraph (G)--
                                  (I) in the subparagraph 
                                heading, by striking 
                                ``individual training 
                                accounts'' and inserting 
                                ``career enhancement 
                                accounts'';
                                  (II) in clause (i) by 
                                striking ``individual training 
                                accounts'' and inserting 
                                ``career enhancement 
                                accounts'';
                                  (III) in clause (ii)--
                                          (aa) by striking ``an 
                                        individual training 
                                        account'' and inserting 
                                        ``a career enhancement 
                                        account'';
                                          (bb) in subclause 
                                        (II), by striking 
                                        ``individual training 
                                        accounts'' and 
                                        inserting ``career 
                                        enhancement accounts'';
                                          (cc) in subclause 
                                        (II) by striking ``or'' 
                                        after the semicolon;
                                          (dd) in subclause 
                                        (III) by striking the 
                                        period and inserting 
                                        ``; or''; and
                                          (ee) by adding at the 
                                        end of the following:
                                  ``(IV) The local board 
                                determines that it would be 
                                most appropriate to award a 
                                contract to an institution of 
                                higher education in order to 
                                facilitate the training of 
                                multiple individuals in high-
                                demand occupations, if such 
                                contract does not limit 
                                customer choice.''.
                                  (IV) in clause (iv)--
                                          (aa) by redesignating 
                                        subclause (IV) as 
                                        subclause (V) and 
                                        inserting after 
                                        subclause (III) the 
                                        following:
                                  ``(IV) Individuals with 
                                disabilities.''.
          (5) Permissible activities.--Section 134(d) (as 
        redesignated by paragraph (3)) is amended--
                  (A) by amending paragraph (1) to read as 
                follows:
          ``(1) Discretionary one-stop delivery activities.--
                  ``(A) In general.--Funds allocated to a local 
                area under section 133(b) may be used to 
                provide, through the one-stop delivery system--
                          ``(i) customized screening and 
                        referral of qualified participants in 
                        training services to employers;
                          ``(ii) customized employment-related 
                        services to employers on a fee-for-
                        service basis;
                          ``(iii) customer support to navigate 
                        among multiple services and activities 
                        for special participant populations 
                        that face multiple barriers to 
                        employment, including individuals with 
                        disabilities;
                          ``(iv) employment and training 
                        assistance provided in coordination 
                        with child support enforcement 
                        activities of the State agency carrying 
                        out subtitle D of title IV of the 
                        Social Security Act (42 U.S.C. 651 et 
                        seq.);
                          ``(v) activities to improve services 
                        to local employers, including small 
                        employers in the local area, and 
                        increase linkages between the local 
                        workforce investment system and 
                        employers;
                          ``(vi) activities to facilitate 
                        remote access to services provided 
                        through a one-stop delivery system, 
                        including facilitating access through 
                        the use of technology; and
                          ``(vii) activities to carry out 
                        business services and strategies that 
                        meet the workforce investment needs of 
                        local area employers, as determined by 
                        the local board, consistent with the 
                        local plan under section 118, which 
                        services--
                                  ``(I) may be provided through 
                                effective business 
                                intermediaries working in 
                                conjunction with the local 
                                board, and may also be provided 
                                on a fee-for-service basis or 
                                through the leveraging of 
                                economic development and other 
                                resources as determined 
                                appropriate by the local board; 
                                and
                                  ``(II) may include--
                                          ``(aa) identifying 
                                        and disseminating to 
                                        business, educators, 
                                        and job seekers, 
                                        information related to 
                                        the workforce, economic 
                                        and community 
                                        development needs, and 
                                        opportunities of the 
                                        local economy;
                                          ``(bb) development 
                                        and delivery of 
                                        innovative workforce 
                                        investment services and 
                                        strategies for area 
                                        businesses, which may 
                                        include sectoral, 
                                        industry cluster, 
                                        regional skills 
                                        alliances, career 
                                        ladder, skills 
                                        upgrading, skill 
                                        standard development 
                                        and certification, 
                                        apprenticeship, and 
                                        other effective 
                                        initiatives for meeting 
                                        the workforce 
                                        investment needs of 
                                        area employers and 
                                        workers;
                                          ``(cc) participation 
                                        in seminars and classes 
                                        offered in partnership 
                                        with relevant 
                                        organizations focusing 
                                        on the workforce-
                                        related needs of area 
                                        employers and job 
                                        seekers;
                                          ``(dd) training 
                                        consulting, needs 
                                        analysis, and brokering 
                                        services for area 
                                        businesses, including 
                                        the organization and 
                                        aggregation of training 
                                        (which may be paid for 
                                        with funds other than 
                                        those provided under 
                                        this title), for 
                                        individual employers 
                                        and coalitions of 
                                        employers with similar 
                                        interests, products, or 
                                        workforce needs;
                                          ``(ee) assistance to 
                                        area employers in the 
                                        aversion of layoffs and 
                                        in managing reductions 
                                        in force in 
                                        coordination with rapid 
                                        response activities;
                                          ``(ff) the marketing 
                                        of business services 
                                        offered under this 
                                        title, to appropriate 
                                        area employers, 
                                        including small and 
                                        mid-sized employers;
                                          ``(gg) information 
                                        referral on concerns 
                                        affecting local 
                                        employers; and
                                          ``(hh) other business 
                                        services and strategies 
                                        designed to better 
                                        engage employers in 
                                        workforce investment 
                                        activities and to make 
                                        the workforce 
                                        investment system more 
                                        relevant to the 
                                        workforce investment 
                                        needs of area 
                                        businesses, as 
                                        determined by the local 
                                        board to be consistent 
                                        with the objectives of 
                                        this title.
                  ``(B) Work support activities for low-wage 
                workers.--
                          ``(i) In general.--Funds allocated to 
                        a local area under 133(b) may be used 
                        to provide, through the one-stop 
                        delivery system and in collaboration 
                        with the appropriate programs and 
                        resources of the one-stop partners, 
                        work support activities designed to 
                        assist low-wage workers in retaining 
                        and enhancing employment. The one stop 
                        partners shall coordinate the 
                        appropriate programs and resources of 
                        the partners with the activities and 
                        resources provided under this 
                        subparagraph.
                          ``(ii) Activities.--The activities 
                        described in clause (i) may include 
                        assistance in accessing financial 
                        supports for which such workers may be 
                        eligible and the provision of 
                        activities available through the one-
                        stop delivery system in a manner that 
                        enhances the opportunities of such 
                        workers to participate, such as the 
                        provision of employment and training 
                        activities during nontraditional hours 
                        and the provision of on-site child care 
                        while such activities are being 
                        provided.''; and
                  (B) by adding after paragraph (3) the 
                following new paragraph:
          ``(4) Incumbent worker training programs.--
                  ``(A) In general.--The local board may use up 
                to 10 percent of the funds allocated to a local 
                area under section 133(b) to carry out 
                incumbent worker training programs in 
                accordance with this paragraph.
                  ``(B) Training activities.--The training 
                programs for incumbent workers under this 
                paragraph shall be carried out by the local 
                area in conjunction with the employers of such 
                workers for the purpose of assisting such 
                workers in obtaining the skills necessary to 
                retain employment and avert layoffs.
                  ``(C) Employer match required.--
                          ``(i) In general.--Employers 
                        participating in programs under this 
                        paragraph shall be required to pay a 
                        proportion of the costs of providing 
                        the training to the incumbent workers 
                        of the employers. The State board, in 
                        consultation with the local board as 
                        appropriate, shall establish the 
                        required portion of such costs, which 
                        may include in-kind contributions. The 
                        required portion shall not be less 
                        than--
                                  ``(I) 10 percent of the 
                                costs, for employers with 50 or 
                                fewer employees;
                                  ``(II) 25 percent of the 
                                costs, for employers with more 
                                than 50 employees but fewer 
                                than 100 employees; and
                                  ``(III) 50 percent of the 
                                costs, for employers with 100 
                                or more employees.
                          ``(ii) Calculation of match.--The 
                        wages paid by an employer to a worker 
                        while they are attending training may 
                        be included as part of the requirement 
                        payment of the employer.''.

SEC. 423. PERFORMANCE ACCOUNTABILITY SYSTEM.

  (a) State Performance Measures.--
          (1) In general.--Section 136(b)(1) (29 U.S.C. 
        2871(b)(1)) is amended--
                  (A) in subparagraph (A)(i), by striking ``and 
                the customer satisfaction indicator of 
                performance described in paragraph (2)(B)''; 
                and
                  (B) in subparagraph (A)(ii), by striking 
                ``paragraph (2)(C)'' and inserting ``paragraph 
                (2)(B)''.
          (2) Indicators of performance.--Section 136(b)(2) (29 
        U.S.C. 2871(b)(2)) is amended--
                  (A) in subparagraph (A)(i)--
                          (i) by striking ``(except for self-
                        service and information activities) and 
                        (for participants who are eligible 
                        youth age 19 through 21) for youth 
                        activities authorized under section 
                        129'';
                          (ii) in subclause (II), by striking 
                        ``6 months after entry into the 
                        employment'' and inserting ``and'' 
                        after the semicolon; and
                          (iii) by striking subclause (III), 
                        and inserting the following:
                                  ``(III) average earnings from 
                                unsubsidized employment.'';
                  (B) by striking subclause (IV) of 
                subparagraph (A)(i);
                  (C) by amending subparagraph (A)(ii) to read 
                as follows:
                          ``(ii) Core indicators for eligible 
                        youth.--The core indicators of 
                        performance for youth activities 
                        authorized under section 129 shall 
                        consist of--
                                  ``(I) entry into employment, 
                                education or advanced training, 
                                or military service;
                                  ``(II) attainment of 
                                secondary school diploma, 
                                General Educational Development 
                                credential (GED), or other 
                                State-recognized equivalent or 
                                certificate (including 
                                recognized alternative 
                                standards for individuals with 
                                disabilities); and
                                  ``(III) literacy or numeracy 
                                gains.'';
                  (D) by striking subparagraph (B); and
                  (E) by redesignating subparagraph (C) as 
                subparagraph (B), and by adding at the end of 
                such subparagraph the following new sentence: 
                ``Such indicators may include customer 
                satisfaction of employers and participants with 
                services received from the workforce investment 
                activities authorized under this subtitle.''.
          (3) Levels of performance.--Section 136(b)(3)(A) (29 
        U.S.C. 2871(b)(3)(A)) is amended--
                  (A) in clause (i), by striking ``and the 
                customer satisfaction indicator described in 
                paragraph (2)(B)'';
                  (B) in clause (ii), by striking ``and the 
                customer satisfaction indicator of performance, 
                for the first 3'' and inserting ``for the 2'';
                  (C) in clause (iii)--
                          (i) in the heading, by striking ``FOR 
                        FIRST 3 YEARS''; and
                          (ii) by striking ``and the customer 
                        satisfaction indicator of performance, 
                        for the first 3'' and inserting ``for 
                        the 2'';
                  (D) in clause (iv)--
                          (i) by striking subclause (I);
                          (ii) by redesignating subclauses (II) 
                        and (III) as subclauses (I) and (II), 
                        respectively; and
                          (iii) in subclause (I) (as so 
                        redesignated)--
                                  (I) by striking ``taking into 
                                account'' and inserting ``which 
                                shall be adjusted based on'';
                                  (II) by inserting ``, such as 
                                unemployment rates and job 
                                losses or gains in particular 
                                industries'' after ``economic 
                                conditions''; and
                                  (III) by inserting ``, such 
                                as indicators of poor work 
                                history, lack of work 
                                experience, dislocation from 
                                high-wage employment, low 
                                levels of literacy or English 
                                proficiency, disability status, 
                                including the number of 
                                veterans with disabilities, and 
                                welfare dependency'' after 
                                ``program'';
                  (E) by striking clause (v) and redesignating 
                clause (vi) as clause (v).
          (4) Additional indicators.--Section 136(b)(3)(B) is 
        amended by striking ``paragraph (2)(C)'' and inserting 
        ``paragraph (2)(B)''.
  (b) Local Performance Measures.--Section 136(c) (29 U.S.C. 
2871(c)) is amended--
          (1) in paragraph (1)(A)(i), by striking ``, and the 
        customer satisfaction indicator of performance 
        described in subsection (b)(2)(B),'';
          (2) in paragraph (1)(A)(ii), by striking ``subsection 
        (b)(2)(C)'' and inserting ``subsection (b)(2)(B)''; and
          (3) by amending paragraph (3) to read as follows:
          ``(3) Determinations.--In determining such local 
        levels of performance, the local board, the chief 
        elected official, and the Governor shall ensure such 
        levels are adjusted based on the specific economic 
        characteristics (such as unemployment rates and job 
        losses or gains in particular industries), demographic 
        characteristics, or other characteristics of the 
        population to be served in the local area, such as poor 
        work history, lack of work experience, dislocation from 
        high-wage employment, low levels of literacy or English 
        proficiency, disability status, including the number of 
        veterans with disabilities, and welfare dependency.''.
  (c) Report.--Section 136(d) (29 U.S.C. 2871(d)) is amended--
          (1) in paragraph (1), by striking ``and the customer 
        satisfaction indicator'' in both places that it 
        appears;
          (2) in paragraph (2)--
                  (A) in subparagraph (E), by striking 
                ``(excluding participants who received only 
                self-service and informational activities); 
                and'' and inserting a semicolon;
                  (B) in subparagraph (F), by striking the 
                period and inserting ``; and''; and
                  (C) by adding at the end the following:
                  ``(G) the number of participants who have 
                received services other than followup services, 
                authorized under this title, in the form of 
                work ready services described in section 
                134(d)(2), and training services described in 
                section 134(d)(4), respectively;
                  ``(H) the number of participants who have 
                received followup services authorized under 
                this title; and
                  ``(I) the cost per participant for services 
                authorized under this title.''; and
          (3) by adding at the end the following:
          ``(4) Data validation.--In preparing the reports 
        described in this subsection, the States shall 
        establish procedures, consistent with guidelines issued 
        by the Secretary, to ensure the information contained 
        in the report is valid and reliable.''.
  (d) Sanctions for State.--Section 136(g) (29 U.S.C. 2871(g)) 
is amended--
          (1) in paragraph (1)(A), by striking ``or (B)''; and
          (2) in paragraph (2), by striking ``section 503'' and 
        inserting ``section 136(i)''.
  (e) Sanctions for Local Areas.--Section 136(h) (29 U.S.C. 
2871(h)) is amended--
          (1) in paragraph (1), by striking ``or (B)''; and
          (2) by amending paragraph (2)(B) to read as follows:
                  ``(B) Appeal to governor.--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.''.
  (f) Incentive Grants.--Section 136(i) (29 U.S.C. 2871(i)) is 
amended to read as follows:
  ``(i) Incentive Grants for States and Local Areas.--
          ``(1) Incentive grants for states.--
                  ``(A) In general.--From funds appropriated 
                under section 174, the Secretary may award 
                incentive grants to States for exemplary 
                performance in carrying programs under chapters 
                4 and 5 of this title. Such awards may be based 
                on States meeting or exceeding the performance 
                measures established under this section, on the 
                performance of the State in serving special 
                populations, including the levels of service 
                provided and the performance outcomes, and such 
                other factors relating to the performance of 
                the State under this title as the Secretary 
                determines is appropriate.
                  ``(B) Use of funds.--The funds awarded to a 
                State under this paragraph may be used to carry 
                out any activities authorized under chapters 4 
                and 5 of this title, including--
                          ``(i) activities that provide 
                        technical assistance to local areas to 
                        replicate best practices for workforce 
                        and education programs;
                          ``(ii) activities that support the 
                        needs of businesses, especially for 
                        incumbent workers and enhancing 
                        opportunities for retention and 
                        advancement;
                          ``(iii) activities that support 
                        linkages between the workforce and 
                        education programs, and secondary, 
                        postsecondary, or career and technical 
                        education programs, including 
                        activities under the Carl D. Perkins 
                        Career and Technical Education Act (20 
                        U.S.C. 2301 et seq.), the Adult 
                        Education and Family Literacy Act (20 
                        U.S.C. 9201 et seq.), and the 
                        Rehabilitation Act of 1973 (29 U.S.C. 
                        701 et seq.);
                          ``(iv) activities that support 
                        regional economic development plans 
                        that support high-wage, high-skill, or 
                        high-demand occupations leading to 
                        self-sufficiency;
                          ``(v) activities that coordinate the 
                        workforce and education programs with 
                        other Federal and State programs 
                        related to the workforce and education 
                        programs;
                          ``(vi) activities that support the 
                        development of an integrated 
                        performance information system that 
                        includes common measures for one-stop 
                        partner programs described in section 
                        121;
                          ``(vii) activities that support 
                        activities to improve performance in 
                        workforce and education programs and 
                        program coordination of workforce and 
                        education programs; or
                          ``(viii) activities that leverage 
                        additional training resources, other 
                        than those provided through workforce 
                        and education programs, for adults and 
                        youth.
          ``(2) Incentive grants for local areas.--
                  ``(A) In general.--From funds reserved under 
                sections 128(a) and 133(a), the Governor may 
                award incentive grants to local areas for 
                exemplary performance with respect to the 
                measures established under this section and 
                with the performance of the local area in 
                serving special populations, including the 
                levels of service and the performance outcomes.
                  ``(B) Use of funds.--The funds awarded to a 
                local area may be used to carry out activities 
                authorized for local areas under chapters 4 and 
                5 of this title, the Adult Education and Family 
                Literacy Act, and the Rehabilitation Act of 
                1973 (referred to in this subsection as 
                `workforce and education programs'), and such 
                innovative projects or programs that increase 
                coordination and enhance service to 
                participants in such programs, particularly 
                hard-to-serve populations, as may be approved 
                by the Governor, including--
                          ``(i) activities that support the 
                        needs of businesses, especially for 
                        incumbent workers and enhancing 
                        opportunities for retention and 
                        advancement;
                          ``(ii) activities that support 
                        linkages between the workforce and 
                        education programs, and secondary, 
                        postsecondary, or career and technical 
                        education programs, including 
                        activities under the Carl D. Perkins 
                        Career and Technical Education Act (20 
                        U.S.C. 2301 et seq.), the Adult 
                        Education and Family Literacy Act (20 
                        U.S.C. 9201 et seq.), and the 
                        Rehabilitation Act of 1973 (29 U.S.C. 
                        701 et seq.);
                          ``(iii) activities that support 
                        regional economic development plans 
                        that support high-wage, high-skill, or 
                        high-demand occupations leading to 
                        self-sufficiency;
                          ``(iv) activities that coordinate the 
                        workforce and education programs with 
                        other Federal and State programs 
                        related to the workforce and education 
                        programs;
                          ``(v) activities that support the 
                        development of an integrated 
                        performance information system that 
                        includes common measures for one-stop 
                        partner programs described in section 
                        121;
                          ``(vi) activities that support 
                        activities to improve performance in 
                        workforce and education programs and 
                        program coordination of workforce and 
                        education programs; or
                          ``(vii) activities that leverage 
                        additional training resources, other 
                        than those provided through workforce 
                        and education programs, for adults and 
                        youth.''.
  (g) Use of Core Indicators for Other Programs.--Section 136 
(29 U.S.C. 2871) is further amended by adding at the end the 
following subsection:
  ``(j) Use of Core Indicators for Other Programs.--In addition 
to the programs carried out under chapters 4 and 5, and 
consistent with the requirements of the applicable authorizing 
laws, the Secretary shall use the core indicators of 
performance described in subsection (b)(2)(A) to assess the 
effectiveness of the programs described under section 
121(b)(1)(B) that are carried out by the Secretary.''.
  (h) Repeal of Definitions.--Sections 502 and 503 (and the 
items related to such sections in the table of contents) are 
repealed.

