[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 9 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 9
To improve American competitiveness in the global economy by improving
and strengthening Federal education and training programs, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 24, 2005
Mr. Enzi (for himself, Mr. Frist, and Mr. McConnell) introduced the
following bill; which was read twice and referred to the Committee on
Finance
_______________________________________________________________________
A BILL
To improve American competitiveness in the global economy by improving
and strengthening Federal education and training programs, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Lifetime of
Education Opportunities Act of 2005''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Table of contents.
Sec. 2. Findings.
Sec. 3. Purpose.
TITLE I--EARLY CHILDHOOD PROGRAMS
Sec. 101. Sense of the Senate regarding Head Start.
TITLE II--ELEMENTARY AND SECONDARY PROGRAMS
Subtitle A--Elementary School Programs
Sec. 211. Sense of the Senate regarding elementary and secondary
education.
Subtitle B--Secondary School Programs
Sec. 221. Sense of the Senate regarding career and technical education.
Sec. 222. Sense of the Senate regarding mathematics and science
education.
TITLE III--TEACHER PREPARATION
Subtitle A--Teacher Loan Forgiveness
Sec. 311. Sense of the Senate regarding loan forgiveness for teachers.
Subtitle B--Preparing Teachers
Sec. 321. Sense of the Senate regarding teacher preparation.
Sec. 322. Teacher quality enhancement grants for States and
partnerships.
Subtitle C--Merit Pay
Sec. 331. Sense of the Senate regarding teacher incentives.
Subtitle D--Classroom Expense Deduction
Sec. 341. Sense of the Senate regarding teacher tax credits.
TITLE IV--HIGHER EDUCATION AND LIFELONG LEARNING OPPORTUNITIES
Subtitle A--Higher Education
Sec. 411. Sense of the Senate regarding higher education and lifelong
learning opportunities.
Sec. 412. Sense of the Senate regarding minority serving institutions.
Subtitle B--Workforce Investment Act Amendments of 2005
Sec. 421. Short title.
Sec. 422. References.
Chapter 1--Amendments to Title I of the Workforce Investment Act of
subchapter a--definitions
Sec. subchapter b--statewide and local workforce investment systems
Sec. 432. Purpose.
Sec. 432A. State workforce investment boards.
Sec. 432B. State plan.
Sec. 432C. Local workforce investment areas.
Sec. 432D. Local workforce investment boards.
Sec. 432E. Local plan.
Sec. 432F. Establishment of one-stop delivery systems.
Sec. 432G. Eligible providers of training services.
Sec. 432H. Eligible providers of youth activities.
Sec. 432I. Youth activities.
Sec. 432J. Adult and dislocated worker employment and training
activities.
Sec. 432K. Performance accountability system.
Sec. 432L. Authorizationsubchapter c--job corps
Sec. 433. Job Corps.subchapter d--national programs
Sec. 434. Native American programs.
Sec. 434A. Migrant and seasonal farmworker programs.
Sec. 434B. Veterans' workforce investment programs.
Sec. 434C. Youth challenge grants.
Sec. 434D. Technical assistance.
Sec. 434E. Demonstration, pilot, multiservice, research, and multistate
projects.
Sec. 434F. National dislocated worker grants.
Sec. 434G. Authorizatisubchapter e--administrationional activities.
Sec. 435. Requirements and restrictions.
Sec. 435A. Reports.
Sec. 435B. Administrative provisions.
Sec. 435C. Use of certain real property.
Sec. 435D. Table of csubchapter f--incentive grants
Sec. 436. Incentivsubchapter g--conforming amendments
Sec. 437. Conforming amendments.
Chapter 2--Amendments to the Adult Education and Family Literacy Act
Sec. 441. Short title; purpose.
Sec. 441A. Definitions.
Sec. 441B. Authorization of appropriations.
Sec. 441C. Home schools.
Sec. 441D. Reservation of funds; grants to eligible agencies;
allotments.
Sec. 441E. Performance accountability system.
Sec. 441F. State administration.
Sec. 441G. State distribution of funds; matching requirement.
Sec. 441H. State leadership activities.
Sec. 441I. State plan.
Sec. 441J. Programs for corrections education and other
institutionalized individuals.
Sec. 441K. Grants and contracts for eligible providers.
Sec. 441L. Local application.
Sec. 441M. Local administrative cost limits.
Sec. 441N. Administrative provisions.
Sec. 441O. National Institute for Literacy.
Sec. 441P. National leadership activities.
Sec. 441Q. Integrated English literacy and civics education.
Sec. 441R. Transition.
Chapter 3--Amendments to Other Provisions of Law
Sec. 451. Wagner-Peyser Act.
Chapter 4--Rehabilitation Act Amendments
Sec. 461. Short title.
Sec. 461A. Technical amendments to table of contents.
Sec. 461B. Purpose.
Sec. 461C. Definitions.
Sec. 461D. Administration of the Act.
Sec. 461E. Csubchapter a--vocational rehabilitation services
Sec. 462. Declaration of policy; authorization of appropriations.
Sec. 462A. State plans.
Sec. 462B. Eligibility and individualized plan for employment.
Sec. 462C. Vocational rehabilitation services.
Sec. 462D. State rehabilitation council.
Sec. 462E. Evaluation standards and performance indicators.
Sec. 462F. State allotments.
Sec. 462G. Client assistance program.
Sec. 462H. Incentive grants.
Sec. 462I. Vocational rehabilitation services grants.
Sec. 462J. GAO stusubchapter b--research and training
Sec. 463. Authorization of appropriations.
Sec. 463A. National Institute on Disability and Rehabilitation
Research.
Sec. 464B. Research and other covered activities.
Sec.subchapter c--professional development and special projects and
demonstrations
Sec. 464. Training.
Sec. 464A. Demonstration and training programs.
Sec. 464B. Migrant and seasonal farmworkers.
Sec. 464C. Recsubchapter d--national council on disability
Sec. 465. Authorizasubchapter e--rights and advocacy
Sec. 466. Architectural and Transportation Barriers Compliance Board.
Sec. 4subchapter f--employment opportunities for individuals with
disabilities
Sec. 467. Projects with industry authorization of appropriations.
Sec. 467A. Services for individuals with significant disabilities
subchapter g--independent living services and centers for independent
living
Sec. 468. State plan.
Sec. 468A. Statewide Independent Living Council.
Sec. 468B. Independent living services authorization of appropriations.
Sec. 468C. Program authorization.
Sec. 468D. Grants to centers for independent living in States in which
Federal funding exceeds State funding.
Sec. 468E. Grants to centers for independent living in States in which
State funding equals or exceeds Federal
funding.
Sec. 468F. Standards and assurances for centers for independent living.
Sec. 468G. Centers for independent living authorization of
appropriations.
Sec. 468H. Independent living services for older individuals who are
blind.
Sec. 468I. Program of grants.
Sec. 468J. Independent living services for older individuals who are
subchapter h--miscellaneousf appropriations.
Sec. 469. Helen Keller National Center Act.
Chapter 5--Transition And Effective Date
Sec. 471. Transition provisions.
Sec. 471A. Effective date.
TITLE V--MAKING EDUCATION MORE AFFORDABLE
Sec. 501. Sense of the Senate regarding making education more
affordable.
Sec. 502. Affordable education provisions made permanent.
Sec. 503. Credit for education, tuition, and transportation expenses of
students assigned to schools identified for
school improvement.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) Most children enter Head Start at a great disadvantage,
with early literacy and mathematics skills substantially below
national averages. The typical Head Start child enters at
approximately the 16th percentile in vocabulary and early
writing skills, at approximately the 31st percentile in letter
recognition, and at approximately the 21st percentile in early
mathematics, when compared to the full spectrum of American
children in the same age range.
(2) Despite gains in vocabulary and early writing skills,
Head Start children still trail in these measures compared to
national averages.
(3) Community-based organizations, including faith-based
organizations, have historically had a long and distinguished
record of meeting, addressing, and responding to the needs of
the poor through a variety of health, educational, and social
service programs.
(4) For many parents in rural and urban areas, public
school choice provided for under the amendments made by the No
Child Left Behind Act of 2001 is not a meaningful option due to
physical proximity and capacity constraints.
(5) American 15-year-olds performed below the international
average in mathematics literacy and problem-solving, according
to the 2003 Program for International Student Assessment
(PISA).
(6) American students scored below the international
average in science literacy in 2003.
(7) American students' 12th grader performance in reading
has declined. The number of 12th graders scoring below basic
(12th graders who failed to demonstrate any partial mastery of
12th grade reading skills) increased over time, and now over a
quarter of 12th graders cannot read at grade level. Less than
36 percent of 12th graders are even considered proficient
readers.
(8) Of all students entering 9th grade four years ago, only
68 percent are expected to graduate this year, and for minority
students this number hovers around 50 percent.
(9) Individuals who did not finish high school comprise the
only group of Americans that consistently lost jobs over the
past decade. High school dropouts have an unemployment rate
nearly twice the level of high school graduates.
(10) Nothing is more important to a child's success in
school than a well prepared teacher who has a strong command of
the subject matter the teacher is teaching.
(11) Schools across the Nation are experiencing difficulty
in recruiting and retaining qualified mathematics, science, and
special education teachers.
(12) Attracting qualified mathematics, science, and special
education teachers to the teaching profession and retaining the
teachers in the profession is vital to America's economic
competitiveness and national security, and critical to ensuring
that no child is left behind. America's competitiveness is
dependent on the skills of its workforce.
(13) Seventy-three percent of all postsecondary education
students are non-traditional, and are mostly working adults.
(14) College graduates earn 100 percent more during their
lifetime than high school graduates. This rate has doubled in
less than 20 years.
(15) Jobs requiring a bachelor's degree will grow by 25
percent by the year 2008, while those requiring an associate
degree will grow by nearly one-third.
(16) Eighty-five percent of today's jobs are classified as
skilled.
(17) Two-thirds of the 7,000,000 worker gap in 2010 will be
a skilled worker shortage.
(18) Our future competitiveness depends on our workforce,
and the quality of our workforce depends on education.
SEC. 3. PURPOSE.
It is the purpose of this Act to improve American competitiveness
in the global economy by improving and strengthening Federal education
and training programs, through--
(1) setting high expectations and raising achievement for
all students, regardless of their background;
(2) improving accountability for results;
(3) providing flexibility for States to manage Federal
program dollars most effectively; and
(4) supporting a lifetime of learning opportunities for
students at all stages in life.
TITLE I--EARLY CHILDHOOD PROGRAMS
SEC. 101. SENSE OF THE SENATE REGARDING HEAD START.
It is the sense of the Senate that as the Senate considers the
reauthorization of the Head Start Act (42 U.S.C. 9831 et seq.), the
Senate should explore efforts to--
(1) establish new educational standards that ensure
children enrolled in Head Start--
(A) develop and demonstrate a variety of early
learning skills; and
(B) are able to compete effectively with other
children entering kindergarten programs;
(2) encourage the coordination and alignment of Head Start
with other publicly funded early childhood programs; and
(3) support efforts to improve fiscal management and
accountability.
TITLE II--ELEMENTARY AND SECONDARY PROGRAMS
Subtitle A--Elementary School Programs
SEC. 211. SENSE OF THE SENATE REGARDING ELEMENTARY AND SECONDARY
EDUCATION.
It is the sense of the Senate that--
(1) in keeping with the spirit of the No Child Left Behind
Act of 2001, supplemental services should be made available
earlier than required by the No Child Left Behind Act of 2001
to those parents who cannot access public school choice;
(2) in rural areas where a variety of supplemental services
may not be available, distance education should be encouraged;
and
(3) the Federal Government should consider encouraging
school districts to offer supplemental services after a school
has entered its second year of school improvement under title I
of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 6301 et seq.).
Subtitle B--Secondary School Programs
SEC. 221. SENSE OF THE SENATE REGARDING CAREER AND TECHNICAL EDUCATION.
It is the sense of the Senate that as the Senate considers the
reauthorization of the Carl D. Perkins Vocational and Technical
Education Act of 1998 (20 U.S.C. 2301 et seq.), the Senate should
explore efforts to--
(1) strengthen the academic focus of career and technical
education programs in high school and college;
(2) improve coordination between secondary and
postsecondary career and technical education programs,
including efforts to allow students to attend dual-enrollment
programs to earn college credit;
(3) support partnerships among secondary schools,
postsecondary institutions, area career technical centers,
business and industry, professional associations, and
intermediaries;
(4) integrate career and technical education courses with
rigorous and challenging academic courses;
(5) develop a highly skilled workforce needed to keep
America competitive in the global economy in conjunction with
other Federal education and training programs, including
workforce investment programs, that provide lifelong learning
for the workforce of today and tomorrow; and
(6) support the continued integration of technology into
career and technical education programs.
SEC. 222. SENSE OF THE SENATE REGARDING MATHEMATICS AND SCIENCE
EDUCATION.
It is the sense of the Senate that--
(1) better mathematics, science and reading programs in
high school are needed to ensure that every student graduates
with the skills necessary to succeed in postsecondary education
and a globally competitive workforce; and
(2) more emphasis should be provided on ensuring that low-
income schools offer Advanced Placement and International
Baccalaureate courses.
