Workforce Investment Act Amendments of 2005

        [Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 27 Engrossed Amendment Senate (EAS)]

In the Senate of the United States,

June 29, 2006.
Resolved, That the bill from the House of Representatives (H.R. 27)
entitled ``An Act to enhance the workforce investment system of the
Nation by strengthening one-stop career centers, providing for more
effective governance arrangements, promoting access to a more
comprehensive array of employment, training, and related services,
establishing a targeted approach to serving youth, and improving
performance accountability, and for other purposes.'', do pass with the
following

AMENDMENT:

Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Workforce Investment Act Amendments
of 2005''.

SEC. 2. TABLE OF CONTENTS.

The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.

TITLE I--AMENDMENTS TO TITLE I OF THE WORKFORCE INVESTMENT ACT OF 1998

Subtitle A--Definitions

Sec. 101. Definitions.

Subtitle B--Statewide and Local Workforce Investment Systems

Sec. 111. Purpose.
Sec. 112. State workforce investment boards.
Sec. 113. State plan.
Sec. 114. Local workforce investment areas.
Sec. 115. Local workforce investment boards.
Sec. 116. Local plan.
Sec. 117. Establishment of one-stop delivery systems.
Sec. 118. Eligible providers of training services.
Sec. 119. Eligible providers of youth activities.
Sec. 120. Youth activities.
Sec. 121. Adult and dislocated worker employment and training
activities.
Sec. 122. Performance accountability system.
Sec. 123. Authorization of appropriations.

Subtitle C--Job Corps

Sec. 131. Job Corps.

Subtitle D--National Programs

Sec. 141. Native American programs.
Sec. 142. Migrant and seasonal farmworker programs.
Sec. 143. Veterans' workforce investment programs.
Sec. 144. Youth challenge grants.
Sec. 145. Technical assistance.
Sec. 146. Demonstration, pilot, multiservice, research, and multistate
projects.
Sec. 147. National dislocated worker grants.
Sec. 148. Authorization of appropriations for national activities.

Subtitle E--Administration

Sec. 151. Requirements and restrictions.
Sec. 152. Reports.
Sec. 153. Administrative provisions.
Sec. 154. Use of certain real property.
Sec. 155. General program requirements.

Subtitle F--Incentive Grants

Sec. 161. Incentive grants.

Subtitle G--Conforming Amendments

Sec. 171. Table of contents.
Sec. 172. Conforming amendments.

TITLE II--AMENDMENTS TO THE ADULT EDUCATION AND FAMILY LITERACY ACT

Sec. 201. Short title; purpose.
Sec. 202. Definitions.
Sec. 203. Home schools.
Sec. 204. Authorization of appropriations.
Sec. 205. Reservation of funds; grants to eligible agencies;
allotments.
Sec. 206. Performance accountability system.
Sec. 207. State administration.
Sec. 208. State distribution of funds; matching requirement.
Sec. 209. State leadership activities.
Sec. 210. State plan.
Sec. 211. Programs for corrections education and other
institutionalized individuals.
Sec. 212. Grants and contracts for eligible providers.
Sec. 213. Local application.
Sec. 214. Local administrative cost limits.
Sec. 215. Administrative provisions.
Sec. 216. National Institute for Literacy.
Sec. 217. National leadership activities.
Sec. 218. Integrated English literacy and civics education.
Sec. 219. Transition.

TITLE III--AMENDMENTS TO OTHER PROVISIONS OF LAW

Sec. 301. Wagner-Peyser Act.

TITLE IV--REHABILITATION ACT AMENDMENTS

Sec. 401. Short title.
Sec. 402. Technical amendments to table of contents.
Sec. 403. Purpose.
Sec. 404. Rehabilitation Services Administration
Sec. 405. Definitions.
Sec. 406. Administration of the Act.
Sec. 407. Reports.
Sec. 408. Carryover.

Subtitle A--Vocational Rehabilitation Services

Sec. 411. Declaration of policy; authorization of appropriations.
Sec. 412. State plans.
Sec. 413. Eligibility and individualized plan for employment.
Sec. 414. Vocational rehabilitation services.
Sec. 415. State rehabilitation council.
Sec. 416. Evaluation standards and performance indicators.
Sec. 417. Monitoring and review.
Sec. 418. State allotments.
Sec. 419. Reservation for expanded transition services.
Sec. 420. Client assistance program.
Sec. 421. Incentive grants.
Sec. 422. Vocational rehabilitation services grants.
Sec. 423. GAO studies.

Subtitle B--Research and Training

Sec. 431. Declaration of purpose.
Sec. 432. Authorization of appropriations.
Sec. 433. National Institute on Disability and Rehabilitation Research.
Sec. 434. Interagency committee.
Sec. 435. Research and other covered activities.
Sec. 436. Rehabilitation Research Advisory Council.
Sec. 437. Definition.

Subtitle C--Professional Development and Special Projects and
Demonstrations

Sec. 441. Training.
Sec. 442. Demonstration and training programs.
Sec. 443. Migrant and seasonal farmworkers.
Sec. 444. Recreational programs.

Subtitle D--National Council on Disability

Sec. 451. Authorization of appropriations.

Subtitle E--Rights and Advocacy

Sec. 461. Architectural and Transportation Barriers Compliance Board.
Sec. 462. Protection and advocacy of individual rights.

Subtitle F--Employment Opportunities for Individuals With Disabilities

Sec. 471. Projects with industry.
Sec. 472. Projects with industry authorization of appropriations.
Sec. 473. Services for individuals with significant disabilities
authorization of appropriations.

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

Sec. 481. State plan.
Sec. 482. Statewide Independent Living Council.
Sec. 483. Independent living services authorization of appropriations.
Sec. 484. Program authorization.
Sec. 485. Grants to centers for independent living in States in which
Federal funding exceeds State funding.
Sec. 486. Grants to centers for independent living in States in which
State funding equals or exceeds Federal
funding.
Sec. 487. Standards and assurances for centers for independent living.
Sec. 488. Centers for independent living authorization of
appropriations.
Sec. 489. Independent living services for older individuals who are
blind.
Sec. 490. Program of grants.
Sec. 491. Independent living services for older individuals who are
blind authorization of appropriations.

Subtitle H--Miscellaneous

Sec. 495. Helen Keller National Center Act.

TITLE V--TRANSITION AND EFFECTIVE DATE

Sec. 501. Transition provisions.
Sec. 502. Effective date.

SEC. 3. REFERENCES.

Except as otherwise expressly provided, wherever in this Act an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Workforce Investment Act
of 1998 (29 U.S.C. 2801 et seq.).

TITLE I--AMENDMENTS TO TITLE I OF THE WORKFORCE INVESTMENT ACT OF 1998

Subtitle A--Definitions

SEC. 101. DEFINITIONS.

Section 101 (29 U.S.C. 2801) is amended--
(1) by redesignating paragraphs (1) through (4), (5)
through (16), (17), (18) through (41), and (42) through (53) as
paragraphs (2) through (5), (7) through (18), (20), (23)
through (46), and (48) through (59), respectively;
(2) by inserting before paragraph (2) (as redesignated by
paragraph (1)) the following:
``(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--
``(A) goods or other tangible property received;
``(B) services performed by employees, contractors,
subgrantees, subcontractors, and other payees; and
``(C) other amounts becoming owed under programs
assisted under this title for which no current services
or performance is required, such as annuities,
insurance claims, and other benefit payments.'';
(3) in paragraph (2) (as redesignated by paragraph (1)), by
striking ``Except in sections 127 and 132,'' and inserting
``Except in section 132,'';
(4) by striking paragraph (5) (as redesignated by paragraph
(1)) and inserting the following:
``(5) Basic skills deficient.--The term `basic skills
deficient' means, with respect to an individual, that the
individual--
``(A) has English reading, writing, or computing
skills at or below the 8th grade level on a generally
accepted standardized test or a comparable score on a
criterion-referenced test; or
``(B) is unable to compute or solve problems, read,
write, or speak English at a level necessary to
function on the job, in the individual's family, or in
society.'';
(5) by inserting after paragraph (5) (as redesignated by
paragraph (1)) the following:
``(6) Business intermediary.--The term `business
intermediary' means an entity that brings together various
stakeholders with an expertise in an industry or business
sector.'';
(6) in paragraph (9) (as redesignated by paragraph (1)), by
inserting ``, including a faith-based organization,'' after
``nonprofit organization'';
(7) in paragraph (10) (as redesignated by paragraph (1)),
in subparagraph (C), by striking ``for not less than 50 percent
of the cost of the training.'' and inserting ``for--
``(i) a significant portion of the cost of
training as determined by the local board,
taking into account the size of the employer
and such other factors as the local board
determines to be appropriate; and
``(ii) in the case of customized training
(as defined in subparagraphs (A) and (B)) with
an employer in multiple local areas in the
State, a significant portion of the cost of the
training, as determined by the Governor, taking
into account the size of the employer and such
other factors as the Governor determines to be
appropriate.'';
(8) in paragraph (11) (as redesignated by paragraph (1))--
(A) in subparagraph (A)(ii)(II), by striking
``section 134(c)'' and inserting ``section 121(e)'';
(B) in subparagraph (C), by striking ``or'' after
the semicolon;
(C) in subparagraph (D), by striking the period and
inserting ``; or''; and
(D) 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).'';
(9) in paragraph (12)(A) (as redesignated by paragraph
(1))--
(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'';
(10) in paragraph (14)(A) (as redesignated by paragraph
(1)), by striking ``section 122(e)(3)'' and inserting ``section
122'';
(11) by inserting after paragraph (18) (as redesignated by
paragraph (1)) the following:
``(19) Hard-to-serve populations.--The term `hard-to-serve
populations' means populations of individuals who are hard to
serve, including displaced homemakers, low-income individuals,
Native Americans, individuals with disabilities, older
individuals, ex-offenders, homeless individuals, individuals
with limited English proficiency, individuals who do not meet
the definition of literacy in section 203, individuals facing
substantial cultural barriers, migrant and seasonal
farmworkers, individuals within 2 years of exhausting lifetime
eligibility under part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.), single parents (including single
pregnant women), and such other groups as the Governor
determines to be hard to serve.'';
(12) by inserting after paragraph (20) (as redesignated by
paragraph (1)) the following:
``(21) Integrated training program.--The term `integrated
training program' means a program that combines occupational
skills training with English language acquisition.
``(22) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 101(a), and subparagraphs (A) and (B) of
section 102(a)(1), of the Higher Education Act of 1965 (20
U.S.C. 1001(a), 1002(a)(1)).'';
(13) in paragraph (30) (as redesignated by paragraph (1))--
(A) by redesignating subparagraphs (D) through (F)
as subparagraphs (E) through (G), respectively; and
(B) by inserting after subparagraph (C) the
following:
``(D) receives or is eligible to receive a free or
reduced price lunch under the Richard B. Russell
National School Lunch Act (42 U.S.C. 1751 et seq.);'';
(14) in paragraph (31) (as redesignated by paragraph (1)),
by inserting after ``fields of work'' the following: ``,
including occupations in computer science and technology and
other emerging high-skill occupations,'';
(15) in paragraph (35) (as redesignated by paragraph (1)),
by inserting ``, subject to section 121(b)(1)(C)'' after
``121(b)(1)'';
(16) by striking paragraph (38) (as redesignated by
paragraph (1)) and inserting the following:
``(38) Out-of-school youth.--The term `out-of-school youth'
means an out-of-school youth as defined in section
129(a)(1)(B).'';
(17) by inserting after paragraph (46) (as redesignated by
paragraph (1)) the following:
``(47) Self-sufficiency.--The term `self-sufficiency' means
self-sufficiency within the meaning of subsections (a)(3)(A)(x)
and (e)(1)(A)(xii) of section 134.'';
(18) in paragraph (49) (as redesignated by paragraph (1)),
by striking ``clause (iii) or (v) of section 136(b)(3)(A)'' and
inserting ``section 136(b)(3)(A)(iii)'';
(19) in paragraph (58) (as redesignated by paragraph (1)),
by striking ``(or as described in section 129(c)(5))'' and
inserting ``(or as described in section 129(a)(2))''; and
(20) in paragraph (59) (as redesignated by paragraph (1)),
by striking ``established under section 117(h)'' and inserting
``that may be established under section 117(h)(2)''.

Subtitle B--Statewide and Local Workforce Investment Systems

SEC. 111. PURPOSE.

Section 106 (29 U.S.C. 2811) is amended to read as follows:

``SEC. 106. PURPOSES.

``The purposes of this subtitle are the following:
``(1)(A) Primarily, to provide workforce investment
activities, through statewide and local workforce investment
systems, that increase the employment, retention, self-
sufficiency, and earnings of participants, and increase
occupational skill attainment by participants.
``(B) As a result of the provision of the activities, to
improve the quality of the workforce, reduce welfare
dependency, increase self-sufficiency, and enhance the
productivity and competitiveness of the Nation.
``(2) To enhance the workforce investment system of the
Nation by strengthening one-stop centers, providing for more
effective governance arrangements, promoting access to a more
comprehensive array of employment and training and related
services, establishing a targeted approach to serving youth,
improving performance accountability, and promoting State and
local flexibility.
``(3) To provide workforce investment activities in a
manner that promotes the informed choice of participants and
actively involves participants in decisions affecting their
participation in such activities.
``(4) To provide workforce investment systems that are
demand-driven and responsive to the needs of all employers,
including small employers.
``(5) To provide workforce investment systems that work in
all areas of the Nation, including urban and rural areas.
``(6) To allow flexibility to meet State, local, regional,
and individual workforce investment needs.
``(7) To recognize and reinforce the vital link between
economic development and workforce investment activities.
``(8) To provide for accurate data collection, reporting,
and performance measures that are not unduly burdensome.
``(9) To address the ongoing shortage of essential skills
in the United States workforce related to both manufacturing
and knowledge-based economies to ensure that the United States
remains competitive in the global economy.
``(10) To equip workers with higher skills and contribute
to lifelong education.
``(11) To eliminate training disincentives for hard-to-
serve populations and minority workers, including effectively
utilizing community programs, services, and agencies.
``(12) To educate limited English proficient individuals
about skills and language so the individuals are employable.
``(13) To increase the employment, retention and earnings
of individuals with disabilities.''.

SEC. 112. STATE WORKFORCE INVESTMENT BOARDS.

(a) Membership.--
(1) In general.--Section 111(b) (29 U.S.C. 2821(b)) is
amended--
(A) in paragraph (1), by striking subparagraph (C)
and inserting the following:
``(C) representatives appointed by the Governor,
who--
``(i) are 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, except
that--
``(I) in any case in which no lead
State agency official has
responsibility for such a program or
activity, the representative shall be a
representative in the State with
expertise relating to such program or
activity; and
``(II) in the case of the programs
authorized under title I of the
Rehabilitation Act of 1973 (29 U.S.C.
720 et seq.), the representative shall
be the director of the designated State
unit, as defined in section 7 of the
Rehabilitation Act of 1973 (29 U.S.C.
705);
``(ii) are the State agency officials
responsible for economic development;
``(iii) are representatives of business in
the State, including small businesses, who--
``(I) are owners of businesses,
chief executive or operating officers
of businesses, or other business
executives or employers with optimum
policymaking or hiring authority;
``(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, business trade
associations, and local boards;
``(iv) are chief elected officials
(representing cities and counties, where
appropriate);
``(v) are representatives of labor
organizations, who have been nominated by State
labor federations; and
``(vi) are such other State agency
officials and other representatives 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.
2821(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. 2821(d)) is amended--
(1) in paragraph (1), by striking ``development'' and
inserting ``development, implementation, and revision'';
(2) in paragraph (2)--
(A) by striking ``section 134(c)'' and inserting
``section 121(e)''; and
(B) in subparagraph (A), by inserting after
``section 121(b)'' the following: ``, including
granting the authority for the State employment service
under the Wagner-Peyser Act (29 U.S.C. 49 et seq.) to
plan and coordinate employment and training activities
with local boards'';
(3) by striking paragraph (3) and inserting the following:
``(3) 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, including commenting at least once annually on the
measures taken pursuant to section 113(b)(3) of the Carl D.
Perkins Vocational and Technical Education Act of 1998 (20
U.S.C. 2323(b)(3)) and title II of this Act;'';
(4) by redesignating paragraphs (4) through (9) as
paragraphs (5) through (10), respectively;
(5) by inserting after paragraph (3) the following:
``(4) development and review of statewide policies
affecting the coordinated provision of services through the
one-stop delivery system described in section 121(e) within the
State, including--
``(A) the development of objective criteria and
procedures for use by local boards in assessing the
effectiveness and continuous improvement of one-stop
centers under section 121(g);
``(B) the development of guidance for the
allocation of one-stop center infrastructure funds
under section 121(h)(1)(B);
``(C) the development of--
``(i) statewide 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;
``(ii) statewide strategies for providing
effective outreach to individuals, including
hard-to-serve populations, and employers who
could benefit from services provided through
the one-stop delivery system;
``(iii) 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; and
``(iv) strategies for the effective
coordination of activities between the one-stop
delivery system of the State and the State
employment service under the Wagner-Peyser Act
(29 U.S.C. 49 et seq.);
``(D) 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
``(E) conduct of such other matters as may promote
statewide objectives for, and enhance the performance
of, the one-stop delivery system;'';
(6) in paragraph (5) (as redesignated by paragraph (4)), by
inserting ``and the development of statewide criteria to be
used by chief elected officials for the appointment of local
boards consistent with section 117'' after ``section 116'';
(7) in paragraph (6) (as redesignated by paragraph (4)), by
striking ``sections 128(b)(3)(B) and 133(b)(3)(B)'' and
inserting ``sections 128(b)(3) and 133(b)(3)(B)'';
(8) in paragraph (9) (as redesignated by paragraph (4))--
(A) by striking ``employment statistics system''
and inserting ``workforce and labor market information
system''; and
(B) by striking ``and'' after the semicolon;
(9) in paragraph (10) (as redesignated by paragraph (4))--
(A) by inserting ``section 136(i) and'' before
``section 503''; and
(B) by striking the period and inserting ``; and'';
and
(10) by adding at the end the following:
``(11) increasing the availability of skills training,
employment opportunities, and career advancement, for hard-to-
serve populations.''.
(c) Alternative Entity.--Section 111(e) (29 U.S.C. 2821(e)) is
amended--
(1) in paragraph (1), by striking ``For'' and inserting
``Subject to paragraph (3), for''; and
(2) by adding at the end the following:
``(3) Failure to meet performance measures.--If a State
fails to have performed successfully, as defined in section
116(a)(2), the Secretary may require the State to establish a
State board in accordance with subsections (a), (b), and (c) in
lieu of the alternative entity established under paragraph
(1).''.
(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,''
before ``prior''; and
(2) by inserting ``, and modifications to the State plan''
after ``the plan''.
(f) Authority To Hire Staff.--Section 111 (29 U.S.C. 2821) is
amended by adding at the end the following:
``(h) Authority To Hire Staff.--
``(1) In general.--The State board may hire staff to assist
in carrying out the functions described in subsection (d) using
funds allocated under sections 127(b)(1)(C) and 132(b).
``(2) Limitation on rate.--Funds appropriated under this
title shall not be used to pay staff employed by the State
board, either as a direct cost or through any proration as an
indirect cost, at a rate in excess of the maximum rate payable
for a position at GS-15 of the General Schedule as in effect on
the date of enactment of the Workforce Investment Act
Amendments of 2005.''.

SEC. 113. STATE PLAN.

(a) Planning Cycle.--Section 112(a) (29 U.S.C. 2822(a)) is
amended--
(1) by inserting ``, or a State unified plan as described
in section 501,'' before ``that outlines'';
(2) by striking ``5-year strategy'' and inserting ``4-year
strategy''; and
(3) by adding at the end the following: ``At the end of the
first 2-year period of the 4-year State plan, the State board
shall review and, as needed, amend the 4-year State plan to
reflect labor market and economic conditions. In addition, the
State shall submit a modification to the State plan at the end
of the first 2-year period of the State plan, which may include
redesignation of local areas pursuant to section 116(a) and
specification of the levels of performance under sections 136
for the third and fourth years of the plan.''.
(b) Contents.--Section 112(b) (29 U.S.C. 2822(b)) is amended--
(1) in paragraph (8)(A)--
(A) in clause (ix), by striking ``and'' after the
semicolon; and
(B) by adding at the end the following:
``(xi) programs authorized under title II of the
Social Security Act (42 U.S.C. 401 et seq.) (relating
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'';
(2) by striking paragraph (10) and inserting the following:
``(10) a description of how the State will use funds the
State received under this subtitle to leverage other Federal,
State, local, and private resources, in order to maximize the
effectiveness of such resources, expand resources for the
provision of education and training services, and expand the
participation of businesses, employees, and individuals in the
statewide workforce investment system, including a description
of incentives and technical assistance the State will provide
to local areas for such purposes;'';
(3) 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)(B)'';
(4) in paragraph (14), by striking ``section 134(c)'' and
inserting ``section 121(e)'';
(5) in paragraph (15), by striking ``section 116(a)(5)''
and inserting ``section 116(a)(4)'';
(6) in paragraph (17)--
(A) in subparagraph (A)--
(i) in clause (iii)--
(I) by inserting ``local'' before
``customized training''; and
(II) by striking ``and'' at the
end;
(ii) in clause (iv), by striking
``(including displaced homemakers),'' and all
that follows through ``disabilities)'' and
inserting ``, hard-to-serve populations, and
individuals training for nontraditional
employment''; and
(iii) by adding 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, the conduct
of assessments, service delivery, the
development of adjustments to performance
measures established under section 136, and the
training of staff; and''; and
(B) in subparagraph (B), by striking ``and'' at the
end;
(7) in paragraph (18)(D)--
(A) by striking ``youth opportunity grants under
section 169'' and inserting ``youth challenge grants
authorized under section 169 and other federally funded
youth programs''; and
(B) by striking the period and inserting a
semicolon; and
(8) by adding at the end the following:
``(19) a description of how the State will utilize
technology to facilitate access to services in remote areas,
which may be utilized throughout the State;
``(20) a description of the State strategy for coordinating
workforce investment activities and economic development
activities, and promoting entrepreneurial skills training and
microenterprise services;
``(21) a description of the State strategy and assistance
to be provided for ensuring regional cooperation within the
State and across State borders as appropriate;
``(22) a description of how the State will use funds the
State receives under this subtitle to--
``(A) implement 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) provide 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 and economic development efforts to
contribute to the economic well-being of the local
area, as determined appropriate by the local board;
``(23) a description of the State strategy--
``(A) for ensuring cooperation between
transportation providers, including public
transportation providers, and providers of workforce
investment activities; and
``(B) for ensuring coordination among appropriate
State agencies and programs to make available skills
training, employment services and opportunities, and
career advancement activities, that will assist ex-
offenders in reentering the workforce;
``(24) a description of how the State will assist local
areas in assuring physical and programmatic accessibility for
individuals with disabilities at one-stop centers;
``(25) a description of the process and methodology that
will be used by the State board to--
``(A) review statewide policies and provide
guidance on the coordinated provision of services
through the one-stop delivery system described in
section 121(e);
``(B) establish, in consultation with chief elected
officials and local boards, objective criteria and
procedures for use by local boards in periodically
assessing the effectiveness, physical and programmatic
accessibility, and continuous improvement of one-stop
centers and the one-stop delivery system as described
in section 121(g); and
``(C) determine--
``(i) one-stop partner program
contributions for the costs of the
infrastructure of one-stop centers under
section 121(h)(2); and
``(ii) the formula for allocating the funds
described in section 121(h)(2) to local areas;
``(26) a description of the State strategy for ensuring
that activities carried out under this title are placing men
and women in jobs, education, or training that lead to
comparable pay; and
``(27) a description of the technical assistance available
to one-stop operators and providers of training services for
strategies to serve hard-to-serve populations and promote
placement in nontraditional employment.''.
(c) Modifications to Plan.--Section 112(d) (29 U.S.C. 2822(d)) is
amended--
(1) by striking ``5-year period'' and inserting ``4-year
period''; and
(2) by adding at the end the following: ``In addition, the
State shall submit the modifications to the State plan required
under subsection (a), under circumstances prescribed by the
Secretary that are due to changes in Federal law that
significantly affect elements of the State plan.''.

SEC. 114. LOCAL WORKFORCE INVESTMENT AREAS.

(a) Designation of Areas.--
(1) Considerations.--Section 116(a)(1) (29 U.S.C.
2831(a)(1)) is amended--
(A) in subparagraph (A), by striking ``paragraphs
(2), (3), and (4)'' and inserting ``paragraphs (2) and
(3)''; and
(B) in subparagraph (B), by adding at the end the
following:
``(vi) The extent to which such local areas
will promote maximum effectiveness 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.--The Governor shall approve a
request for designation as a local area that is
submitted prior to the submission of the State plan, or
of a modification to the State plan relating to area
designation, from any area that--
``(i) is a unit of general local government
with a population of 500,000 or more, except
that after the initial 2-year period following
such designation pursuant to this clause that
occurs after the date of enactment of the
Workforce Investment Act Amendments of 2005,
the Governor shall only be required to approve
a request for designation from such area if
such area--
``(I) performed successfully; and
``(II) sustained fiscal integrity;
``(ii) was a local area under this title
for the preceding 2-year period (prior to the
date of approval), if such local area--
``(I) performed successfully; and
``(II) sustained fiscal integrity;
``(iii) is served by a rural concentrated
employment program grant recipient, except that
after the initial 2-year period following any
such designation under the initial State plan
submitted after the date of enactment of the
Workforce Investment Act Amendments of 2005,
the Governor shall only be required to approve
a request for designation under this clause for
such area if such area--
``(I) performed successfully; and
``(II) sustained fiscal integrity;
or
``(iv) was a local area under section
116(a)(2)(C) (as in effect on the day before
the date of enactment of the Workforce
Investment Act Amendments of 2005), except that
after the initial 2-year period following such
designation pursuant to this clause that occurs
after that date of enactment, the Governor
shall only be required to approve a request for
designation under this clause for such area if
such area--
``(I) performed successfully; and
``(II) sustained fiscal integrity.
``(B) Definitions.--For purposes of this paragraph:
``(i) Performed successfully.--The term
`performed successfully', when used with
respect to a local area, means the local area
performed at 80 percent or more of the adjusted
level of performance for core indicators of
performance described in section 136(b)(2)(A)
for 2 consecutive years.
``(ii) Sustained fiscal integrity.--The
term `sustained fiscal integrity', used with
respect to an area, means that the Secretary
has not made a formal determination during the
preceding 2-year period that either the grant
recipient or the administrative entity of the
area misexpended funds provided under this
title due to willful disregard of the
requirements of the Act involved, gross
negligence, or failure to comply with accepted
standards of administration.''.
(3) Conforming amendments.--Section 116(a) (29 U.S.C.
2831(a)) is amended--
(A) by striking paragraph (3);
(B) by redesignating paragraphs (4) and (5) as
paragraph (3) and (4), respectively;
(C) in paragraph (3) (as redesignated by
subparagraph (B))--
(i) by striking ``(including temporary
designation)''; and
(ii) by striking ``(v)'' and inserting
``(vi)''; and
(D) in paragraph (4) (as redesignated by
subparagraph (B))--
(i) by striking ``under paragraph (2) or
(3)'' and inserting ``under paragraph (2)'';
and
(ii) by striking the second sentence.
(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)(2), the Governor of any State
that was a single local area for purposes of this title as of
July 1, 2004, 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) Redesignation.--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)(2) requests such designation as a separate local area.
``(3) Effect on local plan.--In any case in which a State
is designated as a local area pursuant to this subsection, the
local plan prepared under section 118 for the area shall be
submitted to the Secretary for approval as part of the State
plan under section 112.''.
(c) Regional Planning.--Section 116(c) (29 U.S.C. 2831(c)) is
amended--
(1) by striking paragraph (1) and inserting the following:
``(1) Planning.--
``(A) In general.--As part of the process for
developing the State plan, a State may require regional
planning by local boards for a designated region in the
State. The State may require the local boards for a
designated region to participate in a regional planning
process that results in the establishment of regional
performance measures for workforce investment
activities authorized under this subtitle. The State,
after consultation with local boards and chief elected
officials, may require the local boards for the
designated region to prepare, submit, and obtain
approval of a single regional plan that incorporates
local plans for each of the local areas in the region,
as required under section 118. The State may award
regional incentive grants to the designated regions
that meet or exceed the regional performance measures
pursuant to section 134(a)(2)(B)(iii).
``(B) Technical assistance.--If the State requires
regional planning as provided in subparagraph (A), the
State shall provide technical assistance and labor
market information to such local areas in the
designated regions to assist with such regional
planning and subsequent service delivery efforts.'';
(2) in paragraph (2), by inserting ``information about the
skill requirements of existing and emerging industries and
industry clusters,'' after ``information about employment
opportunities and trends,''; and
(3) in paragraph (3), by adding at the end the following:
``Such services may be required to be coordinated with regional
economic development services and strategies.''.

SEC. 115. LOCAL WORKFORCE INVESTMENT BOARDS.

(a) Composition.--Section 117(b) (29 U.S.C. 2832(b)) is amended--
(1) in paragraph (2)(A)--
(A) in clause (i), by striking subclause (II) and
inserting the following:
``(II) collectively, represent
businesses with employment
opportunities that reflect the
employment opportunities of the local
area, and include representatives of
businesses that are in high-growth and
emerging industries, and
representatives of businesses,
including small businesses, in the
local area; and'';
(B) by striking clause (ii) and inserting the
following:
``(ii)(I) a superintendent representing the
local school districts involved or another
high-level official from such districts;
``(II) the president or highest ranking
official of an institution of higher education
participating in the workforce investment
activities in the local area; and
``(III) an administrator of local entities
providing adult education and literacy
activities in the local area;'';
(C) in clause (iv), by inserting ``, hard-to-serve
populations,'' after ``disabilities'';
(D) in clause (v), by striking ``and'' at the end;
and
(E) by striking clause (vi) and inserting the
following:
``(vi) a representative from the State
employment service under the Wagner-Peyser Act
(29 U.S.C. 49 et seq.) who is serving the local
area; and
``(vii) if the local board does not
establish or continue a youth council,
representatives with experience serving out-of-
school youth, particularly out-of-school youth
facing barriers to employment; and''; and
(2) by adding at the end the following:
``(6) Special rule.--In the case that there are multiple
school districts or institutions of higher education serving a
local area, the representatives described in subclause (I) or
(II) of paragraph (2)(A)(ii), respectively, shall be appointed
from among individuals nominated by regional or local
educational agencies, institutions, or organizations
representing such agencies or institutions.''.
(b) Authority of Board Members.--Section 117(b)(3) (29 U.S.C.
2832(b)(3)) is amended--
(1) in the heading, by inserting ``and representation''
after ``Authority''; and
(2) by adding at the end the following: ``The members of
the board shall represent diverse geographic sections within
the local area.''.
(c) Conforming Amendment.--Section 117(c)(1)(C) (29 U.S.C.
2832(c)(1)(C)) is amended by striking ``section 116(a)(2)(B)'' and
inserting ``section 116(a)(2)(A)(iii)''.
(d) Functions.--Section 117(d) (29 U.S.C. 2832(d)) is amended--
(1) in paragraph (1), insert after ``Governor'' the
following: ``, and shall develop jointly with the head of the
State employment service under the Wagner-Peyser Act (29 U.S.C.
49 et seq.) appropriate components of such plan to maximize
coordination, improve service delivery, and avoid duplication
of services'';
(2) in paragraph (2)--
(A) in subparagraph (B)--
(i) by inserting ``(except as provided in
section 123(b))'' after ``basis''; and
(ii) by inserting ``(where appropriate)''
after ``youth council''; and
(B) by adding at the end the following:
``(E) Consumer choice requirements.--Consistent
with sections 122 and paragraphs (3) and (4) of 134(d),
the local board shall work to ensure there are
sufficient providers of intensive services and training
services serving the local area in a manner that
maximizes consumer choice, including providers with
expertise in assisting individuals with
disabilities.'';
(3) in paragraph (3)(B), by striking clause (ii) and
inserting the following:
``(ii) Staff.--
``(I) In general.--The local board
may hire staff.
``(II) Limitation on rate.--Funds
appropriated under this title shall not
be used to pay staff employed by the
local board, either as a direct cost or
through any proration as an indirect
cost, at a rate in excess of the
maximum rate payable for a position at
GS-15 of the General Schedule, as in
effect on the date of enactment of the
Workforce Investment Act Amendments of
2005.'';
(4) in paragraph (4), by inserting ``, and shall ensure the
appropriate use and management of the funds provided under this
subtitle 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) in paragraph (8)--
(A) by inserting ``, including small employers,''
after ``private sector employers''; and
(B) by striking the period and inserting ``, taking
into account the unique needs of small businesses.'';
and
(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.''.
(e) Conforming Amendment.--Section 117(f)(2) (29 U.S.C. 2832(f)(2))
is amended by striking ``described in section 134(c)''.
(f) 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''.
(g) 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) Councils.--The local board may establish or continue councils
to provide information and advice to assist the local board in carrying
out activities under this title. Such councils may include--
``(1) a council composed of one-stop partners to advise the
local board on the operation of the one-stop delivery system
involved;
``(2) a youth council composed of experts and stakeholders
in youth programs to advise the local board on youth
activities; and
``(3) such other councils as the local board determines are
appropriate.''.
(h) Alternative Entity Provision.--Section 117(i)(1) (29 U.S.C.
2832(i)(1)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``and paragraphs (1) and (2) of subsection (h),'';
(2) by striking subparagraph (B) and inserting the
following:
``(B) was in existence on August 7, 1998, pursuant
to State law; and'';
(3) by striking subparagraph (C); and
(4) by redesignating subparagraph (D) as subparagraph (C).

SEC. 116. LOCAL PLAN.

(a) Planning Cycle.--Section 118(a) (29 U.S.C. 2833(a)) is
amended--
(1) by striking ``5-year'' and inserting ``4-year''; and
(2) by adding at the end the following: ``At the end of the
first 2-year period of the 4-year plan, the local board shall
review and, as needed, amend the 4-year plan to reflect labor
market and economic conditions.''.
(b) Contents.--Section 118(b) (29 U.S.C. 2833(b)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A), by striking ``and'' after
the semicolon;
(B) by striking subparagraph (B) and inserting the
following:
``(B) 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; and''; and
(C) by adding at the end the following:
``(C) a description of how the local board will
ensure physical and programmatic accessibility for
individuals with disabilities at one-stop centers;'';
(2) in paragraph (9), by striking ``; and'' and inserting a
semicolon;
(3) by redesignating paragraph (10) as paragraph (16); and
(4) by inserting after paragraph (9) the following:
``(10) a description of how the local board will coordinate
workforce investment activities carried out in the local area
with economic development activities carried out in the local
area, and promote entrepreneurial skills training and
microenterprise services;
``(11) 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;
``(12) a description of how the local board will expand
access to education and training services for eligible
individuals who are in need of such services through--
``(A) the utilization of programs funded under this
title; and
``(B) the increased leveraging of resources other
than those provided under this title, including tax
credits, private sector-provided training, and other
Federal, State, local, and private funds that are
brokered through the one-stop centers for training
services;
``(13) a description of how the local board will coordinate
workforce investment activities carried out in the local area
with the provision of transportation, including public
transportation, in the local area;
``(14) a description of plans for, assurances concerning,
and strategies for maximizing coordination of services provided
by the State employment service under the Wagner-Peyser Act (29
U.S.C. 49 et seq.) and services provided in the local area
through the one-stop delivery system described in section
121(e), to improve service delivery and avoid duplication of
services;
``(15) a description of how the local board will coordinate
workforce investment activities carried out in the local area
with other Federal, State, and local area education, job
training, and economic development programs and activities;
and''.

