[DOCID: f:hr417.110]
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110th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 110-417
======================================================================
PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 3920) TO AMEND THE TRADE
ACT OF 1974 TO REAUTHORIZE TRADE ADJUSTMENT ASSISTANCE, TO EXTEND TRADE
ADJUSTMENT ASSISTANCE TO SERVICE WORKERS AND FIRMS, AND FOR OTHER
PURPOSES
_______
October 30, 2007.--Referred to the House Calendar and ordered to be
printed
_______
Mr. Welch, from the Committee on Rules, submitted the following
R E P O R T
[To accompany H. Res. 781]
The Committee on Rules, having had under consideration
House Resolution 781, by a non-record vote, report the same to
the House with the recommendation that the resolution be
adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for consideration of H.R. 3920, the
``Trade and Globalization Assistance Act of 2007,'' under a
structured rule. The resolution provides for one hour of
debate, with 40 minutes equally divided and controlled by the
chairman and ranking minority member of the Committee on Ways
and Means and 20 minutes equally divided and controlled by the
chairman and ranking minority member of the Committee on
Education and Labor.
The resolution waives all points of order against
consideration of the bill except those arising under clause 9
or 10 of rule XXI. The resolution provides that the amendment
in the nature of a substitute recommended by the Committee on
Ways and Means, modified by the amendment printed in part A of
this report, shall be considered as adopted and the bill, as
amended, shall be considered as read. The resolution waives all
points of order against provisions in the bill, as amended.
This waiver does not affect the point of order available under
clause 9 of rule XXI (regarding earmark disclosure).
The resolution makes in order the substitute amendment
printed in part B of this report if offered by Rep. Jim McCrery
(R-LA) or his designee. The resolution provides that the
substitute amendment shall be considered as read and debatable
for one hour equally divided and controlled by the proponent
and an opponent. The resolution waives all points of order
against the substitute amendment except those arising under
clause 9 or 10 of rule XXI. The resolution provides one motion
to recommit with or without instructions. Finally, the
resolution permits the Chair, during consideration of the bill,
to postpone further consideration of it to a time designated by
the Speaker.
EXPLANATION OF WAIVERS
The waiver of all points of order against the bill's
consideration (except those arising under clause 9 or 10 of
rule XXI), includes a waiver of: clause 4(a) of rule XIII
(availability of committee report); section 302 of the
Congressional Budget Act (regarding subdivision breach); and
303 of the Congressional Budget Act (regarding outyear
spending). Although the resolution waives all points of order
against provisions in the bill, the Committee is not aware of
any points of order against the bill. The waiver of all points
of order against the bill is prophylactic in nature.
COMMITTEE VOTES
The results of each record vote on an amendment or motion
to report, together with the names of those voting for and
against, are printed below:
Rules Committee record vote No. 376
Date: October 30, 2007.
Measure: H.R. 3920.
Motion by: Mr. Hastings (WA).
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Ryan, Paul (WI), #5, which
would require that any State providing TAA assistance for
workers and any organization receiving a TAA for Firms grant
submit an annual report assessing certain indicators of
performance.
Results: Defeated 4-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Dreier--Yea; Diaz-Balart--Yea; Hastings
(WA)--Yea; Sessions--Yea; Slaughter--Nay.
Rules Committee record vote No. 377
Date: October 30, 2007.
Measure: H.R. 3920.
Motion by: Mr. Sessions.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Price, Tom (GA), #3, which
strikes Section 13 in bill, dealing with non-waiver of rights
and remedies.
Results: Defeated 4-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Dreier--Yea; Diaz-Balart--Yea; Hastings
(WA)--Yea; Sessions--Yea; Slaughter--Nay.
SUMMARY OF AMENDMENT IN PART A TO BE CONSIDERED AS ADOPTED
The amendment to H.R. 3920, the Trade and Globalization
Assistance Act of 2007, as reported, includes provisions
strengthening the TAA for Farmers program and makes clarifying
changes to the TAA for Workers program. The amendment also
reforms the Worker Adjustment and Retraining Notification Act
and extends COBRA continuation coverage for TAA-eligible and
Pension Benefit Guaranty Corporation recipients.
SUMMARY OF AMENDMENT IN PART B TO BE MADE IN ORDER
1. McCrery (LA): Amendment in the Nature of a Substitute.
Reauthorizes the Trade Adjustment Assistance (TAA) programs for
workers, firms and farmers for 5 years. Restructures the TAA to
increase training options while retaining the current two years
of income support for TAA for workers program participants who
remain unemployed and train full-time. Increases the federal
share of monthly TAA participant premiums for the Health
Coverage Tax Credit (HCTC) from 65% today to 70% and continues
HCTC. Allows States to apply for waivers of unemployment
compensation program rules. Expands the new markets tax credit
to benefit firms and workers in local communities impacted by
trade, globalization, and other causes of job loss. Extends
Workforce Investment Act (WIA) employment and training
programs, creates a consolidated funding stream, and increases
State and local flexibility. Provides for collection of
Unemployment Insurance overpayments. (60 minutes)
PART A: TEXT OF AMENDMENT TO BE CONSIDERED AS ADOPTED
Page 6, strike line 17 and all that follows through page 7,
line 2, and insert the following:
(A) in the matter preceding subparagraph
(A)--
(i) by striking ``Secretary'' and
inserting ``Secretary of Labor''; and
(ii) by striking ``or subdivision''
and inserting ``or public agency, or
subdivision of a firm or public
agency,''; and
(B) in subparagraph (A), by striking
``firm)'' and inserting ``firm, and workers in
a service sector firm or subdivision of a
service sector firm, or of a public agency or
subdivision thereof)''; and
Page 8, lines 1 and 2, strike ``that are''.
Page 13, line 9, insert a comma before ``has been''.
Page 14, strike lines 10 through 13 and insert the following:
(3) in subsection (d)--
(A) by striking ``subdivision of the firm''
and all that follows through ``he shall'' and
inserting ``subdivision of the firm, or of a
public agency or subdivision of a public
agency, that total or partial separations from
such firm (or subdivision) or public agency (or
subdivision) are no longer attributable to the
conditions specified in section 222, the
Secretary shall''; and
(B) by striking ``together with his reasons''
and inserting ``and on the Website of the
Department of Labor, together with the
Secretary's reasons''.
Page 17, strike lines 1 through 19 and insert the following:
``(b) Determination Regarding Industry-Wide Certification.--
The Secretary shall, not later than 60 days after receiving a
request or resolution described in subsection (a) with respect
to a domestic industry, or making the third certification of
workers in a domestic industry described in subsection (a), as
the case may be--
``(1) determine whether all adversely affected
workers in that domestic industry are eligible to apply
for assistance under this subchapter, in accordance
with the criteria established under subsection (e); or
``(2) determine whether all adversely affected
workers in that domestic industry in a specific
geographic region are eligible to apply for assistance
under this subchapter, in accordance with the criteria
established under subsection (e).''.
Page 18, line 3, strike ``or'' and insert ``of''.
Page 19, strike lines 9 through 16 and insert the following:
``(iii) Training before separation.--
Any worker covered by a certification
under subparagraph (A)(ii) shall be
deemed to be an adversely affected
worker for purposes of receiving
services under section 235 and training
under section 236, without regard to
whether the worker has been totally or
partially separated from employment. In
the case of a worker not totally or
partially separated from employment,
the reference in section 236(a)(1)(A)
to `suitable employment' shall be
deemed not to refer to such
employment.''.
Page 20, line 13, add after the period the following: ``In
the case of a worker described in paragraph (1)(B)(iii), no
services described in section 235 or training described in
section 236 may be initiated after such termination date.''.
Move section 114 to the beginning of subtitle F of title I,
redesignate such section as section 161, and redesignate
succeeding sections accordingly.
Page 29, line 10, strike ``foreign''.
Page 34, line 6, insert after ``section)'' the following: ``,
and the periods specified in section 231(a)(5)(A)''.
Page 34, beginning on line 9, strike ``delays in
certification due to administrative reconsideration or judicial
review,''.
Page 44, line 7, strike ``101(a)'' and insert ``102''.
Page 45, line 14, strike ``to enter'' and insert ``in order
to receive''.
Page 45, strike lines 19 through 23 and insert the following:
``(2) because of the application to any such week in
training of the provisions of State law or Federal
unemployment insurance law relating to availability for
work, active search for work, or refusal to accept
work.''.
Page 68, beginning on line 9, strike ``does not return to the
employment from which the worker was separated'' and insert
``is not employed at the firm from which the worker was
separated''.
Page 69, strike lines 4 through 6 and insert the following:
``(D) Training and other services.--A worker
described in subparagraph (B) shall be eligible
to receive training approved under section 236
and services under section 235.''.
Insert after section 141 the following:
SEC. 142. EXTENSION OF COBRA BENEFITS FOR CERTAIN TAA-ELIGIBLE
INDIVIDUALS AND PBGC RECIPIENTS.
(a) ERISA Amendments.--Section 602(2)(A) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1162(2)(A))
is amended--
(1) by moving clause (v) to after clause (iv) and
before the flush left sentence beginning with ``In the
case of a qualified beneficiary'';
(2) by striking ``In the case of a qualified
beneficiary'' and inserting the following:
``(vi) Special rule for disability.--
In the case of a qualified
beneficiary''; and
(3) by redesignating clauses (v) and (vi), as amended
by paragraphs (1) and (2), as clauses (viii) and (ix)
and by inserting after clause (iv) the following new
clauses:
``(v) Special rule for pbgc
recipients.--In the case of a
qualifying event described in section
603(2) with respect to a covered
employee who (as of such qualifying
event) has a nonforeitable right to a
benefit any portion of which is to be
paid by the Pension Benefit Guaranty
Corporation under title IV,
notwithstanding clause (i) or (ii), the
date of the death of the covered
employee, or in the case of the
surviving spouse or dependent children
of the covered employee, 36 months
after the date of the death of the
covered employee.
``(vi) Special rule for taa-eligible
individuals.--In the case of a
qualifying event described in section
603(2) with respect to a covered
employee who is (as of the date that
the period of coverage would, but for
this clause or clause (vii), otherwise
terminate under clause (i) or (ii)) a
TAA-eligible individual (as defined in
section 605(b)(4)(B)), the period of
coverage shall not terminate by reason
of clause (i) or (ii), as the case may
be, before the later of the date
specified in such clause or the date on
which such individual ceases to be such
a TAA-eligible individual.
``(vii) Special rule for certain taa-
eligible individuals.--In the case of a
qualifying event described in section
603(2) with respect to a covered
employee who is (as of the date that
the period of coverage would, but for
this clause or clause (vi), otherwise
terminate under clause (i) or (ii)) a
TAA-eligible individual (as defined in
section 605(b)(4)(B)) and who (as of
such qualifying event) has attainted
age 55 or has completed 10 or more
years of service with the employer,
clauses (i) and (ii) shall not
apply.''.
(b) IRC Amendments.--Clause (i) of section 4980B(f)(2)(B) of
the Internal Revenue Code of 1986 is amended--
(1) by striking ``In the case of a qualified
beneficiary'' and inserting the following:
``(VI) Special rule for
disability.--In the case of a
qualified beneficiary'', and
(2) by redesignating subclauses (V) and (VI), as
amended by paragraph (1), as subclauses (VIII) and (IX)
and by inserting after clause (IV) the following new
subclauses:
``(V) Special rule for pbgc
recipients.--In the case of a
qualifying event described in
paragraph (3)(B) with respect
to a covered employee who (as
of such qualifying event) has a
nonforeitable right to a
benefit any portion of which is
to be paid by the Pension
Benefit Guaranty Corporation
under title IV of the Employee
Retirement Income Security Act
of 1974, notwithstanding
subclause (I) or (II), the date
of the death of the covered
employee, or in the case of the
surviving spouse or dependent
children of the covered
employee, 36 months after the
date of the death of the
covered employee.
``(VI) Special rule for taa-
eligible individuals.--In the
case of a qualifying event
described in paragraph (3)(B)
with respect to a covered
employee who is (as of the date
that the period of coverage
would, but for this subclause
or subclause (VII), otherwise
terminate under subclause (I)
or (II)) a TAA-eligible
individual (as defined in
paragraph (5)(C)(iv)(II)), the
period of coverage shall not
terminate by reason of
subclause (I) or (II), as the
case may be, before the later
of the date specified in such
subclause or the date on which
such individual ceases to be
such a TAA-eligible individual.
``(VII) Special rule for
certain taa-eligible
individuals.--In the case of a
qualifying event described in
paragraph (3)(B) with respect
to a covered employee who is
(as of the date that the period
of coverage would, but for this
subclause or subclause (VI),
otherwise terminate under
subclause (I) or (II)) a TAA-
eligible individual (as defined
in paragraph (5)(C)(iv)(II))
and who (as of such qualifying
event) has attainted age 55 or
has completed 10 or more years
of service with the employer,
subclauses (I) and (II) shall
not apply.''.
(c) PHSA Amendments.--Section 2202(2)(A) of the Public Health
Service Act (42 U.S.C. 300bb-2(2)(A)) is amended--
(1) by striking ``In the case of a qualified
beneficiary'' and inserting the following:
``(v) Special rule for disability.--
In the case of a qualified
beneficiary''; and
(2) by redesignating clauses (iv) and (v), as amended
by paragraph (1), as clauses (vi) and (vii) and by
inserting after clause (iii) the following new clauses:
``(iv) Special rule for taa-eligible
individuals.--In the case of a
qualifying event described in section
2203(2) with respect to a covered
employee who is (as of the date that
the period of coverage would, but for
this clause or clause (v), otherwise
terminate under clause (i) or (ii)) a
TAA-eligible individual (as defined in
section 2205(b)(4)(B)), the period of
coverage shall not terminate by reason
of clause (i) or (ii), as the case may
be, before the later of the date
specified in such clause or the date on
which such individual ceases to be such
a TAA-eligible individual.
``(v) Special rule for certain taa-
eligible individuals.--In the case of a
qualifying event described in section
2203(2) with respect to a covered
employee who is (as of the date that
the period of coverage would, but for
this clause or clause (iv), otherwise
terminate under clause (i) or (ii)) a
TAA-eligible individual (as defined in
section 2205(b)(4)(B)) and who (as of
such qualifying event) has attainted
age 55 or has completed 10 or more
years of service with the employer,
clauses (i) and (ii) shall not
apply.''.
(d) Effective Date.--The amendments made by this section
shall apply to periods of coverage which would (without regard
to the amendments made by this section) end on or after January
1, 2008.
Insert after title II the following and redesignate
accordingly:
TITLE III--TRADE ADJUSTMENT ASSISTANCE FOR FARMERS
SEC. 301. ELIGIBILITY OF CERTAIN OTHER PRODUCERS.
Section 292 of the Trade Act of 1974 (19 U.S.C. 2401a) is
amended--
(1) in subsection (a), by inserting ``and on the
Website of the Department of Agriculture'' after
``Federal Register''; and
(2) by adding at the end the following:
``(f) Eligibility of Certain Other Producers.--An
agricultural commodity producer or group of producers that
resides outside of the State or region identified in a petition
filed under subsection (a) may file a request to become a party
to that petition not later than 30 days after the date notice
is published in the Federal Register and on the Website of the
Department of Agriculture with respect to that petition.''.
Page 76, after line 18, insert the following (and redesignate
subsequent subsections accordingly):
``(c) Collection of Data From States.--The Secretary is
authorized to collect such data from the States as is necessary
to carry out this section.''.
Add at the end the following:
TITLE VI--WORKER ADJUSTMENT AND RETRAINING NOTIFICATION
SEC. 601. SHORT TITLE.
This title may be cited as the ``Early Warning and Health
Care for Workers Affected by Globalization Act''.
SEC. 602. AMENDMENTS TO THE WARN ACT.
(a) Definitions.--
(1) Employer, plant closing, and mass layoff.--
Paragraphs (1) through (3) of section 2(a) of the
Worker Adjustment and Retraining Notification Act (29
U.S.C. 2101(a)(1)-(3)) are amended to read as follows:
``(1) the term `employer' means any business
enterprise that employs 100 or more employees;
``(2) the term `plant closing' means the permanent or
temporary shutdown of a single site of employment, or
of one or more facilities or operating units within a
single site of employment, which results in an
employment loss at such site, during any 30-day period,
for 50 or more employees;
``(3) the term `mass layoff' means a reduction in
force at a single site of employment which results in
an employment loss at such site, during any 30-day
period, for 50 or more employees.''.
(2) Secretary of labor.--
(A) Definition.--Paragraph (8) of such
section is amended to read as follows:
``(8) the term `Secretary' means the Secretary of
Labor or a representative of the Secretary of Labor.''.
(B) Regulations.--Section 8(a) of such Act
(29 U.S.C. 2107(a)) is amended by striking ``of
Labor''.
(3) Conforming amendments.--
(A) Notice.--Section 3(d) of such Act (29
U.S.C. 2102(d)) is amended by striking out ``,
each of which is less than the minimum number
of employees specified in section 2(a)(2) or
(3) but which in the aggregate exceed that
minimum number,'' and inserting ``which in the
aggregate exceed the minimum number of
employees specified in section 2(a)(2) or
(3)''.
(B) Definitions.--Section 2(b)(1) of such Act
(29 U.S.C. 2101(b)(1)) is amended by striking
``(other than a part-time employee)''.
(b) Notice.--
(1) Notice period.--
(A) In general.--Section 3 of the Worker
Adjustment and Retraining Notification Act (29
U.S.C. 2102) is amended by striking ``60-day
period'' and inserting ``90-day period'' each
place it appears.
(B) Conforming amendment.--Section 5(a)(1) of
such Act (29 U.S.C. 2104(a)(1)) is amended in
the matter following subparagraph (B), by
striking ``60 days'' and inserting ``90 days''.
(2) Recipients.--Section 3(a) of such Act (29 U.S.C.
2102(a)) is amended--
(A) in paragraph (1), by striking ``or, if
there is no such representative at that time,
to each affected employee; and'' and inserting
``and to each affected employee;''; and
(B) by redesignating paragraph (2) as
paragraph (3) and inserting after paragraph (1)
the following:
``(2) to the Secretary; and''.
(3) Information regarding benefits and services
available to workers and dol notice to congress.--
Section 3 of such Act (29 U.S.C. 2102) is further
amended by adding at the end the following:
``(e) Information Regarding Benefits and Services Available
to Employees.--Concurrent with or immediately after providing
the notice required under subsection (a)(1), an employer shall
provide affected employees with information regarding the
benefits and services available to such employees, as described
in the guide compiled by the Secretary under section 12.
``(f) DOL Notice to Congress.--As soon as practicable and not
later than 15 days after receiving notification under
subsection (a)(2), the Secretary of Labor shall notify the
appropriate Senators and Members of the House of
Representatives who represent the area or areas where the plant
closing or mass layoff is to occur.''.
(c) Enforcement.--
(1) Amount.--Section 5(a)(1) of the Worker Adjustment
and Retraining Notification Act (29 U.S.C. 2104(a)(1))
is amended--
(A) in subparagraph (A)--
(i) by striking ``back pay for each
day of violation'' and inserting ``two
days' pay multiplied by the number of
calendar days short of 90 that the
employer provided notice before such
closing or layoff''
(ii) in clause (ii), by striking
``and'' at the end thereof;
(B) by redesignating subparagraph (B) as
subparagraph (C);
(C) by inserting after subparagraph (A) the
following:
``(B) interest on the amount described in
subparagraph (A) calculated at the prevailing rate;
and''; and
(D) by striking the matter following
subparagraph (C) (as so redesignated).
(2) Exemption.--Section 5(a)(4) of such Act (29
U.S.C. 2104(a)(4)) is amended by striking ``reduce the
amount of the liability or penalty provided for in this
section'' and inserting ``reduce the amount of the
liability under subparagraph (C) of paragraph (1) and
reduce the amount of the penalty provided for in
paragraph (3)''.
(3) Administrative complaint.--Section 5(a)(5) of
such Act (29 U.S.C. 2104(a)(5)) is amended--
(A) by striking ``may sue'' and inserting
``may,'';
(B) by inserting after ``both,'' the
following: ``(A) file a complaint with the
Secretary alleging a violation of section 3, or
(B) bring suit''; and
(C) by adding at the end thereof the
following new sentence: ``A person seeking to
enforce such liability may use one or both of
the enforcement mechanisms described in
subparagraphs (A) and (B).''.
(4) Action by the secretary.--Section 5 of such Act
(29 U.S.C. 2104) is amended--
(A) by redesignating subsection (b) as
subsection (d); and
(B) by inserting after subsection (a) the
following new subsections:
``(b) Action by the Secretary.--
``(1) Administrative action.--The Secretary shall
receive, investigate, and attempt to resolve complaints
of violations of section 3 by an employer in the same
manner that the Secretary receives, investigates, and
attempts to resolve complaints of violations of
sections 6 and 7 of the Fair Labor Standards Act of
1938 (29 U.S.C. 206 and 207).
``(2) Subpoena powers.--For the purposes of any
investigation provided for in this section, the
Secretary shall have the subpoena authority provided
for under section 9 of the Fair Labor Standards Act of
1938 (29 U.S.C. 209).
``(3) Sums recovered.--Any sums recovered by the
Secretary on behalf of an employee under subparagraphs
(A), (B), and (D) of section 5(a)(1) shall be held in a
special deposit account and shall be paid, on order of
the Secretary, directly to each employee affected. Any
such sums not paid to an employee because of inability
to do so within a period of 3 years, and any sums
recovered by the Secretary under subparagraph (C) of
section 5(a)(1), shall be credited as an offsetting
collection to the appropriations account of the
Secretary of Labor for expenses for the administration
of this Act and shall remain available to the Secretary
until expended.
``(c) Limitations.--
``(1) Limitations period.--An action may be brought
under this section not later than 2 years after the
date of the last event constituting the alleged
violation for which the action is brought.
``(2) Commencement.--In determining when an action is
commenced under this section for the purposes of
paragraph (1), it shall be considered to be commenced
on the date on which the complaint is filed.''.
(d) Posting of Notices; Penalties.--Section 11 of the Worker
Adjustment and Retraining Notification Act (29 U.S.C. 2101
note) is amended to read as follows:
``SEC. 11. POSTING OF NOTICES; PENALTIES.
``(a) Posting of Notices.--Each employer shall post and keep
posted in conspicuous places upon its premises where notices to
employees are customarily posted a notice to be prepared or
approved by the Secretary setting forth excerpts from, or
summaries of, the pertinent provisions of this chapter and
information pertinent to the filing of a complaint.
``(b) Penalties.--A willful violation of this section shall
be punishable by a fine of not more than $500 for each separate
offense.''.
(e) Non-Waiver of Rights and Remedies; Information Regarding
Benefits and Services Available to Employees.--Such Act is
further amended by adding at the end the following:
``SEC. 12. RIGHTS AND REMEDIES NOT SUBJECT TO WAIVER.
``(a) In General.--The rights and remedies provided under
this Act (including the right to maintain a civil action) may
not be waived, deferred, or lost pursuant to any agreement or
settlement other than an agreement or settlement described in
subsection (b).
``(b) Agreement or Settlement.--An agreement or settlement
referred to in subsection (a) is an agreement or settlement
negotiated by the Secretary, an attorney general of any State,
or a private attorney on behalf of affected employees.
``SEC. 13. INFORMATION REGARDING BENEFITS AND SERVICES AVAILABLE TO
WORKERS.
``The Secretary of Labor shall maintain a guide of benefits
and services which may be available to affected employees,
including unemployment compensation, trade adjustment
assistance, COBRA benefits, and early access to training and
other services, including counseling services, available under
the Workforce Investment Act of 1998. Such guide shall be
available on the Internet website of the Department of Labor
and shall include a description of the benefits and services,
the eligibility requirements, and the means of obtaining such
benefits and services. Upon receiving notice from an employer
under section 3(a)(2), the Secretary shall immediately transmit
such guide to such employer.''.
(f) Notice Excused Where Caused by Terrorist Attack.--Section
3(b)(2) of the Worker Adjustment and Retraining Notification
Act (29 U.S.C. 2102(b)(2)) is amended by adding at the end the
following new subparagraph:
``(C) No notice under this Act shall be required if the plant
closing or mass layoff is due directly or indirectly to a
terrorist attack on the United States.''.
SEC. 603. EFFECTIVE DATE.
Except as otherwise provided in this Act, the provisions of
this Act, and the amendments made by this Act, shall take
effect on the date of the enactment of this Act.
PART B: TEXT OF AMENDMENT TO BE MADE IN ORDER
1. An Amendment To Be Offered by Representative McCrery of Louisiana,
or His Designee, Debatable for 60 minutes
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Helping
American Workers Adjust to Globalization and Win Act''.
(b) Table of Contents.--The table of contents for this Act is
as follows:
Sec. 1. Short title; table of contents.
TITLE I--TRADE ADJUSTMENT ASSISTANCE FOR
WORKERS
Subtitle A--Petitions and Determinations
Sec. 101. Petitions.
Sec. 102. Group eligibility requirements.
Sec. 103. Determinations by Secretary of Labor.
Sec. 104. Benefit information to workers.
Sec. 105. Administrative reconsideration of determinations by
Secretary of Labor.
Subtitle B--Program Benefits
Chapter 1--Trade Readjustment Allowances
Sec. 111. Qualifying requirements for workers.
Sec. 112. Weekly amounts.
Sec. 113. Limitations on trade readjustment allowances.
Chapter 2--Training, Other Reemployment Services,
and Allowances
Sec. 121. Reemployment services.
Sec. 122. Training.
Sec. 123. Job search allowances.
Sec. 124. Relocation allowances.
Subtitle C--General Provisions
Sec. 131. Agreements with States.
Sec. 132. Authorization of appropriations; incentive payments to
States.
Sec. 133. Phase-out of demonstration project for alternative trade
adjustment assistance for older workers.
Sec. 134. Wage supplement program.
Sec. 135. Definitions.
Sec. 136. Capacity-building grants to enhance training for workers.
Subtitle D--Effective Date
Sec. 141. Effective date.
TITLE II--OTHER TRADE ADJUSTMENT ASSISTANCE
PROGRAMS AND RELATED PROVISIONS
Sec. 201. Technical assistance for firms.
Sec. 202. Extension of trade adjustment assistance for firms.
Sec. 203. Extension of trade adjustment assistance for farmers.
Sec. 204. Judicial review.
Sec. 205. Termination.
TITLE III--MISCELLANEOUS PROVISIONS
Sec. 301. Credit reduction for failures relating to co-enrollment of
participants and program performance reports.
Sec. 302. TAA wage supplement participants eligibility for credit for
health insurance costs.
Sec. 303. Special allocation under new markets tax credit in
connection with trade adjustment assistance.
Sec. 304. Expedited reemployment demonstration projects.
Sec. 305. Increase in percentage of TAA and PBGC health insurance
tax credit.
Sec. 306. Collection of unemployment compensation debts.
Sec. 307. Offsets.
TITLE IV--WORKFORCE INVESTMENT IMPROVEMENT
Sec. 401. Short title.
Sec. 402. References.
Subtitle A--Amendments to Title I of the Workforce Investment
Act of 1998
Sec. 411. Definitions.
Sec. 412. Purpose.
Sec. 413. State workforce investment boards.
Sec. 414. State plan.
Sec. 415. Local workforce investment areas.
Sec. 416. Local workforce investment boards.
Sec. 417. Local plan.
Sec. 418. Establishment of one-stop delivery systems.
Sec. 419. Eligible providers of training services.
Sec. 420. Eligible providers of youth activities.
Sec. 421. Youth activities.
Sec. 422. Comprehensive programs for adults.
Sec. 423. Performance accountability system.
Sec. 424. Authorization of appropriations.
Sec. 425. Job Corps.
Sec. 426. Native American programs.
Sec. 427. Migrant and seasonal farmworker programs.
Sec. 428. Veterans' workforce investment programs.
Sec. 429. Youth challenge grants.
Sec. 430. Technical assistance.
Sec. 431. Demonstration, pilot, multiservice, research and
multi-State projects.
Sec. 432. Community-based job training.
Sec. 433. Evaluations.
Sec. 434. National dislocated worker grants.
Sec. 435. Authorization of appropriations for national activities.
Sec. 436. Requirements and restrictions.
Sec. 437. Nondiscrimination.
Sec. 438. Administrative provisions.
Sec. 439. State legislative authority.
Sec. 440. Workforce innovation in regional economic development.
Sec. 441. General program requirements.
Subtitle B--Adult Education, Basic Skills, and Family Literacy
Education
Sec. 451. Table of contents.
Sec. 452. Amendment.
Subtitle C--Amendments to the Wagner-Peyser Act
Sec. 461. Amendments to the Wagner-Peyser Act.
Subtitle D--Amendments to the Rehabilitation Act of 1973
Sec. 471. Findings.
Sec. 472. Rehabilitation Services Administration.
Sec. 473. Director.
Sec. 474. Definitions.
Sec. 475. State plan.
Sec. 476. Scope of services.
Sec. 477. Standards and indicators.
Sec. 478. Reservation for expanded transition services.
Sec. 479. Client assistance program.
Sec. 480. Protection and advocacy of individual rights.
Sec. 481. Chairperson.
Sec. 482. Authorizations of appropriations.
Sec. 483. Conforming amendment.
Sec. 484. Helen Keller National Center Act.
Subtitle E--Transition and Effective Date
Sec. 491. Transition provisions.
Sec. 492. Effective date.
TITLE I--TRADE ADJUSTMENT ASSISTANCE FOR WORKERS
Subtitle A--Petitions and Determinations
SEC. 101. PETITIONS.
Section 221(a) of the Trade Act of 1974 (19 U.S.C. 2271(a))
is amended--
(1) in paragraph (1), by striking ``simultaneously
with the Secretary and with the Governor of the State
in which such workers' firm or subdivision is located''
and inserting ``with the Secretary'';
(2) by redesignating paragraphs (2) and (3) as
paragraphs (3) and (4), respectively;
(3) by inserting after paragraph (1) the following
new paragraph:
``(2) Upon receipt of a petition filed under paragraph (1),
the Secretary shall promptly notify the Governor of the State
in which such workers' firm or subdivision is located of the
filing of the petition and its contents.'';
(4) in paragraph (3) (as redesignated by paragraph
(2) of this section), by striking ``a petition filed
under paragraph (1)'' and inserting ``a notice under
paragraph (2)''; and
(5) in paragraph (4) (as redesignated by paragraph
(2) of this section)--
(A) by striking ``the petition'' and
inserting ``a petition filed under paragraph
(1)''; and
(B) by inserting ``and on the Website of the
Department of Labor'' after ``in the Federal
Register''.
SEC. 102. GROUP ELIGIBILITY REQUIREMENTS.
(a) In General.--Subsection (a)(2)(B)(i) of section 222 of
the Trade Act of 1974 (19 U.S.C. 2272) is amended by inserting
at the end before the semicolon the following: ``that
contributed importantly to such workers' separation or threat
of separation''.