TITLE III--TEACHER PREPARATION
Subtitle A--Teacher Loan Forgiveness
SEC. 311. SENSE OF THE SENATE REGARDING LOAN FORGIVENESS FOR TEACHERS.
It is the sense of the Senate that Congress should support the
recruitment and retention of highly qualified teachers by encouraging
the use of recently expanded loan forgiveness for mathematics, science,
and special education teachers who agree to teach in a high need area
for 5 years, which should help ensure that each child receives a
quality education.
Subtitle B--Preparing Teachers
SEC. 321. SENSE OF THE SENATE REGARDING TEACHER PREPARATION.
It is the sense of the Senate that in order to ensure a quality
teaching force, institutions of higher education should be held
accountable for producing highly qualified teachers for every
classroom.
SEC. 322. TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND
PARTNERSHIPS.
Part A of title II of the Higher Education Act of 1965 (20 U.S.C.
1021 et seq.) is amended to read as follows:
``PART A--TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND
PARTNERSHIPS
``SEC. 201. PURPOSES; DEFINITIONS.
``(a) Purposes.--The purposes of this part are to--
``(1) improve student achievement;
``(2) improve the quality of the current and future
teaching force by improving the preparation of prospective
teachers and enhancing professional development activities;
``(3) hold institutions of higher education accountable for
preparing highly qualified teachers; and
``(4) recruit qualified individuals, including minorities
and individuals from other occupations, into the teaching
force.
``(b) Definitions.--In this part:
``(1) Arts and sciences.--The term `arts and sciences'
means--
``(A) when referring to an organizational unit of
an institution of higher education, any academic unit
that offers 1 or more academic majors in disciplines or
content areas corresponding to the academic subject
areas in which teachers provide instruction; and
``(B) when referring to a specific academic subject
area, the disciplines or content areas in which
academic majors are offered by the arts and science
organizational unit.
``(2) Educational service agency.--The term `educational
service agency' has the meaning given such term in section 9101
of the Elementary and Secondary Education Act of 1965.
``(3) Exemplary teacher.--The term `exemplary teacher' has
the meaning given such term in section 9101 of the Elementary
and Secondary Education Act of 1965.
``(4) Highly qualified.--The term `highly qualified' has
the meaning given such term in section 9101 of the Elementary
and Secondary Education Act of 1965.
``(5) High-need local educational agency.--The term `high-
need local educational agency' means a local educational
agency--
``(A)(i) that serves not fewer than 10,000 children
from families with incomes below the poverty line;
``(ii) for which not less than 20 percent of the
children served by the agency are from families with
incomes below the poverty line; or
``(iii) with a total of less than 600 students in
average daily attendance at the schools that are served
by the agency and all of whose schools are designated
with a school locale code of 7 or 8, as determined by
the Secretary; and
``(B)(i) for which there is a high percentage of
teachers not teaching in the academic subject areas or
grade levels in which the teachers were trained to
teach; or
``(ii) for which there is a high percentage of
teachers with emergency, provisional, or temporary
certification or licensing.
``(6) Poverty line.--The term `poverty line' means the
poverty line (as defined by the Office of Management and
Budget, and revised annually in accordance with section 673(2)
of the Community Services Block Grant Act (42 U.S.C. 9902(2)))
applicable to a family of the size involved.
``(7) Professional development.--The term `professional
development' has the meaning given such term in section 9101 of
the Elementary and Secondary Education Act of 1965.
``(8) Scientifically based reading research.--The term
`scientifically based reading research' has the meaning given
such term in section 1208 of the Elementary and Secondary
Education Act of 1965.
``(9) Scientifically based research.--The term
`scientifically based research' has the meaning given such term
in section 9101 of the Elementary and Secondary Education Act
of 1965.
``(10) Teaching skills.--The term `teaching skills' means
the ability to--
``(A) increase student achievement;
``(B) effectively convey and explain academic
subject matter;
``(C) employ strategies that--
``(i) are based on scientifically based
research;
``(ii) are specific to academic subject
matter; and
``(iii) focus on identification and
tailoring of academic instruction to students'
specific learning needs, particularly students
with disabilities, students with special
learning needs (including students who are
gifted and talented), and students with
limited-English proficiency;
``(D) conduct ongoing assessment of student
learning; and
``(E) effectively manage a classroom.
``SEC. 202. STATE GRANTS.
``(a) In General.--From amounts made available under section
209(a)(1) for a fiscal year, the Secretary is authorized to award
grants under this section, on a competitive basis, to eligible States
to enable the eligible States to carry out the activities described in
subsection (d).
``(b) Eligible State.--
``(1) Definition.--In this part, the term `eligible State'
means--
``(A) the Governor of a State; or
``(B) in the case of a State for which the
constitution or law of such State designates another
individual, entity, or agency in the State to be
responsible for teacher certification and preparation
activity, such individual, entity, or agency.
``(2) Consultation.--The Governor or the individual,
entity, or agency designated under paragraph (1)(B) shall
consult with the Governor, State board of education, State
educational agency, or State agency for higher education, as
appropriate, with respect to the activities assisted under this
section.
``(3) Construction.--Nothing in this subsection shall be
construed to negate or supersede the legal authority under
State law of any State agency, State entity, or State public
official over programs that are under the jurisdiction of the
agency, entity, or official.
``(c) Application.--To be eligible to receive a grant under this
section, an eligible State shall, at the time of the initial grant
application, submit an application to the Secretary that--
``(1) meets the requirement of this section;
``(2) demonstrates that the eligible State is in full
compliance with sections 206(b) and 207 and, if applicable,
sections 207(a) and 208 of this Act as such sections were in
effect on the day before the date of enactment of the Higher
Education Amendments of 2004;
``(3) includes a description of how the eligible State
intends to use funds provided under this section;
``(4) includes measurable objectives for the use of the
funds provided under this section;
``(5) describes how funded activities will reduce
shortages, if any, of highly qualified teachers in low-income
urban and rural areas and in high-need academic subject areas,
and how such activities will be consistent with State, local,
and other education reform activities that promote student
academic achievement, including how funded activities will
support carrying out requirements of the eligible State under
sections 1111(h)(1)(C)(viii) and 1119 of the Elementary and
Secondary Education Act of 1965;
``(6) contains an assurance that the eligible State will
carry out each of the intended uses of grant funds described in
paragraph (3); and
``(7) contains such other information and assurances as the
Secretary may require.
``(d) Uses of Funds.--An eligible State that receives a grant under
this section shall use the grant funds to reform teacher preparation
requirements, to coordinate with State activities under section 2113(c)
of the Elementary and Secondary Education Act of 1965, and to ensure
that current and future teachers are highly qualified, by carrying out
1 or more of the following activities:
``(1) Reforms.--Ensuring that all teacher preparation
programs in the State are preparing teachers to become highly
qualified, to understand scientifically based research and its
applicability, and to use technology effectively, including use
for instructional techniques to improve student academic
achievement, by assisting such programs--
``(A) in retraining faculty;
``(B) in designing (or redesigning) teacher
preparation programs so that such programs--
``(i) are based on rigorous academic
content and scientifically based research
(including scientifically based reading
research), and aligned with challenging State
academic content standards; and
``(ii) promote strong teaching skills; and
``(C) in ensuring collaboration with departments,
programs, or units outside of the teacher preparation
program in all academic content areas to ensure a
successful combination of training in both teaching and
such content.
``(2) Certification or licensure requirements.--Reforming
teacher certification (including recertification) or licensing
requirements to ensure that--
``(A) teachers have the academic content knowledge
and teaching skills in the academic subject areas that
the teachers teach that are necessary to help students
meet challenging State student academic achievement
standards; and
``(B) such requirements are aligned with
challenging State academic content standards.
``(3) Alternatives to traditional preparation for teaching
and state certification.--Providing prospective teachers with
alternative routes to State certification and traditional
preparation to become highly qualified teachers through--
``(A) innovative approaches that reduce unnecessary
barriers to State certification while producing highly
qualified teachers;
``(B) programs that provide support to teachers
during their initial years in the profession; and
``(C) alternative routes to State certification of
teachers for qualified individuals, including mid-
career professionals from other occupations, former
military personnel, and recent college graduates with
records of academic distinction.
``(4) Innovative programs.--Planning and implementing
innovative programs to enhance the ability of institutions of
higher education, such as charter colleges of education or
university and local educational agency partnership schools, to
prepare highly qualified teachers that--
``(A) permit flexibility in meeting State
requirements as long as graduates, during their initial
years in the profession, increase student academic
achievement;
``(B) provide long-term data gathered from
teachers' performance over multiple years in the
classroom on their ability to increase student academic
achievement;
``(C) ensure high-quality preparation of teachers
from underrepresented groups; and
``(D) create performance measures that can be used
to document the effectiveness of innovative methods for
preparing highly qualified teachers.
``(5) Teacher recruitment and retention.--Undertaking
activities that develop and implement effective mechanisms to
ensure that local educational agencies and schools are able
effectively to recruit and retain highly qualified teachers,
including the following activities:
``(A) Merit pay.--Developing, or assisting local
educational agencies in developing--
``(i) merit-based performance systems that
reward teachers who increase student academic
achievement; and
``(ii) strategies that provide differential
and bonus pay in high-need local educational
agencies to recruit and retain--
``(I) principals;
``(II) highly qualified teachers
who teach in high-need academic subject
areas, such as reading, mathematics,
and science;
``(III) highly qualified teachers
who teach in schools identified for
school improvement under section
1116(b) of the Elementary and Secondary
Education Act of 1965;
``(IV) special education teachers;
``(V) teachers specializing in
teaching limited-English proficient
children; and
``(VI) highly qualified teachers in
low-income urban and rural schools or
districts.
``(B) Teacher advancement.--Developing, or
assisting local educational agencies in developing,
teacher advancement and retention initiatives that
promote professional growth and emphasize multiple
career paths (such as paths to becoming a highly
qualified mentor teacher or exemplary teacher) and pay
differentiation.
``(6) Teacher scholarships and support.--Providing--
``(A) scholarships to help students, such as
individuals who have been accepted by, or who are
enrolled in, a program of undergraduate education at an
institution of higher education, pay the costs of
tuition, room, board, and other expenses of completing
a teacher preparation program, provided that--
``(i) the Secretary shall establish such
requirements as the Secretary determines
necessary to ensure that recipients of
scholarships under this section who complete
teacher preparation programs--
``(I) subsequently teach in a high-
need local educational agency for a
period of time equivalent to 1 year,
increased by the period for which the
recipient received scholarship
assistance; or
``(II) repay the amount of the
scholarship;
``(ii) the Secretary shall use any such
repayments to carry out additional activities
under this paragraph; and
``(iii) the eligible State shall provide an
assurance that it will recruit minority
students to become highly qualified teachers;
``(B) support services, if needed, to enable
scholarship recipients to complete postsecondary
education programs, or to move from a career outside of
the field of education into a teaching career; and
``(C) follow-up services to former scholarship
recipients during their initial years of teaching.
``(7) Teacher removal.--Developing and implementing
effective mechanisms to ensure that local educational agencies
and schools are able to remove expeditiously incompetent or
unqualified teachers consistent with procedures to ensure due
process for the teachers.
``(8) Teacher effectiveness.--Developing--
``(A) systems to measure the effectiveness of
teacher preparation programs and professional
development programs; and
``(B) strategies to document gains in student
academic achievement or increases in teacher mastery of
the academic subject matter the teachers teach as a
result of such programs.
``(9) Preschool teachers.--Developing strategies to improve
and expand teacher preparation programs for preschool teachers,
including training in the science of language acquisition and
the development of fundamental early literacy skills.
``(10) Professional development.--Developing and enhancing
high-quality professional development, instructional, and
training materials for kindergarten through grade 12 teachers
and expanding the access of such information through the use of
technology.
``(11) Technology.--Assisting teachers to use technology
effectively, including use for instructional techniques and the
collection, management, and analysis of data to improve
teaching, learning, and decisionmaking for the purpose of
increasing student academic achievement.
``(12) Foreign language instruction.--Expanding access to
programs of instruction in foreign languages, including less
commonly taught languages, through the use of technology, such
as computer-assisted instruction or distance learning, when
appropriate.
``(13) Technical assistance.--Providing technical
assistance to low-performing programs of teacher preparation
within institutions of higher education identified under
section 207(a).
``(14) Evaluation support.--Performing data collection,
evaluation, and reporting to meet the requirements of
subsection (e).
``(e) Evaluation.--
``(1) Annual evaluation.--An eligible State that receives a
grant under this section shall evaluate annually the
effectiveness of teacher preparation programs and professional
development activities within the State, carried out using
funds provided under this section. To the extent practicable,
such evaluation shall examine--
``(A) gains in student achievement as a result of
the programs and activities;
``(B) teachers' contribution to improving student
academic achievement, as measured by State academic
assessments required under section 1111(b)(3) of the
Elementary and Secondary Education Act of 1965; and
``(C) teacher mastery of the academic subject
matter the teachers teach, as measured by pre- and
post-participation tests of teacher knowledge, as
appropriate.