SEC. 117. 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
core 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 clause (v);
(ii) by redesignating clauses (vi) through
(xii) as clauses (v) through (xi),
respectively;
(iii) in clause (x) (as redesignated by
clause (ii)), by striking ``and'' at the end;
(iv) in clause (xi) (as redesignated by
clause (ii)), by striking the period and
inserting ``; and''; and
(v) by adding at the end the following:
``(xii) 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
(C) by adding at the end the following:
``(C) Determination by the governor.--
``(i) In general.--An entity that carries
out programs referred to in subparagraph
(B)(xii) shall be included in the one-stop
partners for the local area, as a required
partner, for purposes of this title unless the
Governor of the State provides the notification
described in clause (ii).
``(ii) Notification.--The notification
referred to in clause (i) is a notification
that--
``(I) is made in writing of a
determination by the Governor not to
include such entity in the one-stop
partners described in clause (i); and
``(II) is provided to the Secretary
and the Secretary of Health and Human
Services.''.
(2) Additional partners.--
(A) In general.--Section 121(b)(2)(A) (29 U.S.C.
2841(b)(2)(A)) is amended to read as follows:
``(A) In general.--With the approval of the local
board and chief elected official, in addition to the
entities described in paragraph (1), other entities
that carry out human resource programs described in
subparagraph (B) may be one-stop partners and carry out
the responsibilities described in paragraph (1)(A).''.
(B) Additional partners.--Section 121(b)(2)(B) (29
U.S.C. 2841(b)(2)(B)) is amended by striking clauses
(i) through (iii) and inserting the following:
``(i) employment and training programs
administered by the Social Security
Administration, including the Ticket to Work
and Self-Sufficiency program established under
section 1148 of the Social Security Act (42
U.S.C. 1320b-19);
``(ii) employment and training programs
carried out by the Small Business
Administration;
``(iii) programs authorized under section
6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C.
2015(d)(4));''.
(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;
``(iv) methods to ensure the needs of hard-
to-serve populations are addressed in providing
access to services through the one-stop system;
and
``(v) 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) Conforming Amendment.--Section 121(d)(2) (29 U.S.C. 2841(d)(2))
is amended by striking ``section 134(c)'' and inserting ``section
121(e)''.
(d) Provision of Services.--
(1) Elimination of provisions concerning established
systems.--Section 121 (29 U.S.C. 2841) is amended by striking
subsection (e).
(2) Redesignation.--Subtitle B of title I is amended--
(A) in section 134 (29 U.S.C. 2864), by
redesignating subsection (c) as subsection (e); and
(B) by transferring that subsection (e) so that the
subsection appears after subsection (d) of section 121.
(3) One-stop delivery systems.--Paragraph (1) of section
121(e) (29 U.S.C. 2841(e)) (as redesignated by paragraph (2))
is amended--
(A) in subparagraph (A), by striking ``subsection
(d)(2)'' and inserting ``section 134(d)(2)'';
(B) in subparagraph (B)--
(i) by striking ``subsection (d)'' and
inserting ``section 134(d)'';
(ii) by striking ``individual training
accounts'' and inserting ``career scholarship
accounts''; and
(iii) by striking ``subsection (d)(4)(G)''
and inserting ``section 134(d)(4)(G)'';
(C) in subparagraph (C), by striking ``subsection
(e)'' and inserting ``section 134(e)'';
(D) in subparagraph (D), by striking ``section
121(b)'' and inserting ``subsection (b)''; and
(E) in subparagraph (E), by striking ``information
described in section 15'' and inserting ``data,
information, and analysis described in section 15(a)''.
(e) Continuous Improvement of One-Stop Centers.--Section 121 (29
U.S.C. 2841) is amended by adding at the end the following:
``(g) Continuous Improvement of One-Stop Centers.--
``(1) In general.--The State board, in consultation with
chief local elected officials and local boards, shall establish
objective criteria and procedures for use by local boards in
periodically assessing the effectiveness, physical and
programmatic accessibility, and continuous improvement of one-
stop centers and the one-stop delivery system.
``(2) Criteria.--The procedures and criteria developed
under this subsection shall include minimum standards relating
to the scope and degree of service coordination achieved by the
one-stop delivery system with respect to the programs
administered by the one-stop partners at the one-stop centers,
consistent with the guidelines and guidance provided by the
Governor and by the State board, in consultation with the chief
elected official and local boards, for such partners'
participation under subsections (h)(1)(B) and subsection (i),
respectively, and such other factors relating to the quality,
accessibility, and effectiveness of the one-stop delivery
system as the State board determines to be appropriate.
``(3) 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) Funding of One-Stop Infrastructure.--
``(1) In general.--
``(A) Options for infrastructure funding.--
``(i) Local options.--The local board,
chief elected officials, and one-stop partners
in a local area may choose to fund the costs of
the infrastructure of one-stop centers
through--
``(I) methods described in the
local memorandum of understanding, if,
the local board, chief elected
officials, and one-stop partners agree
to such methods; or
``(II) the State infrastructure
funding mechanism described in
paragraph (2).
``(ii) Failure to reach agreement on
funding methods.--If, as of July 1, 2006, the
local board, chief elected officials, and one-
stop partners in a local area fail to reach
agreement on methods of sufficient funding of
the infrastructure costs of one-stop centers,
as determined by the local area, the State
infrastructure funding mechanism described in
paragraph (2) shall be applicable to such local
area.
``(B) Guidance for infrastructure funding.--In
addition to carrying out the requirements relating to
the State mechanism for one-stop center infrastructure
funding described in paragraph (2), the Governor, after
consultation with chief local elected officials, local
boards, and the State board, and consistent with the
guidelines provided by the State board under subsection
(i), shall provide--
``(i) guidelines for State administered
one-stop partner programs in determining such
programs' contributions to and participation in
the one-stop delivery system, including funding
for the costs of infrastructure as defined in
paragraph (2)(D), negotiated pursuant to the
local memorandum of understanding under
subsection (c); and
``(ii) guidance to assist local areas in
identifying equitable and stable alternative
methods of funding of the costs of the
infrastructure of one-stop centers in local
areas.
``(2) State one-stop infrastructure funding.--
``(A) Partner contributions.--
``(i) In general.--Subject to clause (iii),
a portion determined under clause (ii) of the
Federal funds provided to the State and areas
within the State under the Federal laws
authorizing the programs described in
subsection (b)(1) and administered by one-stop
partners for a fiscal year shall be provided to
the Governor from such programs to assist in
paying the costs of infrastructure of one-stop
centers in those local areas of the State not
funded under the option described in paragraph
(1)(A)(i)(I).
``(ii) Determination of governor.--
``(I) In general.--Subject to
subclause (II) and clause (iii), the
Governor, after consultation with chief
local elected officials, local boards,
and the State board, shall determine
the portion of funds to be provided
under clause (i) by each one-stop
partner from each program described in
clause (i). In making such
determination, the Governor shall
calculate the proportionate use of the
one-stop centers for the purpose of
determining funding contributions
pursuant to clause (i)(II) or (ii) of
paragraph (1)(A) by each partner, and
the costs of administration for
purposes not related to one-stop
centers for each partner. The Governor
shall exclude from such determination
the portion of funds and use of one-
stop centers attributable to the
programs of one-stop partners for those
local areas of the State where the
infrastructure of one-stop centers is
funded under the option described in
paragraph (1)(A)(i)(I).
``(II) Special rule.--In a State in
which the State constitution places
policymaking authority that is
independent of the authority of the
Governor in an entity or official with
respect to the funds provided for adult
education and literacy activities
authorized under title II and for
postsecondary vocational and technical
education activities authorized under
the Carl D. Perkins Vocational and
Technical Education Act of 1998 (20
U.S.C. 2301 et seq.), or vocational
rehabilitation services offered under
the Rehabilitation Act of 1973 (29
U.S.C. 701 et seq.), the determination
described in subclause (I) with respect
to the programs authorized under that
title and those Acts shall be made by
the chief officer of the entity with
such authority in consultation with the
Governor.
``(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.
``(iii) 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 program limitations
with respect to the portion of funds
under such program that may be used for
administration.
``(II) Cap on required
contributions.--
``(aa) WIA formula programs
and employment service.--The
portion of funds required to be
contributed under clause
(i)(II) or (ii) of paragraph
(1)(A) by the programs
authorized under chapters 4 and
5 and under the Wagner-Peyser
Act (29 U.S.C. 49 et seq.)
shall not be in excess of 3
percent of the amount of
Federal funds provided to carry
out each such program in the
State for a fiscal year.
``(bb) Other one-stop
partners.--The portion of funds
required to be contributed
under clause (i)(II) or (ii) of
paragraph (1)(A) by a one-stop
partner from a program
described in subsection (b)(1)
other than the programs
described under item (aa) shall
not be in excess of 1\1/2\
percent of the amount of
Federal funds provided to carry
out such program in the State
for a fiscal year.
``(cc) Special rule.--
Notwithstanding items (aa) and
(bb), an agreement, including a
local memorandum of
understanding, entered into
prior to the date of enactment
of the Workforce Investment Act
Amendments of 2005 by an entity
regarding contributions under
this title that permits the
percentages described in such
items to be exceeded, may
continue to be in effect until
terminated by the parties.
``(dd) Vocational
rehabilitation.--
Notwithstanding items (aa) and
(bb), an entity administering a
program under title I of the
Rehabilitation Act of 1973 (29
U.S.C. 720 et seq.) shall not
be required to provide, for the
purposes of this paragraph, an
amount in excess of--

``(AA) 0.75 percent
of the amount provided
for such program in the
State for the second
program year that
begins after the date
of enactment of the
Workforce Investment
Act Amendments of 2005;

``(BB) 1.0 percent
of the amount provided
for such program in the
State for the third
program year that
begins after such date;

``(CC) 1.25 percent
of the amount provided
for such program in the
State for the fourth
program year that
begins after such date;
and

``(DD) 1.5 percent
of the amount provided
for such program in the
State for the fifth and
each succeeding program
year that begins after
such date.

``(III) Federal direct spending
programs.--An entity administering a
program funded with direct spending as
defined in section 250(c)(8) of the
Balanced Budget and Emergency Deficit
Control Act of 1985 (2 U.S.C.
900(c)(8)) shall not be required to
provide, for purposes of this
paragraph, an amount in excess of the
amount determined to be equivalent to
the cost of the proportionate use of
the one-stop centers for such program
in the State.
``(IV) Native american programs.--
Native American programs established
under section 166 shall not be subject
to the provisions of this subsection or
subsection (i). 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
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.
``(B) Allocation by governor.--From the funds
provided under subparagraph (A), the Governor shall
allocate the funds to local areas in accordance with
the formula established under subparagraph (C) for the
purposes of assisting in paying the costs of
infrastructure of one-stop centers.
``(C) Allocation formula.--The State board shall
develop a formula to be used by the Governor to
allocate the funds provided under subparagraph (A) to
local areas not funding infrastructure costs under the
option described in paragraph (1)(A)(i)(I). The formula
shall be based on factors including the number of one-
stop centers in a local area, the population served by
such centers, the services provided by such centers,
and other factors relating to the performance of such
centers that the State board determines are
appropriate.
``(D) Costs of infrastructure.--In this subsection,
the term `costs of infrastructure', used with respect
to a one-stop center, means the nonpersonnel costs that
are necessary for the general operation of the one-stop
center, including the rental costs of the facilities,
the costs of utilities and maintenance, equipment
(including assessment-related products and adaptive
technology for individuals with disabilities), and
technology to facilitate remote access to the one-stop
center's strategic planning activities, and common
outreach activities.
``(i) Other Funds.--
``(1) In general.--Subject to the memorandum of
understanding described in subsection (c) for the one-stop
delivery system involved, in addition to the funds provided to
carry out subsection (h), a portion of funds made available
under Federal law authorizing the programs described in
subsection (b) and administered by one-stop partners, or the
noncash resources available under such programs, shall be used
to pay the additional costs relating to the operation of the
one-stop delivery system that are not paid from the funds
provided under subsection (h), as determined in accordance with
paragraph (2), to the extent not inconsistent with the Federal
law involved. Such costs shall include the costs of the
provision of core services described in section 134(d)(2)
applicable to each program and may include common costs that
are not paid from the funds provided under subsection (h).
``(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)
for a one-stop center shall be determined as part of the
development of the memorandum of understanding under subsection
(c) for the one-stop center and shall be stated in the
memorandum. The State board shall provide guidance to
facilitate the determination of an appropriate allocation of
the funds and noncash resources in local areas.''.

SEC. 118. 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(d)(4) (referred to in this section as
`training services') to receive funds provided under section
133(b) for the provision of 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). A provider
described in paragraph (2)(B) shall be included on the list of
eligible providers of training services described in subsection
(d) 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 by the Governor
pursuant to subsection (a) shall take into account--
``(A) the performance of providers of training
services with respect to the performance measures 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) the need to ensure access to training
services throughout the State, including any rural
areas;
``(C) the information such providers are required
to report to State agencies with respect to Federal and
State programs (other than the program carried out
under this subtitle), including one-stop partner
programs;
``(D) the requirements for State licensing of
providers of training services, and the licensing
status of each provider of training services if
applicable;
``(E) to the extent practicable, encouraging the
use of industry-recognized standards and certification;
``(F) the ability of the providers to offer
programs that lead to a degree or an industry-
recognized certification;
``(G) the ability to provide training services to
hard-to-serve populations, including individuals with
disabilities; and
``(H) such other factors as the Governor determines
are appropriate to ensure--
``(i) the quality of services provided;
``(ii) the accountability of the providers;
``(iii) that the one-stop centers in the
State will ensure that such providers meet the
needs of local employers and participants;
``(iv) the informed choice of participants
under chapter 5; and
``(v) that the collection of information
required is not unduly burdensome or costly to
providers.
``(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) Information to establish initial eligibility.--
``(A) In general.--In an effort to provide the
highest-quality training services and responsiveness to
new and emerging industries, providers may seek initial
eligibility under this section as providers of training
services. The criteria established by the Governor
shall require that a provider who has not previously
been an eligible provider of training services under
this section provide the information described in
subparagraph (B).
``(B) Information.--The provider shall provide
verifiable program-specific performance information
supporting the provider's ability to serve participants
under this subtitle. The information provided under
this subparagraph may include information on outcome
measures such as job placement and wage increases for
individuals participating in the program, information
on business partnerships and other factors that
indicate high-quality training services, and
information on alignment with industries targeted for
potential employment opportunities.
``(C) Provision.--The provider shall provide the
information described in subparagraph (B) to the
Governor and the local boards in a manner that will
permit the Governor and the local boards to make a
decision on inclusion of the provider on the list of
eligible providers described in subsection (d).
``(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 provided 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 the applications and in making determinations of such
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 in choosing employment and
training activities under chapter 5 and in choosing providers of
training services, the Governor shall ensure that an appropriate list
of providers determined to be eligible under this section in the State,
accompanied by appropriate information, is provided to 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 scholarship accounts provided in
another State.
``(g) Opportunity To Submit Comments.--In establishing criteria,
procedures, requirements for information, and the list of eligible
providers described in subsection (d), the Governor shall provide an
opportunity for interested members of the public to make
recommendations and submit comments regarding such criteria,
procedures, requirements for information, and list.
``(h) Transition Period for Implementation.--The requirements of
this section shall be implemented not later than December 31, 2006. In
order to facilitate early implementation of this section, the Governor
may establish transition procedures under which providers eligible to
provide training services under chapter 5 as such chapter was in effect
on the day before the date of enactment of the Workforce Investment Act
Amendments of 2005 may continue to be eligible to provide such services
until December 31, 2006, or until such earlier date as the Governor
determines to be appropriate.
``(i) On-the-Job Training, Customized Training, or Incumbent Worker
Training Exception.--
``(1) In general.--Providers of on-the-job training,
customized training, or incumbent worker training shall not be
subject to the requirements of subsections (a) through (h).
``(2) Collection and dissemination of information.--A one-
stop operator in a local area shall collect such performance
information from providers of on-the-job training, customized
training, and incumbent worker training 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. 119. 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 described in section
112 and shall conduct oversight with respect to such providers.
``(b) Exceptions.--A local board may award grants or contracts on a
sole-source basis if such board determines there is an insufficient
number of eligible providers of youth activities in the local area
involved (such as a rural area) for grants and contracts to be awarded
on a competitive basis under subsection (a).''.

SEC. 120. YOUTH ACTIVITIES.

(a) State Allotments.--Section 127 (29 U.S.C. 2852) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``opportunity''
and inserting ``challenge''; and
(B) in paragraph (2), by striking ``make
allotments'' and all that follows and inserting ``make
allotments and grants, and enter into contracts and
cooperative agreements, in accordance with
subparagraphs (A)(iv), (B), and (C) of subsection
(b)(1).''; and
(2) by striking subsection (b) and inserting the following:
``(b) Allotment Among States.--
``(1) Youth activities.--
``(A) Youth challenge grants and youth activities
for farmworkers and native americans.--
``(i) In general.--For each fiscal year in
which the amount appropriated under section
137(a) exceeds $1,000,000,000, the Secretary
shall reserve a portion of the amount to
provide youth activities under section 167
(relating to migrant and seasonal farmworker
programs) and provide youth challenge grants
and other activities under section 169
(relating to youth challenge grants).
``(ii) Portion.--The portion referred to in
clause (i) shall equal, for a fiscal year--
``(I) except as provided in
subclause (II), the difference obtained
by subtracting $1,000,000,000 from the
amount appropriated under section
137(a) for the fiscal year; or
``(II) for any fiscal year in which
the amount is $1,250,000,000 or
greater, $250,000,000.
``(iii) Youth activities for farmworkers.--
For a fiscal year described in clause (i), the
Secretary shall reserve the greater of
$10,000,000 or 4 percent of the portion
described in clause (i) for a fiscal year to
provide youth activities under section 167. For
a fiscal year not described in clause (i), the
Secretary shall reserve $10,000,000 of the
amount appropriated under section 137(a) to
provide youth activities under section 167.
``(iv) Youth activities for native
americans.--From the amount appropriated under
section 137(a) for each fiscal year that is not
reserved under clause (i) or (iii), the
Secretary shall reserve not more than 1\1/2\
percent of such appropriated amount to provide
youth activities under section 166 (relating to
Native Americans).
``(B) Outlying areas.--
``(i) In general.--From the amount
appropriated under section 137(a) for each
fiscal year that is not reserved under
subparagraph (A), the Secretary shall reserve
not more than \1/4\ of 1 percent of the
appropriated amount to provide assistance to
the outlying areas to carry out youth
activities and statewide workforce investment
activities.
``(ii) Limitation for freely associated
states.--
``(I) Competitive grants.--The
Secretary shall use funds described in
clause (i) to award grants to Guam,
American Samoa, the Commonwealth of the
Northern Mariana Islands, and the
Freely Associated States to carry out
youth activities and statewide
workforce investment activities.
``(II) Award basis.--The Secretary
shall award grants pursuant to
subclause (I) on a competitive basis
and pursuant to the recommendations of
experts in the field of employment and
training, working through the Pacific
Region Educational Laboratory in
Honolulu, Hawaii.
``(III) Assistance requirements.--
Any Freely Associated State that
desires to receive assistance under
this subparagraph shall submit an
application to the Secretary and shall
include in the application for
assistance--
``(aa) information
demonstrating that the Freely
Associated State will meet all
conditions that apply to States
under this title;
``(bb) an assurance that,
notwithstanding any other
provision of this title, the
Freely Associated State will
use such assistance only for
the direct provision of
services; and
``(cc) such other
information and assurances as
the Secretary may require.
``(IV) Administrative costs.--The
Secretary may provide not more than 5
percent of the funds made available for
grants under subclause (I) to pay the
administrative costs of the Pacific
Region Educational Laboratory in
Honolulu, Hawaii, regarding activities
assisted under this clause.
``(iii) Additional requirement.--The
provisions of Public Law 95-134, permitting the
consolidation of grants by the outlying areas,
shall not apply to assistance provided to those
areas, including the Freely Associated States,
under this subparagraph.
``(C) States.--
``(i) In general.--From the remainder of
the amount appropriated under section 137(a)
for a fiscal year that exists after the
Secretary determines the amounts to be reserved
under subparagraphs (A) and (B), the Secretary
shall allot to the States--
``(I) an amount of the remainder
that is less than or equal to the total
amount that was allotted to States for
fiscal year 2005 under section
127(b)(1)(C) of this Act (as in effect
on the day before the date of enactment
of the Workforce Investment Act
Amendments of 2005), in accordance with
the requirements of clause (ii) 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) Formula.--Of the amount 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 21
in each State, compared to the total
number of individuals in the civilian
labor force who are ages 16 through 21
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.--
``(I) Minimum percentage.--The
Secretary shall ensure that no State
shall receive an allotment percentage
under this subparagraph for a fiscal
year that is less than 90 percent of
the allotment percentage of the State
for the preceding fiscal year.
``(II) Maximum percentage.--Subject
to subclause (I), the Secretary shall
ensure that no State shall receive an
allotment percentage under this
subparagraph for a fiscal year that is
more than 130 percent of the allotment
percentage of the 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 subparagraph that is less than the
total of--
``(I) \3/10\ of 1 percent of
$1,000,000,000 of the remainder
described in clause (i) for the fiscal
year; and
``(II) if the remainder described
in clause (i) for the fiscal year
exceeds $1,000,000,000, \2/5\ of 1
percent of the excess.
``(2) Definitions.--For the purposes of paragraph (1):
``(A) Allotment percentage.--The term `allotment
percentage', used with respect to fiscal year 2006 or a
subsequent fiscal year, means a percentage of the
remainder described in paragraph (1)(C)(i) that is
received by the State involved through an allotment
made under this subsection for the fiscal year. The
term, used with respect to fiscal year 2005, 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 Act Amendments of
2005) that is received by the State involved for fiscal
year 2005.
``(B) Disadvantaged youth.--Subject to paragraph
(3), the term `disadvantaged youth' means an individual
who is age 16 through 21 who received an income, or is
a member of a family that received a total family
income, that, in relation to family size, does not
exceed the higher of--
``(i) the poverty line; or
``(ii) 70 percent of the lower living
standard income level.
``(C) Freely associated state.--The term `Freely
Associated State' means the Republic of the Marshall
Islands, the Federated States of Micronesia, and the
Republic of Palau.
``(3) Special rule.--For purposes of the formula specified
in paragraph (1)(C), the Secretary shall, as appropriate and to
the extent practicable, exclude college students and members of
the Armed Forces from the determination of the number of
disadvantaged youth.''.
(b) Reallotment.--
(1) Amendment.--Section 127(c) (29 U.S.C. 2852(c)) is
amended--
(A) by striking paragraph (2) and inserting the
following:
``(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 unexpended
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 for
which the determination is made''; and
(ii) by striking ``such prior program
year'' and inserting ``such program year'';
(C) by striking paragraph (4) and inserting the
following:
``(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''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect for the program year that begins after the
date of enactment of this Act.
(c) Within State Allocations.--
(1) Reservation for statewide activities.--Section 128(a)
(29 U.S.C. 2853(a)) is amended to read as follows:
``(a) Reservations for Statewide Activities.--
``(1) In general.--The Governor of a State shall reserve
not more than 15 percent of each of the amounts allotted to the
State under section 127(b)(1)(C) and paragraphs (1)(B) and
(2)(B) of section 132(b) for a fiscal year for statewide
workforce investment activities.
``(2) Use of funds.--Regardless of whether the reserved
amounts were allotted under section 127(b)(1)(C), or under
paragraph (1)(B) or (2)(B) of section 132(b), the Governor may
use the reserved amounts to carry out statewide activities
under section 129(b) or statewide employment and training
activities, for adults or dislocated workers, under section
134(a).''.
(2) Within state allocation.--Section 128(b) (29 U.S.C.
2853(b)) is amended to read as follows:
``(b) Within State Allocations.--
``(1) In general.--Of the amount allotted to the State
under section 127(b)(1)(C) and not reserved under subsection
(a)(1)--
``(A) a portion equal to not less than 80 percent
of such amount shall be allocated by the Governor to
local areas in accordance with paragraph (2); and
``(B) a portion equal to not more than 20 percent
of such amount may be allocated by the Governor to
local areas in accordance with paragraph (3).
``(2) Established formula.--
``(A) In general.--Of the portion described in
paragraph (1)(A), the Governor shall allocate--
``(i) 33\1/3\ percent on the basis of the
relative number of individuals in the civilian
labor force who are ages 16 through 21 in each
local area, compared to the total number of
individuals in the civilian labor force who are
ages 16 through 21 in all local areas in the
State;
``(ii) 33\1/3\ 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; 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.--
``(i) Minimum percentage.--The Governor
shall ensure that no local area shall receive
an allocation percentage under this paragraph
for a fiscal year that is less than 90 percent
of the allocation percentage of the local area
for the preceding fiscal year.
``(ii) Maximum percentage.--Subject to
clause (i), the Governor shall ensure that no
local area shall receive an allocation
percentage under this paragraph for a fiscal
year that is more than 130 percent of the
allocation percentage of the local area for the
preceding fiscal year.
``(C) Definitions.--In this paragraph:
``(i) Allocation percentage.--The term
`allocation percentage', used with respect to
fiscal year 2006 or a subsequent fiscal year,
means a percentage of the portion described in
paragraph (1)(A) that is received by the local
area involved through an allocation made under
this paragraph for the fiscal year. The term,
used with respect to fiscal year 2005, 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 Act Amendments of 2005)
that is received by the local area involved for
fiscal year 2005.
``(ii) Disadvantaged youth.--The term
`disadvantaged youth' means an individual who--
``(I) is age 16 through 21;
``(II) is not a college student or
member of the Armed Forces; and
``(III) received an income, or is a
member of a family that received a
total family income, that, in relation
to family size, does not exceed the
higher of--
``(aa) the poverty line; or
``(bb) 70 percent of the
lower living standard income
level.
``(3) Youth discretionary allocation.--The Governor may
allocate the portion described in paragraph (1)(B) to local
areas where there are a significant number of eligible youth,
after consultation with the State board and local boards.
``(4) Local administrative cost limit.--
``(A) In general.--Of the amount allocated to a
local area under this subsection and section 133(b) for
a fiscal year, not more than 10 percent of the amount
may be used by the local board involved for the
administrative costs of carrying out local workforce
investment activities under this chapter or chapter 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.--
(A) Amendment.--Section 128(c) (29 U.S.C. 2853(c))
is amended--
(i) in paragraph (1), by striking
``paragraph (2)(A) or (3) of'';
(ii) by striking paragraph (2) and
inserting the following:
``(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
allocated to the local area in all prior program years that
remained 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.'';
(iii) by amending paragraph (3)--
(I) by striking ``subsection
(b)(3)'' each place it appears and
inserting ``subsection (b)'';
(II) by striking ``for the prior
program year'' the first place it
appears and inserting ``for the program
year for 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
(iv) by striking paragraph (4) and
inserting the following:
``(4) Eligibility.--For purposes of this subsection, an
eligible local area means a local area that does not have an
amount available for reallocation under paragraph (2) for the
program year for which the determination under paragraph (2) is
made.''.
(B) Effective date.--The amendments made by
subparagraph (A) shall take effect for the later of--
(i) the program year that begins after the
date of enactment of this Act; or
(ii) program year 2006.
(d) Youth Participant Eligibility.--Section 129(a) (29 U.S.C.
2854(a)) is amended to read as follows:
``(a) Youth Participant Eligibility.--
``(1) Eligibility.--
``(A) In general.--To be eligible to participate in
activities carried out under this chapter during any
program year an individual shall, at the time the
eligibility determination is made, be an out-of-school
youth or an in-school youth.
``(B) Out-of-school youth.--In this title the term
`out-of-school youth' means an individual who is--
``(i) not younger than age 16 nor older
than age 21; and
``(ii) one of the following:
``(I) A school dropout.
``(II) A youth who is within the
age for compulsory school attendance,
but has not attended school for at
least 1 school year calendar quarter.
``(III) A recipient of a secondary
school diploma or its equivalent who
is--
``(aa) deficient in basic
skills, including limited
English proficiency;
``(bb) a low-income
individual; and
``(cc) not attending any
school.
``(IV) Subject to the juvenile or
adult justice system or ordered by a
court to an alternative school.
``(V) A low-income individual who
is pregnant or parenting and not
attending any school.
``(VI) A youth who is not attending
school or a youth attending an
alternative school, who is homeless, a
runaway, a foster child, a child
eligible for assistance under section
477 of the Social Security Act (42
U.S.C. 677), or in an out-of-home
placement.
``(VII) A low-income individual who
is not attending school and requires
additional assistance to enter or
complete an educational program or to
secure or hold employment.
``(C) In-school youth.--In this section the term
`in-school youth' means an individual who is--
``(i) not younger than age 14 nor older
than age 21;
``(ii) a low-income individual; and
``(iii) one or more of the following:
``(I) Deficient in basic literacy
skills, including limited English
proficiency.
``(II) Homeless, a runaway, a
foster child, a child eligible for
assistance under section 477 of the
Social Security Act (42 U.S.C. 677), or
in an out-of-home placement.
``(III) Pregnant or parenting.
``(IV) An offender (other than an
individual described in subparagraph
(B)(ii)(IV)).
``(V) An individual who requires
additional assistance to complete an
educational program or to secure or
hold employment.
``(2) Exception.--Not more than 5 percent of the
individuals assisted under this section in each local area, in
the case of individuals for whom low income is a requirement
for eligibility under this section, may be individuals who are
not low income.
``(3) Limitations on activities for in-school youth.--
``(A) In general.--For any program year, not more
than 60 percent of the funds available for statewide
activities under subsection (b), and not more than 60
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).
``(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 40 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.
``(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.''.
(e) Statewide 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) shall be used,
regardless of whether the funds were allotted to the State
under section 127(b)(1)(C) or under paragraph (1)(B) or (2)(B)
of section 132(b) for statewide activities, which may include--
``(A) conducting--
``(i) 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;
``(ii) research; and
``(iii) demonstration projects;
``(B) 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 title, and for performance by
local areas as described in section 136(i)(2);
``(C) providing technical assistance and capacity
building activities 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, the provision of
technical assistance to local areas that fail to meet
local performance measures described in section 136(c),
and the provision of technology to facilitate remote
access to services provided through the one-stop
delivery system in the State;
``(D) operating a fiscal and management
accountability information system under section 136(f);
``(E) carrying out monitoring and oversight of
activities carried out under this chapter and chapter
5, which may include a review comparing the services
provided to male and female youth;
``(F) providing additional assistance to local
areas that have high concentrations of eligible youth;
``(G) supporting the development of alternative
programs and other activities that enhance the choices
available to eligible youth and encourage such youth to
reenter secondary education, enroll in postsecondary
education and advanced training, and obtain career path
employment;
``(H) supporting the provision of core services
described in section 134(d)(2) in the one-stop delivery
system in the State; and
``(I) supporting financial literacy, including--
``(i) supporting the ability to create
household budgets, initiate savings plans, and
make strategic investment decisions for
education, retirement, home ownership, wealth
building, or other savings goals;
``(ii) supporting the ability to manage
spending, credit, and debt, including credit
card debt, effectively;
``(iii) increasing awareness of the
availability and significance of credit reports
and credit scores in obtaining credit, the
importance of their accuracy (and how to
correct inaccuracies), their effect on credit
terms, and the effect common financial
decisions may have on credit scores;
``(iv) supporting the ability to ascertain
fair and favorable credit terms;
``(v) supporting the ability to avoid
abusive, predatory, or deceptive credit offers
and financial products;
``(vi) supporting the ability to
understand, evaluate, and compare financial
products, services, and opportunities;
``(vii) supporting the ability to
understand resources that are easily accessible
and affordable, and that inform and educate an
investor as to the investor's rights and
avenues of recourse when the investor believes
the investor's rights have been violated by
unprofessional conduct of market
intermediaries;
``(viii) increasing awareness of the
particular financial needs and financial
transactions (such as the sending of
remittances) of consumers who are targeted in
multilingual financial literacy and education
programs and improving the development and
distribution of multilingual financial literacy
and education materials;
``(ix) promoting bringing individuals who
lack basic banking services into the financial
mainstream by opening and maintaining accounts
with financial institutions; and
``(x) improving financial literacy and
education through all other related skills,
including personal finance and related economic
education, with the primary goal of programs
not simply to improve knowledge, but rather to
improve consumers' financial choices and
outcomes.
``(2) Limitation.--Not more than 5 percent of the funds
allotted to a State under section 127(b)(1)(C) shall be used by
the State for administrative activities carried out under this
subsection or section 134(a).
``(3) Prohibition.--No funds described in this subsection
may be used to develop or implement education curricula for
school systems in the State.''.
(f) Local Elements and Requirements.--
(1) Program design.--Section 129(c)(1) (29 U.S.C.
2854(c)(1)) is amended--
(A) in the matter that precedes subparagraph (A),
by striking ``paragraph (2)(A) or (3), as appropriate,
of'';
(B) in subparagraph (B), by inserting ``are
directly linked to 1 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
redesignated by clause (i)) the following:
``(i) activities leading to the attainment
of a secondary school diploma or its
equivalent, or another recognized
credential;'';
(iii) in clause (ii) (as redesignated by
clause (i)), by inserting ``and advanced
training'' after ``opportunities'';
(iv) in clause (iii) (as redesignated by
clause (i))--
(I) by inserting ``instruction
based on State academic content and
student academic achievement standards
established under section 1111 of the
Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6311)'' after
``academic''; and
(II) by inserting ``that lead to
the attainment of recognized
credentials'' after ``learning''; and
(v) by striking clause (v) (as redesignated
by clause (i)) and inserting the following:
``(v) effective connections to all
employers, including small employers, in
sectors of the local and regional labor markets
that are 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 ``the requirements for a secondary school
diploma or its recognized equivalent (including
recognized alternative standards for individuals with
disabilities) or for another recognized credential,
including dropout prevention strategies'';
(B) in subparagraph (B), by inserting ``, with a
priority on exposing youth to technology and
nontraditional jobs'' before the semicolon;
(C) in subparagraph (F), by striking ``during
nonschool hours'';
(D) in subparagraph (I), by striking ``and'' at the
end;
(E) in subparagraph (J), by striking the period at
the end and inserting a semicolon; and
(F) by adding at the end the following:
``(K) on-the-job training opportunities;
``(L) opportunities to acquire financial literacy
skills;
``(M) entrepreneurial skills training and
microenterprise services; and
``(N) information about average wages for a range
of jobs available in the local area, including
technology jobs.''.
(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 amended by striking paragraphs (4) and (5).
(5) Prohibitions and linkages.--Section 129(c) (29 U.S.C.
2854(c)), as amended by paragraph (4), is further amended--
(A) by redesignating paragraphs (6), (7), and (8)
as paragraphs (4), (5), and (6), respectively;
(B) in paragraph (4) (as redesignated by
subparagraph (A))--
(i) by striking subparagraph (B); and
(ii) by redesignating subparagraph (C) as
subparagraph (B); and
(C) in paragraph (5) (as redesignated by
subparagraph (A)), by striking ``youth councils'' and
inserting ``local boards''.

SEC. 121. ADULT AND DISLOCATED WORKER EMPLOYMENT AND TRAINING
ACTIVITIES.