SEC. 424. AUTHORIZATION OF APPROPRIATIONS.

  (a) Youth Activities.--Section 137(a) (29 U.S.C. 2872(a)) is 
amended by striking ``such sums as may be necessary for each of 
fiscal years 1999 through 2003'' and inserting ``such sums as 
may be necessary for each of fiscal year 2008 through 2012''.
  (b) Adult Employment and Training Activities.--Section 137(b) 
(29 U.S.C. 2872(b)) is amended by striking ``section 132(a)(1), 
such sums as may be necessary for each of fiscal years 1999 
through 2003'' and inserting ``section 132(a), such sums as may 
be necessary for each of fiscal years 2008 through 2012''.
  (c) Dislocated Worker Employment and Training Activities.--
Section 137 is further amended by striking subsection (c).

SEC. 425. JOB CORPS.

  (a) Program Activities.--Section 148(a) is amended by 
striking paragraph (1) and inserting the following:
          ``(1) In general.--Each Job Corps Center shall 
        provide enrollees with an intensive, well organized, 
        and fully supervised program of education, career 
        training, work experience, recreational activities, 
        physical rehabilitation and development, and 
        counseling. Each Job Corps center shall provide 
        enrollees assigned to the center with access to work 
        ready services described in section 134(c)(2).''.
  (b) Industry Councils.--Section 154(b) (29 U.S.C. 2894(b)) is 
amended--
          (1) in paragraph (1)(A), by striking ``local and 
        distant''; and
          (2) by adding after paragraph (2) the following:
          ``(3) Employers outside of local areas.--The industry 
        council may include, or otherwise provide for 
        consultation with, employers from outside the local 
        area who are likely to hire a significant number of 
        enrollees from the Job Corps center.
          ``(4) Special rule for single local area states.--In 
        the case of a single local area State designated under 
        section 116(b), the industry council shall include a 
        representative of the State Board.''.
  (c) Indicators of Performance and Additional Information.--
Section 159(c) (29 U.S.C. 2893(c)) is amended--
          (1) by amending paragraph (1) to read as follows:
          ``(1) Core indicators.--The Secretary shall annually 
        establish expected levels of performance for Job Corps 
        centers and the Job Corps program relating to each of 
        the following core indicators of performance for 
        youth--
                  ``(A) entry into education, employment, 
                military service or advanced training;
                  ``(B) attainment of a secondary school 
                diploma, General Educational Development 
                credential (GED), or other State-recognized 
                equivalent; and
                  ``(C) literacy or numeracy gains.''; and
          (2) in paragraph (2), by striking ``measures'' each 
        place it appears and inserting ``indicators''.
  (d) Authorization of Appropriations.--Section 161 (29 U.S.C. 
2901) is amended by striking ``1999 through 2003'' and 
inserting ``2008 through 2012''.
  (e) Repeal of Requirement Relating to Federal 
Administration.--Section 102 of the Departments of Labor, 
Health and Human Services, and Education, and Related Agencies 
Appropriations Act, 2006 (Public Law 109-149) is repealed.

SEC. 426. NATIVE AMERICAN PROGRAMS.

  (a) Advisory Council.--Section 166(h)(4)(C) (29 U.S.C. 
2911(h)(4)(C)) is amended to read as follows:
                  ``(C) Duties.--The Council shall advise the 
                Secretary on the operation and administration 
                of the programs assisted under this section.''.
  (b) Assistance to American Samoans in Hawaii.--Section 166 
(29 U.S.C. 2911) is further amended by striking subsection (j).

SEC. 427. MIGRANT AND SEASONAL FARMWORKER PROGRAMS.

  Section 167(d) is amended by inserting ``(including permanent 
housing)'' after ``housing''.

SEC. 428. VETERANS' WORKFORCE INVESTMENT PROGRAMS.

  Section 168(a)(3)(C) (29 U.S.C. 2913 (a)(3)(C)) is amended by 
striking ``section 134(c)'' and inserting ``section 121(e)''.

SEC. 429. YOUTH CHALLENGE GRANTS.

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

``SEC. 169. YOUTH CHALLENGE GRANTS.

  ``(a) In General.--Of the amounts reserved by the Secretary 
under section 127(a)(1)(A) for a fiscal year--
          ``(1) the Secretary shall use not less than 80 
        percent to award competitive grants under subsection 
        (b); and
          ``(2) the Secretary may use not more than 20 percent 
        to award discretionary grants under subsection (c).
  ``(b) Competitive Grants to States and Local Areas.--
          ``(1) Establishment.--From the funds described in 
        subsection (a)(1), the Secretary shall award 
        competitive grants to eligible entities to carry out 
        activities authorized under this section to assist 
        eligible youth in acquiring the skills, credentials and 
        employment experience necessary to succeed in the labor 
        market.
          ``(2) Eligible entities.--Grants under this 
        subsection may be awarded to States, local boards, 
        recipients of grants under section 166 (relating to 
        Native American programs), and public or private 
        entities (including consortia of such entities) 
        applying in conjunction with local boards.
          ``(3) Grant period.--The Secretary may make a grant 
        under this section for a period of 1 year and may renew 
        the grants for each of the 4 succeeding years.
          ``(4) Authority to require match.--The Secretary may 
        require that grantees under this subsection provide a 
        non-Federal share of the cost of activities carried out 
        under a grant awarded under this subsection.
          ``(5) Participant eligibility.--Youth ages 14 through 
        19 as of the time the eligibility determination is made 
        may be eligible to participate in activities provided 
        under this subsection.
          ``(6) Use of funds.--Funds under this subsection may 
        be used for activities that are designed to assist 
        youth in acquiring the skills, credentials and 
        employment experience that are necessary to succeed in 
        the labor market, including the activities identified 
        in section 129. The activities may include activities 
        such as--
                  ``(A) training and internships for out-of-
                school youth in sectors of the economy 
                experiencing or projected to experience high 
                growth;
                  ``(B) after-school dropout prevention 
                activities for in-school youth;
                  ``(C) activities designed to assist special 
                youth populations, such as court-involved youth 
                and youth with disabilities; and
                  ``(D) activities combining remediation of 
                academic skills, work readiness training, and 
                work experience, and including linkages to 
                postsecondary education, apprenticeships, and 
                career-ladder employment.
          ``(7) Applications.--To be eligible to receive a 
        grant under this subsection, an eligible entity shall 
        submit an application to the Secretary at such time, in 
        such manner, and containing such information as the 
        Secretary may require, including--
                  ``(A) a description of the activities the 
                eligible entity will provide to eligible youth 
                under this subsection and how the eligible 
                entity will collaborate with State and local 
                workforce investment systems established under 
                this title in the provisions of such 
                activities;
                  ``(B) a description of the programs of 
                demonstrated effectiveness on which the 
                provision of the activities under subparagraph 
                (A) are based, and a description of how such 
                activities will expand the base of knowledge 
                relating to the provision of activities for 
                youth;
                  ``(C) a description of the private and 
                public, and local and State resources that will 
                be leveraged to provide the activities 
                described under subparagraph (A) in addition to 
                the funds provided under this subsection and a 
                description of the extent of the involvement of 
                employers in the activities; and
                  ``(D) the levels of performance the eligible 
                entity expects to achieve with respect to the 
                indicators of performance for youth specified 
                in section 136(b)(2)(A)(ii).
          ``(8) Factors for award.--
                  ``(A) In general.--In awarding grants under 
                this subsection the Secretary shall consider--
                          ``(i) the quality of the proposed 
                        activities;
                          ``(ii) the goals to be achieved;
                          ``(iii) the likelihood of successful 
                        implementation;
                          ``(iv) the extent to which the 
                        proposed activities are based on proven 
                        strategies or the extent to which the 
                        proposed activities will expand the 
                        base of knowledge relating to the 
                        provision of activities for eligible 
                        youth;
                          ``(v) the extent of collaboration 
                        with the State and local workforce 
                        investment systems in carrying out the 
                        proposed activities;
                          ``(vi) the extent of employer 
                        involvement in the proposed activities;
                          ``(vii) whether there are other 
                        Federal and non-Federal funds available 
                        for similar activities to the proposed 
                        activities, and the additional State, 
                        local, and private resources that will 
                        be provided to carry out the proposed 
                        activities;
                          ``(viii) the quality of the proposed 
                        activities in meeting the needs of the 
                        eligible youth to be served; and
                          ``(ix) the extent to which the 
                        proposed activities will expand on 
                        services provided under section 127.
                  ``(B) Equitable geographic distribution.--In 
                awarding grants under this subsection the 
                Secretary shall ensure an equitable 
                distribution of such grants across 
                geographically diverse areas.
          ``(9) Evaluation.--The Secretary may reserve up to 5 
        percent of the funds described in subsection(a)(1) to 
        provide technical assistance to, and conduct 
        evaluations of the projects funded under this 
        subsection (using appropriate techniques as described 
        in section 172(c)).
  ``(c) Discretionary Grants for Youth Activities.--
          ``(1) In general.--From the funds described in 
        subsection(a)(2), the Secretary may award grants to 
        eligible entities to provide activities that will 
        assist youth in preparing for, and entering and 
        retaining, employment.
          ``(2) Eligible entities.--Grants under this 
        subsection may be awarded to public or private entities 
        that the Secretary determines would effectively carry 
        out activities relating to youth under this subsection.
          ``(3) Participant eligibility.--Youth ages 14 through 
        19 at the time the eligibility determination is made 
        may be eligible to participate in activities under this 
        subsection.
          ``(4) Use of funds.--Funds provided under this 
        subsection may be used for activities that will assist 
        youth in preparing for, and entering and retaining, 
        employment, including the activities described in 
        section 129 for out-of-school youth, activities 
        designed to assist in-school youth to stay in school 
        and gain work experience, and such other activities 
        that the Secretary determines are appropriate.
          ``(5) Applications.--To be eligible to receive a 
        grant under this subsection, an eligible entity shall 
        submit an application to the Secretary at such time, in 
        such manner, and containing such information as the 
        Secretary may require.
          ``(6) Additional requirements.--The Secretary may 
        require the provision of a non-Federal share for 
        projects funded under this subsection and may require 
        participation of grantees in evaluations of such 
        projects, including evaluations using the techniques as 
        described in section 172(c).''.
  (b) Clerical Amendment.--The table of contents in section 
1(b) is amended by amending the item related to section 169 to 
read as follows:

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

SEC. 430. TECHNICAL ASSISTANCE.

  Section 170 (29 U.S.C. 2915) is amended--
          (1) by striking subsection (b);
          (2) by striking
  ``(a) General Technical Assistance.--'';
          (3) by redesignating paragraphs (1), (2), and (3) as 
        subsections (a), (b), and (c) respectively, and moving 
        such subsections 2 ems to the left;
          (4) in subsection (a) (as redesignated by paragraph 
        (3))--
                  (A) by inserting ``the training of staff 
                providing rapid response services, the training 
                of other staff of recipients of funds under 
                this title, peer review activities under this 
                title, assistance regarding accounting and 
                program operation practices (when such 
                assistance would not be duplicative to 
                assistance provided by the State), technical 
                assistance to States that do not meet State 
                performance measures described in section 
                136,'' after ``localities,''; and
                  (B) by striking ``from carrying out 
                activities'' and all that follows up to the 
                period and inserting ``to implement the 
                amendments made by the Workforce Investment 
                Improvement Act of 2007''; and
          (5) by inserting, after subsection (c) (as 
        redesignated by paragraph (3)), the following:
  ``(d) Best Practices Coordination.--The Secretary shall--
          ``(1) establish a system through which States may 
        share information regarding best practices with regard 
        to the operation of workforce investment activities 
        under this Act;
          ``(2) evaluate and disseminate information regarding 
        best practices and identify knowledge gaps; and
          ``(3) commission research under section 171(c) to 
        address knowledge gaps identified under paragraph 
        (2).''.

SEC. 431. DEMONSTRATION, PILOT, MULTISERVICE, RESEARCH AND MULTI-STATE 
                    PROJECTS.

  (a) Demonstration and Pilot Projects.--Section 171(b) (29 
U.S.C. 2916(b)) is amended--
          (1) in paragraph (1)--
                  (A) by striking ``Under a'' and inserting 
                ``Consistent with the priorities specified in 
                the'';
                  (B) by amending subparagraphs (A) through (D) 
                to read as follows:
                  ``(A) projects that assist national employers 
                in connecting with the workforce investment 
                system established under this title in order to 
                facilitate the recruitment and employment of 
                needed workers and to provide information to 
                such system on skills and occupations in 
                demand;
                  ``(B) projects that promote the development 
                of systems that will improve the effectiveness 
                and efficiency of programs carried out under 
                this title;
                  ``(C) projects that focus on opportunities 
                for employment in industries and sectors of 
                industries that are experiencing or are likely 
                to experience high rates of growth, including 
                those relating to information technology;
                  ``(D) projects carried out by States and 
                local areas to test innovative approaches to 
                delivering employment-related services;'';
                  (C) by striking subparagraph (E);
                  (D) by redesignating subparagraphs (F) and 
                (G) as subparagraphs (E) and (F), respectively;
                  (E) in subparagraph (F) (as so redesignated, 
                by striking ``; and'' and inserting a 
                semicolon;
                  (F) by inserting after subparagraph (F) (as 
                so redesignated) the following:
                  ``(G) projects carried out by States and 
                local areas to assist adults or out of school 
                youth in starting a small business, including 
                training and assistance in business or 
                financial management or in developing other 
                skills necessary to operate a business;''; and
                  (G) by amending subparagraph (H) to read as 
                follows:
                  ``(H) projects that focus on opportunities 
                for employment in industries and sectors of 
                industries that are being transformed by 
                technology and innovation requiring new 
                knowledge or skill sets for workers, including 
                advanced manufacturing; and''; and
          (2) in paragraph (2)--
                  (A) by striking subparagraph (B); and
                  (B) by redesignating subparagraph (C) as 
                subparagraph (B).
  (b) Multiservice Projects.--Section 171(c)(2)(B) (29 U.S.C. 
2916(c)(2)(B)) is amended to read as follows:
                  ``(B) Net impact studies and reports.--The 
                Secretary shall conduct studies to determine 
                the net impacts of programs, services, and 
                activities carried out under this title. The 
                Secretary shall prepare and disseminate to 
                Congress and the public reports containing the 
                results of such studies.''.

SEC. 432. COMMUNITY-BASED JOB TRAINING.