``(2) Public reporting.--The eligible State shall make the
information described in paragraph (1) widely available through
public means, such as posting on the Internet, distribution to
the media, and distribution through public agencies.
``(f) Supplement, Not Supplant.--Funds made available under this
section shall be used to supplement, and not supplant, other Federal,
State, and local funds that would otherwise be expended to carry out
activities under this section.
``SEC. 203. PARTNERSHIP GRANTS.
``(a) Grants.--From amounts made available under section 209(a)(2)
for a fiscal year, the Secretary is authorized to award grants under
this section, on a competitive basis, to eligible partnerships to
enable the eligible partnerships to carry out the activities described
in subsections (e) and (f).
``(b) Definitions.--
``(1) Eligible partnership.--In this part, the term
`eligible partnership' means an entity that--
``(A) includes--
``(i) a partner institution;
``(ii) a school of arts and sciences;
``(iii) a high-need local educational
agency; and
``(iv) a public or private educational
organization; and
``(B) may include a Governor, State educational
agency, the State board of education, the State agency
for higher education, an institution of higher
education not described in subparagraph (A), a public
charter school, a public or private elementary school
or secondary school, a public or private nonprofit
educational organization, a business, a science-,
mathematics-, or technology-oriented entity, a faith-
based or community organization, a prekindergarten
program, a teacher organization, an educational service
agency, a consortium of local educational agencies, or
a nonprofit telecommunications entity.
``(2) Partner institution.--In this section, the term
`partner institution' means an institution of higher education,
including a community college, the teacher preparation program
of which demonstrates that--
``(A)(i) its students exhibit strong performance on
State-determined qualifying assessments for new
teachers by passing not less than 80 percent of all
such assessments; or
``(ii) it is ranked among the highest-performing
teacher preparation programs in the State, as
determined by the State--
``(I) using criteria consistent with the
requirements for the State report card under
section 206(b); and
``(II) using the State report card on
teacher preparation required under section
206(b); and
``(B) it requires all the students of the program
to participate in intensive clinical experience, to
meet high academic standards, and--
``(i) in the case of secondary school
candidates, to successfully complete--
``(I) a major or its equivalent in
coursework in the academic subject area
in which the candidate intends to
teach; or
``(II) a related major in the
academic subject area in which the
candidate intends to teach; and
``(ii) in the case of elementary school
candidates, to successfully complete--
``(I) an academic major or its
equivalent in coursework in the arts
and sciences; or
``(II) a major in elementary
education with a significant amount of
coursework in the arts and sciences.
``(c) Application.--Each eligible partnership desiring a grant
under this section shall submit an application to the Secretary at such
time, in such manner, and accompanied by such information as the
Secretary may require. Each such application shall--
``(1) contain a needs assessment of all the partners with
respect to teaching and learning and a description of how the
eligible partnership will coordinate with other teacher
preparation or professional development programs, and how the
activities of the eligible partnership will be consistent with
State, local, and other education reform activities that
promote student achievement;
``(2) contain a resource assessment that describes the
resources available to the eligible partnership, the intended
use of the grant funds, including a description of how the
grant funds will be fairly distributed, and the commitment of
the resources of the eligible partnership to the activities
assisted under this part, including financial support, faculty
participation, time commitments, and continuation of the
activities when the grant ends;
``(3) contain a description of--
``(A) how the eligible partnership will meet the
purposes of this part;
``(B) how the eligible partnership will carry out
the activities required under subsection (e) and any
permissible activities under subsection (f);
``(C) the eligible partnership's evaluation plan
pursuant to section 205(b);
``(D) how faculty of the teacher preparation
program at the partner institution will serve, over the
term of the grant, with highly qualified teachers in
the classrooms of the high-need local educational
agency included in the eligible partnership;
``(E) how the eligible partnership will ensure that
teachers, principals, and superintendents in private
elementary schools and private secondary schools
located in the geographic areas served by an eligible
partnership under this section will participate
equitably, as required under subsection (i);
``(F) how the eligible partnership will ensure that
the partner institution's clinical program component
includes close supervision of student teachers by
faculty of the teacher preparation program and mentor
teachers;
``(G) how the eligible partnership will design and
implement an induction program to support all new
teachers during their initial years of teaching that
includes mentors who are trained and compensated by the
eligible partnership for their work with new teachers;
and
``(H) how the eligible partnership will collect,
analyze, and use data on the retention of all teachers
in schools located in the geographic areas served by
the eligible partnership to evaluate the effectiveness
of its teacher support system; and
``(4) contain an assurance that the eligible partnership
will carry out each of the intended uses of grant funds
described in paragraph (2).
``(d) Consultation.--
``(1) In general.--Members of an eligible partnership that
receives a grant under this section shall engage in regular
consultation throughout the development and implementation of
programs and activities under this section.
``(2) Regular communication.--To ensure timely and
meaningful consultation, regular communication shall occur
among all members of the eligible partnership, including the
local educational agency. Such communication shall continue
throughout implementation of the grant and assessment of
programs and activities under this section.
``(3) Written affirmation.--A written affirmation signed by
all members shall be submitted to the Secretary before the
Secretary may approve changes in grant activities.
``(e) Required Uses of Funds.--An eligible partnership that
receives a grant under this section shall use the grant funds to carry
out the following activities:
``(1) Reforms.--Implementing reforms within teacher
preparation programs to ensure that such programs are preparing
teachers to become highly qualified, to understand
scientifically based research and its applicability, and to use
technology effectively, including use for instructional
techniques to improve student academic achievement, by--
``(A) retraining faculty;
``(B) designing (or redesigning) teacher
preparation programs so that such programs--
``(i) are based on rigorous academic
content and scientifically based research
(including scientifically based reading
research), and aligned with challenging State
student academic content standards; and
``(ii) promote strong teaching skills; and
``(C) ensuring collaboration with departments,
programs, or units outside of the teacher preparation
program in all content areas to ensure a successful
combination of training in both teaching and such
content.
``(2) Clinical experience and interaction.--Improving
sustained and high-quality preservice clinical experience,
including the mentoring of prospective teachers by veteran
teachers, and substantially increasing interaction between
faculty at institutions of higher education and new and
experienced teachers, principals, and other administrators at
elementary schools or secondary schools, and providing support,
including preparation time and release time, for such
interaction.
``(3) Professional development.--Creating, or assisting
local educational agencies in creating, opportunities for
enhanced and ongoing professional development that improves the
academic content knowledge of teachers in the academic subject
areas in which the teachers are certified to teach or in which
the teachers are working toward certification to teach, and
that promotes strong teaching skills.
``(f) Allowable Uses of Funds.--An eligible partnership that
receives a grant under this section may use such funds to carry out the
following activities:
``(1) Alternatives to traditional teacher preparation and
state certification.--The activity described in section
202(d)(3).
``(2) Dissemination and coordination.--Broadly
disseminating information on effective practices used by the
eligible partnership, and coordinating with the activities of
the Governor, State board of education, State higher education
agency, and State educational agency, as appropriate.
``(3) Managerial and leadership skills.--Developing and
implementing proven mechanisms to provide principals and
superintendents with effective managerial and leadership skills
that result in increased student achievement.
``(4) Teacher scholarships and support.--Providing--
``(A) scholarships to help students, such as
individuals who have been accepted by, or who are
enrolled in, a program of undergraduate education at an
institution of higher education, pay the costs of
tuition, room, board, and other expenses of completing
a teacher preparation program, whereby--
``(i) the Secretary shall establish such
requirements as the Secretary determines
necessary to ensure that recipients of
scholarships under this section who complete
teacher preparation programs--
``(I) subsequently teach in a high-
need local educational agency for a
period of time equivalent to 1 year,
increased by the period for which the
recipient received scholarship
assistance; or
``(II) repay the amount of the
scholarship;
``(ii) the Secretary shall use any such
repayments to carry out additional activities
under this paragraph; and
``(iii) the eligible partnership shall
provide an assurance that it will recruit
minority students to become highly qualified
teachers;
``(B) support services, if needed, to enable
scholarship recipients to complete postsecondary
education programs, or to transition from a career
outside of the field of education into a teaching
career; and
``(C) follow-up services to former scholarship
recipients during their initial years of teaching.
``(5) Community colleges.--
``(A) Teacher preparation programs.--Implementing,
or coordinating with community colleges to implement,
teacher preparation programs, including through
distance learning, for the purposes of allowing
prospective teachers--
``(i) to attain a bachelor's degree and
State certification or licensure; and
``(ii) to become highly qualified teachers.
``(B) Professional development.--Providing, or
coordinating with community colleges to provide,
professional development that improves the academic
content knowledge of teachers in the academic subject
areas in which the teachers are certified to teach or
in which the teachers are working toward certification
to teach, and that promotes strong teaching skills.
``(6) Teacher mentoring.--Establishing or implementing a
teacher mentoring program that--
``(A) includes minimum qualifications for mentors;
``(B) provides training and stipends for mentors;
``(C) provides mentoring programs for teachers
during their initial years of teaching;
``(D) provides regular and ongoing opportunities
for mentors and mentees to observe each other's
teaching methods in classroom settings during the
school day;
``(E) establishes an evaluation and accountability
plan for activities conducted under this paragraph that
includes rigorous objectives to measure the impact of
such activities; and
``(F) provides for a report to the Secretary on an
annual basis regarding the eligible partnership's
progress in meeting the objectives described in
subparagraph (E).
``(7) Professional development.--The activity described in
section 202(d)(10).
``(8) Technology.--The activity described in section
202(d)(11).
``(9) Foreign language instruction.--The activity described
in section 202(d)(12).
``(10) Graduate programs.--Developing, in collaboration
with departments, programs, or units of both academic content
and teacher education, master's degree programs that meet the
demonstrated needs of teachers in the local educational agency
within the eligible partnership for content expertise and
teaching skills.
``(g) Construction.--Nothing in this section shall be construed to
prohibit an eligible partnership from using grant funds to coordinate
with the activities of more than 1 Governor, State board of education,
State educational agency, local educational agency, or State agency for
higher education.
``(h) Supplement, Not Supplant.--Funds made available under this
section shall be used to supplement, and not supplant, other Federal,
State, and local funds that would otherwise be expended to carry out
activities under this section.
``(i) Applicability of Private School Participation Provisions.--
Section 9501 of the Elementary and Secondary Education Act of 1965
shall apply to programs carried out under this section.
``SEC. 204. ADMINISTRATIVE PROVISIONS.
``(a) Duration; One-Time Awards; Payments.--
``(1) Duration.--
``(A) Eligible states.--Grants awarded to eligible
States under this part shall be awarded for a period
not to exceed 3 years.
``(B) Eligible partnerships.--Grants awarded to
eligible partnerships under this part shall be awarded
for a period of 5 years.
``(2) One-time award.--An eligible partnership may receive
a grant under section 203 only once.
``(3) Payments.--The Secretary shall make annual payments
of grant funds awarded under this part.
``(b) Peer Review.--
``(1) Panel.--The Secretary shall provide the applications
submitted under this part to a peer review panel for
evaluation. With respect to each application, the peer review
panel shall initially recommend the application for funding or
for disapproval.
``(2) Priority.--In recommending applications to the
Secretary for funding under this part, the panel shall--
``(A) with respect to grants under section 202--
``(i) give priority to eligible States that
have initiatives to reform State teacher
certification requirements so that the
requirements are based on rigorous academic
content and scientifically based research
(including scientifically based reading
research), and aligned with challenging State
academic content standards;
``(ii) give priority to eligible States
that have innovative reforms to hold
institutions of higher education with teacher
preparation programs accountable for preparing
teachers to become highly qualified and have
strong teaching skills;
``(iii) give priority to eligible States
that have innovative efforts aimed at reducing
the shortage of highly qualified teachers in
low-income urban and rural areas, or in high-
need academic subject areas; and
``(iv) take into consideration an equitable
geographic distribution of the grants
throughout the United States; and
``(B) with respect to grants under section 203--
``(i) give priority to applications from
broad-based eligible partnerships that involve
businesses and community organizations; and
``(ii) take into consideration an equitable
geographic distribution of the grants
throughout the United States.
``(3) Secretarial selection.--The Secretary shall
determine, based on the peer review process, which applications
shall receive funding and the amounts of the grants. In
determining grant amounts, the Secretary shall take into
account the total amount of funds available for all grants
under this part and the types of activities proposed to be
carried out.
``(c) Matching Requirements.--
``(1) State grants.--Each eligible State receiving a grant
under section 202 shall provide, from non-Federal sources, an
amount equal to 50 percent of the amount of the grant (in cash
or in kind) to carry out the activities supported by the grant.
``(2) Partnership grants.--Each eligible partnership
receiving a grant under section 203 shall provide, from non-
Federal sources (in cash or in kind), an amount equal to 25
percent of the grant for the first year of the grant, 35
percent of the grant for the second year of the grant, and 50
percent of the grant for each succeeding year of the grant.
``(d) Limitation on Administrative Expenses.--An eligible State or
eligible partnership that receives a grant under this part may use not
more than 2 percent of the grant funds for purposes of administering
the grant.
``SEC. 205. ACCOUNTABILITY AND EVALUATION.