(a) State Allotments.--
(1) Reservations.--Section 132(a)(2)(A) (29 U.S.C. 2862
(a)(2)(A)) is amended by striking ``national emergency grants,
other than under subsection (a)(4), (f), and (g)'' and
inserting ``national dislocated worker grants, other than under
subparagraph (D) or (E) of subsection (a)(1), subsection (e),
and subsection (f)''.
(2) Allotment among states.--Section 132(b) (29 U.S.C.
2862(b)) is amended--
(A) in paragraph (1)(A)(ii), by striking ``section
127(b)(1)(B),'' and all that follows and inserting
``section 127(b)(1)(B).'';
(B) by striking paragraph (1)(B)(ii) and inserting
the following:
``(ii) Formula.--Subject to clauses (iii)
and (iv), of the remainder--
``(I) 40 percent shall be allotted
on the basis of the relative number of
unemployed individuals in areas of
substantial unemployment in each State,
compared to the total number of
unemployed individuals in areas of
substantial unemployment in all States;
``(II) 25 percent shall be allotted
on the basis of the relative number of
individuals in the civilian labor force
in each State, compared to the total
number of such individuals in all
States; and
``(III) 35 percent shall be
allotted on the basis of the relative
number of disadvantaged adults in each
State, compared to the total number of
disadvantaged adults in all States,
except as described in clause (iii).'';
(C) in paragraph (1)(B)--
(i) in clause (iii), by striking ``section
116(a)(2)(B)'' and inserting ``section
116(a)(2)(A)(iii)'';
(ii) in clause (iv)--
(I) in subclause (I)--
(aa) by striking ``Subject
to subclause (IV), the'' and
inserting ``The''; and
(bb) by striking ``than the
greater of'' and all that
follows and inserting ``than an
amount based on 90 percent of
the allotment percentage of the
State for the preceding fiscal
year.'';
(II) in subclause (II), by striking
``subclauses (I), (III), and (IV)'' and
inserting ``subclauses (I) and (III)'';
and
(III) by striking subclause (IV);
and
(iii) in clause (v), by striking subclause
(VI); and
(D) in paragraph (2)(A)(ii), by striking ``section
127(b)(1)(B)'' and all that follows and inserting
``section 127(b)(1)(B).''.
(3) Reallotment.--Section 132(c) (29 U.S.C. 2862(c)) is
amended--
(A) by striking paragraph (2) and inserting the
following:
``(2) Amount.--The amount available for reallotment for a
program year for programs funded under subsection (b)(1)(B)
(relating to adult employment and training) and subsection
(b)(2)(B) (relating to dislocated worker employment and
training), respectively, 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 subsection (b)(1)(B) or (b)(2)(B), respectively, during
such prior program year (including amounts allotted to the
State in all prior program years under such provisions that
remained 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
State under subsection (b)(1)(B) or (b)(2)(B),
respectively, 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 under such provisions that remained
available); and
``(B) the accrued expenditures from such total
amount of funds available under subsection (b)(1)(B) or
(b)(2)(B), respectively, during such prior program
year.'';
(B) in paragraph (3)--
(i) by striking ``under this section for
such activities for the prior program year''
and inserting ``under subsection (b)(1)(B) or
(b)(2)(B), as appropriate, for the program year
for which the determination is made''; and
(ii) by striking ``under this section for
such activities for such prior program year''
and inserting ``under subsection (b)(1)(B) or
(b)(2)(B), as appropriate, for such program
year'';
(C) by striking paragraph (4) and inserting the
following:
``(4) Eligibility.--For purposes of this subsection, an
eligible State means--
``(A) with respect to funds allotted under
subsection (b)(1)(B), a State that does not have an
amount of such funds available for reallotment under
paragraph (2) for the program year for which the
determination under paragraph (2) is made; and
``(B) with respect to funds allotted under
subsection (b)(2)(B), a State that does not have an
amount of such funds available for reallotment under
paragraph (2) for the program year for which the
determination under paragraph (2) is made.''; and
(D) in paragraph (5), by striking ``obligation''
and inserting ``accrued expenditure''.
(4) Effective date.--The amendments made by paragraph (3)
shall take effect for the later of--
(A) the program year that begins after the date of
enactment of this Act; or
(B) program year 2006.
(b) Within State Allocations.--
(1) Allocation.--Section 133(b)(2)(A)(i) (29 U.S.C.
2863(b)(2)(A)(i)) is amended--
(A) in subclause (I), by striking ``33\1/3\
percent'' and inserting ``40 percent'';
(B) in subclause (II), by striking ``33\1/3\
percent'' and inserting ``25 percent''; and
(C) in subclause (III), by striking ``33\1/3\
percent'' and inserting ``35 percent''.
(2) Transfer authority.--Section 133(b)(4) (29 U.S.C.
2863(b)(4)) is amended by striking ``20 percent'' each place it
appears and inserting ``100 percent''.
(3) Requirements.--Clauses (i) and (ii) of section
133(b)(5)(B) (29 U.S.C. 2863(b)(5)(B)) are amended by striking
``section 134(c)'' and inserting ``section 121(e)''.
(4) Reallocation.--Section 133(c) (29 U.S.C. 2863(c)) is
amended--
(A) in paragraph (1), by inserting ``, and under
subsection (b)(2)(B) for dislocated worker employment
and training activities,'' after ``activities'';
(B) by striking paragraph (2) and inserting the
following:
``(2) Amount.--The amount available for reallocation for a
program year for programs funded under paragraphs (2)(A) and
(3) of subsection (b) (relating to adult employment and
training) and subsection (b)(2)(B) (relating to dislocated
worker employment and training), respectively, 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 paragraphs (2)(A) and
(3) of subsection (b), or subsection (b)(2)(B), respectively,
during such prior program year (including amounts allocated to
the local area in all prior program years under such provisions
that remained 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 paragraphs (2)(A) and (3) of
subsection (b), or subsection (b)(2)(B), respectively,
during the program year prior to the program year for
which the determination is made (including amounts
allotted to the local area in all prior program years
under such provisions that remained available); and
``(B) the accrued expenditures from such total
amount of funds available under paragraphs (2)(A) and
(3) of subsection (b), or subsection (b)(2)(B),
respectively, during such prior program year.'';
(C) by striking paragraph (3) and inserting the
following:
``(3) Reallocation.--In making reallocations to eligible
local areas of amounts available pursuant to paragraph (2) for
a program year, the Governor shall allocate to each eligible
local area within the State--
``(A) with respect to amounts that are available
for reallocation under paragraph (2) that were
allocated under paragraphs (2)(A) or (3) of subsection
(b), an amount based on the relative amount allocated
to such local area under paragraphs (2)(A) or (3) of
subsection (b), as appropriate, for the program year
for which the determination is made, as compared to the
total amount allocated to all eligible local areas
under paragraphs (2)(A) or (3) of subsection (b), as
appropriate, for such program year; and
``(B) with respect to amounts that are available
for reallocation under paragraph (2) that were
allocated under subsection (b)(2)(B), an amount based
on the relative amount allocated to such local area
under subsection (b)(2)(B) for the program year for
which the determination is made, as compared to the
total amount allocated to all eligible local areas
under subsection (b)(2)(B) for such program year.'';
and
(D) by striking paragraph (4) and inserting the
following:
``(4) Eligibility.--For purposes of this subsection, an
eligible local area means--
``(A) with respect to funds allocated under
paragraphs (2)(A) or (3) of subsection (b), a local
area that does not have an amount of such funds
available for reallocation under paragraph (2) for the
program year for which the determination under
paragraph (2) is made; and
``(B) with respect to funds allocated under
subsection (b)(2)(B), a local area that does not have
an amount of such funds available for reallocation
under paragraph (2) for the program year for which the
determination under paragraph (2) is made.''.
(5) Effective date.--The amendments made by paragraph (3)
shall take effect for the later of--
(A) the program year that begins after the date of
enactment of this Act; or
(B) program year 2006.
(c) Use of Funds for Employment and Training Activities.--
(1) Statewide employment and training activities.--
(A) Statewide rapid response activities.--Section
134(a)(2)(A) (29 U.S.C. 2864(a)(2)(A)) is amended to
read as follows:
``(A) Statewide rapid response activities.--
``(i) In general.--A State shall carry out
statewide rapid response activities using funds
reserved by a Governor for a State under
section 133(a)(2). Such activities shall
include--
``(I) provision of rapid response
activities, carried out in local areas
by the State or by an entity designated
by the State, working in conjunction
with the local boards and the chief
elected officials for the local areas;
and
``(II) provision of additional
assistance to local areas that
experience disasters, mass layoffs, or
plant closings, or other events that
precipitate substantial increases in
the number of unemployed individuals,
carried out in local areas by the
State, working in conjunction with the
local boards and the chief elected
officials for the local areas.
``(ii) Use of unexpended funds.--Funds
reserved under section 133(a)(2) to carry out
this subparagraph that remain unexpended after
the first program year for which such funds
were allotted may be used by the Governor to
carry out statewide activities authorized under
subparagraph (B) and paragraph (3)(A) in
addition to activities under this
subparagraph.''.
(B) Statewide employment and training activities.--
Section 134(a)(2) (29 U.S.C. 2864(a)(2)) is amended by
striking subparagraph (B) and inserting the following:
``(B) Statewide employment and training
activities.--Funds reserved by a Governor for a State
under sections 128(a)(1) and 133(a)(1) and not used
under paragraph (1)(A) (regardless of whether the funds
were allotted to the States under section 127(b)(1)(C)
or paragraphs (1)(B) or (2)(B) of section 132(b)) shall
be used for statewide employment and training
activities, including--
``(i) disseminating--
``(I) the State list of eligible
providers of training services,
including eligible providers of
nontraditional training services and
eligible providers of apprenticeship
programs described in section
122(a)(2)(B);
``(II) information identifying
eligible providers of on-the-job
training, customized training, and
incumbent worker training;
``(III) information on effective
business outreach, partnerships, and
services;
``(IV) performance information and
information on costs of attendance, as
described in subsections (d) and (i) of
section 122; and
``(V) information on physical and
programmatic accessibility for
individuals with disabilities;
``(ii) 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;
``(iii) providing incentive grants to local
areas, in accordance with section 136(i);
``(iv) developing strategies for ensuring
that activities carried out under this section
are placing men and women in jobs, education,
and training that lead to comparable pay;
``(v) 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 described in
section 136(c), which may include the
development and training of staff to provide
opportunities for hard-to-serve populations to
enter high-wage, high-skilled, and
nontraditional occupations;
``(vi) operating a fiscal and management
accountability system under section 136(f); and
``(vii) carrying out monitoring and
oversight of activities carried out under this
chapter and chapter 4.''.
(C) Allowable statewide employment and training
activities.--Section 134(a)(3)(A) (29 U.S.C.
2864(a)(3)(A)) is amended to read as follows:
``(A) In general.--Funds reserved by a Governor for
a State under sections 128(a)(1) and 133(a)(1) and not
used under paragraph (1)(A) or (2)(B) (regardless of
whether the funds were allotted to the State under
section 127(b)(1)(C) or paragraph (1)(B) or (2)(B) of
section 132(b)) may be used to carry out additional
statewide employment and training activities, which may
include--
``(i) implementing innovative programs and
strategies designed to meet the needs of all
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;
``(ii) developing strategies for
effectively serving hard-to-serve populations
and for coordinating programs and services
among one-stop partners;
``(iii) implementing innovative programs
for displaced homemakers, which for purposes of
this clause may include an individual who is
receiving public assistance and is within 2
years of exhausting lifetime eligibility under
part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.);
``(iv) implementing programs to increase
the number of individuals training for and
placed in nontraditional employment;
``(v) carrying out activities to facilitate
remote access to services, including training
services described in subsection (d)(4),
provided through a one-stop delivery system,
including facilitating access through the use
of technology;
``(vi) supporting the provision of core
services described in subsection (d)(2) in the
one-stop delivery system in the State;
``(vii) coordinating with the child welfare
system to facilitate services for children in
foster care and those who are eligible for
assistance under section 477 of the Social
Security Act (42 U.S.C. 677);
``(viii) activities--
``(I) to improve coordination
between workforce investment activities
carried out within the State involved
and economic development activities,
and to promote entrepreneurial skills
training and microenterprise services;
``(II) to improve coordination
between employment and training
assistance, child support services, and
assistance provided by State and local
agencies carrying out part D of title
IV of the Social Security Act (42
U.S.C. 651 et seq.);
``(III) to improve coordination
between employment and training
assistance and cooperative extension
programs carried out by the Department
of Agriculture;
``(IV) to improve coordination
between employment and training
assistance and programs carried out in
the local area for individuals with
disabilities, including programs
carried out by State agencies relating
to mental retardation and developmental
disabilities, Statewide Independent
Living Councils established under
section 705 of the Rehabilitation Act
of 1973 (29 U.S.C. 796d), and centers
for independent living defined in
section 702 of the Rehabilitation Act
of 1973 (29 U.S.C. 796a);
``(V) to develop and disseminate
workforce and labor market information;
``(VI) to improve coordination with
the corrections system to facilitate
provision of training services and
employment opportunities that will
assist ex-offenders in reentering the
workforce; and
``(VII) to promote financial
literacy, including carrying out
activities described in section
129(b)(1)(I);
``(ix) conducting--
``(I) research; and
``(II) demonstration projects; and
``(x) adopting, calculating, or
commissioning a minimum self-sufficiency
standard that specifies the income needs of
families, by family size, the number and ages
of children in the family, and sub-State
geographical considerations.''.
(2) Required local employment and training activities.--
(A) Allocated funds.--Section 134(d)(1)(A) (29
U.S.C. 2864(d)(1)(A)) is amended--
(i) in clause (i), by striking ``described
in subsection (c)'';
(ii) in clause (iii), by striking ``and''
at the end;
(iii) in clause (iv), by striking the
period and inserting a semicolon; and
(iv) by adding at the end the following:
``(v) 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; and
``(vi) in order to improve service delivery
to avoid duplication of services and enhance
coordination of services, to require the
colocation of employment services provided
under the Wagner-Peyser Act (29 U.S.C. 49 et
seq.) at the one-stop centers.''.
(B) Core services.--Section 134(d)(2) (29 U.S.C.
2864(d)(2)) is amended--
(i) in the matter preceding subparagraph
(A), by striking ``paragraph (1)(A)'' and
inserting ``paragraph (1)'';
(ii) in subparagraph (C), by inserting
``(including literacy, numeracy, and English
language proficiency)'' after ``skill levels'';
(iii) by striking subparagraph (D) and
inserting the following:
``(D) labor exchange services, including--
``(i) job search and placement assistance
and, in appropriate cases, career counseling,
including--
``(I) exposure to high wage, high
skill jobs; and
``(II) nontraditional employment;
and
``(ii) appropriate recruitment and other
business services for all 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;'';
(iv) in subparagraph (E)(iii)--
(I) by inserting ``, career
ladders,'' after ``earnings''; and
(II) by striking ``and'' at the
end;
(v) in subparagraph (F)--
(I) by striking ``and program cost
information''; and
(II) by striking ``described in
section 123'';
(vi) 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
(vii) in subparagraph (J), by striking
``for--'' and all that follows through ``(ii)
programs'' and inserting ``for programs''.
(C) Intensive services.--Section 134(d)(3) (29
U.S.C. 2864(d)(3)) is amended--
(i) by striking subparagraph (A) and
inserting the following:
``(A) In general.--
``(i) Eligibility.--Except as provided in
clause (ii), funds allocated to a local area
for adults under paragraph (2)(A) or (3), as
appropriate, of section 133(b), and funds
allocated to the local area for dislocated
workers under section 133(b)(2)(B), shall be
used to provide intensive services to adults
and dislocated workers, respectively--
``(I) who are unemployed and who,
after an interview, evaluation, or
assessment, have been determined by a
one-stop operator or one-stop partner
to be--
``(aa) unlikely or unable
to obtain employment, that
leads to self-sufficiency or
wages comparable to or higher
than previous employment,
through core services described
in paragraph (2); and
``(bb) in need of intensive
services to obtain employment
that leads to self-sufficiency
or wages comparable to or
higher than previous
employment; or
``(II) who are employed, but who,
after an interview, evaluation, or
assessment are determined by a one-stop
operator or one-stop partner to be in
need of intensive services to obtain or
retain employment that leads to self-
sufficiency.
``(ii) Special rule.--A new interview,
evaluation, or assessment of a participant is
not required under clause (i) if the one-stop
operator or one-stop partner determines that it
is appropriate to use a recent assessment of
the participant conducted pursuant to another
education or training program.''; and
(ii) in subparagraph (C)--
(I) in clause (v), by striking
``for participants seeking training
services under paragraph (4)''; and
(II) by adding at the end the
following:
``(vii) Internships and work experience.
``(viii) Literacy activities relating to
basic work readiness.
``(ix) Financial literacy services, such as
activities described in section 129(b)(1)(I).
``(x) Out-of-area job search assistance and
relocation assistance.
``(xi) English language acquisition and
integrated training programs.''.
(D) Training services.--Section 134(d)(4) (29
U.S.C. 2864(d)(4)) is amended--
(i) by striking subparagraph (A) and
inserting the following:
``(A) In general.--
``(i) Eligibility.--Except as provided in
clause (ii), funds allocated to a local area
for adults under paragraph (2)(A) or (3), as
appropriate, of section 133(b), and funds
allocated to the local area for dislocated
workers under section 133(b)(2)(B), shall be
used to provide training services to adults and
dislocated workers, respectively--
``(I) who, after an interview,
evaluation, or assessment, and case
management, have been determined by a
one-stop operator or one-stop partner,
as appropriate, to--
``(aa) be unlikely or
unable to obtain or retain
employment, that leads to self-
sufficiency or wages comparable
to or higher than previous
employment, through the
intensive services described in
paragraph (3);
``(bb) be in need of
training services to obtain or
retain employment that leads to
self-sufficiency or wages
comparable to or higher than
previous employment; and
``(cc) have the skills and
qualifications to successfully
participate in the selected
program of training services;
``(II) who select programs of
training services that are directly
linked to the employment opportunities
in the local area or region involved or
in another area to which the adults or
dislocated workers are willing to
commute or relocate;
``(III) who meet the requirements
of subparagraph (B); and
``(IV) who are determined to be
eligible in accordance with the
priority system in effect under
subparagraph (E).
``(ii) Special rule.--A new interview,
evaluation, or assessment of a participant is
not required under clause (i) if the one-stop
operator or one-stop partner determines that it
is appropriate to use a recent assessment of
the participant conducted pursuant to another
education or training program.'';
(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) in subparagraph (D)--
(I) in clause (viii), by striking
``and'' after the semicolon;
(II) in clause (ix), by striking
the period and inserting ``; and''; and
(III) by adding at the end the
following:
``(x) English language acquisition and
integrated training programs.'';
(iv) in subparagraph (F)--
(I) in clause (ii), by striking
``referred to in subsection (c), shall
make available--'' and all that follows
and inserting ``shall make available a
list of eligible providers of training
services, and accompanying information,
in accordance with section 122(d).'';
(II) in the heading of clause
(iii), by striking ``Individual
training accounts'' and inserting
``Career scholarship accounts'';
(III) in clause (iii)--
(aa) by striking
``identifying information'' and
inserting ``accompanying
information'';
(bb) by striking ``clause
(ii)(I)'' and inserting
``clause (ii)''; and
(cc) by striking ``an
individual training account''
and inserting ``a career
scholarship account''; and
(IV) by adding at the end the
following:
``(iv) Coordination.--Each local board may,
through one-stop centers, coordinate career
scholarship accounts with other Federal, State,
local, or private job training programs or
sources to assist the individual in obtaining
training services.''; and
(v) in subparagraph (G)--
(I) in the subparagraph heading, by
striking ``individual training
accounts'' and inserting ``career
scholarship accounts'';
(II) in clause (i), by striking
``individual training accounts'' and
inserting ``career scholarship
accounts'';
(III) in clause (ii)--
(aa) by striking ``an
individual training account''
and inserting ``a career
scholarship account'';
(bb) in subclause (II), by
striking ``individual training
accounts'' and inserting
``career scholarship
accounts'';
(cc) in subclause (II) by
striking ``or'' after the
semicolon;
(dd) in subclause (III), by
striking ``special participant
populations that face multiple
barriers to employment'' and
inserting ``hard-to-serve
populations'';
(ee) in subclause (III), by
striking the period and
inserting '``; or''; and
(ff) by adding at the end
the following:
``(IV) the local board determines
that it would be most appropriate to
award a contract to 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.''; and
(IV) by striking clause (iv).
(3) Permissible activities.--Section 134(e) (29 U.S.C.
2864(e)) is amended--
(A) by striking the matter preceding paragraph (2)
and inserting the following:
``(e) Permissible Local Employment and Training Activities.--
``(1) In general.--
``(A) Activities.--Funds allocated to a local area
for adults under paragraph (2)(A) or (3), as
appropriate, of section 133(b), and funds allocated to
the local area for dislocated workers under section
133(b)(2)(B), may be used to provide, through the one-
stop delivery system involved--
``(i) customized screening and referral of
qualified participants in training services
described in subsection (d)(4) to employers;
``(ii) customized employment-related
services to employers on a fee-for-service
basis;
``(iii) customer support to enable members
of hard-to-serve populations, including
individuals with disabilities, to navigate
among multiple services and activities for such
populations;
``(iv) technical assistance and capacity
building for serving individuals with
disabilities in local areas, for one-stop
operators, one-stop partners, and eligible
providers, including the development and
training of staff, the provision of outreach,
intake, assessments, and service delivery, and
the development of performance measures;
``(v) employment and training assistance
provided in coordination with child support
enforcement activities of the State and local
agencies carrying out part D of title IV of the
Social Security Act (42 U.S.C. 651 et seq.);
``(vi) activities to improve coordination
among employment and training assistance, child
support services, and assistance provided by
State and local agencies carrying out part D of
title IV of the Social Security Act (42 U.S.C.
651 et seq.);
``(vii) activities to improve coordination
between employment and training assistance and
cooperative extension programs carried out by
the Department of Agriculture;
``(viii) activities to facilitate remote
access to services provided through a one-stop
delivery system, including facilitating access
through the use of technology;
``(ix) activities--
``(I) to improve coordination
between workforce investment activities
carried out within the local area
involved and economic development
activities, and to promote
entrepreneurial skills training and
microenterprise services; and
``(II) to improve services and
linkages between the local workforce
investment system including the local
one-stop delivery system, and all
employers, including small employers in
the local area, through services
described in this section, including
subparagraph (B);
``(x) training programs for displaced
homemakers and for individuals training for
nontraditional occupations, in conjunction with
programs operated in the local area;
``(xi) using a portion of the funds
allocated under section 133(b), 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;
``(xii) activities to adjust the self-
sufficiency standards for local factors, or
activities to adopt, calculate, or commission a
self-sufficiency standard that specifies the
income needs of families, by family size, the
number and ages of children in the family, and
sub-State geographical considerations; and
``(xiii) improved coordination between
employment and training assistance and programs
carried out in the local area for individuals
with disabilities, including programs carried
out by State agencies relating to mental
retardation and developmental disabilities,
Statewide Independent Living Councils
established under section 705 of the
Rehabilitation Act of 1973 (29 U.S.C. 796d),
and centers for independent living defined in
section 702 of the Rehabilitation Act of 1973
(29 U.S.C. 796a).
``(B) Work support activities for low-wage
workers.--
``(i) In general.--Funds allocated to a
local area for adults under paragraph (2)(A) or
(3), as appropriate, of section 133(b), and
funds allocated to the local area for
dislocated workers under section 133(b)(2)(B),
may be used to provide, through the one-stop
delivery system involved, work support
activities designed to assist low-wage workers
in retaining and enhancing employment. The one-
stop partners 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 the
provision of activities described in this
section through the one-stop delivery system in
a manner that enhances the opportunities of
such workers to participate in the activities,
such as the provision of activities described
in this section during nontraditional hours and
the provision of onsite child care while such
activities are being provided.''; and
(B) by adding at the end the following:
``(4) Incumbent worker training programs.--
``(A) In general.--The local board may use up to 10
percent of the funds allocated to the local area
involved under section 133(b) to pay for the Federal
share of the cost of providing training through an
incumbent worker training program carried out in
accordance with this paragraph. The Governor or State
board may make recommendations to the local board
regarding incumbent worker training with statewide
impact.
``(B) Training activities.--The training program
for incumbent workers carried out under this paragraph
shall be carried out by the local board in conjunction
with the employers or groups of employers of such
workers for the purpose of assisting such workers in
obtaining the skills necessary to retain employment or
avert layoffs.
``(C) Employer share required.--
``(i) In general.--Employers participating
in the program carried out under this paragraph
shall be required to pay the non-Federal share
of the costs of providing the training to
incumbent workers of the employers. The local
board shall establish the non-Federal share of
such costs, which may include in-kind
contributions. The non-Federal share 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 employer share.--The
non-Federal share paid by such an employer may
include the amount of the wages paid by the
employer to a worker while the worker is
attending a training program under this
paragraph.''.

SEC. 122. PERFORMANCE ACCOUNTABILITY SYSTEM.

(a) State Performance Measures.--
(1) Indicators of performance.--Section 136(b)(2)(A) (29
U.S.C. 2871(b)(2)(A)) is amended--
(A) in clause (i)--
(i) in the matter preceding subclause (I),
by striking ``and (for participants who are
eligible youth age 19 through 21) for youth
activities authorized under section 129'';
(ii) by striking subclause (III) and
inserting the following:
``(III) increases in earnings from
unsubsidized employment; and''; and
(iii) in subclause (IV), by striking ``, or
by participants'' and all that follows through
``unsubsidized employment''; and
(B) by striking clause (ii) and inserting the
following:
``(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) school retention, and
attainment of secondary school diplomas
or their recognized equivalents and of
postsecondary certificates; and
``(III) literacy or numeracy
gains.''.
(2) Additional indicators.--Section 136(b)(2)(C) (29 U.S.C.
2871(b)(2)(C)) is amended to read as follows:
``(C) Additional indicators.--A State may identify
in the State plan additional indicators for workforce
investment activities under this subtitle, including
indicators identified in collaboration with State
business and industry associations, with employee
representatives where applicable, and with local
boards, to measure the performance of the workforce
investment system in serving the workforce needs of
business and industry in the State.''.
(3) Levels of performance.--Section 136(b)(3)(A) (29 U.S.C.
2871(b)(3)(A)) is amended--
(A) in clause (iii)--
(i) in the heading, by striking ``for first
3 years'';
(ii) by striking ``and the customer
satisfaction indicator of performance, for the
first 3'' and inserting ``described in clauses
(i) and (ii) of paragraph (2)(A) and the
customer satisfaction indicator of performance,
for the first 2''; and
(iii) by inserting at the end the
following: ``Agreements on levels of
performance for each of the core indicators of
performance for the third and fourth program
years covered by the State plan shall be
reached prior to the beginning of the third
program year covered by the State plan, and
incorporated as a modification to the State
plan.'';
(B) in clause (iv)--
(i) in the matter preceding subclause (I),
by striking ``or (v)'';
(ii) in subclause (II)--
(I) by striking ``taking into
account'' and inserting ``and shall
ensure that the levels involved are
adjusted, using objective statistical
methods, based on'';
(II) by inserting ``(such as
differences in unemployment rates and
job losses or gains in particular
industries)'' after ``economic
conditions'';
(III) by inserting ``(such as
indicators of poor work history, lack
of work experience, lack of educational
or occupational skills attainment,
dislocation from high-wage and benefit
employment, low levels of literacy or
English proficiency, disability status,
homelessness, ex-offender status, and
welfare dependency)'' after
``program''; and
(IV) by striking ``and'' at the
end;
(iii) in subclause (III), by striking the
period and inserting ``; and''; and
(iv) by adding at the end the following:
``(IV) the extent to which the
levels involved will assist the State
in meeting the national goals described
in clause (v).'';
(C) by striking clause (v) and inserting the
following:
``(v) Establishment of national goals.--In
order to promote enhanced performance outcomes
on the performance measures and to facilitate
the process of reaching agreements with the
States under clause (iii) and to measure
systemwide performance for the one-stop
delivery systems of the States, the Secretary
shall establish long-term national goals for
the adjusted levels of performance for that
systemwide performance to be achieved by the
programs assisted under chapters 4 and 5 on the
core indicators of performance described in
subparagraphs (A) and (B) of subsection (b)(2).
Such goals shall be established in accordance
with the Government Performance and Results Act
of 1993 in consultation with the States and
other appropriate parties.''; and
(D) in clause (vi)--
(i) by striking ``or (v)''; and
(ii) by striking ``with the representatives
described in subsection (i)'' and inserting
``with the States and other interested
parties''.
(b) Local Performance Measures.--Section 136(c)(3) (29 U.S.C.
2871(c)(3)) is amended--
(1) by striking ``shall take into account'' and inserting
``shall ensure that the levels involved are adjusted, using
objective statistical methods, based on'';
(2) by inserting ``characteristics (such as unemployment
rates and job losses or gains in particular industries)'' after
``economic''; and
(3) by inserting ``characteristics (such as indicators of
poor work history, lack of work experience, lack of educational
and occupational skills attainment, dislocation from high-wage
and benefit employment, low levels of literacy or English
proficiency, disability status, homelessness, ex-offender
status, and welfare dependency)'' after ``demographic''.
(c) Report.--Section 136(d) (29 U.S.C. 2871(d)) is amended--
(1) in paragraph (1), by adding at the end the following:
``In the case of a State or local area that chooses to expend
funds for activities under subsection (a)(3)(A)(i) or
(e)(1)(A)(xi), respectively, of section 134, the report also
shall include the amount of such funds so expended and the
percentage that such funds are of the funds available for
activities under section 134.'';
(2) in paragraph (2)--
(A) in subparagraph (E)--
(i) by striking ``(excluding participants
who received only self-service and
informational activities)''; and
(ii) by striking ``and'' after the
semicolon;
(B) in subparagraph (F)--
(i) by inserting ``noncustodial parents
with child support obligations, homeless
individuals,'' after ``displaced homemakers,'';
and
(ii) by striking the period and inserting a
semicolon; 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;
``(H) the number of participants who have received
services, other than followup services, authorized
under this title, in the form of core services
described in section 134(d)(2), intensive services
described in section 134(d)(3), and training services
described in section 134(d)(4), respectively;
``(I) the number of participants who have received
followup services authorized under this title;
``(J) the cost per participant for services
authorized under this title; and
``(K) the amount of adult and dislocated worker
funds spent on--
``(i) core, intensive, and training
services, respectively; and
``(ii) services provided under subsection
(a)(3)(A)(i) or (e)(1)(A)(xi) of section 134,
if applicable.''; 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
that the information contained in the reports is valid and
reliable.''.
(d) Evaluation of State Programs.--Section 136(e)(3) (29 U.S.C.
2871(e)(3)) is amended by inserting ``, including information on
promoting self-sufficiency and comparable pay between men and women''
after ``employers''.
(e) Sanctions for State.--Section 136(g)(1)(B) (29 U.S.C.
2871(g)(1)(B)) is amended by striking ``If such failure continues for a
second consecutive year'' and inserting ``If a State performs at less
than 80 percent of the adjusted level of performance for core
indicators of performance described in subsection (b)(2)(A) for 2
consecutive years''.
(f) Sanctions for Local Area.--Section 136(h)(2)(A) (29 U.S.C.
2871(h)(2)(A)) is amended--
(1) in the matter preceding clause (i), by striking ``If
such failure continues for a second consecutive year'' and
inserting ``If a local area performs at less than 80 percent of
the adjusted level of performance for core indicators of
performance described in subsection (b)(2)(A) for 2 consecutive
years'';
(2) in clause (ii), by striking ``or'' after the semicolon;
(3) by redesignating clause (iii) as clause (iv); and
(4) by inserting after clause (ii) the following:
``(iii) redesignate the local area in
accordance with section 116(b)(2); or''.
(g) Incentive Grants.--Section 136(i) (29 U.S.C. 2871(i)) is
amended to read as follows:
``(i) Incentive Grants for Local Areas.--
``(1) In general.--From funds reserved under sections
128(a) and 133(a)(1), the Governor involved shall award
incentive grants to local areas for performance described in
paragraph (2).
``(2) Basis.--The Governor shall award the grants on the
basis that the local areas--
``(A) have exceeded the performance measures
established under subsection (c)(2) relating to
indicators described in subsection (b)(3)(A)(iii); or
``(B) have--
``(i) met the performance measures
established under subsection (c)(2) relating to
indicators described in subsection
(b)(3)(A)(iii); and
``(ii) demonstrated--
``(I) exemplary coordination of
one-stop partner programs described in
section 121 with statewide economic
development or business needs;
``(II) exemplary performance in the
one-stop partner programs in the State
in serving hard-to-serve populations;
or
``(III) effective--
``(aa) coordination of
multiple systems for the one-
stop partner programs into a
comprehensive workforce
investment system, including
coordination of employment
services under the Wagner-
Peyser Act (29 U.S.C. 49 et
seq.) and core services under
section 134(d)(2);
``(bb) expansion of access
to training through the one-
stop partner programs,
including expansion of access
through increased leveraging of
resources other than those
provided through programs under
this title;
``(cc) implementation of
coordination activities
relating to the one-stop
partner programs, through
agreements with relevant
regional or local agencies and
offices, including those
responsible for programs under
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.);
``(dd) regional
coordination relating to the
one-stop partner programs, with
other local boards or local
areas;
``(ee) alignment of
management information systems
to integrate participant
information across the one-stop
partner programs; or
``(ff) integration of
performance information systems
and common measures for
accountability across the one-
stop partner programs.
``(3) Use of funds.--The funds awarded to a local area
under this subsection may be used to carry out activities
authorized for local areas in programs carried out under 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--
``(A) activities that support business needs,
especially for incumbent workers and enhancing
opportunities for retention and advancement;
``(B) 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 Vocational and Technical Education Act of 1998
(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.);
``(C) activities that support regional economic
development plans that support high-wage, high-skill,
or high-demand occupations leading to self-sufficiency;
``(D) activities that coordinate the workforce and
education programs with other Federal and State
programs related to the workforce and education
programs;
``(E) activities that support the development of an
integrated performance information system that includes
common measures for one-stop partner programs described
in section 121;
``(F) activities that align management information
systems with integrated performance information across
the one-stop partner programs;
``(G) activities that support activities to improve
performance in workforce and education programs and
program coordination of workforce and education
programs; or
``(H) activities that leverage additional training
resources, other than those provided through workforce
and education programs, for adults and youth.
``(4) Technical assistance.--The Governor shall reserve 4
percent of the funds available for grants under this subsection
to provide technical assistance to local areas--
``(A) to replicate best practices for workforce and
education programs;
``(B) to develop integrated performance information
systems for the one-stop partner programs;
``(C) to strengthen coordination between workforce
and education programs, and other education programs;
or
``(D) to strengthen regional economic
development.''.
(h) Use of Core Measures in Other Department of Labor Programs.--
Section 136 (29 U.S.C. 2871) is amended by adding at the end the
following:
``(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 indicators of performance described in subparagraphs (A)
and (B) of subsection (b)(2) to assess the effectiveness of the
programs described in clauses (i), (ii), and (vi) of section
121(b)(1)(B) that are carried out by the Secretary.''.
(i) Previous Definitions of Core Indicators.--Section 502 (29
U.S.C. 9272) is repealed.

SEC. 123. 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 years 2006 through 2011''.
(b) Adult Employment and Training Activities.--Section 137(b) (29
U.S.C. 2872(b)) 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 years 2006 through 2011''.
(c) Dislocated Worker Employment and Training Activities.--Section
137(c) (29 U.S.C. 2872(c)) 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 years 2006 through
2011''.

Subtitle C--Job Corps

SEC. 131. JOB CORPS.

(a) Eligibility.--Section 144(3) (29 U.S.C. 2884(3)) is amended by
adding at the end the following:
``(F) A child eligible for assistance under section
477 of the Social Security Act (42 U.S.C. 677).''.
(b) Implementation of Standards and Procedures.--Section 145(a)(3)
(29 U.S.C. 2885(a)(3)) is amended--
(1) in subparagraph (B), by striking ``and'' after the
semicolon;
(2) in subparagraph (C), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following:
``(D) child welfare agencies that are responsible
for children in foster care and children eligible for
assistance under section 477 of the Social Security Act
(42 U.S.C. 677).''.
(c) 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 at the end the following:
``(3) Employers outside of local area.--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.''.
(d) Indicators of Performance.--Section 159 (29 U.S.C. 2899) is
amended--
(1) in subsection (c)--
(A) by striking paragraph (1) and inserting the
following:
``(1) Performance indicators.--The Secretary shall annually
establish expected levels of performance for Job Corps centers
and the Job Corps program relating to each of the core
indicators of performance for youth activities identified in
section 136(b)(2)(A)(ii).'';
(B) in paragraph (2), by striking ``measures'' each
place it appears and inserting ``indicators''; and
(C) in paragraph (3)--
(i) in the first sentence, by striking
``core performance measures, as compared to the
expected performance level for each performance
measure'' and inserting ``performance
indicators described in paragraph (1), as
compared to the expected level of performance
established under paragraph (1) for each
performance measure''; and
(ii) in the second sentence, by striking
``measures'' each place it appears and
inserting ``indicators''; and
(2) in subsection (f)(2), in the first sentence, by
striking ``core performance measures'' and inserting
``indicators of performance''.
(e) Authorization of Appropriations.--Section 161 (29 U.S.C. 2901)
is amended by striking ``1999 through 2003'' and inserting ``2006
through 2011''.

Subtitle D--National Programs

SEC. 141. 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, including the
selection of the individual appointed as head of the
unit established under paragraph (1).''.
(b) Assistance to Unique Populations in Alaska and Hawaii.--Section
166(j) (29 U.S.C. 2911(j)) is amended to read as follows:
``(j) Assistance to Unique Populations in Alaska and Hawaii.--
``(1) In general.--Notwithstanding any other provision of
law, the Secretary is authorized to provide assistance to the
Cook Inlet Tribal Council, Incorporated, and the University of
Hawaii at Maui, for the unique populations who reside in Alaska
or Hawaii, to improve job training and workforce investment
activities.
``(2) Authorization of appropriations.--There are
authorized to be appropriated to carry out this subsection such
sums as may be necessary for each of fiscal years 2006 through
2011.''.
(c) Performance Indicators.--Section 166 (29 U.S.C. 2911) is
amended by adding at the end the following:
``(k) Performance Indicators.--
``(1) Development of indicators.--The Secretary, in
consultation with the Native American Employment and Training
Council, shall develop a set of performance indicators and
standards which shall be applicable to programs under this
section.
``(2) Special considerations.--Such performance indicators
and standards shall take into account--
``(A) the purpose of this section as described in
subsection (a)(1);
``(B) the needs of the groups served by this
section, including the differences in needs among such
groups in various geographic service areas; and
``(C) the economic circumstances of the communities
served, including differences in circumstances among
various geographic service areas.''.