  Section 171(d) is amended to read as follows:
  ``(d) Community-Based Job Training.--
          ``(1) Demonstration project.--In addition to the 
        demonstration projects under subsection (b), the 
        Secretary may establish and implement a national 
        demonstration project designed to develop local 
        solutions to the workforce challenges facing high-
        growth, high-skill industries with labor shortages, and 
        increase opportunities for workers to gain access to 
        employment in high-growth, high-demand occupations by 
        promoting the establishment of partnerships among 
        education entities, the workforce investment system, 
        and businesses in high-growth, high-skill industries.
          ``(2) Grants.--In carrying out the demonstration 
        project under this subsection, the Secretary shall 
        award competitive grants, in accordance with generally 
        applicable Federal requirements, to eligible entities 
        to carry out activities authorized under this 
        subsection.
          ``(3) Definitions.--
                  ``(A) Eligible entity.--In this subsection, 
                the term `eligible entity' means a community 
                college or consortium of community colleges 
                that shall work in conjunction with--
                          ``(i) the local workforce investment 
                        system; and
                          ``(ii) business or businesses in a 
                        qualified industry or an industry 
                        association in a qualified industry.
                  ``(B) Qualified industry.--In this 
                subsection, the term `qualified industry' means 
                an industry or economic sector that is 
                projected to experience significant growth, 
                such as an industry and economic sector that--
                          ``(i) is projected to add substantial 
                        numbers of new jobs to the economy;
                          ``(ii) has significant impact on the 
                        economy;
                          ``(iii) impacts the growth of other 
                        industries and economic sectors;
                          ``(iv) is being transformed by 
                        technology and innovation requiring new 
                        knowledge or skill sets for workers;
                          ``(v) is a new or emerging industry 
                        or economic sector that is projected to 
                        grow; or
                          ``(vi) has high-skilled occupations 
                        and significant labor shortages in the 
                        local area.
                  ``(C) Community college.--As used in this 
                subsection, the term `community college' means 
                an institution of higher education, as defined 
                in section 101 of the Higher Education Act of 
                1965 (20 U.S.C. 1001), that provides not less 
                than a 2-year program that is acceptable for 
                full credit toward a bachelor's degree, or is a 
                tribally controlled college or university.
          ``(4) Authority to require non-federal share.--The 
        Secretary may require that recipients of grants under 
        this subsection provide a non-Federal share, from 
        either cash or noncash resources, of the costs of 
        activities carried out under a grant awarded under this 
        subsection.
          ``(5) Use of funds.--Grants awarded under this 
        subsection may be used for--
                  ``(A) the development, by a community 
                college, in consultation with representatives 
                of qualified industries, of rigorous training 
                and education programs related to employment in 
                a qualified industry identified in the eligible 
                entity's application;
                  ``(B) training of adults and dislocated 
                workers in the skills and competencies needed 
                to obtain or upgrade employment in a qualified 
                industry identified in the eligible entity's 
                application;
                  ``(C) disseminating to adults and dislocated 
                workers, through the one-stop delivery system, 
                information on high-growth, high-demand 
                occupations in qualified industries;
                  ``(D) placing, through the one-stop delivery 
                system, trained individuals into employment in 
                qualified industries; and
                  ``(E) increasing the integration of community 
                colleges with activities of businesses and the 
                one-stop delivery system to meet the training 
                needs for qualified industries.
          ``(6) Applications.--To be eligible to receive a 
        grant under this subsection, an eligible entity shall 
        submit an application to the Secretary at such time, in 
        such manner, and containing such information as the 
        Secretary may require, including--
                  ``(A) a description of the eligible entity 
                that will offer training under the grant;
                  ``(B) an economic analysis of the local labor 
                market to identify high-growth, high-demand 
                industries, identify the workforce issues faced 
                by those industries, and potential participants 
                in programs funded under this subsection;
                  ``(C) a description of the qualified industry 
                for which training will occur and the 
                availability of competencies on which training 
                will be based and how the grant will help 
                workers acquire the competencies and skills 
                necessary for employment;
                  ``(D) an assurance that the application was 
                developed in consultation with the local board 
                or boards and businesses, including small 
                businesses, in the geographic area or areas 
                where the proposed grant will be used;
                  ``(E) performance measures for the grant, 
                including expected number of individuals to be 
                trained in a qualified industry, the employment 
                and retention rates for such individuals in a 
                qualified industry, and earnings increases for 
                such individuals;
                  ``(F) a description of how the activities 
                funded by the proposed grant will be 
                coordinated with activities provided through 
                the one-stop delivery system in the local area 
                or areas; and
                  ``(G) a description of any local or private 
                resources that will support the activities 
                carried out under this subsection and allow the 
                entity to carry out and expand such activities 
                after the expiration of the grant.
          ``(7) Factors for award of grant.--
                  ``(A) In general.--In awarding grants under 
                this subsection the Secretary shall consider--
                          ``(i) the extent of public and 
                        private collaboration, including 
                        existing partnerships among industries, 
                        community colleges, and the public 
                        workforce investment system;
                          ``(ii) the extent to which the grant 
                        will provide job seekers with 
                        employment opportunities in high-
                        growth, high-demand occupations;
                          ``(iii) the extent to which the grant 
                        will expand the eligible entity and 
                        local one-stop delivery system's 
                        capacity to be demand-driven and 
                        responsive to local economic needs;
                          ``(iv) the extent to which local 
                        businesses commit to hire or retain 
                        individuals who receive training 
                        through the grant; and
                          ``(v) the extent to which the 
                        eligible entity commits to make any 
                        newly developed products, such as 
                        competencies or training curriculum, 
                        available for distribution nationally.
                  ``(B) Leveraging of resources.--In awarding 
                grants under this subsection, the Secretary 
                shall also consider--
                          ``(i) the extent to which local or 
                        private resources, in addition to the 
                        funds provided under this subsection, 
                        will be made available to support the 
                        activities carried out under this 
                        subsection; and
                          ``(ii) the ability of an eligible 
                        entity to continue to carry out and 
                        expand such activities after the 
                        expiration of the grant.
                  ``(C) Distribution of grants.--In awarding 
                grants under this subsection the Secretary 
                shall ensure an equitable distribution of such 
                grants across geographically diverse areas.
          ``(8) Performance accountability and evaluation.--
                  ``(A) Performance accountability.--The 
                Secretary shall require an eligible entity that 
                receives a grant under this subsection to 
                report to the Secretary on the employment 
                outcomes obtained by individuals receiving 
                training under this subsection using the 
                indicators of performance identified in the 
                eligible entity's grant application.
                  ``(B) Evaluation.--The Secretary may require 
                that an eligible entity that receives a grant 
                under this subsection participate in an 
                evaluation of activities carried out under this 
                subsection, including an evaluation using the 
                techniques described in section 172(c).''.

SEC. 433. EVALUATIONS.

  (a) Impact Analysis.--Section 172(a)(4) (29 U.S.C. 
2917(a)(4)) is amended to read as follows:
          ``(4) the impact of receiving services and not 
        receiving services under such programs and activities 
        on the community, businesses, and individuals;''; and
  (b) Techniques.--Section 172(c) (29 U.S.C. 2917(c)) is 
amended to read as follows:
  ``(c) Techniques.--Evaluations conducted under this section 
shall utilize appropriate and rigorous methodology and research 
designs, including the use of control groups chosen by 
scientific random assignment methodologies, quasi-experimental 
methods, impact analysis and the use of administrative data. 
The Secretary shall conduct an impact analysis, as described in 
subsection (a)(4), of the formula grant programs under subtitle 
B not later than 2010, and thereafter shall conduct such an 
analysis not less than once every four years.''.

SEC. 434. NATIONAL DISLOCATED WORKER GRANTS.

  (a) In General.--Section 173 (29 U.S.C. 2916) is amended--
          (1) by amending the designation and heading to read 
        as follows:

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

        and
          (2) in subsection (a)--
                  (A) by striking ``national emergency grants'' 
                in the matter preceding paragraph (1) and 
                inserting ``national dislocated worker 
                grants''; and
                  (B) in paragraph (1), by striking 
                ``subsection (c)'' and inserting ``subsection 
                (b)''.
          (3) by striking subsections (b) and (e) and 
        redesignating subsections (c), (d), (f), and (g) as 
        subsections (b) through (e), respectively;
          (4) in subsection (b)(1)(B) as so redesignated), by 
        striking ``, and other entities'' and all that follows 
        and inserting a period; and
          (5) in subsection (b)(2)(A) (as so redesignated)--
                  (A) in clause (iii), by striking ``; or'' and 
                inserting a semicolon;
                  (B) in clause (iv)(IV) by striking the period 
                and inserting ``; or''; and
                  (C) by inserting at the end the following:
                          ``(v) is the spouse of a member of 
                        the Armed Forces who is on active duty 
                        or full-time National Guard duty, or 
                        who was recently separated from such 
                        duties, and such spouse is in need of 
                        employment and training assistance to 
                        obtain or retain employment.''.
  (b) Conforming Amendment.--The table of contents in section 
1(b) is amended by amending the item related to section 173 to 
read as follows:

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

SEC. 435. AUTHORIZATION OF APPROPRIATIONS FOR NATIONAL ACTIVITIES.

  (a) In General.--Section 174(a)(1) (29 U.S.C. 2919(a)(1)) is 
amended by striking ``1999 through 2003'' and inserting ``2008 
through 2012''.
  (b) Reservations.--Section 174(b) is amended to read as 
follows:
  ``(b) Technical Assistance; Demonstration and Pilot Projects; 
Evaluations; Incentive Grants.--
          ``(1) Demonstration and pilot projects.--There are 
        authorized to be appropriated to carry out section 171, 
        such sums as may be necessary for fiscal years 2008 
        through 2012.
          ``(2) Technical assistance, evaluations.--There are 
        authorized to be appropriated to carry out section 170, 
        section 172, and section 136 such sums as may be 
        necessary for each of fiscal years 2008 through 
        2012.''.

SEC. 436. REQUIREMENTS AND RESTRICTIONS.

  (a) In General.--Section 181(c)(2)(A) (29 U.S.C. 
2931(c)(2)(A)) is amended in the matter preceding clause (i) by 
striking ``shall'' and inserting ``may''.
  (b) Limitations.--Section 181(e) (29 U.S.C. 2931(e)) is 
amended by striking ``training for'' and inserting ``the entry 
into employment, retention in employment, or increases in 
earnings of''.
  (c) Salary Cap.--Section 181 (29 U.S.C. 2931) is further 
amended by adding at the end the following new subsection:
  ``(g) Salary and Bonus Limitation.--No funds provided under 
this title shall be used by a recipient or subrecipient of such 
funds to pay the salary and bonuses of an individual, either as 
direct costs or indirect costs, at a rate in excess of Level II 
of the Federal Executive Pay Schedule (5 U.S.C. 5313). This 
limitation shall not apply to vendors providing goods and 
services as defined in OMB Circular A-133. Where States are 
recipients of such funds, States may establish a lower limit 
for salaries and bonuses of those receiving salaries and 
bonuses from subrecipients 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 programs.''.
  (d) Reports to Congress.--Section 185 (29 U.S.C. 2935) is 
amended--
          (1) in subsection (c)--
                  (A) in paragraph (2), by striking ``and'' 
                after the semicolon;
                  (B) in paragraph (3), by striking the period 
                and inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(4) shall have the option to submit or disseminate 
        electronically any reports, records, plans, or any 
        other data that are required to be collected or 
        disseminated under this title.''; and
          (2) in paragraph (e)(2), by inserting ``and the 
        Secretary shall submit to the Committee on Education 
        and Labor of the House of Representatives and the 
        Committee on Health, Education, Labor, and Pensions of 
        the Senate,'' after ``Secretary,''.

SEC. 437. NONDISCRIMINATION.

  Section 188(a)(2) (29 U.S.C. 2931(a)(2)) is amended to read 
as follows:
          ``(2) Prohibition of discrimination regarding 
        participation, benefits, and employment.--
                  ``(A) In general.--Except as provided in 
                subparagraph (B), 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.
                  ``(B) Exemption for religious 
                organizations.--Subparagraph (A) shall not 
                apply to a recipient of financial assistance 
                under this title that is a religious 
                corporation, association, educational 
                institution, or society, with respect to the 
                employment of individuals of a particular 
                religion to perform work connected with the 
                carrying on by such corporation, association, 
                educational institution, or society of its 
                activities. Such recipients shall comply with 
                the other requirements contained in 
                subparagraph (A).''.

SEC. 438. ADMINISTRATIVE PROVISIONS.

  (a) Program Year.--Section 189(g)(1) (29 U.S.C. 2939(g)(1)) 
is amended to read as follows:
          ``(1) In general.--Appropriations for any fiscal year 
        for programs and activities carried out under this 
        title shall be available for obligation only on the 
        basis of a program year. The program year shall begin 
        on July 1 in the fiscal year for which the 
        appropriation is made.''.
  (b) Availability.--Section 189(g)(2) (29 U.S.C. 2939(g)(2)) 
is amended by striking ``each State'' and inserting ``each 
recipient''.
  (c) General Waivers.--Section 189(i)(4) (29 U.S.C. 
2939(i)(4)) is amended--
          (1) in subparagraph (A)--
                  (A) in the matter preceding clause (i), by 
                inserting ``, or in accordance with 
                subparagraph (D)'' after ``subparagraph (B)''; 
                and
                  (B) by striking clause (ii), the clause (i) 
                designation and the dash preceding such 
                designation, and moving the remaining text 
                flush with the preceding matter; and
          (2) by adding the following subparagraph:
                  ``(D) Expedited process for extending 
                approved waivers to additional states.--In lieu 
                of the requirements of subparagraphs (B) and 
                (C), the Secretary may establish an expedited 
                procedure for the purpose of extending to 
                additional States the waiver of statutory or 
                regulatory requirements that have been approved 
                for a State pursuant to a request under 
                subparagraph (B). Such procedure shall ensure 
                that the extension of such waivers to 
                additional States are accompanied by 
                appropriate conditions relating the 
                implementation of such waivers.''.

SEC. 439. STATE LEGISLATIVE AUTHORITY.

  Section 191is amended--
          (1) in subsection (a), by striking ``consistent with 
        the provisions of this title'' and inserting 
        ``consistent with State law and the provisions of this 
        title''; and
          (2) in subsection (a), by striking ``consistent with 
        the terms and conditions required under this title'' 
        and inserting ``consistent with State law and the terms 
        and conditions required under this title''.

SEC. 440. WORKFORCE INNOVATION IN REGIONAL ECONOMIC DEVELOPMENT.

  (a) Workforce Innovation in Regional Economic Development.--
Section 192 (29 U.S.C. 2942) is amended to read as follows:

``SEC. 192. WORKFORCE INNOVATION IN REGIONAL ECONOMIC DEVELOPMENT.