(b) Adversely Affected Secondary Workers.--Subsection (b) of
such section is amended--
(1) in paragraph (2), by striking ``and'' at the end;
(2) by redesignating paragraph (3) as paragraph (4);
(3) by inserting after paragraph (2) the following
new paragraph:
``(3) the sales or production, or both, of such firm
or subdivision have decreased absolutely; and''; and
(4) in subparagraph (A) of paragraph (4) (as
redesignated by paragraph (2) of this subsection), by
inserting at the end before the semicolon the
following: ``and contributed importantly to the
workers' separation or threat of separation determined
under paragraph (1)''.
(c) Definitions.--Subsection (c) of such section is amended--
(1) in paragraph (3), by striking ``, if the
certification of eligibility under subsection (a) is
based on an increase in imports from, or a shift in
production to, Canada or Mexico''; and
(2) by adding at the end the following new
paragraphs:
``(5) The term `article' means--
``(A) a tangible product subject to duty
under the Harmonized Tariff Schedule of the
United States which is not incidental to the
provision of a service; or
``(B) an intangible product, such as a
digital product (including computer programs,
text, video, image and sound recordings, and
similar products), that would be subject to
duty under the Harmonized Tariff Schedule of
the United States if the intangible product
were embodied in a physical medium and which is
not incidental to the provision of a service.
``(6) The term `worker' means--
``(A) with respect to a firm described in
subsection (a)--
``(i) an individual directly employed
by the firm that produces an article
that is the basis for a determination
under subsection (a) and who performs
tasks relating to the production of the
article; or
``(ii) an individual who is under the
operational control of the firm that
produces an article that is the basis
for a determination under subsection
(a) pursuant to a contract or leasing
arrangement and who performs tasks
relating to the production of the
article;
``(B) with respect to a firm that is a
supplier described in subsection (b)--
``(i) an individual directly employed
by the firm that is a supplier and who
performs tasks relating to the
production of component parts for an
article that is the basis for a
determination under subsection (a); or
``(ii) an individual who is under the
operational control of the firm that is
a supplier pursuant to a contract or
leasing arrangement and who performs
tasks relating to the production of
component parts for an article that is
the basis for a determination under
subsection (a); and
``(C) with respect to a firm that is a
downstream producer described in subsection
(b)--
``(i) an individual directly employed
by the firm that is a downstream
producer and who perform tasks relating
to the provision of additional, value-
added production processes for an
article that is the basis for a
determination under subsection (a); or
``(ii) an individual who is under the
operational control of the firm that is
a downstream producer pursuant to a
contract or leasing arrangement and who
performs tasks relating to the
provision of additional, value-added
production processes for an article
that is the basis for a determination
under subsection (a).''.
SEC. 103. DETERMINATIONS BY SECRETARY OF LABOR.
(a) Workers Covered by Certification.--Subsection (b) of
section 223 of the Trade Act of 1974 (19 U.S.C. 2273) is
amended--
(1) in the matter preceding paragraph (1), by
striking ``under this section'' and inserting ``under
subsection (a) or (d) of this section''; and
(2) in paragraph (2), to read as follows:
``(2) after the earliest of--
``(A) the date that is two years after the
date on which certification is granted under
subsection (a);
``(B) the date that is two years after the
date of the earliest determination, if any,
denying certification under subsection (a); or
``(C) the termination date, if any,
determined under subsection (e).''.
(b) Publication of Determination.--Subsection (c) of such
section is amended--
(1) by striking ``his determination'' and inserting
``a determination'';
(2) by inserting ``and on the Website of the
Department of Labor'' after ``in the Federal
Register''; and
(3) by striking ``his reasons'' and inserting ``the
Secretary's reasons''.
(c) Amendment to Certification.--Such section is further
amended--
(1) by redesignating subsection (d) as subsection
(e); and
(2) by inserting after subsection (c) the following
new subsection:
``(d) Whenever the Secretary determines, with respect to any
certification of eligibility of the workers of a firm or
subdivision of the firm, and subject to such regulations as the
Secretary may prescribe, that good cause exists to amend such
certification, the Secretary shall amend such certification and
promptly publish notice of such amendment in the Federal
Register and on the Website of the Department of Labor together
with the reasons for making such determination.''.
(d) Termination of Certification.--Subsection (e) of such
section (as redesignated by subsection (c)(1) of this section)
is amended--
(1) by striking ``he shall'' and inserting ``the
Secretary shall'';
(2) by inserting ``and on the Website of the
Department of Labor'' after ``in the Federal
Register''; and
(3) by striking ``his reasons'' and inserting ``the
Secretary's reasons''.
SEC. 104. BENEFIT INFORMATION TO WORKERS.
Section 225(a) of the Trade Act of 1974 (19 U.S.C. 2275(a))
is amended in the fourth sentence by striking ``the State Board
for Vocational Education or equivalent agency and other public
or private agencies, institutions, and employers, as
appropriate,'' and inserting ``the appropriate State workforce
investment board (established under section 111 of the
Workforce Investment Act of 1998 (29 U.S.C. 2821)) and State
workforce agency responsible for the administration of the
State workforce investment program funded under title I of the
Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.)''.
SEC. 105. ADMINISTRATIVE RECONSIDERATION OF DETERMINATIONS BY SECRETARY
OF LABOR.
(a) In General.--Subchapter A of chapter 2 of title II of the
Trade Act of 1974 (19 U.S.C. 2271 et seq.) is amended by adding
at the end the following new section:
``SEC. 226. ADMINISTRATIVE RECONSIDERATION OF DETERMINATIONS BY
SECRETARY OF LABOR.
``(a) Administrative Reconsideration.--
``(1) In general.--A worker, group of workers,
certified or recognized union or other duly authorized
representative of such worker or group of workers, or
any of the individuals or entities described in section
221(a)(1)(C), aggrieved (or on behalf of such workers
aggrieved) by a determination of the Secretary of Labor
under section 223 denying a certification of
eligibility, may file a request for administrative
reconsideration with the Secretary not later than 60
days after the date on which notice of the
determination is published under section 223.
``(2) Failure to make timely request.-- The failure
to file a request for administrative reconsideration of
a determination denying a certification of eligibility
under section 223 within the 60-day period described in
paragraph (1) shall be deemed to be a failure to
exhaust administrative remedies and such determination
shall not be subject to judicial review under section
284.
``(b) Notice, Review, and Final Determination.--
``(1) Notice.--If a request for administrative
reconsideration of a determination of the Secretary is
filed in accordance with the provisions of subsection
(a), the Secretary shall promptly publish notice
thereof in the Federal Register and on the Website of
the Department of Labor.
``(2) Review of determination.--The Secretary shall
initiate a review of the determination of the Secretary
upon filing of the request for administrative
reconsideration under subsection (a) and shall include
an opportunity for interested persons to submit
additional information.
``(3) Final determination.--The Secretary shall issue
a final determination on the request for administrative
reconsideration not later than 60 days after the date
on which the Secretary publishes notice of the request
for reconsideration pursuant to paragraph (1). Upon
reaching a determination on a reconsideration, the
Secretary shall promptly publish a summary of the
determination in the Federal Register and on the
Website of the Department of Labor, together with the
reasons for making such determination. The requirements
relating to judicial review under section 284 shall
apply to any determination made by the Secretary under
this subsection.''.
(b) Clerical Amendment.--The table of contents in section 1
of the Trade Act of 1974 is amended by inserting after the item
relating to section 225 the following:
``Sec. 226. Administrative reconsideration of determinations by
Secretary of Labor.''.
Subtitle B--Program Benefits
CHAPTER 1--TRADE READJUSTMENT ALLOWANCES
SEC. 111. QUALIFYING REQUIREMENTS FOR WORKERS.
(a) Basic Trade Readjustment Allowance.--Subsection (a) of
section 231 of the Trade Act of 1974 (19 U.S.C. 2291) is
amended--
(1) in the matter preceding paragraph (1), by
striking ``60 days'' and inserting ``40 days'';
(2) in paragraph (1), by striking ``occurred--'' and
all that follows and inserting ``occurred during the
period described in section 223(b).''; and
(3) by striking paragraphs (4) and (5).
(b) Payment of Additional Trade Readjustment Allowance.--Such
section is further amended--
(1) by redesignating subsections (b) and (c) as
subsections (c) and (d), respectively; and
(2) by inserting after subsection (a) the following
new subsection:
``(b) In addition to the payment of a trade readjustment
allowance under subsection (a), payment of an additional trade
readjustment allowance shall be made to an adversely affected
worker who is covered by a certification under subchapter A and
who--
``(1) files an application for such allowance for any
week of unemployment which begins after the worker has
received the maximum amount of trade readjustment
allowances payable under subsection (a);
``(2) meets the conditions described in paragraphs
(1) through (3) of subsection (a); and
``(3) is either--
``(A) totally unemployed and is enrolled in a
full-time training program approved by the
Secretary under section 236(a); or
``(B) partially unemployed and is enrolled in
a full-time or part-time training program
approved by the Secretary under section
236(a).''.
(c) Withholding of Trade Readjustment Allowance Pending
Beginning or Resumption of Participation in Training Program;
Period of Applicability.--Subsection (c) of such section (as
redesignated by subsection (b)(1) of this section) is amended
to read as follows:
``(c) If the Secretary determines that--
``(1) the adversely affected worker--
``(A) has failed to begin participation in
the training program the enrollment in which
meets the requirement of subsection (b)(3), or
``(B) has ceased to participate in such
training program before completing such
training program, and
``(2) there is no justifiable cause for such failure
or cessation,
no trade readjustment allowance may be paid to the adversely
affected worker under this part for the week in which such
failure, cessation, or revocation occurred, or any succeeding
week, until the adversely affected worker begins or resumes
participation in a training program approved under section
236(a).''.
(d) Waivers of Training Requirements.--Subsection (d) of such
section (as redesignated by subsection (b)(1) of this section)
is hereby repealed.
SEC. 112. WEEKLY AMOUNTS.
(a) In General.--Subsection (a) of section 232 of the Trade
Act of 1974 (19 U.S.C. 2292) is amended--
(1) by striking ``(a)'' and inserting ``(a)(1)'';
(2) by inserting ``paragraph (2) and'' after
``Subject to'';
(3) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively; and
(4) by adding at the end the following new paragraph:
``(2)(A) Notwithstanding section 231(a)(3)(B), if an
adversely affected worker who is participating in training
qualifies for unemployment insurance under State law, based in
whole or in part upon part-time or short-term employment
following approval of the worker's initial trade readjustment
allowance application under section 231(a), then for any week
for which unemployment insurance is payable and for which the
worker would otherwise be entitled to a trade readjustment
allowance based upon the certification under section 223, the
worker shall be paid a trade readjustment allowance in the
amount described in subparagraph (B).
``(B) The trade readjustment allowance payable under
subparagraph (A) shall be equal to the weekly benefit amount of
the unemployment insurance upon which the worker's trade
readjustment allowance was initially determined under paragraph
(1), reduced by--
``(i) the amount of the unemployment insurance
benefit payable to such worker for that week of
unemployment for which a trade readjustment allowance
is payable under subparagraph (A) of this paragraph;
and
``(ii) the amounts described in subparagraphs (A) and
(B) of paragraph (1).''.
(b) Adversely Affected Workers Who Are Undergoing Training.--
Subsection (b) of such section is amended--
(1) by inserting ``under section 231(b)'' after ``who
is entitled to trade readjustment allowances''; and
(2) by striking ``he is undergoing any such'' and
inserting ``such worker is undergoing''.
SEC. 113. LIMITATIONS ON TRADE READJUSTMENT ALLOWANCES.
Section 233 of the Trade Act of 1974 (19 U.S.C. 2293) is
amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``The maximum
amount'' and inserting ``Except as
provided in paragraph (3), the maximum
amount''; and
(ii) by striking ``52'' and inserting
``39''; and
(B) in paragraph (3), by striking ``52'' each
place it appears and inserting ``65'';
(2) by striking subsection (b);
(3) by redesignating subsections (c) through (g) as
subsections (b) through (f), respectively; and
(4) in subsection (f) (as redesignated by paragraph
(3) of this section), by striking ``section
236(a)(5)(D)'' and inserting ``section 236''.
CHAPTER 2--TRAINING, OTHER REEMPLOYMENT SERVICES, AND ALLOWANCES
SEC. 121. REEMPLOYMENT SERVICES.
(a) In General.--Section 235 of the Trade Act of 1974 (19
U.S.C. 2295) is amended--
(1) in the heading, by striking ``EMPLOYMENT'' and
inserting ``REEMPLOYMENT'';
(2) by striking ``The Secretary'' the first place it
appears and inserting ``(a) The Secretary'';
(3) by striking ``counseling, testing, and placement
services, and supportive and other services'' and
inserting ``career counseling, testing and assessments,
and job placement services, and supportive and other
services''; and
(4) by adding at the end the following new
subsection:
``(b) In order to facilitate the provision of services
described in subsection (a), the Secretary shall ensure the
effective implementation of the requirements of section 239(e)
relating to the co-enrollment of adversely affected workers in
the dislocated worker program authorized under chapter 5 of
subtitle B of title I of the Workforce Investment Act of 1998
(29 U.S.C. 2861 et seq.).''.
(b) Clerical Amendment.--The table of contents in section 1
of the Trade Act of 1974 is amended by striking the heading
relating to part II of subchapter B of chapter 2 of title II of
the Trade Act of 1974 and the item relating to section 235 of
such Act and inserting the following:
``Part II--Training, Other Reemployment Services, and Allowances
``Sec. 235. Reemployment services.''.
SEC. 122. TRAINING.
(a) In General.--Section 236 of the Trade Act of 1974 (19
U.S.C. 2296) is amended to read as follows:
``SEC. 236. TRAINING.
``(a) Approval of Training.--
``(1) In general.--If the Secretary determines that
an adversely affected worker, including an adversely
affected worker who has obtained reemployment
subsequent to separation from the adversely affected
employment, or an adversely affected incumbent worker,
meets the criteria described in paragraph (2), and
otherwise meets the requirements described under this
section, the Secretary shall approve the training
program requested by the worker. Upon such approval,
the worker shall be entitled to have payment of the
costs of such training (subject to the limitations
imposed by this section) paid on the worker's behalf by
the Secretary directly or through a voucher system. The
costs of such training shall include the costs of
tuition, books, required tools, and fees related to
education, licensing, or certification.
``(2) Criteria for approval of training program.--For
purposes of paragraph (1), training for an adversely
affected worker or an adversely affected incumbent
worker, shall be approved if the Secretary determines
that--
``(A) the worker needs additional marketable
skills to obtain or retain employment
comparable to the worker's adversely affected
employment;
``(B) there is a reasonable expectation of
such employment following the completion of the
training; and
``(C) the worker is qualified to undertake
and complete the training sought.
``(3) Enrollment deadline.--
``(A) In general.--In order to receive
assistance under this section, a worker shall
enroll in a training program approved under
paragraph (1) not later than the later of--
``(i) the last day of the 39th week
after the worker's most recent
separation from adversely affected
employment which meets the requirements
of paragraphs (1) and (2) of section
231(a); or
``(ii) the last day of the 13th week
after the week in which the Secretary
issues a certification under subchapter
A covering such worker.
``(B) Extension for justifiable cause.--The
Secretary may grant an extension of the
enrollment period described in subparagraph (A)
for a worker if the Secretary determines that
there is justifiable cause for such an
extension.
``(b) Funding for Training.--
``(1) Annual limit on aggregate payments under
program.--
``(A) In general.--The total amount of
payments that may be made under subsection
(a)(1) for any fiscal year shall not exceed
$220,000,000.
``(B) Apportionment among states.--The
Secretary shall establish a method for
apportioning among States the funds that are
available for training under this chapter in
any fiscal year. Such method may include the
use of formula allotments and reallotments, and
the establishment of a reserve that is used to
assist in apportioning funds to those States in
need of additional funding during the fiscal
year.
``(2) Limitations applicable to workers.--
``(A) Duration.--Subject to subparagraph (C),
the costs of a training program approved under
subsection (a)(1) for an adversely affected
worker or an adversely affected incumbent
worker shall be paid under this section for a
period not to exceed four years from the date
the worker first enrolled in the training
program. A worker may participate in such
training program during such period on a full-
time or part-time basis. During the period of
participation the worker shall make adequate
yearly progress, as determined by the
Secretary, toward the attainment of a license,
certificate, or degree pursuant to such
training program in order to remain eligible
for assistance under this section.
``(B) Amount.--Subject to subparagraph (C),
the payments for a training program under
subsection (a)(1) for a worker may not exceed
$4,000 for any one-year period, or a total of
$8,000 over the maximum four-year period
described in subparagraph (A).
``(C) Exceptions.--
``(i) Literacy training and
prerequisites.--If the Secretary
determines that an adversely affected
worker or an adversely affected
incumbent worker needs literacy
training, English as a second language
instruction, remedial education,
educational assistance to obtain a high
school diploma or General Equivalency
Degree, or prerequisites in order to
participate in a training program for
occupations in demand, the Secretary
shall approve the provision of such
activities and provide up to $1,000 in
payments for such activities. Such
payments shall not be included for
purposes of applying the limits on
payments described in subparagraph (B).
``(ii) On-the-job training.--The
provisions of subparagraphs (A) and (B)
shall not be applicable to on-the-job
training programs, except as provided
in subsection (f)(2).
``(3) Duplicative payments prohibited.--No payment
may be made under subsection (a)(1) of the costs of
training an adversely affected worker or an adversely
affected incumbent worker if such costs are payable or
have already been paid under any other provision of
Federal law.
``(4) Report.--
``(A) In general.--Not later than May 31 and
November 30 of each year, the Secretary shall
submit to the Committee on Finance of the
Senate and the Committee on Ways and Means of
the House of Representatives a report on--
``(i) the initial allocation among
States of funds for training approved
under this section;
``(ii) any additional distributions
of funds for training approved under
this section during the two most recent
fiscal quarters and cumulatively during
the fiscal year;
``(iii) the amount of funds obligated
and expended by the States to provide
training approved under this section
during the two most recent fiscal
quarters and cumulatively during the
fiscal year; and
``(iv) the efforts of the Department
of Labor to ensure that each State
receives an appropriate level of funds
during the fiscal year to provide
training approved under this section to
all eligible workers.
``(B) Definition.--In this paragraph, the
term `fiscal quarter' means any 3-month period
beginning on October 1, January 1, April 1, or
July 1 of a fiscal year.
``(c) Training Programs That May Be Approved.--The training
programs that may be approved under subsection (a) include--
``(1) employer-based training, including--
``(A) on-the-job training;
``(B) customized training; and
``(C) apprenticeship programs registered
under the National Apprenticeship Act (29
U.S.C. 50 et seq.);
``(2) a training program that leads to a license,
certificate, or degree and is linked to occupations in
demand, which may include training provided in
classroom, distance learning, and technology-based
learning;
``(3) a training program that has been determined by
a State to be eligible to receive payments under
section 122 of the Workforce Investment Act of 1998 (29
U.S.C. 2842);
``(4) a program of remedial education that will
enable a worker to obtain employment or to enroll in a
training program described in paragraph (2) or (3); and
``(5) a training program for which all, or any
portion, of the costs of training the worker are paid--
``(A) under any Federal or State program
other than this chapter; or
``(B) from any source other than this
section.
``(d) Sharing of Costs.--
``(1) In general.--The Secretary is not required
under subsection (a) to pay the costs of any training
approved under such subsection to the extent that such
costs are paid--
``(A) under any Federal or State program
other than this chapter; or
``(B) from any source other than this
section.
``(2) Cost-sharing agreement.--Before approving any
training to which paragraph (1) may apply, the
Secretary may require that the adversely affected
worker or the adversely affected incumbent worker enter
into an agreement with the Secretary under which the
Secretary will not be required to pay under this
section the portion of the costs of such training that
the worker has reason to believe will be paid under the
program, or by the source, described in subparagraph
(A) or (B) of paragraph (1).
``(e) Supplemental Assistance.--
``(1) In general.--The Secretary may, where
appropriate, authorize supplemental assistance
necessary to defray reasonable transportation and
subsistence expenses for separate maintenance when
training is provided in facilities that are not within
commuting distance of a worker's regular place of
residence.
``(2) Limitations.--The Secretary may not authorize--
``(A) payments for subsistence that exceed
whichever is the lesser of--
``(i) the actual per diem expenses
for subsistence; or
``(ii) payments at 50 percent of the
prevailing per diem allowance rate
authorized under the Federal travel
regulations; or
``(B) payments for travel expenses exceeding
the prevailing mileage rate authorized under
the Federal travel regulations.
``(f) Payment of Costs of On-the-Job Training.--
``(1) In general.--The Secretary shall pay the costs
of any on-the-job training of an adversely affected
worker that is approved under subsection (a)(l), but
the Secretary may pay such costs, notwithstanding any
other provision of this section, only if--
``(A) no currently employed worker is
displaced by such adversely affected worker
(including partial displacement such as a
reduction in the hours of nonovertime work,
wages, or employment benefits);
``(B) such training does not impair existing
contracts for services or collective bargaining
agreements;
``(C) in the case of training which would be
inconsistent with the terms of a collective
bargaining agreement, the written concurrence
of the labor organization concerned has been
obtained;
``(D) no other individual is on layoff from
the same, or any substantially equivalent, job
for which such adversely affected worker is
being trained;
``(E) the employer has not terminated the
employment of any regular employee or otherwise
reduced the work force of the employer with the
intention of filling the vacancy so created by
hiring such adversely affected worker;
``(F) the job for which such adversely
affected worker is being trained is not being
created in a promotional line that will
infringe in any way upon the promotional
opportunities of currently employed
individuals;
``(G) such training is not for the same
occupation from which the worker was separated
and with respect to which such worker's group
was certified pursuant to section 222;
``(H) the employer is provided reimbursement
of not more than 50 percent of the wage rate of
the participant, for the cost of providing the
training and additional supervision related to
the training;
``(I) the duration of such training does not
exceed 1 year; and
``(J) the employer has not received payment
under subsection (a)(1) with respect to any
other on-the-job training provided by such
employer which failed to meet the requirements
of subparagraphs (A), (B), (C), (D), (E), and
(F).
``(2) Supplementary training.--An on-the-job training
program approved under this section may include, as a
component of such program, the provision of training
with a provider other than the employer that is not
provided on-the-job and is designed to enhance the
occupational skills of the worker. The costs of such
training shall be subject to the limitation described
in subsection (b)(2)(B).
``(g) Effect of Approved Training on Eligibility for
Unemployment Compensation.--A worker may not be determined to
be ineligible or disqualified for unemployment insurance or
program benefits under this subchapter because the individual
is in training approved under subsection (a), because of
leaving work which is not comparable employment to enter such
training, or because of the application to any such week in
training of provisions of State law or Federal unemployment
insurance law relating to availability for work, active search
for work, or refusal to accept work.
``(h) Definition.--In this section, the term `customized
training' means training that is--
``(1) designed to meet the special requirements of an
employer or group of employers;
``(2) conducted with a commitment by the employer or
group of employers to employ an individual upon
successful completion of the training; and
``(3) for which the employer pays for a significant
portion of the cost of such training, as determined by
the Secretary.''.
(b) Conforming Amendments.--Part II of subchapter B of
chapter 2 of title II of the Trade Act of 1974 (19 U.S.C. 2295
et seq.) is amended--
(1) in section 237(b)(2), by striking ``section
236(b)(1) and (2)'' and inserting ``section 236''; and
(2) in subsections (b)(1) and (c)(2) of section 238,
by striking ``section 236(b)(1) and (2)'' each place it
appears and inserting ``section 236''.
SEC. 123. JOB SEARCH ALLOWANCES.
Section 237(a)(2) of the Trade Act of 1974 (19 U.S.C.
2297(a)(2)) is amended--
(1) in subparagraph (B), by striking ``suitable'' and
inserting ``comparable''; and
(2) in subparagraph (C)(ii), by striking ``, unless
the worker received a waiver under section 231(c)''.
SEC. 124. RELOCATION ALLOWANCES.
Section 238(a)(2) of the Trade Act of 1974 (19 U.S.C.
2298(a)(2)) is amended--
(1) in subparagraph (B), by striking ``suitable'' and
inserting ``comparable'';
(2) in subparagraph (D)--
(A) in the heading, by striking ``suitable''
and inserting ``out-of-area''; and
(B) in clause (i) to read as follows:
``(i) has obtained employment
affording a reasonable expectation of
long-term duration in the area in which
the worker wishes to relocate and which
provides wages that are substantially
greater than the wages for the
employment that is likely to be
available to the worker in the area
from which the worker would be
relocating; and''; and
(3) in subparagraph (E)(ii), by striking ``, unless
the worker received a waiver under section 231(c)''.
Subtitle C--General Provisions
SEC. 131. AGREEMENTS WITH STATES.
(a) In General.--Subsection (a) of section 239 of the Trade
Act of 1974 (19 U.S.C. 2311) is amended--
(1) in the matter preceding clause (1), by striking
``any State agency'' and inserting ``a State agency'';
(2) in clause (2), to read as follows: ``(2) in
accordance with subsections (e) and (f), will afford
adversely affected workers testing and assessments,
career counseling, referral to training and job search
programs, and job placement services, and'';
(3) by striking clause (3); and
(4) by redesignating clause (4) as clause (3).
(b) Administration.--Subsection (e) of such section is
amended--
(1) in the first sentence, to read as follows: ``Any
agreement entered into under this section shall provide
for the administration of the provision for
reemployment services, training, and supplemental
assistance under sections 235 and 236 of this Act by
the same State agency responsible for the
administration of the State workforce investment
program funded under title I of the Workforce
Investment Act of 1998 (29 U.S.C. 2801 et seq.) and
shall include such terms and conditions as are
established by the Secretary in consultation with the
States and set forth in such agreement.'';
(2) in the second sentence, by striking ``Any
agency'' and inserting ``The agency''; and
(3) by adding at the end the following new sentence:
``The terms and conditions set forth in the agreement
shall include at a minimum that--
``(1) adversely affected workers applying for
assistance under this chapter shall be co-enrolled in
the dislocated worker program authorized under chapter
5 of subtitle B of title I of the Workforce Investment
Act of 1998 (29 U.S.C. 2861 et seq.); and
``(2) the services provided under this chapter shall
be administered through the one-stop delivery system
established under title I of such Act (29 U.S.C. 2801
et seq.).''.
(c) Cooperating State Agency.--Subsection (f) of such section
is amended--
(1) in paragraph (2), by adding ``and'' at the end;
(2) by striking paragraph (3);
(3) by redesignating paragraph (4) as paragraph (3); and
(4) in paragraph (3) (as redesignated by paragraph (3) of
this subsection), by striking ``suitable''.
(d) Performance Accountability.--Such section is further
amended by adding at the end the following new subsection:
``(h) Performance Accountability.--
``(1) In general.--Any agreement entered into under
this section shall include performance measures that
the cooperating State or State agency is expected to
achieve with respect to the program carried out under
this chapter. The performance measures shall consist of
indicators of performance and levels of performance
applicable to each indicator.
``(2) Indicators of performance.--The indicators of
performance shall be--
``(A) entry into employment;
``(B) retention in employment;
``(C) average earnings; and
``(D) such other indicators as the Secretary
determines are appropriate.
``(3) Levels of performance.--The levels of
performance for each State for the indicators of
performance described in paragraph (2) shall be
determined by the Secretary, after consultation with
the State.
``(4) Performance reporting.--Any agreement shall
also include a requirement that the State annually
report to the Secretary the level of performance
achieved with respect to each indicator under the
program carried out under this chapter in the preceding
fiscal year, and the State shall submit such additional
reports regarding the performance of programs as the
Secretary may require. The Secretary shall make the
information contained in the annual reports available
to the general public through publication on the
Website of the Department of Labor and other
appropriate methods and shall provide copies of the
reports to the Committee on Ways and Means of the House
of Representatives and the Committee on Finance of the
Senate. The Secretary shall also publish on the Website
of the Department of Labor a list identifying those
States that fail to submit reports to the Secretary on
a timely basis or fail to submit accurate reports.''.
SEC. 132. AUTHORIZATION OF APPROPRIATIONS; INCENTIVE PAYMENTS TO
STATES.
(a) In General.--Subsection (a) of section 245 of the Trade
Act of 1974 (19 U.S.C. 2317) is amended by striking ``December
31, 2007'' and inserting ``September 30, 2012''.
(b) Incentive Payments to States.--Such section is further
amended by adding at the end the following new subsection:
``(c) Incentive Payments to States.--If, in the last quarter
of any fiscal year, the Secretary determines that the amount of
funds needed to make payments for the costs of training under
this chapter for such fiscal year will not reach the amount of
the limitation described in section 236(b)(1)(A) and funds
appropriated to make payments for the costs of such training
remain available for obligation, the Secretary may use not more
than an amount equal to five percent of the amount of the
limitation described in such section 236(b)(1)(A) to award
funds to States that the Secretary determines have demonstrated
exemplary performance in carrying out the program under this
chapter with respect to exceeding the performance levels
established pursuant to section 239(h) and with respect to such
other factors as the Secretary determines appropriate. Such
funds shall be available to the States for the purpose of
enhancing the administration of the program which may include
improvements to management information systems, targeted
outreach, staff training, and enhanced services to
participants.''.
(c) Conforming and Clerical Amendments.--
(1) Conforming amendment.--Such section is further
amended in the heading by inserting before the period
at the end the following: ``; INCENTIVE PAYMENTS TO
STATES''.
(2) Clerical amendment.--The table of contents in
section 1 of the Trade Act of 1974 is amended by
striking the item relating to section 245 and inserting
the following:
``Sec. 245. Authorization of appropriations; incentive payments to
States.''.
SEC. 133. PHASE-OUT OF DEMONSTRATION PROJECT FOR ALTERNATIVE TRADE
ADJUSTMENT ASSISTANCE FOR OLDER WORKERS.
Section 246(b)(1) of the Trade Act of 1974 (19 U.S.C.
2318(b)(1)) is amended by striking ``the date that is 5 years
after the date under which such program is implemented by the
State'' and inserting ``September 30, 2008''.
SEC. 134. WAGE SUPPLEMENT PROGRAM.
(a) In General.--Chapter 2 of title II of the Trade Act of
1974 (19 U.S.C. 2271 et seq.) is amended by inserting after
section 246 the following new section:
``SEC. 246A. WAGE SUPPLEMENT PROGRAM.
``(a) Establishment.--Beginning on October 1, 2008, the
Secretary shall establish a program to provide the benefits
described in subsection (b) to an adversely affected worker who
meets the eligibility criteria described in subsection (c),
including the requirement that such worker be employed for the
minimum number of hours per week described in subsection
(c)(3).
``(b) Benefits.--
``(1) Amount of payments.--A State shall use the
funds provided to the State under section 241 to pay an
hourly wage supplement to an eligible adversely
affected worker for a period not to exceed 2 years, in
an amount equal to the difference, if any (but not less
than zero) resulting from subtracting the amount
described in paragraph (2)(B) from the amount described
in paragraph (2)(A).