SEC. 142. MIGRANT AND SEASONAL FARMWORKER PROGRAMS.

Section 167 (29 U.S.C. 2912) is amended--
(1) in subsection (a), by striking ``2'' and inserting ``2
to 4'';
(2) in subsection (b), by inserting ``and deliver'' after
``administer'';
(3) in subsection (c)--
(A) in paragraph (1), by striking ``2-year'' and
inserting ``4-year'';
(B) in paragraph (2)--
(i) in subparagraph (A)--
(I) by inserting ``describe the
population to be served and'' before
``identify''; and
(II) by inserting ``, including
upgraded employment in agriculture''
before the semicolon;
(ii) in subparagraph (B), by striking
``and'' at the end;
(iii) in subparagraph (C), by striking the
period and inserting a semicolon; and
(iv) by adding at the end the following:
``(D) describe the availability and accessibility
of local resources such as supportive services,
services provided through one-stop delivery systems,
and education and training services, and how the
resources can be made available to the population to be
served; and
``(E) describe the plan for providing services
under this section, including strategies and systems
for outreach, case management, assessment, and delivery
through one-stop delivery systems.''; and
(C) by striking paragraph (4) and inserting the
following:
``(4) Competition.--The competition for grants made and
contracts entered into under this section shall be conducted
every 2 to 4 years.'';
(4) in subsection (d), by striking ``include'' and all that
follows and inserting ``include outreach, employment, training,
educational assistance, literary assistance, English language
and literacy instruction, pesticide and worker safety training,
housing (including permanent housing), supportive services,
school dropout prevention activities, followup services for
those individuals placed in employment, self-employment and
related business or micro-enterprise development or education
as needed by eligible individuals and as identified pursuant to
the plan required by subsection (c), customized career and
technical education in occupations that will lead to higher
wages, enhanced benefits, and long-term employment in
agriculture or another area, and technical assistance to
improve coordination of services and implement best practices
relating to service delivery through one-stop delivery
systems.'';
(5) in subsection (f), by striking ``take into account the
economic circumstances and demographics of eligible migrant and
seasonal farmworkers.'' and inserting ``are adjusted based on
the economic and demographic barriers to employment of eligible
migrant and seasonal farmworkers.'';
(6) in subsection (g), by striking ``(enacted by the Single
Audit Act of 1984)'';
(7) in subsection (h)--
(A) by striking paragraph (1) and inserting the
following:
``(1) Dependent.--The term `dependent', used with respect
to an eligible migrant or seasonal farmworker, means an
individual who--
``(A) was claimed as a dependent on the
farmworker's Federal income tax return for the previous
year;
``(B) is the spouse of the farmworker; or
``(C) is able to establish--
``(i) a relationship as the farmworker's--
``(I) biological or legally adopted
child, grandchild, or great-grandchild;
``(II) foster child;
``(III) stepchild;
``(IV) brother, sister, half-
brother, half-sister, stepbrother, or
stepsister;
``(V) parent, grandparent, or other
direct ancestor (but not foster
parent);
``(VI) stepfather or stepmother;
``(VII) uncle or aunt;
``(VIII) niece or nephew; or
``(IX) father-in-law, mother-in-
law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law; and
``(ii) the receipt of over half of the
individual's total support from the
farmworker's family during the eligibility
determination period for the farmworker.''; and
(B) in paragraph (4)(A)--
(i) by striking ``disadvantaged person''
and inserting ``low-income individual''; and
(ii) by inserting ``and who faces multiple
barriers to self-sufficiency'' before the
semicolon;
(8) by redesignating subsection (h) as subsection (i); and
(9) by inserting before subsection (i) the following:
``(h) Funding Allocation.--From the funds appropriated and made
available to carry out this section, the Secretary shall reserve not
more than 1 percent for discretionary purposes, such as providing
technical assistance to eligible entities.''

SEC. 143. VETERANS' WORKFORCE INVESTMENT PROGRAMS.

Section 168(a)(3) (29 U.S.C. 2913(a)(3)) is amended--
(1) in subparagraph (A), by inserting ``, including
services provided by one-stop operators and one-stop partners''
before the semicolon; and
(2) in subparagraph (C), by striking ``section 134(c)'' and
inserting ``section 121(e)''.

SEC. 144. YOUTH CHALLENGE GRANTS.

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(b)(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 competitive 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 subsection to assist eligible youth in acquiring the
skills, credentials, and employment experience necessary to
achieve the performance outcomes for youth described in section
136.
``(2) Eligible entity.--In this subsection, the term
`eligible entity' means--
``(A) a State or consortium of States;
``(B) a local board or consortium of local boards;
``(C) a recipient of a grant under section 166
(relating to Native American programs); or
``(D) a public or private entity (including a
consortium of such entities) with expertise in the
provision of youth activities, applying in partnership
with a local board or consortium of local boards.
``(3) 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 provision
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 State, local, and
private resources that will be leveraged to provide the
activities described under subparagraph (A) in addition
to funds provided under this subsection, and a
description of the extent of the involvement of
employers in the activities;
``(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); and
``(E) except in the case of an application
submitted by an eligible entity described in paragraph
(2)(C)--
``(i) an assurance that the State board of
each State in which the proposed activities are
to be carried out had the opportunity to review
the application; and
``(ii) the comments, if any, of the
affected State boards on the application.
``(4) 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 129.
``(B) Equitable geographic distribution.--In
awarding grants under this subsection the Secretary
shall ensure an equitable distribution of such grants
across geographically diverse areas.
``(5) Use of funds.--
``(A) In general.--An eligible entity that receives
a grant under this subsection shall use the grant funds
to carry out activities that are designed to assist
eligible 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.
``(B) Activities.--The activities carried out
pursuant to subparagraph (A) may include the following:
``(i) Training and internships for out-of-
school youth in sectors of the economy
experiencing, or projected to experience, high
growth.
``(ii) Dropout prevention activities for
in-school youth.
``(iii) Activities designed to assist
special youth populations, such as court-
involved youth and youth with disabilities.
``(iv) Activities combining remediation of
academic skills, work readiness training, and
work experience, and including linkages to
postsecondary education, apprenticeships, and
career-ladder employment.
``(v) Activities, including work
experience, paid internships, and
entrepreneurial training, in areas where there
is a migration of youth out of the areas.
``(C) Participant eligibility.--Youth who are 14
years of age through 21 years of age, as of the time
the eligibility determination is made, may be eligible
to participate in activities carried out under this
subsection.
``(6) Grant period.--The Secretary shall make a grant under
this subsection for a period of 2 years and may renew the
grant, if the eligible entity has performed successfully, for a
period of not more than 3 succeeding years.
``(7) Matching funds required.--The Secretary shall require
that an eligible entity that receives a grant under this
subsection provide non-Federal matching funds in an amount to
be determined by the Secretary that is not less than 10 percent
of the cost of activities carried out under the grant. The
Secretary may require that such non-Federal matching funds be
provided in cash resources, noncash resources, or a combination
of cash and noncash resources.
``(8) Evaluation.--The Secretary shall reserve not more
than 3 percent of the funds described in subsection (a)(1) to
provide technical assistance to, and conduct evaluations of
(using appropriate techniques as described in section 172(c)),
the projects funded under this subsection.
``(c) Competitive First Jobs for Youth.--
``(1) Eligible entity.--In this subsection, the term
`eligible entity' means a consortium that--
``(A) shall include--
``(i)(I) a State board; or
``(II) a local board; and
``(ii) a consortium of businesses,
including small businesses;
``(B) may include 1 or more--
``(i) local educational agencies;
``(ii) institutions of higher education;
``(iii) business intermediaries;
``(iv) community-based organizations; or
``(v) entities carrying 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.); and
``(C) submits an application under paragraph (3).
``(2) Authorization.--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, entering, and retaining employment.
``(3) Applications.--To be eligible to receive a grant
under this subsection, an entity shall submit an application to
the Secretary at such time, in such manner, and containing such
information as the Secretary may require, including--
``(A) a description of the area to be served,
including information demonstrating that the area has--
``(i) high unemployment among individuals
ages 16 through 21;
``(ii) high unemployment among youth who
are individuals with disabilities; or
``(iii) high job loss;
``(B) a description of the proposed program,
including activities, compensation, and expected
outcomes;
``(C) an assurance that the participating employers
in the proposed program are located in the area to be
served, and a demonstration of the commitment of the
participating employers to hire individuals who--
``(i) have successfully completed the
program; or
``(ii) continue to work in the program;
``(D) demographic information about the targeted
populations to be served by the proposed program,
including information on gender, age, and race;
``(E) a description of how the proposed program
will address the barriers to employment of the targeted
populations;
``(F) a description of the manner in which the
eligible entity will evaluate the program; and
``(G) a description of the ability of the eligible
entity to carry out and expand the program after the
expiration of the grant period.
``(4) Equitable distribution to rural areas.--In awarding
grants under this subsection, the Secretary shall ensure an
equitable distribution of such grants to rural areas.
``(5) Use of funds.--
``(A) In general.--An eligible entity that receives
a grant under this subsection shall use the grant funds
to carry out--
``(i) activities that will assist youth in
preparing for, entering, and retaining
employment, including the activities described
in section 129 for out-of-school youth (as
defined in section 129(a));
``(ii) activities designed to strengthen
academic skills that would assist--
``(I) in-school youth (as so
defined) to be successful in secondary
school and continue such participants'
education; and
``(II) out-of-school youth (as so
defined) to earn a high school diploma
or its recognized equivalent, or
prepare for postsecondary programs;
``(iii) activities designed to assist youth
in economically distressed areas;
``(iv) subsidized employment for not more
than 9 months that provides direct experience
in a sector that has opportunities for full-
time employment;
``(v) career and academic advisement,
activities to promote financial literacy and
the attainment of entrepreneurial skills, and
provision of labor market information on high-
skill, high-wage, and nontraditional
occupations; and
``(vi) such other activities as the
Secretary determines are appropriate to ensure
that youth entering the workforce have the
skills needed by employers.
``(B) Participant eligibility.--An individual who
is not younger than 16 years of age and not older than
21 years of age, as of the time the eligibility
determination is made, who faces barriers to
employment, including an individual who is an
individual with a disability, may be eligible to
participate in activities under this subsection.
``(6) Special rule.--An eligible entity that receives a
grant under this subsection shall coordinate activities with
the designated State agency (as defined in section 7 of the
Rehabilitation Act of 1973 (29 U.S.C. 705)) and other
appropriate State agencies in the State to be served.
``(7) Matching funds required.--The Secretary shall require
that an eligible entity that receives a grant under this
subsection provide non-Federal matching funds in an amount to
be determined by the Secretary that is not less than 10 percent
of the cost of activities carried out with assistance provided
under the grant. The Secretary may require that such non-
Federal matching funds be provided in cash resources, noncash
resources, or a combination of cash and noncash resources.
``(8) Evaluations.--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. 145. TECHNICAL ASSISTANCE.

Section 170 (29 U.S.C. 2915) is amended--
(1) in subsection (a)(1), by--
(A) inserting ``the training of staff providing
rapid response services, the training of other staff of
recipients of funds under this title, the training of
members of State boards and local boards, peer review
activities under this title,'' after ``localities,'';
and
(B) striking ``from carrying out activities'' and
all that follows through the period and inserting ``to
implement the amendments made by the Workforce
Investment Act Amendments of 2005.'';
(2) in subsection (a)(2), by adding at the end the
following: ``The Secretary shall also hire staff qualified to
provide the assistance described in paragraph (1).'';
(3) in subsection (b)(2), by striking the last sentence and
inserting ``Such projects shall be administered by the
Employment and Training Administration.''; and
(4) by adding at the end the following:
``(c) 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. 146. DEMONSTRATION, PILOT, MULTISERVICE, RESEARCH, AND MULTISTATE
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 redesignating subparagraphs (F) through (H)
as subparagraphs (H) through (J), respectively;
(C) by striking subparagraphs (A) through (E) and
inserting the following:
``(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 for career
ladder jobs 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 maximum effectiveness 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 and jobs with wages leading to self-
sufficiency;
``(D) projects that focus on collaborations among
local boards, institutions of higher education, medical
facilities, and other community stakeholders, to
promote opportunities for dislocated workers to receive
training and related services for employment in the
high-demand health care sector;
``(E) projects that focus on career ladder
advancement for nursing care providers, including
faculty education and distance learning programs;
``(F) computerized, individualized, self-paced
training projects targeted to dislocated,
disadvantaged, or incumbent workers utilizing equipment
and curriculum designed in partnership with industries
for employment in the operations, repair, and
maintenance of high-tech equipment that is used in
integrated systems technology;
``(G) projects carried out by States and local
areas to test innovative approaches to delivering
employment-related services;'';
(D) in subparagraph (I) (as redesignated by
subparagraph (B)), by striking ``and'' after the
semicolon; and
(E) by striking subparagraph (J) (as redesignated
by subparagraph (B)), and inserting the following:
``(J) projects that provide retention grants, which
shall--
``(i) be made to qualified job training
programs offering instruction, assessment, or
professional coaching, upon placement of a low-
income individual trained by the program
involved in employment with an employer and
retention of the low-income individual in that
employment with that employer for a period of 1
year, if that employment provides the low-
income individual with an annual salary--
``(I) that is at least $10,000 more
than the individual's federally
adjusted income for the previous year;
and
``(II) that is not less than twice
the poverty line applicable to the
individual; and
``(ii) be made taking into account the
economic benefit received by the Federal
Government from the employment and retention of
the individual, including the economic benefit
from tax revenue and decreased public
subsidies;
``(K) targeted innovation projects that improve
access to and delivery of employment and training
services, with emphasis given to projects that
incorporate advanced technologies to facilitate the
connection of individuals to the information and tools
the individuals need to upgrade skills;
``(L) projects that promote the use of distance
learning, enabling students to take courses through the
use of media technology such as videos,
teleconferencing computers, and the Internet; and
``(M) projects that provide comprehensive education
and training services, and support services, in
coordination with local boards, for populations in
targeted high poverty areas where the greatest barriers
to employment exist, including ex-offenders, out-of-
school youth, and public assistance recipient
populations.''; 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) Studies and reports.--
``(i) Net impact studies and reports.--
``(I) In general.--The Secretary,
in coordination with the Secretary of
Education, shall conduct studies to
determine the net impacts of, including
best practices of, programs, services,
and activities carried out under this
title.
``(II) Reports.--The Secretary
shall prepare and disseminate to the
public reports containing the results
of the studies conducted under
subclause (I).
``(ii) Study on resources available to
assist out-of-school youth.--The Secretary, in
coordination with the Secretary of Education,
may conduct a study examining the resources
available at the Federal, State, and local
levels to assist out-of-school youth in
obtaining the skills, credentials, and work
experience necessary to become successfully
employed, including the availability of funds
provided through average daily attendance and
other methodologies used by States and local
areas to distribute funds.
``(iii) Study of industry-based
certification and credentials.--
``(I) In general.--The Secretary
shall conduct a study concerning the
role and benefits of credentialing and
certification to businesses and workers
in the economy and the implications of
certification to the services provided
through the workforce investment
system. The study may examine issues
such as--
``(aa) the characteristics
of successful credentialing and
certification systems that
serve business and individual
needs;
``(bb) the relative
proportions of certificates and
credentials attained with
assistance from the public
sector, with private-sector
training of new hires or
incumbent workers, and by
individuals on their own
initiative without other
assistance, respectively;
``(cc) the return on human
capital investments from
occupational credentials and
industry-based skill
certifications, including the
extent to which acquisition of
such credentials or
certificates enhances outcomes
such as entry into employment,
retention, earnings (including
the number and amount of wage
increases), career advancement,
and layoff aversion;
``(dd) the implications of
the effects of skill
certifications and credentials
to the types and delivery of
services provided through the
workforce investment system;
``(ee) the role that
Federal and State governments
play in fostering the
development of and
disseminating credentials and
skill standards; and
``(ff) the use of
credentials by businesses to
achieve goals for workforce
skill upgrading and greater
operating efficiency.
``(II) Report to congress.--The
Secretary shall prepare and submit to
Congress a report containing the
results of the study conducted pursuant
to subclause (I). Such report may
include any recommendations that the
Secretary determines are appropriate to
include in such report relating to
promoting the acquisition of industry-
based certification and credentials,
and the appropriate role of the
Department of Labor and the workforce
investment system in supporting the
needs of business and individuals with
respect to such certification and
credentials.
``(iv) Study of effectiveness of workforce
investment system in meeting business needs.--
``(I) In general.--Using funds
available to carry out this section
jointly with funds available to the
Secretary of Commerce and Administrator
of the Small Business Administration,
the Secretary, in coordination with the
Secretary of Commerce and the
Administrator of the Small Business
Administration, may conduct a study of
the effectiveness of the workforce
investment system in meeting the needs
of business, with particular attention
to the needs of small business,
including in assisting workers to
obtain the skills needed to utilize
emerging technologies. In conducting
the study, the Secretary, in
coordination with the Secretary of
Commerce and the Administrator of the
Small Business Administration, may
examine issues such as--
``(aa) methods for
identifying the workforce needs
of businesses and how the
requirements of small
businesses may differ from
larger establishments;
``(bb) business
satisfaction with the workforce
investment system, with
particular emphasis on the
satisfaction of small
businesses;
``(cc) the extent to which
business is engaged as a
collaborative partner in the
workforce investment system,
including the extent of
business involvement as members
of State boards and local
boards, and the extent to which
such boards and one-stop
centers effectively collaborate
with business and industry
leaders in developing workforce
investment strategies,
including strategies to
identify high growth
opportunities;
``(dd) ways in which the
workforce investment system
addresses changing skill needs
of business that result from
changes in technology and work
processes;
``(ee) promising practices
for serving small businesses;
``(ff) the extent and
manner in which the workforce
investment system uses
technology to serve business
and individual needs, and how
uses of technology could
enhance efficiency and
effectiveness in providing
services; and
``(gg) the extent to which
various segments of the labor
force have access to and
utilize technology to locate
job openings and apply for
jobs, and characteristics of
individuals utilizing such
technology (such as age,
gender, race or ethnicity,
industry sector, and
occupational groups).
``(II) Report to congress.--The
Secretary shall prepare and submit to
Congress a report containing the
results of the study described in
subclause (I). Such report may include
any recommendations the Secretary
determines are appropriate to include
in such report, including ways to
enhance the effectiveness of the
workforce investment system in meeting
the needs of business for skilled
workers.''.
(c) Administration.--Section 171(d) (29 U.S.C. 2916(d)) is amended
by striking the last sentence and inserting the following: ``Such
projects shall be administered by the Employment and Training
Administration.''.
(d) Next Generation Technologies.--Section 171 (29 U.S.C. 2916) is
amended by adding at the end the following:
``(e) Skill Certification Pilot Projects.--
``(1) Pilot projects.--In accordance with subsection (b)
and from funds appropriated pursuant to paragraph (10), the
Secretary shall establish and carry out not more than 10 pilot
projects to establish a system of industry-validated national
certifications of skills, including--
``(A) not more than 8 national certifications of
skills in high-technology and high-growth industries,
including biotechnology, telecommunications, highly
automated manufacturing (including semiconductors),
nanotechnology, energy technology, and nursing; and
``(B) not more than 2 cross-disciplinary national
certifications of skills in homeland security
technology.
``(2) Grants to eligible entities.--In carrying out the
pilot projects, the Secretary shall make grants to eligible
entities, for periods of not less than 36 months and not more
than 48 months, to carry out the authorized activities
described in paragraph (7) with respect to the certifications
described in paragraph (1). In awarding grants under this
subsection the Secretary shall take into consideration awarding
grants to eligible entities from diverse geographic areas,
including rural areas.
``(3) Eligible entities.--
``(A) Definition of eligible entity.--In this
subsection the term `eligible entity' means an entity
that shall work in conjunction with a local board and
shall include as a principal participant 1 or more of
the following:
``(i) An educational institution, including
a 2- or 4-year college, or a technical or
vocational school.
``(ii) An advanced technology education
center.
``(iii) A local board.
``(iv) A representative of a business in a
target industry for the certification involved.
``(v) A representative of an industry
association, labor organization, or community
development organization.
``(B) History of demonstrated capability
required.--To be eligible to receive a grant under this
subsection, an eligible entity shall have a history of
demonstrated capability for effective collaboration
with industry on workforce investment activities that
is consistent with the objectives of this title.
``(4) 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.
``(5) Criteria.--The Secretary shall establish criteria,
consistent with paragraph (6), for awarding grants under this
subsection.
``(6) Priority.--In selecting eligible entities to receive
grants under this subsection, the Secretary shall give priority
to eligible entities that demonstrate the availability of and
ability to provide matching funds from industry or nonprofit
sources. Such matching funds may be provided in cash or in
kind.
``(7) Authorized activities.--
``(A) In general.--An eligible entity that receives
a grant under this subsection shall use the funds made
available through the grant--
``(i) to facilitate the establishment of
certification requirements for a certification
described in paragraph (1) for an industry;
``(ii) to develop and initiate a
certification program that includes preparatory
courses, course materials, procedures, and
examinations, for the certification; and
``(iii) to collect and analyze data related
to the program at the program's completion, and
to identify best practices (consistent with
paragraph (8)) that may be used by State and
local workforce investment boards in the
future.
``(B) Basis for requirements.--The certification
requirements established under the grant shall be based
on applicable skill standards for the industry involved
that have been developed by or linked to national
centers of excellence under the National Science
Foundation's Advanced Technological Education Program.
The requirements shall require an individual to
demonstrate an identifiable set of competencies
relevant to the industry in order to receive
certification. The requirements shall be designed to
provide evidence of a transferable skill set that
allows flexibility and mobility of workers within a
high technology industry.
``(C) Relationship to training and education
programs.--The eligible entity shall ensure that--
``(i) a training and education program
related to competencies for the industry
involved, that is flexible in mode and
timeframe for delivery and that meets the needs
of those seeking the certification, is offered;
and
``(ii) the certification program is offered
at the completion of the training and education
program.
``(D) Relationship to the associate degree.--The
eligible entity shall ensure that the certification
program is consistent with the requirements for a 2-
year associate degree.
``(E) Availability.--The eligible entity shall
ensure that the certification program is open to
students pursuing associate degrees, employed workers,
and displaced workers.
``(8) Consultation.--The Secretary shall consult with the
Director of the National Science Foundation to ensure that the
pilot projects build on the expertise and information about
best practices gained through the implementation of the
National Science Foundation's Advanced Technological Education
Program.
``(9) Core components; guidelines; reports.--After
collecting and analyzing the data obtained from the pilot
programs, the Secretary shall--
``(A) establish the core components of a model
high-technology certification program;
``(B) establish guidelines to assure development of
a uniform set of standards and policies for such
programs;
``(C) prepare and submit a report on the pilot
projects to the Committee on Health, Education, Labor,
and Pensions of the Senate and the Committee on
Education and the Workforce of the House of
Representatives; and
``(D) make available to the public both the data
and the report.
``(10) Authorization of appropriations.--In addition to
amounts authorized to be appropriated under section 174(b),
there is authorized to be appropriated $30,000,000 for fiscal
year 2006 to carry out this subsection.''.
(e) Integrated Workforce Training Programs for Adults With Limited
English Proficiency.--Section 171 (29 U.S.C. 2916), as amended by
subsection (d), is further amended by adding at the end the following:
``(f) Integrated Workforce Training Programs for Adults With
Limited English Proficiency.--
``(1) Definitions.--In this subsection:
``(A) Integrated workforce training.--The term
`integrated workforce training' means training that
integrates occupational skills training with language
acquisition.
``(B) Secretary.--The term `Secretary' means the
Secretary of Labor in consultation with the Secretary
of Education.
``(2) Demonstration project.--In accordance with subsection
(b) and from funds appropriated pursuant to paragraph (11), the
Secretary shall establish and implement a national
demonstration project designed to both analyze and provide data
on workforce training programs that integrate English language
acquisition and occupational training.
``(3) Grants.--
``(A) In general.--In carrying out the
demonstration project, the Secretary shall make not
less than 10 grants, on a competitive basis, to
eligible entities to provide the integrated workforce
training programs. In awarding grants under this
subsection the Secretary shall take into consideration
awarding grants to eligible entities from diverse
geographic areas, including rural areas.
``(B) Periods.--The Secretary shall make the grants
for periods of not less than 24 months and not more
than 48 months.
``(4) Eligible entities.--
``(A) In general.--To be eligible to receive a
grant under this subsection, an eligible entity shall
work in conjunction with a local board and shall
include as a principal participant 1 or more of the
following:
``(i) An employer or employer association.
``(ii) A nonprofit provider of English
language instruction.
``(iii) A provider of occupational or
skills training.
``(iv) A community-based organization.
``(v) An educational institution, including
a 2- or 4-year college, or a technical or
vocational school.
``(vi) A labor organization.
``(vii) A local board.
``(B) Expertise.--To be eligible to receive a grant
under this subsection, an eligible entity shall have
proven expertise in--
``(i) serving individuals with limited
English proficiency, including individuals with
lower levels of oral and written English; and
``(ii) providing workforce programs with
training and English language instruction.
``(5) Applications.--
``(A) In general.--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.
``(B) Contents.--Each application submitted under
subparagraph (A) shall--
``(i) contain information, including
capability statements, that demonstrates that
the eligible entity has the expertise described
in paragraph (4)(B); and
``(ii) include an assurance that the
program to be assisted shall--
``(I) establish a generalized adult
bilingual workforce training and
education model that integrates English
language acquisition and occupational
training, and incorporates the unique
linguistic and cultural factors of the
participants;
``(II) establish a framework by
which the employer, employee, and other
relevant members of the eligible entity
can create a career development and
training plan that assists both the
employer and the employee to meet their
long-term needs;
``(III) ensure that the framework
established under subclause (II) takes
into consideration the knowledge,
skills, and abilities of the employee
with respect to both the current and
economic conditions of the employer and
future labor market conditions relevant
to the local area; and
``(IV) establish identifiable
measures so that the progress of the
employee and employer and the relative
efficacy of the program can be
evaluated and best practices
identified.
``(6) Criteria.--The Secretary shall establish criteria for
awarding grants under this subsection.
``(7) Integrated workforce training programs.--
``(A) Program components.--
``(i) Required components.--Each program
that receives funding under this subsection
shall--
``(I) test an individual's English
language proficiency levels to assess
oral and literacy gains from the
beginning and throughout program
enrollment;
``(II) combine training specific to
a particular occupation or occupational
cluster, with--
``(aa) English language
instruction, such as
instruction through an English
as a Second Language program,
or an English for Speakers of
Other Languages program;
``(bb) basic skills
instruction; and
``(cc) supportive services;
``(III) effectively integrate
public and private sector entities,
including the local workforce
investment system and its functions, to
achieve the goals of the program; and
``(IV) require matching or in-kind
resources from private and nonprofit
entities.
``(ii) Permissible components.--The program
may offer other services, as necessary to
promote successful participation and
completion, including work-based learning,
substance abuse treatment, and mental health
services.
``(B) Goal.--Each program that receives funding
under this subsection shall be designed to prepare
limited English proficient adults for, and place such
adults in employment in, growing industries with
identifiable career ladder paths.
``(C) Program types.--In selecting programs to
receive funding under this subsection, the Secretary
shall select programs that meet 1 or more of the
following criteria:
``(i) A program--
``(I) that serves unemployed,
limited English proficient individuals
with significant work experience or
substantial education but persistently
low wages;
``(II) that aims to prepare such
individuals for, and place such
individuals in, higher paying
employment, defined for purposes of
this subparagraph as employment that
provides at least 75 percent of the
median wage in the local area; and
``(III) with funding that includes
funds from private and nonprofit
entities.
``(ii) A program--
``(I) that serves limited English
proficient individuals with lower
levels of oral and written fluency, who
are working but at persistently low
wages;
``(II) that aims to prepare such
individuals for, and place such
individuals in, higher paying
employment, through services provided
at the worksite, or at a location
central to several work sites, during
work hours; and
``(III) with funding that includes
funds from private and nonprofit
entities.
``(iii) A program--
``(I) that serves unemployed,
limited English proficient individuals
with lower levels of oral and written
fluency, who have little or no work
experience;
``(II) that aims to prepare such
individuals for, and place such
individuals in, employment through
services that include subsidized
employment, in addition to the
components required in subparagraph
(A)(i); and
``(III) with funding that includes
funds from private and nonprofit
entities.
``(D) Program approaches.--In selecting programs to
receive funding under this subsection, the Secretary
shall select programs with different approaches to
integrated workforce training, in different contexts,
in order to obtain comparative data on multiple
approaches to integrated workforce training and English
language instruction, to ensure programs are tailored
to characteristics of individuals with varying skill
levels, and to assess how different curricula work for
limited English proficient populations. Such approaches
may include--
``(i) bilingual programs in which the
workplace language component and the training
are conducted in a combination of an
individual's native language and English;
``(ii) integrated workforce training
programs that combine basic skills, language
instruction, and job specific skills training;
or
``(iii) sequential programs that provide a
progression of skills, language, and training
to ensure success upon an individual's
completion of the program.
``(8) Evaluation by eligible entity.--Each eligible entity
that receives a grant under this subsection for a program shall
carry out a continuous program evaluation and an evaluation
specific to the last phase of the program operations.
``(9) Evaluation by secretary.--
``(A) In general.--The Secretary shall conduct an
evaluation of program impacts of the programs funded
under the demonstration project, using an impact study
with a random assignment experimental design at each
worksite at which such a program is carried out.
``(B) Data collection and analysis.--The Secretary
shall collect and analyze the data from the
demonstration project to determine program
effectiveness, including gains in language proficiency,
acquisition of skills, and job advancement for program
participants.
``(C) Report.--The Secretary shall prepare and
submit to the Committee on Health, Education, Labor,
and Pensions of the Senate and the Committee on
Education and the Workforce of the House of
Representatives, and make available to the public, a
report on the demonstration project, including the
results of the evaluation.
``(10) Technical assistance.--The Secretary shall provide
technical assistance to recipients of grants under this
subsection throughout the grant periods.
``(11) Authorization of appropriations.--In addition to
amounts authorized to be appropriated under section 174(b),
there is authorized to be appropriated $10,000,000 for fiscal
year 2006 to carry out this subsection.''.
(f) Community-Based Job Training.--Section 171 (29 U.S.C. 2916), as
amended by subsection (e), is further amended by adding at the end the
following:
``(g) Community-Based Job Training.--
``(1) Definitions.--In this subsection:
``(A) Community college.--The term `community
college' means--
``(i) an institution of higher education,
as defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001), that
provides a 2-year degree that is acceptable for
full credit toward a bachelor's degree; or
``(ii) a tribally controlled college or
university, as defined in section 2 of the
Tribally Controlled College or University
Assistance Act of 1978 (25 U.S.C. 1801).
``(B) Eligible entity.--The term `eligible entity'
means a community college, a consortium of community
colleges, or a consortium composed of a community
college and 1 or more institutions of higher education,
that shall work with--
``(i) a local board;
``(ii) a business in the qualified industry
or an industry association in the qualified
industry, as identified in the application of
the entity; and
``(iii) an economic development entity.
``(C) Institution of higher education.--Except as
otherwise provided in subparagraph (A)(i), the term
`institution of higher education' has the meaning given
the term in section 101 of the Higher Education Act of
1965 (20 U.S.C. 1001) and the meaning given the term
`postsecondary vocational institution' in section
102(a)(1)(B) of such Act (20 U.S.C. 1002(a)(1)(B)).
``(D) Qualified industry.--The term `qualified
industry' means an industry or economic sector that is
projected to experience significant growth, such as an
industry or economic sector that--
``(i) is projected to add substantial
numbers of new jobs to the regional economy;
``(ii) has or is projected to have
significant impact on the regional economy;
``(iii) impacts or is projected to impact
the growth of other industries or economic
sectors in the regional economy;
``(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) requires high skills and has
significant labor shortages in the regional
economy.
``(2) Demonstration project.--In addition to the
demonstration projects authorized under subsection (b), the
Secretary may establish and implement a national demonstration
project designed--
``(A) to develop local innovative solutions to the
workforce challenges facing high-growth, high-skill
industries with labor shortages; and
``(B) to increase employment opportunities for
workers in high-growth, high-demand occupations by
establishing partnerships among education entities, the
State workforce investment systems, and businesses in
high-growth, high-skill industries or sectors.
``(3) Grants.--In carrying out the national demonstration
project authorized under this subsection, the Secretary shall
award grants, on a competitive basis, for 2, 3, or 4 years, in
accordance with generally applicable Federal requirements, to
eligible entities to enable the eligible entities to carry out
activities authorized under this subsection.
``(4) 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) a justification of the need for discretionary
funding under the grant, including the need for
external funds to create a program to carry out the
activities described in paragraph (6);
``(C) an economic analysis of the local labor
market to identify--
``(i) high-growth, high-demand industries;
``(ii) the workforce issues faced by such
industries; and
``(iii) potential participants in programs
funded under this subsection;
``(D) a description of the qualified industry for
which the training will occur, the availability of
competencies on which the training will be based, and
how the grant will help workers acquire the
competencies and skills necessary for employment;
``(E) a description of the involvement of the local
board and businesses, including small businesses, in
the geographic area where the proposed grant will be
implemented;
``(F) performance measures for the grant, including
performance measures for the expected number of
individuals to be trained in a qualified industry, the
employment and retention rates for such individuals in
a qualified industry, and initial earnings and earnings
increases for such individuals;
``(G) a description of how the activities funded by
the grant will be coordinated with activities provided
through the one-stop center in the local area; and
``(H) a description of the local or private
resources that will--
``(i) support the activities carried out
under this subsection; and
``(ii) enable the entity to carry out and
expand such activities after the expiration of
the grant.
``(5) 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 qualified industries, the eligible
entity, and the public workforce investment
system;
``(ii) the extent to which the grant will
provide job seekers with high-quality training
for employment in high-growth, high-demand
occupations;
``(iii) the extent to which the grant will
expand the eligible entity and local one-stop
center's capacity to be demand-driven and
responsive to local economic needs;
``(iv) the extent to which local businesses
commit to hire, retain, or advance 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 skill standards, assessments,
or industry-recognized training curricula,
available for dissemination 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 will be made available to support the
activities carried out under this subsection,
taking into account the resources of the
eligible entity and the entity's partners; 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 diverse
industries and geographic areas.
``(6) Use of funds.--An eligible entity that receives a
grant under this subsection--
``(A) shall use the grant funds for--
``(i) the development by the community
college that is a part of the eligible entity
in collaboration with other partners identified
in the application, and, if applicable, other
representatives of qualified industries, of
rigorous training and education programs
leading to an industry-recognized credential or
degree and employment in the qualified
industry; and
``(ii) training of adults, incumbent
workers, dislocated workers, or out-of-school
youth in the skills and competencies needed to
obtain or upgrade employment in a qualified
industry identified in the eligible entity's
application; and
``(B) may use the grant funds for--
``(i) disseminating information on training
available for high-growth, high-demand
occupations in qualified industries through the
one-stop delivery system to prospective
participants, businesses, business
intermediaries, and community-based
organizations in the region, including training
available through the grant;
``(ii) referring individuals trained under
the grant for employment in qualified
industries;
``(iii) enhancing integration of community
colleges, training and education with
businesses, and the one-stop system to meet the
training needs of qualified industries for new
and incumbent workers;
``(iv) providing training and relevant job
skills to small business owners or operators to
facilitate small business development in high-
growth, high-skill industries; or
``(v) expanding or creating programs for
distance, evening, weekend, modular, or
compressed learning opportunities that provide
training and relevant job skills for high-
growth, high-demand occupations.
``(7) 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.
``(8) Performance accountability and evaluation.--
``(A) Performance accountability.--The Secretary
shall require an eligible entity that receives a grant
under this subsection to submit an interim and final
report to the Secretary on the impact on business
partners and employment outcomes obtained by
individuals receiving training under this subsection
using the performance measures identified in the
eligible entity's grant application.
``(B) Evaluation.--The Secretary shall 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. 147. NATIONAL DISLOCATED WORKER GRANTS.