``(a) State Grant Accountability Report.--An eligible State that
receives a grant under section 202 shall submit an annual
accountability report to the Secretary and the authorizing committees.
Such report shall include a description of the degree to which the
eligible State, in using funds provided under such section, has made
progress in meeting the purposes of this part and substantial progress
in meeting the following goals, as applicable:
``(1) Percentage of highly qualified teachers.--Increasing
the percentage of highly qualified teachers in the State as
required under section 1119 of the Elementary and Secondary
Education Act of 1965.
``(2) Student academic achievement.--Increasing student
academic achievement for all students as defined by the
eligible State.
``(3) Raising standards.--Raising the State academic
standards required to enter the teaching profession as a highly
qualified teacher.
``(4) Initial certification or licensure.--Increasing
success in the pass rates and scaled scores for initial State
teacher certification or licensure, or increasing the numbers
of qualified individuals being certified or licensed as
teachers through alternative certification programs.
``(5) Decreasing teacher shortages.--Decreasing shortages
of highly qualified teachers in low-income urban and rural
areas and in high-need academic subject areas.
``(6) Increasing opportunities for professional
development.--Increasing opportunities for enhanced and ongoing
professional development that improves the academic content
knowledge of teachers in the academic subject areas in which
the teachers are certified or licensed to teach or in which the
teachers are working toward certification or licensure to
teach, and that promotes strong teaching skills.
``(7) Technology integration.--Increasing the number of
teachers prepared to effectively integrate technology into
curricula and instruction and who use technology to collect,
manage, and analyze data to improve teaching, learning, and
decisionmaking for the purpose of increasing student academic
achievement.
``(b) Eligible Partnership Evaluation.--
``(1) In general.--Each eligible partnership receiving a
grant under section 203 shall establish and include in the
application submitted under section 203(c), an evaluation plan
that includes strong performance objectives. The plan shall
include objectives and measures for--
``(A) increased student academic achievement for
all students as measured by the eligible partnership;
``(B) increased teacher retention in the initial
years of a teacher's career;
``(C) increased success in the pass rates and
scaled scores for initial State certification or
licensure of teachers;
``(D) increased percentage of highly qualified
teachers;
``(E) increasing opportunities for enhanced and
ongoing professional development that improves the
academic content knowledge of teachers in the academic
subject areas in which the teachers are certified or
licensed to teach or in which the teachers are working
toward certification or licensure to teach, and that
promotes strong teaching skills; and
``(F) increasing the number of teachers prepared to
effectively integrate technology into curricula and
instruction and who use technology to collect, manage,
and analyze data to improve teaching, learning, and
decisionmaking for the purpose of increasing student
academic achievement.
``(2) Report.--Each eligible partnership receiving a grant
under section 203 shall report annually on the progress of the
eligible partnership toward meeting the purposes of this part
and the objectives and measures described in paragraph (1).
``(c) Revocation of Grant.--
``(1) Eligible states.--If the Secretary determines that an
eligible State is not making substantial progress in meeting
the purposes, goals, objectives, and measures, as appropriate,
by the end of the second year of a grant under this part, the
grant payment shall not be made for the third year of the
grant.
``(2) Eligible partnerships.--If the Secretary determines
that an eligible partnership is not making substantial progress
in meeting the purposes, goals, objectives, and measures, as
appropriate, by the end of the third year of a grant under this
part, then the grant payments shall not be made for any
succeeding year of the grant.
``(d) Evaluation and Dissemination.--The Secretary shall evaluate
the activities funded under this part and report the Secretary's
findings regarding the activities to the authorizing committees. The
Secretary shall broadly disseminate successful practices developed by
eligible States and eligible partnerships under this part, and shall
broadly disseminate information regarding such practices that were
found to be ineffective.
``SEC. 206. ACCOUNTABILITY FOR PROGRAMS THAT PREPARE TEACHERS.
``(a) Institutional and Program Report Cards on the Quality of
Teacher Preparation.--
``(1) Report card.--Each institution of higher education
that conducts a traditional teacher preparation program or an
alternative certification program and that enrolls students
receiving Federal assistance under this Act shall report
annually to the State and the general public, in a uniform and
comprehensible manner that conforms with the definitions and
methods established by the Secretary, both for traditional
certification programs and for alternative certification
programs, the following information:
``(A) Pass rates and scaled scores.--For the most
recent year for which the information is available, for
each of the assessments used for teacher certification
or licensure by the State in which the program is
located, for those students who are enrolled in the
traditional teacher preparation program or alternative
certification program, or who have completed the
traditional teacher preparation program or alternative
certification program during the 2-year period
preceding such year--
``(i) the percentage of all such students
who passed each such assessment;
``(ii) a comparison of the program's pass
rates with the average pass rates for programs
in the State;
``(iii) the average scaled score for all
such students who passed each such assessment;
and
``(iv) a comparison of the program's
average scaled scores with the average scaled
scores for programs in the State.
``(B) Program information.--The criteria for
admission into the program, the number of students in
the program (disaggregated by race and gender), the
average number of hours of supervised practice teaching
required for those in the program, the number of full-
time equivalent faculty and students in supervised
practice teaching, and the total number of students
receiving teacher certification, disaggregated by
subject and level.
``(C) Statement.--In States that require approval
or accreditation of teacher preparation programs, a
statement of whether the institution's program is so
approved or accredited, and by whom.
``(D) Designation as low-performing.--Whether the
program has been designated as low-performing by the
State under section 207(a).
``(2) Requirement.--The information described in paragraph
(1) shall be reported through publications such as school
catalogs and promotional materials sent, including by
electronic means, to potential applicants, secondary school
guidance counselors, and prospective employers of the
institution's program graduates.
``(3) Fines.--In addition to the actions authorized in
section 487(c), the Secretary may impose a fine not to exceed
$25,000 on an institution of higher education for failure to
provide the information described in this subsection in a
timely or accurate manner.
``(4) Special rule.--In the case of an institution of
higher education that conducts a traditional teacher
preparation program or an alternative certification program,
with fewer than 10 scores reported on any single initial
teacher certification or licensure assessment during an
academic year, the institution shall collect and publish
information with respect to an average pass rate and scaled
score on each State certification or licensure assessment taken
over a 3-year period.
``(b) State Report Card on the Quality of Teacher Preparation.--
Each State that receives funds under this Act shall provide to the
Secretary, annually, in a uniform and comprehensible manner that
conforms with the definitions and methods established by the Secretary,
a State report card on the quality of teacher preparation in the State,
both for traditional certification programs and for alternative
certification programs, which shall include not less than the
following:
``(1) A description of the teacher certification or
licensure assessments, and any other certification or licensure
requirements, used by the State.
``(2) The standards and criteria that prospective teachers
must meet in order to attain initial teacher certification or
licensure and to be certified or licensed to teach in
particular academic subject areas or in particular grades
within the State.
``(3) A description of how the assessments and requirements
described in paragraph (1) are aligned with the State's
standards and assessments for students.
``(4) For each of the assessments used by the State for
teacher certification or licensure--
``(A) the percentage of students at each
institution of higher education who are enrolled in a
traditional teacher preparation program or alternative
certification program, or who have completed the
traditional teacher preparation program or alternative
certification program during the 2-year period
preceding the date of the determination, who passed
each such assessment; and
``(B) the average scaled score for students at each
institution of higher education who are enrolled in a
traditional teacher preparation program or alternative
certification program, or who have completed the
traditional teacher preparation program or alternative
certification program during the 2-year period
preceding the date of the determination, who passed
each such assessment, ranked by teacher preparation
program, which shall be made available widely and
publicly.
``(5) A description of State-run and other alternative
certification programs outside of institutions of higher
education, if any, including, for each of the assessments used
by the State for teacher certification or licensure--
``(A) the percentage of individuals participating
in such programs, or who have completed such programs
during the 2-year period preceding the date of the
determination, who passed each such assessment; and
``(B) the average scaled score of individuals
participating in such programs, or who have completed
such programs during the 2-year period preceding the
date of the determination, who passed each such
assessment.
``(6) A description of the State's proposed criteria for
assessing the performance of teacher preparation programs
within institutions of higher education in the State. Such
criteria shall include indicators of the academic content
knowledge and teaching skills of students enrolled in such
programs.
``(7) For each teacher preparation program in the State,
the criteria for admission into the program, the number of
students in the program (disaggregated by race and gender), the
average number of hours of supervised practice teaching
required for those in the program, and the number of full-time
equivalent faculty and students in supervised practice
teaching.
``(c) Report of the Secretary on the Quality of Teacher
Preparation.--
``(1) Report card.--The Secretary shall provide to
Congress, and publish and make widely available, a report card
on teacher qualifications and preparation in the United States,
including all the information reported in paragraphs (1)
through (7) of subsection (b). Such report shall identify
States for which eligible States and eligible partnerships
received a grant under this part. Such report shall be so
provided, published, and made available annually.
``(2) Report to congress.--The Secretary shall report to
Congress--
``(A) a comparison of States' efforts to improve
the quality of the current and future teaching force;
``(B) a comparison of eligible partnerships'
efforts to improve the quality of the current and
future teaching force pursuant to section 203; and
``(C) regarding the national mean and median scaled
scores and pass rate on any standardized test that is
used in more than 1 State for teacher certification or
licensure.
``(3) Special rule.--In the case of teacher preparation
programs with fewer than 10 scores reported on any single
initial teacher certification or licensure assessment during an
academic year, the Secretary shall collect and publish
information with respect to an average pass rate and scaled
score on each State certification or licensure assessment taken
over a 3-year period.
``(d) Coordination.--The Secretary, to the extent practicable,
shall coordinate the information collected and published under this
part among States for individuals who took State teacher certification
or licensure assessments in a State other than the State in which the
individual received the individual's most recent degree.
``(e) Data Quality.--Either of the following entities shall attest
annually, in writing, as to the reliability, validity, integrity, and
accuracy of the data submitted pursuant to this section:
``(1) The Governor of the State.
``(2) In the case of a State for which the constitution or
law of such State designates another individual, entity, or
agency in the State to be responsible for teacher certification
and preparation activity, such individual, entity, or agency.
``SEC. 207. STATE FUNCTIONS.
``(a) State Assessment.--In order to receive funds under this Act,
a State shall have in place a procedure to identify and assist, through
the provision of technical assistance, low-performing programs of
teacher preparation within institutions of higher education. Such State
shall provide the Secretary an annual list of such low-performing
institutions that includes an identification of those institutions at
risk of being placed on such list. Such levels of performance shall be
determined solely by the State and may include criteria based on
information collected pursuant to this part. Such assessment shall be
described in the report under section 206(b).
``(b) Termination of Eligibility.--Any institution of higher
education that offers a program of teacher preparation from which the
State has withdrawn the State's approval or terminated the State's
financial support due to the low performance of the institution's
teacher preparation program based upon the State assessment described
in subsection (a)--
``(1) shall be ineligible for any funding for professional
development activities awarded by the Department; and
``(2) shall not be permitted to accept or enroll any
student that receives aid under title IV in the institution's
teacher preparation program.
``SEC. 208. GENERAL PROVISIONS.
``(a) Methods.--In complying with sections 206 and 207, the
Secretary shall ensure that States and institutions of higher education
use fair and equitable methods in reporting and that the reporting
methods do not allow identification of individuals.
``(b) Special Rule.--For each State that does not use content
assessments as a means of ensuring that all teachers teaching in core
academic subjects within the State are highly qualified not later than
the end of the 2005-2006 school year, as required under section 1119 of
the Elementary and Secondary Education Act of 1965--
``(1) the Secretary shall, to the extent practicable,
collect data comparable to the data required under this part
from States, local educational agencies, institutions of higher
education, or other entities that administer such assessments
to teachers or prospective teachers; and
``(2) notwithstanding any other provision of this part, the
Secretary shall use such data to carry out requirements of this
part related to assessments, pass rates, and scaled scores.
``(c) Limitations.--
``(1) Federal control prohibited.--Nothing in this part
shall be construed to permit, allow, encourage, or authorize
any Federal control over any aspect of any private, religious,
or home school, whether or not a home school is treated as a
private school or home school under State law. This section
shall not be construed to prohibit private, religious, or home
schools from participation in programs or services under this
part.
``(2) No change in state control encouraged or required.--
Nothing in this part shall be construed to encourage or require
any change in a State's treatment of any private, religious, or
home school, whether or not a home school is treated as a
private school or home school under State law.
``(3) National system of teacher certification
prohibited.--Nothing in this part shall be construed to permit,
allow, encourage, or authorize the Secretary to establish or
support any national system of teacher certification.
``SEC. 209. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated to carry
out this part such sums as may be necessary for fiscal year 2006 and
each of the 4 succeeding fiscal years, of which--
``(1) 50 percent shall be available for each fiscal year to
award grants under section 202; and
``(2) 50 percent shall be available for each fiscal year to
award grants under section 203.
``(b) Special Rule.--If the Secretary determines that there is an
insufficient number of meritorious applications for grants under
section 202 or 203 to justify awarding the full amount described in
paragraph (1) or (2) of subsection (a), respectively, the Secretary
may, after funding the meritorious applications, use the remaining
funds for grants under the other such section.''.