``(2) Factors.--(A) For purposes of paragraph (1),
the amount described in this subparagraph is the sum
of--
``(i) whichever is the highest of--
``(I) the hourly minimum wage that is
applicable to a worker under the Fair
Labor Standards Act of 1938 (29 U.S.C.
201 et seq.), or if such worker is
exempt under section 13 of such Act (29
U.S.C. 213), the hourly minimum wage
that would be applicable if section
6(a)(1) of such Act (29 U.S.C.
206(a)(1)) were applied; or
``(II) the applicable State or local
hourly minimum wage; and
``(ii) $2.40.
``(B) For purposes of paragraph (1), the amount
described in this subparagraph is the hourly wage
actually paid to such worker.
``(3) Health insurance eligibility.--A worker
described in subsection (c) who is participating in the
program established under subsection (a) is eligible to
receive, for a period not to exceed 2 years, a credit
for health insurance costs to the extent provided under
section 35 of the Internal Revenue Code of 1986.
``(c) Eligibility for Wage Supplement.--A worker in a group
that the Secretary has certified as eligible to apply for
adjustment assistance under section 223 may elect to receive
the benefits described in subsection (b) if such worker--
``(1) is covered by a certification under subchapter
A of this chapter;
``(2) meets the requirements of paragraphs (1) and
(2) of section 231(a));
``(3) is employed for an average of at least 30 hours
per week, which may include employment as part of an
apprenticeship program registered under the National
Apprenticeship Act (20 U.S.C. 50 et seq.);
``(4) does not return to the employment from which
the worker was separated; and
``(5) has not received any payments under section 246
while covered under the same certification as described
in paragraph (1).
``(d) Effect on Other Benefits.--A worker receiving payments
under this section shall not be eligible to receive other
benefits under this chapter except for training assistance
provided under section 236 (provided that such worker otherwise
meets the requirements of section 236) or the assistance
described in subsection (b)(3). A worker may receive payments
under this section during breaks in training that exceed the
period described in section 233(e) if the worker otherwise
meets the requirements of this section.''.
(b) Clerical Amendment.--The table of contents in section 1
of the Trade Act of 1974 is amended by inserting after the item
relating to section 246 the following:
``Sec. 246A. Wage supplement program.''.
SEC. 135. DEFINITIONS.
Section 247 of the Trade Act of 1974 (19 U.S.C. 2319) is
amended by adding at the end the following new paragraphs:
``(18) The term `comparable employment' means, with
respect to a worker, work of a substantially equal or
higher skill level than the worker's past adversely
affected employment, and wages for such work at not
less than 80 percent of the worker's average weekly
wage.
``(19) The term `adversely affected incumbent worker'
means a worker who is a member of a group of workers
who have been certified as eligible to apply for
adjustment assistance under subchapter A and who has
not been separated from adversely affected
employment.''.
SEC. 136. CAPACITY-BUILDING GRANTS TO ENHANCE TRAINING FOR WORKERS.
(a) In General.--Chapter 2 of title II of the Trade Act of
1974 (19 U.S.C. 2271 et seq.) is amended by adding at the end
the following new section:
``SEC. 250. CAPACITY-BUILDING GRANTS TO ENHANCE TRAINING FOR WORKERS.
``(a) In General.--The Secretary may award grants to eligible
entities described in subsection (b) to temporarily increase
the capacity of such entities, through the activities
authorized under subsection (c), to provide training to workers
as provided for in section 236.
``(b) Eligible Entities.--An eligible entity referred to in
subsection (a) is--
``(1) a community college (as such term is defined in
section 202(a)(2) of the Carl D. Perkins Vocational and
Applied Technology Education Amendments of 1998 (20
U.S.C. 2371(a)(2)) that provides training for
occupations in demand; or
``(2) a provider of training for occupations in
demand that is eligible to receive funds under section
122 of the Workforce Investment Act of 1998 (29 U.S.C.
2842).
``(c) Authorized Activities.--An eligible entity that is
awarded a grant under this section shall utilize funds under
the grant to expand available training slots and prepare
adversely affected workers and adversely affected incumbent
workers under this chapter for occupations in demand by
conducting such activities as the Secretary may authorize,
including--
``(1) the development of education and training
curricula, which may be developed in consultation with
employers of incumbent workers, local workforce
investment boards (as defined in section 117 of the
Workforce Investment Act of 1998 (29 U.S.C. 2832)),
labor organizations that represent individuals
currently employed in occupations in demand for the
local area, regional economic development agencies,
one-stop operators (as defined in section 101(29) of
such Act (29 U.S.C. 2801(29)), community-based
organizations, or any other public or private entity
that is likely to employ or facilitate the employment
of adversely affected workers in occupations in demand;
``(2) the hiring of additional faculty and staff;
``(3) the acquisition of new equipment or the
upgrading of existing equipment, which shall be
necessary to facilitate the teaching of job skills to
adversely affected workers and adversely affected
incumbent workers; and
``(4) the development of a program to provide on-the-
job training experiences for adversely affected workers
in coordination with local employers that have
committed to employ adversely affected workers
following successful completion of the program.
``(d) Application.--
``(1) Requests for applications.--
``(A) By the secretary.--In each fiscal year,
and at such times as the Secretary may
determine, the Secretary may request
applications from eligible entities to carry
out activities authorized under this section.
``(B) By an eligible entity.--At any time,
and in such form and manner as the Secretary
may prescribe, an eligible entity may recommend
that the Secretary initiate a request for
capacity building grant applications if the
eligible entity believes that there has been or
will be a sudden and significant shortage of
training slots available to adversely affected
workers and adversely affected incumbent
workers in a local area.
``(2) Information required for application.--To be
eligible to receive a grant under this section, an
applicant shall provide to the Secretary the following
information in the application:
``(A) A description of the factors in a local
area that have resulted or may result in a
significant increase in demand for training
slots by adversely affected workers and
adversely affected incumbent workers, which may
include--
``(i) mass layoffs at firms that are
believed to employ a large number of
adversely affected workers;
``(ii) imminent closure or relocation
of facilities that are believed to
employ a large number of adversely
affected workers; and
``(iii) prevailing labor market
conditions that may have an immediate,
measurable adverse employment impact on
the employment of adversely affected
workers.
``(B) A description of the number of training
slots currently available to adversely affected
workers and adversely affected incumbent
workers, and the number of proposed additional
slots to be made available using funds under
the grant.
``(C) A description of the potential number
of adversely affected workers and adversely
affected incumbent workers in the local area
who would be able to access increased training
slots.
``(D) A description of the commitment made by
local employers, labor organizations, and other
public or private organizations to assist in
the development of training and related
curricula for the benefit of adversely affected
workers and adversely affected incumbent
workers.
``(e) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $50,000,000 for
each of fiscal years 2008 through 2012.''.
(b) Clerical Amendment.--The table of contents in section 1
of the Trade Act of 1974 is amended by inserting after the item
relating to section 249 the following:
``Sec. 250. Capacity-building grants to enhance training for workers.''.
Subtitle D--Effective Date
SEC. 141. EFFECTIVE DATE.
The amendments made by this title shall take effect beginning
90 days after the date of the enactment of this Act.
TITLE II--OTHER TRADE ADJUSTMENT ASSISTANCE PROGRAMS AND RELATED
PROVISIONS
SEC. 201. TECHNICAL ASSISTANCE FOR FIRMS.
Section 253 of the Trade Act of 1974 (19 U.S.C. 2343) is
amended by adding at the end the following new subsections:
``(c)(1) Any grant made under subsection (b)(3) shall include
performance measures that an intermediary organization is
expected to achieve with respect to the program carried out
under this chapter. The performance measures shall consist of
indicators of performance described in paragraph (2) and levels
of performance described in paragraph (3) applicable to each
such indicator of performance.
``(2) The indicators of performance referred to in paragraph
(1) are the following:
``(A) The extent to which outreach efforts
effectively apprise import-impacted firms likely to
benefit from the program about resources available
under the program.
``(B) The extent to which firms receiving adjustment
assistance under section 252 meet or exceed targets to
retain or create employment.
``(C) The percentage of workers totally or partially
separated from employment that have returned to work or
returned to their previous level of employment.
``(D) The extent to which firms receiving adjustment
assistance under section 252 meet or exceed targets for
maintaining or increasing sales or production.
``(E) Such other indicators of performance as the
Secretary may determine are appropriate.
``(3) The levels of performance referred to in paragraph (1)
shall be determined by the Secretary, after consultation with
the intermediary organization. In reviewing an intermediary
organization's levels of performance, the Secretary shall take
into consideration economic conditions affecting the region
served by the organization that may affect that performance.
``(4)(A) Any grant made under subsection (b)(3) shall also
include a requirement that the intermediary organization submit
to the Secretary a report on an annual basis on the levels of
performance achieved with respect to each indicator of
performance under the program carried out under this chapter in
the preceding fiscal year, and such additional reports
regarding such indicators of performance as the Secretary may
require.
``(B) The Secretary shall make the information contained in
the reports described in subparagraph (A) available to the
general public through publication on the Website of the
Economic Development Administration and other appropriate
methods. The Secretary shall provide copies of the reports
described in subparagraph (A) to the Committee on Ways and
Means of the House of Representatives and the Committee on
Finance of the Senate.
``(C) The Secretary shall also publish on the Website of the
Economic Development Administration a list that identifies
those intermediary organizations that fail to submit reports to
the Secretary in accordance with subparagraph (A) on a timely
basis or fail to submit accurate reports to the Secretary in
accordance with subparagraph (A).
``(d) At least once every three years, the Secretary shall
provide for an independent evaluation of each intermediary
organization receiving assistance under this section to assess
the intermediary organization's performance and contribution
toward retention and creation of employment. The purpose of the
evaluations shall be to determine which intermediary
organizations are performing well and merit continued
assistance under this section and which intermediary
organizations should not receive continued assistance under
this section, so that other universities and intermediary
organizations that have not previously received assistance
under this section may participate in the program carried out
under this chapter.''.
SEC. 202. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE FOR FIRMS.
Section 256(b) of the Trade Act of 1974 (19 U.S.C. 2346(b))
is amended--
(1) by striking ``and $4,000,000'' and inserting
``$4,000,000''; and
(2) by inserting after ``October 1, 2007,'' the
following: ``$15,000,000 for the 9-month period
beginning on January 1, 2008, and $19,000,000 for each
of the fiscal years 2009 through 2012,''.
SEC. 203. EXTENSION OF TRADE ADJUSTMENT ASSISTANCE FOR FARMERS.
Section 298(a) of the Trade Act of 1974 (19 U.S.C. 2401g(a))
is amended by adding at the end the following new sentence:
``There are authorized to be appropriated to the Department of
Agriculture to carry out this chapter $81,000,000 for the 9-
month period beginning on January 1, 2008, and $90,000,000 for
each of the fiscal years 2009 through 2012.''.
SEC. 204. JUDICIAL REVIEW.
(a) In General.--Section 284(a) of the Trade Act of 1974 (19
U.S.C. 2395(a)) is amended in the first sentence--
(1) by striking ``or authorized representative'' and
inserting ``or other duly authorized representative'';
(2) by striking ``aggrieved'' and inserting ``, or
any of the individuals or entities described in section
221(a)(1)(C), aggrieved (or on behalf of such workers
aggrieved)''; and
(3) by striking ``section 223'' and inserting
``section 226''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect beginning 90 days after the date of the
enactment of this Act.
SEC. 205. TERMINATION.
Section 285 of the Trade Act of 1974 (19 U.S.C. 2271 note) is
amended by striking ``December 31, 2007'' each place it appears
and inserting ``September 30, 2012''.
TITLE III--MISCELLANEOUS PROVISIONS
SEC. 301. CREDIT REDUCTION FOR FAILURES RELATING TO CO-ENROLLMENT OF
PARTICIPANTS AND PROGRAM PERFORMANCE REPORTS.
(a) In General.--Paragraph (3) of section 3302(c) of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``(3) If'' and inserting ``(3) (A)
Except as provided in subparagraph (B), if'',
(2) by redesignating subparagraphs (A) and (B) as
clauses (i) and (ii), respectively, and
(3) by adding at the end the following new
subparagraph:
``(B) If the Secretary of Labor determines that a
State, or State agency, failed to meet the requirements
of subsections (e)(1) (relating to the co-enrollment of
participants) or (h)(3) (relating to the submission of
reports on program performance) of section 239 of the
Trade Act of 1974, the Secretary of Labor may direct
that, in the case of a taxpayer subject to the
unemployment compensation law of such State, the total
credits (after applying subsections (a) and (b) and
paragraphs (1) and (2) of this section) otherwise
allowable under this section for a year during which
such State or agency fails to meet those requirements
shall (in lieu of reduction under subparagraph (A)) be
reduced by 3 percent of the tax imposed with respect to
wages paid by such taxpayer during such year which are
attributable to such State.''.
(b) Effective Date.--The amendments made by this section
shall apply with respect to taxable years beginning after
September 30, 2008.
SEC. 302. TAA WAGE SUPPLEMENT PARTICIPANTS ELIGIBILITY FOR CREDIT FOR
HEALTH INSURANCE COSTS.
(a) Eligibility.--Paragraph (1) of section 35(c) of the
Internal Revenue Code of 1986 is amended by striking ``and'' at
the end of subparagraph (B), by striking the period at the end
of subparagraph (C) and inserting ``, and'' , and by adding
after subparagraph (C) the following:
``(D) an eligible TAA wage supplement
recipient.''.
(b) Eligible TAA Wage Supplement Recipient Defined.--
Subsection (c) of section 35 of such Code is amended by adding
after paragraph (4) the following:
``(5) Eligible taa wage supplement recipient.--The
term `eligible TAA wage supplement recipient' means,
with respect to any month, any individual who--
``(A) is a worker described in section
246A(c) of the Trade Act of 1974 who is
participating in the wage supplement program
established under section 246A(a) of such Act,
and
``(B) is receiving a benefit for such month
under section 246A(b) of such Act.
An individual shall continue to be treated as an
eligible TAA wage supplement recipient during the first
month that such individual would otherwise cease to be
an eligible TAA wage supplement recipient by reason of
the preceding sentence.''.
(c) Qualified Health Insurance.--Subparagraph (J) of section
35(e)(1) of such Code is amended by striking ``or'' at the end
of clause (ii), by striking the period at the end of clause
(iii) and inserting ``, or'' , and by inserting after clause
(iii) the following:
``(iv) in the case of an eligible TAA
wage supplement recipient, the benefit
described in subsection (c)(5)(B).''.
(d) Subsidized Coverage.--Subparagraph (B) of section
35(f)(1) of such Code is amended --
(1) by inserting ``or an eligible TAA wage supplement
recipient'' after ``eligible alternative TAA
recipient'' in the matter preceding clause (i), and
(2) by inserting ``or eligible taa wage supplement
recipients'' after ``eligible alternative taa
recipients'' in the heading.
(e) Advance Payment of HCTC.--Paragraph (1) of section
7527(d) of such Code is amended by striking ``or an eligible
alternative TAA recipient (as defined in section 35(c)(3))''
and inserting ``, an eligible alternative TAA recipient (as
defined in section 35(c)(3)), or an eligible TAA wage
supplement recipient (as defined in section 35(c)(5))''.
(f) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31, 2007.
SEC. 303. SPECIAL ALLOCATION UNDER NEW MARKETS TAX CREDIT IN CONNECTION
WITH TRADE ADJUSTMENT ASSISTANCE.
(a) In General.--Section 45D of the Internal Revenue Code of
1986 is amended by redesignating subsection (i) as subsection
(j) and by inserting after subsection (h) the following new
subsection:
``(i) Special Allocations in Connection With Trade Adjustment
Assistance.--
``(1) Allocations.--The new markets tax credit
limitation otherwise determined under subsection (f)(1)
shall be increased by an amount equal to $500,000,000
for 2008 to be allocated among qualified community
development entities to make capital or equity
investments in, or loans to, qualified TAA businesses.
``(2) Restriction on designation.--A qualified
community development entity receiving an allocation
under paragraph (1) may not use such allocation to
designate any qualified equity investment under
subsection (b)(1)(C) unless substantially all of such
investment is used for the purpose described in
paragraph (1).
``(3) Qualified taa businesses.--For purposes of this
subsection--
``(A) In general.--The term `qualified TAA
business' means, with respect to any taxable
year--
``(i) any qualified active low-income
community business (as defined in
subsection (d)(2)) which meets the
requirements of clause (i) or (ii) of
subparagraph (B) for such taxable year,
and
``(ii) any specified TAA business.
``(B) Specified taa business.--The term
`specified TAA business' means, with respect to
any taxable year, any corporation (including a
nonprofit corporation) or partnership if--
``(i) not less than 40 percent of the
individuals hired by such entity during
such taxable year were eligible TAA
recipients (as defined in section
35(c)(2)) or eligible alternative TAA
recipients (as defined in section
35(c)(3)) with respect to any month
beginning during the 1-year period
ending on the hiring date (as defined
in section 51(d)) of such individual,
``(ii) such entity is certified by
the Secretary of Commerce as eligible
to apply for adjustment assistance
under chapter 3 of title II of the
Trade Act of 1974 with respect to any
portion of the taxable year in which
the investment or loan referred to in
paragraph (1) is made, and
``(iii) the Secretary determines that
such entity will utilize the assistance
provided pursuant to this section in a
manner consistent with the purposes of
subsection (d)(2)(A).
The requirement of clause (i) shall be treated
as satisfied for any taxable year if such
clause would be satisfied if all individuals
hired by such entity during such taxable year
and all preceding taxable years which are not
before the taxable year in which the investment
or loan referred to in paragraph (1) was made
were taken into account.
``(4) Reallocations.--Subsection (f)(3) shall be
applied separately with respect to the amount of the
increase under paragraph (1).''.
(b) Effective Date.--The amendments made by this section
shall apply to allocations made after December 31, 2007.
SEC. 304. EXPEDITED REEMPLOYMENT DEMONSTRATION PROJECTS.
Title III of the Social Security Act (42 U.S.C. 501 and
following) is amended by adding at the end the following:
``DEMONSTRATION PROJECTS
``Sec. 305. (a) The Secretary of Labor may enter into
agreements, with States submitting an application described in
subsection (b), for the purpose of allowing such States to
conduct demonstration projects to test and evaluate measures
designed--
``(1) to expedite, such as through the use of a wage
insurance program, the reemployment of individuals who
establish initial eligibility for unemployment compensation
under the State law of such State; or
``(2) to improve the effectiveness of such State in carrying
out its State law.
``(b) The Governor of any State desiring to conduct a
demonstration project under this section shall submit an
application to the Secretary of Labor at such time, in such
manner, and including such information as the Secretary of
Labor may require. Any such application shall, at a minimum,
include--
``(1) a general description of the proposed
demonstration project, including the authority (under
the laws of the State) for the measures to be tested,
as well as the period of time during which such
demonstration project would be conducted;
``(2) if a waiver under subsection (c) is requested,
the specific aspects of the project to which the waiver
would apply and the reasons why such waiver is needed;
``(3) a description of the goals and the expected
programmatic outcomes of the demonstration project,
including how the project would contribute to the
objective described in subsection (a)(1), subsection
(a)(2), or both;
``(4) assurances (accompanied by supporting analysis)
that the demonstration project would not result in any
increased net costs to the State's account in the
Unemployment Trust Fund;
``(5) a description of the manner in which the
State--
``(A) will conduct an impact evaluation,
using a control or comparison group or other
valid methodology, of the demonstration
project; and
``(B) will determine the extent to which the
goals and outcomes described in paragraph (3)
were achieved; and
``(6) assurances that the State will provide any
reports relating to the demonstration project, after
its approval, as the Secretary of Labor may require.
``(c) The Secretary of Labor may waive any of the
requirements of section 3304(a)(4) of the Internal Revenue Code
of 1986 or of paragraph (1) or (5) of section 303(a), to the
extent and for the period the Secretary of Labor considers
necessary to enable the State to carry out a demonstration
project under this section.
``(d) A demonstration project under this section--
``(1) may be commenced any time after September 30,
2007; and
``(2) may not, under subsection (b), be approved for
a period of time greater than 2 years, subject to
extension upon request of the Governor of the State
involved for such additional period as the Secretary of
Labor may agree to, except that in no event may a
demonstration project under this section be conducted
after the end of the 5-year period beginning on the
date of the enactment of this section.
``(e) The Secretary of Labor shall, in the case of any State
for which an application is submitted under subsection (b)--
``(1) notify the State as to whether such application
has been approved or denied within 90 days after
receipt of a complete application, and
``(2) provide public notice of the decision within 10
days after providing notification to the State in
accordance with paragraph (1).
Public notice under paragraph (2) may be provided through the
Internet or other appropriate means. Any application under this
section that has not been approved within such 90 days shall be
treated as denied.
``(f) The Secretary of Labor may terminate a demonstration
project under this section if the Secretary determines that the
State has not complied with the terms and conditions of the
project.''.
SEC. 305. INCREASE IN PERCENTAGE OF TAA AND PBGC HEALTH INSURANCE TAX
CREDIT.
(a) In General.--Subsection (a) of section 35 of the Internal
Revenue Code of 1986 is amended by striking ``65 percent'' and
inserting ``70 percent''.
(b) Conforming Amendment.--Subsection (b) of section 7527 of
such Code is amended by striking ``65 percent'' and inserting
``70 percent''.
(c) Effective Date.--The amendments made by this section
shall apply to months beginning after December 31, 2007, in
taxable years ending after such date.
SEC. 306. COLLECTION OF UNEMPLOYMENT COMPENSATION DEBTS.
(a) In General.--Section 6402 of the Internal Revenue Code
(relating to authority to make credits or refunds) is amended
by redesignating subsections (f) through (k) as subsections (g)
through (l), respectively, and by inserting after subsection
(e) the following new subsection:
``(f) Collection of Unemployment Compensation Debts.--
``(1) In general.--Upon receiving notice from any
State that a named person owes a covered unemployment
compensation debt to such State, the Secretary shall,
under such conditions as may be prescribed by the
Secretary--
``(A) reduce the amount of any overpayment
payable to such person by the amount of such
covered unemployment compensation debt;
``(B) pay the amount by which such
overpayment is reduced under subparagraph (A)
to such State and notify such State of such
person's name, taxpayer identification number,
address, and the amount collected; and
``(C) notify the person making such
overpayment that the overpayment has been
reduced by an amount necessary to satisfy a
covered unemployment compensation debt.
If an offset is made pursuant to a joint return, the
notice under subparagraph (B) shall include the names,
taxpayer identification numbers, and addresses of each
person filing such return and the notice under
subparagraph (C) shall include information related to
the rights of a spouse of a person subject to such an
offset.
``(2) Priorities for offset.--Any overpayment by a
person shall be reduced pursuant to this subsection--
``(A) after such overpayment is reduced
pursuant to--
``(i) subsection (a) with respect to
any liability for any internal revenue
tax on the part of the person who made
the overpayment;
``(ii) subsection (c) with respect to
past-due support; and
``(iii) subsection (d) with respect
to any past-due, legally enforceable
debt owed to a Federal agency; and
``(B) before such overpayment is credited to
the future liability for any Federal internal
revenue tax of such person pursuant to
subsection (b).
If the Secretary receives notice from a State or States
of more than one debt subject to paragraph (1) or
subsection (e) that is owed by a person to such State
or States, any overpayment by such person shall be
applied against such debts in the order in which such
debts accrued.
``(3) Notice; consideration of evidence.--No State
may take action under this subsection until such
State--
``(A) notifies the person owing the covered
unemployment compensation debt that the State
proposes to take action pursuant to this
section;
``(B) provides such person at least 60 days
to present evidence that all or part of such
liability is not legally enforceable;
``(C) considers any evidence presented by
such person and determines that an amount of
such debt is legally enforceable; and
``(D) satisfies such other conditions as the
Secretary may prescribe to ensure that the
determination made under subparagraph (C) is
valid and that the State has made reasonable
efforts to obtain payment of such covered
unemployment compensation debt.
``(4) Covered unemployment compensation debt.--For
purposes of this subsection, the term `covered
unemployment compensation debt' means--
``(A) a past-due debt for erroneous payment
of unemployment compensation which has become
final under the law of a State certified by the
Secretary of Labor pursuant to section 3304 and
which remains uncollected;
``(B) contributions due to the unemployment
fund of a State for which the State has
determined the person to be liable; and
``(C) any penalties and interest assessed on
such debt.
``(5) Regulations.--
``(A) In general.--The Secretary may issue
regulations prescribing the time and manner in
which States must submit notices of covered
unemployment compensation debt and the
necessary information that must be contained in
or accompany such notices. The regulations may
specify the minimum amount of debt to which the
reduction procedure established by paragraph
(1) may be applied.
``(B) Fee payable to secretary.--The
regulations may require States to pay a fee to
the Secretary, which may be deducted from
amounts collected, to reimburse the Secretary
for the cost of applying such procedure. Any
fee paid to the Secretary pursuant to the
preceding sentence shall be used to reimburse
appropriations which bore all or part of the
cost of applying such procedure.
``(C) Submission of notices through secretary
of labor.--The regulations may include a
requirement that States submit notices of
covered unemployment compensation debt to the
Secretary via the Secretary of Labor in
accordance with procedures established by the
Secretary of Labor. Such procedures may require
States to pay a fee to the Secretary of Labor
to reimburse the Secretary of Labor for the
costs of applying this subsection. Any such fee
shall be established in consultation with the
Secretary of the Treasury. Any fee paid to the
Secretary of Labor may be deducted from amounts
collected and shall be used to reimburse the
appropriation account which bore all or part of
the cost of applying this subsection.
``(6) Erroneous payment to state.--Any State
receiving notice from the Secretary that an erroneous
payment has been made to such State under paragraph (1)
shall pay promptly to the Secretary, in accordance with
such regulations as the Secretary may prescribe, an
amount equal to the amount of such erroneous payment
(without regard to whether any other amounts payable to
such State under such paragraph have been paid to such
State).''.
(b) Disclosure of Certain Information to States Requesting
Refund Offsets for Legally Enforceable State Unemployment
Compensation Debt.--
(1) General rule.--Paragraph (3) of section 6103(a)
of such Code is amended by inserting ``(10),'' after
``(6),''.
(2) Disclosure to department of labor and its
agent.--Paragraph (10) of section 6103(l) of such Code
is amended--
(A) by striking ``(c), (d), or (e)'' each
place it appears in the heading and text and
inserting ``(c), (d), (e), or (f)'',
(B) in subparagraph (A) by inserting ``, to
officers and employees of the Department of
Labor and its agent for purposes of
facilitating the exchange of data in connection
with a request made under subsection (f)(5) of
section 6402,'' after ``section 6402'', and
(C) in subparagraph (B) by inserting ``, and
any agents of the Department of Labor,'' after
``agency'' the first place it appears.
(3) Safeguards.--Paragraph (4) of section 6103(p) of
such Code is amended--
(A) in the matter preceding subparagraph (A),
by striking ``(l)(16),'' and inserting
``(l)(10), (16),'';
(B) in subparagraph (F)(i), by striking
``(l)(16),'' and inserting ``(l)(10), (16),'';
and
(C) In the matter following subparagraph
(f)(iii)--
(i) in each of the first two places
it appears, by striking ``(l)(16),''
and inserting ``(l)(10), (16),'';
(ii) by inserting ``(10),'' after
``paragraph (6)(A),''; and
(iii) in each of the last two places
it appears, by striking ``(l)(16)'' and
inserting ``(l)(10) or (16)''.
(c) Expenditures From State Fund.--Section 3304(a)(4) of such
Code is amended--
(1) in subparagraph (E), by striking ``and'' after
the semicolon;
(2) in subparagraph (F), by inserting ``and'' after
the semicolon; and
(3) by adding at the end the following new
subparagraph:
``(G) With respect to amounts of covered
unemployment compensation debt (as defined in
section 6402(f)(4)) collected under section
6402(f).--
``(i) amounts may be deducted to pay
any fees authorized under such section;
and
``(ii) the penalties and interest
described in section 6402(f)(4)(B) may
be transferred to the appropriate State
fund into which the State would have
deposited such amounts had the person
owing the debt paid such amounts
directly to the State;''.
(d) Conforming Amendments.--
(1) Subsection (a) of section 6402 of such Code is
amended by striking ``(c), (d), and (e),'' and
inserting ``(c), (d), (e), and (f)''.
(2) Paragraph (2) of section 6402(d) of such Code is
amended by striking ``and before such overpayment is
reduced pursuant to subsection (e)'' and inserting
``and before such overpayment is reduced pursuant to
subsections (e) and (f)''.
(3) Paragraph (3) of section 6402(e) of such Code is
amended in the last sentence by inserting ``or
subsection (f)'' after ``paragraph (1)''.
(4) Subsection (g) of section 6402 of such Code, as
redesignated by subsection (a), is amended by striking
``(c), (d), or (e)'' and inserting ``(c), (d), (e), or
(f)''.
(5) Subsection (i) of section 6402 of such Code, as
redesignated by subsection (a), is amended by striking
``subsection (c) or (e)'' and inserting ``subsection
(c), (e), or (f)''.
(e) Effective Date.--The amendments made by this section
shall apply to refunds payable under section 6402 of the
Internal Revenue Code of 1986 on or after the date of enactment
of this Act.
SEC. 307. OFFSETS.
(a) Time for Payment of Corporate Estimated Taxes.--
Subparagraph (B) of section 401(1) of the Tax Increase
Prevention and Reconciliation Act of 2005 is amended by
striking ``115 percent'' and inserting ``127.50 percent''.
(b) Customs User Fees.--Section 13031(j)(3)(A) of the
Consolidated Omnibus Budget Reconciliation Act of 1985 (19
U.S.C. 58c(j)(3)(A)) is amended by striking ``October 21,
2014'' and inserting ``February 17, 2015''.
(c) Timeframe for Medicare Part A and B Payments.--
Notwithstanding sections 1816(c) and 1842(c)(2) of the Social
Security Act or any other provision of law--
(1) any payment from the Federal Hospital Insurance
Trust Fund under section 1817 of the Social Security
Act (42 U.S.C. 1395i) or from the Federal Supplementary
Medical Insurance Trust Fund under section 1841 of such
Act (42 U.S.C. 1395t) for claims submitted under part A
or B of title XVIII of such Act for items and services
furnished under such part A or B, respectively, that
would otherwise be payable during the period beginning
on September 22, 2012, and ending on September 30,
2012, shall be paid on the first business day of
October 2012; and
(2) no interest or late penalty shall be paid to an
entity or individual for any delay in a payment by
reason of the application of paragraph (1).
TITLE IV--WORKFORCE INVESTMENT IMPROVEMENT
SEC. 401. SHORT TITLE.
This title may be cited as the ``Workforce Investment
Improvement Act of 2007''.