  ``(a) Workforce Innovation in Regional Economic Development 
Plans.--
          ``(1) In general.--The Secretary, in cooperation with 
        other federal agency heads responsible for the 
        administration of programs included in plans submitted 
        under this subsection, may approve Workforce Innovation 
        in Regional Economic Development (in this subsection 
        referred to as WIRED) plans submitted by a State 
        pursuant to paragraph (2) to support the development of 
        regional economies in order to foster economic 
        development, expand employment, and advancement 
        opportunities for workers and to promote the creation 
        of high-skill and high-wage opportunities.
          ``(2) Contents of plan.--To have a WIRED plan 
        approved under this subsection, a State and the region 
        or regions identified in subparagraph (A) shall jointly 
        submit a plan to the Secretary at such time, in such 
        manner, and containing such information as the 
        Secretary may require, including--
                  ``(A) the identification of the multi-county 
                region or regions that is to be the focus of 
                the activities provided under the plan, 
                including identification of the communities in 
                the region that share common characteristics, 
                and a description of why the selected area 
                comprises a regional economy;
                  ``(B) a description of the broad-based 
                regional partnership that has been created for 
                the region identified in subparagraph (A) 
                representing the major assets of the region, 
                consistent with the requirements of paragraph 
                (3), and that will assist in developing the 
                economic vision described in subparagraph (D), 
                the strategies described in subparagraph (E), 
                and provide a forum for regional economic 
                decision-making, including a description of the 
                partnership's involvement, particularly that of 
                representatives of affected local boards and 
                chief elected officials, in the development of 
                the plan;
                  ``(C) a description of the assets of the 
                region identified in subparagraph (A), based on 
                a regional assessment, and identification of 
                the strengths, weaknesses, opportunities, and 
                risks based on those assets;
                  ``(D) a description of an economic vision for 
                the region identified in subparagraph (A), 
                based on the identified strengths and assets 
                described in subparagraph (C), and evidence of 
                support for that vision from the broad-based 
                regional partnership described in subparagraph 
                (B);
                  ``(E) a description of the talent development 
                and related strategies that provide a blueprint 
                for how to achieve the economic vision for the 
                region as described in subparagraph (D), 
                including the activities to be carried out 
                under this subsection, consistent with 
                paragraphs (5) and (6), and the identification 
                of specific goals associated with those 
                strategies;
                  ``(F) information on the workforce 
                development programs to be integrated in the 
                region, in accordance with the requirements of 
                paragraph (4), into an integrated workforce 
                development program, including--
                          ``(i) identification of the programs 
                        to be integrated;
                          ``(ii) the amount and proportion of 
                        the resources available to the region 
                        under each of the integrated programs 
                        to carry out the strategies described 
                        in subparagraph (E);
                          ``(iii) a description of how these 
                        resources will be used to accomplish 
                        the vision identified in subparagraph 
                        (D), including the services to be 
                        provided and how such services will be 
                        provided, consistent with clause (iv) 
                        and paragraph (5);
                          ``(iv) assurances that in carrying 
                        out the wired plan--
                                  ``(I) the region, through the 
                                integrated workforce 
                                development program, will 
                                maintain a local workforce 
                                investment board, or a regional 
                                workforce investment board, 
                                that is substantially similar 
                                to the local workforce 
                                investment boards required 
                                under section 117 of this Act, 
                                that such board will carry out 
                                functions that are 
                                substantially similar to those 
                                described under section 117(d), 
                                and, that such region shall 
                                submit to the State for 
                                approval a local plan for the 
                                region that is substantially 
                                similar to the local plans 
                                required under section 118 of 
                                this Act;
                                  ``(II) the region, through 
                                the integrated workforce 
                                development program, will 
                                maintain a one-stop delivery 
                                system that is consistent with 
                                the requirements of section 121 
                                of this Act;
                                  ``(III) the region, through 
                                the integrated workforce 
                                development program, will serve 
                                populations consistent with the 
                                populations served by the 
                                programs being integrated, and 
                                will provide universal access 
                                to work ready services as 
                                described in section 134(d)(2) 
                                of this Act;
                                  ``(IV) the region, in 
                                carrying out the integrated 
                                workforce development program, 
                                will comply with the veterans' 
                                priority of service requirement 
                                under section 4215 of title 38, 
                                United States Code;
                                  ``(V) of the funds expended 
                                under the integrated workforce 
                                development program each year, 
                                not more than 10 percent of 
                                such funds will be expended on 
                                the costs of administration (as 
                                defined by the Secretary);
                                  ``(VI) the services provided 
                                under the integrated workforce 
                                development program will be 
                                coordinated with employment-
                                related programs not included 
                                under the integrated workforce 
                                program;
                                  ``(VII) the region, in 
                                carrying out the integrated 
                                workforce development program, 
                                will comply with requirements 
                                under this title relating to 
                                wage and labor standards 
                                (including nondisplacement 
                                provisions), grievance 
                                procedures and judicial review, 
                                and nondiscrimination;
                  ``(G) an assurance that each local workforce 
                board and chief elected official included in 
                the region that will carry out the integrated 
                workforce development plan has approved the 
                plan;
                  ``(H) information on the community and 
                economic development programs, if any, that 
                will provide a portion of funds that will be 
                integrated to carry out the strategies 
                described in subparagraph (E), in accordance 
                with the requirements of paragraph (6), 
                including--
                          ``(i) identification of the included 
                        community and economic development 
                        programs;
                          ``(ii) the amount and proportion of 
                        the resources available to the State 
                        under each such program that will be 
                        used in the region to carry out the 
                        strategies described in subparagraph 
                        (E);
                          ``(iii) a description of how these 
                        resources will be used to assist in 
                        accomplishing the vision identified in 
                        subparagraph (D), including the 
                        activities to be carried out;
                  ``(I) in addition to the resources described 
                under subparagraphs (F) and (G), identification 
                of other resources that will be used to support 
                the strategies of the region described in 
                subparagraph (E), from a wide range of sources, 
                including foundations, private investment such 
                as venture capital, and federal, state, and 
                local governments.
          ``(3) Broad-based regional partnership.--For purposes 
        of this subsection, a broad-based regional 
        partnership--
                  ``(A) shall include--
                          ``(i) representatives from each of 
                        the local workforce investment systems 
                        in the region identified under 
                        paragraph (2)(A), such as the 
                        chairpersons or executive directors of 
                        affected local workforce investment 
                        boards in such region;
                          ``(ii) representatives of the 
                        education system in the region 
                        identified under paragraph (2)(A), 
                        including representatives from each of 
                        the following:
                                  ``(I) The K-12 public school 
                                systems;
                                  ``(II) Community colleges; 
                                and
                                  ``(III) Four-year educational 
                                institutions;
                          ``(iii) representatives of businesses 
                        and industry associations in the region 
                        identified under paragraph (2)(A);
                          ``(iv) the chief elected officials 
                        from each of the affected local areas 
                        identified under paragraph (2)(A); and
                          ``(v) representatives of local and 
                        regional economic development agencies 
                        in the region identified under 
                        paragraph (2)(A); and
                  ``(B) may include--
                          ``(i) representatives of the 
                        philanthropic community;
                          ``(ii) representatives of 
                        postsecondary education and training 
                        providers in addition to those 
                        described in subparagraph (A)(ii);
                          ``(iii) representatives of private 
                        investment entities such as seed and 
                        venture capital organizations; investor 
                        networks; and entrepreneurs;
                          ``(iv) representatives of faith and 
                        community-based organizations; and
                          ``(v) representatives of such other 
                        Federal, state or local entities and 
                        organizations that may enhance the 
                        carrying out of the activities of the 
                        partnership.
          ``(4) Integration of workforce development services 
        authorized.--
                  ``(A) Authorization for integration.--In 
                carrying out this subsection, the Secretary of 
                Labor, in cooperation with the federal agency 
                heads responsible for the administration of the 
                workforce development programs described in 
                subparagraph (D) that are included in the WIRED 
                plan submitted by the State, shall, upon the 
                approval of the plan submitted under paragraph 
                (2), authorize the State to integrate programs 
                as described in subparagraph (B).
                  ``(B) Integration.--The authorization shall 
                give the State the authority to integrate, in 
                accordance with such approved plan, the 
                federally-funded programs described in 
                subparagraph (D) that are included in the 
                approved plan, in a manner that integrates 
                those programs into a single, coordinated, 
                comprehensive workforce development program to 
                achieve the economic vision identified in such 
                plan for the region.
                  ``(C) Effect on program requirements.--The 
                provisions of the approved grant application 
                and the requirements of this subsection shall 
                supersede the requirements of the statutes 
                authorizing the programs included for 
                integration in such approved plan, except as 
                otherwise specified in this subsection.
                  ``(D) Included workforce development 
                programs.--
                          ``(i) Mandatory programs.--A WIRED 
                        plan authorized under this subsection 
                        shall include the workforce investment 
                        activities for adults authorized under 
                        chapter 5 of subtitle B.
                          ``(ii) Additional programs.--In 
                        addition to the integration of the 
                        programs described in clause (i) into a 
                        single program, a WIRED plan may 
                        include integration of one or more of 
                        the following programs as part of such 
                        single program--
                                  ``(I) the program of 
                                workforce investment activities 
                                for youth authorized under 
                                chapter 4 of subtitle B; or
                                  ``(II) any of the other 
                                required one-stop partner 
                                programs and activities 
                                described in section 
                                121(b)(1)(B) of this Act.
          ``(5) Workforce development activities to be carried 
        out under wired plan.--The workforce development 
        activities carried out under a WIRED plan may include--
                  ``(A) job training and related activities for 
                workers to assist them in gaining the skills 
                and competencies needed to obtain or upgrade 
                employment in industries or economic sectors 
                projected to experience significant growth in 
                the region identified in paragraph (2)(A), 
                including--
                          ``(i) activities supporting talent 
                        development related to entrepreneurship 
                        and small business development; and
                          ``(ii) the purchase of equipment to 
                        train job seekers and workers for high-
                        growth occupations;
                  ``(B) activities to enhance the training and 
                related activities described in subparagraph 
                (A) and to promote workforce development in the 
                region identified in paragraph (2)(A), 
                including--
                          ``(i) the development and 
                        implementation of model activities, 
                        such as developing appropriate 
                        curricula to build core competencies 
                        and train workers in the region;
                          ``(ii) identifying and disseminating 
                        career and skill information relating 
                        to the region;
                          ``(iii) developing or purchasing 
                        regional data tools or systems to 
                        deepen understanding of the regional 
                        economy and labor market; and
                          ``(iv) integrated regional planning, 
                        such as increasing the integration of 
                        community and technical college 
                        activities with activities of 
                        businesses and the public workforce 
                        investment system to meet the training 
                        needs of high growth industries in the 
                        region.
                  ``(C) appropriate employment-related 
                activities and services authorized under the 
                workforce development programs that are 
                integrated under the plan in accordance with 
                paragraphs (2)(F) and (4) that will assist 
                achieving the economic vision described in 
                paragraph (2)(D) and in implementing the 
                strategies described in paragraph (2)(E).
          ``(6) Integration of community and economic 
        development funds authorized.--
                  ``(A) Authorization for integration of 
                funds.--In carrying out this subsection, the 
                Secretary of Labor, in cooperation with the 
                federal agency heads responsible for the 
                administration of the community and economic 
                development programs described in subparagraph 
                (D) that are included in the WIRED plan 
                submitted by the State, shall, upon the 
                approval of the plan submitted under paragraph 
                (2), authorize the State to integrate the 
                portion of the funds from such programs to 
                assist in implementing such plans.
                  ``(B) Integration.--The authorization shall 
                give the State the authority to integrate, in 
                accordance with such approved plan, funds 
                provided under programs identified from 
                subparagraph (D) to carry out the community and 
                economic development activities described in 
                paragraph (2)(G).
                  ``(C) Effect on program requirements.--The 
                integrated funds may be used, consistent with 
                the description contained in paragraph (2)(G), 
                to carry out any of the activities authorized 
                under any the programs described in 
                subparagraph (D) that are included in the plan.
                  ``(D) Included community and economic 
                development programs.--The funds that may be 
                integrated under this paragraph are funds 
                provided under--
                          ``(i) Community Development Block 
                        Grants authorized under title I of the 
                        Housing and Community Development Act 
                        of 1974 (42 U.S.C. 5301-5321);
                          ``(ii) grants authorized under the 
                        Community Services Block Grant Act (42 
                        U.S.C. 9901 et seq.);
                          ``(iii) Public Works and Economic 
                        Development Grants authorized under 
                        section 201 of the Public Works and 
                        Economic Development Act of 1965 (42 
                        U.S.C. 3141);
                          ``(iv) Rural Business Enterprise 
                        Grants authorized under the 
                        Consolidated Farm and Rural Development 
                        Act (7 U.S.C. 1932);
                          ``(v) Rural Business Opportunity 
                        Grants authorized under section 
                        741(a)(11) of the Federal Agriculture 
                        Improvement and Reform Act of 1996 (42 
                        U.S.C. 1926(a)(11);
                          ``(vi) grants authorized under the 
                        Brownfields Economic Development 
                        Initiative; and
                          ``(vii) Rural Housing and Economic 
                        Development grants.
          ``(7) Special rule.--If a State elects not to submit 
        a WIRED plan described in paragraph (2) for approval or 
        does not have a plan approved under paragraph (2), the 
        Secretary may approve a WIRED plan submitted by a local 
        workforce investment board or a regional workforce 
        investment board that serves a region within such 
        State, if the plan meets all other requirements of this 
        section.
          ``(8) Performance measures and reporting.--
                  ``(A) Performance measures.--The Secretary 
                shall establish performance measures that will 
                be used to evaluate the effectiveness of 
                activities carried out under this subsection 
                and shall require such entities to report to 
                the Secretary on the employment outcomes 
                obtained by individuals receiving training 
                under this subsection using those core 
                indicators of performance described in section 
                136(b)(2).
                  ``(B) Reporting.--Each State with an approved 
                plan under this subsection shall ensure that 
                records are maintained and reports are 
                submitted, in such form and containing such 
                information, as the Secretary may require 
                regarding the performance of programs and 
                activities carried out under this subsection.
          ``(9) Technical assistance and evaluation.--
                  ``(A) Technical assistance.--The Secretary 
                shall provide such staff training, technical 
                assistance, and other activities as the 
                Secretary deems appropriate to support the 
                implementation of this subsection.
                  ``(B) Evaluation.--The Secretary may require 
                that States with an approved plan under this 
                subsection to participate in an evaluation of 
                activities carried out under this subsection, 
                including an evaluation using the techniques 
                described in section 172(c).
          ``(10) Plan review.--Upon receipt of a WIRED plan 
        from the Governor, the Secretary shall consult with the 
        Federal agency head responsible for the administration 
        of any of the programs included in the plan pursuant to 
        paragraph (4) or (6).
          ``(11) Federal responsibilities.--
                  ``(A) Interagency memorandum of 
                understanding.--Within 90 days following the 
                date of enactment of this subsection, the 
                Secretary and the federal agency heads 
                responsible for programs that could be included 
                in a plan approved under this subsection 
                pursuant to paragraph (4) or (6) shall enter 
                into an interdepartmental memorandum of 
                agreement providing for the implementation of 
                WIRED plans with respect to the integration of 
                programs and funds administered by each 
                Secretary.
                  ``(B) Interagency funds transfers 
                authorized.--The Secretary and the federal 
                agency heads responsible for the programs that 
                are included in a plan approved under paragraph 
                (4) or (6) are authorized to take such action 
                as may be necessary to provide for intra-agency 
                or interagency transfers of funds otherwise 
                available to a State in order to further the 
                purposes of this subsection.
          ``(12) Administration of funds.--
                  ``(A) Separate records not required.--Nothing 
                in this subsection shall be construed as 
                requiring the region to maintain separate 
                records tracing any services or activities 
                conducted under an approved WIRED plan to the 
                programs under which funds were originally 
                authorized, nor shall the State be required to 
                allocate expenditures among such programs.
                  ``(B) Single audit act.--Nothing in this 
                section shall be construed to interfere with 
                the ability of the Secretary to fulfill the 
                responsibilities for the safeguarding of 
                Federal funds pursuant to the Single Audit Act 
                of 1984.
  ``(b) Authority To Carry Out Additional WIRED Activities 
Under WIA.--
          ``(1) Authorization for use of certain funds under 
        wia.--Funds available under sections 128(a), 133(a), 
        171, and 173 of this Act may be used by recipients and 
        subrecipients of those funds for WIRED activities, as 
        defined in paragraph (2), in addition to the other 
        activities for which such funds are authorized to be 
        used.
          ``(2) Definition.--For purposes of this subsection, 
        WIRED activities include--
                  ``(A) WIRED planning activities, including--
                          ``(i) defining the regional economy;
                          ``(ii) creating a broad-based 
                        regional partnership that assists in 
                        developing the economic vision 
                        described in clause (iv), the 
                        strategies described in clause (v), and 
                        that provides a forum for regional 
                        economic decision-making;
                          ``(iii) conducting an assessment of 
                        the regional economy to map the assets 
                        of a region and identify the strengths, 
                        weaknesses, opportunities and risks 
                        based on those assets;
                          ``(iv) developing an economic vision 
                        based on those strengths and assets;
                          ``(v) developing strategies and 
                        corresponding implementation plans that 
                        identify specific goals and tasks and 
                        provides a blueprint for how to achieve 
                        the economic vision for the region; and
                          ``(vi) identifying resources to 
                        support the plan of the region;
                  ``(B) job training and related activities for 
                workers to assist them in gaining the skills 
                and competencies needed to obtain or upgrade 
                employment in industries or economic sectors 
                projected to experience significant growth in 
                the region, including--
                          ``(i) activities supporting talent 
                        development related to entrepreneurship 
                        and small business development in the 
                        region; and
                          ``(ii) the purchase of equipment to 
                        train job seekers and workers for high-
                        growth occupations in the region; and
                  ``(C) activities to enhance training and 
                related activities and to promote workforce 
                development in the region, including--
                          ``(i) the development and 
                        implementation of model activities, 
                        such as developing appropriate 
                        curricula to build core competencies 
                        and train workers in the region;
                          ``(ii) identifying and disseminating 
                        career and skill information relating 
                        to the region;
                          ``(iii) developing or purchasing 
                        regional data tools or systems to 
                        deepen understanding of the regional 
                        economy and labor market; and
                          ``(iv) integrated regional planning, 
                        such as increasing the integration of 
                        community and technical college 
                        activities with activities of 
                        businesses and the public workforce 
                        investment system to meet the training 
                        needs of businesses in the region.''.

SEC. 441. GENERAL PROGRAM REQUIREMENTS.

  Section 195 (29 U.S.C. 2945) is amended--
          (1) in paragraph (7) by inserting at the end the 
        following:
                  ``(D) Funds received by a public or private 
                nonprofit entity that are not described in 
                paragraph (B), such as funds privately raised 
                from philanthropic foundations, businesses, or 
                other private entities, shall not be considered 
                to be income under this title and shall not be 
                subject to the requirements of this section.'';
          (2) by adding at the end the following new 
        paragraphs:
          ``(14) Funds provided under this title shall not be 
        used to establish or operate stand-alone fee-for-
        service enterprises that compete with private sector 
        employment agencies within the meaning of section 
        701(c) of the Civil Rights Act of 1964 (42 U.S.C. 
        2000e(c)). For purposes of this paragraph, such an 
        enterprise does not include one-stop centers.
          ``(15) Any report required to be submitted to 
        Congress, or to a Committee of Congress, under this 
        title shall be submitted to both the chairmen and 
        ranking minority members of the Committee on Education 
        and Labor of the House of Representatives and the 
        Committee on Health, Education, Labor, and Pensions of 
        the Senate.''.

    Subtitle B--Adult Education, Basic Skills, and Family Literacy 
                               Education

SEC. 451. TABLE OF CONTENTS.

  The table of contents in section 1(b) is amended by amending 
the items relating to title II to read as follows:

``TITLE II--ADULT EDUCATION, BASIC SKILLS, AND FAMILY LITERACY EDUCATION

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

                     ``Chapter 1--Federal Provisions

``Sec. 211. Reservation of funds; grants to eligible agencies; 
          allotments.
``Sec. 212. Performance accountability system.
``Sec. 213. Incentive grants for States.

                      ``Chapter 2--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.

                      ``Chapter 3--Local Provisions

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

                     ``Chapter 4--General Provisions

``Sec. 241. Administrative provisions.
``Sec. 242. National Institute for Literacy.
``Sec. 243. National leadership activities.''.

SEC. 452. AMENDMENT.

  Title II (29 U.S.C. 2901 et seq.) is amended to read as 
follows:

    ``TITLE II--ADULT EDUCATION, BASIC SKILLS, AND FAMILY LITERACY 
                               EDUCATION

``SEC. 201. SHORT TITLE.

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

``SEC. 202. PURPOSE.

  ``It is the purpose of this title to provide instructional 
opportunities for adults seeking to improve their literacy 
skills, including their basic reading, writing, speaking, and 
math skills, and support States and local communities in 
providing, on a voluntary basis, adult education, basic skills, 
and family literacy education programs, in order to--
          ``(1) increase the literacy of adults, including the 
        basic reading, writing, speaking, and math skills, to a 
        level of proficiency necessary for adults to obtain 
        employment and self-sufficiency and to successfully 
        advance in the workforce;
          ``(2) assist adults in the completion of a secondary 
        school education (or its equivalent) and the transition 
        to a postsecondary educational institution;
          ``(3) assist adults who are parents to enable them to 
        support the educational development of their children 
        and make informed choices regarding their children's 
        education including, through instruction in basic 
        reading, writing, speaking, and math skills; and
          ``(4) assist immigrants who are not proficient in 
        English in improving their reading, writing, speaking, 
        and math skills and acquiring an understanding of the 
        American free enterprise system, individual freedom, 
        and the responsibilities of citizenship.

``SEC. 203. DEFINITIONS.