Subtitle C--Merit Pay
SEC. 331. SENSE OF THE SENATE REGARDING TEACHER INCENTIVES.
It is the sense of the Senate that--
(1) teachers should be rewarded for raising student
achievement and making real progress in closing the achievement
gap that exists between students of different backgrounds; and
(2) incentives should be created for individuals who choose
to teach in low-income schools.
Subtitle D--Classroom Expense Deduction
SEC. 341. SENSE OF THE SENATE REGARDING TEACHER TAX CREDITS.
(a) Sense of the Senate.--It is the sense of the Senate that many
teachers are overburdened with the costs of managing a classroom, and
that expansion of the deduction for classroom expenses for teachers
from $250 to $400 would help ease the burden on the teacher dedicated
to helping our Nation's children learn.
(b) Amendment.--Section 62(a)(4)(D) of the Internal Revenue Code of
1986 (relating to certain expenses of elementary and secondary school
teachers) is amended--
(1) by striking ``In the case of taxable years beginning
during 2002, 2003, 2004, or 2005, the'' and inserting ``The'';
and
(2) by striking ``$250'' and inserting ``$400''.
(c) Effective Date.--The amendments made by subsection (b) shall
apply to taxable years beginning after December 31, 2004.
TITLE IV--HIGHER EDUCATION AND LIFELONG LEARNING OPPORTUNITIES
Subtitle A--Higher Education
SEC. 411. SENSE OF THE SENATE REGARDING HIGHER EDUCATION AND LIFELONG
LEARNING OPPORTUNITIES.
It is the sense of the Senate that, as the Senate considers the
reauthorization of the Higher Education Act of 1965 (20 U.S.C. 1001 et
seq.) and other related legislation, the Senate should explore efforts
to improve and expand access to higher education and also make higher
education more accountable, including consideration of how to--
(1) address the rising costs of higher education;
(2) promote student academic preparation for postsecondary
education;
(3) encourage efforts to increase the availability of
financial aid information for those who need the financial aid
most;
(4) simplify the student aid application process and
improve the administration of the student aid programs;
(5) improve efforts to help parents and students find and
utilize information about attending and paying for college;
(6) improve the level of accountability in the Federal
student aid programs;
(7) take steps to ensure the long-term availability of
Federal Pell Grant funds by--
(A) addressing the current Federal Pell Grant
program shortfall;
(B) exploring initiatives to reduce the time to
graduation; and
(C) making efforts to ensure the fair distribution
of Federal Pell Grant funds to eligible recipients;
(8) promote quality educational opportunities for all
students, including nontraditional students, that will equip
graduates with the skills the graduates need to continue
lifelong learning and succeed in the 21st century workforce;
(9) support stronger partnerships between businesses and
institutions of higher education;
(10) strengthen collaboration between higher education
programs, and other Federal, State, and local education and
training programs; and
(11) promote the access to and affordability of higher
education through the use of technology and distance learning.
SEC. 412. SENSE OF THE SENATE REGARDING MINORITY SERVING INSTITUTIONS.
It is the sense of the Senate that historically Black colleges and
universities (HBCUs), historically Black graduate institutions (HBGIs),
Hispanic-serving institutions (HSIs), and tribally controlled colleges
or universities (TCCUs) are a source of accomplishment and great pride
for their respective communities as well as the entire Nation, and that
such institutions offer all students, regardless of race, an
opportunity to develop their skills and talents by training young
people who go on to serve domestically and internationally in the
professions as entrepreneurs, and in the public and private sectors,
and therefore every effort should be made to increase funding for such
institutions.
Subtitle B--Workforce Investment Act Amendments of 2005
SEC. 421. SHORT TITLE.
This subtitle may be cited as the ``Workforce Investment Act
Amendments of 2005''.
SEC. 422. REFERENCES.
Except as otherwise expressly provided, wherever in this subtitle
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.).
CHAPTER 1--AMENDMENTS TO TITLE I OF THE WORKFORCE INVESTMENT ACT OF
1998
Subchapter A--Definitions
SEC. 431. 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))--
(A) in subparagraph (B), by striking ``and'' after
the semicolon;
(B) in subparagraph (C)--
(i) 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) for 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.), 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 (35) (as redesignated by paragraph (1)),
by inserting ``, subject to section 121(b)(1)(C)'' after
``121(b)(1)'';
(15) 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).'';
(16) 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.'';
(17) 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)'';
(18) 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
(19) 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)''.
Subchapter B--Statewide and Local Workforce Investment Systems
SEC. 432. 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. 432A. 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. 2811(d)) is amended--
(1) in paragraph (1), by striking ``development'' and
inserting ``development, implementation, and revision'';
(2) in paragraph (2), by striking ``section 134(c)'' and
inserting ``section 121(e)'';
(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 systems 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; and
``(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;
``(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 systems;'';
(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 striking ``section 503'' and inserting
``section 136(i)(1)''; 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. 2811(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) Sunshine Provision.--Section 111(g) (29 U.S.C. 2822(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''.
(e) Authority To Hire Staff.--Section 111 (29 U.S.C. 2811)) is
amended by adding at the end the following:
``(h) Authority To Hire Staff.--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).''.
SEC. 432B. STATE PLAN.
(a) Planning Cycle.--Section 112(a) (29 U.S.C. 2822(a)) is
amended--
(1) by striking ``5-year strategy'' and inserting ``4-year
strategy''; and
(2) 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;
``(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;
``(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 one-stop delivery systems 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. 432C. 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, 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, 2002, 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. 432D. 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
serving 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''; and
(D) by striking clause (vi) and inserting the
following:
``(vi) 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)(ii)''.
(d) Functions.--Section 117(d) (29 U.S.C. 2832(d)) is amended--
(1) 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.'';
(2) 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'';
(3) 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'';
(4) 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
(5) 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) 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.''.
(g) 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. 432E. 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, 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 (14); 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;
``(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; and''.
SEC. 432F. 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 comprehensive 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 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 one-stop delivery systems.
``(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, 2005, 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 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. 432G. 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) 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.
``(b) Criteria.--
``(1) In general.--The criteria established by the Governor
pursuant to subsection (a) shall take into account--
``(A) the performance of providers of training
services with respect to the performance measures
described in section 136 or other appropriate measures
of performance outcomes for those individuals 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 to provide training services to
hard-to-serve populations, including individuals with
disabilities; and
``(G) 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 and renewal.--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). The criteria
shall also provide for annual review and renewal of eligibility
under this section for providers of training services.
``(3) 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.
``(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.--
``(1) In general.--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 provided by providers of
training services in the State in accordance with subsection
(b) and such other information as the Governor determines is
appropriate, including information on program costs for
participants in applicable programs, is provided to the one-
stop delivery system in the State. The list and the information
shall be made available to such participants and to members of
the public through the one-stop delivery system in the State.
``(2) Special rule.--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.) shall be included on the list of eligible
providers described in paragraph (1) for so long as such entity
remains certified by the Department of Labor.
``(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, and information required under this section, the Governor
shall provide an opportunity for interested members of the public to
make recommendations and submit comments regarding such criteria,
procedures, and information.
``(h) Transition Period for Implementation.--The requirements of
this section shall be implemented not later than December 31, 2005. 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, 2005, or until such earlier date as the Governor
determines to be appropriate.
``(i) On-the-Job Training or Customized Training Exception.--
``(1) In general.--Providers of on-the-job training or
customized training shall not be subject to the requirements of
subsections (a) through (h).
``(2) Collection and dissemination of information.--A one-
stop operator in a local area shall collect such performance
information from on-the-job training and customized training
providers as the Governor may require, determine whether the
providers meet such performance criteria as the Governor may
require, and disseminate information identifying providers that
meet the criteria as eligible providers, and the performance
information, through the one-stop delivery system. Providers
determined to meet the criteria shall be considered to be
identified as eligible providers of training services.''.
SEC. 432H. 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. 432I. YOUTH ACTIVITIES.
(a) State Allotments.--Section 127 (29 U.S.C. 2852) is amended--
(1) in subsection (a)(1), by striking ``opportunity'' and
inserting ``challenge''; and
(2) by striking subsection (b) and inserting the following:
``(b) Allotment Among States.--
``(1) Youth activities.--
``(A) Youth challenge grants.--
``(i) 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 challenge grants and other
activities under section 169 (relating to youth
challenge grants) and provide youth activities
under section 167 (relating to migrant and
seasonal farmworker programs).
``(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.--
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.
``(iv) Native americans.--From the
remainder of the amount appropriated under
section 137(a) for each fiscal year the
Secretary shall reserve not more than 1\1/2\
percent of such amount to provide youth
activities under section 166 (relating to
Native Americans).
``(B) Outlying areas.--
``(i) In general.--From the amount made
available under subsection (a)(2) for each
fiscal year the Secretary shall reserve not
more than \1/4\ of 1 percent of the amount
appropriated under section 137(a) for the
fiscal year 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 2003 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 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.--Subject to clauses (iii)
and (iv), 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 2003.
``(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 2003.
``(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 2005.
(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 (subject to
paragraph (3)) 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
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
requires additional assistance to
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 one-stop delivery
systems;
``(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; and
``(H) supporting the provision of core services
described in section 134(d)(2) in the one-stop delivery
system in the State.
``(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. 432J. 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
paragraph (4) or (5) of subsection (a), 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), by striking
``Subject to subclause (IV), the'' and
inserting ``The'';
(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 subsection
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 2005.
(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) 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)''.
(3) 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, of 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.''.
(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 2005.
(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;
``(II) information identifying
eligible providers of on-the-job
training and customized training;
``(III) performance information and
program cost information, as described
in subsections (d) and (i) of section
122; and
``(IV) 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 recognition of exceptional achievement
relating to--
``(I) regional cooperation among
local boards (including local boards in
a designated region as described in
section 116(c));
``(II) expanded local coordination
of programs and activities carried out
as part of a comprehensive workforce
investment system, including--
``(aa) employment services
under the Wagner-Peyser Act (29
U.S.C. 49 et seq.) and core
activities under this title;
and
``(bb) one-stop partner
programs described in section
121;
``(III) performance by local areas
as described in section 136(i)(2); and
``(IV) providing expanded access to
education and training services,
especially through increased leveraging
of resources other than those provided
through programs under this title;
``(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, 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 systems 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;
``(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;
and
``(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;
``(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 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 comprehensive
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) 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;'';
(iii) in subparagraph (E)(iii)--
(I) by inserting ``, career
ladders,'' after ``earnings''; and
(II) by striking ``and'' at the
end;
(iv) in subparagraph (F)--
(I) by striking ``and program cost
information''; and
(II) by striking ``described in
section 123'';
(v) 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
(vi) 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, and financial literacy
activities.
``(ix) Out-of-area job search assistance
and relocation assistance.
``(x) 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
``individual training account''
and inserting ``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
``individual training account''
and inserting ``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) in clause (iv)--
(aa) by redesignating
subclause (IV) as subclause
(V); and
(bb) by inserting after
subclause (III) the following:
``(IV) Individuals with
disabilities.''.
(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 employment;
``(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
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.);
``(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
``(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.'';
(B) in paragraph (2), by striking the matter
preceding subparagraph (A) and inserting the following:
``(2) Supportive services.--Funds allocated to a local area
for adults under paragraph (2)(A) or (3), as appropriate, of
section 133(b), and funds allocated to the local area for
dislocated workers under section 133(b)(2)(B), may be used to
provide supportive services to adults and dislocated workers,
respectively--''; and
(C) 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. 432K. 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) attainment of secondary
school diplomas or their recognized
equivalents, and 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, 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))--
(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, 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 served and the
cost per participant; and
``(H) 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) 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) is amended--
(1) in paragraph (1)(B), 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''; and
(2) in paragraph (2), by striking ``section 503'' and
inserting ``subsection (i)(1)''.
(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) in carrying out programs under chapters 4 and 5.
``(2) Basis.--The Governor shall award the grants on the
basis--
``(A) that the local areas met or exceeded the
performance measures established under subsection
(c)(2) relating to indicators described in subsection
(b)(3)(A)(iii);
``(B) of exemplary performance of the local areas
in serving hard-to-serve populations; or
``(C) that the local areas are effectively--
``(i) coordinating multiple systems 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 activities under this title as
well as one-stop partner programs described in
section 121;
``(ii) expanding access to training,
including through increased leveraging of
resources other than those funded through
programs under this title; or
``(iii) implementing innovative business
and economic development initiatives.
``(3) Use of funds.--The funds awarded to a local area
under this paragraph may be used to carry out activities
authorized for local areas under chapters 4 and 5, and such
demonstration projects or innovative programs for hard-to-serve
populations as may be approved by the Governor.''.
(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. 432L. 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''.
Subchapter C--Job Corps
SEC. 433. 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''.
Subchapter D--National Programs
SEC. 434. 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
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 fiscal year 2006.''.
(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 purposes of the programs under this
section as described in paragraph (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. 434A. MIGRANT AND SEASONAL FARMWORKER PROGRAMS.
Section 167(d) (29 U.S.C. 2912(d)) is amended by inserting
``(including permanent housing)'' after ``housing''.