(a) In General.--Section 173 (29 U.S.C. 2918) is amended--
(1) by striking the heading and inserting the following:

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

and
(2) in subsection (a)--
(A) by redesignating paragraphs (1) through (3) as
subparagraphs (A) through (C), respectively, and
aligning the margins of the subparagraphs with the
margins of subparagraph (A) of paragraph (4);
(B) by striking paragraph (4);
(C) by striking the matter preceding paragraph (1)
and inserting the following:
``(a) In General.--
``(1) Grants.--The Secretary is authorized to award
national dislocated worker grants--'';
(D) in paragraph (1)(A), by striking ``subsection
(c)'' and inserting ``subsection (b)'';
(E) in paragraph (1)(C), by striking ``and'' after
the semicolon; and
(F) by adding at the end the following:
``(D) to a State or entity (as defined in
subsection (b)(1)(B)) to carry out subsection (e),
including providing assistance to eligible individuals;
``(E) to a State or entity (as defined in
subsection (b)(1)(B)) to carry out subsection (f),
including providing assistance to eligible individuals;
``(F) to provide additional assistance to a State
board or local board where a higher than average demand
for employment and training activities for dislocated
members of the Armed Forces, or spouses, as described
in section 101(11)(E), of members of the Armed Forces,
described in subsection (b)(2)(A)(iv), exceeds State
and local resources for providing such services, and
where such programs are to be carried out in
partnership with the Department of Defense and
Department of Veterans Affairs transition assistance
programs; and
``(G) to provide assistance to a State for
statewide or local use in order to--
``(i) address cases in which there have
been worker dislocations across multiple
sectors, across multiple businesses within a
sector, or across multiple local areas, and
such workers remain dislocated;
``(ii) meet emerging economic development
needs; and
``(iii) train eligible individuals who are
dislocated workers described in clause (i).
``(2) Decisions and obligations.--The Secretary shall issue
a final decision on an application for a national dislocated
worker grant under this subsection not later than 45 calendar
days after receipt of the application. The Secretary shall
issue a notice of obligation for such a grant not later than 10
days after the award of the grant.''.
(b) Administration and Additional Assistance.--Section 173 (29
U.S.C. 2918) is amended--
(1) by striking subsection (b);
(2) by redesignating subsections (c) through (g) as
subsections (b) through (f), respectively;
(3) in subsection (b) (as redesignated by paragraph (2))--
(A) in paragraph (1)(A), by striking ``subsection
(a)(1)'' and inserting ``subsection (a)(1)(A)''; and
(B) in paragraph (2)--
(i) in subparagraph (A), in the matter
preceding clause (i), by striking ``national
emergency grant awarded pursuant to subsection
(a)(1)'' and inserting ``national dislocated
worker grant awarded pursuant to subsection
(a)(1)(A)''; and
(ii) in subparagraph (C), by striking
``national emergency grants'' and inserting
``national dislocated worker grants'';
(4) in paragraphs (1), (2), and (3) of subsection (c) (as
redesignated by paragraph (3)), by striking ``subsection
(a)(2)'' and inserting ``subsection (a)(1)(B)'';
(5) by striking subsection (d) (as redesignated by
paragraph (2)) and inserting the following:
``(d) Additional Assistance.--
``(1) In general.--From the amount appropriated and made
available to carry out this section for any program year, the
Secretary shall use not more than $20,000,000 to make grants to
States to provide employment and training activities under
section 134, in accordance with subtitle B.
``(2) Eligible states.--The Secretary shall make a grant
under paragraph (1) to a State for a program year if--
``(A) the amount of the allotment that was made to
the State for the program year 2003 under the formula
specified in section 132(b)(1)(B) as such section was
in effect on July 1, 2003, is greater than
``(B) the amount of the allotment that would be
made to the State for the program year under the
formula specified in section 132(b)(1)(B).
``(3) Amount of grants.--Subject to paragraph (1), the
amount of the grant made under paragraph (1) to a State for a
program year shall be based on the difference between--
``(A) the amount of the allotment that was made to
the State for the program year 2003 under the formula
specified in section 132(b)(1)(B) as such section was
in effect on July 1, 2003; and
``(B) the amount of the allotment that would be
made to the State for the program year under the
formula specified in section 132(b)(1)(B).'';
(5) in subsection (e) (as redesignated by paragraph (2))--
(A) in paragraph (1), by striking ``paragraph
(4)(A)'' and inserting ``paragraph (1)(D)'';
(B) in paragraph (2), by striking ``subsection
(g)'' and inserting ``subsection (f)'';
(C) in paragraph (3)(B), by striking ``subsection
(a)(4)(A)'' and inserting ``subsection (a)(1)(D)'';
(D) in paragraph (4), by striking ``subsection
(g)'' and inserting ``subsection (f)'';
(E) in paragraph (5), by striking ``subsection
(g)'' and inserting ``subsection (f)''; and
(F) in paragraph (6)--
(i) by striking ``subsection (g)'' and
inserting ``subsection (f)''; and
(ii) by striking ``subsection (c)(1)(B)''
and inserting ``subsection (b)(1)(B)''; and
(6) in subsection (f) (as redesignated by paragraph (2))--
(A) in paragraph (1)--
(i) by striking ``paragraph (4)(B)'' and
inserting ``paragraph (1)(E)''; and
(ii) by striking ``subsection (f)(1)(A)''
and inserting ``subsection (e)(1)(A)''; and
(B) in paragraph (4)(B), by striking ``subsection
(a)(4)(B)'' and inserting ``subsection (a)(1)(E)''.

SEC. 148. 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 ``2006 through
2011''.
(b) Reservations.--Section 174(b) (29 U.S.C. 2919(b)) is amended to
read as follows:
``(b) Technical Assistance; Demonstration and Pilot Projects,
Evaluations, Incentive Grants.--
``(1) In general.--Subject to paragraph (2), there are
authorized to be appropriated to carry out sections 170 through
172 and section 503 such sums as may be necessary for each of
fiscal years 2006 through 2011.
``(2) Reservation.--Of the amount appropriated pursuant to
the authorization of appropriations under paragraph (1) for a
fiscal year, the Secretary shall, for each of the fiscal years
2006 through 2011, reserve not less than 25 percent for
carrying out section 503.''.
(c) Assistance for Eligible Workers.--Section 174(c) (29 U.S.C.
2919(c)) is amended--
(1) in paragraphs (1)(A) and (2)(A), by striking
``subsection (a)(4)(A)'' and inserting ``subsection
(a)(1)(D)''; and
(2) in paragraphs (1)(B) and (2)(B), by striking
``subsection (a)(4)(B)'' and inserting ``subsection
(a)(1)(E)''.

Subtitle E--Administration

SEC. 151. REQUIREMENTS AND RESTRICTIONS.

Section 181(e) (29 U.S.C. 2931(e)) is amended by striking
``economic development activities,''.

SEC. 152. REPORTS.

Section 185(c) (29 U.S.C. 2935(c)) is amended--
(1) in paragraph (2), by striking ``and'' after the
semicolon;
(2) in paragraph (3), by striking the period and inserting
``; and''; and
(3) 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.''.

SEC. 153. ADMINISTRATIVE PROVISIONS.

(a) Annual Report.--Section 189(d) (29 U.S.C. 2939(d)) is amended--
(1) in paragraph (3), by striking ``and'' after the
semicolon;
(2) by redesignating paragraph (4) as paragraph (5); and
(3) by inserting after paragraph (3) the following:
``(4) the negotiated levels of performance of the States,
the States' requests for adjustments of such levels, and the
adjustments of such levels that are made; and''.
(b) Availability.--Section 189(g)(2) (29 U.S.C. 2939(g)(2)) is
amended, in the first sentence--
(1) by striking ``Funds'' and inserting ``Except as
otherwise provided in this paragraph, funds''; and
(2) by striking ``each State receiving'' and inserting
``each recipient of''.
(c) General Waivers.--Section 189(i)(4) (29 U.S.C. 2939(i)(4)) is
amended--
(1) in subparagraph (A)(i), by inserting ``the funding of
infrastructure costs for one-stop centers,'' after ``local
boards,'';
(2) in subparagraph (C), by striking ``90'' and inserting
``60''; and
(3) by adding at the end the following:
``(D) Expedited requests.--The Secretary shall
expedite requests for waivers of statutory or
regulatory requirements that have been approved for a
State pursuant to subparagraph (B), if the requirements
of this paragraph have been satisfied.
``(E) Special rule.--With respect to any State that
has a waiver under this paragraph relating to the
transfer authority under section 133(b)(4), and has the
waiver in effect on the date of enactment of the
Workforce Investment Act Amendments of 2005 or
subsequently receives such a waiver, the waiver shall
continue to apply for so long as the State meets or
exceeds State performance measures relating to the
indicators described in section 136(b)(2)(A)(i).''.

SEC. 154. USE OF CERTAIN REAL PROPERTY.

Section 193 (29 U.S.C. 2943) is amended to read as follows:

``SEC. 193. TRANSFER OF FEDERAL EQUITY IN STATE EMPLOYMENT SECURITY
AGENCY REAL PROPERTY TO THE STATES.

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

SEC. 155. GENERAL PROGRAM REQUIREMENTS.

Section 195 (29 U.S.C. 2945) is amended by adding at the end the
following:
``(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 (as
defined in 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 a one-stop service delivery system
described in section 121(e).''.

Subtitle F--Incentive Grants

SEC. 161. INCENTIVE GRANTS.

Section 503 (20 U.S.C. 9273) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) In General.--
``(1) Timeline.--
``(A) Prior to july 1, 2006.--Prior to July 1,
2006, the Secretary shall award a grant to each State
in accordance with the provisions of this section as
this section was in effect on July 1, 2003.
``(B) Beginning july 1, 2006.--Beginning on July 1,
2006, the Secretary shall award incentive grants to
States for performance described in paragraph (2), to
implement or enhance innovative and coordinated
programs as described in paragraph (3), consistent with
the statewide economic, workforce, and educational
interests of the State.
``(2) Basis.--The Secretary shall award the grants on the
basis that the States--
``(A) have exceeded the State performance measures
established under section 136(b), the performance
measures established under section 212(b) of the Adult
Education and Family Literacy Act (20 U.S.C. 9212(b)),
and the State performance measures established under
section 113(b) of the Carl D. Perkins Vocational and
Technical Education Act of 1998 (20 U.S.C. 2323(b)); or
``(B) have--
``(i) met the State performance measures
established under section 136(b), the
performance measures established under section
212(b) of the Adult Education and Family
Literacy Act, and the State performance
measures established under section 113(b) of
the Carl D. Perkins Vocational and Technical
Education Act of 1998; and
``(ii) demonstrated--
``(I) exemplary coordination of
one-stop partner programs described in
section 121 with statewide economic
development or business needs;
``(II) exemplary performance in the
one-stop partner programs in the State
in serving hard-to-serve populations;
or
``(III) effective--
``(aa) coordination of
multiple systems for the one-
stop partner programs into a
comprehensive workforce
investment system, including
coordination of employment
activities under the Wagner-
Peyser Act (29 U.S.C. 49 et
seq.) and core services under
section 134(d)(2);
``(bb) expansion of access
to training through the one-
stop partner programs,
including expansion of access
through increased leveraging of
resources other than those
provided through programs under
title I;
``(cc) implementation of
statewide coordination
activities relating to the one-
stop partner programs, through
agreements with relevant State
agencies and offices, including
those responsible for programs
under 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.);
``(dd) statewide
coordination relating to the
one-stop partner programs,
through arrangements with local
boards or local areas;
``(ee) alignment of
management information systems
to integrate participant
information across the one-stop
partner programs; or
``(ff) integration of
performance information systems
and common measures for
accountability across the one-
stop partner programs.
``(3) Use of funds.--The funds awarded to a State under
this section may be used to carry out activities authorized for
States in programs carried out under title I, the Adult
Education and Family Literacy Act, and the Carl D. Perkins
Vocational and Technical Education Act of 1998 (20 U.S.C. 2301
et seq.) (referred to in this subsection as `workforce and
education programs'), including demonstration projects, and
innovative projects or programs that increase coordination and
enhance service to participants in such programs, particularly
hard-to-serve populations, including--
``(A) activities that support business needs,
especially for incumbent workers and enhancing
opportunities for retention and advancement;
``(B) 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 Vocational and Technical Education Act of 1998
(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.);
``(C) activities that support statewide economic
development plans that support high-wage, high-skill,
or high-demand occupations leading to self-sufficiency;
``(D) activities that coordinate the workforce and
education programs with other Federal and State
programs related to the workforce and education
programs;
``(E) activities that support the development of a
statewide integrated performance information system
that includes common measures for one-stop partner
programs described in section 121;
``(F) activities that align management information
systems with integrated performance information across
the one-stop partner programs; or
``(G) activities that support local workforce
investment boards or areas in improving performance in
workforce and education programs and program
coordination of workforce and education programs.
``(4) Waiver.--For States that have developed and
implemented a statewide integrated performance information
system with common measures, as described in paragraph (3)(E),
for the one-stop partner programs, the Secretary may waive for
the State such reporting requirements for the one-stop partner
programs as the Secretary has authority or agreement to waive.
``(5) Technical assistance.--The Secretary shall reserve 4
percent of the funds available for grants under this section to
provide technical assistance to States--
``(A) to replicate best practices for workforce and
education programs;
``(B) to develop integrated performance information
systems for the one-stop partner programs;
``(C) to strengthen coordination between workforce
and education programs and other education programs; or
``(D) to strengthen economic development.
``(6) Definition.--As used in this subsection, the term
`hard-to-serve populations' has the meaning given the term in
section 101.'';
(2) in subsection (b)(2)--
(A) in the matter preceding subparagraph (A), by
striking ``only'' and all that follows through
``assurances:'' and inserting ``to ensure that the
application contains, and to determine the accuracy of,
the following assurances:''; and
(B) by striking subparagraph (C) and inserting the
following:
``(C) the State meets the requirements of
subparagraph (A) or (B) of subsection (a)(2).''; and
(3) by striking subsection (d).

Subtitle G--Conforming Amendments

SEC. 171. TABLE OF CONTENTS.

Section 1(b) (29 U.S.C. 9201 note) is amended--
(1) by striking the item relating to section 106 and
inserting the following:

``Sec. 106. Purposes.'';
(2) by striking the item relating to section 123 and
inserting the following:

``Sec. 123. Eligible providers of youth activities.'';
(3) by striking the item relating to section 169 and
inserting the following:

``Sec. 169. Youth challenge grants.'';
(4) by striking the item relating to section 173 and
inserting the following:

``Sec. 173. National dislocated worker grants.'';
(5) by striking the item relating to section 193 and
inserting the following:

``Sec. 193. Transfer of Federal equity in State employment security
agency real property to the States.'';
(6) by inserting after the item relating to section 243 the
following:

``Sec. 244. Integrated English literacy and civics education.'';
and
(7) by striking the item relating to section 502.

SEC. 172. CONFORMING AMENDMENTS.

(a) Trade Act of 1974.--Section 235 of the Trade Act of 1974 (19
U.S.C. 2295) is amended by striking ``section 134(c) of the Workforce
Investment Act of 1998 (29 U.S.C. 2864(c))'' and inserting ``section
121(e) of the Workforce Investment Act of 1998 (29 U.S.C. 2841(e))''.
(b) Adult Education and Family Literacy Act.--Section
212(b)(3)(A)(vi) of the Adult Education and Family Literacy Act (20
U.S.C. 9212(b)(3)(A)(vi)) is amended by striking ``the representatives
described in section 136(i)(1)'' and inserting ``representatives of
appropriate Federal agencies, and representatives of States and
political subdivisions, business and industry, employees, eligible
providers of employment and training activities (as defined in section
101), educators, and participants (as defined in section 101), with
expertise regarding workforce investment policies and workforce
investment activities (as defined in section 101)''.
(c) Older Americans Act of 1965.--
(1) Subparagraphs (H) and (O) of section 502(b)(1) of the
Older Americans Act of 1965 (42 U.S.C. 3056(b)(1)) are amended
by striking ``section 134(c) of the Workforce Investment Act of
1998 (29 U.S.C. 2864(c))'' and inserting ``section 121(e) of
the Workforce Investment Act of 1998 (29 U.S.C. 2841(e))''.
(2) Section 505(c)(1) of the Older Americans Act of 1965
(42 U.S.C. 3056c(c)(1)) is amended by striking ``section 134(c)
of such Act (29 U.S.C. 2864(c))'' and inserting ``section
121(e) of such Act (29 U.S.C. 2841(e))''.
(3) Section 512(a) of the Older Americans Act of 1965 (42
U.S.C. 3056j(a)) is amended--
(A) by striking ``(B)(vi)'' and inserting
``(B)(v)''; and
(B) by striking ``section 134(c) of such Act (29
U.S.C. 2864(c))'' and inserting ``section 121(e) of
such Act (29 U.S.C. 2841(e))''.

TITLE II--AMENDMENTS TO THE ADULT EDUCATION AND FAMILY LITERACY ACT

SEC. 201. SHORT TITLE; PURPOSE.

(a) Short Title.--This title may be cited as the ``Adult Education
and Family Literacy Act Amendments of 2005''.
(b) Purpose.--Section 202 of the Adult Education and Family
Literacy Act (20 U.S.C. 9201) is amended--
(1) in paragraph (2), by striking ``and'' after the
semicolon;
(2) in paragraph (3), by striking ``education.'' and
inserting ``education and in the transition to postsecondary
education; and''; and
(3) by adding at the end the following:
``(4) assist immigrants and other individuals with limited
English proficiency in improving their reading, writing,
speaking, and mathematics skills and acquiring an understanding
of the American free enterprise system, individual freedom, and
the responsibilities of citizenship.''.

SEC. 202. DEFINITIONS.

Section 203 of the Adult Education and Family Literacy Act (20
U.S.C. 9202) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by
striking ``services or instruction below the
postsecondary level'' and inserting ``academic
instruction and education services below the
postsecondary level that increase an individual's
ability to read, write, and speak in English and
perform mathematics''; and
(B) by striking subparagraph (C)(i) and inserting
the following:
``(i) are basic skills deficient as defined
in section 101;'';
(2) in paragraph (2), by striking ``activities described in
section 231(b)'' and inserting ``programs and services which
include reading, writing, speaking, or mathematics skills,
workplace literacy activities, family literacy activities,
English language acquisition activities, or other activities
necessary for the attainment of a secondary school diploma or
its State recognized equivalent'';
(3) in paragraph (5)--
(A) by inserting ``an organization that has
demonstrated effectiveness in providing adult
education, that may include'' after ``means'';
(B) in subparagraph (B), by striking ``of
demonstrated effectiveness'';
(C) in subparagraph (C), by striking ``of
demonstrated effectiveness''; and
(D) in subparagraph (I), by inserting ``or
coalition'' after ``consortium'';
(4) in paragraph (6)--
(A) by striking ``literacy program'' and inserting
``language acquisition program'';
(B) by striking ``literacy program'' and inserting
``language acquisition program''; and
(C) by inserting ``reading, writing, and speaking''
after ``competence in'';
(5) by striking paragraph (10);
(6) by redesignating paragraphs (7) through (9) and (12)
through (18) as paragraphs (8) through (10) and (13) through
(19), respectively;
(7) by inserting after paragraph (6) the following:
``(7) Essential components of reading instruction.--The
term `essential components of reading instruction' has the
meaning given the term in section 1208 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 6368).'';
(8) by inserting after paragraph (11) the following:
``(12) Limited english proficiency.--The term `limited
English proficiency', when used with respect to an individual,
means an adult or out-of-school youth who has limited ability
in speaking, reading, writing, or understanding the English
language, and--
``(A) whose native language is a language other
than English; or
``(B) who lives in a family or community
environment where a language other than English is the
dominant language.'';
(9) by striking paragraph (15), as redesignated by
paragraph (6), and inserting the following:
``(15) Outlying area.--The term `outlying area' means the
United States Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands.''; and
(10) by striking paragraph (19), as redesignated by
paragraph (6), and inserting the following:
``(19) Workplace literacy program.--The term `workplace
literacy program' means an educational program designed to
improve the productivity of the workforce through the
improvement of literacy skills that is offered by an eligible
provider in collaboration with an employer or an employee
organization at a workplace, at an off-site location, or in a
simulated workplace environment.''.

SEC. 203. HOME SCHOOLS.

Section 204 of the Adult Education and Family Literacy Act (20
U.S.C. 9203) is amended to read as follows:

``SEC. 204. HOME SCHOOLS.

``Nothing in this title shall be construed to affect home schools,
whether a home school is treated as a home school or a private school
under State law, or to compel a parent engaged in home schooling to
participate in an English language acquisition program, family literacy
services, or adult education.''.

SEC. 204. AUTHORIZATION OF APPROPRIATIONS.

Section 205 of the Adult Education and Family Literacy Act (20
U.S.C. 9204) is amended--
(1) by striking ``1999'' and inserting ``2006''; and
(2) by striking ``2003'' and inserting ``2011''.

SEC. 205. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE AGENCIES;
ALLOTMENTS.

Section 211 of the Adult Education and Family Literacy Act (20
U.S.C. 9211) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) Reservation of Funds.--From the sum appropriated under
section 205 for a fiscal year, the Secretary--
``(1) shall reserve 1.5 percent to carry out section 242,
except that the amount so reserved shall not exceed
$10,000,000;
``(2) shall reserve 1.5 percent to carry out section 243
and subsection (f)(4), except that the amount so reserved shall
not exceed $8,000,000;
``(3) shall make available, to the Secretary of Labor, 1.72
percent for incentive grants under section 503; and
``(4) shall reserve 12 percent of the amount that remains
after reserving funds under paragraphs (1), (2) and (3) to
carry out section 244.'';
(2) in subsection (c)(2)--
(A) by inserting ``and the sole agency responsible
for administering or supervising policy for adult
education and literacy in the Republic of Palau'' after
``an initial allotment under paragraph (1)'';
(B) by inserting ``or served by the agency for the
Republic of Palau'' after ``by the eligible agency'';
and
(C) by striking ``States and outlying areas'' and
inserting ``States, outlying areas, and the Republic of
Palau'';
(3) in subsection (e)--
(A) in paragraph (1)--
(i) by striking ``the Republic of the
Marshall Islands, the Federated States of
Micronesia, and''; and
(ii) by striking ``the Republic of the
Marshall Islands, the Federated States of
Micronesia, or'' and inserting ``or''; and
(B) in paragraph (3)--
(i) by striking ``the Republic of the
Marshall Islands, the Federated States of
Micronesia, and''; and
(ii) by striking ``2001'' and inserting
``2007'';
(4) by striking subsection (f) and inserting the following:
``(f) Hold-Harmless Provisions.--
``(1) In general.--Notwithstanding subsection (c) and
subject to paragraph (2), for fiscal year 2005 and each
succeeding fiscal year, no eligible agency shall receive an
allotment under this section that is less than 90 percent of
the allotment the eligible agency received for the preceding
fiscal year under this section.
``(2) 100 percent allotment.--Notwithstanding paragraphs
(1) and (2) of subsection (e), an eligible agency that receives
only an initial allotment under subsection (c)(1) (and no
additional allotment under subsection (c)(2)) shall receive an
allotment under this section that is equal to 100 percent of
the initial allotment under subsection (c)(1).
``(3) Ratable reduction.--If for any fiscal year the amount
available for allotment under this subtitle is insufficient to
satisfy the provisions of paragraphs (1) and (2), the Secretary
shall ratably reduce the payments to all eligible agencies, as
necessary.
``(4) Additional assistance.--
``(A) In general.--From amounts reserved under
subsection (a)(2), the Secretary shall make grants to
eligible agencies described in subparagraph (B) to
enable such agencies to provide activities authorized
under chapter 2.
``(B) Eligibility.--An eligible agency is eligible
to receive a grant under this paragraph for a fiscal
year if the amount of the allotment such agency
receives under this section for the fiscal year is less
than the amount such agency would have received for the
fiscal year if the allotment formula under this section
as in effect on September 30, 2003, were in effect for
such year.
``(C) Amount of grant.--The amount of a grant made
to an eligible agency under this paragraph for a fiscal
year shall be the difference between--
``(i) the amount of the allotment such
agency would have received for the fiscal year
if the allotment formula under this section as
in effect on September 30, 2003, were in effect
for such year; and
``(ii) the amount of the allotment such
agency receives under this section for the
fiscal year.''; and
(5) by adding at the end the following:
``(h) Study and Report.--
``(1) Study.--The Comptroller General of the United States
shall conduct a study concerning the formula described in this
section and, in conducting the study, shall at a minimum--
``(A) examine whether the formula results in a
distribution of funds that sufficiently serves the
entire population of individuals eligible for adult
education and literacy activities under this subtitle;
``(B) examine whether the data used to count
qualified adults, for purposes of the formula,
accurately measure the population of individuals
eligible for the activities; and
``(C) develop recommendations for improving the
formula so that the formula results in a distribution
of funds that better serves that population and the
data used to count qualified adults accurately measure
that population.
``(2) Report.--Not later than 3 years after the date of
enactment of the Workforce Investment Act Amendments of 2005,
the Comptroller General shall submit to Congress a report
containing the results of the study described in paragraph
(1).''.

SEC. 206. PERFORMANCE ACCOUNTABILITY SYSTEM.

Section 212 of the Adult Education and Family Literacy Act (20
U.S.C. 9212) is amended--
(1) in subsection (b)--
(A) in paragraph (1)(A)(ii), by striking
``additional indicators of performance (if any)'' and
inserting ``the employment performance indicators'';
(B) by striking paragraph (2) and inserting the
following:
``(2) Indicators of performance.--
``(A) Core indicators of performance.--An eligible
agency shall identify in the State plan individual
academic performance indicators that include, at a
minimum, the following:
``(i) Measurable improvements in literacy
skill levels in reading, writing, and speaking
the English language, numeracy, problem
solving, English language acquisition, and
other literacy skills.
``(ii) Placement in, retention in, or
completion of, postsecondary education or other
training programs.
``(iii) Completion of a secondary school
diploma, its recognized equivalent, or a
recognized alternative standard for individuals
with disabilities.
``(B) Employment performance indicators.--
``(i) In general.--An eligible agency shall
identify in the State plan individual
participant employment performance indicators
that include, at a minimum, the following:
``(I) Entry into unsubsidized
employment.
``(II) Retention in unsubsidized
employment 6 months after entry into
the employment.
``(III) Increases in earnings from
unsubsidized employment.
``(ii) Data collection.--The State
workforce investment board shall assist the
eligible agency in obtaining and using
quarterly wage records to collect data for each
of the indicators described in clause (i),
consistent with applicable Federal and State
privacy laws.
``(C) Indicators for workplace literacy programs.--
Special accountability measures may be negotiated for
workplace literacy programs.''; and
(C) in paragraph (3)--
(i) in subparagraph (A)--
(I) in clause (i)(II), by striking
``in performance'' and inserting ``the
agency's performance outcomes in an
objective, quantifiable, and measurable
form'';
(II) in clause (ii), by striking
``3 program years'' and inserting ``2
program years'';
(III) in clause (iii), by striking
``first 3 years'' and inserting ``first
2 years'';
(IV) in clause (iii), by striking
``first 3 program years'' and inserting
``first 2 program years'';
(V) in clause (v), by striking
``4th and 5th'' and inserting ``3rd and
4th'';
(VI) in clause (v), by striking
``to the fourth'' and inserting ``to
the third'';
(VII) in clause (v), by striking
``fourth and fifth'' and inserting
``third and fourth''; and
(VIII) in clause (vi), by striking
``(II)'' and inserting ``(I)'';
(ii) in subparagraph (B)--
(I) by striking the heading and
inserting ``Levels of employment
performance'';
(II) by striking ``may'' and
inserting ``shall''; and
(III) by striking ``additional''
and inserting ``employment
performance''; and
(iii) by adding at the end the following:
``(C) Alternative assessment systems.--Eligible
agencies may approve the use of assessment systems that
are not commercially available standardized systems if
such systems meet the Standards for Educational and
Psychological Testing issued by the Joint Committee on
Standards for Educational and Psychological Testing of
the American Educational Research Association, the
American Psychological Association, and the National
Council on Measurement in Education.'';
(2) in subsection (c)--
(A) in paragraph (1)--
(i) by inserting ``, the Governor, the
State legislature, and the State workforce
investment board'' after ``Secretary''; and
(ii) by striking ``including'' and all that
follows through the period and inserting
``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) Information on the number or percentage of
qualifying adults (as defined in section 211(d)) who
are participants in adult education programs under this
subtitle and making satisfactory progress toward 1 or
more of each of the following:
``(i) Core indicators of performance.
``(ii) Employment performance indicators.
``(iii) Other long-term objectives.
``(C) The number and type of each eligible provider
that receives funding under such grant.
``(D) The number of enrollees 16 to 18 years of age
who enrolled in adult education not later than 1 year
after participating in secondary school education.'';
(B) in paragraph (2)(A), by inserting ``eligible
providers and'' after ``available to''; and
(C) by adding at the end the following:
``(3) Data access.--The report made available under
paragraph (2) shall indicate which eligible agencies did not
have access to State unemployment insurance wage data in
measuring employment performance indicators.''; and
(3) by adding at the end the following:
``(d) Program Improvement.--
``(1) In general.--If the Secretary determines that an
eligible agency did not meet its adjusted levels of performance
for the core indicators of performance described in subsection
(b)(2)(A) for any program year, the eligible agency shall--
``(A) work with the Secretary to develop and
implement a program improvement plan for the 2 program
years succeeding the program year in which the eligible
agency did not meet its adjusted levels of performance;
and
``(B) revise its State plan under section 224, if
necessary, to reflect the changes agreed to in the
program improvement plan.
``(2) Further assistance.--If, after the period described
in paragraph (1)(A), the Secretary has provided technical
assistance to the eligible agency but determines that the
eligible agency did not meet its adjusted levels of performance
for the core indicators of performance described in subsection
(b)(2)(A), the Secretary may require the eligible agency to
make further revisions to the program improvement plan
described in paragraph (1). Such further revisions shall be
accompanied by further technical assistance from the
Secretary.''.

SEC. 207. STATE ADMINISTRATION.

Section 221(1) of the Adult Education and Family Literacy Act (20
U.S.C. 9221(1)) is amended by striking ``and implementation'' and
inserting ``implementation, and monitoring''.

SEC. 208. STATE DISTRIBUTION OF FUNDS; MATCHING REQUIREMENT.

Section 222 of the Adult Education and Family Literacy Act (20
U.S.C. 9222) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``82.5'' the first place
such term appears and inserting ``80''; and
(ii) by striking ``the 82.5 percent'' and
inserting ``such amount'';
(B) in paragraph (2), by striking ``not more than
12.5 percent'' and inserting ``not more than 15
percent''; and
(C) in paragraph (3), by striking ``$65,000'' and
inserting ``$75,000''; and
(2) in subsection (b)(1), by striking ``equal to'' and
inserting ``that is not less than''.

SEC. 209. STATE LEADERSHIP ACTIVITIES.

Section 223 of the Adult Education and Family Literacy Act (20
U.S.C. 9223) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by
inserting ``to develop or enhance the adult education
system of the State or outlying area'' after
``activities'';
(B) in paragraph (1), by striking ``instruction
incorporating'' and all that follows through the period
and inserting ``instruction incorporating the essential
components of reading instruction and instruction
provided by volunteers or by personnel of a State or
outlying area.'';
(C) in paragraph (2), by inserting ``, including
development and dissemination of instructional and
programmatic practices based on the most rigorous
research available and appropriate, including
scientifically based research that is available and
appropriate, in reading, writing, speaking,
mathematics, English language acquisition programs,
distance learning, and staff training'' after
``activities'';
(D) in paragraph (5), by striking ``monitoring
and'';
(E) by striking paragraph (6) and inserting the
following:
``(6) The development and implementation of technology
applications, translation technology, or distance learning,
including professional development to support the use of
instructional technology.''; and
(F) by striking paragraph (7) through paragraph
(11) and inserting the following:
``(7) Coordination with--
``(A) other partners carrying out activities
authorized under this Act; and
``(B) existing support services, such as
transportation, child care, mental health services, and
other assistance designed to increase rates of
enrollment in, and successful completion of, adult
education and literacy activities, for adults enrolled
in such activities.
``(8) Developing and disseminating curricula, including
curricula incorporating the essential components of reading
instruction as such components relate to adults.
``(9) The provision of assistance to eligible providers in
developing, implementing, and reporting measurable progress in
achieving the objectives of this subtitle.
``(10) The development and implementation of a system to
assist in the transition from adult basic education to
postsecondary education, including linkages with postsecondary
educational institutions.
``(11) Integration of literacy and English language
instruction with occupational skill training, and promoting
linkages with employers.
``(12) Activities to promote workplace literacy programs.
``(13) Activities to promote and complement local outreach
initiatives described in section 243(b)(3)(F).
``(14) In cooperation with efforts funded under sections
242 and 243, the development of curriculum frameworks and
rigorous content standards that--
``(A) specify what adult learners should know and
be able to do in the areas of reading and language
arts, mathematics, and English language acquisition;
and
``(B) take into consideration the following:
``(i) State academic standards established
under section 1111(b) of the Elementary and
Secondary Education Act of 1965.
``(ii) The current adult skills and
literacy assessments used in the State or
outlying area.
``(iii) The core indicators of performance
established under section 212(b)(2)(A).
``(iv) Standards and academic requirements
for enrollment in non-remedial, for-credit,
courses in postsecondary education institutions
supported by the State or outlying area.
``(v) Where appropriate, the basic and
literacy skill content of occupational and
industry skill standards widely used by
business and industry in the State or outlying
area.
``(15) In cooperation with efforts funded under sections
242 and 243, development and piloting of--
``(A) new assessment tools and strategies that--
``(i) are based on scientifically based
research, where available and appropriate; and
``(ii) identify the needs and capture the
gains of students at all levels, with
particular emphasis on--
``(I) students at the lowest
achievement level;
``(II) students who have limited
English proficiency; and
``(III) adults with learning
disabilities;
``(B) options for improving teacher quality and
retention; and
``(C) assistance in converting research into
practice.
``(16) The development and implementation of programs and
services to meet the needs of adult learners with learning
disabilities or limited English proficiency.
``(17) Other activities of statewide significance that
promote the purpose of this title.''; and
(2) in subsection (c), by striking ``being State- or
outlying area-imposed'' and inserting ``being imposed by the
State or outlying area''.

SEC. 210. STATE PLAN.

Section 224 of the Adult Education and Family Literacy Act (20
U.S.C. 9224) is amended--
(1) in subsection (a)--
(A) by striking the heading and inserting ``4-Year
Plans''; and
(B) in paragraph (1), by striking ``5'' and
inserting ``4'';
(2) in subsection (b)--
(A) in paragraph (1), by inserting ``and the role
of provider and cooperating agencies in preparing the
assessment'' after ``serve'';
(B) by striking paragraph (2) and inserting the
following:
``(2) a description of how the eligible agency will address
the adult education and literacy needs identified under
paragraph (1) in each workforce development area of the State,
using funds received under this subtitle, as well as other
Federal, State, or local funds received in partnership with
other agencies for the purpose of adult literacy as
applicable;'';
(C) in paragraph (3)--
(i) by inserting ``and measure'' after
``evaluate'';
(ii) by inserting ``and improvement'' after
``effectiveness''; and
(iii) by striking ``212'' and inserting
``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 subtitle 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
performance)'';
(D) by redesignating paragraphs (5) through (12) as
paragraphs (6) through (13), respectively;
(E) by inserting after paragraph (4) the following:
``(5) a description of how the eligible agency will improve
teacher quality, the professional development of eligible
providers, and instruction;'';
(F) in paragraph (6) (as redesignated by
subparagraph (D)), by striking ``who'' and all that
follows through the semicolon and inserting ``that--
``(A) offers flexible schedules and coordinates
with necessary Federal, State, and local support
services (such as child care, transportation, mental
health services, and case management) to enable
individuals, including individuals with disabilities or
individuals with other special needs, to participate in
adult education and literacy activities; and
``(B) attempts to coordinate with support services
that are not provided under this subtitle prior to
using funds for adult education and literacy activities
provided under this subtitle for support services;'';
(G) in paragraph (10) (as redesignated by
subparagraph (D)), by striking ``plan;'' and inserting
``plan, which process--
``(A) shall include the State workforce investment
board, the Governor, State officials representing
public schools, community colleges, welfare agencies,
agencies that provide services to individuals with
disabilities, other State agencies that promote or
operate adult education and literacy activities, and
direct providers of such adult literacy services; and
``(B) may include consultation with the State
agency for higher education, institutions responsible
for professional development of adult education and
literacy education program instructors, institutions of
higher education, representatives of business and
industry, refugee assistance programs, and community-
based organizations (as such term is defined in section
101);'';
(H) in paragraph (11) (as redesignated by
subparagraph (D))--
(i) by inserting ``assess potential
population needs and'' after ``will'';
(ii) in subparagraph (A), by striking
``students'' and inserting ``individuals'';
(iii) in subparagraph (C), by striking
``and'' after the semicolon; and
(iv) by adding at the end the following:
``(E) the unemployed; and
``(F) those individuals who are employed, but at
levels below self-sufficiency, as defined in section
101;'';
(I) in paragraph (12) (as redesignated by
subparagraph (D))--
(i) by inserting ``and how the plan
submitted under this subtitle is coordinated
with the plan submitted by the State under
title I'' after ``eligible agency''; and
(ii) by striking ``and'' after the
semicolon;
(J) in paragraph (13) (as redesignated by
subparagraph (D)), by striking ``231(c)(1).'' and
inserting ``231(c)(1), including--
``(A) how the State will build the capacity of
organizations that provide adult education and literacy
activities; and
``(B) how the State will increase the participation
of business and industry in adult education and
literacy activities;''; and
(K) by adding at the end the following:
``(14) a description of how the eligible agency will
consult with any State agency responsible for postsecondary
education to develop adult education programs and services
(including academic skill development and support services)
that prepare students to enter postsecondary education upon the
attainment of a secondary school diploma or its recognized
equivalent;
``(15) a description of how the eligible agency will
consult with the State agency responsible for workforce
development to develop adult education programs and services
that are designed to prepare students to enter the workforce;
and
``(16) a description of how the eligible agency will
improve the professional development of eligible providers of
adult education and literacy activities.'';
(3) in subsection (c), by adding at the end the following:
``At the end of the first 2-year period of the 4-year State
plan, the eligible agency shall review and, as needed, revise
the 4-year State plan.''; and
(4) in subsection (d)--
(A) in paragraph (1), by inserting ``, the chief
State school officer, the State officer responsible for
administering community and technical colleges, and the
State workforce investment board'' after ``Governor'';
and
(B) in paragraph (2), by striking ``comments'' and
all that follows through the period and inserting
``comments regarding the State plan by the Governor,
the chief State school officer, the State officer
responsible for administering community and technical
colleges, and the State workforce investment board, and
any revision to the State plan, are submitted to the
Secretary.''.