  ``In this title:
          ``(1) Adult education, basic skills, and family 
        literacy education programs.--The term `adult 
        education, basic skills, and family literacy education 
        programs' means a sequence of academic instruction and 
        educational services below the postsecondary level that 
        increase an individual's ability to read, write, and 
        speak in English and perform mathematical computations 
        leading to a level of proficiency equivalent to at 
        least a secondary school completion that is provided 
        for individuals--
                  ``(A) who are at least 16 years of age;
                  ``(B) who are not enrolled or required to be 
                enrolled in secondary school under State law; 
                and
                  ``(C) who--
                          ``(i) lack sufficient mastery of 
                        basic reading, writing, speaking, and 
                        math skills to enable the individuals 
                        to function effectively in society;
                          ``(ii) do not have a secondary school 
                        diploma, General Educational 
                        Development credential (GED), or other 
                        State-recognized equivalent and have 
                        not achieved an equivalent level of 
                        education; or
                          ``(iii) are unable to read, write, or 
                        speak the English language.
          ``(2) Eligible agency.--The term `eligible agency'--
                  ``(A) means the primary entity or agency in a 
                State or an outlying area responsible for 
                administering or supervising policy for adult 
                education, basic skills, and family literacy 
                education programs in the State or outlying 
                area, respectively, consistent with the law of 
                the State or outlying area, respectively; and
                  ``(B) may be the State educational agency, 
                the State agency responsible for administering 
                workforce investment activities, or the State 
                agency responsible for administering community 
                or technical colleges.
          ``(3) Eligible provider.--The term `eligible 
        provider' means--
                  ``(A) a local educational agency;
                  ``(B) a community-based or faith-based 
                organization of demonstrated effectiveness;
                  ``(C) a volunteer literacy organization of 
                demonstrated effectiveness;
                  ``(D) an institution of higher education;
                  ``(E) a public or private educational agency;
                  ``(F) a library;
                  ``(G) a public housing authority;
                  ``(H) an institution that is not described in 
                any of subparagraphs (A) through (G) and has 
                the ability to provide adult education, basic 
                skills, and family literacy education programs 
                to adults and families; or
                  ``(I) a consortium of the agencies, 
                organizations, institutions, libraries, or 
                authorities described in any of subparagraphs 
                (A) through (H).
          ``(4) English language acquisition program.--The term 
        `English language acquisition program' means a program 
        of instruction designed to help individuals with 
        limited English proficiency achieve competence in 
        reading, writing, and speaking the English language.
          ``(5) Essential components of reading instruction.--
        The term `essential components of reading instruction' 
        has the meaning given to that term in section 1208 of 
        the Elementary and Secondary Education Act of 1965.
          ``(6) Family literacy education program.--The term 
        `family literacy education program' means an 
        educational program that--
                  ``(A) assists parents and students, on a 
                voluntary basis, in achieving the purposes of 
                this title as described in section 202; and
                  ``(B) is of sufficient intensity in terms of 
                hours and of sufficient duration to make 
                sustainable changes in a family, is based upon 
                scientifically based research, and, for the 
                purpose of substantially increasing the ability 
                of parents and children to read, write, and 
                speak English, integrates--
                          ``(i) interactive literacy activities 
                        between parents and their children;
                          ``(ii) training for parents regarding 
                        how to be the primary teacher for their 
                        children and full partners in the 
                        education of their children;
                          ``(iii) parent literacy training that 
                        leads to economic self-sufficiency; and
                          ``(iv) an age-appropriate education 
                        to prepare children for success in 
                        school and life experiences.
          ``(7) Governor.--The term `Governor' means the chief 
        executive officer of a State or outlying area.
          ``(8) Individual with a disability.--
                  ``(A) In general.--The term `individual with 
                a disability' means an individual with any 
                disability (as defined in section 3 of the 
                Americans with Disabilities Act of 1990).
                  ``(B) Individuals with disabilities.--The 
                term `individuals with disabilities' means more 
                than one individual with a disability.
          ``(9) Individual with limited english proficiency.--
        The term `individual with limited English proficiency' 
        means an adult or out-of-school youth who has limited 
        ability in reading, writing, speaking, or understanding 
        the English language, and--
                  ``(A) whose native language is a language 
                other than English; or
                  ``(B) who lives in a family or community 
                environment where a language other than English 
                is the dominant language.
          ``(10) Institution of higher education.--The term 
        `institution of higher education' has the meaning given 
        to that term in section 101 of the Higher Education Act 
        of 1965.
          ``(11) Literacy.--The term `literacy' means an 
        individual's ability to read, write, and speak in 
        English, compute, and solve problems at a level of 
        proficiency necessary to obtain employment and to 
        successfully make the transition to postsecondary 
        education.
          ``(12) Local educational agency.--The term `local 
        educational agency' has the meaning given to that term 
        in section 9101 of the Elementary and Secondary 
        Education Act of 1965.
          ``(13) Outlying area.--The term `outlying area' has 
        the meaning given to that term in section 101 of this 
        Act.
          ``(14) Postsecondary educational institution.--The 
        term `postsecondary educational institution' means--
                  ``(A) an institution of higher education that 
                provides not less than a 2-year program of 
                instruction that is acceptable for credit 
                toward a bachelor's degree;
                  ``(B) a tribally controlled community 
                college; or
                  ``(C) a nonprofit educational institution 
                offering certificate or apprenticeship programs 
                at the postsecondary level.
          ``(15) Reading.--The term `reading' has the meaning 
        given to that term in section 1208 of the Elementary 
        and Secondary Education Act of 1965.
          ``(16) Scientifically based research.--The term 
        `scientifically based research' has the meaning given 
        to that term in section 9101 of the Elementary and 
        Secondary Education Act of 1965.
          ``(17) Secretary.--The term `Secretary' means the 
        Secretary of Education.
          ``(18) State.--The term `State' means each of the 
        several States of the United States, the District of 
        Columbia, and the Commonwealth of Puerto Rico.
          ``(19) State educational agency.--The term `State 
        educational agency' has the meaning given to that term 
        in section 9101 of the Elementary and Secondary 
        Education Act of 1965.
          ``(20) Workplace literacy program.--The term 
        `workplace literacy program' means an educational 
        program that is offered in collaboration between 
        eligible providers and employers or employee 
        organizations for the purpose of improving the 
        productivity of the workforce through the improvement 
        of reading, writing, speaking, and math skills.

``SEC. 204. HOME SCHOOLS.

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

``SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to carry out this 
title $590,127,000 for fiscal year 2008 and such sums as may be 
necessary for fiscal years 2009 through 2012.

                    ``CHAPTER 1--FEDERAL PROVISIONS


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

  ``(a) Reservation of Funds.--From the sums appropriated under 
section 205 for a fiscal year, the Secretary--
          ``(1) shall reserve up to 1.72 percent for incentive 
        grants under section 213;
          ``(2) shall reserve 1.75 percent to carry out section 
        242; and
          ``(3) shall reserve up to 1.55 percent to carry out 
        section 243.
  ``(b) Grants to Eligible Agencies.--
          ``(1) In general.--From the sums appropriated under 
        section 205 and not reserved under subsection (a) for a 
        fiscal year, the Secretary shall award a grant to each 
        eligible agency having a State plan approved under 
        section 224 in an amount equal to the sum of the 
        initial allotment under subsection (c)(1) and the 
        additional allotment under subsection (c)(2) for the 
        eligible agency for the fiscal year, subject to 
        subsections (f) and (g).
          ``(2) Purpose of grants.--The Secretary may award a 
        grant under paragraph (1) only if the eligible agency 
        involved agrees to expend the grant in accordance with 
        the provisions of this title.
  ``(c) Allotments.--
          ``(1) Initial allotments.--From the sums appropriated 
        under section 205 and not reserved under subsection (a) 
        for a fiscal year, the Secretary shall allot to each 
        eligible agency having a State plan approved under 
        section 224--
                  ``(A) $100,000, in the case of an eligible 
                agency serving an outlying area; and
                  ``(B) $250,000, in the case of any other 
                eligible agency.
          ``(2) Additional allotments.--From the sums 
        appropriated under section 205, not reserved under 
        subsection (a), and not allotted under paragraph (1), 
        for a fiscal year, the Secretary shall allot to each 
        eligible agency that receives an initial allotment 
        under paragraph (1) an additional amount that bears the 
        same relationship to such sums as the number of 
        qualifying adults in the State or outlying area served 
        by the eligible agency bears to the number of such 
        adults in all States and outlying areas.
  ``(d) Qualifying Adult.--For the purpose of subsection 
(c)(2), the term `qualifying adult' means an adult who--
          ``(1) is at least 16 years of age;
          ``(2) is beyond the age of compulsory school 
        attendance under the law of the State or outlying area;
          ``(3) does not have a secondary school diploma, 
        General Educational Development credential (GED), or 
        other State-recognized equivalent; and
          ``(4) is not enrolled in secondary school.
  ``(e) Special Rule.--
          ``(1) In general.--From amounts made available under 
        subsection (c) for the Republic of Palau, the Secretary 
        shall award grants to Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, or the 
        Republic of Palau to carry out activities described in 
        this title in accordance with the provisions of this 
        title as determined by the Secretary.
          ``(2) Termination of eligibility.--Notwithstanding 
        any other provision of law, the Republic of Palau shall 
        be eligible to receive a grant under this title until 
        an agreement for the extension of United States 
        education assistance under the Compact of Free 
        Association for the Republic of Palau becomes 
        effective.
          ``(3) 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), 
        and subject to paragraphs (2) and (3), for fiscal year 
        2008 and each succeeding fiscal year, no eligible 
        agency shall receive an allotment under this title that 
        is less than 90 percent of the allotment the eligible 
        agency received for the preceding fiscal year under 
        this title.
          ``(2) Exception.--An eligible agency that receives 
        for the preceding fiscal year only an initial allotment 
        under subsection (c)(1) (and no additional allotment 
        under subsection (c)(2)) shall receive an allotment 
        equal to 100 percent of the initial allotment.
          ``(3) 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.

``SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.

  ``(a) Purpose.--The purpose of this section is to establish a 
comprehensive performance accountability system, composed of 
the activities described in this section, to assess the 
effectiveness of eligible agencies in achieving continuous 
improvement of adult education, basic skills, and family 
literacy education programs funded under this title, in order 
to optimize the return on investment of Federal funds in adult 
education, basic skills, and family literacy education 
programs.
  ``(b) Eligible Agency Performance Measures.--
          ``(1) In general.--For each eligible agency, the 
        eligible agency performance measures shall consist of--
                  ``(A)(i) the core indicators of performance 
                described in paragraph (2)(A); and
                  ``(ii) employment performance indicators 
                identified by the eligible agency under 
                paragraph (2)(B); and
                  ``(B) an eligible agency adjusted level of 
                performance for each indicator described in 
                subparagraph (A).
          ``(2) Indicators of performance.--
                  ``(A) Core indicators of performance.--The 
                core indicators of performance shall include 
                the following:
                          ``(i) Measurable improvements in 
                        literacy, including basic skill levels 
                        in reading, writing, and speaking the 
                        English language and basic math, 
                        leading to proficiency in each skill.
                          ``(ii) Receipt of a secondary school 
                        diploma, General Educational 
                        Development credential (GED), or other 
                        State-recognized equivalent.
                          ``(iii) Placement in postsecondary 
                        education or other training programs.
                  ``(B) Employment performance indicators.--
                Consistent with applicable Federal and State 
                privacy laws, an eligible agency shall identify 
                in the State plan the following individual 
                participant employment performance indicators:
                          ``(i) Entry into employment.
                          ``(ii) Retention in employment.
                          ``(iii) Increase in earnings.
          ``(3) Levels of performance.--
                  ``(A) Eligible agency adjusted levels of 
                performance for core indicators.--
                          ``(i) In general.--For each eligible 
                        agency submitting a State plan, there 
                        shall be established, in accordance 
                        with this subparagraph, levels of 
                        performance for each of the core 
                        indicators of performance described in 
                        paragraph (2)(A) for adult education, 
                        basic skills, and family literacy 
                        education programs authorized under 
                        this title. The levels of performance 
                        established under this subparagraph 
                        shall, at a minimum--
                                  ``(I) be expressed in an 
                                objective, quantifiable, and 
                                measurable form; and
                                  ``(II) show the progress of 
                                the eligible agency toward 
                                continuously and significantly 
                                improving the agency's 
                                performance outcomes in an 
                                objective, quantifiable, and 
                                measurable form.
                          ``(ii) Identification in state 
                        plan.--Each eligible agency shall 
                        identify, in the State plan submitted 
                        under section 224, expected levels of 
                        performance for each of the core 
                        indicators of performance for the first 
                        3 program years covered by the State 
                        plan.
                          ``(iii) Agreement on eligible agency 
                        adjusted levels of performance for 
                        first 3 years.--In order to ensure an 
                        optimal return on the investment of 
                        Federal funds in adult education, basic 
                        skills, and family literacy education 
                        programs authorized under this title, 
                        the Secretary and each eligible agency 
                        shall reach agreement on levels of 
                        student performance for each of the 
                        core indicators of performance, for the 
                        first 3 program years covered by the 
                        State plan, taking into account the 
                        levels identified in the State plan 
                        under clause (ii) and the factors 
                        described in clause (iv). The levels 
                        agreed to under this clause shall be 
                        considered to be the eligible agency 
                        adjusted levels of performance for the 
                        eligible agency for such years and 
                        shall be incorporated into the State 
                        plan prior to the approval of such 
                        plan.
                          ``(iv) Factors.--The agreement 
                        described in clause (iii) or (v) shall 
                        take into account--
                                  ``(I) how the levels involved 
                                compare with the eligible 
                                agency's adjusted levels of 
                                performance, taking into 
                                account factors including the 
                                characteristics of participants 
                                when the participants entered 
                                the program; and
                                  ``(II) the extent to which 
                                such levels promote continuous 
                                and significant improvement in 
                                performance on the student 
                                proficiency measures used by 
                                such eligible agency and ensure 
                                optimal return on the 
                                investment of Federal funds.
                          ``(v) Agreement on eligible agency 
                        adjusted levels of performance for 
                        second 3 years.--Prior to the fourth 
                        program year covered by the State plan, 
                        the Secretary and each eligible agency 
                        shall reach agreement on levels of 
                        student performance for each of the 
                        core indicators of performance for the 
                        fourth, fifth, and sixth program years 
                        covered by the State plan, taking into 
                        account the factors described in clause 
                        (iv). The levels agreed to under this 
                        clause shall be considered to be the 
                        eligible agency adjusted levels of 
                        performance for the eligible agency for 
                        such years and shall be incorporated 
                        into the State plan.
                          ``(vi) Revisions.--If unanticipated 
                        circumstances arise in a State 
                        resulting in a significant change in 
                        the factors described in clause 
                        (iv)(I), the eligible agency may 
                        request that the eligible agency 
                        adjusted levels of performance agreed 
                        to under clause (iii) or (v) be 
                        revised.
                  ``(B) Levels of employment performance.--The 
                eligible agency shall identify, in the State 
                plan, eligible agency levels of performance for 
                each of the employment performance indicators 
                described in paragraph (2)(B). Such levels 
                shall be considered to be eligible agency 
                adjusted levels of performance for purposes of 
                this title.
  ``(c) Definitions for Indicators of Perfomance.--In order to 
ensure comparability of performance data across States, the 
Secretary shall issue definitions for the indicators of 
performance under paragraph (2).
  ``(d) Report.--
          ``(1) In general.--Each eligible agency that receives 
        a grant under section 211(b) shall annually prepare and 
        submit to the Secretary, the Governor, the State 
        legislature, and eligible providers a report on the 
        progress of the eligible agency in achieving eligible 
        agency performance measures, including the following:
                  ``(A) Information on the levels of 
                performance achieved by the eligible agency 
                with respect to the core indicators of 
                performance and employment performance 
                indicators.
                  ``(B) The number and type of each eligible 
                provider that receives funding under such 
                grant.
          ``(2) Information dissemination.--The Secretary--
                  ``(A) shall make the information contained in 
                such reports available to the general public 
                through publication (including on the Internet 
                site of the Department of Education) and other 
                appropriate methods;
                  ``(B) shall disseminate State-by-State 
                comparisons of the information; and
                  ``(C) shall provide the appropriate 
                committees of the Congress with copies of such 
                reports.

``SEC. 213. INCENTIVE GRANTS FOR STATES.

  ``(a) In General.--From funds appropriated under section 
211(a)(1), the Secretary may award grants to States for 
exemplary performance in carrying out programs under this 
title. Such awards shall be based on States exceeding the core 
indicators of performance established under section 
212(b)(2)(A) and may be based on the performance of the State 
in serving populations, such as those described in section 
224(b)(10), including the levels of service provided and the 
performance outcomes, and such other factors relating to the 
performance of the State under this title as the Secretary 
determines appropriate.
  ``(b) Use of Funds.--The funds awarded to a State under this 
paragraph may be used to carry out any activities authorized 
under this title, including demonstrations and innovative 
programs for hard-to-serve populations.

                     ``CHAPTER 2--STATE PROVISIONS


``SEC. 221. STATE ADMINISTRATION.

  ``Each eligible agency shall be responsible for the following 
activities under this title:
          ``(1) The development, submission, implementation, 
        and monitoring of the State plan.
          ``(2) Consultation with other appropriate agencies, 
        groups, and individuals that are involved in, or 
        interested in, the development and implementation of 
        activities assisted under this title.
          ``(3) Coordination and avoidance of duplication with 
        other Federal and State education, training, 
        corrections, public housing, and social service 
        programs.

``SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING REQUIREMENT.