SEC. 434B. VETERANS' WORKFORCE INVESTMENT PROGRAMS.
Section 168(a)(3)(C) (29 U.S.C. 2913(a)(3)(C)) is amended by
striking ``section 134(c)'' and inserting ``section 121(e)''.
SEC. 434C. 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 discretionary grants under subsection (c).
``(b) Competitive Grants to States and Local Areas.--
``(1) Establishment.--From the funds described in
subsection (a)(1), the Secretary shall award competitive grants
to eligible entities to carry out activities authorized under
this 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) 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 including the comments, if any, of the
affected State boards on the application, except that
this subparagraph shall not apply to an eligible entity
described in paragraph (2)(C).
``(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 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; and
``(viii) the quality of proposed activities
in meeting the needs of the youth to be served.
``(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
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) Discretionary Grants for Youth Activities.--
``(1) In general.--From the funds described in subsection
(a)(2), the Secretary may award grants to eligible entities to
provide activities that will assist youth in preparing for, and
entering and retaining, employment.
``(2) Eligible entity.--In this subsection, the term
`eligible entity' means a public or private entity that the
Secretary determines would effectively carry out activities
relating to youth under this subsection.
``(3) Equitable distribution to rural areas.--In awarding
grants under this subsection the Secretary shall ensure an
equitable distribution of such grants to rural areas.
``(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) 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, and entering and retaining,
employment, including the activities described
in section 129 for out-of-school youth;
``(ii) activities designed to assist in-
school youth to stay in school and gain work
experience;
``(iii) activities designed to assist youth
in economically distressed areas; and
``(iv) such other activities that the
Secretary determines are appropriate to ensure
that youth entering the workforce have the
skills needed by employers.
``(B) 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) 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.
``(7) 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. 434D. 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 172 to address
knowledge gaps identified under paragraph (2).''.
SEC. 434E. 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 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) 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;
``(E) projects carried out by States and local
areas to test innovative approaches to delivering
employment-related services;'';
(C) in subparagraph (G), by striking ``and'' after
the semicolon; and
(D) by striking subparagraph (H) and inserting the
following:
``(H) 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;
``(I) 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
they need to upgrade skills;
``(J) 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
``(K) 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 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 industries, including
biotechnology, telecommunications, highly automated
manufacturing (including semiconductors),
nanotechnology, and energy technology; 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 one 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 local and
State 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 one 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 that--
``(I) serves unemployed, limited
English proficient individuals with
significant work experience or
substantial education but persistently
low wages; and
``(II) 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.
``(ii) A program that--
``(I) serves limited English
proficient individuals with lower
levels of oral and written fluency, who
are working but at persistently low
wages; and
``(II) 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.
``(iii) A program that--
``(I) serves unemployed, limited
English proficient individuals with
lower levels of oral and written
fluency, who have little or no work
experience; and
``(II) 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).
``(iv) A program 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, with a random
assignment, experimental design impact study done 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.''.
SEC. 434F. 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 striking the matter preceding paragraph (1)
and inserting the following:
``(a) In General.--The Secretary is authorized to award national
dislocated worker grants--'';
(B) in paragraph (1), by striking ``subsection
(c)'' and inserting ``subsection (b)'';
(C) in paragraph (3), by striking ``and'' after the
semicolon; and
(D) by striking paragraph (4) and inserting the
following:
``(4) to a State or entity (as defined in subsection
(b)(1)(B)) to carry out subsection (e), including providing
assistance to eligible individuals;
``(5) to a State or entity (as defined in subsection
(b)(1)(B)) to carry out subsection (f), including providing
assistance to eligible individuals;
``(6) to provide additional assistance to a State board or
local board where a higher than average demand for employment
and training services for dislocated members of the Armed
Forces, or spouses, as defined in section 101(9)(E), of members
of the Armed Forces as 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
``(7) to provide assistance to a State for statewide or
local use in order to--
``(A) address cases in which there have been worker
dislocations across multiple sectors or across multiple
local areas and such workers remain dislocated;
``(B) coordinate the State plan described in
section 112 with emerging economic development needs;
and
``(C) train eligible individuals who are dislocated
workers described in subparagraph (A).
The Secretary shall issue a final decision on an application for a
national dislocated worker grant under this subsection not later than
60 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 paragraph (2) of subsection (b) (as redesignated by
paragraph (2))--
(A) in subparagraph (A), in the matter preceding
clause (i), by striking ``national emergency grant''
and inserting ``national dislocated worker grant''; and
(B) in subparagraph (C), by striking ``national
emergency grants'' and inserting ``national dislocated
worker grants'';
(4) 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 (4)'';
(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)(4)'';
(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 (5)''; 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)(5)''.
SEC. 434G. 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.--There are authorized to be appropriated
to carry out sections 170 through 172, section 136(i), and section 503
such sums as may be necessary for each of fiscal years 2006 through
2011.''.
(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)(4)'';
and
(2) in paragraphs (1)(B) and (2)(B), by striking
``subsection (a)(4)(B)'' and inserting ``subsection (a)(5)''.
Subchapter E--Administration
SEC. 435. REQUIREMENTS AND RESTRICTIONS.
Section 181(e) (29 U.S.C. 2931(e)) is amended by striking
``economic development activities,''.
SEC. 435A. 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. 435B. 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,''; and
(2) 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.''.
SEC. 435C. 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. 435D. 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.
Subchapter F--Incentive Grants
SEC. 436. INCENTIVE GRANTS.
Section 503 (20 U.S.C. 9273) is amended--
(1) by striking subsection (a) and inserting the following:
``(a) In General.--
``(1) Prior to july 1, 2005.--Prior to July 1, 2005, 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.
``(2) Beginning on july 1, 2005.--Beginning on July 1,
2005, the Secretary shall award a grant to each State on the
basis--
``(A) of the State's exceeding the State adjusted
levels of performance for title I, the adjusted levels
of performance for title II, and the levels of
performance for programs under the Carl D. Perkins
Vocational and Technical Education Act of 1998 (20
U.S.C. 2301 et seq.), for the purpose of carrying out
an innovative program consistent with the requirements
of any one or more of the programs within title I,
title II, or such Act, respectively;
``(B) of exemplary performance of the States in
serving hard-to-serve populations (as defined in
section 101) (including performance relating to the
levels of service provided and the performance outcomes
on such performance measures with respect to the
populations);
``(C) of States that are effectively--
``(i) coordinating multiple systems into a
more effective workforce investment system,
including coordination of employment services
under the Wagner-Peyser Act (29 U.S.C. 49 et
seq.) and core activities under title I as well
as partner programs described in section 121;
``(ii) expanding access to training,
including through increased leveraging of
resources other than those funded through
programs under title I; or
``(iii) implementing innovative business
and economic development initiatives; or
``(D) of such other factors relating to the
performance of the States under title I as the
Secretary determines are appropriate.''; and
(2) in subsection (b)(2), by adding at the end the
following:
``(D) Use of funds.--The funds awarded to a State
under this section may be used to carry out any
activities authorized for States under chapters 4 and 5
of subtitle B of title I, title II, and the Carl D.
Perkins Vocational and Technical Education Act of 1998
(20 U.S.C. 2301 et seq.), including demonstration
projects and innovative programs for hard-to-serve
populations (as defined in section 101).''.
Subchapter G--Conforming Amendments
SEC. 437. CONFORMING AMENDMENTS.
(a) Older Americans Act of 1965.--Section 512(a) of the Older
Americans Act of 1965 (42 U.S.C. 3056j(a)) is amended by striking
``(B)(vi)'' and inserting ``(B)(v)''.
(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)''.
CHAPTER 2--AMENDMENTS TO THE ADULT EDUCATION AND FAMILY LITERACY ACT
SEC. 441. SHORT TITLE; PURPOSE.
(a) Short Title.--This chapter 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. 441A. 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 redesignating paragraphs (7) through (18) as
paragraphs (8) through (19), respectively;
(6) 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).''; and
(7) by striking paragraph (19), as redesignated by
paragraph (4), 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. 441B. 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. 441C. 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 literacy program, family literacy services,
or adult education.''.
SEC. 441D. 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 136(i); 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)(1)(B), by striking ``$250,000'' and
inserting ``$350,000'';
(3) by striking subsection (d) and inserting the following:
``(d) Qualifying Adult.--For the purpose of subsection (c)(2), the
term `qualifying adult' means an adult who--
``(1) is not less than 16 years of age;
``(2) is beyond the age of compulsory school attendance
under the law of the State or outlying area;
``(3) does not have a secondary school diploma or its
recognized equivalent; and
``(4) is not enrolled in secondary school.'';
(4) in subsection (e)--
(A) by striking paragraph (2) and inserting the
following:
``(2) Award basis.--The Secretary shall award grants
pursuant to paragraph (1) on a competitive basis and pursuant
to recommendations from the Pacific Region Educational
Laboratory in Honolulu, Hawaii.''; and
(B) in paragraph (3), by striking ``shall'' and all
that follows through the period and inserting ``shall
be eligible to receive a grant under this title until
the date when an agreement for the extension of the
United States education assistance under the Compact of
Free Association for each of the Freely Associated
States becomes effective.''; and
(5) 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.''.
SEC. 441E. 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 ``employment performance indicators'';
(B) in paragraph (2)--
(i) in subparagraph (A)--
(I) in clause (i), by striking
``Demonstrated'' and inserting
``Measurable'';
(II) by striking clause (ii) and
inserting the following:
``(ii) Placement in, retention in, or
completion of, postsecondary education or other
training programs.''; and
(III) in clause (iii), by inserting
``(including recognized alternative
standards for individuals with
disabilities)'' after ``equivalent'';
(ii) by redesignating subparagraph (B) as
subparagraph (C);
(iii) by inserting after subparagraph (A),
the following:
``(B) Employment performance indicators.--An
eligible agency shall identify in the State plan
individual participant employment performance
indicators, including entry into unsubsidized
employment, retention in unsubsidized employment, and
career advancement. The State workforce investment
board shall assist the eligible agency in obtaining and
using quarterly wage records to collect data for such
indicators, consistent with applicable Federal and
State privacy laws.'';
(iv) in subparagraph (C), as redesignated
by clause (ii), by inserting ``relevant'' after
``additional''; and
(v) by adding at the end the following:
``(D) 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 programs 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''; 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) The number and type of each eligible provider
that receives funding under such grant.
``(C) 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. 441F. 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. 441G. 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. 441H. 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'' 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 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;
``(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 they 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.
``(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 State supported postsecondary
education institutions.
``(v) Where appropriate, the basic and
literacy skill content of occupational and
industry skill standards widely used by
business and industry in the State.
``(15) In cooperation with efforts funded under sections
242 and 243, development and piloting of--
``(A) new assessment tools and strategies that
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. 441I. 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) in paragraph (4), by striking ``will ensure the
improvement of'' and inserting ``improved'';
(E) by redesignating paragraphs (5) through (12) as
paragraphs (6) through (13), respectively;
(F) 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;'';
(G) in paragraph (6) (as redesignated by
subparagraph (E)), 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;'';
(H) in paragraph (10) (as redesignated by
subparagraph (E)), 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;
``(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 defined in section 101;'';
(I) in paragraph (11) (as redesignated by
subparagraph (E))--
(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 who are employed, but at levels below
self-sufficiency, as defined in section 101.'';
(J) in paragraph (12) (as redesignated by
subparagraph (E))--
(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;
(K) in paragraph (13) (as redesignated by
subparagraph (E)), 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
(L) 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
completion of secondary school programs or their 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. 441J. 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. 441K. 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'';
(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'';
(E) in paragraph (7), by inserting ``, when
appropriate and based on the most rigorous research
available,'' after ``real life contexts'';
(F) in paragraph (9), by inserting ``education,
job-training, and social service'' after ``other
available'';
(G) 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'';
(H) 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;
(I) in paragraph (12), by striking ``literacy
programs.'' and inserting ``language acquisition
programs and civics education programs;''; and
(J) 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;
``(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. 441L. 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. 441M. 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. 441N. 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'' both places such terms appear 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. 441O. 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 rigorous research 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. 441P. 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 around
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 research 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. 441Q. 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 Immigration and
Naturalization Service data 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
Immigration and Naturalization Service data 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. 441R. 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
chapter) 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).
CHAPTER 3--AMENDMENTS TO OTHER PROVISIONS OF LAW
SEC. 451. 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 comprehensive one-stop centers established
under title I of the Workforce Investment Act of 1998 (29 U.S.C. 2801
et seq.).''.
(c) Cooperative Statistical Program.--Section 14 of the Wagner-
Peyser Act (29 U.S.C. 49l-1) is amended by striking the section heading
and all that follows through ``There'' and inserting the following:
``SEC. 14. COOPERATIVE STATISTICAL PROGRAM.
``There''.
(d) 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)(2)(E)--
(A) in clause (i), by adding ``and'' at the end;
(B) in clause (ii), by striking ``; and'' and
inserting a period; and
(C) by striking clause (iii);
(5) by striking subsections (c) and (d) and inserting the
following:
``(c) National Electronic Tools To Provide Services.--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.