SEC. 211. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER
INSTITUTIONALIZED INDIVIDUALS.

Section 225 of the Adult Education and Family Literacy Act (20
U.S.C. 9225) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``basic
education'' and inserting ``adult education and
literacy activities'';
(B) in paragraph (2), by inserting ``and'' after
the semicolon;
(C) by striking paragraph (3); and
(D) by redesignating paragraph (4) as paragraph
(3); and
(2) in subsection (d), by striking ``Definition of Criminal
Offender.--'' and inserting ``Definitions.--In this section:''.

SEC. 212. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.

Section 231 of the Adult Education and Family Literacy Act (20
U.S.C. 9241) is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``workplace
literacy services'' and inserting ``workplace literacy
programs''; and
(B) in paragraph (3), by striking ``literacy'' and
inserting ``language acquisition''; and
(2) in subsection (e)--
(A) in paragraph (1), by inserting ``to be achieved
annually on the core indicators of performance and
employment performance indicators described in section
212(b)(2)'' after ``outcomes'';
(B) by striking paragraph (3) and inserting the
following:
``(3) the commitment of the eligible provider to be
responsive to local needs and to serve individuals in the
community who were identified by the assessment as most in need
of adult literacy services, including individuals who are low-
income, have minimal literacy skills, have learning
disabilities, or have limited English proficiency;'';
(C) in paragraph (4)(B), by striking ``, such as''
and all that follows through the semicolon and
inserting ``that include the essential components of
reading instruction;'';
(D) in paragraph (5), by striking ``research'' and
inserting ``the most rigorous research available,
including scientifically based research,'';
(E) in paragraph (9), by inserting ``education, job
training, and social service'' after ``other
available'';
(F) in paragraph (10)--
(i) by inserting ``coordination with
Federal, State, and local'' after ``schedules
and''; and
(ii) by striking ``and transportation'' and
inserting ``, transportation, mental health
services, and case management'';
(G) in paragraph (11)--
(i) by inserting ``measurable'' after
``report'';
(ii) by striking ``eligible agency'';
(iii) by inserting ``established by the
eligible agency'' after ``performance
measures''; and
(iv) by striking ``and'' after the
semicolon;
(H) in paragraph (12), by striking ``literacy
programs.'' and inserting ``language acquisition
programs and civics education programs;''; and
(I) by adding at the end the following:
``(13) the capacity of the eligible provider to produce
information on performance results, including enrollments and
measurable participant outcomes;
``(14) whether reading, writing, speaking, mathematics, and
English language acquisition instruction provided by the
eligible provider are based on the best practices derived from
the most rigorous research available and appropriate, including
scientifically based research that is available and
appropriate;
``(15) whether the eligible provider's applications of
technology and services to be provided are sufficient to
increase the amount and quality of learning and lead to
measurable learning gains within specified time periods; and
``(16) the capacity of the eligible provider to serve adult
learners with learning disabilities.''.

SEC. 213. LOCAL APPLICATION.

Section 232 of the Adult Education and Family Literacy Act (20
U.S.C. 9242) is amended--
(1) in paragraph (1)--
(A) by inserting ``consistent with the requirements
of this subtitle'' after ``spent''; and
(B) by striking ``and'' after the semicolon;
(2) in paragraph (2), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(3) information that addresses each of the considerations
required under section 231(e).''.

SEC. 214. LOCAL ADMINISTRATIVE COST LIMITS.

Section 233 of the Adult Education and Family Literacy Act (20
U.S.C. 9243) is amended--
(1) in subsection (a)(2)--
(A) by inserting ``and professional'' after
``personnel''; and
(B) by inserting ``development of measurable goals
in reading, writing, and speaking the English language,
and in mathematical computation,'' after
``development,''; and
(2) in subsection (b)--
(A) by inserting ``and professional'' after
``personnel''; and
(B) by inserting ``development of measurable goals
in reading, writing, and speaking the English language,
and in mathematical computation,'' after
``development,''.

SEC. 215. ADMINISTRATIVE PROVISIONS.

Section 241(b) of the Adult Education and Family Literacy Act (20
U.S.C. 9251(b)) is amended--
(1) in paragraph (1)(A)--
(A) by striking ``adult education and literacy
activities'' each place the term appears and inserting
``activities under this subtitle''; and
(B) by striking ``was'' and inserting ``were''; and
(2) in paragraph (4)--
(A) by inserting ``not more than'' after ``this
subsection for''; and
(B) by striking ``only''.

SEC. 216. NATIONAL INSTITUTE FOR LITERACY.

Section 242 of the Adult Education and Family Literacy Act (20
U.S.C. 9252) is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``literacy'' and
inserting ``effective literacy programs for children,
youth, adults, and families'';
(B) in paragraph (2), by inserting ``and
disseminates information on'' after ``coordinates'';
and
(C) by striking paragraph (3)(A) and inserting the
following:
``(A) coordinating and participating in the Federal
effort to identify and disseminate information on
literacy that is derived from scientifically based
research, or the most rigorous research available, and
effective programs that serve children, youth, adults,
and families; and'';
(2) by striking subsection (b)(3) and inserting the
following:
``(3) Recommendations.--The Interagency Group, in
consultation with the National Institute for Literacy Advisory
Board (in this section referred to as the `Board') established
under subsection (e), shall plan the goals of the Institute and
the implementation of any programs to achieve the goals. The
Board may also request a meeting of the Interagency Group to
discuss any recommendations the Board may make.'';
(3) in subsection (c)--
(A) in paragraph (1)--
(i) in subparagraph (A)--
(I) by striking ``to establish''
and inserting ``to maintain'';
(II) in clause (i), by striking
``phonemic awareness, systematic
phonics, fluency, and reading
comprehension'' and inserting ``the
essential components of reading
instruction'';
(III) in clause (iii), by striking
``and'' after the semicolon;
(IV) in clause (iv), by inserting
``and'' after the semicolon; and
(V) by adding at the end the
following:
``(v) a list of local adult education and
literacy programs;'';
(ii) in subparagraph (C)--
(I) by striking ``reliable and
replicable research'' and inserting
``reliable and replicable research as
defined by the Institute of Education
Sciences''; and
(II) by striking ``especially with
the Office of Educational Research and
Improvement in the Department of
Education,'';
(iii) in subparagraph (D), by striking
``phonemic awareness, systematic phonics,
fluency, and reading comprehension based on''
and inserting ``the essential components of
reading instruction and'';
(iv) in subparagraph (H), by striking
``and'' after the semicolon;
(v) in subparagraph (I), by striking the
period at the end and inserting a semicolon;
and
(vi) by adding at the end the following:
``(J) to work cooperatively with the Department of
Education to assist States that are pursuing the
implementation of standards-based educational
improvements for adults through the dissemination of
training, technical assistance, and related support and
through the development and dissemination of related
standards-based assessment instruments; and
``(K) to identify scientifically based research
where available and appropriate, or the most rigorous
research available and appropriate, on the
effectiveness of instructional practices and
organizational strategies relating to literacy programs
on the acquisition of skills in reading, writing,
English acquisition, and mathematics.''; and
(B) by adding at the end the following:
``(3) Coordination.--In identifying the reliable and
replicable research the Institute will support, the Institute
shall use standards for research quality that are consistent
with those of the Institute of Education Sciences.'';
(4) in subsection (e)--
(A) in paragraph (1)(B)--
(i) in clause (i), by striking ``literacy
programs'' and inserting ``language acquisition
programs'';
(ii) in clause (ii), by striking ``literacy
programs'' and inserting ``or have participated
in or partnered with workplace literacy
programs'';
(iii) in clause (iv), by inserting ``,
including adult literacy research'' after
``research'';
(iv) in clause (vi), by striking ``and''
after the semicolon;
(v) in clause (vii), by striking the period
at the end and inserting ``; and''; and
(vi) by adding at the end the following:
``(viii) institutions of higher
education.'';
(B) in paragraph (2)--
(i) in subparagraph (B), by striking
``and'' after the semicolon;
(ii) in subparagraph (C), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(D) review the biennial report submitted to
Congress pursuant to subsection (k).''; and
(C) in paragraph (5), by striking the second
sentence and inserting the following: ``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.''; and
(5) in subsection (k)--
(A) by striking ``Labor and Human Resources'' and
inserting ``Health, Education, Labor, and Pensions'';
and
(B) by striking ``The Institute shall submit a
report biennially to'' and inserting ``Not later than 1
year after the date of enactment of the Adult Education
and Family Literacy Act Amendments of 2005, and
biennially thereafter, the Institute shall submit a
report to''.

SEC. 217. NATIONAL LEADERSHIP ACTIVITIES.

Section 243 of the Adult Education and Family Literacy Act (20
U.S.C. 9253) is amended to read as follows:

``SEC. 243. NATIONAL LEADERSHIP ACTIVITIES.

``(a) In General.--The Secretary shall establish and carry out a
program of national leadership activities to enhance the quality of
adult education and literacy programs nationwide.
``(b) Permissive Activities.--The national leadership activities
described in subsection (a) may include the following:
``(1) Technical assistance, including--
``(A) assistance provided to eligible providers in
developing and using performance measures for the
improvement of adult education and literacy activities,
including family literacy services;
``(B) assistance related to professional
development activities, and assistance for the purposes
of developing, improving, identifying, and
disseminating the most successful methods and
techniques for providing adult education and literacy
activities, including family literacy services, based
on scientific evidence where available;
``(C) assistance in distance learning and promoting
and improving the use of technology in the classroom;
``(D) assistance in developing valid, measurable,
and reliable performance data, including data about
employment and employment outcome, and using
performance information for the improvement of adult
education and literacy programs; and
``(E) assistance to help States, particularly low-
performing States, meet the requirements of section
212.
``(2) A program of grants, contracts, or cooperative
agreements awarded on a competitive basis to national,
regional, or local networks of private nonprofit organizations,
public libraries, or institutions of higher education to build
the capacity of such networks' members to meet the performance
requirements of eligible providers under this title and involve
adult learners in program improvement.
``(3) Funding national leadership activities that are not
described in paragraph (1), either directly or through grants,
contracts, or cooperative agreements awarded on a competitive
basis to or with postsecondary educational institutions, public
or private organizations or agencies, or consortia of such
institutions, organizations, or agencies, such as--
``(A) developing, improving, and identifying the
most successful methods and techniques for addressing
the education needs of adults, including instructional
practices using the essential components of reading
instruction based on the work of the National Institute
of Child Health and Human Development;
``(B) increasing the effectiveness of, and
improving the quality of, adult education and literacy
activities, including family literacy services;
``(C) carrying out rigorous research, including
scientifically based research where appropriate, on
national literacy basic skill acquisition for adult
learning, including estimating the number of adults
functioning at the lowest levels of literacy
proficiency;
``(D)(i) carrying out demonstration programs;
``(ii) disseminating best practices information,
including information regarding promising practices
resulting from federally funded demonstration programs;
and
``(iii) developing and replicating best practices
and innovative programs, including--
``(I) the development of models for basic
skill certificates;
``(II) the identification of effective
strategies for working with adults with
learning disabilities and with adults with
limited English proficiency;
``(III) integrated basic and workplace
skills education programs;
``(IV) coordinated literacy and employment
services; and
``(V) postsecondary education transition
programs;
``(E) providing for the conduct of an independent
evaluation and assessment of adult education and
literacy activities through studies and analyses
conducted independently through grants and contracts
awarded on a competitive basis, which evaluation and
assessment shall include descriptions of--
``(i) the effect of performance measures
and other measures of accountability on the
delivery of adult education and literacy
activities, including family literacy services;
``(ii) the extent to which the adult
education and literacy activities, including
family literacy services, increase the literacy
skills of adults (and of children, in the case
of family literacy services), lead the
participants in such activities to involvement
in further education and training, enhance the
employment and earnings of such participants,
and, if applicable, lead to other positive
outcomes, such as reductions in recidivism in
the case of prison-based adult education and
literacy activities;
``(iii) the extent to which the provision
of support services to adults enrolled in adult
education and family literacy programs increase
the rate of enrollment in, and successful
completion of, such programs; and
``(iv) the extent to which different types
of providers measurably improve the skills of
participants in adult education and literacy
programs;
``(F) supporting efforts aimed at capacity building
of programs at the State and local levels such as
technical assistance in program planning, assessment,
evaluation, and monitoring of activities carried out
under this subtitle;
``(G) collecting data, such as data regarding the
improvement of both local and State data systems,
through technical assistance and development of model
performance data collection systems;
``(H) supporting the development of an entity that
would produce and distribute technology-based programs
and materials for adult education and literacy programs
using an interconnection system (as defined in section
397 of the Communications Act of 1934 (47 U.S.C. 397))
and expand the effective outreach and use of such
programs and materials to adult education eligible
providers;
``(I) determining how participation in adult
education and literacy activities prepares individuals
for entry into postsecondary education and employment
and, in the case of prison-based services, has an
effect on recidivism; and
``(J) other activities designed to enhance the
quality of adult education and literacy activities
nationwide.''.

SEC. 218. INTEGRATED ENGLISH LITERACY AND CIVICS EDUCATION.

Chapter 4 of subtitle A of title II (29 U.S.C. 9251 et seq.) is
amended by adding at the end the following:

``SEC. 244. INTEGRATED ENGLISH LITERACY AND CIVICS EDUCATION.

``(a) In General.--From funds made available under section
211(a)(4) for each fiscal year, the Secretary shall award grants to
States, from allotments under subsection (b), for integrated English
literacy and civics education.
``(b) Allotment.--
``(1) In general.--Subject to paragraph (2), from amounts
made available under section 211(a)(4) for a fiscal year, the
Secretary shall allocate--
``(A) 65 percent to the States on the basis of a
State's need for integrated English literacy and civics
education, as determined by calculating each State's
share of a 10-year average of the data of the Office of
Immigration Statistics of the Department of Homeland
Security for immigrants admitted for legal permanent
residence for the 10 most recent years; and
``(B) 35 percent to the States on the basis of
whether the State experienced growth, as measured by
the average of the 3 most recent years for which the
data of the Office of Immigration Statistics of the
Department of Homeland Security for immigrants admitted
for legal permanent residence are available.
``(2) Minimum.--No State shall receive an allotment under
paragraph (1) in an amount that is less than $60,000.''.

SEC. 219. TRANSITION.

The Secretary shall take such steps as the Secretary determines to
be appropriate to provide for the orderly transition to the authority
of the Adult Education and Family Literacy Act (as amended by this
title) from any authority under provisions of the Adult Education and
Family Literacy Act (as such Act was in effect on the day before the
date of enactment of the Adult Education and Family Literacy Act
Amendments of 2005).

TITLE III--AMENDMENTS TO OTHER PROVISIONS OF LAW

SEC. 301. WAGNER-PEYSER ACT.

(a) Conforming Amendment.--Section 2(3) of the Wagner-Peyser Act
(29 U.S.C. 49a(3)) is amended by striking ``section 134(c)'' and
inserting ``section 121(e)''.
(b) Colocation.--Section 3 of the Wagner-Peyser Act (29 U.S.C. 49b)
is amended by adding at the end the following:
``(d) In order to avoid duplication of services and enhance
integration of services, employment services offices in each State
shall be colocated with one-stop centers established under title I of
the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.).
``(e) The Secretary, in consultation with States, is authorized to
assist in the development of national electronic tools that may be used
to improve access to workforce information for individuals through--
``(1) the one-stop delivery systems established under
section 121(e) of the Workforce Investment Act of 1998 (29
U.S.C. 2841(e)); and
``(2) such other delivery systems as the Secretary
determines to be appropriate.''.
(c) Workforce and Labor Market Information System.--Section 15 of
the Wagner-Peyser Act (29 U.S.C. 49l-2) is amended--
(1) by striking the section heading and inserting the
following:

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

(2) by striking ``employment statistics system'' each place
it appears and inserting ``workforce and labor market
information system'';
(3) in subsection (a)(1), by striking ``of employment
statistics'';
(4) in subsection (b)--
(A) in paragraph (1)--
(i) by striking ``The'' and inserting the
following:
``(A) Structure.--The''; and
(ii) by adding at the end the following:
``(B) Grants or cooperative agreements.--
``(i) In general.--The Secretary shall
carry out the provisions of this section in a
timely manner through grants or cooperative
agreements with States.
``(ii) Distribution of funds.--With regard
to distributing funds appropriated under
subsection (g) (relating to workforce and labor
market information funding) for fiscal years
2006 through 2011, the Secretary shall continue
to distribute the funds to States in the manner
in which the Secretary distributed funds to the
States under this section for fiscal years 1999
through 2003.''; and
(B) in paragraph (2)(E)--
(i) in clause (i), by adding ``and'' at the
end;
(ii) in clause (ii), by striking ``; and''
and inserting a period; and
(iii) by striking clause (iii);
(5) by striking subsections (c) and (d) and inserting the
following:
``(c) Two-Year Plan.--The Secretary, working through the
Commissioner of Labor Statistics, and in cooperation with the States
and with the assistance of the Assistant Secretary for Employment and
Training and heads of other appropriate Federal agencies, shall prepare
a 2-year plan which shall be the mechanism for achieving cooperative
management of the nationwide workforce and labor market information
system described in subsection (a) and the statewide workforce and
labor market information systems that comprise the nationwide system.
The plan shall--
``(1) describe the steps the to be taken in the following 2
years to carry out the duties described in subsection (b)(2);
``(2) evaluate the performance of the system and recommend
needed improvements, with particular attention to the
improvements needed at the State and local levels; and
``(3) describe the involvement of States in the development
of the plan, through consultation between the Secretary and
representatives from State agencies in accordance with
subsection (d).
``(d) Coordination With the States.--The Secretary, working though
the Commissioner of Labor Statistics and in coordination with the
Assistant Secretary for Employment and Training, shall formally consult
at least twice annually with representatives of each of the Federal
regions of the Department of Labor, elected (pursuant to a process
established by the Secretary) by and from the State workforce and labor
market information directors affiliated with the State agencies that
perform the duties described in subsection (e)(2).'';
(6) in subsection (e)--
(A) in paragraph (1)(A), by striking ``annual
plan'' and inserting ``plan described in subsection
(c)''; and
(B) in paragraph (2)--
(i) in subparagraph (G), by adding ``and''
at the end;
(ii) by striking subparagraph (H); and
(iii) by redesignating subparagraph (I) as
subparagraph (H); and
(7) in subsection (g), by striking ``1999 through 2004''
and inserting ``2006 through 2011''.

TITLE IV--REHABILITATION ACT AMENDMENTS

SEC. 401. SHORT TITLE.

This title may be cited as the ``Rehabilitation Act Amendments of
2005''.

SEC. 402. TECHNICAL AMENDMENTS TO TABLE OF CONTENTS.

(a) Expanded Transition Services.--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.''.
(b) Incentive Grants.--Section 1(b) of the Rehabilitation Act of
1973 is amended by inserting after the item relating to section 112 the
following:

``Sec. 113. Incentive grants.''.
(c) Independent Living Services for Older Individuals Who Are
Blind.--Section 1(b) of the Rehabilitation Act of 1973 is amended by
striking the items relating to sections 752 and 753 and inserting the
following:

``Sec. 752. Training and technical
assistance.
``Sec. 753. Program of grants.
``Sec. 754. Authorization of
appropriations.''.

SEC. 403. PURPOSE.

Section 2 of the Rehabilitation Act of 1973 (29 U.S.C. 701) is
amended--
(1) in subsection (a)--
(A) in paragraph (5), by striking ``and'' after the
semicolon;
(B) in paragraph (6), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(7)(A) a high proportion of youth who are individuals
with disabilities is leaving special education without being
employed or being enrolled in continuing education; and
``(B) there is a substantial need to support those youth as
the youth transition from school to postsecondary life.''; and
(2) in subsection (b)--
(A) in paragraph (1)(F), by striking ``and'' after
the semicolon;
(B) in paragraph (2), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(3) to provide opportunities for employers and vocational
rehabilitation service providers to provide meaningful input at
all levels of government to ensure successful employment of
individuals with disabilities.''.

SEC. 404. REHABILITATION SERVICES ADMINISTRATION.

Section 3 of the Rehabilitation Act of 1973 (29 U.S.C. 702) is
amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) by inserting after subsection (a) the following:
``(b) The Secretary shall ensure that--
``(1) the Rehabilitation Services Administration has
sufficient staff to provide oversight of, conduct auditing of,
and provide technical assistance to, the designated State
agencies funded under this Act; and
``(2) such staff include individuals who have training in
and experience with the provision of vocational rehabilitation
services.''.

SEC. 405. DEFINITIONS.

Section 7 of the Rehabilitation Act of 1973 (29 U.S.C. 705) is
amended--
(1) in paragraph (2)(B)--
(A) in the matter preceding clause (i), by
inserting ``and literacy services'' after ``supported
employment''; and
(B) in clause (iii), by inserting ``and literacy
skills'' after ``educational achievements'';
(2) by striking paragraphs (3) and (4) and inserting the
following:
``(3) Assistive technology definitions.--
``(A) Assistive technology.--The term `assistive
technology' has the meaning given such term in section
3 of the Assistive Technology Act of 1998 (29 U.S.C.
3002).
``(B) Assistive technology device.--The term
`assistive technology device' has the meaning given
such term in section 3 of the Assistive Technology Act
of 1998, except that the reference in such section to
the term `individuals with disabilities' shall be
deemed to mean more than one individual with a
disability as defined in paragraph (20)(A).
``(C) Assistive technology service.--The term
`assistive technology service' has the meaning given
such term in section 3 of the Assistive Technology Act
of 1998, except that the reference in such section--
``(i) to the term `individual with a
disability' shall be deemed to mean an
individual with a disability, as defined in
paragraph (20)(A); and
``(ii) to the term `individuals with
disabilities' shall be deemed to mean more than
one such individual.'';
(3) by inserting after paragraph (6) the following:
``(7) Consumer organization.--The term `consumer
organization' means a membership organization, or disability
advocacy group, for which a majority of the members of the
board of directors of the organization or group are individuals
with disabilities or family members of individuals with
disabilities.'';
(4) in paragraph (17)--
(A) in subparagraph (C), by striking ``and'' after
the semicolon;
(B) in subparagraph (D), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(E)(i) facilitating transitions of--
``(I) youth who are individuals with
significant disabilities and have completed
individualized education programs under section
614(d) of the Individuals with Disabilities
Education Act (20 U.S.C. 1414(d)) to
postsecondary life, including employment; and
``(II) individuals with significant
disabilities from nursing homes and other
institutions, including institutions serving
individuals with cognitive disabilities, to
community-based residences; and
``(ii) assisting individuals with significant
disabilities at risk of entering institutions to remain
in the community.'';
(5) by redesignating paragraphs (24) through (28), (29)
through (34), (35) through (37), and (38) through (39), as
paragraphs (25) through (29), (31) through (36), (38) through
(40), and (42) through (43), respectively;
(6) by inserting after paragraph (23) the following:
``(24) Literacy.--The term `literacy' has the meaning given
the term in section 203 of the Adult Education and Family
Literacy Act (20 U.S.C. 9202).'';
(7) by inserting after paragraph (29), as redesignated by
paragraph (5), the following:
``(30) Post-employment service.--The term `post-employment'
service means a service identified in section 103(a) that is--
``(A) provided subsequent to the achievement of an
employment outcome; and
``(B) necessary for an individual to maintain,
regain, or advance in employment, consistent with the
individual's strengths, resources, priorities,
concerns, abilities, capabilities, interests, and
informed choice.'';
(8) by inserting after paragraph (36), as redesignated by
paragraph (5), the following:
``(37) Student with a disability.--
``(A) In general.--The term `student with a
disability' means an individual with a disability who
attends an elementary school or secondary school and
who--
``(i) is not younger than 16 years of age;
``(ii) is not older than 22 years of age;
``(iii) has been determined to be eligible
under section 102(a) for assistance under title
I; and
``(iv)(I) is eligible for, and receiving,
special education or related services under
part B of the Individuals with Disabilities
Education Act (20 U.S.C. 1411 et seq.); or
``(II) is an individual with a disability,
for purposes of section 504.
``(B) Students with disabilities.--The term
`students with disabilities' means more than 1 student
with a disability.'';
(9) in paragraph (38)(A)(ii), as redesignated by paragraph
(5), by striking ``paragraph (36)(C)'' and inserting
``paragraph (39)(C)''; and
(10) by inserting after paragraph (40), as redesignated by
paragraph (5), the following:
``(41) Transition services expansion year.--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 2006
by not less than $100,000,000; and
``(B) each fiscal year subsequent to that first
fiscal year.''.

SEC. 406. ADMINISTRATION OF THE ACT.

Section 12(a)(1) of the Rehabilitation Act of 1973 (29 U.S.C.
709(a)(1)) is amended--
(1) by inserting ``(A)'' after ``(1)''; and
(2) by adding at the end the following:
``(B) provide technical assistance to the designated State
units on developing successful partnerships with local and
multi-State businesses in an effort to employ individuals with
disabilities; and
``(C) provide technical assistance on developing self-
employment opportunities and outcomes for individuals with
disabilities;''.

SEC. 407. REPORTS.

Section 13 of the Rehabilitation Act of 1973 (29 U.S.C. 710) is
amended by adding at the end the following:
``(d)(1)(A) The Commissioner shall ensure that the reports,
information, and data described in subparagraph (B) will be posted in a
timely manner on the website of the Department of Education, in order
to inform the public about the administration and performance of
programs in each State under this Act.
``(B) The reports, information, and data referred to in
subparagraph (A) shall consist of--
``(i) reports submitted by a designated State unit under
this Act;
``(ii) accountability information (including State
performance information relating to evaluation standards and
performance indicators under section 106 and State performance
information relating to State performance measures under
section 136 of the Workforce Investment Act of 1998 (29 U.S.C.
2871)) submitted by a designated State unit under this Act or
submitted by a State to the Secretary of Labor under subsection
(d) of such section 136;
``(iii) data collected from each designated State unit
under this Act with the approval of the Office of Management
and Budget; and
``(iv) monitoring reports conducted under this Act.
``(C) The Commissioner shall maintain, and post on the website, a
listing of the reports, information, and data required to be submitted
by designated State units under this Act.
``(D) The Commissioner shall post on the website, or establish
links on the website to, evaluations, studies, and audits, including
evaluations, studies, and audits conducted by agencies of the Federal
Government, concerning programs carried out under this Act.
``(E) The Commissioner shall maintain on the website a list of the
designated State units and shall establish links on the website to
websites maintained by those units.
``(2) The Commissioner shall maintain public use read-only access
to the State and aggregated reports and analyzed data filed and
maintained on the Rehabilitation Services Administration management
information system or a similar system maintained by the Department of
Education.''.

SEC. 408. CARRYOVER.

Section 19 of the Rehabilitation Act of 1973 (29 U.S.C. 716) is
amended--
(1) in subsection (a)(1)--
(A) by inserting ``(except for the client
assistance program funded under section 112)'' after
``any grant program under part B of title I'';
(B) by striking ``, section 509 (except as provided
in section 509(b))'';
(C) by striking ``or C''; and
(D) by striking ``752(b)'' and inserting
``753(b)''; and
(2) by adding at the end the following:
``(c) Client Assistance Program; Protection and Advocacy of
Individual Rights.--
``(1) Appropriated amounts.--Notwithstanding any other
provision of law, any funds appropriated for a fiscal year to
carry out a grant program under section 112 or 509 (except as
provided in section 509(b)), including any funds reallotted
under such grant program, that are not obligated and expended
by recipients prior to the beginning of the succeeding fiscal
year shall remain available for obligation and expenditure by
such recipients during such succeeding fiscal year.
``(2) Program income.--Notwithstanding any other provision
of law, any amounts of program income received by recipients
under a grant program under section 112 or 509 in a fiscal year
that are not obligated and expended by recipients prior to the
beginning of the succeeding fiscal year, shall remain available
until expended.''.

Subtitle A--Vocational Rehabilitation Services

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

Section 100(b)(1) of the Rehabilitation Act of 1973 (29 U.S.C.
720(b)(1)) is amended by striking ``fiscal years 1999 through 2003''
and inserting ``fiscal years 2006 through 2011''.

SEC. 412. STATE PLANS.

(a) In General.--Section 101(a) of the Rehabilitation Act of 1973
(29 U.S.C. 721(a)) is amended--
(1) in paragraph (2), by adding at the end the following:
``(D) State agency for reimbursement purposes.--A
governing body of an Indian tribe that receives a grant
under section 121 shall be considered, for purposes of
the cost reimbursement provisions--
``(i) in section 222(d)(1) of the Social
Security Act (42 U.S.C. 422(d)(1)), to be a
State; and
``(ii) in subsections (d) and (e) of
section 1615 of the Social Security Act (42
U.S.C. 1382d), to be a State agency described
in subsection (d) of that section.'';
(2) in paragraph (6)(B), by striking ``to employ and
advance in employment'' and inserting ``to recruit, employ, and
advance in employment'';
(3) in paragraph (7)(A)(v), by striking subclause (I) and
inserting the following:
``(I) a system for the continuing
education of rehabilitation
professionals and paraprofessionals
within the designated State unit,
particularly with respect to
rehabilitation technology, including
training implemented in coordination
with State programs carried out under
section 4 of the Assistive Technology
Act of 1998 (29 U.S.C. 3003); and'';
(4) in paragraph (10)--
(A) in subparagraph (B), by striking ``annual
reporting on the eligible individuals receiving the
services, on those specific data elements described in
section 136(d)(2) of the Workforce Investment Act of
1998'' and inserting ``annual reporting of information
on eligible individuals receiving the services that is
needed to assess performance on the core indicators of
performance described in section 136(b)(2)(A)(i) of the
Workforce Investment Act of 1998 (29 U.S.C.
2871(b)(2)(A)(i))'';
(B) in subparagraph (C), by striking clauses (iii)
and (iv) and inserting the following:
``(iii) the number of applicants and
eligible recipients, including the number of
individuals with significant disabilities, who
exited the program carried out under this title
and the number of such individuals who achieved
employment outcomes after receiving vocational
rehabilitation services; and
``(iv) the number of individuals who
received vocational rehabilitation services who
entered and retained employment and the
earnings of such individuals, as such entry,
retention, and earnings are defined for
purposes of the core indicators of performance
described in section 136(b)(2)(A)(i) of the
Workforce Investment Act of 1998 (29 U.S.C.
2871(b)(2)(A)(i)).''; and
(C) in subparagraph (E)(ii), by striking ``in
meeting'' and all that follows through the period and
inserting ``in meeting the standards and indicators
established pursuant to section 106.'';
(5) in paragraph (11)--
(A) by striking subparagraph (C) and inserting the
following:
``(C) Interagency cooperation with other
agencies.--The State plan shall include descriptions of
interagency cooperation with, and utilization of the
services and facilities of, Federal, State, and local
agencies and programs, including the State programs
carried out under section 4 of the Assistive Technology
Act of 1998 (29 U.S.C. 3003), programs carried out by
the Under Secretary for Rural Development of the
Department of Agriculture, and State use contracting
programs, to the extent that such agencies and programs
are not carrying out activities through the statewide
workforce investment system.'';
(B) by striking subparagraph (D)(ii) and inserting
the following:
``(ii) transition planning by personnel of
the designated State agency and the State
educational agency that will facilitate the
development and completion of the
individualized education programs under section
614(d) of the Individuals with Disabilities
Education Act (20 U.S.C. 1414(d)) and, as
appropriate, the development and completion of
the individualized plan for employment, in
order to achieve post-school employment
outcomes of students with disabilities;''; and
(C) 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 and
implementing agency (if any) designated by the Governor
of the State under section 4 of the Assistive
Technology Act of 1998 (29 U.S.C. 3003), have developed
working relationships and will enter into agreements
for the coordination of their activities, including the
referral of individuals with disabilities to programs
and activities described in that section.
``(H) Coordination with ticket to work and self-
sufficiency program.--The State plan shall include an
assurance that the designated State unit will
coordinate activities with any other State agency that
is functioning as an employment network under the
Ticket to Work and Self-Sufficiency Program established
under section 1148 of the Social Security Act (42
U.S.C. 1320b-19).'';
(6) in paragraph (15)--
(A) in subparagraph (A)--
(i) in clause (i)--
(I) in subclause (II), by striking
``and'' after the semicolon;
(II) in subclause (III), by
inserting ``and'' after the semicolon;
and
(III) by adding at the end the
following:
``(IV) for purposes of addressing
needs in a transition services
expansion year, students with
disabilities, including their need for
transition services;'';
(ii) by redesignating clauses (ii) and
(iii) as clauses (iii) and (iv), respectively;
and
(iii) by inserting after clause (i) the
following:
``(ii) include an assessment of the needs
of individuals with disabilities for transition
services provided under this Act, and
coordinated with transition services provided
under the Individuals with Disabilities
Education Act (20 U.S.C. 1400 et seq.), and an
assessment as to whether the transition
services provided under those Acts meet the
needs of individuals with disabilities;''; and
(B) in subparagraph (D)--
(i) by redesignating clauses (iii), (iv),
and (v) as clauses (iv), (v), and (vi),
respectively; and
(ii) by inserting after clause (ii) the
following:
``(iii) for use 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 postsecondary life, including the
receipt of vocational rehabilitation services
under this title, postsecondary education, or
employment;'';
(7) in paragraph (20)--
(A) by redesignating subparagraph (B) as
subparagraph (C);
(B) by inserting after subparagraph (A) the
following:
``(B) Information on assistance for beneficiaries
of assistance under title ii or xvi of the social
security act.--The State plan shall include an
assurance that the designated State agency will make
available to individuals entitled to benefits under
title II or XVI of the Social Security Act (42 U.S.C.
401 et seq., 1381 et seq.) on the basis of a disability
or blindness--
``(i) information on the availability of
benefits and medical assistance authorized
under the State medicaid program under title
XIX of the Social Security Act (42 U.S.C. 1396
et seq.) or under the medicare program under
title XVIII of the Social Security Act (42
U.S.C. 1395 et seq.), and medical assistance
authorized under other federally funded
programs;
``(ii) information on the availability of
assistance through benefits planning and
assistance programs authorized under section
1149 of the Social Security Act (42 U.S.C.
1320b-20) and services provided by the State
protection and advocacy system and authorized
under section 1150 of the Social Security Act
(42 U.S.C. 1320b-21); and
``(iii) in the case of individuals who are
also eligible for a ticket under the Ticket to
Work and Self-Sufficiency Program established
under section 1148 of the Social Security Act
(42 U.S.C. 1320b-19), general information
regarding the options for using the ticket and
information on how to contact a program manager
of the Ticket to Work and Self-Sufficiency
Program to obtain information on approved
employment networks, on providers for the
benefits planning and assistance programs
described in subparagraph (B) in the State, and
on the services provided by the State
protection and advocacy system and described in
subparagraph (B).''; and
(C) in subparagraph (C)(ii), as redesignated by
subparagraph (A)--
(i) in subclause (II), by inserting ``, to
the maximum extent possible,'' after ``point of
contact''; and
(ii) in subclause (III), by striking ``or
regain'' and inserting ``regain, or advance
in''; and
(8) 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 Commissioner that the State--
``(A) has developed and shall implement, in each
transition services expansion year, 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) in each transition services expansion year--
``(i) shall not use more than 5 percent of
the funds reserved under section 110A and
available for this subparagraph, to pay for
administrative costs; and
``(ii) shall use the remaining funds to
carry out programs or activities designed to
improve and expand vocational rehabilitation
services for students with disabilities,
through partnerships described in subparagraph
(C), 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 through the provision of
transition services, 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
local educational 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; and
``(C) in each transition services expansion year,
shall ensure that the funds described in subparagraph
(B)(ii) are awarded only to partnerships that--
``(i) shall include local vocational
rehabilitation services providers and local
educational agencies; and
``(ii) may include (or may have linkages
with)--
``(I) other agencies such as
employment, social service, and health
organizations, that contribute funds
for the provision of vocational
rehabilitation services described in
subparagraph (B)(ii) for eligible
students with disabilities; and
``(II) businesses and business-led
intermediaries.''.
(b) Construction.--Section 101 of the Rehabilitation Act of 1973
(29 U.S.C. 721) is amended by adding at the end the following:
``(c) Construction.--
``(1) Definitions.--In this subsection, the terms `child
with a disability', `free appropriate public education',
`related services', and `special education' have the meanings
given the terms in section 602 of the Individuals with
Disabilities Education Act (20 U.S.C. 1401).
``(2) Obligation to provide or pay for transition
services.--Nothing in this part shall be construed to reduce
the obligation of a local educational agency or any other
agency to provide or pay for any transition services that are
also considered special education or related services and that
are necessary for ensuring a free appropriate public education
to children with disabilities within the State involved.''.