  ``(a) State Distribution of Funds.--Each eligible agency 
receiving a grant under this title for a fiscal year--
          ``(1) shall use an amount not less than 82.5 percent 
        of the grant funds to award grants and contracts under 
        section 231 and to carry out section 225, of which not 
        more than 10 percent of such amount shall be available 
        to carry out section 225;
          ``(2) shall use not more than 12.5 percent of the 
        grant funds to carry out State leadership activities 
        under section 223; and
          ``(3) shall use not more than 5 percent of the grant 
        funds, or $75,000, 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, basic skills, and family literacy education 
        programs for which the grant is awarded, a non-Federal 
        contribution in an amount at least equal to--
                  ``(A) in the case of an eligible agency 
                serving an outlying area, 12 percent of the 
                total amount of funds expended for adult 
                education, basic skills, and family literacy 
                education programs in the outlying area, except 
                that the Secretary may decrease the amount of 
                funds required under this subparagraph for an 
                eligible agency; and
                  ``(B) in the case of an eligible agency 
                serving a State, 25 percent of the total amount 
                of funds expended for adult education, basic 
                skills, and family literacy education programs 
                in the State.
          ``(2) Non-federal contribution.--An eligible agency's 
        non-Federal contribution required under paragraph (1) 
        may be provided in cash or in kind, fairly evaluated, 
        and shall include only non-Federal funds that are used 
        for adult education, basic skills, and family literacy 
        education programs in a manner that is consistent with 
        the purpose of this title.

``SEC. 223. STATE LEADERSHIP ACTIVITIES.

  ``(a) In General.--Each eligible agency may use funds made 
available under section 222(a)(2) for any of the following 
adult education, basic skills, and family literacy education 
programs:
          ``(1) The establishment or operation of professional 
        development programs to improve the quality of 
        instruction provided pursuant to local activities 
        required under section 231(b), including instruction 
        incorporating the essential components of reading 
        instruction and instruction provided by volunteers or 
        by personnel of a State or outlying area.
          ``(2) The provision of technical assistance to 
        eligible providers of adult education, basic skills, 
        and family literacy education programs, including for 
        the development and dissemination of scientifically 
        based research instructional practices in reading, 
        writing, speaking, math, and English language 
        acquisition programs.
          ``(3) The provision of assistance to eligible 
        providers in developing, implementing, and reporting 
        measurable progress in achieving the objectives of this 
        title.
          ``(4) The provision of technology assistance, 
        including staff training, to eligible providers of 
        adult education, basic skills, and family literacy 
        education programs, including distance learning 
        activities, to enable the eligible providers to improve 
        the quality of such activities.
          ``(5) The development and implementation of 
        technology applications or distance learning, including 
        professional development to support the use of 
        instructional technology.
          ``(6) Coordination with other public programs, 
        including welfare-to-work, workforce development, and 
        job training programs.
          ``(7) Coordination with existing support services, 
        such as transportation, child care, and other 
        assistance designed to increase rates of enrollment in, 
        and successful completion of, adult education, basic 
        skills, and family literacy education programs, for 
        adults enrolled in such activities.
          ``(8) The development and implementation of a system 
        to assist in the transition from adult basic education 
        to postsecondary education.
          ``(9) Activities to promote workplace literacy 
        programs.
          ``(10) Activities to promote and complement local 
        outreach initiatives described in section 243(7).
          ``(11) Other activities of statewide significance, 
        including assisting eligible providers in achieving 
        progress in improving the skill levels of adults who 
        participate in programs under this title.
          ``(12) Integration of literacy, instructional, and 
        occupational skill training and promotion of linkages 
        with employees.
  ``(b) Coordination.--In carrying out this section, eligible 
agencies shall coordinate where possible, and avoid duplicating 
efforts, in order to maximize the impact of the activities 
described in subsection (a).
  ``(c) State-Imposed Requirements.--Whenever a State or 
outlying area implements any rule or policy relating to the 
administration or operation of a program authorized under this 
title that has the effect of imposing a requirement that is not 
imposed under Federal law (including any rule or policy based 
on a State or outlying area interpretation of a Federal 
statute, regulation, or guideline), the State or outlying area 
shall identify, to eligible providers, the rule or policy as 
being imposed by the State or outlying area.

``SEC. 224. STATE PLAN.

  ``(a) 6-Year Plans.--
          ``(1) In general.--Each eligible agency desiring a 
        grant under this title for any fiscal year shall submit 
        to, or have on file with, the Secretary a 6-year State 
        plan.
          ``(2) Comprehensive plan or application.--The 
        eligible agency may submit the State plan as part of a 
        comprehensive plan or application for Federal education 
        assistance.
  ``(b) Plan Contents.--The eligible agency shall include in 
the State plan or any revisions to the State plan--
          ``(1) an objective assessment of the needs of 
        individuals in the State or outlying area for adult 
        education, basic skills, and family literacy education 
        programs, including individuals most in need or hardest 
        to serve;
          ``(2) a description of the adult education, basic 
        skills, and family literacy education programs that 
        will be carried out with funds received under this 
        title;
          ``(3) a description of how the eligible agency will 
        evaluate and measure annually the effectiveness and 
        improvement of the adult education, basic skills, and 
        family literacy education programs based on the 
        performance measures described in section 212 
        including--
                  ``(A) how the eligible agency will evaluate 
                and measure annually such effectiveness on a 
                grant-by-grant basis; and
                  ``(B) how the eligible agency--
                          ``(i) will hold eligible providers 
                        accountable regarding the progress of 
                        such providers in improving the 
                        academic achievement of participants in 
                        adult education programs under this 
                        title and regarding the core indicators 
                        of performance described in section 
                        212(b)(2)(A); and
                          ``(ii) will use technical assistance, 
                        sanctions, and rewards (including 
                        allocation of grant funds based on 
                        performance and termination of grant 
                        funds based on nonperformance);
          ``(4) a description of the performance measures 
        described in section 212 and how such performance 
        measures have significantly improved adult education, 
        basic skills, and family literacy education programs in 
        the State or outlying area;
          ``(5) an assurance that the eligible agency will, in 
        addition to meeting all of the other requirements of 
        this title, award not less than one grant under this 
        title to an eligible provider that--
                  ``(A) offers flexible schedules and necessary 
                support services (such as child care and 
                transportation) to enable individuals, 
                including individuals with disabilities, or 
                individuals with other special needs, to 
                participate in adult education, basic skills, 
                and family literacy education programs; and
                  ``(B) attempts to coordinate with support 
                services that are not provided under this title 
                prior to using funds for adult education, basic 
                skills, and family literacy education programs 
                provided under this title for support services;
          ``(6) an assurance that the funds received under this 
        title will not be expended for any purpose other than 
        for activities under this title;
          ``(7) a description of how the eligible agency will 
        fund local activities in accordance with the measurable 
        goals described in section 231(d);
          ``(8) an assurance that the eligible agency will 
        expend the funds under this title only in a manner 
        consistent with fiscal requirements in section 241;
          ``(9) a description of the process that will be used 
        for public participation and comment with respect to 
        the State plan, which process--
                  ``(A) shall include consultation with the 
                State workforce investment board, the State 
                board responsible for administering community 
                or technical colleges, the Governor, the State 
                educational agency, the State board or agency 
                responsible for administering block grants for 
                temporary assistance to needy families under 
                title IV of the Social Security Act, the State 
                council on disabilities, the State vocational 
                rehabilitation agency, other State agencies 
                that promote the improvement of adult 
                education, basic skills, and family literacy 
                education programs, and direct providers of 
                such programs; and
                  ``(B) may include consultation with the State 
                agency on higher education, institutions 
                responsible for professional development of 
                adult education, basic skills, and family 
                literacy education programs instructors, 
                representatives of business and industry, 
                refugee assistance programs, and faith-based 
                organizations;
          ``(10) a description of the eligible agency's 
        strategies for serving populations that include, at a 
        minimum--
                  ``(A) low-income individuals;
                  ``(B) individuals with disabilities;
                  ``(C) the unemployed;
                  ``(D) the underemployed; and
                  ``(E) individuals with multiple barriers to 
                educational enhancement, including individuals 
                with limited English proficiency;
          ``(11) a description of how the adult education, 
        basic skills, and family literacy education programs 
        that will be carried out with any funds received under 
        this title will be integrated with other adult 
        education, career development, and employment and 
        training activities in the State or outlying area 
        served by the eligible agency;
          ``(12) a description of the steps the eligible agency 
        will take to ensure direct and equitable access, as 
        required in section 231(c)(1), including--
                  ``(A) how the State will build the capacity 
                of community-based and faith-based 
                organizations to provide adult education, basic 
                skills, and family literacy education programs; 
                and
                  ``(B) how the State will increase the 
                participation of business and industry in adult 
                education, basic skills, and family literacy 
                education programs;
          ``(13) an assessment of the adequacy of the system of 
        the State or outlying area to ensure teacher quality 
        and a description of how the State or outlying area 
        will use funds received under this subtitle to improve 
        teacher quality, including professional development on 
        the use of scientifically based research to improve 
        instruction; and
          ``(14) a description of how the eligible agency will 
        consult with any State agency responsible for 
        postsecondary education to develop adult education that 
        prepares students to enter postsecondary education 
        without the need for remediation upon completion of 
        secondary school equivalency programs.
  ``(c) Plan Revisions.--When changes in conditions or other 
factors require substantial revisions to an approved State 
plan, the eligible agency shall submit the revisions of the 
State plan to the Secretary.
  ``(d) Consultation.--The eligible agency shall--
          ``(1) submit the State plan, and any revisions to the 
        State plan, to the Governor, the chief State school 
        officer, or the State officer responsible for 
        administering community or technical colleges, or 
        outlying area for review and comment; and
          ``(2) ensure that any comments regarding the State 
        plan by the Governor, the chief State school officer, 
        or the State officer responsible for administering 
        community or technical colleges, and any revision to 
        the State plan, are submitted to the Secretary.
  ``(e) Plan Approval.--A State plan submitted to the Secretary 
shall be approved by the Secretary only if the plan is 
consistent with the specific provisions of this title.

``SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER 
                    INSTITUTIONALIZED INDIVIDUALS.

  ``(a) Program Authorized.--From funds made available under 
section 222(a)(1) for a fiscal year, each eligible agency shall 
carry out corrections education and education for other 
institutionalized individuals.
  ``(b) Uses of Funds.--The funds described in subsection (a) 
shall be used for the cost of educational programs for criminal 
offenders in correctional institutions and for other 
institutionalized individuals, including academic programs 
for--
          ``(1) basic skills education;
          ``(2) special education programs as determined by the 
        eligible agency;
          ``(3) reading, writing, speaking, and math programs; 
        and
          ``(4) secondary school credit or diploma programs or 
        their recognized equivalent.
  ``(c) Priority.--Each eligible agency that is using 
assistance provided under this section to carry out a program 
for criminal offenders within a correctional institution shall 
give priority to serving individuals who are likely to leave 
the correctional institution within 5 years of participation in 
the program.
  ``(d) Definitions.--For purposes of 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.

                     ``CHAPTER 3--LOCAL PROVISIONS


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

  ``(a) Grants and Contracts.--From grant funds made available 
under section 211(b), each eligible agency shall award 
multiyear grants or contracts, on a competitive basis, to 
eligible providers within the State or outlying area that meet 
the conditions and requirements of this title to enable the 
eligible providers to develop, implement, and improve adult 
education, basic skills, and family literacy education programs 
within the State.
  ``(b) Local Activities.--The eligible agency shall require 
eligible providers receiving a grant or contract under 
subsection (a) to establish or operate one or more programs of 
instruction that provide services or instruction in one or more 
of the following categories:
          ``(1) Adult education, basic skills, and family 
        literacy education programs (including proficiency in 
        reading, writing, speaking, and math).
          ``(2) Workplace literacy programs.
          ``(3) English language acquisition programs.
          ``(4) Family literacy education programs.
  ``(c) Direct and Equitable Access; Same Process.--Each 
eligible agency receiving funds under this title shall ensure 
that--
          ``(1) all eligible providers have direct and 
        equitable access to apply for grants or contracts under 
        this section; and
          ``(2) the same grant or contract announcement process 
        and application process is used for all eligible 
        providers in the State or outlying area.
  ``(d) Measurable Goals.--The eligible agency shall require 
eligible providers receiving a grant or contract under 
subsection (a) to demonstrate--
          ``(1) the eligible provider's measurable goals for 
        participant outcomes to be achieved annually on the 
        core indicators of performance and employment 
        performance indicators described in section 212(b)(2);
          ``(2) the past effectiveness of the eligible provider 
        in improving the basic academic skills of adults and, 
        for eligible providers receiving grants in the prior 
        year, the success of the eligible provider receiving 
        funding under this title in exceeding its performance 
        goals in the prior year;
          ``(3) the commitment of the eligible provider to 
        serve individuals in the community who are the most in 
        need of basic academic skills instruction services, 
        including individuals who are low-income or have 
        minimal reading, writing, speaking, and math skills, or 
        limited English proficiency;
          ``(4) the program--
                  ``(A) is of sufficient intensity and duration 
                for participants to achieve substantial 
                learning gains; and
                  ``(B) uses instructional practices that 
                include the essential components of reading 
                instruction;
          ``(5) educational practices are based on 
        scientifically based research;
          ``(6) the activities of the eligible provider 
        effectively employ advances in technology, as 
        appropriate, including the use of computers;
          ``(7) the activities provide instruction in real-life 
        contexts, when appropriate, to ensure that an 
        individual has the skills needed to compete in the 
        workplace and exercise the rights and responsibilities 
        of citizenship;
          ``(8) the activities are staffed by well-trained 
        instructors, counselors, and administrators;
          ``(9) the activities are coordinated with other 
        available resources in the community, such as through 
        strong links with elementary schools and secondary 
        schools, postsecondary educational institutions, one-
        stop centers, job training programs, community-based 
        and faith-based organizations, and social service 
        agencies;
          ``(10) the activities offer flexible schedules and 
        support services (such as child care and 
        transportation) that are necessary to enable 
        individuals, including individuals with disabilities or 
        other special needs, to attend and complete programs;
          ``(11) the activities include a high-quality 
        information management system that has the capacity to 
        report measurable participant outcomes and to monitor 
        program performance against the performance measures 
        established by the eligible agency;
          ``(12) the local communities have a demonstrated need 
        for additional English language acquisition programs;
          ``(13) the capacity of the eligible provider to 
        produce valid information on performance results, 
        including enrollments and measurable participant 
        outcomes;
          ``(14) adult education, basic skills, and family 
        literacy education programs offer rigorous reading, 
        writing, speaking, and math content that are based on 
        scientifically based research; and
          ``(15) applications of technology, and services to be 
        provided by the eligible providers, are of sufficient 
        intensity and duration to increase the amount and 
        quality of learning and lead to measurable learning 
        gains within specified time periods.
  ``(e) Special Rule.--Eligible providers may use grant funds 
under this title to serve children participating in family 
literacy programs assisted under this part, provided that other 
sources of funds available to provide similar services for such 
children are used first.

``SEC. 232. LOCAL APPLICATION.

  ``Each eligible provider desiring a grant or contract under 
this title shall submit an application to the eligible agency 
containing such information and assurances as the eligible 
agency may require, including--
          ``(1) a description of how funds awarded under this 
        title will be spent consistent with the requirements of 
        this title;
          ``(2) a description of any cooperative arrangements 
        the eligible provider has with other agencies, 
        institutions, or organizations for the delivery of 
        adult education, basic skills, and family literacy 
        education programs; and
          ``(3) each of the demonstrations required by section 
        231(d).

``SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.

  ``(a) In General.--Subject to subsection (b), of the amount 
that is made available under this title to an eligible 
provider--
          ``(1) at least 95 percent shall be expended for 
        carrying out adult education, basic skills, and family 
        literacy education programs; and
          ``(2) the remaining amount shall be used for 
        planning, administration, personnel and professional 
        development, development of measurable goals in 
        reading, writing, speaking, and math, and interagency 
        coordination.
  ``(b) Special Rule.--In cases where the cost limits described 
in subsection (a) are too restrictive to allow for adequate 
planning, administration, personnel development, and 
interagency coordination, the eligible provider may negotiate 
with the eligible agency in order to determine an adequate 
level of funds to be used for noninstructional purposes.

                    ``CHAPTER 4--GENERAL PROVISIONS


``SEC. 241. ADMINISTRATIVE PROVISIONS.

  ``(a) Supplement Not Supplant.--Funds made available for 
adult education, basic skills, and family literacy education 
programs under this title shall supplement and not supplant 
other State or local public funds expended for adult education, 
basic skills, and family literacy education programs.
  ``(b) Maintenance of Effort.--
          ``(1) In general.--
                  ``(A) Determination.--An eligible agency may 
                receive funds under this title for any 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, basic skills, and family 
                literacy education programs, 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, 
                        basic skills, and family literacy 
                        education programs 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, basic skills, and 
        family literacy education programs under this title for 
        a fiscal year is less than the amount made available 
        for adult education, basic skills, and family literacy 
        education programs 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 INSTITUTE FOR LITERACY.