``(d) Two-Year Plan.--The Secretary, working through the Bureau of
Labor Statistics, and in cooperation with the States and with the
assistance of the Employment and Training Administration and 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, pursuant to a process established by the Secretary
in cooperation with the States in accordance with subsection
(i).'';
(6) in subsection (e)(2)--
(A) in subparagraph (G), by adding ``and'' at the
end;
(B) by striking subparagraph (H); and
(C) by redesignating subparagraph (I) as
subparagraph (H);
(7) in subsection (g), by striking ``1999 through 2004''
and inserting ``2006 through 2011 to enable the Secretary to
carry out the provisions of this section in a timely manner
through grants or cooperative agreements with the States'';
(8) in subsection (g)--
(A) by striking ``There are'' and inserting the
following:
``(1) In general.--There are''; and
(B) by adding at the end the following:
``(2) Distribution of funds.--With regard to distributing
funds appropriated under paragraph (1) (relating to workforce
and labor market information funding) for fiscal years 2006
through 2011, the Secretary shall continue to distribute the
funds to the States in the manner in which the Secretary
distributed funds to the States under this section for fiscal
years 1999 through 2003.''; and
(9) by adding at the end the following:
``(i) Coordination With the States.--The Secretary, working though
the Bureau of Labor Statistics and in coordination with the Employment
and Training Administration, shall consult at least annually with
representatives of each of the 10 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).''.
CHAPTER 4--REHABILITATION ACT AMENDMENTS
SEC. 461. SHORT TITLE.
This chapter may be cited as the ``Rehabilitation Act Amendments of
2005''.
SEC. 461A. TECHNICAL AMENDMENTS TO TABLE OF CONTENTS.
(a) Incentive Grants.--Section 1(b) of the Rehabilitation Act of
1973 (29 U.S.C. 701 note) is amended by inserting after the item
relating to section 112 the following:
``Sec. 113. Incentive grants.''.
(b) Independent Living Services for Older Individuals Who Are
Blind.--Section 1(b) of the Rehabilitation Act of 1973 (29 U.S.C. 701
note) 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. 461B. PURPOSE.
Section 2(b) of the Rehabilitation Act of 1973 (29 U.S.C. 701(b))
is amended--
(1) in paragraph (1)(F), 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) to provide opportunities for employers and
rehabilitation service providers to provide meaningful input at
all levels of government to ensure successful employment of
individuals with disabilities.''.
SEC. 461C. 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 paragraph (7) and inserting the following:
``(7) Consumer organization.--The term `consumer
organization' means a membership organization in which a
majority of the organization's members and a majority of the
organization's officers are individuals with disabilities.'';
(3) 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) maintaining individuals with significant
disabilities in, or transitioning individuals with
significant disabilities to, community-based living.'';
(4) by redesignating paragraphs (24) through (28), (29)
through (34), and (35) through (39), as paragraphs (25) through
(29), (31) through (36), and (38) through (42), respectively;
(5) 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).'';
(6) by inserting after paragraph (29), as redesignated by
paragraph (4), 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.'';
(7) by inserting after paragraph (36), as redesignated by
paragraph (4), 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 14 years of age;
``(ii) is not older than 21 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 and related services under
part B of the Individuals with Disabilities
Education Act; 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.''; and
(8) in paragraph (38)(A)(ii), as redesignated by paragraph
(4), by striking ``paragraph (36)(C)'' and inserting
``paragraph (39)(C)''.
SEC. 461D. 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)'';
(2) by striking the semicolon and inserting ``; and''; and
(3) by adding at the end the following:
``(B) provide technical assistance to the designated State
units on developing successful partnerships with employers;''.
SEC. 461E. CARRYOVER.
Section 19 of the Rehabilitation Act of 1973 (29 U.S.C. 716) is
amended--
(1) in subsection (a)(1)--
(A) by striking ``, section 509 (except as provided
in section 509(b))'';
(B) by striking ``or (C)''; and
(C) by striking ``752(b)'' and inserting
``753(b)''; and
(2) by adding at the end the following:
``(c) 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 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 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.''.
Subchapter A--Vocational Rehabilitation Services
SEC. 462. 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. 462A. STATE PLANS.
Section 101(a) of the Rehabilitation Act of 1973 (29 U.S.C. 721(a))
is amended--
(1) in paragraph (6)(B), by striking ``to employ and
advance in employment'' and inserting ``to recruit, employ, and
advance in employment'';
(2) 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'';
(3) in paragraph (8)(A), by adding at the end the
following:
``(iii) Services identified in
individualized work plan.--For purposes of
clause (i), for an individual who receives
assistance under the Ticket to Work and Self-
Sufficiency Program established under section
1148 of the Social Security Act (42 U.S.C.
1320b-19), comparable benefits and services
available under such program only include those
benefits and services identified in the
individual's individualized work plan developed
by an employment network pursuant to such
section.'';
(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 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
increases in earnings of such individuals,
consistent with State reporting
responsibilities pursuant to 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 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 ticket to work and self-
sufficiency program.--The State plan shall provide that
the designated State unit will coordinate activities
with any other State agency that administers a Ticket
to Work and Self-Sufficiency Program established under
section 1148 of the Social Security Act (42 U.S.C.
1320b-19).''; and
(6) in paragraph (20)--
(A) by redesignating subparagraph (B) as
subparagraph (D);
(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, information on the availability of--
``(i) medical assistance under the State
medicaid program under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.);
``(ii) benefits under the medicare program
under title XVIII of the Social Security Act
(42 U.S.C. 1395 et seq.);
``(iii) assistance through benefits
planning and assistance programs under section
1149 of the Social Security Act (42 U.S.C.
1320b-20) and protection and advocacy programs
under section 1150 of the Social Security Act
(42 U.S.C. 1320b-21); and
``(iv) medical assistance under other
federally funded programs.
``(C) Information for individuals under the ticket
to work program.--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 and eligible for assistance 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
Ticket to Work and Self-Sufficiency Program and
specific information on how to contact the program
manager of the Ticket to Work and Self-Sufficiency
Program to obtain information on approved employment
networks.''; and
(C) in subparagraph (D)(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''.
SEC. 462B. 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), 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, information on the availability of--
``(I) medical assistance under the State
medicaid program under title XIX of the Social
Security Act (42 U.S.C. 1396 et seq.);
``(II) benefits under the medicare program
under title XVIII of the Social Security Act
(42 U.S.C. 1395 et seq.);
``(III) assistance through benefits
planning and assistance programs under section
1149 of the Social Security Act (42 U.S.C.
1320b-20) and protection and advocacy programs
under section 1150 of the Social Security Act
(42 U.S.C. 1320b-21); and
``(IV) medical assistance under other
federally funded programs; and
``(iv) 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 and eligible for assistance under the
Ticket to Work and Self-Sufficiency Program established
under section 1148 of the Social Security Act (42
U.S.C. 1320b-19), information--
``(I) on the options under the Ticket to
Work and Self-Sufficiency Program; and
``(II) on how to contact the program
manager of the Ticket to Work and Self-
Sufficiency Program who has contact information
on approved employment networks, the benefits
planning and assistance programs in the area,
and the protection and advocacy programs in the
area.'';
(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
inserting ``mentoring services, and personal
assistance services'';
(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--
``(i) in paragraph (3)(A), may be a
description of the student's projected post-
school employment outcome; and
``(ii) in paragraph (3)(B), 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
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 services such
individual receives from an employment network other
than the designated State unit.''; and
(2) in subsection (c)(7), by inserting ``that take into
consideration the informed choice of the individual,'' after
``plan development,''.
SEC. 462C. VOCATIONAL REHABILITATION SERVICES.
Section 103(a) of the Rehabilitation Act of 1973 (29 U.S.C. 723(a))
is amended--
(1) in paragraph (5), by inserting ``literacy services,''
after ``vocational adjustment services,'';
(2) in paragraph (17), by striking ``and'' after the
semicolon;
(3) in paragraph (18), by striking the period at the end
and inserting ``; and''; and
(4) by adding at the end the following:
``(19) mentoring services.''.
SEC. 462D. STATE REHABILITATION COUNCIL.
Section 105(b) of the Rehabilitation Act of 1973 (29 U.S.C. 725(b))
is amended--
(1) in paragraph (1)(A), by striking clause (ix) and
inserting the following:
``(ix) 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.''.
SEC. 462E. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.
Section 106(b)(2)(B)(i) of the Rehabilitation Act of 1973 (29
U.S.C. 726(b)(2)(B)(i)) is amended 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 allocating a higher proportion
of the State's resources for services to individuals with disabilities
if the State's spending on such services is low in comparison to
spending on such services in comparable agencies in other States;''.
SEC. 462F. 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) Reallotment.--
``(1) Determination.--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 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) Formula.--
``(A) In general.--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) Formula.--
``(i) Eligible states.--The Commissioner
shall reallot 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 increased by the
percentage change in the funds available for
subsection (a) from the immediately preceding
fiscal year.
``(ii) Amount.--
``(I) In general.--A State that is
eligible to receive a reallotment under
clause (i) shall receive an amount 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 received 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) Insufficient funds.--If the
amount available for reallotment under
paragraph (1) is insufficient to
provide each State eligible to receive
a reallotment with the amount described
in subclause (I), the amount reallotted
to each eligible State shall be
determined by the Commissioner.
``(C) Remaining funds.--If there are funds
remaining after each State eligible to receive a
reallotment under subparagraph (B)(i) receives the
amount described in subparagraph (B)(ii), the
Commissioner shall reallot the remaining funds among
the States requesting a reallotment.
``(3) Non-federal share.--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) Increase in allotment.--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, 2004; 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 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; and
``(ii) not more than 1.5 percent of the appropriated amount
for the covered year.''.
SEC. 462G. CLIENT ASSISTANCE PROGRAM.
Section 112 of the Rehabilitation Act of 1973 (29 U.S.C. 732) is
amended--
(1) in subsection (a), by striking ``States'' and inserting
``agencies designated under subsection (c)'';
(2) 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 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) Beginning on October 1, 2004, 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 grants 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 grants
shall be the same amount as provided to territories 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 training and technical assistance to the
programs established under this section. Such training and technical
assistance shall be coordinated with activities provided under section
509(c)(1)(A).'';
(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''; and
(C) in paragraph (3), by striking ``Except as
specifically prohibited by or as otherwise provided in
State law, the Secretary shall pay'' and inserting
``The Secretary shall pay directly'';
(3) in subsection (f), by striking ``State'' and inserting
``agency designated under subsection (c)''; and
(4) in subsection (h), by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2006 through
2011''.
SEC. 462H. 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 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
under paragraph (1) shall--
``(A) be developed with input from State vocational
rehabilitation agencies and other vocational
rehabilitation stakeholders, including vocational
rehabilitation consumers and consumer 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. 462I. 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 grantee
demonstrated acceptable past performance and the
grantee 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 Secretary shall give
priority to paying the continuation costs of existing projects and may
provide for increases in funding for such projects as determined
necessary.''.
SEC. 462J. 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 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, 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 participants in the Ticket to Work and
Self-Sufficiency Program, including the Social Security
Administration, the Rehabilitation Services Administration,
ticketholders, State agencies, 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 State's State plan under section 101 of such Act.
(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.
Subchapter B--Research and Training
SEC. 463. AUTHORIZATION OF APPROPRIATIONS.
Section 201(a) of the Rehabilitation Act of 1973 (29 U.S.C. 761(a))
is amended--
(1) in paragraph (1), by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2006 through
2011''; and
(2) in paragraph (2), by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2006 through
2011''.
SEC. 463A. NATIONAL INSTITUTE ON DISABILITY AND REHABILITATION
RESEARCH.
Section 202(f)(1) of the Rehabilitation Act of 1973 (29 U.S.C.
762(f)(1)) is amended by striking ``Federal employees'' and inserting
``Department of Education employees''.
SEC. 464B. RESEARCH AND OTHER COVERED ACTIVITIES.
Section 204(c)(2) of the Rehabilitation Act of 1973 (29 U.S.C.
764(c)(2)) is amended by striking ``$500,000'' and inserting
``$750,000''.
SEC. 464C. REHABILITATION RESEARCH ADVISORY COUNCIL.
Section 205(c) of the Rehabilitation Act of 1973 (29 U.S.C. 765(c))
is amended by adding at the end the following: ``The Council also shall
include a representative from the business community who has experience
with the vocational rehabilitation system and hiring individuals with
disabilities.''.
Subchapter C--Professional Development and Special Projects and
Demonstrations
SEC. 464. TRAINING.
Section 302 of the Rehabilitation Act of 1973 (29 U.S.C. 772) is
amended--
(1) in subsection (b)(1)(B)(i), by striking ``or
prosthetics and orthotics'' and inserting ``prosthetics and
orthotics, rehabilitation for the blind, or orientation and
mobility instruction''; and
(2) in subsection (i), by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2006 through
2011''.
SEC. 464A. 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 (e), (f), and (h), 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 employment and adult living.
``(2) Grants authorized.--
``(A) Competitive grants authorized.--The Secretary
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 Secretary shall award grants
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 Secretary at such
time, in such manner, and including such information as the
Secretary 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 under this subsection shall use the funds made
available through the grant 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 2010.