SEC. 413. ELIGIBILITY AND INDIVIDUALIZED PLAN FOR EMPLOYMENT.

Section 102 of the Rehabilitation Act of 1973 (29 U.S.C. 722) is
amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking the
semicolon at the end and inserting ``,
including a listing of all the community
resources (including resources from consumer
organizations (including advocacy
organizations)), to the maximum extent
possible, to assist in the development of such
individual's individualized plan for employment
to enable the individual to make informed and
effective choices in developing the
individualized plan for employment;''; and
(ii) in subparagraph (D)--
(I) in clause (i), by striking
``and'' after the semicolon;
(II) in clause (ii), by striking
the period at the end and inserting a
semicolon; and
(III) by adding at the end the
following:
``(iii) for individuals entitled to benefits under
title II or XVI of the Social Security Act (42 U.S.C.
401 et seq., 1381 et seq.) on the basis of a disability
or blindness--
``(I) information on the availability of
benefits and medical assistance authorized
under the State medicaid program under title
XIX of the Social Security Act (42 U.S.C. 1396
et seq.) or under the medicare program under
title XVIII of the Social Security Act (42
U.S.C. 1395 et seq.), and medical assistance
authorized under other federally funded
programs;
``(II) information on the availability of
assistance through benefits planning and
assistance programs authorized under section
1149 of the Social Security Act (42 U.S.C.
1320b-20) and services provided by the State
protection and advocacy system and authorized
under section 1150 of the Social Security Act
(42 U.S.C. 1320b-21); and
``(III) in the case of individuals who are
also eligible for a ticket under the Ticket to
Work and Self-Sufficiency Program established
under section 1148 of the Social Security Act
(42 U.S.C. 1320b-19), general information
regarding the options for using the ticket and
information on how to contact a program manager
of the Ticket to Work and Self-Sufficiency
Program to obtain information on approved
employment networks, on providers for the
benefits planning and assistance programs
described in subparagraph (B) in the State, and
on the services provided by the State
protection and advocacy system and described in
subparagraph (B).'';
(B) in paragraph (2)(E)--
(i) in clause (i)(II), by striking ``and''
after the semicolon;
(ii) in clause (ii), by striking the period
at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(iii) amended, as necessary, to include
the post-employment services and service
providers that are necessary for the individual
to maintain, regain, or advance in employment,
consistent with the individual's strengths,
resources, priorities, concerns, abilities,
capabilities, interests, and informed
choice.''; and
(C) in paragraph (3)--
(i) in subparagraph (B)(i)(I), by striking
``and personal assistance services'' and all
that follows and inserting ``mentoring
services, and personal assistance services,
including training in the management of such
services, and referrals described in section
103(a)(3) to the device reutilization programs
and device demonstrations described in
subparagraphs (B) and (D) of section 4(e)(2) of
the Assistive Technology Act of 1998 (42 U.S.C.
3003(e)(2)) through agreements developed under
section 101(a)(11)(G); and'';
(ii) in subparagraph (F)(ii), by striking
``and'' after the semicolon;
(iii) in subparagraph (G), by striking the
period at the end and inserting a semicolon;
and
(iv) by adding at the end the following:
``(H) for a student with a disability, the
description specified--
``(i) in subparagraph (A), which may be a
description of the student's projected post-
school employment outcome; and
``(ii) in subparagraph (B)(i), which shall
include the specific transition services
(including, as appropriate, work experience and
mentoring activities) needed to achieve the
student's employment outcome or projected
employment outcome; and
``(I) for an individual who is receiving assistance
from an employment network under the Ticket to Work and
Self-Sufficiency Program established under section 1148
of the Social Security Act (42 U.S.C. 1320b-19), a list
of the services that are listed in the individual work
plan that the individual developed with the employment
network under subsection (g) of that section.''; and
(2) in subsection (c)(7), by inserting ``that take into
consideration the informed choice of the individual'' after
``plan development''.

SEC. 414. VOCATIONAL REHABILITATION SERVICES.

Section 103 of the Rehabilitation Act of 1973 (29 U.S.C. 723) is
amended--
(1) in subsection (a)--
(A) in paragraph (5), by inserting ``literacy
services,'' after ``vocational adjustment services,'';
(B) by striking paragraph (15) and inserting the
following:
``(15) transition services for students with disabilities,
that facilitate the transition from school to postsecondary
life (including employment through the achievement of the
employment outcome identified in the individualized plan for
employment), including, in a transition services expansion
year, services described in subclauses (I) through (III) of
section 101(a)(25)(B)(ii);'';
(C) in paragraph (17), by striking ``and'' after
the semicolon;
(D) in paragraph (18), by striking the period at
the end and inserting ``; and''; and
(E) by adding at the end the following:
``(19) mentoring services.''; and
(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
postsecondary life, including employment.
``(ii) In a transition services expansion year, training
and technical assistance described in section
101(a)(25)(B)(ii)(IV).
``(B) In a transition services expansion year, services for
groups of individuals with disabilities who meet the
requirements of clauses (i), (ii), and (iv) of section
7(37)(A), including services described in subclauses (I), (II),
(III), and (V) of section 101(a)(25)(B)(ii), to assist in the
transition from school to postsecondary life, including
employment.''.

SEC. 415. STATE REHABILITATION COUNCIL.

Section 105 of the Rehabilitation Act of 1973 (29 U.S.C. 725) is
amended--
(1) in subsection (b)--
(A) in paragraph (1)(A)--
(i) by striking clause (ix) and inserting
the following:
``(ix) in a State in which one or more
projects provide services under section 121, at
least one representative of the directors of
the projects;'';
(ii) in clause (x), by striking the ``and''
after the semicolon;
(iii) in clause (xi), by striking the
period at the end and inserting ``; and''; and
(iv) by adding at the end the following:
``(xii) the director of the State's
comprehensive statewide program of technology-
related assistance funded under section 4 of
the Assistive Technology Act of 1998 (29 U.S.C.
3003).''; and
(B) by striking paragraph (5) and inserting the
following:
``(5) Chairperson.--The Council shall select a chairperson
from among the voting membership of the Council.''; and
(2) in subsection (c)(6), by inserting before the semicolon
the following: ``and with the activities of entities carrying
out programs under the Assistive Technology Act of 1998 (29
U.S.C. 3001 et seq.)''.

SEC. 416. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.

Section 106 of the Rehabilitation Act of 1973 (29 U.S.C. 726) is
amended--
(1) in subsection (a), 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
include measures of the program's performance with respect to
the transition from school to postsecondary life, including
employment, and achievement of the postsecondary vocational
goals, of students with disabilities served under the
program.''; and
(2) in subsection (b)(2)(B)(i), by striking ``, if
necessary'' and all that follows through the semicolon and
inserting ``, if the State has not improved its performance to
acceptable levels, as determined by the Commissioner, direct
the State to make further revisions to the plan to improve
performance, which may include revising the plan to allocate a
higher proportion of the State's resources (from allotments
made under section 110) for services to individuals with
disabilities if the State agency's spending on such services is
low in comparison to spending on such services by comparable
agencies in other States;''.

SEC. 417. MONITORING AND REVIEW.

Section 107(b)(1) of the Rehabilitation Act of 1973 (29 U.S.C.
727(b)(1)) is amended by inserting before the semicolon the following:
``, including--
``(A) consulting with the Department of Labor, the
Small Business Administration, other appropriate
Federal agencies, and businesses or business-led
intermediaries; and
``(B) based on information obtained through the
consultations, providing technical assistance that
improves that quality by enabling designated State
units to develop successful partnerships with local and
multi-State businesses in an effort to employ
individuals with disabilities, and technical assistance
on developing self-employment opportunities and
improving employment outcomes for individuals with
disabilities''.

SEC. 418. STATE ALLOTMENTS.

Section 110 of the Rehabilitation Act of 1973 (29 U.S.C. 730) is
amended--
(1) by striking subsection (b) and inserting the following:
``(b)(1) Not later than 45 days prior to the end of the fiscal
year, the Commissioner shall determine, after reasonable opportunity
for the submission to the Commissioner of comments by the State agency
administering or supervising the program established under this title,
that any amount from the payment of an allotment to a State under
section 111(a) for any fiscal year will not be utilized by such State
in carrying out the purposes of this title.
``(2)(A) As soon as practicable but not later than the end of the
fiscal year, the Commissioner shall reallot the amount available under
paragraph (1) to other States, consistent with subparagraphs (B) and
(C), for carrying out the purposes of this title to the extent the
Commissioner determines such other State will be able to use such
additional amount during that fiscal year or the subsequent fiscal year
for carrying out such purposes.
``(B)(i) The Commissioner shall reallot a portion of the amount
available under paragraph (1) for a fiscal year to each State whose
allotment under subsection (a) for such fiscal year is less than such
State's allotment under subsection (a) for the immediately preceding
fiscal year adjusted by the percentage change in the funds available
for subsection (a) from the immediately preceding fiscal year.
``(ii)(I) A State that is eligible to receive a reallotment under
clause (i) shall receive a portion for a fiscal year from the amount
available for reallotment under paragraph (1) that is equal to the
difference between--
``(aa) the amount such State was allotted under subsection
(a) for such fiscal year; and
``(bb) the amount such State was allotted under subsection
(a) for the immediately preceding fiscal year adjusted by the
percentage change in the funds available for subsection (a)
from the immediately preceding fiscal year.
``(II) If the amount available for reallotment under paragraph (1)
is insufficient to provide each State eligible to receive a reallotment
with the portion described in subclause (I), the amount reallotted to
each eligible State shall be determined by the Commissioner.
``(C) If there are funds remaining after each State eligible to
receive a reallotment under subparagraph (B)(i) receives the portion
described in subparagraph (B)(ii), the Commissioner shall reallot the
remaining funds among the States requesting a reallotment.
``(3) The Commissioner shall reallot an amount to a State under
this subsection only if the State will be able to make sufficient
payments from non-Federal sources to pay for the non-Federal share of
the cost of vocational rehabilitation services under the State plan for
the fiscal year for which the amount was appropriated.
``(4) For the purposes of this part, any amount made available to a
State for any fiscal year pursuant to this subsection shall be regarded
as an increase of such State's allotment (as determined under the
preceding provisions of this section) for such year.''; and
(2) by striking subsection (c)(2) and inserting the
following:
``(2)(A) In this paragraph:
``(i) The term `appropriated amount' means the amount
appropriated under section 100(b)(1) for allotment under this
section.
``(ii) The term `covered year' means a fiscal year--
``(I) that begins after September 30, 2005; and
``(II) for which the appropriated amount exceeds
the total of--
``(aa) the appropriated amount for the
preceding fiscal year; and
``(bb) 0.075 percent of the appropriated
amount for the preceding fiscal year.
``(B) For each covered year, the sum referred to in paragraph (1)
shall be, as determined by the Secretary--
``(i) not more than 1.5 percent of the appropriated amount
for the covered year; and
``(ii) not less than the total of the sum reserved under
this subsection for the preceding fiscal year and 0.1 percent
of the appropriated amount for the covered year, subject to
clause (i).
``(C) For each fiscal year that is not a covered year, the sum
referred to in paragraph (1) shall be, as determined by the Secretary--
``(i) not more than 1.5 percent of the appropriated amount
for the fiscal year; and
``(ii) not less than the sum reserved under this subsection
for the preceding fiscal year, subject to clause (i).''.

SEC. 419. 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 Commissioner under subsection (b) to carry out
programs and activities under sections 101(a)(25)(B) and 103(b)(6).
``(b) Calculation.--The Commissioner 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. 420. CLIENT ASSISTANCE PROGRAM.

Section 112 of the Rehabilitation Act of 1973 (29 U.S.C. 732) is
amended--
(1) in subsection (a)--
(A) in the first sentence, by striking ``States''
and inserting ``agencies designated under subsection
(c)''; and
(B) in the second sentence, by striking ``State''
and inserting ``State in which the program is
located'';
(2) in subsection (b), by striking ``the State has in
effect not later than October 1, 1984, a client assistance
program which'' and inserting ``the State has designated under
subsection (c) an agency that'';
(3) in subsection (e)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking ``The
Secretary'' and all that follows through the
period and inserting the following: ``After
reserving funds under subparagraphs (E) and
(F), the Secretary shall allot the remainder of
the sums appropriated for each fiscal year
under this section among the agencies
designated under subsection (c) within the
States (referred to individually in this
subsection as a `designated agency') on the
basis of relative population of each State,
except that no such agency shall receive less
than $50,000.'';
(ii) in subparagraph (B), by inserting
``the designated agencies located in'' after
``each to'';
(iii) in subparagraph (D)(i)--
(I) by inserting ``the designated
agencies located in'' after ``$100,000
for''; and
(II) by inserting ``the designated
agencies located in'' after ``$45,000
for''; and
(iv) by adding at the end the following:
``(E)(i) For any fiscal year for which the amount appropriated to
carry out this section equals or exceeds $13,000,000, the Secretary
shall reserve funds appropriated under this section to make a grant to
the protection and advocacy system serving the American Indian
Consortium to provide client assistance services in accordance with
this section. The amount of such a grant shall be the same amount as is
provided to a territory under subparagraph (B), as increased under
clauses (i) and (ii) of subparagraph (D).
``(ii) In this subparagraph:
``(I) The term `American Indian Consortium' has the meaning
given the term in section 102 of the Developmental Disabilities
Assistance and Bill of Rights Act of 2000 (42 U.S.C. 15002).
``(II) The term `protection and advocacy system' means a
protection and advocacy system established under subtitle C of
title I of the Developmental Disabilities Assistance and Bill
of Rights Act of 2000 (42 U.S.C. 15041 et seq.).
``(F) For any fiscal year for which the amount appropriated to
carry out this section equals or exceeds $14,000,000, the Secretary
shall reserve not less than 1.8 percent and not more than 2.2 percent
of such amount to provide a grant for training and technical assistance
for the programs established under this section. Such training and
technical assistance shall be coordinated with activities provided
under section 509(c)(1)(A).''; and
(B) in paragraph (2)--
(i) by striking ``State'' each place such
term appears and inserting ``designated
agency''; and
(ii) by striking ``States'' each place such
term appears and inserting ``designated
agencies'';
(4) in subsection (f), by striking ``State'' and inserting
``agency designated under subsection (c)'';
(5) in subsection (g)(1), by striking ``State'' and
inserting ``State in which the program is located''; and
(6) in subsection (h), by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2006 through
2011''.

SEC. 421. INCENTIVE GRANTS.

Part B of title I of the Rehabilitation Act of 1973 (29 U.S.C. 730
et seq.) is amended by adding at the end the following:

``SEC. 113. INCENTIVE GRANTS.

``(a) Authority.--The Commissioner is authorized to make incentive
grants to States that, based on the criteria established under
subsection (b)(1), demonstrate--
``(1) a high level of performance; or
``(2) a significantly improved level of performance in a
reporting period as compared to the previous reporting period
or periods.
``(b) Criteria.--
``(1) Establishment.--Not later than 180 days after the
date of enactment of this section, the Commissioner shall
establish, and publish in the Federal Register, criteria for
making grant awards under subsection (a).
``(2) Development and evaluation standards.--The criteria
established under paragraph (1) shall--
``(A) be developed with input from designated State
agencies and other vocational rehabilitation
stakeholders, including vocational rehabilitation
consumers and consumer organizations (including
advocacy organizations); and
``(B) be based upon the evaluation standards and
performance indicators established under section 106
and other performance-related measures that the
Commissioner determines to be appropriate.
``(c) Use of Funds.--A State that receives a grant under subsection
(a) shall use the grant funds for any approved activities in the
State's State plan submitted under section 101.
``(d) No Non-Federal Share Requirement.--The provisions of sections
101(a)(3) and 111(a)(2) shall not apply to this section.
``(e) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section such sums as may be necessary
for each of fiscal years 2006 through 2011.''.

SEC. 422. VOCATIONAL REHABILITATION SERVICES GRANTS.

Section 121 of the Rehabilitation Act of 1973 (29 U.S.C. 741) is
amended--
(1) in subsection (a), in the first sentence, by inserting
``, consistent with such individuals' strengths, resources,
priorities, concerns, abilities, capabilities, interests, and
informed choice, so that such individuals may prepare for, and
engage in, gainful employment'' before the period at the end;
and
(2) in subsection (b)--
(A) in paragraph (1)--
(i) in subparagraph (B), by striking
``and'' after the semicolon;
(ii) in subparagraph (C), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(D) contains assurances that--
``(i) all decisions affecting eligibility for
vocational rehabilitation services, the nature and
scope of available services, and the provision of such
services, will be made by a representative of the
tribal vocational rehabilitation program; and
``(ii) such decisions will not be delegated to
another agency or individual.'';
(B) in paragraph (3), by striking the first
sentence and inserting the following: ``An application
approved under this part that complies with the program
requirements set forth in the regulations promulgated
to carry out this part shall be effective for 5 years
and shall be renewed for additional 5-year periods if
the Commissioner determines that the grant recipient
demonstrated acceptable past performance and the grant
recipient submits a plan, including a proposed budget,
to the Commissioner that the Commissioner approves that
identifies future performance criteria, goals, and
objectives.''; and
(C) by striking paragraph (4) and inserting the
following:
``(4) In allocating funds under this part, the Commissioner shall
give priority to paying the continuation costs of projects in existence
on the date of the allocation and may provide for increases in funding
for such projects that the Commissioner determines to be necessary.''.

SEC. 423. GAO STUDIES.

(a) Study on Title I and Ticket to Work.--
(1) In general.--The Comptroller General of the United
States shall conduct a study on the interaction of programs
carried out under title I of the Rehabilitation Act of 1973 (29
U.S.C. 720 et seq.) with the Ticket to Work and Self-
Sufficiency Program established under section 1148 of the
Social Security Act (42 U.S.C. 1320b-19), including the impact
of the interaction on beneficiaries, community rehabilitation
programs (as defined in section 7 of the Rehabilitation Act of
1973 (29 U.S.C. 705)), and State vocational rehabilitation
agencies.
(2) Conduct of study.--In conducting the study under
paragraph (1), the Comptroller General of the United States
shall consult with all types of participants in the Ticket to
Work and Self-Sufficiency Program, including the Social
Security Administration, the Rehabilitation Services
Administration, ticketholders, designated State agencies,
entities carrying out such community rehabilitation programs
(including employment networks and nonemployment networks),
protection and advocacy agencies, MAXIMUS, and organizations
representing the interests of ticketholders.
(3) Report to congress.--Not later than 18 months after the
date of enactment of this Act, the Comptroller General of the
United States shall submit the study conducted pursuant to this
subsection to the appropriate committees of Congress.
(b) Study on the Allotment Formula.--
(1) In general.--The Comptroller General of the United
States shall conduct a study on the relationship between the
State allotment formula under section 110 of the Rehabilitation
Act of 1973 (29 U.S.C. 730) and the ability of States to
provide vocational rehabilitation services in accordance with
the States' State plans under section 101 of such Act (29
U.S.C. 721).
(2) Conduct of study.--In conducting the study under
paragraph (1), the Comptroller General of the United States
shall consult with appropriate entities.
(3) Report to congress.--Not later than 12 months after the
date of enactment of this Act, the Comptroller General of the
United States shall submit the study conducted pursuant to this
subsection to the appropriate committees of Congress.

Subtitle B--Research and Training

SEC. 431. DECLARATION OF PURPOSE.

Section 200(3) of the Rehabilitation Act of 1973 (29 U.S.C. 760(3))
is amended by inserting ``, in a timely and efficient manner,'' before
``through''.

SEC. 432. AUTHORIZATION OF APPROPRIATIONS.

Section 201 of the Rehabilitation Act of 1973 (29 U.S.C. 761) is
amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``fiscal years
1999 through 2003'' and inserting ``fiscal years 2006
through 2011''; and
(B) in paragraph (2), by striking ``fiscal years
1999 through 2003'' and inserting ``fiscal years 2006
through 2011''; and
(2) by adding at the end the following:
``(c) Of the sums appropriated under subsection (a)(1) for a fiscal
year, the Secretary may reserve not more than $200,000 for activities
related to convening a national assistive technology summit under
section 202(b)(6).''.

SEC. 433. NATIONAL INSTITUTE ON DISABILITY AND REHABILITATION RESEARCH.

Section 202 of the Rehabilitation Act of 1973 (29 U.S.C. 762) is
amended--
(1) in subsection (b)--
(A) in paragraph (6), by inserting before the
semicolon the following: ``, including convening a
national assistive technology summit, to be held at or
in conjunction with a national conference relating to
assistive technology with respect to all categories of
disabilities''; and
(B) in paragraph (10), by striking ``and
telecommuting'' and inserting ``, supported employment,
and telecommuting'';
(2) in subsection (f)(1)--
(A) by striking ``Federal employees'' and inserting
``Department of Education employees''; and
(B) by adding at the end the following: ``The peer
review panel shall include a director of a designated
State unit. Such panel shall include a member of the
covered school community (for an activity resulting in
educational materials or a product to be used in a
covered school), a member of the business community
(for an activity resulting in a product to be used in
an employment activity), an assistive technology
developer or manufacturer (for an activity relating to
assistive technology), or an accessible electronic and
information technology vendor or manufacturer (for an
activity relating to accessible electronic and
information technology).'';
(3) by redesignating subsections (i), (j), and (k) as
subsections (j), (k), and (l), respectively;
(4) by inserting after subsection (h) the following:
``(i)(1) The Director, with the assistance of the Rehabilitation
Research Advisory Council established under section 205, shall
determine if entities that receive financial assistance under this
title are complying with the applicable requirements of this Act and
achieving measurable goals, described in section 204(d)(2), that are
consistent with the requirements of the programs under which the
entities received the financial assistance.
``(2) To assist the Director in carrying out the responsibilities
described in paragraph (1), the Director shall require recipients of
financial assistance under this title to submit relevant information to
evaluate program outcomes with respect to the measurable goals
described in section 204(d)(2).''; and
(5) by adding at the end the following:
``(m)(1) Not later than December 31 of each year, the Director
shall prepare, and submit to the Secretary, the Committee on Education
and the Workforce of the House of Representatives, and the Committee on
Health, Education, Labor, and Pensions of the Senate, a report on the
activities funded under this title.
``(2) Such report shall include--
``(A) a compilation and summary of the information provided
by recipients of financial assistance for such activities under
this title; and
``(B) a summary of the applications for financial
assistance received under this title and the progress of the
recipients of financial assistance in achieving the measurable
goals described in section 204(d)(2).
``(n)(1) If the Director determines that an entity that receives
financial assistance under this title fails to comply with the
applicable requirements of this Act, or to make progress toward
achieving the measurable goals described in section 204(d)(2), with
respect to the covered activities involved, the Director shall assist
the entity through technical assistance or other means, within 90 days
after such determination, to develop a corrective action plan.
``(2) If the entity fails to develop and comply with a corrective
action plan described in paragraph (1) during a fiscal year, the entity
shall be subject to 1 of the following corrective actions selected by
the Director:
``(A) Partial or complete termination of financial
assistance for the covered activities, until the entity
develops and complies with such a plan.
``(B) Ineligibility to receive financial assistance for
such covered activities for the following year.
``(3) The Secretary shall establish appeals procedures for entities
described in paragraph (1) that the Secretary determines fail to comply
with the applicable requirements of this Act, or to make progress
toward achieving the measurable goals.
``(4) As part of the annual report required under subsection (m),
the Director shall describe each action taken by the Director under
paragraph (1) or (2) and the outcomes of such action.''.

SEC. 434. INTERAGENCY COMMITTEE.

Section 203 of the Rehabilitation Act of 1973 (29 U.S.C. 763) is
amended--
(1) in subsection (a)(1), by striking ``and the Director of
the National Science Foundation'' and inserting ``the Director
of the National Science Foundation, the Secretary of Commerce,
and the Administrator of the Small Business Administration'';
and
(2) in subsection (b)(2)--
(A) in subparagraph (D), by striking ``and'' after
the semicolon;
(B) in subparagraph (E), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(F) conduct a study, on the assistive technology
industry, for which the Committee shall--
``(i) determine the number of individuals who use
assistive technology and the scope of the technologies
they use;
``(ii) separately identify categories of assistive
technology companies by the disability group served,
and the type of product or service provided,
categorized by--
``(I) size (small, medium, and large) of
the companies;
``(II) capitalization of the companies;
``(III) region in which the companies are
located; and
``(IV) products or services produced by the
companies;
``(iii) compile aggregate data on revenues and unit
sales of such companies, including information on
international sales, for a recent reporting period,
categorized by institution or user type acquiring the
products or services, disability for which the products
or services are used, and industry segment for the
companies;
``(iv) identify platform availability and usage,
for those products and services that are electronic and
information technology-related;
``(v) identify the types of clients of the
companies, such as Government, school, business,
private payor, and charitable clients, and funding
sources for the clients; and
``(vi) specify geographic segments for the
companies, to determine whether there are significant
distinctions in industry opportunities on the basis of
geography, other than distinctions related to
population.''.

SEC. 435. RESEARCH AND OTHER COVERED ACTIVITIES.

Section 204 of the Rehabilitation Act of 1973 (29 U.S.C. 764) is
amended--
(1) in subsection (a)--
(A) in paragraph (2)(B)--
(i) in clause (vi), by striking ``and''
after the semicolon;
(ii) in clause (vii), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(viii) studies, analyses, and other activities affecting
employment outcomes, including self-employment and
telecommuting, of individuals with disabilities.''; and
(B) by adding at the end the following:
``(3) In carrying out this section, the Director shall emphasize
covered activities that are collaborations between--
``(A) for-profit companies working in the assistive
technology, rehabilitative engineering, or information
technology fields; and
``(B) States or public or private agencies and
organizations.
``(4) In carrying out this section, the Director shall emphasize
covered activities that include plans for--
``(A) dissemination of educational materials, research
results, or findings, conclusions, and recommendations
resulting from covered activities; or
``(B) the commercialization of marketable products
resulting from the covered activities.'';
(2) in subsection (b)--
(A) in paragraph (1), by striking ``(18)'' each
place it appears and inserting ``(19)'';
(B) in paragraph (2)--
(i) in subparagraph (A)(i), by striking
``rehabilitation services or'' and inserting
``rehabilitation services, developers or
providers of assistive technology devices,
assistive technology services, or information
technology devices or services, or providers
of'';
(ii) in subparagraph (B)--
(I) in clause (i), by inserting
``improve the evaluation process for
determining the assistive technology
needs of individuals with
disabilities,''after ``conditions,'';
(II) in clause (ii), by inserting
``and assistive technology services''
before the semicolon; and
(III) in clause (iii), by inserting
``, assistive technology services
personnel,'' before ``and other'';
(iii) in subparagraph (C)--
(I) in clause (i), by inserting ``,
including research on assistive
technology devices, assistive
technology services, and accessible
electronic and information technology
devices'' before the semicolon; and
(II) in clause (iii), by inserting
``, including the use of assistive
technology devices and accessible
electronic and information technology
devices in employment'' before the
semicolon;
(iv) in subparagraph (D), by inserting ``,
including training to provide knowledge about
assistive technology devices, assistive
technology services, and accessible electronic
and information technology devices and
services,'' after ``personnel''; and
(v) in subparagraph (G)(i), by inserting
``, assistive technology-related, and
accessible electronic and information
technology-related'' before ``courses'';
(C) in paragraph (3)--
(i) in subparagraph (D)(ii), by adding at
the end the following: ``Each such Center
conducting an activity relating to assistive
technology or relating to accessible electronic
and information technology shall include in the
committee an assistive technology developer or
manufacturer, or an accessible electronic and
information technology vendor or manufacturer,
respectively. Each such Center conducting an
activity resulting in educational materials or
a product to be used in a covered school, or
resulting in a product to be used in an
employment activity, shall include in the
committee a member of the covered school
community, or a member of the business
community, respectively.''; and
(ii) in subparagraph (G)(ii) by inserting
``the success of any commercialized product
researched or developed through the Center,''
after ``disabilities,'';
(D) in paragraph (8), by inserting ``the Department
of Commerce, the Small Business Administration, the
Department of Labor,'' before ``other Federal
agencies,'';
(E) in paragraph (13), in the matter preceding
subparagraph (A), by striking ``employment needs of
individuals with disabilities'' and inserting
``employment needs, opportunities, and outcomes,
including needs, opportunities, and outcomes relating
to self-employment, supported employment, and
telecommuting, of individuals with disabilities,
including older individuals with disabilities, and
students with disabilities who are transitioning from
school to postsecondary life, including employment'';
and
(F) by adding at the end the following:
``(19) Research grants may be used to provide for research and
demonstration projects that--
``(A) explore methods and practices for promoting access to
electronic commerce activities for individuals with
disabilities; and
``(B) will--
``(i) ensure dissemination of research findings;
``(ii) provide encouragement and support for
initiatives and new approaches by companies engaged in
electronic commerce activities; and
``(iii) result in the establishment and maintenance
of close working relationships between the disability,
research, and business communities.'';
(3) in subsection (c)(2), by striking ``$500,000'' and
inserting ``$750,000''; and
(4) by adding at the end the following:
``(d)(1) In awarding grants, contracts, or other financial
assistance under this title, the Director shall award the financial
assistance on a competitive basis.
``(2)(A) To be eligible to receive financial assistance described
in paragraph (1) for a covered activity, an entity shall submit an
application to the Director at such time, in such manner, and
containing such information as the Director may require.
``(B) The application shall include information describing--
``(i) measurable goals, and a timeline and specific plan
for meeting the goals, that the applicant has set for
addressing priorities related to--
``(I) commercialization of a marketable product
(including a marketable curriculum or research)
resulting from the covered activity;
``(II) in the case of a covered activity relating
to technology, technology transfer;
``(III) in the case of research, dissemination of
research results to, as applicable, Government
entities, individuals with disabilities, covered
schools, the business community, the assistive
technology community, and the accessible electronic and
information technology community; and
``(IV) other matters as required by the Director;
and
``(ii) information describing how the applicant will
quantifiably measure the goals to determine whether the goals
have been accomplished.
``(3)(A) In the case of an application for financial assistance
under this title to carry out a covered activity that results in the
development of a marketable product, the application shall also include
a commercialization and dissemination plan, containing
commercialization and marketing strategies for the product involved,
and strategies for disseminating information about the product. The
financial assistance shall not be used to carry out the
commercialization and marketing strategies.
``(B) In the case of any other application for financial assistance
to carry out a covered activity under this title, the application shall
also include a dissemination plan, containing strategies for
disseminating educational materials, research results, or findings,
conclusions, and recommendations, resulting from the covered
activity.''.

SEC. 436. REHABILITATION RESEARCH ADVISORY COUNCIL.

Section 205 of the Rehabilitation Act of 1973 (29 U.S.C. 765) is
amended--
(1) in subsection (a), by inserting ``at least'' before
``12''; and
(2) in subsection (c), by inserting after ``rehabilitation
researchers,'' the following: ``the directors of community
rehabilitation programs, the business community (and shall
include a representative of the small business community) that
has experience with the system of vocational rehabilitation
services carried out under this Act and with hiring individuals
with disabilities, the community of assistive technology
developers and manufacturers, the community of information
technology vendors and manufacturers, the community of entities
carrying out programs under the Assistive Technology Act of
1998 (29 U.S.C. 3001 et seq.), the community of covered school
professionals,''.

SEC. 437. DEFINITION.

Title II of the Rehabilitation Act of 1973 (29 U.S.C. 760 et seq.)
is amended by adding at the end the following:

``SEC. 206. DEFINITION.

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

Subtitle C--Professional Development and Special Projects and
Demonstrations

SEC. 441. TRAINING.

Section 302 of the Rehabilitation Act of 1973 (29 U.S.C. 772) is
amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) in subparagraph (F), by striking the
``and'' after the semicolon;
(ii) in subparagraph (G), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following:
``(H) personnel trained in providing assistive
technology services.''; and
(B) in paragraph (4)(B), by striking ``section
134(c)'' and inserting ``section 121(e)'';
(2) in subsection (b)(1)(B)(i), by striking ``or
prosthetics and orthotics'' and inserting ``prosthetics and
orthotics, rehabilitation teaching for the blind, or
orientation and mobility instruction''; and
(3) in subsection (i), by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2006 through
2011''.

SEC. 442. DEMONSTRATION AND TRAINING PROGRAMS.