  ``(a) In General.--
          ``(1) Purpose.--The purpose of the National Institute 
        for Literacy is to promote the improvement of literacy, 
        including skills in reading, writing, and English 
        language acquisition for children, youth, and adults, 
        through practices derived from the findings of 
        scientifically based research.
          ``(2) Establishment.--There is established a National 
        Institute for Literacy (in this section referred to as 
        the `Institute'). The Institute shall be administered 
        under the terms of an interagency agreement entered 
        into, reviewed annually, and modified as needed by the 
        Secretary of Education with the Secretary of Health and 
        Human Services and the Secretary of Labor (in this 
        section referred to as the `Interagency Group').
          ``(3) Offices.--The Institute shall have offices 
        separate from the offices of the Department of 
        Education, the Department of Health and Human Services, 
        and the Department of Labor.
          ``(4) Administrative support.--The Department of 
        Education shall provide administrative support for the 
        Institute.
          ``(5) Daily operations.--The Director of the 
        Institute shall administer the daily operations of the 
        Institute.
  ``(b) Duties.--
          ``(1) In general.--To carry out its purpose, the 
        Institute may--
                  ``(A) identify and disseminate rigorous 
                scientific research on the effectiveness of 
                instructional practices and organizational 
                strategies relating to programs on the 
                acquisition of skills in reading, writing, and 
                English language acquisition for children, 
                youth, and adults;
                  ``(B) create and widely disseminate materials 
                about the acquisition and application of skills 
                in reading, writing, and English language 
                acquisition for children, youth, and adults 
                based on scientifically based research;
                  ``(C) ensure a broad understanding of 
                scientifically based research on reading, 
                writing, and English language acquisition for 
                children, youth, and adults among Federal 
                agencies with responsibilities for 
                administering programs that provide related 
                services, including State and local educational 
                agencies;
                  ``(D) facilitate coordination and information 
                sharing among national organizations and 
                associations interested in programs that 
                provide services to improve skills in reading, 
                writing, and English language acquisition for 
                children, youth, and adults;
                  ``(E) coordinate with the appropriate offices 
                in the Department of Education, the Department 
                of Health and Human Services, the Department of 
                Labor, and other Federal agencies to apply the 
                findings of scientifically based research 
                related to programs on reading, writing, and 
                English language acquisition for children, 
                youth, and adults;
                  ``(F) establish a national electronic 
                database and Internet site describing and 
                fostering communication on scientifically based 
                programs in reading, writing, and English 
                language acquisition for children, youth, and 
                adults, including professional development 
                programs; and
                  ``(G) provide opportunities for technical 
                assistance, meetings, and conferences that will 
                foster increased coordination among Federal, 
                State, and local agencies and entities and 
                improvement of reading, writing, and English 
                language acquisition skills for children, 
                youth, and adults.
          ``(2) Coordination.--In identifying scientifically 
        based research on reading, writing, and English 
        language acquisition for children, youth, and adults, 
        the Institute shall use standards for research quality 
        that are consistent with those established by the 
        Institute of Education Sciences.
          ``(3) Grants, contracts, and cooperative 
        agreements.--
                  ``(A) In general.--The Institute may award 
                grants to, or enter into contracts or 
                cooperative agreements with, individuals, 
                public or private institutions, agencies, 
                organizations, or consortia of such 
                individuals, institutions, agencies, or 
                organizations, to carry out the activities of 
                the Institute.
                  ``(B) Regulations.--The Director may adopt 
                the general administrative regulations of the 
                Department of Education, as applicable, for use 
                by the Institute.
                  ``(C) Relation to other laws.--The duties and 
                powers of the Institute under this title are in 
                addition to the duties and powers of the 
                Institute under subparts 1, 2, and 3 of part B 
                of the Elementary and Secondary Education Act 
                of 1965 (commonly referred to as Reading First, 
                Early Reading First, and the William F. 
                Goodling Even Start Family Literacy Program, 
                respectively).
  ``(c) Visiting Scholars.--The Institute may establish a 
visiting scholars program, with such stipends and allowances as 
the Director considers necessary, for outstanding researchers, 
scholars, and individuals who--
          ``(1) have careers in adult education, workforce 
        development, or scientifically based reading, writing, 
        or English language acquisition; and
          ``(2) can assist the Institute in translating 
        research into practice and providing analysis that 
        advances instruction in the fields of reading, writing, 
        and English language acquisition for children, youth, 
        and adults.
  ``(d) Interns and Volunteers.--The Institute, in consultation 
with the National Institute for Literacy Advisory Board, may 
award paid and unpaid internships to individuals seeking to 
assist the Institute in carrying out its purpose. 
Notwithstanding section 1342 of title 31, United States Code, 
the Institute may accept and use voluntary and uncompensated 
services as the Institute determines necessary.
  ``(e) National Institute for Literacy Advisory Board.--
          ``(1) Establishment.--
                  ``(A) In general.--There shall be a National 
                Institute for Literacy Advisory Board (in this 
                section referred to as the `Board'), which 
                shall consist of 10 individuals appointed by 
                the President with the advice and consent of 
                the Senate.
                  ``(B) Qualifications.--The Board shall be 
                composed of individuals who--
                          ``(i) are not otherwise officers or 
                        employees of the Federal Government; 
                        and
                          ``(ii) are knowledgeable about 
                        current effective scientifically based 
                        research findings on instruction in 
                        reading, writing, and English language 
                        acquisition for children, youth, and 
                        adults.
                  ``(C) Composition.--The Board may include--
                          ``(i) representatives of business, 
                        industry, labor, literacy 
                        organizations, adult education 
                        providers, community colleges, students 
                        with disabilities, and State agencies, 
                        including State directors of adult 
                        education; and
                          ``(ii) individuals who, and 
                        representatives of entities that, have 
                        been successful in improving skills in 
                        reading, writing, and English language 
                        acquisition for children, youth, and 
                        adults.
          ``(2) Duties.--The Board shall--
                  ``(A) make recommendations concerning the 
                appointment of the Director of the Institute;
                  ``(B) provide independent advice on the 
                operation of the Institute;
                  ``(C) receive reports from the Interagency 
                Group and the Director; and
                  ``(D) review the biennial report to the 
                Congress under subsection (k).
          ``(3) Federal advisory committee act.--Except as 
        otherwise provided, the Board shall be subject to the 
        provisions of the Federal Advisory Committee Act.
          ``(4) Appointments.--
                  ``(A) In general.--Each member of the Board 
                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.
                  ``(B) 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.
          ``(5) Quorum.--A majority of the members of the Board 
        shall constitute a quorum, but a lesser number may hold 
        hearings. A recommendation of the Board may be passed 
        only by a majority of the Board's members present at a 
        meeting for which there is a quorum.
          ``(6) Election of officers.--The Chairperson and Vice 
        Chairperson of the Board shall be elected by the 
        members of the Board. The term of office of the 
        Chairperson and Vice Chairperson shall be 2 years.
          ``(7) Meetings.--The Board shall meet at the call of 
        the Chairperson or a majority of the members of the 
        Board.
  ``(f) Gifts, Bequests, and Devises.--
          ``(1) In general.--The Institute may accept, 
        administer, and use gifts or donations of services, 
        money, or property, whether real or personal, tangible 
        or intangible.
          ``(2) Rules.--The Board shall establish written rules 
        setting forth the criteria to be used by the Institute 
        in determining whether the acceptance of contributions 
        of services, money, or property whether real or 
        personal, tangible or intangible, would reflect 
        unfavorably upon the ability of the Institute or any 
        employee to carry out the responsibilities of the 
        Institute or employee, or official duties, in a fair 
        and objective manner, or would compromise the 
        integrity, or the appearance of the integrity, of the 
        Institute's programs or any official involved in those 
        programs.
  ``(g) Mails.--The Board and the Institute may use the United 
States mails in the same manner and under the same conditions 
as other departments and agencies of the United States.
  ``(h) Director.--The Secretary of Education, after 
considering recommendations made by the Board and consulting 
with the Interagency Group, shall appoint and fix the pay of 
the Director of the Institute and, when necessary, shall 
appoint an Interim Director of the Institute.
  ``(i) Applicability of Certain Civil Service Laws.--The 
Director and staff of the Institute may be appointed without 
regard to the provisions of title 5, United States Code, 
governing appointments in the competitive service, and may be 
paid without regard to the provisions of chapter 51 and 
subchapter III of chapter 53 of that title relating to 
classification and General Schedule pay rates, except that an 
individual so appointed may not receive pay in excess of the 
annual rate of basic pay payable for level IV of the Executive 
Schedule.
  ``(j) Experts and Consultants.--The Institute may procure 
temporary and intermittent services under section 3109(b) of 
title 5, United States Code.
  ``(k) Biennial Report.--
          ``(1) In general.--The Institute shall submit a 
        report biennially to the Committee on Education and 
        Labor of the House of Representatives and the Committee 
        on Health, Education, Labor, and Pensions of the 
        Senate. Each report submitted under this subsection 
        shall include--
                  ``(A) a comprehensive and detailed 
                description of the Institute's operations, 
                activities, financial condition, and 
                accomplishments in identifying and describing 
                programs on reading, writing, and English 
                language acquisition for children, youth, and 
                adults for the period covered by the report; 
                and
                  ``(B) a description of how plans for the 
                operation of the Institute for the succeeding 2 
                fiscal years will facilitate achievement of the 
                purpose of the Institute.
          ``(2) First report.--The Institute shall submit its 
        first report under this subsection to the Congress not 
        later than 1 year after the date of the enactment of 
        the Workforce Investment Improvement Act of 2007.
  ``(l) Additional Funding.--In addition to the funds 
authorized under section 205 and reserved for the Institute 
under section 211, the Secretary of Education, the Secretary of 
Health and Human Services, the Secretary of Labor, or the head 
of any other Federal agency or department that participates in 
the activities of the Institute may provide funds to the 
Institute for activities that the Institute is authorized to 
perform under this section.

``SEC. 243. NATIONAL LEADERSHIP ACTIVITIES.

  ``The Secretary shall establish and carry out a program of 
national leadership activities that may include the following:
          ``(1) Technical assistance, on request, including 
        assistance--
                  ``(A) on request to volunteer community- and 
                faith-based organizations, including but not 
                limited to, improving their fiscal management, 
                research-based instruction, and reporting 
                requirements, and the development of measurable 
                objectives to carry out the requirements of 
                this title;
                  ``(B) in developing valid, measurable, and 
                reliable performance data, and using 
                performance information for the improvement of 
                adult education basic skills, English language 
                acquisition, and family literacy education 
                programs;
                  ``(C) on adult education professional 
                development; and
                  ``(D) in using distance learning and 
                improving the application of technology in the 
                classroom, including instruction in English 
                language acquisition for individuals who have 
                limited English proficiency.
          ``(2) Providing for the conduct of research on 
        national literacy basic skill acquisition levels among 
        adults, including the number of limited English 
        proficient adults functioning at different levels of 
        reading proficiency.
          ``(3) Improving the coordination, efficiency, and 
        effectiveness of adult education and workforce 
        development services at the national, State, and local 
        levels.
          ``(4) Determining how participation in adult 
        education basic skills, English language acquisition, 
        and family literacy education programs prepares 
        individuals for entry into and success in postsecondary 
        education and employment, and in the case of prison-
        based services, the effect on recidivism.
          ``(5) Evaluating how different types of providers, 
        including community and faith-based organizations or 
        private for-profit agencies measurably improve the 
        skills of participants in adult education basic skills, 
        English language acquisition, and family literacy 
        education programs.
          ``(6) Identifying model integrated basic and 
        workplace skills education programs, including programs 
        for individuals with limited English proficiency 
        coordinated literacy and employment services, and 
        effective strategies for serving adults with 
        disabilities.
          ``(7) Supporting the development of an entity that 
        would produce and distribute technology-based programs 
        and materials for adult education, basic skills, and 
        family literacy education programs using an 
        intercommunication system, as that term is defined in 
        section 397 of the Communications Act of 1934, and 
        expand the effective outreach and use of such programs 
        and materials to adult education eligible providers.
          ``(8) Initiating other activities designed to improve 
        the measurable quality and effectiveness of adult 
        education basic skills, English language acquisition, 
        and family literacy education programs nationwide.''.

            Subtitle C--Amendments to the Wagner-Peyser Act

SEC. 461. AMENDMENTS TO THE WAGNER-PEYSER ACT.

  The Wagner-Peyser Act (29 U.S.C. 49 et seq.) is amended--
          (1) by striking sections 1 through 13;
          (2) in section 14 by inserting ``of Labor'' after 
        ``Secretary''; and
          (3) by amending section 15 to read as follows:

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

  ``(a) System Content.--
          ``(1) In general.--The Secretary of Labor, in 
        accordance with the provisions of this section, shall 
        oversee the development, maintenance, and continuous 
        improvement of a nationwide workforce and labor market 
        information system that includes--
                  ``(A) statistical data from cooperative 
                statistical survey and projection programs and 
                data from administrative reporting systems 
                that, taken together, enumerate, estimate, and 
                project employment opportunities and conditions 
                at national, State, and local levels in a 
                timely manner, including statistics on--
                          ``(i) employment and unemployment 
                        status of national, State, and local 
                        populations, including self-employed, 
                        part-time, and seasonal workers;
                          ``(ii) industrial distribution of 
                        occupations, as well as current and 
                        projected employment opportunities, 
                        wages, benefits (where data is 
                        available), and skill trends by 
                        occupation and industry, with 
                        particular attention paid to State and 
                        local conditions;
                          ``(iii) the incidence of, industrial 
                        and geographical location of, and 
                        number of workers displaced by, 
                        permanent layoffs and plant closings; 
                        and
                          ``(iv) employment and earnings 
                        information maintained in a 
                        longitudinal manner to be used for 
                        research and program evaluation;
                  ``(B) information on State and local 
                employment opportunities, and other appropriate 
                statistical data related to labor market 
                dynamics, which--
                          ``(i) shall be current and 
                        comprehensive;
                          ``(ii) shall meet the needs 
                        identified through the consultations 
                        described in subparagraphs (A) and (B) 
                        of subsection (e)(2); and
                          ``(iii) shall meet the needs for the 
                        information identified in section 
                        134(d);
                  ``(C) technical standards (which the 
                Secretary shall publish annually) for data and 
                information described in subparagraphs (A) and 
                (B) that, at a minimum, meet the criteria of 
                chapter 35 of title 44, United States Code;
                  ``(D) procedures to ensure compatibility and 
                additivity of the data and information 
                described in subparagraphs (A) and (B) from 
                national, State, and local levels;
                  ``(E) procedures to support standardization 
                and aggregation of data from administrative 
                reporting systems described in subparagraph (A) 
                of employment-related programs;
                  ``(F) analysis of data and information 
                described in subparagraphs (A) and (B) for uses 
                such as--
                          ``(i) national, State, and local 
                        policymaking;
                          ``(ii) implementation of Federal 
                        policies (including allocation 
                        formulas);
                          ``(iii) program planning and 
                        evaluation; and
                          ``(iv) researching labor market 
                        dynamics;
                  ``(G) wide dissemination of such data, 
                information, and analysis in a user-friendly 
                manner and voluntary technical standards for 
                dissemination mechanisms; and
                  ``(H) programs of--
                          ``(i) training for effective data 
                        dissemination;
                          ``(ii) research and demonstration; 
                        and
                          ``(iii) programs and technical 
                        assistance.
          ``(2) Information to be confidential.--
                  ``(A) In general.--No officer or employee of 
                the Federal Government or agent of the Federal 
                Government may--
                          ``(i) use any submission that is 
                        furnished for exclusively statistical 
                        purposes under the provisions of this 
                        section for any purpose other than the 
                        statistical purposes for which the 
                        submission is furnished;
                          ``(ii) disclose to the public any 
                        publication or media transmittal of the 
                        data contained in the submission 
                        described in clause (i) that permits 
                        information concerning an individual 
                        subject to be reasonably inferred by 
                        either direct or indirect means; or
                          ``(iii) permit anyone other than a 
                        sworn officer, employee, or agent of 
                        any Federal department or agency, or a 
                        contractor (including an employee of a 
                        contractor) of such department or 
                        agency, to examine an individual 
                        submission described in clause (i),
                without the consent of the individual, agency, 
                or other person who is the subject of the 
                submission or provides that submission.
                  ``(B) Immunity from legal process.--Any 
                submission (including any data derived from the 
                submission) that is collected and retained by a 
                Federal department or agency, or an officer, 
                employee, agent, or contractor of such a 
                department or agency, for exclusively 
                statistical purposes under this section shall 
                be immune from the legal process and shall not, 
                without the consent of the individual, agency, 
                or other person who is the subject of the 
                submission or provides that submission, be 
                admitted as evidence or used for any purpose in 
                any action, suit, or other judicial or 
                administrative proceeding.
                  ``(C) Rule of construction.--Nothing in this 
                section shall be construed to provide immunity 
                from the legal process for such submission 
                (including any data derived from the 
                submission) if the submission is in the 
                possession of any person, agency, or entity 
                other than the Federal Government or an 
                officer, employee, agent, or contractor of the 
                Federal Government, or if the submission is 
                independently collected, retained, or produced 
                for purposes other than the purposes of this 
                Act.
  ``(b) System Responsibilities.--
          ``(1) In general.--The workforce and labor market 
        information system described in subsection (a) shall be 
        planned, administered, overseen, and evaluated through 
        a cooperative governance structure involving the 
        Federal Government and States.
          ``(2) Duties.--The Secretary, with respect to data 
        collection, analysis, and dissemination of workforce 
        and labor market information for the system, shall 
        carry out the following duties:
                  ``(A) Assign responsibilities within the 
                Department of Labor for elements of the 
                workforce and labor market information system 
                described in subsection (a) to ensure that all 
                statistical and administrative data collected 
                is consistent with appropriate Bureau of Labor 
                Statistics standards and definitions.
                  ``(B) Actively seek the cooperation of other 
                Federal agencies to establish and maintain 
                mechanisms for ensuring complementarity and 
                nonduplication in the development and operation 
                of statistical and administrative data 
                collection activities.
                  ``(C) Eliminate gaps and duplication in 
                statistical undertakings, with the 
                systemization of wage surveys as an early 
                priority.
                  ``(D) In collaboration with the Bureau of 
                Labor Statistics and States, develop and 
                maintain the elements of the workforce and 
                labor market information system described in 
                subsection (a), including the development of 
                consistent procedures and definitions for use 
                by the States in collecting the data and 
                information described in subparagraphs (A) and 
                (B) of subsection (a)(1).
                  ``(E) Establish procedures for the system to 
                ensure that--
                          ``(i) such data and information are 
                        timely;
                          ``(ii) paperwork and reporting for 
                        the system are reduced to a minimum; 
                        and
                          ``(iii) States and localities are 
                        fully involved in the development and 
                        continuous improvement of the system at 
                        all levels.
  ``(c) National Electronic Tools To Provide Services.--The 
Secretary is authorized to assist in the development of 
national electronic tools that may be used to facilitate the 
delivery of work ready services described in section 134 and to 
provide workforce information to individuals through the one-
stop delivery systems described in section 121 and through 
other appropriate delivery systems.
  ``(d) Coordination With the States.--
          ``(1) In general.--The Secretary, working through the 
        Bureau of Labor Statistics and the Employment and 
        Training Administration, shall regularly consult with 
        representatives of State agencies carrying out 
        workforce information activities regarding strategies 
        for improving the workforce and labor market 
        information system.
          ``(2) Formal consultations.--At least twice each 
        year, the Secretary, working through the Bureau of 
        Labor Statistics, shall conduct formal consultations 
        regarding programs carried out by the Bureau of Labor 
        Statistics with representatives of each of the 6 
        Federal regions of the Bureau of Labor Statistics, 
        elected (pursuant to a process established by the 
        Secretary) from the State directors affiliated with 
        State agencies that perform the duties described in 
        subsection (e)(2).
  ``(e) State Responsibilities.--
          ``(1) In general.--In order to receive Federal 
        financial assistance under this section, the Governor 
        of a State shall--
                  ``(A) be responsible for the management of 
                the portions of the workforce and labor market 
                information system described in subsection (a) 
                that comprise a statewide workforce and labor 
                market information system and for the State's 
                participation in the development of the annual 
                plan;
                  ``(B) establish a process for the oversight 
                of such system;
                  ``(C) consult with State and local employers, 
                participants, and local workforce investment 
                boards about the labor market relevance of the 
                data to be collected and disseminated through 
                the statewide workforce and labor market 
                information system;
                  ``(D) consult with State educational agencies 
                and local educational agencies concerning the 
                provision of employment statistics in order to 
                meet the needs of secondary school and 
                postsecondary school students who seek such 
                information;
                  ``(E) collect and disseminate for the system, 
                on behalf of the State and localities in the 
                State, the information and data described in 
                subparagraphs (A) and (B) of subsection (a)(1);
                  ``(F) maintain and continuously improve the 
                statewide workforce and labor market 
                information system in accordance with this 
                section;
                  ``(G) perform contract and grant 
                responsibilities for data collection, analysis, 
                and dissemination for such system;
                  ``(H) conduct such other data collection, 
                analysis, and dissemination activities as will 
                ensure an effective statewide workforce and 
                labor market information system;
                  ``(I) actively seek the participation of 
                other State and local agencies in data 
                collection, analysis, and dissemination 
                activities in order to ensure complementarity, 
                compatibility, and usefulness of data;
                  ``(J) participate in the development of the 
                annual plan described in subsection (c); and
                  ``(K) utilize the quarterly records described 
                in section 136(f)(2) of the Workforce 
                Investment Act of 1998 to assist the State and 
                other States in measuring State progress on 
                State performance measures.
          ``(2) Rule of construction.--Nothing in this section 
        shall be construed as limiting the ability of a 
        Governor to conduct additional data collection, 
        analysis, and dissemination activities with State funds 
        or with Federal funds from sources other than this 
        section.
  ``(f) Nonduplication Requirement.--None of the functions and 
activities carried out pursuant to this section shall duplicate 
the functions and activities carried out under the Carl D. 
Perkins Vocational and Applied Technology Education Act (20 
U.S.C. 2301 et seq.).
  ``(g) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as may 
be necessary for each of the fiscal years 2008 through 2012.
  ``(h) Definition.--In this section, the term `local area' 
means the smallest geographical area for which data can be 
produced with statistical reliability.''.