SEC. 402. REFERENCES.
Except as otherwise expressly provided, wherever in this
title an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the
amendment or repeal shall be considered to be made to a section
or other provision of the Workforce Investment Act of 1998 (20
U.S.C. 9201 et seq.).
Subtitle A--Amendments to Title I of the Workforce Investment Act of
1998
SEC. 411. DEFINITIONS.
Section 101 (29 U.S.C. 2801) is amended--
(1) by striking paragraphs (13) and (24) and
redesignating paragraphs (1) through (12) as paragraphs
(3) through (14), and paragraphs (14) through (23) as
paragraphs (15) through (24), respectively;
(2) by inserting after ``In this title:'' the
following new paragraphs:
``(1) Accrued expenditures.--The term `accrued
expenditures' means charges incurred by recipients of
funds under this title for a given period requiring the
provision of funds for goods or other tangible property
received; services performed by employees, contractors,
subgrantees, subcontractors, and other payees; and
other amounts becoming owed under programs assisted
under this title for which no current services or
performance is required, such as annuities, insurance
claims, and other benefit payments.
``(2) Administrative costs.--The term `administrative
costs' means expenditures incurred by State and local
workforce investment boards, direct recipients
(including State grant recipients under subtitle B and
recipients of awards under subtitle D), local grant
recipients, local fiscal agents or local grant
subrecipients, and one-stop operators in the
performance of administrative functions and in carrying
out activities under this title which are not related
to the direct provision of workforce investment
services (including services to participants and
employers). Such costs include both personnel and non-
personnel and both direct and indirect.'';
(3) in paragraph (6) (as so redesignated), by
inserting ``(or such other level as the Governor may
establish)'' after ``8th grade level'';
(4) in paragraph (10)(C) (as so redesignated), by
striking ``not less than 50 percent of the cost of the
training'' and inserting ``a significant portion of the
cost of training, as determined by the local board (or,
in the case of an employer in multiple local areas in
the State, as determined by the Governor), taking into
account the size of the employer and such other factors
as the local board determines to be appropriate''; and
(5) in paragraph (11) (as so redesignated)--
(A) in subparagraph (A)(ii)(II), by striking
``section 134(c)'' and inserting ``section
121(e)'';
(B) in subparagraph (B)(iii), by striking
``intensive services described in section
134(d)(3)'' and inserting ``work ready services
described in section 134(c)(3)(M) through
(U)'';
(C) in subparagraph (C), by striking ``or''
after the semicolon;
(D) in subparagraph (D), by striking the
period and inserting ``; or''; and
(E) by adding at the end the following:
``(E)(i) is the spouse of a member of the
Armed Forces on active duty for a period of
more than 30 days (as defined in section
101(d)(2) of title 10, United States Code) who
has experienced a loss of employment as a
direct result of relocation to accommodate a
permanent change in duty station of such
member; or
``(ii) is the spouse of a member of the Armed
Forces on active duty who meets the criteria
described in paragraph (12)(B).'';
(6) in paragraph (12)(A) (as redesignated)--
(A) by striking ``and'' after the semicolon
and inserting ``or'';
(B) by striking ``(A)'' and inserting
``(A)(i)''; and
(C) by adding at the end the following:
``(ii) is the dependent spouse of a member of
the Armed Forces on active duty for a period of
more than 30 days (as defined in section
101(d)(2) of title 10, United States Code)
whose family income is significantly reduced
because of a deployment (as defined in section
991(b) of title 10, United States Code, or
pursuant to paragraph (4) of such section), a
call or order to active duty pursuant to a
provision of law referred to in section
101(a)(13)(B) of title 10, United States Code,
a permanent change of station, or the service-
connected (as defined in section 101(16) of
title 38, United States Code) death or
disability of the member; and'';
(7) in paragraph (13) (as so redesignated), by
inserting ``or regional'' after ``local'' each place it
appears;
(8) in paragraph (14) (as so redesignated)--
(A) in subparagraph (A), by striking
``section 122(e)(3)'' and inserting ``section
122''; and
(B) by striking subparagraph (B), and
inserting the following:
``(B) work ready services, means a provider
who is identified or awarded a contract as
described in section 134(c)(3);''.
(9) in paragraph (25)--
(A) in subparagraph (B), by striking ``higher
of--'' and all that follows through clause (ii)
and inserting ``poverty line for an equivalent
period;''; and
(B) by redesignating subparagraphs (D)
through (F) as subparagraphs (E) through (G),
respectively, and inserting after subparagraph
(C) the following:
``(D) receives or is eligible to receive free
or reduced price lunch under the Richard B.
Russell National School Lunch Act (42 U.S.C.
1751 et seq.);'';
(10) in paragraph (32) by striking ``the Republic of
the Marshall Islands, the Federated States of
Micronesia,''; and
(11) by striking paragraph (33) and redesignating
paragraphs (34) through (53) as paragraphs (33) through
(52), respectively.
SEC. 412. PURPOSE.
Section 106 (29 U.S.C. 2811) is amended by inserting at the
end the following: ``It is also the purpose of this subtitle to
provide workforce investment activities in a manner that
promotes the informed choice of participants and actively
involves participants in obtaining training services that will
increase their skills and improve their employment outcomes.''.
SEC. 413. STATE WORKFORCE INVESTMENT BOARDS.
(a) Membership.--
(1) In general.--Section 111(b) (29 U.S.C. 2821(b))
is amended--
(A) by amending paragraph (1)(C) to read as
follows:
``(C) representatives appointed by the
Governor, who are--
``(i)(I) the lead State agency
officials with responsibility for the
programs and activities that are
described in section 121(b) and carried
out by one-stop partners;
``(II) in any case in which no lead
State agency official has
responsibility for such a program or
activity, a representative in the State
with expertise relating to such program
or activity; and
``(III) if not included under
subclause (I), the director of the
State unit, defined in section 7(8)(B)
of the Rehabilitation Act of 1973 (29
U.S.C. 705(8)(B)) except that in a
State that has established 2 or more
designated State units to administer
the vocational rehabilitation program,
the board representative shall be the
director of the designated State unit
that serves the most individuals with
disabilities in the State;
``(ii) the State agency officials
responsible for economic development;
``(iii) representatives of business
in the State who--
``(I) are owners of
businesses, chief executive or
operating officers of
businesses, and other business
executives or employers with
optimum policy making or hiring
authority, including members of
local boards described in
section 117(b)(2)(A)(i);
``(II) represent businesses
with employment opportunities
that reflect employment
opportunities in the State; and
``(III) are appointed from
among individuals nominated by
State business organizations
and business trade
associations;
``(iv) chief elected officials
(representing both cities and counties,
where appropriate);
``(v) one or more representatives of
labor organizations, who have been
nominated by State labor federations or
labor organizations within the State;
and
``(vi) such other representatives and
State agency officials as the Governor
may designate.''; and
(B) in paragraph (3), by striking ``paragraph
(1)(C)(i)'' and inserting ``paragraph
(1)(C)(iii)''.
(2) Conforming amendment.--Section 111(c) (29 U.S.C.
2811(c)) is amended by striking ``subsection
(b)(1)(C)(i)'' and inserting ``subsection
(b)(1)(C)(iii)''.
(b) Functions.--Section 111(d) (29 U.S.C. 2811(d)) is
amended--
(1) in paragraph (2), by striking ``section 134(c)''
and inserting ``section 121(e)'';
(2) by amending paragraph (3) to read as follows:
``(3) development and review of statewide policies
affecting the integrated provision of services through
the one-stop delivery system described in section 121
within the State, including--
``(A) the development of objective criteria
and procedures for, and the issuance of,
certifications of one-stop centers;
``(B) the criteria for the allocation of one-
stop center infrastructure funding under
section 121(h), and oversight of the use of
such funds;
``(C) policies relating to the appropriate
roles and contributions of one-stop partner
programs within the one-stop delivery system,
including approaches to facilitating equitable
and efficient cost allocation in the one-stop
delivery system, consistent with section 121;
``(D) strategies for providing effective
outreach to individuals and employers who could
benefit from services provided through the one-
stop delivery system; and
``(E) strategies for technology improvements
to facilitate access to services provided
through the one-stop delivery system, in remote
areas, and for individuals with disabilities,
which may be utilized throughout the State;
``(F) identification and dissemination of
information on best practices for effective
operation of one-stop centers, including use of
innovative business outreach, partnerships, and
service delivery strategies, including for
hard-to-serve populations; and
``(G) carrying out of such other matters as
may promote statewide objectives for, and
enhance the performance of, the one-stop
delivery system;'';
(3) in paragraph (4), by inserting ``and the
development of State criteria relating to the
appointment and certification of local boards under
section 117'' after ``section 116'';
(4) in paragraph (5), by striking ``128(b)(3)(B) and
133(b)(3)(B)'' and inserting ``sections 128(b)(3) and
133(b)(3)''; and
(5) in paragraph (8)--
(A) by striking ``employment statistics
system'' and inserting ``workforce and labor
market information system''; and
(B) by striking ``and'' after the semicolon;
(6) in paragraph (9)--
(A) by striking ``section 503'' and inserting
``section 136(i)''; and
(B) by striking the period and inserting ``;
and''; and
(7) by inserting the following new paragraph after
paragraph (9):
``(10) reviewing and providing comment on the State
plans of all one-stop partner programs, where
applicable, in order to provide effective strategic
leadership in the development of a high-quality,
comprehensive statewide workforce investment system.''.
(c) Elimination of Alternative Entity and Provision of
Authority To Hire Staff.--Section 111(e) (29 U.S.C. 2821(e)) is
amended to read as follows:
``(e) Authority To Hire Staff.--The State board may hire
staff to assist in carrying out the functions described in
subsection (d).''.
(d) Conflict of Interest.--Section 111(f)(1) (29 U.S.C.
2821(f)(1)) is amended by inserting ``or participate in action
taken'' after ``vote''.
(e) Sunshine Provision.--Section 111(g) (29 U.S.C. 2821(g))
is amended--
(1) by inserting ``, and modifications to the State
plan,'' after ``State plan'' ; and
(2) by inserting ``, and modifications to the State
plan'' after ``the plan''.
SEC. 414. STATE PLAN.
(a) Planning Cycle.--Section 112(a) (29 U.S.C. 2822(a)) is
amended by striking ``5-year strategy'' and inserting ``2-year
strategy''.
(b) Contents.--Section 112(b) (29 U.S.C. 2822(b)) is
amended--
(1) by amending paragraph (7) to read as follows:
``(7) a description of the State criteria for
determining the eligibility of training providers in
accordance with section 122, including how the State
will take into account the performance of providers and
whether the training programs relate to occupations
that are in demand;'';
(2) in paragraph (8)--
(A) in subparagraph (A)--
(i) in clause (ix), by striking
``and'' after the semicolon;
(ii) by adding the following new
clause after clause (x):
``(xi) programs authorized under
title II of the Social Security Act (42
U.S.C. 401 et seq.) (related to Federal
old-age, survivors, and disability
insurance benefits), title XVI of such
Act (42 U.S.C. 1381 et seq.) (relating
to supplemental security income), title
XIX of such Act (42 U.S.C. 1396 et
seq.) (relating to Medicaid), and title
XX of such Act (42 U.S.C. 1397 et seq.)
(relating to block grants to States for
social services), programs authorized
under title VII of the Rehabilitation
Act of 1973 (29 U.S.C. 796 et seq.),
and programs carried out by State
agencies relating to mental retardation
and developmental disabilities; and'';
(B) by amending subparagraph (B) to read as
follows:
``(B) a description of common data collection
and reporting processes used for the programs
and activities described in subparagraph (A)
that are one-stop partners, including
assurances that such processes utilize
quarterly wage records for performance measures
relating to entry into employment, retention in
employment, and average earnings that are
applicable to such programs or activities, or,
if such records are not being used, an
identification of the barriers to such use and
a description of how the State will address
such barriers within one year of the approval
of the plan;''; and
(3) in paragraph (11), by inserting ``, including
controls and procedures to ensure that the limitations
on the costs of administration are not exceeded''.
(4) in paragraph (12)(A), by striking ``sections
128(b)(3)(B) and 133(b)(3)(B)'' and inserting
``sections 128(b)(3) and 133(b)(3)'';
(5) in paragraph (14), by striking ``section 134(c)''
and inserting ``section 121(e)'';
(6) in paragraph (17)(A)--
(A) in clause (iii) by striking ``and'';
(B) by amending clause (iv) to read as
follows:
``(iv) how the State will serve the
employment and training needs of
dislocated workers (including displaced
homemakers), low income individuals
(including recipients of public
assistance), individuals with limited
English proficiency, homeless
individuals, individuals training for
nontraditional employment, and other
individuals with multiple barriers to
employment (including older
individuals); and''; and
(C) by inserting after clause (iv) the
following:
``(v) how the State will serve the
employment and training needs of
individuals with disabilities,
consistent with section 188 and
Executive Order 13217 (42 U.S.C. 12131
note; relating to community-based
alternatives for individuals with
disabilities) including the provision
of outreach, intake, assessments, and
service delivery, the development of
performance measures established under
section 136, the training of staff, and
other aspects of accessibility to
program services, consistent with
sections 504 and 508 of the
Rehabilitation Act of 1973; and'';
(7) in paragraph (17)(B), by striking ``to the extent
practicable'' and inserting ``in accordance with the
requirements of the Jobs for Veterans Act (PL 107-
288)'';
(8) in paragraph (18)(D), by striking ``youth
opportunity grants'' and inserting ``youth challenge
grants''; and
(9) by adding at the end the following new
paragraphs:
``(19) a description of the process and methodology
for determining one-stop partner program contributions
for the cost of the infrastructure of one-stop centers
under section 121(h)(1) and of the formula for
allocating such infrastructure funds to local areas
under section 121(h)(3);
``(20) a description of the strategies and programs
providing outreach to businesses, identifying workforce
needs of businesses in the State, and ensuring that
such needs will be met (including the needs of small
businesses), which may include--
``(A) implementing innovative programs and
strategies designed to meet the needs of all
businesses in the State, including small
businesses, which may include incumbent worker
training programs, sectoral and industry
cluster strategies, regional skills alliances,
career ladder programs, utilization of
effective business intermediaries, and other
business services and strategies that better
engage employers in workforce investment
activities and make the statewide workforce
investment system more relevant to the needs of
State and local businesses, consistent with the
objectives of this title; and
``(B) providing incentives and technical
assistance to assist local areas in more fully
engaging all employers, including small
employers, in local workforce investment
activities, to make the workforce investment
system more relevant to the needs of area
businesses, and to better coordinate workforce
investment, economic development, and
postsecondary education and training efforts to
contribute to the economic well-being of the
local area and region, as determined
appropriate by the local board;
``(21) a description of how the State will utilize
technology to facilitate access to services in remote
areas which may be utilized throughout the State;
``(22) a description of the State strategy and
assistance to be provided for encouraging regional
cooperation within the State and across State borders
as appropriate; and
``(23) a description of the actions that will be
taken by the State to foster communication and
partnerships with non-profit organizations (including
community, faith-based, and philanthropic
organizations) that provide employment-related,
training, and complementary services, in order to
enhance the quality and comprehensiveness of services
available to participants under this title.''.
(c) Modification to Plan.--Section 112(d) (29 U.S.C. 2822(d))
is amended by striking ``5-year period'' and inserting ``2-year
period''.
SEC. 415. LOCAL WORKFORCE INVESTMENT AREAS.
(a) Designation of Areas.--
(1) Considerations.--Section 116(a)(1)(B) (29 U.S.C.
2831(a)(1)(B)) is amended by adding at the end the
following clause:
``(vi) The extent to which such local
areas will promote efficiency in the
administration and provision of
services.''.
(2) Automatic designation.--Section 116(a)(2) (29
U.S.C. 2831(a)(2)) is amended to read as follows:
``(2) Automatic designation.--
``(A) In general.--Except as provided in
subparagraph (B) of this paragraph and
subsection (b), the Governor shall approve a
request for designation as a local area from--
``(i) any unit of general local
government with a population of 500,000
or more; and
``(ii) an area served by a rural
concentrated employment program grant
recipient that served as a service
delivery area or substate area under
the Job Training Partnership Act (29
U.S.C. 1501 et seq.),
for the 2-year period covered by a State plan
under section 112 if such request is made not
later than the date of the submission of the
State plan.
``(B) Continued designation based on
performance.--The Governor may deny a request
for designation submitted pursuant to
subparagraph (A) if such unit of government was
designated as a local area for the preceding 2-
year period covered by a State plan and the
Governor determines that such local area did
not perform successfully during such period.''.
(b) Single Local Area States.--Section 116(b) (29 U.S.C.
2831(b)) is amended to read as follows:
``(b) Single Local Area States.--
``(1) Continuation of previous designation.--
Notwithstanding subsection (a), the Governor of any
State that was a single local area for purposes of this
title as of July 1, 2007, may continue to designate the
State as a single local area for purposes of this title
if the Governor identifies the State as a local area in
the State plan under section 112(b)(5).
``(2) New designation.--The Governor of a State not
described in paragraph (1) may designate the State as a
single local area if, prior to the submission of the
State plan or modification to such plan so designating
the State, no local area meeting the requirements for
automatic designation under subsection (a) requests
such designation as a separate local area.
``(3) Effect on local plan.--In any case in which the
local area is the State pursuant to this subsection,
the local plan under section 118 shall be submitted to
the Secretary for approval as part of the State plan
under section 112.''.
(c) Regional Planning.--Section 116(c)(1) (29 U.S.C.
2831(c)(1)) is amended by adding at the end the following:
``The State may require the local boards for the designated
region to prepare a single regional plan that incorporates the
elements of the local plan under section 118 and that is
submitted and approved in lieu of separate local plans under
such section.''.
SEC. 416. LOCAL WORKFORCE INVESTMENT BOARDS.
(a) Composition.--Section 117(b)(2) (29 U.S.C. 2832(b)(2)) is
amended--
(1) in subparagraph (A)--
(A) in clause (i)(II), by inserting ``,
businesses that are in the leading industries
in the local area, and large and small
businesses in the local area'' after ``local
area'';
(B) by amending clause (ii) to read as
follows:
``(ii) a superintendent of the local
secondary school system and the
president or chief executive officer of
a postsecondary educational institution
serving the local area (including
community colleges, where such entities
exist);'';
(C) in clause (iii)--
(i) by striking ``representatives''
and inserting ``one or more
representatives''; and
(ii) by inserting ``or by labor
organizations in the local area'' after
``federations'';
(D) in clause (iv)--
(i) by striking ``representatives''
and inserting ``one or more
representatives''; and
(ii) by striking the semicolon and
inserting ``and faith-based
organizations; and'';
(E) in clause (v) by inserting ``one or
more'' before ``representatives''; and
(F) by striking clause (vi); and
(2) in subparagraph (B), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following subparagraph:
``(C) except for the individuals described in
subparagraph(A)(ii), shall not include any
individual who is employed by an entity
receiving funds for the provision of services
under chapters 4 or 5.''.
(b) Authority of Board Members.--Section 117(b)(3) (29 U.S.C.
2832(b) is amended--
(1) in the heading, by inserting ``AND
REPRESENTATION'' after ``MEMBERS''; and
(2) by adding at the end the following: ``The members
of the board shall represent diverse geographic
sections within the local area.''.
(c) Functions.--Section 117(d) (29 U.S.C. 2832(d)) is
amended--
(1) in paragraph (2)(B), by striking ``by awarding
grants'' and all that follows through ``youth
council'';
(2) by striking paragraph (2)(D) and inserting the
following:
``(D) Identification of eligible providers of
work ready services.--If the one-stop operator
does not provide the work ready services
described in section 134(c)(3)(M) through (U)
in the local area, the local board shall
identify eligible providers of such services in
the local area by awarding contracts.'';
(3) in paragraph (3)(B) by striking clause (ii) and
inserting the following:
``(ii) Staff.--The local board may
employ staff to assist in carrying out
the functions described in this
subsection.'';
(4) in paragraph (4) by inserting ``, and ensure the
appropriate use and management of the funds provided
under this title for such programs, activities, and
system'' after ``area'';
(5) in paragraph (6)--
(A) by striking ``employment statistics
system'' and inserting ``workforce and labor
market information system''; and
(B) by striking ``employment statistics
system'' and inserting ``workforce and labor
market information system'';
(6) by amending paragraph (8) to read as follows:
``(8) Convening, brokering, and leveraging.--The
local board shall support a comprehensive workforce
investment system for the local area and promote the
participation by private sector employers, service
providers, and other stakeholders in such system. The
Board shall ensure the effective provision, through the
system, of convening, brokering, and leveraging
activities, through intermediaries such as the one-stop
operator in the local area or through other
organizations, to assist such employers in meeting
hiring needs. Such activities may include--
``(A) convening private sector employers,
including small employers, labor, economic
development, and education leaders in the area
to align system missions and services, and to
identify and meet the employment, education,
and skills training needs of the local area in
support of regional and local economic growth
strategies;
``(B) providing leadership in the design and
implementation of a comprehensive workforce
development system that extends beyond those
programs authorized under title I of this Act
(including programs identified in section
121(b)) for the local area;
``(C) brokering relationships and service
arrangements across system stakeholders and
partners; and
``(D) leveraging resources other than those
provided under title I of this Act, including
public and private resources, to significantly
expand resources available for employment and
training activities identified as necessary in
the local area.'';
(7) by adding at the end the following:
``(9) Technology improvements.--The local board shall
develop strategies for technology improvements to
facilitate access to services, in remote areas, for
services authorized under this subtitle and carried out
in the local area.''.
(d) Limitations.--Section 117(f) (29 U.S.C. 2832(f)) is
amended by striking paragraph (2) and inserting the following:
``(2) Work ready services, designation, or
certification as one-stop operators.--A local board may
provide work ready services described in section
(c)(d)(2) through a one-stop delivery system described
in section 121 or be designated or certified as a one-
stop operator only with the agreement of the chief
elected official and the Governor.''.
(e) Conflict of Interest.--Section 117(g)(1) (29 U.S.C.
2832(g)(1)) is amended by inserting ``or participate in action
taken'' after ``vote''.
(f) Authority To Establish Councils and Elimination of
Requirement for Youth Councils.--Section 117(h) (29 U.S.C.
2832(h)) is amended to read as follows:
``(h) Establishment of Councils.--The local board may
establish councils to provide information and advice to assist
the local board in carrying out activities under this title.
Such councils may include a council composed of one-stop
partners to advise the local board on the operation of the one-
stop delivery system, a youth council composed of experts and
stakeholders in youth programs to advise the local board on
activities for youth, and such other councils as the local
board determines are appropriate.''.
(g) Repeal of Alternative Entity Provision.--Section 117 (29
U.S.C. 2832) is further amended by striking subsection (i).
SEC. 417. LOCAL PLAN.
(a) Planning Cycle.--Section 118(a) (29 U.S.C. 2833(a)) is
amended by striking ``5-year'' and inserting ``2-year''.
(b) Contents.--Section 118(b) (29 U.S.C. 2833(b)) is
amended--
(1) by amending paragraph (2) to read as follows:
``(2) a description of the one-stop delivery system
to be established or designated in the local area,
including a description of how the local board will
ensure the continuous improvement of eligible providers
of services through the system and ensure that such
providers meet the employment needs of local employers
and participants;'';
(2) in paragraph (4)--
(A) by striking ``and dislocated worker'';
and
(B) by inserting before the semicolon ``,
including a description of how the local area
will implement the requirements of section
134(c)(4)(G) relating to ensuring that training
services are linked to occupations that are in
demand'';
(3) in paragraph (5), by striking ``statewide rapid
response activities'' and inserting ``statewide
activities'';
(4) in paragraph (9), by striking ``; and'' and
inserting a semicolon; and
(5) by redesignating paragraph (10) as paragraph (13)
and inserting after paragraph (9) the following:
``(10) a description of the strategies and services
that will be initiated in the local area to more fully
engage all employers, including small employers, in
workforce investment activities, to make the workforce
investment system more relevant to the needs of area
businesses, and to better coordinate workforce
investment and economic development efforts, which may
include the implementation of innovative initiatives
such as incumbent worker training programs, sectoral
and industry cluster strategies, regional skills
alliance initiatives, career ladder programs,
utilization of effective business intermediaries, and
other business services and strategies designed to meet
the needs of area employers and contribute to the
economic well-being of the local area, as determined
appropriate by the local board, consistent with the
objectives of this title;
``(11) a description of how the local board will
facilitate access to services provided through the one-
stop delivery system involved in remote areas,
including facilitating access through the use of
technology;
``(12) how the local area will serve the employment
and training needs of individuals with disabilities,
consistent with section 188 and Executive Order 13217
(42 U.S.C. 12131 note) including the provision of
outreach, intake, assessments, and service delivery,
the development of performance measures, the training
of staff, and other aspects of accessibility to program
services, consistent with sections 504 and 508 of the
Rehabilitation Act of 1973; and''.
SEC. 418. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEMS.
(a) One-Stop Partners.--
(1) Required partners.--Section 121(b)(1) (29 U.S.C.
2841(b)(1)) is amended--
(A) by striking subparagraph (A) and
inserting the following:
``(A) Roles and responsibilities of one-stop
partners.--Each entity that carries out a
program or activities described in subparagraph
(B) shall--
``(i) provide access through the one-
stop delivery system to the programs
and activities carried out by the
entity, including making the work ready
services described in section 134(d)(2)
that are applicable to the program of
the entity available at the one-stop
centers (in addition to any other
appropriate locations);
``(ii) use a portion of the funds
available to the program of the entity
to maintain the one-stop delivery
system, including payment of the
infrastructure costs of one-stop
centers in accordance with subsection
(h);
``(iii) enter into a local memorandum
of understanding with the local board
relating to the operation of the one-
stop system that meets the requirements
of subsection (c);
``(iv) participate in the operation
of the one-stop system consistent with
the terms of the memorandum of
understanding, the requirements of this
title, and the requirements of the
Federal laws authorizing the programs
carried out by the entity; and
``(v) provide representation on the
State board to the extent provided
under section 111.'';
(B) in subparagraph (B)--
(i) by striking clauses (ii) and (v);
(ii) by redesignating clauses (iii)
and (iv) as clauses (ii) and (iii),
respectively, and by redesignating
clauses (vi) through (xii) as clauses
(iv) through (x), respectively;
(iii) in clause (ix) (as so
redesignated), by striking ``and'' at
the end;
(iv) in clause (x) (as so
redesignated), by striking the period
and inserting ``; and''; and
(v) by inserting after clause (x)(as
so redesignated) the following:
``(xi) programs authorized under part
A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.), subject to
subparagraph (C); and
``(xii) programs authorized under
section 6(d)(4) of the Food Stamp Act
of 1977 (7 U.S.C. 2015(d)(4)), subject
to subparagraph (C).''; and
(C) by adding after subparagraph (B) the
following:
``(C) Determination by the governor.--The
program referred to in clauses (xi) and (xii)
of subparagraph (B) shall be included as a
required partner for purposes of this title in
a State unless the Governor of the State
notifies the Secretary and the Secretary of
Health and Human Services (in the case of the
program referred to in clause (xi) of
subparagraph (B)), or the Secretary and the
Secretary of Agriculture (in the case of the
program referred to in clause (xii) of
subparagraph (B)) in writing of a determination
by the Governor not to include such programs as
required partners for purposes of this title in
the State.''.
(2) Additional partners.--Section 121(b)(2)(B) (29
U.S.C. 2841(b)(2)(B)) is amended to read as follows:
``(B) Programs.--The programs referred to in
subparagraph (A) may include--
``(i) employment and training
programs administered by the Social
Security Administration, including the
Ticket to Work program (established by
Public Law 106-170);
``(ii) employment and training
programs carried out by the Small
Business Administration;
``(iii) programs under part D of
title IV of the Social Security Act (42
U.S.C. 451 et seq.) (relating to child
support enforcement);
``(iv) employment, training, and
literacy services carried out by public
libraries;
``(v) programs carried out in the
local area for individuals with
disabilities, including programs
carried out by State agencies relating
to mental health, mental retardation,
and developmental disabilities, State
Medicaid agencies, State Independent
Living Councils, and Independent Living
Centers;
``(vi) programs authorized under the
National and Community Service Act of
1990 (42 U.S.C. 1250 et seq.);
``(vii) cooperative extension
programs carried out by the Department
of Agriculture; and
``(viii) other appropriate Federal,
State, or local programs, including
programs in the private sector.''.
(b) Local Memorandum of Understanding.--Section 121(c)(2)(A)
(29 U.S.C. 2841(c)(2)(A)) is amended to read as follows:
``(A) provisions describing--
``(i) the services to be provided
through the one-stop delivery system
consistent with the requirements of
this section, including the manner in
which the services will be coordinated
through such system;
``(ii) how the costs of such services
and the operating costs of such system
will be funded, through cash and in-
kind contributions, to provide a stable
and equitable funding stream for
ongoing one-stop system operations,
including the funding of the
infrastructure costs of one-stop
centers in accordance with subsection
(h);
``(iii) methods of referral of
individuals between the one-stop
operator and the one-stop partners for
appropriate services and activities;
and
``(iv) the duration of the memorandum
of understanding and the procedures for
amending the memorandum during the term
of the memorandum, and assurances that
such memorandum shall be reviewed not
less than once every 2-year period to
ensure appropriate funding and delivery
of services; and''.
(c) Provision of Services.--Subtitle B of title I is
amended--
(1) in section 121(d)(2), by striking ``section
134(c)'' and inserting ``subsection (e)'';
(2) by striking subsection (e) of section 121;
(3) by moving subsection (c) of section 134 from
section 134, redesignating such subsection as
subsection (e), and inserting such subsection (as so
redesignated) after subsection (d) of section 121; and
(4) by amending subsection (e) of section 121 (as
moved and redesignated by paragraph (3))--
(A) in paragraph (1)(A), by striking ``core
services described in subsection (d)(2)'' and
inserting ``work ready services described in
section 134(c)(2)'';
(B) in paragraph (1)(B)--
(i) by striking ``intensive
services'';
(ii) by striking ``paragraphs (3) and
(4) of subsection (d)'' and inserting
``section 134(c)(4)'';
(iii) by striking ``individual
training accounts'' and inserting
``career enhancement accounts''; and
(iv) by striking ``subsection
(d)(4)(G)'' and inserting ``section
134(c)(4)(G)'';
(C) in paragraph (1)(C), by striking
``subsection (e)'' and inserting ``section
134(d)'';
(D) in paragraph (1)(D), by striking
``section 121(b)'' and inserting ``subsection
(b)'';
(E) by amending paragraph (1)(E) to read as
follows:
``(E) shall provide access to the information
described in section 15(e) of the Wagner-Peyser
Act (29 U.S.C. 49l-2(e)).''; and
(F) in paragraph (2)(B)(ii)(II), by striking
``core services'' and inserting ``work ready
services''.