Section 303 of the Rehabilitation Act of 1973 (29 U.S.C. 773) is
amended--
(1) in subsection (b)(5)(A)(i), by striking ``special
projects'' and inserting ``not less than 2 special projects'';
(2) by redesignating subsections (c), (d), and (e) as
subsections (h), (i), and (j), respectively;
(3) by inserting after subsection (b) the following:
``(c) Demonstration Projects for Employment of Students With
Intellectual Disabilities or Mental Illness.--
``(1) Purpose.--The purpose of this subsection is to
support model demonstration projects to provide supported and
competitive employment experiences for students with
intellectual disabilities or students with mental illness, and
training for personnel that work with students described in
this paragraph, to enable the students to gain employment
skills and experience that will promote effective transitions
from school to postsecondary life, including employment.
``(2) Awards authorized.--
``(A) Competitive awards authorized.--The
Commissioner may award grants, contracts, and
cooperative agreements, on a competitive basis, to
eligible organizations described in paragraph (3), to
enable the organizations to carry out demonstration
projects described in paragraph (1).
``(B) Duration.--The Commissioner shall award
grants, contracts, and cooperative agreements under
this subsection for periods of 3 to 5 years.
``(3) Eligible organizations.--To be eligible to receive a
grant, contract, or cooperative agreement under this
subsection, an organization shall--
``(A) have expertise in providing employment and
support services for individuals with intellectual
disabilities or individuals with mental illness;
``(B) have a proven track record in successfully
running supported employment programs;
``(C) provide employment services that are
exclusively integrated community-based supported
employment services;
``(D) have expertise in creating natural supports
for employment;
``(E) have expertise in providing computer training
for the targeted population for the project involved;
and
``(F) have experience operating mentoring programs
for the target population in middle and high schools
for at least a decade in diverse communities throughout
the Nation.
``(4) Applications.--Each organization desiring to receive
a grant, contract, or cooperative agreement under this
subsection shall submit an application to the Commissioner at
such time, in such manner, and including such information as
the Commissioner may require. Each application shall include--
``(A) a description of how the organization plans
to carry out the activities authorized in this
subsection through a demonstration project;
``(B) a description of how the organization will
evaluate the project;
``(C) a description of how the organization will
disseminate information about the activities and the
impact of the activities on the lives of students
served by the project; and
``(D) a description of how the organization will
coordinate activities with any other relevant service
providers in the locality where the organization is
based, including federally supported independent living
centers.
``(5) Authorized activities.--An organization that receives
a grant, contract, or cooperative agreement under this
subsection shall use the funds made available through the
grant, contract, or cooperative agreement to carry out 1 or
more of the following activities for individuals, ages 14
through 21, who are students with intellectual disabilities or
students with mental illness:
``(A) Providing supported and competitive
employment experiences.--The development of innovative
and effective supported and competitive employment
experiences after school, on weekends, and in the
summer, utilizing natural supports that lead to
competitive high-paying jobs.
``(B) Providing training to school and transition
personnel.--The development and deployment of experts
to work with transition programs (including personnel
working with students on transition) so that personnel
from the programs develop skills needed to train
students with intellectual disabilities or students
with mental illness to be successful in competitive
employment in a range of settings, including office
settings. The training shall include training for the
personnel in providing instruction to students in
computer skills, office skills, interview etiquette,
and appropriate social behavior required for successful
long-term employment in professional environments.
``(6) Authorization of appropriations.--There are
authorized to be appropriated to carry out this subsection
$5,000,000 for fiscal year 2006 and such sums as may be
necessary for fiscal years 2007 through 2011.
``(d) Demonstration Project for Employment of Individuals who are
Deaf and Low Functioning.--
``(1) Purpose.--The purpose of this subsection is to
support a model demonstration project to provide training and
employment and support services for individuals who are deaf
and low functioning to enable them to gain employment skills
that will allow them to become employed and economically self-
sufficient.
``(2) Definition.--
``(A) In general.--In this subsection, the term
`individual who is deaf and low functioning' means an
individual who has been deaf from birth or very early
childhood, reads at or below the second grade level,
has little or no intelligible speech, and lacks a
secondary school diploma or its recognized equivalent.
``(B) Secondary disabilities.--Such term may
include an individual with a secondary disability.
``(3) Grants authorized.--
``(A) Competitive grants authorized.--The
Commissioner may award grants to State agencies, other
public agencies or organizations, or not-for-profit
organizations with expertise in providing training and
employment and support services for individuals who are
deaf and low functioning to support model demonstration
projects.
``(B) Duration.--Grants under this subsection shall
be awarded for a period not to exceed 5 years.
``(4) Authorized activities.--
``(A) Developing a comprehensive training
program.--Each grant recipient under this subsection
shall develop an innovative, comprehensive training
program for individuals who are deaf and low
functioning that can be implemented at multiple
training locations through such means as distance
learning and use of advanced technology, as
appropriate. Such training program shall be developed
to maximize the potential for replication of the
program by other training providers.
``(B) Implementation.--Each grant recipient under
this subsection shall implement the comprehensive
training program developed under subparagraph (A) as
soon as feasible. Such training shall provide
instruction on the job and the social skills necessary
for successful long-term employment of individuals who
are deaf and low functioning.
``(C) Establishing a post-training program of
employment and support services.--Each grant recipient
under this subsection shall implement employment and
support services to assist individuals who complete the
training program under subparagraph (A) in securing
employment and transitioning to the workplace, for a
period of not less than 90 days subsequent to placement
in the employment.
``(5) Applications.--Each entity desiring to receive a
grant under this subsection for a model demonstration project
shall submit an application to the Commissioner at such time,
in such manner, and accompanied by such information as the
Commissioner may require including--4    ``(A) a description of
how the applicant plans to address the activities authorized
under this subsection;
``(B) a description of the evaluation plan to be
used in the model demonstration project;
``(C) a description of how the applicant will
disseminate information about the training program
developed and the results of the project; and
``(D) a description of how the entity will
coordinate activities with any other relevant service
providers or entities providing training and employment
and support services for individuals who are deaf and
low functioning.
``(6) Mandated evaluation and dissemination activities.--
``(A) Annual report.--Not later than 2 years after
the date on which a grant under this subsection is
awarded and annually thereafter, the grant recipient
shall submit to the Commissioner a report containing
information on--
``(i) the number of individuals who are
participating in the demonstration project
funded under this subsection;
``(ii) the employment and other skills
being taught in the project;
``(iii) the number of individuals
participating in the project that are placed in
employment;
``(iv) the job sites in which those
individuals are placed and the type of jobs the
individuals are placed in; and
``(v) the number of individuals who have
dropped out of the project and the reasons for
their terminating participation in the project.
``(B) Evaluation of the project.--Each grant
recipient under this subsection shall implement the
evaluation plan approved in its application for
determining the results of the project within the
timeframe specified in, and following the provisions
of, the approved application.
``(C) Participant evaluation process; final
evaluation.--In the final year of the project, the
grant recipient will prepare and submit to the
Commissioner a final evaluation report of the results
of the model demonstration project containing--
``(i) information on--
``(I) the number of individuals who
participated in the demonstration
project;
``(II) the number of those
individuals that are placed in
employment;
``(III) the job sites in which
those individuals were placed and the
type of jobs the individuals were
placed in;
``(IV) the number of those
individuals who have dropped out of the
project and the reasons for their
terminating participation in the
project; and
``(V) the number of those
individuals who participated in the
project and who remain employed as of 2
months prior to the date on which the
final report is submitted to the
Commissioner;
``(ii) a written analysis of the project,
including both the strengths and weaknesses of
the project, to assist other entities in
replicating the training program developed
through the project; and
``(iii) such other information as the
Commissioner determines appropriate.
``(D) Dissemination.--Not later than 5 years after
the date on which a grant is awarded under this
subsection, the evaluation report containing results of
activities funded by such grant shall be disseminated
to designated State agencies, school systems providing
instruction to students who are individuals who are
deaf and low functioning, supported employment
providers, postsecondary vocational training programs,
employers, the Social Security Administration, and
other interested parties.
``(7) Authorization of appropriations.--There are
authorized to be appropriated to carry out this subsection,
$5,000,000 for fiscal year 2006 and such sums as may be
necessary for each of fiscal years 2007 through 2011.
``(e) Training and Technical Assistance Center To Promote High-
Quality Employment Outcomes for Individuals Receiving Services from
Designated State Agencies.--
``(1) In general.--The Commissioner shall award a grant,
contract, or cooperative agreement to an entity to support a
training and technical assistance program that--
``(A) responds to State-specific information
requests concerning high-quality employment outcomes,
from designated State agencies funded under title I,
including--
``(i) requests for information on the
expansion of self-employment, business
ownership, and business development
opportunities, and other types of
entrepreneurial employment opportunities for
individuals with disabilities;
``(ii) requests for information on the
expansion and improvement of transition
services to facilitate the transition of
students with disabilities from school to
postsecondary life, including employment;
``(iii) requests for examples of policies,
practices, procedures, or regulations, that
have enhanced or may enhance access to funding
for assistive technology devices and assistive
technology services for individuals with
disabilities;
``(iv) requests for information on
effective approaches to enhance informed choice
and a consumer-directed State vocational
rehabilitation system;
``(v) requests for assistance developing
corrective action plans;
``(vi) requests for assistance in
developing and implementing effective data
collection and reporting systems that measure
the outcomes of the vocational rehabilitation
services, and preparing reports for the
Commissioner as described in section 106(b)(1);
and
``(vii) requests for information on
effective approaches that enhance employment
outcomes for individuals with disabilities,
including conducting outreach and forming
partnerships with business and industry; and
``(B) provides State-specific, regional, and
national training and technical assistance concerning
vocational rehabilitation services and related
information to designated State agencies, including--
``(i) facilitating onsite and electronic
information sharing using state-of-the-art
Internet technologies such as real-time online
discussions, multipoint video conferencing, and
web-based audio/video broadcasts, on emerging
topics that affect vocational rehabilitation
programs authorized under title I;
``(ii) enabling the designated State
agencies to coordinate training and data
collection efforts with one-stop centers
established under section 121(e) of the
Workforce Investment Act of 1998 (29 U.S.C.
2841(e));
``(iii) enabling the designated State
agencies to provide information on how the
vocational rehabilitation programs authorized
under title I can provide technical assistance
to the one-stop centers on making programs
offered through the centers physically and
programmatically accessible to individuals with
disabilities;
``(iv) sharing evidence-based and promising
practices among the vocational rehabilitation
programs;
``(v) maintaining an accessible website
that includes links to--
``(I) the vocational rehabilitation
programs;
``(II) appropriate Federal
departments and agencies, and private
associations;
``(III) State assistive technology
device and assistive technology service
demonstration programs, device loan
programs, device reutilization
programs, alternative financing
systems, or State financing activities,
operated through, or independently of,
comprehensive statewide programs of
technology-related assistance carried
out under section 4 of the Assistive
Technology Act of 1998 (29 U.S.C.
3003), telework programs, and other
programs that provide sources of
funding for assistive technology
devices; and
``(IV) various programs, including
programs with tax credits, available to
employers for hiring or accommodating
employees who are individuals with
disabilities;
``(vi) enhancing employment outcomes for
individuals with mental illness and individuals
with cognitive disabilities;
``(vii) convening experts from the
vocational rehabilitation programs to discuss
and make recommendations with regard to the
employment of individuals with disabilities and
national emerging issues of importance to
individuals with vocational rehabilitation
needs;
``(viii) enabling the designated State
agencies to provide practical information on
effective approaches for business and industry
to use in employing individuals with
disabilities, including provision of reasonable
accommodations;
``(ix) providing information on other
emerging issues concerning the delivery of
publicly funded employment and training
services and supports to assist individuals
with disabilities to enter the workforce,
achieve improved employment outcomes, and
become economically self-sufficient; and
``(x) carrying out such other activities as
the Commissioner may require.
``(2) Eligible entities.--To be eligible to receive a
grant, contract, or cooperative agreement under this
subsection, an entity shall have (or agree to award a grant or
contract to an entity that has)--
``(A) experience and expertise in administering
vocational rehabilitation services;
``(B) documented experience with and knowledge
about self-employment, business ownership, business
development, and other types of entrepreneurial
employment opportunities and outcomes for individuals
with disabilities, providing transition services for
students with disabilities, and assistive technology;
and
``(C) the expertise necessary to identify the
additional data elements needed to provide
comprehensive reporting of activities and outcomes of
the vocational rehabilitation programs authorized under
title I, and experience in utilizing data to provide
annual reports.
``(3) Collaboration.--In developing and providing training
and technical assistance under this subsection, a recipient of
a grant, contract, or cooperative agreement under this
subsection shall collaborate with other organizations, in
particular--
``(A) agencies carrying out vocational
rehabilitation programs under title I and national
organizations representing such programs;
``(B) organizations representing individuals with
disabilities;
``(C) organizations representing State officials
and agencies engaged in the delivery of assistive
technology;
``(D) relevant employees from Federal departments
and agencies, other than the Department of Education;
``(E) representatives of businesses;
``(F) individuals with disabilities who use
assistive technology and understand the barriers to the
acquisition of such technology and assistive technology
services; and
``(G) family members, guardians, advocates, and
authorized representatives of such individuals.
``(f) Access to Telework.--
``(1) Definition of telework.--In this subsection, the term
`telework' means work from home and other telework sites with
the assistance of a computer and with reasonable
accommodations, including the necessary equipment to facilitate
successful work from home and other telework sites.
``(2) Authorization of program.--The Commissioner is
authorized to make grants to States and governing bodies of
Indian tribes located on Federal and State reservations (and
consortia of such governing bodies) to pay for the Federal
share of the cost of establishing or expanding a telework
program.
``(3) Application.--A State or Indian tribe that desires to
receive a grant under this subsection shall submit an
application to the Commissioner at such time, in such manner,
and containing such information as the Commissioner may
require.
``(4) Use of funds.--
``(A) In general.--A State or Indian tribe that
receives a grant under this subsection shall establish
or expand a telework program that shall provide
assistance through loans or other alternative financing
mechanisms to individuals with disabilities. The State
or Indian tribe shall provide the assistance through
the program to enable such individuals to purchase
computers or other equipment, including adaptive
equipment, to facilitate access to employment and
enhance employment outcomes by providing the individual
with the opportunity--
``(i) to work from home or other telework
sites so that such individuals are able to
telework; or
``(ii) to become self-employed on a full-
time or part-time basis from home or other
telework sites.
``(B) Development of telework opportunities and
business plans.--A State or Indian tribe that receives
a grant under this subsection may use not more than 10
percent of the grant award to develop telework
opportunities with employers and assist in the
development of business plans for individuals with
disabilities interested in self-employment, before such
individuals apply for assistance through the telework
program.
``(C) Self employment.--A State or Indian tribe
that receives a grant under this subsection shall enter
into cooperative agreements with small business
development centers for the development of business
plans as described in section 103(a)(13) for
individuals described in subparagraph (B), and provide
assurances that the State or Indian tribe will, through
plans to achieve self-support, vocational
rehabilitation services, or other means, identify ways
for the individuals described in subparagraph (B) to
pay for the development of business plans, before such
individuals apply for assistance through the telework
program.
``(D) Definitions.--In this paragraph:
``(i) Plan to achieve self-support.--The
term `plan to achieve self-support' means a
plan described in sections 416.1180 through
416.1182 of title 20, Code of Federal
Regulations (or any corresponding similar
regulation or ruling).
``(ii) Small business development center.--
The term `small business development center'
means a center established under section 21 of
the Small Business Act (15 U.S.C. 648).
``(5) Federal share.--The Federal share of the cost of
establishing or expanding a telework program under this section
shall be 90 percent of the cost.
``(6) Existing grant recipients.--An entity that receives a
grant under the Access to Telework Fund Program under
subsection (b) for a fiscal year may use the funds made
available through that grant for that fiscal year in accordance
with this subsection rather than subsection (b).
``(7) Annual report.--
``(A) In general.--A State or Indian tribe that
receives a grant under this subsection shall prepare
and submit an annual report to the Commissioner.
``(B) Contents.--The report under subparagraph (A)
shall include the following:
``(i) Information on the characteristics of
each individual with a disability that receives
assistance through a loan or other alternative
financing mechanism under the program,
including information about the individual such
as the following:
``(I) Age.
``(II) Employment status at the
time of application for assistance
through a loan or other alternative
financing mechanism under this
subsection.
``(III) Whether the individual
attempted to secure financial support
from other sources to enable the
individual to telework and, if so, a
description of such sources.
``(IV) Whether the individual is
working and, if so, whether the
individual teleworks, the occupation in
which the individual is working, the
hourly salary the individual receives,
and the hourly salary of the individual
prior to receiving assistance through a
loan or other alternative financing
mechanism under the program.
``(V) Whether the individual has
repaid assistance from the loan or
other alternative financing mechanism
received under the program, is in
repayment status, is delinquent on
repayments, or has defaulted on the
assistance from the loan or other
alternative financing mechanism.
``(ii) An analysis of the individuals with
disabilities that have benefited from the
program.
``(iii) Any other information that the
Commissioner may require.
``(g) Grants for Disability Career Pathways Program.--
``(1) Definitions.--In this subsection:
``(A) Center for independent living.--The term
`center for independent living' means a center for
independent living funded under subtitle C of title
VII.
``(B) Covered institution.--The term `covered
institution' means--
``(i) a secondary school; and
``(ii) in the discretion of the eligible
consortium involved, an institution of higher
education.
``(C) Eligible consortium.--The term `eligible
consortium' means a consortium described in paragraph
(3)(A).
``(D) Secondary school.--The term `secondary
school' has the meaning given the term in section 9101
of the Elementary and Secondary Education Act of 1965
(20 U.S.C. 7801).
``(2) Purpose of program.--The Commissioner may establish a
Disability Career Pathways program, through which the
Commissioner may make grants, for periods of not more than 5
years, to institutions of higher education that establish
eligible consortia, to enable the consortia to develop and
carry out training and education related to disability studies
and leadership development. The consortia shall provide the
training and education for the purpose of providing career
pathways for students at a covered institution, in fields
pertinent to individuals with disabilities, and particularly
pertinent to the employment of individuals with disabilities.
``(3) Application.--To be eligible to receive a grant under
this subsection on behalf of a consortium, an institution of
higher education shall submit an application to the
Commissioner at such time, in such manner, and containing such
information as the Commissioner may require, including
information demonstrating--
``(A) that the institution of higher education has
established a consortium of members that represent--
``(i) the institution of higher education;
``(ii) a community college;
``(iii) a secondary school;
``(iv) a center for independent living;
``(v) a designated State agency;
``(vi) a one-stop center established under
section 121(e) of the Workforce Investment Act
of 1998 (29 U.S.C. 2841(e)); and
``(vii) the local business community;
``(B) the collaborative working relationships
between the institution of higher education and the
other members of the consortium, and describing the
activities that each member shall undertake; and
``(C) the capacity and expertise of the institution
of higher education--
``(i) to coordinate training and education
related to disability studies and leadership
development with educational institutions and
disability-related organizations; and
``(ii) to conduct such training and
education effectively.
``(4) Distribution of grants.--In making grants under this
subsection, the Commissioner shall ensure that the grants shall
be distributed for a geographically diverse set of eligible
consortia throughout all regions.
``(5) Mandatory uses of funds.--An institution of higher
education that receives a grant under this subsection on behalf
of a consortium shall ensure that the consortium shall use the
grant funds to--
``(A) encourage interest in, enhance awareness and
understanding of, and provide educational opportunities
in, disability-related fields, and encourage leadership
development among students served by a covered
institution, including such students who are
individuals with disabilities;
``(B) enable the students at a covered institution
to gain practical skills and identify work experience
opportunities, including opportunities developed by the
consortium in conjunction with the private sector, that
benefit individuals with disabilities;
``(C) develop postsecondary school career pathways
leading to gainful employment, the attainment of an
associate or baccalaureate degree, or the completion of
further coursework or a further degree, in a
disability-related field;
``(D) offer credit-bearing, college-level
coursework in a disability-related field to qualified
students served by a covered institution; and
``(E) ensure faculty and staff employed by the
members of the consortium are available to--
``(i) students at a covered institution for
educational and career advising; and
``(ii) teachers and staff of a covered
institution for disability-related training.
``(6) Permissible uses of funds.--An institution of higher
education that receives a grant under this subsection on behalf
of a consortium may permit the consortium to use the grant
funds to develop or adapt disabilities studies curricula,
including curricula with distance learning opportunities, for
use at covered institutions, to encourage students served by
such covered institutions to enter careers in disability-
related fields.
``(7) Consultation.--The consortium shall consult with
appropriate agencies that serve or assist individuals with
disabilities, and the parents, family members, guardians,
advocates, or authorized representatives of the individuals,
located in the jurisdiction served by the consortium,
concerning the program of education and training carried out by
the consortium.
``(8) Reviews.--
``(A) Advisory committee.--For an institution of
higher education to be eligible to receive a grant
under this subsection on behalf of a consortium, the
consortium shall have an advisory committee that
consists of members that represent the interests of
individuals with disabilities, including--
``(i) a professional in the field of
vocational rehabilitation;
``(ii) an individual with a disability or a
family member of such an individual; and
``(iii) a representative of each type of
entity or community represented on the
consortium.
``(B) Quarterly reviews.--The advisory committee
shall meet at least once during each calendar quarter
to conduct a review of the program of education and
training carried out by the consortium. The committee
shall directly advise the governing board of the
institution of higher education in the consortium about
the views and recommendations of the advisory committee
resulting from the review.
``(9) Accountability.--Every 2 years, the Commissioner
shall--
``(A) using information collected from the reviews
required in paragraph (8), assess the effectiveness of
the Disability Career Pathways program carried out
under this subsection, including assessing how many
individuals were served by each eligible consortium and
how many of those individuals received postsecondary
education, or entered into employment, in a disability-
related field; and
``(B) prepare and submit to Congress a report
containing the results of the assessments described in
subparagraph (A).''; and
(4) in subsection (j), as redesignated by paragraph (2)--
(A) by striking ``There'' and inserting the
following:
``(1) In general.--There'';
(B) in paragraph (1), as designated by subparagraph
(A)--
(i) by striking ``this section'' and
inserting ``this section (other than
subsections (c) and (d))''; and
(ii) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years
2006 through 2011''; and
(C) by adding at the end the following:
``(2) Reservations.--Of the sums appropriated under
paragraph (1) for a fiscal year, the Secretary may reserve--
``(A) not more than $500,000 to carry out
subsection (e);
``(B) not more than $5,000,000 to carry out
subsection (f); and
``(C) not more than $5,000,000 to carry out
subsection (g).''.

SEC. 443. MIGRANT AND SEASONAL FARMWORKERS.

Section 304(b) of the Rehabilitation Act of 1973 (29 U.S.C. 774(b))
is amended by striking ``fiscal years 1999 through 2003'' and inserting
``fiscal years 2006 through 2011''.

SEC. 444. RECREATIONAL PROGRAMS.

Section 305 of the Rehabilitation Act of 1973 (29 U.S.C. 775) is
amended--
(1) in subsection (a)(1)(B), by striking ``construction of
facilities for aquatic rehabilitation therapy,''; and
(2) in subsection (b), by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2006 through
2011''.

Subtitle D--National Council on Disability

SEC. 451. AUTHORIZATION OF APPROPRIATIONS.

Section 405 of the Rehabilitation Act of 1973 (29 U.S.C. 785) is
amended by striking ``fiscal years 1999 through 2003'' and inserting
``fiscal years 2006 through 2011''.

Subtitle E--Rights and Advocacy

SEC. 461. ARCHITECTURAL AND TRANSPORTATION BARRIERS COMPLIANCE BOARD.

Section 502(j) of the Rehabilitation Act of 1973 (29 U.S.C. 792(j))
is amended by striking ``fiscal years 1999 through 2003'' and inserting
``fiscal years 2006 through 2011''.

SEC. 462. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.

Section 509 of the Rehabilitation Act of 1973 (29 U.S.C. 794e) is
amended--
(1) in subsection (c)(1)(A), by inserting ``a grant for''
after ``to provide'';
(2) in subsection (g)(2), by striking ``was paid'' and
inserting ``was paid, except that program income generated from
the amount paid to an eligible system shall remain available to
such system until expended'';
(3) in subsection (l), by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2006 through
2011'';
(4) by redesignating subsections (l) and (m) as subsections
(m) and (n), respectively; and
(5) by inserting after subsection (k) the following:
``(l) System Authority.--For purposes of serving persons eligible
for services under this section, an eligible system shall have the same
general authorities, including access to records, as the system is
afforded under subtitle C of title I of the Developmental Disabilities
Assistance and Bill of Rights Act of 2000 (29 U.S.C. 796c et seq.), as
determined by the Commissioner.''.

Subtitle F--Employment Opportunities for Individuals With Disabilities

SEC. 471. PROJECTS WITH INDUSTRY.

Section 611(a) of the Rehabilitation Act of 1973 (29 U.S.C. 795(a))
is amended--
(1) in paragraph (1), by inserting ``, locally and
nationally'' before the period at the end; and
(2) in paragraph (2)--
(A) in the matter preceding subparagraph (A), by
inserting ``local and national'' before ``Projects With
Industry''; and
(B) in subparagraph (A)--
(i) in clause (iii), by striking ``and''
after the semicolon;
(ii) in clause (iv), by inserting ``and''
after the semicolon; and
(iii) by adding at the end the following:
``(v) coordinate activities with the Job Corps
center industry councils established under section 154
of the Workforce Investment Act of 1998 (29 U.S.C.
2894);''.

SEC. 472. PROJECTS WITH INDUSTRY AUTHORIZATION OF APPROPRIATIONS.

Section 612 of the Rehabilitation Act of 1973 (29 U.S.C. 795a) is
amended by striking ``fiscal years 1999 through 2003'' and inserting
``fiscal years 2006 through 2011''.

SEC. 473. SERVICES FOR INDIVIDUALS WITH SIGNIFICANT DISABILITIES
AUTHORIZATION OF APPROPRIATIONS.

Section 628 of the Rehabilitation Act of 1973 (29 U.S.C. 795n) is
amended by striking ``fiscal years 1999 through 2003'' and inserting
``fiscal years 2006 through 2011''.

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

SEC. 481. STATE PLAN.

Section 704 of the Rehabilitation Act of 1973 (29 U.S.C. 796c) is
amended by adding at the end the following:
``(o) Promoting Full Access to Community Life.--
``(1) In general.--The plan shall describe how the State
will provide independent living services that promote full
access to community life for individuals with significant
disabilities.
``(2) Services.--The services shall include, as
appropriate--
``(A) facilitating transitions of--
``(i) youth who are individuals with
significant disabilities and have completed
individualized education programs under section
614(d) of the Individuals with Disabilities
Education Act (20 U.S.C. 1414(d)) to
postsecondary life, including employment; and
``(ii) individuals with significant
disabilities from nursing homes and other
institutions, including institutions serving
individuals with cognitive disabilities, to
community-based residences;
``(B) assisting individuals with significant
disabilities at risk of entering institutions to remain
in the community; and
``(C) promoting home ownership among individuals
with significant disabilities.''.

SEC. 482. STATEWIDE INDEPENDENT LIVING COUNCIL.

(a) Establishment.--Section 705(a) of the Rehabilitation Act of
1973 (29 U.S.C. 796d(a)) is amended by striking the second sentence and
inserting the following: ``The Council shall not be established as an
entity within a State agency, and shall not provide independent living
services directly to individuals with significant disabilities or
manage such services.''.
(b) Composition.--Section 705(b) of the Rehabilitation Act of 1973
(29 U.S.C. 796d(b)) is amended--
(1) in paragraph (2), by striking subparagraph (C) and
inserting the following:
``(C) in a State in which 1 or more projects
provide services under section 121, not less than 1
representative of the directors of the projects.''; and
(2) by striking paragraph (5) and inserting the following:
``(5) Chairperson.--The Council shall select a chairperson
from among the voting membership of the Council.''.
(c) Duties.--Section 705(c) of the Rehabilitation Act of 1973 (29
U.S.C. 796d(c)) is amended--
(1) by redesignating paragraphs (1) through (5) as
subparagraphs (A) through (E), respectively, and aligning the
margins of those subparagraphs with the margins of subparagraph
(E) of subsection (b)(3);
(2) by striking ``(c)'' and all that follows through
``shall--'' and inserting the following:
``(c) Functions.--
``(1) Duties.--The Council shall--''; and
(3) by adding at the end the following:
``(2) Authorities.--The Council may, consistent with the
State plan described in section 704, unless prohibited by State
law--
``(A) provide advice and assistance to the
designated State unit regarding the performance of its
responsibilities under this title;
``(B) facilitate the improvement and coordination
of services provided to individuals with disabilities
by centers for independent living, the designated State
unit, other Government agencies, and community
organizations;
``(C) conduct resource development activities to
obtain funding from public and private resources to
support the activities described in this subsection or
to support the provision of independent living services
by centers for independent living; and
``(D) perform such other functions, consistent with
the purpose of this chapter and comparable to other
functions described in this subsection, as the Council
determines to be appropriate.''.

SEC. 483. INDEPENDENT LIVING SERVICES AUTHORIZATION OF APPROPRIATIONS.

Section 714 of the Rehabilitation Act of 1973 (29 U.S.C. 796e-3) is
amended by striking ``fiscal years 1999 through 2003'' and inserting
``fiscal years 2006 through 2011''.

SEC. 484. PROGRAM AUTHORIZATION.

Section 721 of the Rehabilitation Act of 1973 (29 U.S.C. 796f) is
amended--
(1) by striking subsection (c) and inserting the following:
``(c) Allotments to States.--
``(1) Definitions.--In this subsection:
``(A) Additional appropriation.--The term
`additional appropriation' means the amount (if any) by
which the appropriation for a fiscal year exceeds the
total of--
``(i) the amount reserved under subsection
(b) for that fiscal year; and
``(ii) the appropriation for fiscal year
2005.
``(B) Appropriation.--The term `appropriation'
means the amount appropriated to carry out this part.
``(C) Base appropriation.--The term `base
appropriation' means the portion of the appropriation
for a fiscal year that is equal to the lesser of--
``(i) an amount equal to 100 percent of the
appropriation, minus the amount reserved under
subsection (b) for that fiscal year; or
``(ii) the appropriation for fiscal year
2005.
``(2) Allotments to states from base appropriation.--After
the reservation required by subsection (b) has been made, the
Commissioner shall allot to each State whose State plan has
been approved under section 706 an amount that bears the same
ratio to the base appropriation as the amount the State
received under this subsection for fiscal year 2005 bears to
the total amount that all States received under this subsection
for fiscal year 2005.
``(3) Allotments to states of additional appropriation.--
From any additional appropriation for each fiscal year, the
Commissioner shall allot to each State whose State plan has
been approved under section 706 an amount equal to the sum of--
``(A) an amount that bears the same ratio to 50
percent of the additional appropriation as the
population of the State bears to the population of all
States; and
``(B) \1/56\ of 50 percent of the additional
appropriation.''; and
(2) by adding at the end the following:
``(e) Carryover Authority.--Notwithstanding any other provision of
law--
``(1) any funds appropriated for a fiscal year to carry out
a grant program under section 722 or 723, that are not
obligated and expended by recipients prior to the beginning of
the succeeding fiscal year shall remain available for
obligation and expenditure by such recipients during that
succeeding fiscal year and the subsequent fiscal year; and
``(2) any amounts of program income received by recipients
under a grant program under section 722 or 723 in a fiscal
year, that are not obligated and expended by recipients prior
to the beginning of the succeeding fiscal year, shall remain
available for obligation and expenditure by such recipients
during that succeeding fiscal year and the subsequent fiscal
year.''.

SEC. 485. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN STATES IN WHICH
FEDERAL FUNDING EXCEEDS STATE FUNDING.

Section 722(c) of the Rehabilitation Act of 1973 (29 U.S.C. 796f-
1(c)) is amended--
(1) by striking ``grants'' and inserting ``grants for a
fiscal year''; and
(2) by striking ``by September 30, 1997'' and inserting
``for the preceding fiscal year''.

SEC. 486. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN STATES IN WHICH
STATE FUNDING EQUALS OR EXCEEDS FEDERAL FUNDING.

Section 723(c) of the Rehabilitation Act of 1973 (29 U.S.C. 796f-
2(c)) is amended--
(1) by striking ``grants'' and inserting ``grants for a
fiscal year''; and
(2) by striking ``by September 30, 1997'' and inserting
``for the preceding fiscal year''.

SEC. 487. STANDARDS AND ASSURANCES FOR CENTERS FOR INDEPENDENT LIVING.

Section 725(b) of the Rehabilitation Act of 1973 (29 U.S.C. 796f-
4(b)) is amended by adding at the end the following:
``(8) Promoting full access to community life.--
``(A) In general.--The center shall provide
independent living services that promote full access to
community life for individuals with significant
disabilities.
``(B) Services.--The services shall include, as
appropriate--
``(i) facilitating transitions of--
``(I) youth who are individuals
with significant disabilities and have
completed individualized education
programs under section 614(d) of the
Individuals with Disabilities Education
Act (20 U.S.C. 1414(d)) to
postsecondary life, including
employment; and
``(II) individuals with significant
disabilities from nursing homes and
other institutions, including
institutions serving individuals with
cognitive disabilities, to community-
based residences;
``(ii) assisting individuals with
significant disabilities at risk of entering
institutions to remain in the community; and
``(iii) promoting home ownership among
individuals with significant disabilities.''.

SEC. 488. CENTERS FOR INDEPENDENT LIVING AUTHORIZATION OF
APPROPRIATIONS.

Section 727 of the Rehabilitation Act of 1973 (29 U.S.C. 796f-6) is
amended by striking ``fiscal years 1999 through 2003'' and inserting
``fiscal years 2006 through 2011''.

SEC. 489. INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO ARE
BLIND.

Chapter 2 of title VII of the Rehabilitation Act of 1973 (29 U.S.C.
796j et seq.) is amended--
(1) by redesignating sections 752 and 753 as sections 753
and 754, respectively; and
(2) by inserting after section 751 the following:

``SEC. 752. TRAINING AND TECHNICAL ASSISTANCE.

``(a) Grants; Contracts; Other Arrangements.--For any fiscal year
for which the funds appropriated to carry out this chapter exceed the
funds appropriated to carry out this chapter for fiscal year 2005, the
Commissioner shall first reserve from such excess, to provide training
and technical assistance to designated State agencies for such fiscal
year, not less than 1.8 percent, and not more than 2 percent, of the
funds appropriated to carry out this chapter for the fiscal year
involved.
``(b) Allocation.--From the funds reserved under subsection (a),
the Commissioner shall make grants to, and enter into contracts and
other arrangements with, entities that demonstrate expertise in the
provision of services to older individuals who are blind to provide
training and technical assistance with respect to planning, developing,
conducting, administering, and evaluating independent living programs
for older individuals who are blind.
``(c) Funding Priorities.--The Commissioner shall conduct a survey
of designated State agencies that receive grants under section 753
regarding training and technical assistance needs in order to determine
funding priorities for grants, contracts, and other arrangements under
this section.
``(d) Review.--To be eligible to receive a grant or enter into a
contract or other arrangement under this section, an entity shall
submit an application to the Commissioner at such time, in such manner,
containing a proposal to provide such training and technical
assistance, and containing such additional information as the
Commissioner may require.
``(e) Prohibition on Combined Funds.--No funds reserved by the
Commissioner under this section may be combined with funds appropriated
under any other Act or part of this Act if the purpose of combining
funds is to make a single discretionary grant or a single discretionary
payment, unless such reserved funds are separately identified in the
agreement for such grant or payment and are used for the purposes of
this chapter.''.

SEC. 490. PROGRAM OF GRANTS.

Section 753 of the Rehabilitation Act of 1973, as redesignated by
section 489, is amended--
(1) by striking subsection (h);
(2) by redesignating subsections (i) and (j) as subsections
(h) and (i), respectively;
(3) in subsection (b), by striking ``section 753'' and
inserting ``section 754'';
(4) in subsection (c)--
(A) in paragraph (1), by striking ``section 753''
and inserting ``section 754''; and
(B) in paragraph (2)--
(i) by striking ``subsection (j)'' and
inserting ``subsection (i)''; and
(ii) by striking ``subsection (i)'' and
inserting ``subsection (h)'';
(5) in subsection (g), by inserting ``, or contracts
with,'' after ``grants to'';
(6) in subsection (h), as redesignated by paragraph (2)--
(A) in paragraph (1), by striking ``subsection
(j)(4)'' and inserting ``subsection (i)(4)''; and
(B) in paragraph (2)--
(i) in subparagraph (A)(vi), by adding
``and'' after the semicolon;
(ii) in subparagraph (B)(ii)(III), by
striking ``; and'' and inserting a period; and
(iii) by striking subparagraph (C); and
(7) in subsection (i), as redesignated by paragraph (2)--
(A) by striking paragraph (2) and inserting the
following:
``(2) Minimum allotment.--
``(A) States.--In the case of any of the several
States, the District of Columbia, or the Commonwealth
of Puerto Rico, the amount referred to in paragraph
(1)(A) for a fiscal year is the greater of--
``(i) $350,000;
``(ii) an amount equal to the amount the
State, the District of Columbia, or the
Commonwealth of Puerto Rico received to carry
out this chapter for fiscal year 2005; or
``(iii) an amount equal to \1/3\ of 1
percent of the amount appropriated under
section 754, and not reserved under section
752, for the fiscal year and available for
allotments under subsection (a).
``(B) Certain territories.--In the case of Guam,
American Samoa, the United States Virgin Islands, or
the Commonwealth of the Northern Mariana Islands, the
amount referred to in paragraph (1)(A) for a fiscal
year is $60,000.'';
(B) in paragraph (3)(A), by striking ``section
753'' and inserting ``section 754, and not reserved
under section 752,''; and
(C) in paragraph (4)(B)(i), by striking
``subsection (i)'' and inserting ``subsection (h)''.

SEC. 491. INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO ARE
BLIND AUTHORIZATION OF APPROPRIATIONS.

Section 754 of the Rehabilitation Act of 1973, as redesignated by
section 489, is amended by striking ``fiscal years 1999 through 2003''
and inserting ``fiscal years 2006 through 2011''.

Subtitle H--Miscellaneous

SEC. 495. 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
``2006 through 2011''.
(b) Helen Keller National Center Federal Endowment Fund.--The first
sentence of section 208(h) of the Helen Keller National Center Act (29
U.S.C. 1907(h)) is amended by striking ``1999 through 2003'' and
inserting ``2006 through 2011''.

TITLE V--TRANSITION AND EFFECTIVE DATE

SEC. 501. TRANSITION PROVISIONS.

The Secretary of Labor shall, at the discretion of the Secretary,
take such actions as the Secretary determines to be appropriate to
provide for the orderly implementation of titles I and III of this Act.
The Secretary of Education shall, at the discretion of the Secretary,
take such actions as the Secretary determines to be appropriate to
provide for the orderly implementation of titles II and IV of this Act.

SEC. 502. EFFECTIVE DATE.

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

Attest:

Secretary.
109th CONGRESS

2d Session

H. R. 27

_______________________________________________________________________

AMENDMENT