``(d) Demonstration Project for Employment of Individuals Who Are
Deaf and Low Functioning.--
``(1) Purpose.--It is the purpose of this subsection to
support a model demonstration project to provide training 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 high
school diploma or GED.
``(B) Secondary disabilities.--Such term may
include an individual with a secondary disability.
``(3) Grants authorized.--
``(A) Competitive grants authorized.--The Secretary
may award grants to State agencies, other public
agencies or organizations, or not-for-profit
organizations with expertise in providing employment
training 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 shall develop an
innovative, comprehensive program of instruction 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 shall
implement the comprehensive training program developed
in 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
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.
``(5) Applications.--Each entity desiring to receive a
grant under this subsection shall submit an application to the
Secretary at such time, in such manner, and accompanied by such
information as the Secretary may require including--
``(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 project;
``(C) a description of how the applicant will
disseminate information about the training program
developed and the results of the model demonstration
project; and
``(D) a description of how the project will
coordinate with any other relevant service providers or
entities providing employment training and supports 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, each grant recipient
shall submit to the Commissioner a report containing--
``(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
they 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 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, its approved application.
``(C) Participant evaluation process; final
evaluation.--In the final year of the project, the
grant recipient will produce a final evaluation report
of the results of the model demonstration project
containing--
``(i) the number of individuals who
participated in the training program;
``(ii) a description of the job sites in
which those individuals were placed;
``(iii) the number of individuals placed in
employment and the type of employment in which
they were placed;
``(iv) the number of individuals who did
not complete their training and the reasons
those individuals dropped out of the project;
``(v) the number of individuals who
participated in the training project and who
remain employed as of 2 months prior to the
date on which the final report is submitted to
the Secretary;
``(vi) a written analysis of the model
project, including both the strengths and
weaknesses of the project, to assist other
entities in replicating the training program
developed through this model demonstration
project; and
``(vii) such other information as the
Secretary determines appropriate.
``(D) Dissemination.--Not later than 5 years after
the date on which an award is granted under this
subsection, the evaluations and results of activities
funded by such grant shall be disseminated to State
vocational rehabilitation agencies, school systems
providing instruction to students who are deaf,
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 2010.'';
(4) by inserting after subsection (f), as redesignated by
paragraph (2), the following:
``(g) Access to Telework.--
``(1) Definition of telework.--In this subsection, the term
`telework' means to 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
American 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 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 State that receives a grant under
this subsection shall establish or expand a telework program
that shall provide loans or other alternative financing
mechanisms to individuals with disabilities to enable such
individuals to purchase computers or other equipment, including
adaptive equipment, that facilitates work from home and other
telework sites so that such individuals are able to telework.
``(5) Annual report.--
``(A) In general.--A State that receives a grant
under this subsection shall submit an annual report to
the Commissioner.
``(B) Contents.--The report under subparagraph (A)
shall include the following:
``(i) The characteristics of each
individual with a disability that receives a
loan or other alternative financing mechanism
under the program, including information about
the individual such as the following:
``(I) Age.
``(II) Ethnicity.
``(III) Type of disability.
``(IV) Employment status at the
time of application for a loan or other
alternative financing mechanism under
this subsection.
``(V) 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.
``(VI) 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 a loan or other
alternative financing mechanism under
the program.
``(VII) Whether the individual has
repaid the loan or other alternative
financing mechanism received under the
program, is in repayment status, is
delinquent on repayments, or has
defaulted on the loan or other
alternative financing mechanism.
``(ii) Any other information that the
Commissioner may require.
``(6) Federal share.--The Federal share of the cost of
establishing a telework program shall be 10 percent of the
cost.''; and
(5) in subsection (h), as redesignated by paragraph (2)--
(A) by striking ``this section'' and inserting
``this section (other than subsections (c) and (d))'';
and
(B) by striking ``fiscal years 1999 through 2003''
and inserting ``fiscal years 2006 through 2011''.
SEC. 464B. 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. 464C. 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''.
Subchapter D--National Council on Disability
SEC. 465. 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''.
Subchapter E--Rights and Advocacy
SEC. 466. 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. 466A. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.
Section 509 of the Rehabilitation Act of 1973 (29 U.S.C. 794e) is
amended--
(1) 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''; and
(2) in subsection (l), by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2006 through
2011''.
Subchapter F--Employment Opportunities for Individuals With
Disabilities
SEC. 467. 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. 467A. 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''.
Subchapter G--Independent Living Services and Centers for Independent
Living
SEC. 468. STATE PLAN.
Section 704 of the Rehabilitation Act of 1973 (42 U.S.C. 795c) is
amended by adding at the end the following:
``(o) Promoting Full Access to Community Life.--The plan shall
describe how the State will provide independent living services that
promote full access to community life for individuals with significant
disabilities. The services shall include, as appropriate, facilitating
transitions from nursing homes and other institutions, including
institutions serving individuals with cognitive disabilities, to
community-based residences, assisting individuals with significant
disabilities at risk of entering institutions to remain in the
community, and promoting home ownership among individuals with
significant disabilities.''.
SEC. 468A. STATEWIDE INDEPENDENT LIVING COUNCIL.
(a) 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.''.
SEC. 468B. 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. 468C. PROGRAM AUTHORIZATION.
Section 721 of the Rehabilitation Act of 1973 (42 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
2003.
``(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
2003.
``(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 2003 bears to
the total amount that all States received under this subsection
for fiscal year 2003.
``(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. 468D. 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 by striking ``by September 30, 1997'' and inserting
``during the preceding year''.
SEC. 468E. 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 by striking ``by September 30, 1997'' and inserting
``during the preceding year''.
SEC. 468F. 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.--The center
shall provide independent living services that promote full
access to community life for individuals with significant
disabilities. The services shall include, as appropriate,
facilitating transitions from nursing homes and other
institutions, including institutions serving individuals with
cognitive disabilities, to community-based residences,
assisting individuals with significant disabilities at risk of
entering institutions to remain in the community, and promoting
home ownership among individuals with significant
disabilities.''.
SEC. 468G. 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. 468H. 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 2003, 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 eligible 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 funds appropriated under this chapter are
separately identified in such grant or payment and are used for the
purposes of this chapter.''.
SEC. 468I. PROGRAM OF GRANTS.
Section 753 of the Rehabilitation Act of 1973, as redesignated by
section 468H, is amended--
(1) in subsection (g), by inserting ``, or contracts
with,'' after ``grants to'';
(2) by striking subsection (h);
(3) by redesignating subsections (i) and (j) as subsections
(h) and (i), respectively;
(4) in subsection (b), by striking ``section 753'' and
inserting ``section 754'';
(5) in subsection (c)--
(A) in paragraph (1), by striking ``section 753''
and inserting ``section 754''; and
(B) in paragraph (2)--
(i) by striking ``subsection (i)'' and
inserting ``subsection (h)''; and
(ii) by striking ``subsection (j)'' and
inserting ``subsection (i)'';
(6) in subsection (h), as redesignated by paragraph (3)--
(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 (3)--
(A) by striking paragraph (2) and inserting the
following:
``(2) Minimum allotment.--
``(A) States.--In the case of the several States,
the District of Columbia, and 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 2003; 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, and
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. 468J. INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO ARE
BLIND AUTHORIZATION OF APPROPRIATIONS.
Section 754 of the Rehabilitation Act of 1973, as redesignated by
section 468H, is amended by striking ``fiscal years 1999 through 2003''
and inserting ``fiscal years 2006 through 2011''.
Subchapter H--Miscellaneous
SEC. 469. 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''.
CHAPTER 5--TRANSITION AND EFFECTIVE DATE
SEC. 471. 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 chapters 1 and 3 of this
subtitle. 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 chapters 2 and
4 of this subtitle.
SEC. 471A. EFFECTIVE DATE.
Except as otherwise provided in this subtitle, this subtitle and
the amendments made by this subtitle shall take effect on the date of
enactment of this Act.
TITLE V--MAKING EDUCATION MORE AFFORDABLE
SEC. 501. SENSE OF THE SENATE REGARDING MAKING EDUCATION MORE
AFFORDABLE.
It is the sense of the Senate that--
(1) parents should be able to trust that the tax code will
not change so that they may adequately plan how to pay for
their child's education; and
(2) therefore the following provisions in title IV of the
Economic Growth and Tax Relief Reconciliation Act of 2001
should be made permanent:
(A) The increase in the Coverdell Education Savings
Account contribution to $2,000 and the modification
that permits such money to be used for kindergarten
through grade 12 expenses.
(B) The modification making qualified tuition
savings programs tax-exempt and allowing private
institutions to offer prepaid tuition plans.
(C) The increases to the income limits for the
student loan interest deduction and the elimination of
the 60-month rule.
(D) The above-the-line deduction for qualified
tuition expenses of $3,000 in 2002 and 2003, and $4,000
in 2004 and 2005.
(E) The liberalization of tax-exempt financing
rules for public school construction.
SEC. 502. AFFORDABLE EDUCATION PROVISIONS MADE PERMANENT.
Title IX of the Economic Growth and Tax Relief Reconciliation Act
of 2001 (relating to sunset of provisions of such Act) shall not apply
to title IV of such Act (relating to affordable education provisions).
SEC. 503. CREDIT FOR EDUCATION, TUITION, AND TRANSPORTATION EXPENSES OF
STUDENTS ASSIGNED TO SCHOOLS IDENTIFIED FOR SCHOOL
IMPROVEMENT.
(a) Short Title.--This section may be cited as the ``Give Back to
Parents Act of 2005''.
(b) Sense of the Senate.--It is the sense of the Senate that a
refundable tax credit for up to 50 percent of the first $5,000 a parent
spends to enable a child to attend another public or private school
would help defray the cost of tuition at and transportation to a better
school, and would therefore enable parents of children assigned to
schools identified for school improvement access to better education
options.
(c) Amendment.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to refundable credits)
is amended by redesignating section 36 as section 37 and by inserting
after section 35 the following new section:
``SEC. 36. EDUCATION EXPENSES OF STUDENTS ASSIGNED TO SCHOOLS
IDENTIFIED FOR SCHOOL IMPROVEMENT.
``(a) General Rule.--In the case of an individual, there shall be
allowed as a credit against the tax imposed by this subtitle for the
taxable year 50 percent of the amount of the qualified education
expenses paid by the taxpayer during the taxable year for the education
of any individual--
``(1) with respect to whom the taxpayer is allowed a
deduction under section 151(c), and
``(2) who would have otherwise been assigned to a public
school identified for school improvement under section 1116 of
the Elementary and Secondary Education Act of 1965 but who
incurred qualified education expenses to enroll in a public or
nonpublic school not identified for school improvement under
such section for the period to which such expenses relate.
``(b) Limitation.--The amount of qualified education expenses which
may be taken into account under subsection (a) for any taxable year
with respect to any 1 individual shall not exceed $5,000.
``(c) Definitions.--For purposes of this section--
``(1) Qualified education expenses.--
``(A) In general.--The term `qualified education
expenses' means amounts paid for--
``(i) tuition and fees required for the
enrollment or attendance of a student at an
eligible educational institution,
``(ii) transportation to and from an
individual's home and an eligible educational
institution, and
``(iii) books, supplies, computer equipment
(including related software and services), and
other equipment required for courses of
instruction at an eligible educational
institution.
``(B) Meals and lodging expenses not included.--
Such term does not include any amount paid, directly or
indirectly, for meals, lodging, or similar personal,
living, or family expenses. In the event an amount paid
for tuition or fees includes an amount for meals,
lodging, or similar expenses which is not separately
stated, the portion of such amount which is
attributable to meals, lodging, or similar expenses
shall be determined under regulations prescribed by the
Secretary.
``(C) Special rule for home schooling.--In the case
of education furnished in the home (as a substitute for
public education) which meets the requirements of State
law relating to compulsory school attendance, the term
`qualified education expenses' means amounts paid for
tutoring, books, supplies, computer equipment
(including related software and services), and other
equipment directly used in furnishing such education.
``(2) Eligible educational institution.--The term `eligible
educational institution' means--
``(A) a secondary school,
``(B) an elementary school, or
``(C) any private, parochial, religious, or home
school organized for the purpose of providing
elementary or secondary education, or both.
``(3) Elementary and secondary schools.--The terms
`elementary school' and `secondary school' have the respective
meanings given such terms by section 9101 of the Elementary and
Secondary Education Act of 1965.
``(d) Adjustment for Certain Scholarships.--The amounts otherwise
taken into account under subsection (a) as qualified education expenses
of any individual during any period shall be reduced (before the
application of subsection (b)) by the sum of the amounts received with
respect to such individual for the taxable year as a qualified
scholarship which under section 117 is not includable in gross income.
``(e) Regulations.--The Secretary shall prescribe such regulations
as may be necessary to carry out the provisions of this section.''.
(d) Technical Amendments.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting before the period ``, or
from section 36 of such Code''.
(2) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of such Code is amended by striking
the last item and inserting the following new items:
``Sec. 36. Education expenses of students
assigned to schools identified
for school improvement.
``Sec. 37. Overpayments of tax.''.
<all>