(d) Certification and Funding of One-Stop Centers.--Section
121 (as amended by subsections (b) and (c)) is further amended
by adding at the end the following new subsections:
``(g) Certification of One-Stop Centers.--
``(1) In general.--
``(A) In general.--The State board shall
establish objective procedures and criteria for
periodically certifying one-stop centers for
the purpose of awarding the one-stop
infrastructure funding described in subsection
(h).
``(B) Criteria.--The criteria for
certification under this subsection shall
include minimum standards relating to the scope
and degree of service integration achieved by
the centers involving the programs provided by
the one-stop partners, and how the centers
ensure that such providers meet the employment
needs of local employers and participants.
``(C) Effect of certification.--One-stop
centers certified under this subsection shall
be eligible to receive the infrastructure
grants authorized under subsection (h).
``(2) Local boards.--Consistent with the criteria
developed by the State, the local board may develop
additional criteria of higher standards to respond to
local labor market and demographic conditions and
trends.
``(h) One-Stop Infrastructure Funding.--
``(1) Partner contributions.--
``(A) Provision of funds.--Notwithstanding
any other provision of law, as determined under
subparagraph (B), a portion of the Federal
funds provided to the State and areas within
the State under the Federal laws authorizing
the one-stop partner programs described in
subsection (b)(1)(B) and participating
additional partner programs described in
(b)(2)(B) for a fiscal year shall be provided
to the Governor by such programs to carry out
this subsection.
``(B) Determination of governor.--
``(i) In general.--Subject to
subparagraph (C), the Governor, in
consultation with the State board,
shall determine the portion of funds to
be provided under subparagraph (A) by
each one-stop partner and in making
such determination shall consider the
proportionate use of the one-stop
centers by each partner, the costs of
administration for purposes not related
to one-stop centers for each partner,
and other relevant factors described in
paragraph (3).
``(ii) Special rule.--In those States
where the State constitution places
policy-making authority that is
independent of the authority of the
Governor in an entity or official with
respect to the funds provided for adult
education and literacy activities
authorized under title II of this Act
and for postsecondary career education
activities authorized under the Carl D.
Perkins Career and Technical Education
Act, the determination described in
clause (i) with respect to such
programs shall be made by the Governor
with the appropriate entity or official
with such independent policy-making
authority.
``(iii) Appeal by one-stop
partners.--The Governor shall establish
a procedure for the one-stop partner
administering a program described in
subsection (b) to appeal a
determination regarding the portion of
funds to be contributed under this
paragraph on the basis that such
determination is inconsistent with the
criteria described in the State plan or
with the requirements of this
paragraph. Such procedure shall ensure
prompt resolution of the appeal.
``(C) Limitations.--
``(i) Provision from administrative
funds.--The funds provided under this
paragraph by each one-stop partner
shall be provided only from funds
available for the costs of
administration under the program
administered by such partner, and shall
be subject to the limitations with
respect to the portion of funds under
such programs that may be used for
administration.
``(ii) Federal direct spending
programs.--Programs that are Federal
direct spending under section 250(c)(8)
of the Balanced Budget and Emergency
Deficit Control Act of 1985 (2 U.S.C.
900(c)(8)) shall not, for purposes of
this paragraph, be required to provide
an amount in excess of the amount
determined to be equivalent to the
proportionate use of the one-stop
centers by such programs in the State.
``(iii) Native american programs.--
Native American programs established
under section 166 shall not be subject
to the provisions of this subsection.
The method for determining the
appropriate portion of funds to be
provided by such Native American
programs to pay for the costs of
infrastructure of a one-stop center
certified under subsection (g) shall be
determined as part of the development
of the memorandum of understanding
under subsection (c) for the one-stop
center and shall be stated in the
memorandum.
``(2) Allocation by governor.--From the funds
provided under paragraph (1), the Governor shall
allocate funds to local areas in accordance with the
formula established under paragraph (3) for the
purposes of assisting in paying the costs of the
infrastructure of One-Stop centers certified under
subsection (g).
``(3) Allocation formula.--The State board shall
develop a formula to be used by the Governor to
allocate the funds described in paragraph (1). The
formula shall include such factors as the State board
determines are appropriate, which may include factors
such as the number of centers in the local area that
have been certified, the population served by such
centers, and the performance of such centers.
``(4) Costs of infrastructure.--For purposes of this
subsection, the term `costs of infrastructure' means
the nonpersonnel costs that are necessary for the
general operation of a one-stop center, including the
rental costs of the facilities, the costs of utilities
and maintenance, and equipment (including adaptive
technology for individuals with disabilities).
``(i) Other Funds.--
``(1) In general.--In addition to the funds provided
to carry out subsection (h), a portion of funds made
available under Federal law authorizing the one-stop
partner programs described in subsection (b)(1)(B) and
participating partner programs described in subsection
(b)(2)(B), or the noncash resources available under
such programs shall be used to pay the costs relating
to the operation of the one-stop delivery system that
are not paid for from the funds provided under
subsection (h), to the extent not inconsistent with the
Federal law involved including--
``(A) infrastructure costs that are in excess
of the funds provided under subsection (h);
``(B) common costs that are in addition to
the costs of infrastructure; and
``(C) the costs of the provision of work
ready services applicable to each program.
``(2) Determination and guidance.--The method for
determining the appropriate portion of funds and
noncash resources to be provided by each program under
paragraph (1) shall be determined as part of the
memorandum of understanding under subsection (c). The
State board shall provide guidance to facilitate the
determination of appropriate allocation of the funds
and noncash resources in local areas.''.
SEC. 419. ELIGIBLE PROVIDERS OF TRAINING SERVICES.
Section 122 (29 U.S.C. 2842) is amended to read as follows:
``SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.
``(a) Eligibility.--
``(1) In general.--The Governor, after consultation
with the State board, shall establish criteria and
procedures regarding the eligibility of providers of
training services described in section 134(c)(4) to
receive funds provided under section 133(b) for the
provision of such training services.
``(2) Providers.--Subject to the provisions of this
section, to be eligible to receive the funds provided
under section 133(b) for the provision of training
services, the provider shall be--
``(A) a postsecondary educational institution
that--
``(i) is eligible to receive Federal
funds under title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070
et seq.); and
``(ii) provides a program that leads
to an associate degree, baccalaureate
degree, or industry-recognized
certification;
``(B) an entity that carries out programs
under the Act of August 16, 1937 (commonly
known as the `National Apprenticeship Act'; 50
Stat. 664, chapter 663; 29 U.S.C. 50 et seq.);
or
``(C) another public or private provider of a
program of training services.
``(3) Inclusion in list of eligible providers.--A
provider described in subparagraph (A) or (C) of
paragraph (2) shall comply with the criteria and
procedures established under this section to be
included on the list of eligible providers of training
services described in subsection (d)(1). A provider
described in paragraph (2)(B) shall be included on the
list of eligible providers of training services
described in subsection (d)(1) for so long as the
provider remains certified by the Department of Labor
to carry out the programs described in paragraph
(2)(B).
``(b) Criteria.--
``(1) In general.--The criteria established pursuant
to subsection (a) shall take into account--
``(A) the performance of providers of
training services with respect to the
performance measures described in section 136
and other matters for which information is
required under paragraph (2) and other
appropriate measures of performance outcomes
for those participants receiving training
services under this subtitle (taking into
consideration the characteristics of the
population served and relevant economic
conditions);
``(B) whether the training programs of such
providers relate to occupations that are in
demand,
``(C) the need to ensure access to training
services throughout the State, including any
rural areas;
``(D) the ability of providers to offer
programs that lead to a degree or an industry-
recognized certification, certificate, or
mastery;
``(E) the information such providers are
required to report to State agencies with
respect to other Federal and State programs
(other than the program carried out under this
subtitle), including one-stop partner programs;
and
``(F) such other factors as the Governor
determines are appropriate to ensure the
quality of services provided, the
accountability of providers, that the one-stop
centers will ensure that such providers meet
the needs of local employers and participants,
and the informed choice of participants under
chapter 5.
``(2) Information.--The criteria established by the
Governor shall require that a provider of training
services submit appropriate, accurate, and timely
information to the State for purposes of carrying out
subsection (d), with respect to participants receiving
training services under this subtitle in the applicable
program, including--
``(A) information on degrees and industry-
recognized certifications received by such
participants;
``(B) information on costs of attendance for
such participants;
``(C) information on the program completion
rate for such participants; and
``(D) information on the performance of the
provider with respect to the performance
measures described in section 136 for such
participants (taking into consideration the
characteristics of the population served and
relevant economic conditions), which may
include information specifying the percentage
of such participants who entered unsubsidized
employment in an occupation related to the
program.
``(3) Renewal.--The criteria established by the
Governor shall also provide for biennial review and
renewal of eligibility under this section for providers
of training services.
``(4) Local criteria.--A local board in the State may
establish criteria in addition to the criteria
established by the Governor, or may require higher
levels of performance than required under the criteria
established by the Governor, for purposes of
determining the eligibility of providers of training
services to receive funds described in subsection (a)
to provide the services in the local area involved.
``(5) Limitation.--In carrying out the requirements
of this subsection, no personally identifiable
information regarding a student, including Social
Security number, student identification number, or
other identifier, may be disclosed without the prior
written consent of the parent or eligible student in
compliance with section 444 of the General Education
Provisions Act (20 U.S.C. 1232g).
``(c) Procedures.--The procedures established under
subsection (a) shall identify the application process for a
provider of training services to become eligible to receive
funds under section 133(b) for the provision of training
services, and identify the respective roles of the State and
local areas in receiving and reviewing applications and in
making determinations of eligibility based on the criteria
established under this section. The procedures shall also
establish a process for a provider of training services to
appeal a denial or termination of eligibility under this
section that includes an opportunity for a hearing and
prescribes appropriate time limits to ensure prompt resolution
of the appeal.
``(d) Information To Assist Participants in Choosing
Providers.--In order to facilitate and assist participants
under chapter 5 in choosing providers of training services, the
Governor shall ensure that an appropriate list or lists of
providers determined eligible under this section in the State,
including information regarding the occupations in demand that
relate to the training programs of such providers, is provided
to the local boards in the State to be made available to such
participants and to members of the public through the one-stop
delivery system in the State. The accompanying information
shall consist of information provided by providers described in
subparagraphs (A) and (C) of subsection (a)(2) in accordance
with subsection (b) (including information on receipt of
degrees and industry-recognized certifications, and costs of
attendance, for participants receiving training services under
this subtitle in applicable programs) and such other
information as the Secretary determines is appropriate. The
list and the accompanying information shall be made available
to such participants and to members of the public through the
one-stop delivery system in the State.
``(e) Enforcement.--
``(1) In general.--The criteria and procedures
established under this section shall provide the
following:
``(A) Intentionally supplying inaccurate
information.--Upon a determination, by an
individual or entity specified in the criteria
or procedures, that a provider of training
services, or individual providing information
on behalf of the provider, intentionally
supplied inaccurate information under this
section, the eligibility of such provider to
receive funds under chapter 5 shall be
terminated for a period of time that is not
less than 2 years.
``(B) Substantial violations.--Upon a
determination, by an individual or entity
specified in the criteria or procedures, that a
provider of training services substantially
violated any requirement under this title, the
eligibility of such provider to receive funds
under the program involved may be terminated,
or other appropriate action may be taken.
``(C) Repayment.--A provider of training
services whose eligibility is terminated under
subparagraph (A) or (B) shall be liable for the
repayment of funds received under chapter 5
during a period of noncompliance described in
such subparagraph.
``(2) Construction.--Paragraph (1) shall be construed
to provide remedies and penalties that supplement, but
do not supplant, other civil and criminal remedies and
penalties.
``(f) Agreements With Other States.--States may enter into
agreements, on a reciprocal basis, to permit eligible providers
of training services to accept career enhancement accounts
provided in another State.
``(g) Recommendations.--In developing the criteria,
procedures, and information required under this section, the
Governor shall solicit and take into consideration the
recommendations of local boards and providers of training
services within the State.
``(h) Opportunity To Submit Comments.--During the development
of the criteria, procedures, requirements for information, and
the list of eligible providers required under this section, the
Governor shall provide an opportunity for interested members of
the public, including representatives of business and labor
organizations, to submit comments regarding such criteria,
procedures, and information.
``(i) On-the-Job Training or Customized Training Exception.--
``(1) In general.--Providers of on-the-job training
or customized training shall not be subject to the
requirements of subsections (a) through (g).
``(2) Collection and dissemination of information.--A
one-stop operator in a local area shall collect such
performance information from on-the-job training and
customized training providers as the Governor may
require, determine whether the providers meet such
performance criteria as the Governor may require, and
disseminate information identifying providers that meet
the criteria as eligible providers, and the performance
information, through the one-stop delivery system.
Providers determined to meet the criteria shall be
considered to be identified as eligible providers of
training services.''.
SEC. 420. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.
(a) Eligible Providers of Youth Activities.--Section 123 (29
U.S.C. 2843) is amended to read as follows:
``SEC. 123. ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.
``(a) In General.--From the funds allocated under section
128(b) to a local area, the local board for such area shall
award grants or contracts on a competitive basis to providers
of youth activities identified based on the criteria in the
State plan and shall conduct oversight with respect to such
providers.
``(b) Exceptions.--A local board may award grants or
contracts on a sole-source basis if such board determines there
are an insufficient number of eligible providers of training
services in the local area involved (such as rural areas) for
grants to be awarded on a competitive basis under subsection
(a).''.
(b) Clerical Amendment.--The table of contents in section
1(b) is amended by amending the item related to section 123 to
read as follows:
``Sec. 123. Eligible providers of youth activities.''.
SEC. 421. YOUTH ACTIVITIES.
(a) State Allotments.--Section 127 (29 U.S.C. 2852(a)) is
amended--
(1) in subsection (a)(1), by striking ``opportunity''
and inserting ``challenge''; and
(2) by striking subsection (b) and inserting the
following:
``(b) Allotment Among States.--
``(1) Youth activities.--
``(A) Youth challenge grants.--
``(i) Reservation of funds.--Of the
amount appropriated under section
137(a) for each fiscal year, the
Secretary shall reserve 25 percent to
provide youth challenge grants under
section 169.
``(ii) Limitation.--Notwithstanding
clause (i), if the amount appropriated
under section 137(a) for a fiscal year
exceeds $1,000,000,000, the Secretary
shall reserve $250,000,000 to provide
youth challenge grants under section
169.
``(B) Outlying areas and native americans.--
``(i) In general.--After determining
the amount to be reserved under
subparagraph (A), of the remainder of
the amount appropriated under section
137(a) for each fiscal year the
Secretary shall--
``(I) reserve not more than
\1/4\ of one percent of such
amount to provide assistance to
the outlying areas to carry out
youth activities and statewide
workforce investment
activities; and
``(II) reserve not more than
1 and \1/2\ percent of such
amount to provide youth
activities under section 166
(relating to Native Americans).
``(ii) Restriction.--The Republic of
Palau shall cease to be eligible to
receive funding under this subparagraph
upon entering into an agreement for
extension of United States educational
assistance under the Compact of Free
Association (approved by the Compact of
Free Association Amendments Act of 2003
(Public Law 108-188)) after the date of
enactment of the Workforce Investment
Improvement Act of 2007.
``(C) States.--
``(i) In general.--Of the remainder
of the amount appropriated under
section 137(a) for a fiscal year that
is available after determining the
amounts to be reserved under
subparagraphs (A) and (B), the
Secretary shall allot--
``(I) the amount of the
remainder that is less than or
equal to the total amount that
was allotted to States for
fiscal year 2007 under section
127(b)(1)(C) of this Act (as in
effect on the day before the
date of enactment of the
Workforce Investment
Improvement Act of 2007) in
accordance with the
requirements of such section
127(b)(1)(C); and
``(II) the amount of the
remainder, if any, in excess of
the amount referred to in
subclause (I) in accordance
with clause (ii).
``(ii) Formulas for excess funds.--
Subject to clauses (iii) and (iv), of
the amounts described in clause
(i)(II)--
``(I) 33\1/3\ percent shall
be allotted on the basis of the
relative number of individuals
in the civilian labor force who
are ages 16 through 19 in each
State, compared to the total
number of individuals in the
civilian labor force who are
ages 16 through 19 in all
States;
``(II) 33\1/3\ percent shall
be allotted on the basis of the
relative number of unemployed
individuals in each State,
compared to the total number of
unemployed individuals in all
States; and
``(III) 33\1/3\ percent shall
be allotted on the basis of the
relative number of
disadvantaged youth who are
ages 16 through 21 in each
State, compared to the total
number of disadvantaged youth
who are ages 16 through 21 in
all States.
``(iii) Minimum and maximum
percentages.--The Secretary shall
ensure that no State shall receive an
allotment for a fiscal year that is
less than 90 percent or greater than
130 percent of the allotment percentage
of that State for the preceding fiscal
year.
``(iv) Small state minimum
allotment.--Subject to clause (iii),
the Secretary shall ensure that no
State shall receive an allotment under
this paragraph that is less than \3/10\
of 1 percent of the amount available
under subparagraph (A).
``(2) Definitions.--For the purposes of paragraph
(1), the following definitions apply:
``(A) Allotment percentage.--The term
`allotment percentage', used with respect to
fiscal year 2008 or a subsequent fiscal year,
means a percentage of the remainder described
in paragraph (1)(C)(i) that is received through
an allotment made under this subsection for the
fiscal year. The term, with respect to fiscal
year 2007, means the percentage of the amounts
allotted to States under this chapter (as in
effect on the day before the date of enactment
of the Workforce Investment Improvement Act of
2007) that is received by the State involved
for fiscal year 2007.
``(B) Disadvantaged youth.--The term
`disadvantaged youth' means an individual who
is age 16 through 21 who received an income, or
is a member of a family that received a total
family income, that, in relation to family
size, does not exceed the poverty line.
``(3) Special rule.--For purposes of the formulas
specified in paragraph (1)(C), the Secretary shall, as
appropriate and to the extent practicable, exclude
college students and members of the Armed Forces from
the determination of the number of disadvantaged
youth.'';
(3) in subsection (c)--
(A) by amending paragraph (2) to read as
follows:
``(2) Amount.--The amount available for reallotment
for a program year is equal to the amount by which the
unexpended balance at the end of the program year prior
to the program year for which the determination is made
exceeds 30 percent of the total amount of funds
available to the State under this section during such
prior program year (including amounts allotted to the
State in all prior program years that remained
available). For purposes of this paragraph, the
expended balance is the amount that is the difference
between--
``(A) the total amount of funds available to
the State under this section during the program
year prior to the program year for which the
determination is made (including amounts
allotted to the State in all prior program
years that remained available); and
``(B) the accrued expenditures during such
prior program year.'';
(B) in paragraph (3)--
(i) by striking ``for the prior
program year'' and inserting ``for the
program year in which the determination
is made''; and
(ii) by striking ``such prior program
year'' and inserting ``such program
year'';
(C) by amending paragraph (4) to read as
follows:
``(4) Eligibility.--For purposes of this subsection,
an eligible State means a State which does not have an
amount available for reallotment under paragraph (2)
for the program year for which the determination under
paragraph (2) is made.''; and
(D) in paragraph (5), by striking
``obligation'' and inserting ``accrued
expenditure''.
(b) Within State Allocations.--
(1) Reservation for statewide activities.--Section
128(a) is amended to read as follows:
``(a) Reservation for Statewide Activities.--
``(1) In general.--The Governor of a State shall
reserve not more than 10 percent of the amount allotted
to the State under section 127(a)(1)(C) for a fiscal
year for statewide activities.
``(2) Use of funds.--Regardless of whether the
amounts are allotted under section 127(a)(1)(C) and
reserved under paragraph (1) or allotted under section
132 and reserved under section 133(a), the Governor may
use the reserved amounts to carry out statewide youth
activities under section 129(b) or statewide employment
and training activities under section 133.''.
(2) Within state allocations.--Section 128(b) is
amended to read as follows:
``(b) Within State Allocation.--
``(1) In general.--Of the amounts allotted to the
State under section 127(a)(1)(C) and not reserved under
subsection (a)(1)--
``(A) not less than 80 percent of such
amounts shall be allocated by the Governor to
local areas in accordance with paragraph (2);
and
``(B) not more than 20 percent of such
amounts shall be allocated by the Governor to
local areas in accordance with paragraph (3).
``(2) Established formula.--
``(A) In general.--Of the amounts described
in paragraph (1)(A), the Governor shall
allocate--
``(i) 33\1/3\ percent shall be
allotted on the basis of the relative
number of individuals in the civilian
labor force who are ages 16 through 19
in each local area, compared to the
total number of individuals in the
civilian labor force who are ages 16
through 19 in all local areas in the
State;
``(ii) 33\1/3\ percent shall be
allotted on the basis of the relative
number of unemployed individuals in
each local area, compared to the total
number of unemployed individuals in all
local areas in the State; and
``(iii) 33\1/3\ percent on the basis
of the relative number of disadvantaged
youth who are ages 16 through 21 in
each local area, compared to the total
number of disadvantaged youth who are
ages 16 through 21 in all local areas
in the State.
``(B) Minimum and maximum percentages.--The
Governor shall ensure that no local area shall
receive an allocation for a fiscal year under
this paragraph that is less than 90 percent or
greater than 130 percent of the allocation
percentage of the local area for the preceding
fiscal year.
``(C) Definitions.--
``(i) Allocation percentage.--For
purposes of this paragraph, the term
`allocation percentage', used with
respect to fiscal year 2008 or a
subsequent fiscal year, means a
percentage of the amount described in
paragraph(1)(A) that is received
through an allocation made under this
paragraph for the fiscal year. The
term, with respect to fiscal year 2007,
means the percentage of the amounts
allocated to local areas under this
chapter (as in effect on the day before
the date of enactment of the Workforce
Investment Improvement Act of 2007)
that is received by the local area
involved for fiscal year 2007.
``(ii) Disadvantaged youth.--The term
`disadvantaged youth' means an
individual who is age 16 through 21 who
received an income, or is a member of a
family that received a total family
income, that, in relation to family
size, does not exceed the poverty line.
``(3) Youth discretionary allocation.--The Governor
shall allocate to local areas the amounts described in
paragraph (1)(B) in accordance with such demographic
and economic factors as the Governor, after
consultation with the State board and local boards,
determines are appropriate.
``(4) Local administrative cost limit.--
``(A) In general.--Of the amounts allocated
to a local area under this subsection for a
fiscal year, not more than 10 percent of the
amount may be used by the local boards for the
administrative costs of carrying out local
workforce investment activities under this
chapter or chapter 5.
``(B) Use of funds.--Funds made available for
administrative costs under subparagraph (A) may
be used for the administrative costs of any of
the local workforce investment activities
described in this chapter or chapter 5,
regardless of whether the funds were allocated
under this subsection or section 133(b).''.
(3) Reallocation.--Section 128(c) (29 U.S.C. 2853(c))
is amended--
(A) in paragraph (1), by striking ``paragraph
(2)(A) or (3) of'';
(B) by amending paragraph (2) to read as
follows:
``(2) Amount.--The amount available for reallocation
for a program year is equal to the amount by which the
unexpended balance at the end of the program year prior
to the program year for which the determination is made
exceeds 30 percent of the total amount of funds
available to the local area under this section during
such prior program year, (including amounts allotted to
the local area in prior program years that remain
available). For purposes of this paragraph, the
unexpended balance is the amount that is the difference
between--
``(A) the total amount of funds available to
the local area under this section during the
program year prior to the program year for
which the determination is made (including
amounts allocated to the local area in all
prior program years that remained available);
and
``(B) the accrued expenditures during such
prior program year.'';
(C) in paragraph (3)--
(i) by striking ``subsection (b)(3)''
the first two places it appears and
inserting ``subsection (b)'';
(ii) by striking ``the prior program
year'' and inserting ``the program year
in which the determination is made'';
(iii) by striking ``such prior
program year'' and inserting ``such
program year''; and
(iv) by striking the last sentence;
and
(D) by amending paragraph (4) to read as
follows:
``(4) Eligibility.--For purposes of this subsection,
an eligible local area means a local area which does
not have an amount available for reallocation under
paragraph (2) for the program year for which the
determination under paragraph (2) is made.''.
(c) Youth Participant Eligibility.--Section 129(a) (29 U.S.C.
2854(a)) is amended to read as follows:
``(a) Youth Participant Eligibility.--
``(1) In general.--The individuals participating in
activities carried out under this chapter by a local
area during any program year shall be individuals who,
at the time the eligibility determination is made,
are--
``(A) not younger than age 16 or older than
age 24; and
``(B) one or more of the following:
``(i) school dropouts;
``(ii) recipients of a secondary
school diploma, General Educational
Development credential (GED), or other
State-recognized equivalent (including
recognized alternative standards for
individuals with disabilities) who are
deficient in basic skills and not
attending any school;
``(iii) court-involved youth
attending an alternative school;
``(iv) youth in foster care or who
have been in foster care; or
``(v) in school youth who are low-
income individuals and one or more of
the following:
``(I) Deficient in literacy
skills.
``(II) Homeless, runaway, or
foster children.
``(III) Pregnant or parents.
``(IV) Offenders.
``(V) Individuals who require
additional assistance to
complete an educational
program, or to secure and hold
employment.
``(2) Priority for school dropouts.--A priority in
the provision of services under this chapter shall be
given to individuals who are school dropouts.
``(3) Limitations on activities for in-school
youth.--
``(A) Percentage of funds.--For any program
year, not more than 50 percent of the funds
available for statewide activities under
subsection (b), and not more than 50 percent of
funds available to local areas under subsection
(c), may be used to provide activities for in-
school youth meeting the requirements of
paragraph (1)(B)(v).
``(B) Exception.--A State that receives a
minimum allotment under section 127(b)(1) in
accordance with section 127(b)(1)(C)(iv) or
under section 132(b)(1) in accordance with
section 132(b)(1)(B)(iv)(II) may increase the
percentage described in subparagraph (A) for a
local area in the State, if--
``(i) after an analysis of the
eligible youth population in the local
area, the State determines that the
local area will be unable to use at
least 50 percent of the funds available
for activities under subsection (b) or
(c) to serve out-of-school youth due to
a low number of out-of-school youth;
and
``(ii)(I) the State submits to the
Secretary, for the local area, a
request including a proposed increased
percentage for purposes of subparagraph
(A), and the summary of the eligible
youth population analysis; and
``(II) the request is approved by the
Secretary.
``(C) Non-school hours required.--
``(i) In general.--Except as provided
in clause (ii), activities carried out
under this chapter for in-school youth
meeting the requirements of paragraph
(1)(B)(v) shall only be carried out in
non-school hours or periods when school
is not in session (such as before and
after school or during recess).
``(ii) Exception.--The requirements
of clause (i) shall not apply to
activities carried out for in-school
youth meeting the requirements of
paragraph (1)(B)(v) during school hours
that are part of a program that has
demonstrated effectiveness in high
school youth attaining diplomas.
``(4) Consistency with compulsory school attendance
laws.--In providing assistance under this section to an
individual who is required to attend school under
applicable State compulsory school attendance laws, the
priority in providing such assistance shall be for the
individual to attend school regularly.''.
(d) Statewide Youth Activities.--Section 129(b) (29 U.S.C.
2854(b)) is amended to read as follows:
``(b) Statewide Activities.--
``(1) In general.--Funds reserved by a Governor for a
State as described in sections 128(a) and 133(a)(1) may
be used for statewide activities including--
``(A) additional assistance to local areas
that have high concentrations of eligible
youth;
``(B) supporting the provision of work ready
services described in section 134(c)(2) in the
one-stop delivery system;
``(C) conducting evaluations under section
136(e) of activities authorized under this
chapter and chapter 5 in coordination with
evaluations carried out by the Secretary under
section 172, research, and demonstration
projects;
``(D) providing incentive grants to local
areas for regional cooperation among local
boards (including local boards in a designated
region as described in section 116(c)), for
local coordination of activities carried out
under this Act, and for exemplary performance
by local areas on the local performance
measures;
``(E) providing technical assistance and
capacity building to local areas, one-stop
operators, one-stop partners, and eligible
providers, including the development and
training of staff, the development of exemplary
program activities, and the provision of
technical assistance to local areas that fail
to meet local performance measures;
``(F) operating a fiscal and management
accountability system under section 136(f); and
``(G) carrying out monitoring and oversight
of activities under this chapter and chapter 5.
``(2) Limitation.--Not more than 5 percent of the
funds allotted under section 127(b) shall be used by
the State for administrative activities carried out
under this subsection and section 133(a).
``(3) Prohibition.--No funds described in this
subsection or in section 134(a) may be used to develop
or implement education curricula for school systems in
the State.''.
(e) Local Elements and Requirements.--
(1) Program design.--Section 129(c)(1) (29 U.S.C.
2854(c) (1)) is amended--
(A) in the matter preceding subparagraph (A),
by striking ``paragraph (2)(A) or (3), as
appropriate, of'';
(B) in subparagraph (B), by inserting ``are
directly linked to one or more of the
performance measures relating to this chapter
under section 136, and that'' after ``for each
participant that''; and
(C) in subparagraph (C)--
(i) by redesignating clauses (i)
through (iv) as clauses (ii) through
(v), respectively;
(ii) by inserting before clause (ii)
(as so redesignated) the following:
``(i) activities leading to the
attainment of a secondary school
diploma, General Educational
Development credential (GED), or other
State-recognized equivalent (including
recognized alternative standards for
individuals with disabilities);'';
(iii) in clause (ii) (as so
redesignated), by inserting ``and
advanced training'' after
``opportunities'';
(iv) in clause (iii) (as so
redesignated), by inserting ``that lead
to the attainment of recognized
credentials'' after ``learning''; and
(v) by amending clause (v) (as so
redesignated) to read as follows:
``(v) effective connections to
employers, including small employers,
in sectors of the local and regional
labor markets experiencing high growth
in employment opportunities.''.
(2) Program elements.--Section 129(c)(2) (29 U.S.C.
2854(c)(2)) is amended--
(A) in subparagraph (A), by striking
``secondary school, including dropout
prevention strategies'' and inserting
``secondary school diploma, General Educational
Development credential (GED), or other State-
recognized equivalent (including recognized
alternative standards for individuals with
disabilities), including dropout prevention
strategies'';
(B) in subparagraph (I), by striking ``and''
at the end;
(C) in subparagraph (J), by striking the
period at the end and inserting a semicolon;
and
(D) by adding at the end the following:
``(K) on-the-job training opportunities; and
``(L) financial literacy skills.''.
(3) Additional requirements.--Section 129(c)(3)(A)
(29 U.S.C. 2854(c)(3)(A)) is amended in the matter
preceding clause (i) by striking ``or applicant who
meets the minimum income criteria to be considered an
eligible youth''.
(4) Priority and exceptions.--Section 129(c) (29
U.S.C. 2854(c)) is further amended--
(A) by striking paragraphs (4) and (5) and
redesignating paragraphs (6) through (8) as
paragraphs (4) through (6), respectively; and
(B) in paragraph (5) (as so redesignated), by
striking ``youth councils'' and inserting
``local boards''.