        Subtitle D--Amendments to the Rehabilitation Act of 1973

SEC. 471. FINDINGS.

  Section 2(a) of the Rehabilitation Act of 1973 (29 U.S.C. 
701(a)) is amended--
          (1) in paragraph (5), by striking ``and'' at the end;
          (2) in paragraph (6), by striking the period and 
        inserting ``; and''; and
          (3) by adding at the end the following:
          ``(7) there is a substantial need to improve and 
        expand services for students with disabilities under 
        this Act.''.

SEC. 472. REHABILITATION SERVICES ADMINISTRATION.

  Section 3(a) of the Rehabilitation Act of 1973 (29 U.S.C. 
702(a)) is amended--
          (1) by striking ``Office of the Secretary'' and 
        inserting ``Department of Education'';
          (2) by striking ``President by and with the advice 
        and consent of the Senate'' and inserting ``Secretary, 
        except that the Commissioner appointed under the 
        authority existing on the day prior to the date of 
        enactment of the Workforce Investment Improvement Act 
        of 2007 may continue to serve in the former capacity''; 
        and
          (3) by striking ``, and the Commissioner shall be the 
        principal officer,''.

SEC. 473. DIRECTOR.

  (a) In General.--The Rehabilitation Act of 1973 (29 U.S.C. 
701 et seq.) is amended--
          (1) by striking ``Commissioner'' each place it 
        appears, except in sections 3(a) (as amended by section 
        472) and 21, and inserting ``Director'';
          (2) in section 100(d)(2)(B), by striking 
        ``COMMISSIONER'' and inserting ``DIRECTOR'';
          (3) in section 706, by striking ``COMMISSIONER'' and 
        inserting ``DIRECTOR''; and
          (4) in section 723(a)(3), by striking 
        ``COMMISSIONER'' and inserting ``DIRECTOR''.
  (b) Exception.--Section 21 of the Rehabilitation Act of 1973 
(29 U.S.C. 718) is amended--
          (1) in subsection (b)(1)--
                  (A) by striking ``Commissioner'' the first 
                place it appears and inserting ``Director of 
                the Rehabilitation Services Administration''; 
                and
                  (B) by striking ``(referred to in this 
                subsection as the `Director')''; and
          (2) by striking ``Commissioner and the Director'' 
        each place it appears and inserting ``both such 
        Directors''.

SEC. 474. DEFINITIONS.

  Section 7 of the Rehabilitation Act of 1973 (29 U.S.C. 705) 
is amended--
          (1) by redesignating paragraphs (35) through (39) as 
        paragraphs (36), (37), (38), (40), and (41), 
        respectively;
          (2) in subparagraph (A)(ii) of paragraph (36) (as 
        redesignated in paragraph (1)), by striking ``paragraph 
        (36)(C)'' and inserting ``paragraph (37)(C)'';
          (3) by inserting after paragraph (34) the following:
          ``(35)(A) The term `student with a disability' means 
        an individual with a disability who--
                  ``(i) is not younger than 16 and not older 
                than 21;
                  ``(ii) has been determined to be eligible 
                under section 102(a) for assistance under this 
                title; and
                  ``(iii)(I) is eligible for, and is receiving, 
                special education under part B of the 
                Individuals with Disabilities Education Act (20 
                U.S.C. 1411 et seq.); or
                  ``(II) is an individual with a disability, 
                for purposes of section 504.
          ``(B) The term `students with disabilities' means 
        more than 1 student with a disability.''; and
          (4) by inserting after paragraph (38) (as 
        redesignated by paragraph (1)) the following:
          ``(39) The term `transition services expansion year' 
        means--
                  ``(A) the first fiscal year for which the 
                amount appropriated under section 100(b) 
                exceeds the amount appropriated under section 
                100(b) for fiscal year 2004 by not less than 
                $100,000,000; and
                  ``(B) each fiscal year subsequent to that 
                first fiscal year.''.

SEC. 475. STATE PLAN.

  (a) Coordination With Education Officials and Assistive 
Technology Programs.--Section 101(a)(11) of the Rehabilitation 
Act of 1973 (29 U.S.C. 721(a)(11)) is amended--
          (1) in subparagraph (D)(i) by inserting ``, which may 
        be provided using alternative means of meeting 
        participation (such as video conferences and conference 
        calls)'' before the semicolon; and
          (2) by adding at the end the following:
                  ``(G) Coordination with assistive technology 
                programs.--The State plan shall include an 
                assurance that the designated State unit and 
                the lead agency responsible for carrying out 
                duties under the Assistive Technology Act of 
                1998 (29 U.S.C. 3001), as amended, have 
                developed working relationships and coordinate 
                their activities.''.
  (b) Assessment and Strategies.--Section 101(a)(15) of the 
Rehabilitation Act of 1973 (29 U.S.C. 721(a)(15)) is amended--
          (1) in subparagraph (A)
                  (A) in clause (i)--
                          (i) in subclause (II), by striking 
                        ``and'' at the end;
                          (ii) in subclause (III), by adding 
                        ``and'' at the end; and
                          (iii) by adding at the end the 
                        following:
                                  ``(IV) in a transition 
                                services expansion year, 
                                students with disabilities, 
                                including their need for 
                                transition services;''; and
                  (B) by redesignating clauses (ii) and (iii) 
                as clauses (iii) and (iv), respectively, and 
                inserting after clause (i) the following:
                          ``(ii) include an assessment of the 
                        transition services provided under this 
                        Act, and coordinated with transition 
                        services under the Individuals with 
                        Disabilities Education Act, as to those 
                        services meeting the needs of 
                        individuals with disabilities;''; and
          (2) in subparagraph (D)--
                  (A) by redesignating clauses (iii), (iv), and 
                (v) as clauses (iv), (v), and (vi), 
                respectively; and
                  (B) by inserting after clause (ii) the 
                following:
                          ``(iii) in a transition services 
                        expansion year, the methods to be used 
                        to improve and expand vocational 
                        rehabilitation services for students 
                        with disabilities, including the 
                        coordination of services designed to 
                        facilitate the transition of such 
                        students from the receipt of 
                        educational services in school to the 
                        receipt of vocational rehabilitation 
                        services under this title or to 
                        postsecondary education or 
                        employment;''.
  (c) Services for Students With Disabilities.--Section 101(a) 
of the Rehabilitation Act of 1973 (29 U.S.C. 721(a)) is further 
amended by adding at the end the following:
          ``(25) Services for students with disabilities.--The 
        State plan for a transition services expansion year 
        shall provide an assurance satisfactory to the 
        Secretary that the State--
                  ``(A) has developed and implemented 
                strategies to address the needs identified in 
                the assessment described in paragraph (15), and 
                achieve the goals and priorities identified by 
                the State, to improve and expand vocational 
                rehabilitation services for students with 
                disabilities on a statewide basis in accordance 
                with paragraph (15); and
                  ``(B) from funds reserved under section 110A, 
                shall carry out programs or activities designed 
                to improve and expand vocational rehabilitation 
                services for students with disabilities that--
                          ``(i) facilitate the transition of 
                        the students with disabilities from the 
                        receipt of educational services in 
                        school, to the receipt of vocational 
                        rehabilitation services under this 
                        title, including, at a minimum, those 
                        services specified in the interagency 
                        agreement required in paragraph 
                        (11)(D);
                          ``(ii) improve the achievement of 
                        post-school goals of students with 
                        disabilities, including improving the 
                        achievement through participation (as 
                        appropriate when vocational goals are 
                        discussed) in meetings regarding 
                        individualized education programs 
                        developed under section 614 of the 
                        Individuals with Disabilities Education 
                        Act (20 U.S.C. 1414);
                          ``(iii) provide vocational guidance, 
                        career exploration services, and job 
                        search skills and strategies and 
                        technical assistance to students with 
                        disabilities;
                          ``(iv) support the provision of 
                        training and technical assistance to 
                        State and local educational agency and 
                        designated State agency personnel 
                        responsible for the planning and 
                        provision of services to students with 
                        disabilities; and
                          ``(v) support outreach activities to 
                        students with disabilities who are 
                        eligible for, and need, services under 
                        this title.''.

SEC. 476. SCOPE OF SERVICES.

  Section 103 of the Rehabilitation Act of 1973 (29 U.S.C. 723) 
is amended--
          (1) in subsection (a), by striking paragraph (15) and 
        inserting the following:
          ``(15) transition services for students with 
        disabilities, that facilitate the achievement of the 
        employment outcome identified in the individualized 
        plan for employment, including, in a transition 
        services expansion year, services described in clauses 
        (i) through (iii) of section 101(a)(25)(B);'';
          (2) in subsection (b), by striking paragraph (6) and 
        inserting the following:
          ``(6)(A)(i) Consultation and technical assistance 
        services to assist State and local educational agencies 
        in planning for the transition of students with 
        disabilities from school to post-school activities, 
        including employment.
          ``(ii) In a transition services expansion year, 
        training and technical assistance described in section 
        101(a)(25)(B)(iv).
          ``(B) In a transition services expansion year, 
        services for groups of individuals with disabilities 
        who meet the requirements of clauses (i) and (iii) of 
        section 7(35)(A), including services described in 
        clauses (i), (ii), (iii), and (v) of section 
        101(a)(25)(B), to assist in the transition from school 
        to post-school activities.''; and
          (3) in subsection (b) by inserting at the end, the 
        following:
          ``(7) The establishment, development, or improvement 
        of assistive technology demonstration, loan, 
        reutilization, or financing programs in coordination 
        with activities authorized under the Assistive 
        Technology Act of 1998 (29 U.S.C. 3001), as amended, to 
        promote access to assistive technology for individuals 
        with disabilities and employers.''.

SEC. 477. STANDARDS AND INDICATORS.

  Section 106(a) of the Rehabilitation Act of 1973 (29 U.S.C. 
726(a)) is amended by striking paragraph (1)(C) and all that 
follows through paragraph (2) and inserting the following:
          ``(2) Measures.--The standards and indicators shall 
        include outcome and related measures of program 
        performance that--
                  ``(A) facilitate the accomplishment of the 
                purpose and policy of this title;
                  ``(B) to the maximum extent practicable, are 
                consistent with the core indicators of 
                performance, and corresponding State adjusted 
                levels of performance, established under 
                section 136(b) of the Workforce Investment Act 
                of 1998 (29 U.S.C. 2871(b)); and
                  ``(C) include measures of the program's 
                performance with respect to the transition to 
                post-school vocational activities, and 
                achievement of the post-school vocational 
                goals, of students with disabilities served 
                under the program.''.

SEC. 478. RESERVATION FOR EXPANDED TRANSITION SERVICES.

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

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

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

SEC. 479. CLIENT ASSISTANCE PROGRAM.

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

SEC. 480. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.

  Section 509(g)(2) of the Rehabilitation Act of 1973 (29 
U.S.C. 794e(g)(2)) is amended by striking ``was paid'' and 
inserting ``was paid, except that program income generated from 
such amount shall remain available to such system for one 
additional fiscal year''.

SEC. 481. CHAIRPERSON.

  Section 705(b)(5) of the Rehabilitation Act of 1973 (29 
U.S.C. 796d(b)(5)) is amended to read as follows:
          ``(5) Chairperson.--The Council shall select a 
        chairperson from among the voting membership of the 
        Council.''.

SEC. 482. AUTHORIZATIONS OF APPROPRIATIONS.

  The Rehabilitation Act of 1973 is further amended--
          (1) in section 100(b)(1) by striking ``fiscal years 
        1999 through 2003'' and inserting ``fiscal years 2008 
        through 2012'';
          (2) in section 100(d)(1)(B) by striking ``fiscal year 
        2003'' and inserting ``fiscal year 2012'';
          (3) in section 110(c) by amending paragraph (2) to 
        read as follows:
          ``(2) The sum referred to in paragraph (1) shall be, 
        as determined by the Secretary, not less than 1 percent 
        and not more than 1.5 percent of the amount referred to 
        in paragraph (1) for each of fiscal years 2008 through 
        2012.'';
          (4) in section 112(h) by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2008 
        through 2012'';
          (5) in section 201(a) by striking ``fiscal years 1999 
        through 2003'' each place it appears and inserting 
        ``fiscal years 2008 through 2012'';
          (6) in section 302(i) by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2008 
        through 2012'';
          (7) in section 303(e) by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2008 
        through 2012'';
          (8) in section 304(b) by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2008 
        through 2012'';
          (9) in section 305(b) by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2008 
        through 2012'';
          (10) in section 405 by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2008 
        through 2012'';
          (11) in section 502(j) by striking ``fiscal years 
        1999 through 2003'' and inserting ``fiscal years 2008 
        through 2012'';
          (12) in section 509(l) by striking ``fiscal years 
        1999 through 2003'' and inserting ``fiscal years 2008 
        through 2012'';
          (13) in section 612 by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2008 
        through 2012'';
          (14) in section 628 by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2008 
        through 2012'';
          (15) in section 714 by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2008 
        through 2012'';
          (16) in section 727 by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2008 
        through 2012''; and
          (17) in section 753 by striking ``fiscal years 1999 
        through 2003'' and inserting ``fiscal years 2008 
        through 2012''.

SEC. 483. CONFORMING AMENDMENT.

  Section 1(b) of the Rehabilitation Act of 1973 is amended by 
inserting after the item relating to section 110 the following:

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

SEC. 484. HELEN KELLER NATIONAL CENTER ACT.

  (a) General Authorization of Appropriations.--The first 
sentence of section 205(a) of the Helen Keller National Center 
Act (29 U.S.C. 1904(a)) is amended by striking ``1999 through 
2003'' and inserting ``2008 through 2012''.
  (b) Helen Keller National Center Federal Endowment Fund.--The 
first sentence of section 208(h) of such Act (29 U.S.C. 
1907(h)) is amended by striking ``1999 through 2003'' and 
inserting ``2008 through 2012''.

               Subtitle E--Transition and Effective Date

SEC. 491. TRANSITION PROVISIONS.

  The Secretary of Labor shall take such actions as the 
Secretary determines to be appropriate to provide for the 
orderly implementation of this title.

SEC. 492. EFFECTIVE DATE.

  Except as otherwise provided in this title, this title and 
the amendments made by this title, shall take effect on the 
date of enactment of this Act.

                                  