SEC. 422. COMPREHENSIVE PROGRAMS FOR ADULTS.
(a) Title Amendment.--
(1) The title heading of chapter 5 is amended to read
as follows:
``CHAPTER 5--COMPREHENSIVE EMPLOYMENT AND TRAINING ACTIVITIES FOR
ADULTS''.
(2) Clerical amendment.--The table of contents in
section 1(b) is amended by amending the item related to
the heading for chapter 5 to read as follows:
``Chapter 5--Comprehensive Employment and Training Activities for
Adults''.
(b) General Authorization.--Section 131 (29 U.S.C. 2861) is
amended--
(1) by striking ``paragraphs (1)(B) and (2)(B) of'';
and
(2) by striking ``, and dislocated workers,''.
(c) State Allotments.--Section 132 (29 U.S.C. 2862) is
amended--
(1) by amending subsection (a) to read as follows:
``(a) In General.--The Secretary shall--
``(1) reserve 7.5 percent of the amount appropriated
under section 137 for a fiscal year, of which--
``(A) not less than 85 percent shall be used
for national dislocated worker grants under
section 173;
``(B) not more than 10 percent may be used
for demonstration projects under section 171;
and
``(C) not more than 5 percent may be used to
provide technical assistance under section 170;
and
``(2) make allotments from 92.5 percent of the amount
appropriated under section 137 for a fiscal year in
accordance with subsection (b).'';
(2) by amending subsection (b) to read as follows:
``(b) Allotment Among States for Adult Employment and
Training Activities.--
``(1) Reservation for outlying areas.--
``(A) In general.--From the amount made
available under subsection (a)(2) for a fiscal
year, the Secretary shall reserve not more than
\1/4\ of 1 percent to provide assistance to
outlying areas to carry out employment and
training activities for adults and statewide
workforce investment activities.
``(B) Restriction.--The Republic of Palau
shall cease to be eligible to receive funding
under this paragraph upon entering into an
agreement for extension of United States
educational assistance under the Compact of
Free Association (approved by the Compact of
Free Association Amendments Act of 2003 (Public
Law 108-188)) after the date of enactment of
the Workforce Investment Improvement Act of
2007.
``(2) States.--Subject to paragraph (5), of the
remainder of the amount referred to under subsection
(a)(2) for a fiscal year that is available after
determining the amount to be reserved under paragraph
(1), the Secretary shall allot to the States for
employment and training activities for adults and for
statewide workforce investment activities--
``(A) 26 percent in accordance with paragraph
(3); and
``(B) 74 percent in accordance with paragraph
(4).
``(3) Base formula.--
``(A) Fiscal year 2008.--
``(i) In general.--Subject to clause
(ii), the amount referred to in
paragraph (2)(A) shall be allotted for
fiscal year 2008 on the basis of
allotment percentage of each State
under section 6 of the Wagner-Peyser
Act for fiscal year 2007.
``(ii) Excess amounts.--If the amount
referred to in paragraph (2)(A) for
fiscal year 2008 exceeds the amount
that was available for allotment to the
States under the Wagner-Peyser Act for
fiscal year 2007, such excess amount
shall be allotted on the basis of the
relative number of individuals in the
civilian labor force in each State,
compared to the total number of
individuals in the civilian labor force
in all States, adjusted to ensure that
no State receives less than \3/10\ of
one percent of such excess amount.
``(iii) Definition.--For purposes of
this subparagraph, the term `allotment
percentage' means the percentage of the
amounts allotted to States under
section 6 of the Wagner-Peyser Act that
is received by the State involved for
fiscal year 2007.
``(B) Fiscal years 2009 and thereafter.--
``(i) In general.--Subject to clause
(ii), the amount referred to in
paragraph(2)(A) shall be allotted for
fiscal year 2009 and each fiscal year
thereafter on the basis of the
allotment percentage of each State
under this paragraph for the preceding
fiscal year.
``(ii) Excess amounts.--If the amount
referred to in paragraph (2)(A) for
fiscal year 2009 or any fiscal year
thereafter exceeds the amount that was
available for allotment under this
paragraph for the prior fiscal year,
such excess amount shall be allotted on
the basis of the relative number of
individuals in the civilian labor force
in each State, compared to the total
number of individuals in the civilian
labor force in all States, adjusted to
ensure that no State receives less than
\3/10\ of one percent of such excess
amount.
``(iii) Definition.--For purposes of
this subparagraph, the term `allotment
percentage' means the percentage of the
amounts allotted to States under this
paragraph in a fiscal year that is
received by the State involved for such
fiscal year.
``(4) Consolidated formula.--
``(A) In general.--Subject to subparagraphs
(B) and (C), of the amount referred to in
paragraph (2)(B)--
``(i) 60 percent shall be allotted on
the basis of the relative number of
unemployed individuals in each State,
compared to the total number of
unemployed individuals in all States;
``(ii) 25 percent shall be allotted
on the basis of the relative excess
number of unemployed individuals in
each State, compared to the total
excess number of unemployed individuals
in all States; and
``(iii) 15 percent shall be allotted
on the basis of the relative number of
disadvantaged adults in each State,
compared to the total number of
disadvantaged adults in all States.
``(B) Minimum and maximum percentages.--
``(i) Minimum percentage.--The
Secretary shall ensure that no State
shall receive an allotment under this
paragraph for a fiscal year that is
less than 90 percent of the allotment
percentage of the State under this
paragraph for the preceding fiscal
year.
``(ii) Maximum percentage.--Subject
to clause (i), the Secretary shall
ensure that no State shall receive an
allotment for a fiscal year under this
paragraph that is more than 130 percent
of the allotment of the State under
this paragraph for the preceding fiscal
year.
``(C) Small state minimum allotment.--Subject
to subparagraph (B), the Secretary shall ensure
that no State shall receive an allotment under
this paragraph that is less than \2/10\ of 1
percent of the amount available under
subparagraph (A).
``(D) Definitions.--For the purposes of this
paragraph:
``(i) Allotment percentage.--The term
`allotment percentage', used with
respect to fiscal year 2008 or a
subsequent fiscal year, means a
percentage of the amounts described in
paragraph (2)(B) that is received
through an allotment made under this
paragraph for the fiscal year. The
term, with respect to fiscal year 2007,
means the percentage of the amounts
allotted to States under this chapter
(as in effect on the day before the
date of enactment of the Workforce
Investment Improvement Act of 2007) and
under reemployment service grants
received by the State involved for
fiscal year 2007.
``(ii) Disadvantaged adult.--The term
`disadvantaged adult' means an
individual who is age 22 through 72 who
received an income, or is a member of a
family that received a total family
income, that, in relation to family
size, does not exceed the poverty line.
``(iii) Excess number.--The term
`excess number' means, used with
respect to the excess number of
unemployed individuals within a State,
the number that represents the number
of unemployed individuals in excess of
4\1/2\ percent of the civilian labor
force in the State.
``(5) Adjustments in allotments based on differences
with unconsolidated formulas.--
``(A) In general.--The Secretary shall ensure
that for any fiscal year no State has an
allotment difference, as defined in
subparagraph (C), that is less than zero. The
Secretary shall adjust the amounts allotted to
the States under this subsection in accordance
with subparagraph (B) if necessary to carry out
this subparagraph.
``(B) Adjustments in allotments.--
``(i) Redistribution of excess
amounts.--
``(I) In general.--If
necessary to carry out
subparagraph (A), the Secretary
shall reduce the amounts that
would be allotted under
paragraphs (3) and (4) to
States that have an excess
allotment difference, as
defined in subclause (II), by
the amount of such excess, and
use such amounts to increase
the allotments to States that
have an allotment difference
less than zero.
``(II) Excess amounts.--For
purposes of subclause (I), the
term `excess' allotment
difference means an allotment
difference for a State that
is--
``(aa) in excess of 3
percent of the amount
described in
subparagraph
(C)(i)(II); or
``(bb) in excess of a
percentage established
by the Secretary that
is greater than 3
percent of the amount
described in
subparagraph (C)(i)(II)
if the Secretary
determines that such
greater percentage is
sufficient to carry out
subparagraph (A).
``(ii) Use of amounts available under
national reserve account.--If the funds
available under clause (i) are
insufficient to carry out subparagraph
(A), the Secretary shall use funds
reserved under section 132(a) in such
amounts as are necessary to increase
the allotments to States to meet the
requirements of subparagraph (A). Such
funds shall be used in the same manner
as the States use the other funds
allotted under this subsection.
``(C) Definition of allotment difference.--
``(i) In general.--For purposes of
this paragraph, the term `allotment
difference' means the difference
between--
``(I) the total amount a
State would receive of the
amounts available for allotment
under subsection (b)(2) for a
fiscal year pursuant to
paragraphs (3) and (4); and
``(II) the total amount the
State would receive of the
amounts available for allotment
under subsection (b)(2) for the
fiscal year if such amounts
were allotted pursuant to the
unconsolidated formulas
(applied as described in clause
(iii)) that were used in
allotting funds for fiscal year
2007.
``(ii) Unconsolidated formulas.--For
purposes of clause (i), the
unconsolidated formulas are:
``(I) The requirements for
the allotment of funds to the
States contained in section
132(b)(1)(B) of this Act (as in
effect on the day before the
date of enactment of the
Workforce Investment
Improvement Act of 2007) that
were applicable to the
allotment of funds under such
section for fiscal year 2007.
``(II) The requirements for
the allotment of funds to the
States contained in section
132(b)(2)(B) of this Act (as in
effect on the day before the
date of enactment of the
Workforce Investment
Improvement Act of 2007) that
were applicable to the
allotment of funds under such
section for fiscal year 2007.
``(III) The requirements for
the allotment of funds to the
States that were contained in
section 6 of the Wagner-Peyser
Act (as in effect on the day
before the date of enactment of
the Workforce Investment
Improvement Act of 2007) that
were applicable to the
allotment of funds under such
Act for fiscal year 2007.
``(IV) The requirements for
the allotment of funds to the
States that were established by
the Secretary for Reemployment
Services Grants that were
applicable to the allotment of
funds for such grants for
fiscal year 2007.
``(iii) Proportionate application of
unconsolidated formulas based on fiscal
year 2007.--In calculating the amount
under clause (i)(II), each of the
unconsolidated formulas identified in
clause (ii) shall be applied,
respectively, only to the proportionate
share of the total amount of funds
available for allotment under
subsection (b)(2) for a fiscal year
that is equal to the proportionate
share to which each of the
unconsolidated formulas applied with
respect to the total amount of funds
allotted to the States under all of the
unconsolidated formulas in fiscal year
2007.
``(iv) Rule of construction.--The
amounts used to adjust the allotments
to a State under subparagraph (B) for a
fiscal year shall not be included in
the calculation of the amounts under
clause (i) for a subsequent fiscal
year, including the calculation of
allocation percentages for a preceding
fiscal year applicable to paragraphs
(3) and (4) and to the unconsolidated
formulas described in clause (ii).'';
and
(3) in subsection (c)--
(A) by amending paragraph (2) to read as
follows:
``(2) Amount.--The amount available for reallotment
for a program year is equal to the amount by which the
unexpended balance at the end of the program year prior
to the program year for which the determination is made
exceeds 30 percent of the total amount of funds
available to the State under this section during such
prior program year (including amounts allotted to the
State in all prior program years that remained
available). For purposes of this paragraph, the
expended balance is the amount that is the difference
between--
``(A) the total amount of funds available to
the State under this section during the program
year prior to the program year for which the
determination is made (including amounts
allotted to the State in all prior program
years that remained available); and
``(B) the accrued expenditures during such
prior program year.'';
(B) in paragraph (3)--
(i) by striking ``for the prior
program year'' and inserting ``for the
program year in which the determination
is made''; and
(ii) by striking ``such prior program
year'' and inserting ``such program
year'';
(C) by amending paragraph (4) to read as
follows:
``(4) Eligibility.--For purposes of this subsection,
an eligible State means a State that does not have an
amount available for reallotment under paragraph (2)
for the program year for which the determination under
paragraph (2) is made.''; and
(D) in paragraph (5), by striking
``obligation'' and inserting ``accrued
expenditure''.
(d) Within State Allocations.--Section 133 (29 U.S.C. 2863)
is amended--
(1) by amending subsection (a) to read as follows:
``(a) Reservation for Statewide Activities.--The Governor of
a State may reserve up to 40 percent of the total amount
allotted to the State under section 132 for a fiscal year to
carry out the statewide activities described in section
134(a).'';
(2) by amending subsection (b) to read as follows:
``(b) Allocations to Local Areas.--
``(1) In general.--Of the amounts allotted to the
State under section 132(b)(2) and not reserved under
subsection (a)--
``(A) 85 percent of such amounts shall be
allocated by the Governor to local areas in
accordance with paragraph (2); and
``(B) 15 percent of such amounts shall be
allocated by the Governor to local areas in
accordance with paragraph (3).
``(2) Established formula.--
``(A) In general.--Of the amounts described
in paragraph (1)(A), the Governor shall
allocate--
``(i) 60 percent on the basis of the
relative number of unemployed
individuals in each local area,
compared to the total number of
unemployed individuals in all local
areas in the State;
``(ii) 25 percent on the basis of the
relative excess number of unemployed
individuals in each local area,
compared to the total excess number of
unemployed individuals in all local
areas in the State; and
``(iii) 15 percent shall be allotted
on the basis of the relative number of
disadvantaged adults in each local
area, compared to the total number of
disadvantaged adults in all local areas
in the State.
``(B) Minimum and maximum percentages.--The
Governor shall ensure that no local area shall
receive an allocation for a fiscal year under
this paragraph that is less than 90 percent or
greater than 130 percent of the allocation
percentage of the local area for the preceding
fiscal year.
``(C) Definitions.--
``(i) Allocation percentage.--The
term `allocation percentage', used with
respect to fiscal year 2008 or a
subsequent fiscal year, means a
percentage of the amount described in
paragraph (1)(A) that is received
through an allocation made under this
paragraph for the fiscal year. The
term, with respect to fiscal year 2007,
means the percentage of the amounts
allocated to local areas under this
chapter (as in effect on the day before
the date of enactment of the Workforce
Investment Improvement Act of 2007)
that is received by the local area
involved for fiscal year 2007.
``(ii) Disadvantaged adult.--The term
`disadvantaged adult' means an
individual who is age 22 through 72 who
received an income, or is a member of a
family that received a total family
income, that, in relation to family
size, does not exceed the poverty line.
``(iii) Excess number.--The term
`excess number' means, used with
respect to the excess number of
unemployed individuals within a local
area, the number that represents the
number of unemployed individuals in
excess of 4.5 percent of the civilian
labor force in the local area.
``(3) Discretionary allocation.--The Governor shall
allocate to local areas the amounts described in
paragraph (1)(B) based on a formula developed in
consultation with the State board and local boards.
Such formula shall be objective and geographically
equitable and may include such demographic and economic
factors as the Governor, after consultation with the
State board and local boards, determines are
appropriate.
``(4) Local administrative cost limit.--
``(A) In general.--Of the amounts allocated
to a local area under this subsection and
section 128(b) for a fiscal year, not more than
10 percent of the amount may be used by the
local boards for the administrative costs of
carrying out local workforce investment
activities under this chapter or chapter 4.
``(B) Use of funds.--Funds made available for
administrative costs under subparagraph (A) may
be used for the administrative costs of any of
the local workforce investment activities
described in this chapter or chapter 4,
regardless of whether the funds were allocated
under this subsection or section 128(b).'';
(3) in subsection (c)--
(A) in paragraph (1), by striking ``paragraph
(2)(A) or (3) of'';
(B) by amending paragraph (2) to read as
follows:
``(2) Amount.--The amount available for reallocation
for a program year is equal to the amount by which the
unexpended balance at the end of the program year prior
to the program year for which the determination is made
exceeds 30 percent of the total amount of funds
available to the local area under this section during
such prior program year (including amounts allotted to
the local area in prior program years that remain
available). For purposes of this paragraph, the
unexpended balance is the amount that is the difference
between--
``(A) the total amount of funds available to
the local area under this section during the
program year prior to the program year for
which the determination is made (including
amounts allocated to the local area in all
prior program years that remained available);
and
``(B) the accrued expenditures during such
prior program year.'';
(C) by amending paragraph (3)--
(i) by striking ``subsection (b)(3)''
the first two places it appears and
inserting ``subsection (b)'';
(ii) by striking ``the prior program
year'' and inserting ``the program year
in which the determination is made'';
(iii) by striking ``such prior
program year'' and inserting ``such
program year''; and
(iv) by striking the last sentence;
and
(D) by amending paragraph (4) to read as
follows:
``(4) Eligibility.--For purposes of this subsection,
an eligible local area means a local area which does
not have an amount available for reallocation under
paragraph (2) for the program year for which the
determination under paragraph (2) is made.''.
(e) Use of Funds for Employment and Training Activities.--
(1) Statewide employment and training activities.--
Section 134(a) (29 U.S.C. 2864(a) is amended to read as
follows:
``(1) In general.--
``(A) Required use of funds.--Not less than
60 percent of the funds reserved by a Governor
under section 133(a) shall be used to support
One-Stop delivery systems and the provision of
work ready services, and, in addition, may be
used to support the provision of discretionary
one-step delivery services, in local areas,
consistent with the local plan, through one-
stop delivery systems by distributing funds to
local areas in accordance with subparagraph
(B). Such funds may be used by States to employ
State personnel to provide such services in
designated local areas in consultation with
local boards.
``(B) Method of distributing funds.--The
method of distributing funds under this
paragraph shall be developed in consultation
with the State board and local boards. Such
method of distribution, which may include the
formula established under section 121(h)(3),
shall be objective and geographically
equitable, and may include factors such as the
number of centers in the local area that have
been certified, the population served by such
centers, and the performance of such centers.
``(C) Other use of funds.--Funds reserved by
a Governor for a State--
``(i) under section 133(a) and not
used under subparagraph (A), may be
used for statewide activities described
in paragraph (2); and
``(ii) under section 133(a) and not
used under subparagraph (A), and under
section 128(a) may be used to carry out
any of the statewide employment and
training activities described in
paragraph (3).
``(2) Statewide rapid response activities.--A State
shall carry out statewide rapid response activities
using funds reserved as described in section 133(a).
Such activities shall include--
``(A) provision of rapid response activities,
carried out in local areas by the State or by
an entity designated by the State, working in
conjunction with the local boards and the chief
elected officials in the local areas; and
``(B) provision of additional assistance to
local areas that experience disasters, mass
layoffs or plant closings, or other events that
precipitate substantial increases in the number
of unemployed individuals, carried out in local
areas by the State, working in conjunction with
the local boards and the chief elected
officials in the local areas.
``(3) Statewide activities.--Funds reserved by a
Governor for a State as described in sections 133(a)
and 128(a) may be used for statewide activities
including--
``(A) supporting the provision of work ready
services described in section 134(c)(2) in the
one-stop delivery system;
``(B) implementing innovative programs and
strategies designed to meet the needs of all
businesses in the State, including small
businesses, which may include incumbent worker
training programs, sectoral and industry
cluster strategies and partnerships, including
regional skills alliances, sectoral skills
partnerships (in which representatives of
multiple employers for a specific industry
sector or group of related occupations,
economic development agencies, providers of
training services described in subsection
(d)(4), labor federations, and other entities
that can provide needed supportive services
tailored to the needs of workers in that sector
or group, for a local area or region, identify
gaps between the current and expected demand
and supply of labor and skills in that sector
or group for that area or region and develop a
strategic skills gap action plan), career
ladder programs, micro-enterprise and
entrepreneurial training and support programs,
utilization of effective business
intermediaries, activities to improve linkages
between the one-stop delivery system in the
State and all employers (including small
employers) in the State, and other business
services and strategies that better engage
employers in workforce investment activities
and make the workforce investment system more
relevant to the needs of State and local
businesses, consistent with the objectives of
this title;
``(C) conducting evaluations under section
136(e) of activities authorized under this
chapter and chapter 4 in coordination with
evaluations carried out by the Secretary under
section 172, research, and demonstration
projects;
``(D) providing incentive grants to local
areas for regional cooperation among local
boards (including local boards in a designated
region as described in section 116(c)), for
local coordination of activities carried out
under this Act, and for exemplary performance
by local areas on the local performance
measures;
``(E) providing technical assistance and
capacity building to local areas, one-stop
operators, one-stop partners, and eligible
providers, including the development and
training of staff, the development of exemplary
program activities, and the provision of
technical assistance to local areas that fail
to meet local performance measures;
``(F) operating a fiscal and management
accountability system under section 136(f);
``(G) carrying out monitoring and oversight
of activities carried out under this chapter
and chapter 4;
``(H) implementing innovative programs, such
as incumbent worker training programs, programs
and strategies designed to meet the needs of
businesses in the State, including small
businesses, and engage employers in workforce
activities, and programs serving individuals
with disabilities consistent with section 188;
``(I) developing strategies for effectively
serving hard-to-serve populations and for
integrating programs and services among one-
stop partners; and
``(J) carrying out activities to facilitate
remote access to services provided through a
one-stop delivery system, including
facilitating access through the use of
technology.
``(4) Limitation.--Not more than 5 percent of the
funds allotted under section 132(b) shall be used by
the State for administrative activities carried out
under this subsection and section 128(a).''.
(2) Local employment and training activities.--
Section 134(b) (29 U.S.C. 2864(b)) is amended--
(A) by striking ``under paragraph (2)(A)''
and all that follows through ``section
133(b)(2)(B)'' and inserting ``under section
133(b)''; and
(B) in paragraphs (1) and (2), by striking
``or dislocated workers, respectively''.
(3) Technical amendment.--Section 134 is further
amended by redesignating subsections (d) and (e) as
subsections (c) and (d), respectively.
(4) Required local employment and training
activities.--
(A) Allocated funds.--Section 134(c)(1) (29
U.S.C. 2864(c)(1)) (as redesignated by
paragraph (3)) is amended to read as follows:
``(1) In general.--Funds allocated to a local area
for adults under section 133(b) shall be used--
``(A) to establish a one-stop delivery system
as described in section 121(e);
``(B) to provide the work ready services
described in paragraph (2) through the one-stop
delivery system in accordance with such
paragraph;
``(C) to provide training services described
in paragraph (4) to adults described in such
paragraph; and
``(D) to designate a dedicated business
liaison in the local area who may be funded
with funds provided under this title or from
other sources to establish and develop
relationships and networks with large and small
employers and their intermediaries.''.
(B) Work ready services.--Section 134(c)(2)
(29 U.S.C. 2864(c)(2)) (as redesignated by
paragraph (3)) is amended----
(i) in the heading, by striking
``core services'' and inserting ``work
ready services'';
(ii) by striking ``core services''
and inserting ``work ready services'';
(iii) by striking ``paragraph
(1)(A)'' and inserting ``paragraph
(1)(A)(i)'';
(iv) by striking ``who are adults or
dislocated workers'';
(v) in subparagraph (A), by inserting
``and assistance in obtaining
eligibility determinations under the
other one-stop partner programs through
such activities as assisting in the
submission of applications, the
provision of information on the results
of such applications, the provision of
intake services and information, and,
where appropriate and consistent with
the authorizing statute of the one-stop
partner program, determinations of
eligibility'' after ``subtitle'';
(vi) by amending subparagraph (D) to
read as follows:
``(D) labor exchange services, including--
``(i) job search and placement
assistance, and where appropriate
career counseling;
``(ii) appropriate recruitment
services for employers, including small
employers, in the local area, which may
include services described in this
subsection, including information and
referral to specialized business
services not traditionally offered
through the one-stop delivery system;
and
``(iii) reemployment services
provided to unemployment claimants,
including claimants identified as in
need of such services under the worker
profiling system established under
section 303(j) of the Social Security
Act (42 U.S.C. 503(j));'';
(vii) in subparagraph (I), by
inserting ``and the administration of
the work test for the unemployment
compensation system'' after
``compensation''; and
(viii) by striking subparagraph (H)
and inserting the following:
``(H) provision of accurate information, in
formats that are usable and understandable to
all one-stop center customers, relating to the
availability of supportive services or
assistance, including child care, child
support, medical or child health assistance
under title XIX or XXI of the Social Security
Act (42 U.S.C. 1396 et seq. and 1397aa et
seq.), benefits under the Food Stamp Act of
1977 (7 U.S.C. 2011 et seq.), the earned income
tax credit under section 32 of the Internal
Revenue Code of 1986, and assistance under a
State program funded under part A of title IV
of the Social Security Act (42 U.S.C. 601 et
seq.) and other supportive services and
transportation provided through funds made
available under such part, available in the
local area, and referral to such services or
assistance as appropriate;''; and
(ix) by amending subparagraph (J) to
read as follows:
``(J) assistance in establishing eligibility
for programs of financial aid assistance for
training and education programs that are not
funded under this Act and are available in the
local area; and''; and
(x) by redesignating subparagraph (K)
as subparagraph (M); and
(xi) by inserting the following new
subparagraphs after subparagraph (J)):
``(K) the provision of information from
official publications of the Internal Revenue
Service, regarding federal tax credits
available to individuals relating to education,
job training and employment, including the Hope
Scholarship Credit and the Lifetime Learning
Credit (26 U.S.C. 25A), and the Earned Income
Tax Credit (26 U.S.C. 32);
``(L) services relating to the Work
Opportunity Tax Credit (26 U.S.C. 51);
``(M) comprehensive and specialized
assessments of the skill levels and service
needs of adults and dislocated workers, which
may include--
``(i) diagnostic testing and use of
other assessment tools; and
``(ii) in-depth interviewing and
evaluation to identify employment
barriers and appropriate employment
goals;
``(N) development of an individual employment
plan, to identify the employment goals,
appropriate achievement objectives, and
appropriate combination of services for the
participation to achieve the employment goals;
``(O) group counseling;
``(P) individual counseling and career
planning;
``(Q) case management;
``(R) short-term prevocational services,
including development of learning skills,
communications skills, interviewing skills,
punctuality, personal maintenance skills, and
professional conduct, to prepare individuals
for unsubsidized employment or training;
``(S) internships and work experience;
``(T) literacy activities relating to basic
work readiness, information and communication
technology literacy activities, and financial
literacy activities, if such activities are not
available to participants in the local area
under programs administered under the Adult
Education and Family Literacy Act (20 U.S.C.
2901 et seq.); and
``(U) out-of-area job search assistance and
relocation assistance.''.
(C) Delivery of services.--Section 134(c)(3)
(29 U.S.C. 2864(c)(3) (as redesignated by
paragraph (3) of this subsection) is amended to
read as follows:
``(3) Delivery of services.--The work ready services
described in paragraph (M) through (U) shall be
provided through the one-stop delivery system and may
be provided through contracts with public, private for-
profit, and private nonprofit service providers,
approved by the local board.''.
(D) Training services.--Section 134(c)(4) (as
redesignated by paragraph (3) of this
subsection) is amended--
(i) by amending subparagraph (A) to
read as follows:
``(A) In general.--Funds allocated to a local
area under section 133(b) shall be used to
provide training services to adults who--
``(i) after an interview, evaluation,
or assessment, and case management,
have been determined by a one-stop
operator or one-stop partner, as
appropriate, to--
``(I) be in need of training
services to obtain or retain
suitable employment; and
``(II) have the skills and
qualifications to successfully
participate in the selected
program of training services;
``(ii) select programs of training
services that are directly linked to
the employment opportunities in the
local area involved or in another area
in which the adults receiving such
services are willing to commute or
relocate;
``(iii) who meet the requirements of
subparagraph (B); and
``(iv) who are determined eligible in
accordance with the priority system in
effect under subparagraph (E).'';
(ii) in subparagraph (B)(i), by
striking ``Except'' and inserting
``Notwithstanding section 479B of the
Higher Education Act of 1965 (20 U.S.C.
1087uu) and except'';
(iii) by amending subparagraph (D) to
read as follows:
``(D) Training services.--Training services
authorized under this paragraph may include--
``(i) occupational skills training;
``(ii) on-the-job training;
``(iii) skill upgrading and
retraining;
``(iv) entrepreneurial training;
``(v) education activities leading to
a high school diploma or its
equivalent, including a General
Educational Development credential, in
combination with, concurrently or
subsequently, occupational skills
training;
``(vi) adult education and literacy
activities provided in conjunction with
other training authorized under this
subparagraph;
``(vii) workplace training combined
with related instruction; and
``(viii) occupational skills training
that incorporates English language
acquisition.'';
(iv) by amending subparagraph (E) to
read as follows:
``(E) Priority.--
``(i) In general.--A priority shall
be given to unemployed individuals and
employed workers who need training
services to retain employment or to
advance in a career for the provision
of intensive and training services
under this subsection.
``(ii) Determinations.--The Governor
and the appropriate local board shall
direct the one-stop operators in the
local area with regard to making
determinations with respect to the
priority of service under this
subparagraph.'';
(v) in subparagraph (F), by striking
clause (iii) and inserting the
following:
``(iii) Career enhancement
accounts.--An individual who seeks
training services and who is eligible
pursuant to subparagraph (A), may, in
consultation with a case manager,
select an eligible provider of training
services from the list or identifying
information for providers described in
clause (ii)(I). Upon such selection,
the one-stop operator involved shall,
to the extent practicable, refer such
individual to the eligible provider of
training services, and arrange for
payment for such services through a
career enhancement account.
``(iv) Coordination.--Each local
board may, through one-stop centers,
coordinate career enhancement accounts
with other Federal, State, local, or
private job training programs or
sources to assist the individual in
obtaining training services.
``(v) Enhanced career enhancement
accounts.--Each local board may,
through one-stop centers, assist
individuals receiving career
enhancement accounts through the
establishment of such accounts that
include, in addition to the funds
provided under this paragraph, funds
from other programs and sources that
will assist the individual in obtaining
training services.''; and
(vi) in subparagraph (G)--
(I) in the subparagraph
heading, by striking
``individual training
accounts'' and inserting
``career enhancement
accounts'';
(II) in clause (i) by
striking ``individual training
accounts'' and inserting
``career enhancement
accounts'';
(III) in clause (ii)--
(aa) by striking ``an
individual training
account'' and inserting
``a career enhancement
account'';
(bb) in subclause
(II), by striking
``individual training
accounts'' and
inserting ``career
enhancement accounts'';
(cc) in subclause
(II) by striking ``or''
after the semicolon;
(dd) in subclause
(III) by striking the
period and inserting
``; or''; and
(ee) by adding at the
end of the following:
``(IV) The local board
determines that it would be
most appropriate to award a
contract to an institution of
higher education in order to
facilitate the training of
multiple individuals in high-
demand occupations, if such
contract does not limit
customer choice.''.
(IV) in clause (iv)--
(aa) by redesignating
subclause (IV) as
subclause (V) and
inserting after
subclause (III) the
following:
``(IV) Individuals with
disabilities.''.
(5) Permissible activities.--Section 134(d) (as
redesignated by paragraph (3)) is amended--
(A) by amending paragraph (1) to read as
follows:
``(1) Discretionary one-stop delivery activities.--
``(A) In general.--Funds allocated to a local
area under section 133(b) may be used to
provide, through the one-stop delivery system--
``(i) customized screening and
referral of qualified participants in
training services to employers;
``(ii) customized employment-related
services to employers on a fee-for-
service basis;
``(iii) customer support to navigate
among multiple services and activities
for special participant populations
that face multiple barriers to
employment, including individuals with
disabilities;
``(iv) employment and training
assistance provided in coordination
with child support enforcement
activities of the State agency carrying
out subtitle D of title IV of the
Social Security Act (42 U.S.C. 651 et
seq.);
``(v) activities to improve services
to local employers, including small
employers in the local area, and
increase linkages between the local
workforce investment system and
employers;
``(vi) activities to facilitate
remote access to services provided
through a one-stop delivery system,
including facilitating access through
the use of technology; and
``(vii) activities to carry out
business services and strategies that
meet the workforce investment needs of
local area employers, as determined by
the local board, consistent with the
local plan under section 118, which
services--
``(I) may be provided through
effective business
intermediaries working in
conjunction with the local
board, and may also be provided
on a fee-for-service basis or
through the leveraging of
economic development and other
resources as determined
appropriate by the local board;
and
``(II) may include--
``(aa) identifying
and disseminating to
business, educators,
and job seekers,
information related to
the workforce, economic
and community
development needs, and
opportunities of the
local economy;
``(bb) development
and delivery of
innovative workforce
investment services and
strategies for area
businesses, which may
include sectoral,
industry cluster,
regional skills
alliances, career
ladder, skills
upgrading, skill
standard development
and certification,
apprenticeship, and
other effective
initiatives for meeting
the workforce
investment needs of
area employers and
workers;
``(cc) participation
in seminars and classes
offered in partnership
with relevant
organizations focusing
on the workforce-
related needs of area
employers and job
seekers;
``(dd) training
consulting, needs
analysis, and brokering
services for area
businesses, including
the organization and
aggregation of training
(which may be paid for
with funds other than
those provided under
this title), for
individual employers
and coalitions of
employers with similar
interests, products, or
workforce needs;
``(ee) assistance to
area employers in the
aversion of layoffs and
in managing reductions
in force in
coordination with rapid
response activities;
``(ff) the marketing
of business services
offered under this
title, to appropriate
area employers,
including small and
mid-sized employers;
``(gg) information
referral on concerns
affecting local
employers; and
``(hh) other business
services and strategies
designed to better
engage employers in
workforce investment
activities and to make
the workforce
investment system more
relevant to the
workforce investment
needs of area
businesses, as
determined by the local
board to be consistent
with the objectives of
this title.
``(B) Work support activities for low-wage
workers.--
``(i) In general.--Funds allocated to
a local area under 133(b) may be used
to provide, through the one-stop
delivery system and in collaboration
with the appropriate programs and
resources of the one-stop partners,
work support activities designed to
assist low-wage workers in retaining
and enhancing employment. The one stop
partners shall coordinate the
appropriate programs and resources of
the partners with the activities and
resources provided under this
subparagraph.
``(ii) Activities.--The activities
described in clause (i) may include
assistance in accessing financial
supports for which such workers may be
eligible and the provision of
activities available through the one-
stop delivery system in a manner that
enhances the opportunities of such
workers to participate, such as the
provision of employment and training
activities during nontraditional hours
and the provision of on-site child care
while such activities are being
provided.''; and
(B) by adding after paragraph (3) the
following new paragraph:
``(4) Incumbent worker training programs.--
``(A) In general.--The local board may use up
to 10 percent of the funds allocated to a local
area under section 133(b) to carry out
incumbent worker training programs in
accordance with this paragraph.
``(B) Training activities.--The training
programs for incumbent workers under this
paragraph shall be carried out by the local
area in conjunction with the employers of such
workers for the purpose of assisting such
workers in obtaining the skills necessary to
retain employment and avert layoffs.
``(C) Employer match required.--
``(i) In general.--Employers
participating in programs under this
paragraph shall be required to pay a
proportion of the costs of providing
the training to the incumbent workers
of the employers. The State board, in
consultation with the local board as
appropriate, shall establish the
required portion of such costs, which
may include in-kind contributions. The
required portion shall not be less
than--
``(I) 10 percent of the
costs, for employers with 50 or
fewer employees;
``(II) 25 percent of the
costs, for employers with more
than 50 employees but fewer
than 100 employees; and
``(III) 50 percent of the
costs, for employers with 100
or more employees.
``(ii) Calculation of match.--The
wages paid by an employer to a worker
while they are attending training may
be included as part of the requirement
payment of the employer.''.
SEC. 423. PERFORMANCE ACCOUNTABILITY SYSTEM.
(a) State Performance Measures.--
(1) In general.--Section 136(b)(1) (29 U.S.C.
2871(b)(1)) is amended--
(A) in subparagraph (A)(i), by striking ``and
the customer satisfaction indicator of
performance described in paragraph (2)(B)'';
and
(B) in subparagraph (A)(ii), by striking
``paragraph (2)(C)'' and inserting ``paragraph
(2)(B)''.
(2) Indicators of performance.--Section 136(b)(2) (29
U.S.C. 2871(b)(2)) is amended--
(A) in subparagraph (A)(i)--
(i) by striking ``(except for self-
service and information activities) and
(for participants who are eligible
youth age 19 through 21) for youth
activities authorized under section
129'';
(ii) in subclause (II), by striking
``6 months after entry into the
employment'' and inserting ``and''
after the semicolon; and
(iii) by striking subclause (III),
and inserting the following:
``(III) average earnings from
unsubsidized employment.'';
(B) by striking subclause (IV) of
subparagraph (A)(i);
(C) by amending subparagraph (A)(ii) to read
as follows:
``(ii) Core indicators for eligible
youth.--The core indicators of
performance for youth activities
authorized under section 129 shall
consist of--
``(I) entry into employment,
education or advanced training,
or military service;
``(II) attainment of
secondary school diploma,
General Educational Development
credential (GED), or other
State-recognized equivalent or
certificate (including
recognized alternative
standards for individuals with
disabilities); and
``(III) literacy or numeracy
gains.'';
(D) by striking subparagraph (B); and
(E) by redesignating subparagraph (C) as
subparagraph (B), and by adding at the end of
such subparagraph the following new sentence:
``Such indicators may include customer
satisfaction of employers and participants with
services received from the workforce investment
activities authorized under this subtitle.''.
(3) Levels of performance.--Section 136(b)(3)(A) (29
U.S.C. 2871(b)(3)(A)) is amended--
(A) in clause (i), by striking ``and the
customer satisfaction indicator described in
paragraph (2)(B)'';
(B) in clause (ii), by striking ``and the
customer satisfaction indicator of performance,
for the first 3'' and inserting ``for the 2'';
(C) in clause (iii)--
(i) in the heading, by striking ``FOR
FIRST 3 YEARS''; and
(ii) by striking ``and the customer
satisfaction indicator of performance,
for the first 3'' and inserting ``for
the 2'';
(D) in clause (iv)--
(i) by striking subclause (I);
(ii) by redesignating subclauses (II)
and (III) as subclauses (I) and (II),
respectively; and
(iii) in subclause (I) (as so
redesignated)--
(I) by striking ``taking into
account'' and inserting ``which
shall be adjusted based on'';
(II) by inserting ``, such as
unemployment rates and job
losses or gains in particular
industries'' after ``economic
conditions''; and
(III) by inserting ``, such
as indicators of poor work
history, lack of work
experience, dislocation from
high-wage employment, low
levels of literacy or English
proficiency, disability status,
including the number of
veterans with disabilities, and
welfare dependency'' after
``program'';
(E) by striking clause (v) and redesignating
clause (vi) as clause (v).
(4) Additional indicators.--Section 136(b)(3)(B) is
amended by striking ``paragraph (2)(C)'' and inserting
``paragraph (2)(B)''.
(b) Local Performance Measures.--Section 136(c) (29 U.S.C.
2871(c)) is amended--
(1) in paragraph (1)(A)(i), by striking ``, and the
customer satisfaction indicator of performance
described in subsection (b)(2)(B),'';
(2) in paragraph (1)(A)(ii), by striking ``subsection
(b)(2)(C)'' and inserting ``subsection (b)(2)(B)''; and
(3) by amending paragraph (3) to read as follows:
``(3) Determinations.--In determining such local
levels of performance, the local board, the chief
elected official, and the Governor shall ensure such
levels are adjusted based on the specific economic
characteristics (such as unemployment rates and job
losses or gains in particular industries), demographic
characteristics, or other characteristics of the
population to be served in the local area, such as poor
work history, lack of work experience, dislocation from
high-wage employment, low levels of literacy or English
proficiency, disability status, including the number of
veterans with disabilities, and welfare dependency.''.
(c) Report.--Section 136(d) (29 U.S.C. 2871(d)) is amended--
(1) in paragraph (1), by striking ``and the customer
satisfaction indicator'' in both places that it
appears;
(2) in paragraph (2)--
(A) in subparagraph (E), by striking
``(excluding participants who received only
self-service and informational activities);
and'' and inserting a semicolon;
(B) in subparagraph (F), by striking the
period and inserting ``; and''; and
(C) by adding at the end the following:
``(G) the number of participants who have
received services other than followup services,
authorized under this title, in the form of
work ready services described in section
134(d)(2), and training services described in
section 134(d)(4), respectively;
``(H) the number of participants who have
received followup services authorized under
this title; and
``(I) the cost per participant for services
authorized under this title.''; and
(3) by adding at the end the following:
``(4) Data validation.--In preparing the reports
described in this subsection, the States shall
establish procedures, consistent with guidelines issued
by the Secretary, to ensure the information contained
in the report is valid and reliable.''.
(d) Sanctions for State.--Section 136(g) (29 U.S.C. 2871(g))
is amended--
(1) in paragraph (1)(A), by striking ``or (B)''; and
(2) in paragraph (2), by striking ``section 503'' and
inserting ``section 136(i)''.
(e) Sanctions for Local Areas.--Section 136(h) (29 U.S.C.
2871(h)) is amended--
(1) in paragraph (1), by striking ``or (B)''; and
(2) by amending paragraph (2)(B) to read as follows:
``(B) Appeal to governor.--A local area that
is subject to a reorganization plan under
subparagraph (A) may, not later than 30 days
after receiving notice of the reorganization
plan, appeal to the Governor to rescind or
revise such plan. In such case, the Governor
shall make a final decision not later than 30
days after the receipt of the appeal.''.
(f) Incentive Grants.--Section 136(i) (29 U.S.C. 2871(i)) is
amended to read as follows:
``(i) Incentive Grants for States and Local Areas.--
``(1) Incentive grants for states.--
``(A) In general.--From funds appropriated
under section 174, the Secretary may award
incentive grants to States for exemplary
performance in carrying programs under chapters
4 and 5 of this title. Such awards may be based
on States meeting or exceeding the performance
measures established under this section, on the
performance of the State in serving special
populations, including the levels of service
provided and the performance outcomes, and such
other factors relating to the performance of
the State under this title as the Secretary
determines is appropriate.
``(B) Use of funds.--The funds awarded to a
State under this paragraph may be used to carry
out any activities authorized under chapters 4
and 5 of this title, including--
``(i) activities that provide
technical assistance to local areas to
replicate best practices for workforce
and education programs;
``(ii) activities that support the
needs of businesses, especially for
incumbent workers and enhancing
opportunities for retention and
advancement;
``(iii) activities that support
linkages between the workforce and
education programs, and secondary,
postsecondary, or career and technical
education programs, including
activities under the Carl D. Perkins
Career and Technical Education Act (20
U.S.C. 2301 et seq.), the Adult
Education and Family Literacy Act (20
U.S.C. 9201 et seq.), and the
Rehabilitation Act of 1973 (29 U.S.C.
701 et seq.);
``(iv) activities that support
regional economic development plans
that support high-wage, high-skill, or
high-demand occupations leading to
self-sufficiency;
``(v) activities that coordinate the
workforce and education programs with
other Federal and State programs
related to the workforce and education
programs;
``(vi) activities that support the
development of an integrated
performance information system that
includes common measures for one-stop
partner programs described in section
121;
``(vii) activities that support
activities to improve performance in
workforce and education programs and
program coordination of workforce and
education programs; or
``(viii) activities that leverage
additional training resources, other
than those provided through workforce
and education programs, for adults and
youth.
``(2) Incentive grants for local areas.--
``(A) In general.--From funds reserved under
sections 128(a) and 133(a), the Governor may
award incentive grants to local areas for
exemplary performance with respect to the
measures established under this section and
with the performance of the local area in
serving special populations, including the
levels of service and the performance outcomes.
``(B) Use of funds.--The funds awarded to a
local area may be used to carry out activities
authorized for local areas under chapters 4 and
5 of this title, the Adult Education and Family
Literacy Act, and the Rehabilitation Act of
1973 (referred to in this subsection as
`workforce and education programs'), and such
innovative projects or programs that increase
coordination and enhance service to
participants in such programs, particularly
hard-to-serve populations, as may be approved
by the Governor, including--
``(i) activities that support the
needs of businesses, especially for
incumbent workers and enhancing
opportunities for retention and
advancement;
``(ii) activities that support
linkages between the workforce and
education programs, and secondary,
postsecondary, or career and technical
education programs, including
activities under the Carl D. Perkins
Career and Technical Education Act (20
U.S.C. 2301 et seq.), the Adult
Education and Family Literacy Act (20
U.S.C. 9201 et seq.), and the
Rehabilitation Act of 1973 (29 U.S.C.
701 et seq.);
``(iii) activities that support
regional economic development plans
that support high-wage, high-skill, or
high-demand occupations leading to
self-sufficiency;
``(iv) activities that coordinate the
workforce and education programs with
other Federal and State programs
related to the workforce and education
programs;
``(v) activities that support the
development of an integrated
performance information system that
includes common measures for one-stop
partner programs described in section
121;
``(vi) activities that support
activities to improve performance in
workforce and education programs and
program coordination of workforce and
education programs; or
``(vii) activities that leverage
additional training resources, other
than those provided through workforce
and education programs, for adults and
youth.''.
(g) Use of Core Indicators for Other Programs.--Section 136
(29 U.S.C. 2871) is further amended by adding at the end the
following subsection:
``(j) Use of Core Indicators for Other Programs.--In addition
to the programs carried out under chapters 4 and 5, and
consistent with the requirements of the applicable authorizing
laws, the Secretary shall use the core indicators of
performance described in subsection (b)(2)(A) to assess the
effectiveness of the programs described under section
121(b)(1)(B) that are carried out by the Secretary.''.
(h) Repeal of Definitions.--Sections 502 and 503 (and the
items related to such sections in the table of contents) are
repealed.
SEC. 424. AUTHORIZATION OF APPROPRIATIONS.
(a) Youth Activities.--Section 137(a) (29 U.S.C. 2872(a)) is
amended by striking ``such sums as may be necessary for each of
fiscal years 1999 through 2003'' and inserting ``such sums as
may be necessary for each of fiscal year 2008 through 2012''.
(b) Adult Employment and Training Activities.--Section 137(b)
(29 U.S.C. 2872(b)) is amended by striking ``section 132(a)(1),
such sums as may be necessary for each of fiscal years 1999
through 2003'' and inserting ``section 132(a), such sums as may
be necessary for each of fiscal years 2008 through 2012''.
(c) Dislocated Worker Employment and Training Activities.--
Section 137 is further amended by striking subsection (c).
SEC. 425. JOB CORPS.
(a) Program Activities.--Section 148(a) is amended by
striking paragraph (1) and inserting the following:
``(1) In general.--Each Job Corps Center shall
provide enrollees with an intensive, well organized,
and fully supervised program of education, career
training, work experience, recreational activities,
physical rehabilitation and development, and
counseling. Each Job Corps center shall provide
enrollees assigned to the center with access to work
ready services described in section 134(c)(2).''.
(b) Industry Councils.--Section 154(b) (29 U.S.C. 2894(b)) is
amended--
(1) in paragraph (1)(A), by striking ``local and
distant''; and
(2) by adding after paragraph (2) the following:
``(3) Employers outside of local areas.--The industry
council may include, or otherwise provide for
consultation with, employers from outside the local
area who are likely to hire a significant number of
enrollees from the Job Corps center.
``(4) Special rule for single local area states.--In
the case of a single local area State designated under
section 116(b), the industry council shall include a
representative of the State Board.''.
(c) Indicators of Performance and Additional Information.--
Section 159(c) (29 U.S.C. 2893(c)) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) Core indicators.--The Secretary shall annually
establish expected levels of performance for Job Corps
centers and the Job Corps program relating to each of
the following core indicators of performance for
youth--
``(A) entry into education, employment,
military service or advanced training;
``(B) attainment of a secondary school
diploma, General Educational Development
credential (GED), or other State-recognized
equivalent; and
``(C) literacy or numeracy gains.''; and
(2) in paragraph (2), by striking ``measures'' each
place it appears and inserting ``indicators''.
(d) Authorization of Appropriations.--Section 161 (29 U.S.C.
2901) is amended by striking ``1999 through 2003'' and
inserting ``2008 through 2012''.
(e) Repeal of Requirement Relating to Federal
Administration.--Section 102 of the Departments of Labor,
Health and Human Services, and Education, and Related Agencies
Appropriations Act, 2006 (Public Law 109-149) is repealed.
SEC. 426. NATIVE AMERICAN PROGRAMS.
(a) Advisory Council.--Section 166(h)(4)(C) (29 U.S.C.
2911(h)(4)(C)) is amended to read as follows:
``(C) Duties.--The Council shall advise the
Secretary on the operation and administration
of the programs assisted under this section.''.
(b) Assistance to American Samoans in Hawaii.--Section 166
(29 U.S.C. 2911) is further amended by striking subsection (j).
SEC. 427. MIGRANT AND SEASONAL FARMWORKER PROGRAMS.
Section 167(d) is amended by inserting ``(including permanent
housing)'' after ``housing''.
SEC. 428. VETERANS' WORKFORCE INVESTMENT PROGRAMS.
Section 168(a)(3)(C) (29 U.S.C. 2913 (a)(3)(C)) is amended by
striking ``section 134(c)'' and inserting ``section 121(e)''.
SEC. 429. YOUTH CHALLENGE GRANTS.
(a) In General.--Section 169 (29 U.S.C. 2914) is amended to
read as follows:
``SEC. 169. YOUTH CHALLENGE GRANTS.
``(a) In General.--Of the amounts reserved by the Secretary
under section 127(a)(1)(A) for a fiscal year--
``(1) the Secretary shall use not less than 80
percent to award competitive grants under subsection
(b); and
``(2) the Secretary may use not more than 20 percent
to award discretionary grants under subsection (c).
``(b) Competitive Grants to States and Local Areas.--
``(1) Establishment.--From the funds described in
subsection (a)(1), the Secretary shall award
competitive grants to eligible entities to carry out
activities authorized under this section to assist
eligible youth in acquiring the skills, credentials and
employment experience necessary to succeed in the labor
market.
``(2) Eligible entities.--Grants under this
subsection may be awarded to States, local boards,
recipients of grants under section 166 (relating to
Native American programs), and public or private
entities (including consortia of such entities)
applying in conjunction with local boards.
``(3) Grant period.--The Secretary may make a grant
under this section for a period of 1 year and may renew
the grants for each of the 4 succeeding years.
``(4) Authority to require match.--The Secretary may
require that grantees under this subsection provide a
non-Federal share of the cost of activities carried out
under a grant awarded under this subsection.
``(5) Participant eligibility.--Youth ages 14 through
19 as of the time the eligibility determination is made
may be eligible to participate in activities provided
under this subsection.
``(6) Use of funds.--Funds under this subsection may
be used for activities that are designed to assist
youth in acquiring the skills, credentials and
employment experience that are necessary to succeed in
the labor market, including the activities identified
in section 129. The activities may include activities
such as--
``(A) training and internships for out-of-
school youth in sectors of the economy
experiencing or projected to experience high
growth;
``(B) after-school dropout prevention
activities for in-school youth;
``(C) activities designed to assist special
youth populations, such as court-involved youth
and youth with disabilities; and
``(D) activities combining remediation of
academic skills, work readiness training, and
work experience, and including linkages to
postsecondary education, apprenticeships, and
career-ladder employment.
``(7) Applications.--To be eligible to receive a
grant under this subsection, an eligible entity shall
submit an application to the Secretary at such time, in
such manner, and containing such information as the
Secretary may require, including--
``(A) a description of the activities the
eligible entity will provide to eligible youth
under this subsection and how the eligible
entity will collaborate with State and local
workforce investment systems established under
this title in the provisions of such
activities;
``(B) a description of the programs of
demonstrated effectiveness on which the
provision of the activities under subparagraph
(A) are based, and a description of how such
activities will expand the base of knowledge
relating to the provision of activities for
youth;
``(C) a description of the private and
public, and local and State resources that will
be leveraged to provide the activities
described under subparagraph (A) in addition to
the funds provided under this subsection and a
description of the extent of the involvement of
employers in the activities; and
``(D) the levels of performance the eligible
entity expects to achieve with respect to the
indicators of performance for youth specified
in section 136(b)(2)(A)(ii).
``(8) Factors for award.--
``(A) In general.--In awarding grants under
this subsection the Secretary shall consider--
``(i) the quality of the proposed
activities;
``(ii) the goals to be achieved;
``(iii) the likelihood of successful
implementation;
``(iv) the extent to which the
proposed activities are based on proven
strategies or the extent to which the
proposed activities will expand the
base of knowledge relating to the
provision of activities for eligible
youth;
``(v) the extent of collaboration
with the State and local workforce
investment systems in carrying out the
proposed activities;
``(vi) the extent of employer
involvement in the proposed activities;
``(vii) whether there are other
Federal and non-Federal funds available
for similar activities to the proposed
activities, and the additional State,
local, and private resources that will
be provided to carry out the proposed
activities;
``(viii) the quality of the proposed
activities in meeting the needs of the
eligible youth to be served; and
``(ix) the extent to which the
proposed activities will expand on
services provided under section 127.
``(B) Equitable geographic distribution.--In
awarding grants under this subsection the
Secretary shall ensure an equitable
distribution of such grants across
geographically diverse areas.
``(9) Evaluation.--The Secretary may reserve up to 5
percent of the funds described in subsection(a)(1) to
provide technical assistance to, and conduct
evaluations of the projects funded under this
subsection (using appropriate techniques as described
in section 172(c)).
``(c) Discretionary Grants for Youth Activities.--
``(1) In general.--From the funds described in
subsection(a)(2), the Secretary may award grants to
eligible entities to provide activities that will
assist youth in preparing for, and entering and
retaining, employment.
``(2) Eligible entities.--Grants under this
subsection may be awarded to public or private entities
that the Secretary determines would effectively carry
out activities relating to youth under this subsection.
``(3) Participant eligibility.--Youth ages 14 through
19 at the time the eligibility determination is made
may be eligible to participate in activities under this
subsection.
``(4) Use of funds.--Funds provided under this
subsection may be used for activities that will assist
youth in preparing for, and entering and retaining,
employment, including the activities described in
section 129 for out-of-school youth, activities
designed to assist in-school youth to stay in school
and gain work experience, and such other activities
that the Secretary determines are appropriate.
``(5) Applications.--To be eligible to receive a
grant under this subsection, an eligible entity shall
submit an application to the Secretary at such time, in
such manner, and containing such information as the
Secretary may require.
``(6) Additional requirements.--The Secretary may
require the provision of a non-Federal share for
projects funded under this subsection and may require
participation of grantees in evaluations of such
projects, including evaluations using the techniques as
described in section 172(c).''.
(b) Clerical Amendment.--The table of contents in section
1(b) is amended by amending the item related to section 169 to
read as follows:
``Sec. 169. Youth challenge grants.''.
SEC. 430. TECHNICAL ASSISTANCE.
Section 170 (29 U.S.C. 2915) is amended--
(1) by striking subsection (b);
(2) by striking
``(a) General Technical Assistance.--'';
(3) by redesignating paragraphs (1), (2), and (3) as
subsections (a), (b), and (c) respectively, and moving
such subsections 2 ems to the left;
(4) in subsection (a) (as redesignated by paragraph
(3))--
(A) by inserting ``the training of staff
providing rapid response services, the training
of other staff of recipients of funds under
this title, peer review activities under this
title, assistance regarding accounting and
program operation practices (when such
assistance would not be duplicative to
assistance provided by the State), technical
assistance to States that do not meet State
performance measures described in section
136,'' after ``localities,''; and
(B) by striking ``from carrying out
activities'' and all that follows up to the
period and inserting ``to implement the
amendments made by the Workforce Investment
Improvement Act of 2007''; and
(5) by inserting, after subsection (c) (as
redesignated by paragraph (3)), the following:
``(d) Best Practices Coordination.--The Secretary shall--
``(1) establish a system through which States may
share information regarding best practices with regard
to the operation of workforce investment activities
under this Act;
``(2) evaluate and disseminate information regarding
best practices and identify knowledge gaps; and
``(3) commission research under section 171(c) to
address knowledge gaps identified under paragraph
(2).''.
SEC. 431. DEMONSTRATION, PILOT, MULTISERVICE, RESEARCH AND MULTI-STATE
PROJECTS.
(a) Demonstration and Pilot Projects.--Section 171(b) (29
U.S.C. 2916(b)) is amended--
(1) in paragraph (1)--
(A) by striking ``Under a'' and inserting
``Consistent with the priorities specified in
the'';
(B) by amending subparagraphs (A) through (D)
to read as follows:
``(A) projects that assist national employers
in connecting with the workforce investment
system established under this title in order to
facilitate the recruitment and employment of
needed workers and to provide information to
such system on skills and occupations in
demand;
``(B) projects that promote the development
of systems that will improve the effectiveness
and efficiency of programs carried out under
this title;
``(C) projects that focus on opportunities
for employment in industries and sectors of
industries that are experiencing or are likely
to experience high rates of growth, including
those relating to information technology;
``(D) projects carried out by States and
local areas to test innovative approaches to
delivering employment-related services;'';
(C) by striking subparagraph (E);
(D) by redesignating subparagraphs (F) and
(G) as subparagraphs (E) and (F), respectively;
(E) in subparagraph (F) (as so redesignated,
by striking ``; and'' and inserting a
semicolon;
(F) by inserting after subparagraph (F) (as
so redesignated) the following:
``(G) projects carried out by States and
local areas to assist adults or out of school
youth in starting a small business, including
training and assistance in business or
financial management or in developing other
skills necessary to operate a business;''; and
(G) by amending subparagraph (H) to read as
follows:
``(H) projects that focus on opportunities
for employment in industries and sectors of
industries that are being transformed by
technology and innovation requiring new
knowledge or skill sets for workers, including
advanced manufacturing; and''; and
(2) in paragraph (2)--
(A) by striking subparagraph (B); and
(B) by redesignating subparagraph (C) as
subparagraph (B).
(b) Multiservice Projects.--Section 171(c)(2)(B) (29 U.S.C.
2916(c)(2)(B)) is amended to read as follows:
``(B) Net impact studies and reports.--The
Secretary shall conduct studies to determine
the net impacts of programs, services, and
activities carried out under this title. The
Secretary shall prepare and disseminate to
Congress and the public reports containing the
results of such studies.''.
SEC. 432. COMMUNITY-BASED JOB TRAINING.
Section 171(d) is amended to read as follows:
``(d) Community-Based Job Training.--
``(1) Demonstration project.--In addition to the
demonstration projects under subsection (b), the
Secretary may establish and implement a national
demonstration project designed to develop local
solutions to the workforce challenges facing high-
growth, high-skill industries with labor shortages, and
increase opportunities for workers to gain access to
employment in high-growth, high-demand occupations by
promoting the establishment of partnerships among
education entities, the workforce investment system,
and businesses in high-growth, high-skill industries.
``(2) Grants.--In carrying out the demonstration
project under this subsection, the Secretary shall
award competitive grants, in accordance with generally
applicable Federal requirements, to eligible entities
to carry out activities authorized under this
subsection.
``(3) Definitions.--
``(A) Eligible entity.--In this subsection,
the term `eligible entity' means a community
college or consortium of community colleges
that shall work in conjunction with--
``(i) the local workforce investment
system; and
``(ii) business or businesses in a
qualified industry or an industry
association in a qualified industry.
``(B) Qualified industry.--In this
subsection, the term `qualified industry' means
an industry or economic sector that is
projected to experience significant growth,
such as an industry and economic sector that--
``(i) is projected to add substantial
numbers of new jobs to the economy;
``(ii) has significant impact on the
economy;
``(iii) impacts the growth of other
industries and economic sectors;
``(iv) is being transformed by
technology and innovation requiring new
knowledge or skill sets for workers;
``(v) is a new or emerging industry
or economic sector that is projected to
grow; or
``(vi) has high-skilled occupations
and significant labor shortages in the
local area.
``(C) Community college.--As used in this
subsection, the term `community college' means
an institution of higher education, as defined
in section 101 of the Higher Education Act of
1965 (20 U.S.C. 1001), that provides not less
than a 2-year program that is acceptable for
full credit toward a bachelor's degree, or is a
tribally controlled college or university.
``(4) Authority to require non-federal share.--The
Secretary may require that recipients of grants under
this subsection provide a non-Federal share, from
either cash or noncash resources, of the costs of
activities carried out under a grant awarded under this
subsection.
``(5) Use of funds.--Grants awarded under this
subsection may be used for--
``(A) the development, by a community
college, in consultation with representatives
of qualified industries, of rigorous training
and education programs related to employment in
a qualified industry identified in the eligible
entity's application;
``(B) training of adults and dislocated
workers in the skills and competencies needed
to obtain or upgrade employment in a qualified
industry identified in the eligible entity's
application;
``(C) disseminating to adults and dislocated
workers, through the one-stop delivery system,
information on high-growth, high-demand
occupations in qualified industries;
``(D) placing, through the one-stop delivery
system, trained individuals into employment in
qualified industries; and
``(E) increasing the integration of community
colleges with activities of businesses and the
one-stop delivery system to meet the training
needs for qualified industries.
``(6) Applications.--To be eligible to receive a
grant under this subsection, an eligible entity shall
submit an application to the Secretary at such time, in
such manner, and containing such information as the
Secretary may require, including--
``(A) a description of the eligible entity
that will offer training under the grant;
``(B) an economic analysis of the local labor
market to identify high-growth, high-demand
industries, identify the workforce issues faced
by those industries, and potential participants
in programs funded under this subsection;
``(C) a description of the qualified industry
for which training will occur and the
availability of competencies on which training
will be based and how the grant will help
workers acquire the competencies and skills
necessary for employment;
``(D) an assurance that the application was
developed in consultation with the local board
or boards and businesses, including small
businesses, in the geographic area or areas
where the proposed grant will be used;
``(E) performance measures for the grant,
including expected number of individuals to be
trained in a qualified industry, the employment
and retention rates for such individuals in a
qualified industry, and earnings increases for
such individuals;
``(F) a description of how the activities
funded by the proposed grant will be
coordinated with activities provided through
the one-stop delivery system in the local area
or areas; and
``(G) a description of any local or private
resources that will support the activities
carried out under this subsection and allow the
entity to carry out and expand such activities
after the expiration of the grant.
``(7) Factors for award of grant.--
``(A) In general.--In awarding grants under
this subsection the Secretary shall consider--
``(i) the extent of public and
private collaboration, including
existing partnerships among industries,
community colleges, and the public
workforce investment system;
``(ii) the extent to which the grant
will provide job seekers with
employment opportunities in high-
growth, high-demand occupations;
``(iii) the extent to which the grant
will expand the eligible entity and
local one-stop delivery system's
capacity to be demand-driven and
responsive to local economic needs;
``(iv) the extent to which local
businesses commit to hire or retain
individuals who receive training
through the grant; and
``(v) the extent to which the
eligible entity commits to make any
newly developed products, such as
competencies or training curriculum,
available for distribution nationally.
``(B) Leveraging of resources.--In awarding
grants under this subsection, the Secretary
shall also consider--
``(i) the extent to which local or
private resources, in addition to the
funds provided under this subsection,
will be made available to support the
activities carried out under this
subsection; and
``(ii) the ability of an eligible
entity to continue to carry out and
expand such activities after the
expiration of the grant.
``(C) Distribution of grants.--In awarding
grants under this subsection the Secretary
shall ensure an equitable distribution of such
grants across geographically diverse areas.
``(8) Performance accountability and evaluation.--
``(A) Performance accountability.--The
Secretary shall require an eligible entity that
receives a grant under this subsection to
report to the Secretary on the employment
outcomes obtained by individuals receiving
training under this subsection using the
indicators of performance identified in the
eligible entity's grant application.
``(B) Evaluation.--The Secretary may require
that an eligible entity that receives a grant
under this subsection participate in an
evaluation of activities carried out under this
subsection, including an evaluation using the
techniques described in section 172(c).''.
SEC. 433. EVALUATIONS.
(a) Impact Analysis.--Section 172(a)(4) (29 U.S.C.
2917(a)(4)) is amended to read as follows:
``(4) the impact of receiving services and not
receiving services under such programs and activities
on the community, businesses, and individuals;''; and
(b) Techniques.--Section 172(c) (29 U.S.C. 2917(c)) is
amended to read as follows:
``(c) Techniques.--Evaluations conducted under this section
shall utilize appropriate and rigorous methodology and research
designs, including the use of control groups chosen by
scientific random assignment methodologies, quasi-experimental
methods, impact analysis and the use of administrative data.
The Secretary shall conduct an impact analysis, as described in
subsection (a)(4), of the formula grant programs under subtitle
B not later than 2010, and thereafter shall conduct such an
analysis not less than once every four years.''.
SEC. 434. NATIONAL DISLOCATED WORKER GRANTS.
(a) In General.--Section 173 (29 U.S.C. 2916) is amended--
(1) by amending the designation and heading to read
as follows:
``SEC. 173. NATIONAL DISLOCATED WORKER GRANTS.'';
and
(2) in subsection (a)--
(A) by striking ``national emergency grants''
in the matter preceding paragraph (1) and
inserting ``national dislocated worker
grants''; and
(B) in paragraph (1), by striking
``subsection (c)'' and inserting ``subsection
(b)''.
(3) by striking subsections (b) and (e) and
redesignating subsections (c), (d), (f), and (g) as
subsections (b) through (e), respectively;
(4) in subsection (b)(1)(B) as so redesignated), by
striking ``, and other entities'' and all that follows
and inserting a period; and
(5) in subsection (b)(2)(A) (as so redesignated)--
(A) in clause (iii), by striking ``; or'' and
inserting a semicolon;
(B) in clause (iv)(IV) by striking the period
and inserting ``; or''; and
(C) by inserting at the end the following:
``(v) is the spouse of a member of
the Armed Forces who is on active duty
or full-time National Guard duty, or
who was recently separated from such
duties, and such spouse is in need of
employment and training assistance to
obtain or retain employment.''.
(b) Conforming Amendment.--The table of contents in section
1(b) is amended by amending the item related to section 173 to
read as follows:
``Sec. 173. National dislocated worker grants.''.
SEC. 435. AUTHORIZATION OF APPROPRIATIONS FOR NATIONAL ACTIVITIES.
(a) In General.--Section 174(a)(1) (29 U.S.C. 2919(a)(1)) is
amended by striking ``1999 through 2003'' and inserting ``2008
through 2012''.
(b) Reservations.--Section 174(b) is amended to read as
follows:
``(b) Technical Assistance; Demonstration and Pilot Projects;
Evaluations; Incentive Grants.--
``(1) Demonstration and pilot projects.--There are
authorized to be appropriated to carry out section 171,
such sums as may be necessary for fiscal years 2008
through 2012.
``(2) Technical assistance, evaluations.--There are
authorized to be appropriated to carry out section 170,
section 172, and section 136 such sums as may be
necessary for each of fiscal years 2008 through
2012.''.
SEC. 436. REQUIREMENTS AND RESTRICTIONS.
(a) In General.--Section 181(c)(2)(A) (29 U.S.C.
2931(c)(2)(A)) is amended in the matter preceding clause (i) by
striking ``shall'' and inserting ``may''.
(b) Limitations.--Section 181(e) (29 U.S.C. 2931(e)) is
amended by striking ``training for'' and inserting ``the entry
into employment, retention in employment, or increases in
earnings of''.
(c) Salary Cap.--Section 181 (29 U.S.C. 2931) is further
amended by adding at the end the following new subsection:
``(g) Salary and Bonus Limitation.--No funds provided under
this title shall be used by a recipient or subrecipient of such
funds to pay the salary and bonuses of an individual, either as
direct costs or indirect costs, at a rate in excess of Level II
of the Federal Executive Pay Schedule (5 U.S.C. 5313). This
limitation shall not apply to vendors providing goods and
services as defined in OMB Circular A-133. Where States are
recipients of such funds, States may establish a lower limit
for salaries and bonuses of those receiving salaries and
bonuses from subrecipients of such funds, taking into account
factors including the relative cost-of-living in the State, the
compensation levels for comparable State or local government
employees, and the size of the organizations that administer
the programs.''.
(d) Reports to Congress.--Section 185 (29 U.S.C. 2935) is
amended--
(1) in subsection (c)--
(A) in paragraph (2), by striking ``and''
after the semicolon;
(B) in paragraph (3), by striking the period
and inserting ``; and''; and
(C) by adding at the end the following:
``(4) shall have the option to submit or disseminate
electronically any reports, records, plans, or any
other data that are required to be collected or
disseminated under this title.''; and
(2) in paragraph (e)(2), by inserting ``and the
Secretary shall submit to the Committee on Education
and Labor of the House of Representatives and the
Committee on Health, Education, Labor, and Pensions of
the Senate,'' after ``Secretary,''.
SEC. 437. NONDISCRIMINATION.
Section 188(a)(2) (29 U.S.C. 2931(a)(2)) is amended to read
as follows:
``(2) Prohibition of discrimination regarding
participation, benefits, and employment.--
``(A) In general.--Except as provided in
subparagraph (B), no individual shall be
excluded from participation in, denied the
benefits of, subjected to discrimination under,
or denied employment in the administration of
or in connection with, any such program or
activity because of race, color, religion, sex
(except as otherwise permitted under title IX
of the Education Amendments of 1972), national
origin, age, disability, or political
affiliation or belief.
``(B) Exemption for religious
organizations.--Subparagraph (A) shall not
apply to a recipient of financial assistance
under this title that is a religious
corporation, association, educational
institution, or society, with respect to the
employment of individuals of a particular
religion to perform work connected with the
carrying on by such corporation, association,
educational institution, or society of its
activities. Such recipients shall comply with
the other requirements contained in
subparagraph (A).''.
SEC. 438. ADMINISTRATIVE PROVISIONS.
(a) Program Year.--Section 189(g)(1) (29 U.S.C. 2939(g)(1))
is amended to read as follows:
``(1) In general.--Appropriations for any fiscal year
for programs and activities carried out under this
title shall be available for obligation only on the
basis of a program year. The program year shall begin
on July 1 in the fiscal year for which the
appropriation is made.''.
(b) Availability.--Section 189(g)(2) (29 U.S.C. 2939(g)(2))
is amended by striking ``each State'' and inserting ``each
recipient''.
(c) General Waivers.--Section 189(i)(4) (29 U.S.C.
2939(i)(4)) is amended--
(1) in subparagraph (A)--
(A) in the matter preceding clause (i), by
inserting ``, or in accordance with
subparagraph (D)'' after ``subparagraph (B)'';
and
(B) by striking clause (ii), the clause (i)
designation and the dash preceding such
designation, and moving the remaining text
flush with the preceding matter; and
(2) by adding the following subparagraph:
``(D) Expedited process for extending
approved waivers to additional states.--In lieu
of the requirements of subparagraphs (B) and
(C), the Secretary may establish an expedited
procedure for the purpose of extending to
additional States the waiver of statutory or
regulatory requirements that have been approved
for a State pursuant to a request under
subparagraph (B). Such procedure shall ensure
that the extension of such waivers to
additional States are accompanied by
appropriate conditions relating the
implementation of such waivers.''.
SEC. 439. STATE LEGISLATIVE AUTHORITY.
Section 191is amended--
(1) in subsection (a), by striking ``consistent with
the provisions of this title'' and inserting
``consistent with State law and the provisions of this
title''; and
(2) in subsection (a), by striking ``consistent with
the terms and conditions required under this title''
and inserting ``consistent with State law and the terms
and conditions required under this title''.
SEC. 440. WORKFORCE INNOVATION IN REGIONAL ECONOMIC DEVELOPMENT.
(a) Workforce Innovation in Regional Economic Development.--
Section 192 (29 U.S.C. 2942) is amended to read as follows:
``SEC. 192. WORKFORCE INNOVATION IN REGIONAL ECONOMIC DEVELOPMENT.
``(a) Workforce Innovation in Regional Economic Development
Plans.--
``(1) In general.--The Secretary, in cooperation with
other federal agency heads responsible for the
administration of programs included in plans submitted
under this subsection, may approve Workforce Innovation
in Regional Economic Development (in this subsection
referred to as WIRED) plans submitted by a State
pursuant to paragraph (2) to support the development of
regional economies in order to foster economic
development, expand employment, and advancement
opportunities for workers and to promote the creation
of high-skill and high-wage opportunities.
``(2) Contents of plan.--To have a WIRED plan
approved under this subsection, a State and the region
or regions identified in subparagraph (A) shall jointly
submit a plan to the Secretary at such time, in such
manner, and containing such information as the
Secretary may require, including--
``(A) the identification of the multi-county
region or regions that is to be the focus of
the activities provided under the plan,
including identification of the communities in
the region that share common characteristics,
and a description of why the selected area
comprises a regional economy;
``(B) a description of the broad-based
regional partnership that has been created for
the region identified in subparagraph (A)
representing the major assets of the region,
consistent with the requirements of paragraph
(3), and that will assist in developing the
economic vision described in subparagraph (D),
the strategies described in subparagraph (E),
and provide a forum for regional economic
decision-making, including a description of the
partnership's involvement, particularly that of
representatives of affected local boards and
chief elected officials, in the development of
the plan;
``(C) a description of the assets of the
region identified in subparagraph (A), based on
a regional assessment, and identification of
the strengths, weaknesses, opportunities, and
risks based on those assets;
``(D) a description of an economic vision for
the region identified in subparagraph (A),
based on the identified strengths and assets
described in subparagraph (C), and evidence of
support for that vision from the broad-based
regional partnership described in subparagraph
(B);
``(E) a description of the talent development
and related strategies that provide a blueprint
for how to achieve the economic vision for the
region as described in subparagraph (D),
including the activities to be carried out
under this subsection, consistent with
paragraphs (5) and (6), and the identification
of specific goals associated with those
strategies;
``(F) information on the workforce
development programs to be integrated in the
region, in accordance with the requirements of
paragraph (4), into an integrated workforce
development program, including--
``(i) identification of the programs
to be integrated;
``(ii) the amount and proportion of
the resources available to the region
under each of the integrated programs
to carry out the strategies described
in subparagraph (E);
``(iii) a description of how these
resources will be used to accomplish
the vision identified in subparagraph
(D), including the services to be
provided and how such services will be
provided, consistent with clause (iv)
and paragraph (5);
``(iv) assurances that in carrying
out the wired plan--
``(I) the region, through the
integrated workforce
development program, will
maintain a local workforce
investment board, or a regional
workforce investment board,
that is substantially similar
to the local workforce
investment boards required
under section 117 of this Act,
that such board will carry out
functions that are
substantially similar to those
described under section 117(d),
and, that such region shall
submit to the State for
approval a local plan for the
region that is substantially
similar to the local plans
required under section 118 of
this Act;
``(II) the region, through
the integrated workforce
development program, will
maintain a one-stop delivery
system that is consistent with
the requirements of section 121
of this Act;
``(III) the region, through
the integrated workforce
development program, will serve
populations consistent with the
populations served by the
programs being integrated, and
will provide universal access
to work ready services as
described in section 134(d)(2)
of this Act;
``(IV) the region, in
carrying out the integrated
workforce development program,
will comply with the veterans'
priority of service requirement
under section 4215 of title 38,
United States Code;
``(V) of the funds expended
under the integrated workforce
development program each year,
not more than 10 percent of
such funds will be expended on
the costs of administration (as
defined by the Secretary);
``(VI) the services provided
under the integrated workforce
development program will be
coordinated with employment-
related programs not included
under the integrated workforce
program;
``(VII) the region, in
carrying out the integrated
workforce development program,
will comply with requirements
under this title relating to
wage and labor standards
(including nondisplacement
provisions), grievance
procedures and judicial review,
and nondiscrimination;
``(G) an assurance that each local workforce
board and chief elected official included in
the region that will carry out the integrated
workforce development plan has approved the
plan;
``(H) information on the community and
economic development programs, if any, that
will provide a portion of funds that will be
integrated to carry out the strategies
described in subparagraph (E), in accordance
with the requirements of paragraph (6),
including--
``(i) identification of the included
community and economic development
programs;
``(ii) the amount and proportion of
the resources available to the State
under each such program that will be
used in the region to carry out the
strategies described in subparagraph
(E);
``(iii) a description of how these
resources will be used to assist in
accomplishing the vision identified in
subparagraph (D), including the
activities to be carried out;
``(I) in addition to the resources described
under subparagraphs (F) and (G), identification
of other resources that will be used to support
the strategies of the region described in
subparagraph (E), from a wide range of sources,
including foundations, private investment such
as venture capital, and federal, state, and
local governments.
``(3) Broad-based regional partnership.--For purposes
of this subsection, a broad-based regional
partnership--
``(A) shall include--
``(i) representatives from each of
the local workforce investment systems
in the region identified under
paragraph (2)(A), such as the
chairpersons or executive directors of
affected local workforce investment
boards in such region;
``(ii) representatives of the
education system in the region
identified under paragraph (2)(A),
including representatives from each of
the following:
``(I) The K-12 public school
systems;
``(II) Community colleges;
and
``(III) Four-year educational
institutions;
``(iii) representatives of businesses
and industry associations in the region
identified under paragraph (2)(A);
``(iv) the chief elected officials
from each of the affected local areas
identified under paragraph (2)(A); and
``(v) representatives of local and
regional economic development agencies
in the region identified under
paragraph (2)(A); and
``(B) may include--
``(i) representatives of the
philanthropic community;
``(ii) representatives of
postsecondary education and training
providers in addition to those
described in subparagraph (A)(ii);
``(iii) representatives of private
investment entities such as seed and
venture capital organizations; investor
networks; and entrepreneurs;
``(iv) representatives of faith and
community-based organizations; and
``(v) representatives of such other
Federal, state or local entities and
organizations that may enhance the
carrying out of the activities of the
partnership.
``(4) Integration of workforce development services
authorized.--
``(A) Authorization for integration.--In
carrying out this subsection, the Secretary of
Labor, in cooperation with the federal agency
heads responsible for the administration of the
workforce development programs described in
subparagraph (D) that are included in the WIRED
plan submitted by the State, shall, upon the
approval of the plan submitted under paragraph
(2), authorize the State to integrate programs
as described in subparagraph (B).
``(B) Integration.--The authorization shall
give the State the authority to integrate, in
accordance with such approved plan, the
federally-funded programs described in
subparagraph (D) that are included in the
approved plan, in a manner that integrates
those programs into a single, coordinated,
comprehensive workforce development program to
achieve the economic vision identified in such
plan for the region.
``(C) Effect on program requirements.--The
provisions of the approved grant application
and the requirements of this subsection shall
supersede the requirements of the statutes
authorizing the programs included for
integration in such approved plan, except as
otherwise specified in this subsection.
``(D) Included workforce development
programs.--
``(i) Mandatory programs.--A WIRED
plan authorized under this subsection
shall include the workforce investment
activities for adults authorized under
chapter 5 of subtitle B.
``(ii) Additional programs.--In
addition to the integration of the
programs described in clause (i) into a
single program, a WIRED plan may
include integration of one or more of
the following programs as part of such
single program--
``(I) the program of
workforce investment activities
for youth authorized under
chapter 4 of subtitle B; or
``(II) any of the other
required one-stop partner
programs and activities
described in section
121(b)(1)(B) of this Act.
``(5) Workforce development activities to be carried
out under wired plan.--The workforce development
activities carried out under a WIRED plan may include--
``(A) job training and related activities for
workers to assist them in gaining the skills
and competencies needed to obtain or upgrade
employment in industries or economic sectors
projected to experience significant growth in
the region identified in paragraph (2)(A),
including--
``(i) activities supporting talent
development related to entrepreneurship
and small business development; and
``(ii) the purchase of equipment to
train job seekers and workers for high-
growth occupations;
``(B) activities to enhance the training and
related activities described in subparagraph
(A) and to promote workforce development in the
region identified in paragraph (2)(A),
including--
``(i) the development and
implementation of model activities,
such as developing appropriate
curricula to build core competencies
and train workers in the region;
``(ii) identifying and disseminating
career and skill information relating
to the region;
``(iii) developing or purchasing
regional data tools or systems to
deepen understanding of the regional
economy and labor market; and
``(iv) integrated regional planning,
such as increasing the integration of
community and technical college
activities with activities of
businesses and the public workforce
investment system to meet the training
needs of high growth industries in the
region.
``(C) appropriate employment-related
activities and services authorized under the
workforce development programs that are
integrated under the plan in accordance with
paragraphs (2)(F) and (4) that will assist
achieving the economic vision described in
paragraph (2)(D) and in implementing the
strategies described in paragraph (2)(E).
``(6) Integration of community and economic
development funds authorized.--
``(A) Authorization for integration of
funds.--In carrying out this subsection, the
Secretary of Labor, in cooperation with the
federal agency heads responsible for the
administration of the community and economic
development programs described in subparagraph
(D) that are included in the WIRED plan
submitted by the State, shall, upon the
approval of the plan submitted under paragraph
(2), authorize the State to integrate the
portion of the funds from such programs to
assist in implementing such plans.
``(B) Integration.--The authorization shall
give the State the authority to integrate, in
accordance with such approved plan, funds
provided under programs identified from
subparagraph (D) to carry out the community and
economic development activities described in
paragraph (2)(G).
``(C) Effect on program requirements.--The
integrated funds may be used, consistent with
the description contained in paragraph (2)(G),
to carry out any of the activities authorized
under any the programs described in
subparagraph (D) that are included in the plan.
``(D) Included community and economic
development programs.--The funds that may be
integrated under this paragraph are funds
provided under--
``(i) Community Development Block
Grants authorized under title I of the
Housing and Community Development Act
of 1974 (42 U.S.C. 5301-5321);
``(ii) grants authorized under the
Community Services Block Grant Act (42
U.S.C. 9901 et seq.);
``(iii) Public Works and Economic
Development Grants authorized under
section 201 of the Public Works and
Economic Development Act of 1965 (42
U.S.C. 3141);
``(iv) Rural Business Enterprise
Grants authorized under the
Consolidated Farm and Rural Development
Act (7 U.S.C. 1932);
``(v) Rural Business Opportunity
Grants authorized under section
741(a)(11) of the Federal Agriculture
Improvement and Reform Act of 1996 (42
U.S.C. 1926(a)(11);
``(vi) grants authorized under the
Brownfields Economic Development
Initiative; and
``(vii) Rural Housing and Economic
Development grants.
``(7) Special rule.--If a State elects not to submit
a WIRED plan described in paragraph (2) for approval or
does not have a plan approved under paragraph (2), the
Secretary may approve a WIRED plan submitted by a local
workforce investment board or a regional workforce
investment board that serves a region within such
State, if the plan meets all other requirements of this
section.
``(8) Performance measures and reporting.--
``(A) Performance measures.--The Secretary
shall establish performance measures that will
be used to evaluate the effectiveness of
activities carried out under this subsection
and shall require such entities to report to
the Secretary on the employment outcomes
obtained by individuals receiving training
under this subsection using those core
indicators of performance described in section
136(b)(2).
``(B) Reporting.--Each State with an approved
plan under this subsection shall ensure that
records are maintained and reports are
submitted, in such form and containing such
information, as the Secretary may require
regarding the performance of programs and
activities carried out under this subsection.
``(9) Technical assistance and evaluation.--
``(A) Technical assistance.--The Secretary
shall provide such staff training, technical
assistance, and other activities as the
Secretary deems appropriate to support the
implementation of this subsection.
``(B) Evaluation.--The Secretary may require
that States with an approved plan under this
subsection to participate in an evaluation of
activities carried out under this subsection,
including an evaluation using the techniques
described in section 172(c).
``(10) Plan review.--Upon receipt of a WIRED plan
from the Governor, the Secretary shall consult with the
Federal agency head responsible for the administration
of any of the programs included in the plan pursuant to
paragraph (4) or (6).
``(11) Federal responsibilities.--
``(A) Interagency memorandum of
understanding.--Within 90 days following the
date of enactment of this subsection, the
Secretary and the federal agency heads
responsible for programs that could be included
in a plan approved under this subsection
pursuant to paragraph (4) or (6) shall enter
into an interdepartmental memorandum of
agreement providing for the implementation of
WIRED plans with respect to the integration of
programs and funds administered by each
Secretary.
``(B) Interagency funds transfers
authorized.--The Secretary and the federal
agency heads responsible for the programs that
are included in a plan approved under paragraph
(4) or (6) are authorized to take such action
as may be necessary to provide for intra-agency
or interagency transfers of funds otherwise
available to a State in order to further the
purposes of this subsection.
``(12) Administration of funds.--
``(A) Separate records not required.--Nothing
in this subsection shall be construed as
requiring the region to maintain separate
records tracing any services or activities
conducted under an approved WIRED plan to the
programs under which funds were originally
authorized, nor shall the State be required to
allocate expenditures among such programs.
``(B) Single audit act.--Nothing in this
section shall be construed to interfere with
the ability of the Secretary to fulfill the
responsibilities for the safeguarding of
Federal funds pursuant to the Single Audit Act
of 1984.
``(b) Authority To Carry Out Additional WIRED Activities
Under WIA.--
``(1) Authorization for use of certain funds under
wia.--Funds available under sections 128(a), 133(a),
171, and 173 of this Act may be used by recipients and
subrecipients of those funds for WIRED activities, as
defined in paragraph (2), in addition to the other
activities for which such funds are authorized to be
used.
``(2) Definition.--For purposes of this subsection,
WIRED activities include--
``(A) WIRED planning activities, including--
``(i) defining the regional economy;
``(ii) creating a broad-based
regional partnership that assists in
developing the economic vision
described in clause (iv), the
strategies described in clause (v), and
that provides a forum for regional
economic decision-making;
``(iii) conducting an assessment of
the regional economy to map the assets
of a region and identify the strengths,
weaknesses, opportunities and risks
based on those assets;
``(iv) developing an economic vision
based on those strengths and assets;
``(v) developing strategies and
corresponding implementation plans that
identify specific goals and tasks and
provides a blueprint for how to achieve
the economic vision for the region; and
``(vi) identifying resources to
support the plan of the region;
``(B) job training and related activities for
workers to assist them in gaining the skills
and competencies needed to obtain or upgrade
employment in industries or economic sectors
projected to experience significant growth in
the region, including--
``(i) activities supporting talent
development related to entrepreneurship
and small business development in the
region; and
``(ii) the purchase of equipment to
train job seekers and workers for high-
growth occupations in the region; and
``(C) activities to enhance training and
related activities and to promote workforce
development in the region, including--
``(i) the development and
implementation of model activities,
such as developing appropriate
curricula to build core competencies
and train workers in the region;
``(ii) identifying and disseminating
career and skill information relating
to the region;
``(iii) developing or purchasing
regional data tools or systems to
deepen understanding of the regional
economy and labor market; and
``(iv) integrated regional planning,
such as increasing the integration of
community and technical college
activities with activities of
businesses and the public workforce
investment system to meet the training
needs of businesses in the region.''.
SEC. 441. GENERAL PROGRAM REQUIREMENTS.
Section 195 (29 U.S.C. 2945) is amended--
(1) in paragraph (7) by inserting at the end the
following:
``(D) Funds received by a public or private
nonprofit entity that are not described in
paragraph (B), such as funds privately raised
from philanthropic foundations, businesses, or
other private entities, shall not be considered
to be income under this title and shall not be
subject to the requirements of this section.'';
(2) by adding at the end the following new
paragraphs:
``(14) Funds provided under this title shall not be
used to establish or operate stand-alone fee-for-
service enterprises that compete with private sector
employment agencies within the meaning of section
701(c) of the Civil Rights Act of 1964 (42 U.S.C.
2000e(c)). For purposes of this paragraph, such an
enterprise does not include one-stop centers.
``(15) Any report required to be submitted to
Congress, or to a Committee of Congress, under this
title shall be submitted to both the chairmen and
ranking minority members of the Committee on Education
and Labor of the House of Representatives and the
Committee on Health, Education, Labor, and Pensions of
the Senate.''.
Subtitle B--Adult Education, Basic Skills, and Family Literacy
Education
SEC. 451. TABLE OF CONTENTS.
The table of contents in section 1(b) is amended by amending
the items relating to title II to read as follows:
``TITLE II--ADULT EDUCATION, BASIC SKILLS, AND FAMILY LITERACY EDUCATION
``Sec. 201. Short title.
``Sec. 202. Purpose.
``Sec. 203. Definitions.
``Sec. 204. Home schools.
``Sec. 205. Authorization of appropriations.
``Chapter 1--Federal Provisions
``Sec. 211. Reservation of funds; grants to eligible agencies;
allotments.
``Sec. 212. Performance accountability system.
``Sec. 213. Incentive grants for States.
``Chapter 2--State Provisions
``Sec. 221. State administration.
``Sec. 222. State distribution of funds; matching requirement.
``Sec. 223. State leadership activities.
``Sec. 224. State plan.
``Sec. 225. Programs for corrections education and other
institutionalized individuals.
``Chapter 3--Local Provisions
``Sec. 231. Grants and contracts for eligible providers.
``Sec. 232. Local application.
``Sec. 233. Local administrative cost limits.
``Chapter 4--General Provisions
``Sec. 241. Administrative provisions.
``Sec. 242. National Institute for Literacy.
``Sec. 243. National leadership activities.''.
SEC. 452. AMENDMENT.
Title II (29 U.S.C. 2901 et seq.) is amended to read as
follows:
``TITLE II--ADULT EDUCATION, BASIC SKILLS, AND FAMILY LITERACY
EDUCATION
``SEC. 201. SHORT TITLE.
``This title may be cited as the `Adult Education, Basic
Skills, and Family Literacy Education Act'.
``SEC. 202. PURPOSE.
``It is the purpose of this title to provide instructional
opportunities for adults seeking to improve their literacy
skills, including their basic reading, writing, speaking, and
math skills, and support States and local communities in
providing, on a voluntary basis, adult education, basic skills,
and family literacy education programs, in order to--
``(1) increase the literacy of adults, including the
basic reading, writing, speaking, and math skills, to a
level of proficiency necessary for adults to obtain
employment and self-sufficiency and to successfully
advance in the workforce;
``(2) assist adults in the completion of a secondary
school education (or its equivalent) and the transition
to a postsecondary educational institution;
``(3) assist adults who are parents to enable them to
support the educational development of their children
and make informed choices regarding their children's
education including, through instruction in basic
reading, writing, speaking, and math skills; and
``(4) assist immigrants who are not proficient in
English in improving their reading, writing, speaking,
and math skills and acquiring an understanding of the
American free enterprise system, individual freedom,
and the responsibilities of citizenship.
``SEC. 203. DEFINITIONS.
``In this title:
``(1) Adult education, basic skills, and family
literacy education programs.--The term `adult
education, basic skills, and family literacy education
programs' means a sequence of academic instruction and
educational services below the postsecondary level that
increase an individual's ability to read, write, and
speak in English and perform mathematical computations
leading to a level of proficiency equivalent to at
least a secondary school completion that is provided
for individuals--
``(A) who are at least 16 years of age;
``(B) who are not enrolled or required to be
enrolled in secondary school under State law;
and
``(C) who--
``(i) lack sufficient mastery of
basic reading, writing, speaking, and
math skills to enable the individuals
to function effectively in society;
``(ii) do not have a secondary school
diploma, General Educational
Development credential (GED), or other
State-recognized equivalent and have
not achieved an equivalent level of
education; or
``(iii) are unable to read, write, or
speak the English language.
``(2) Eligible agency.--The term `eligible agency'--
``(A) means the primary entity or agency in a
State or an outlying area responsible for
administering or supervising policy for adult
education, basic skills, and family literacy
education programs in the State or outlying
area, respectively, consistent with the law of
the State or outlying area, respectively; and
``(B) may be the State educational agency,
the State agency responsible for administering
workforce investment activities, or the State
agency responsible for administering community
or technical colleges.
``(3) Eligible provider.--The term `eligible
provider' means--
``(A) a local educational agency;
``(B) a community-based or faith-based
organization of demonstrated effectiveness;
``(C) a volunteer literacy organization of
demonstrated effectiveness;
``(D) an institution of higher education;
``(E) a public or private educational agency;
``(F) a library;
``(G) a public housing authority;
``(H) an institution that is not described in
any of subparagraphs (A) through (G) and has
the ability to provide adult education, basic
skills, and family literacy education programs
to adults and families; or
``(I) a consortium of the agencies,
organizations, institutions, libraries, or
authorities described in any of subparagraphs
(A) through (H).
``(4) English language acquisition program.--The term
`English language acquisition program' means a program
of instruction designed to help individuals with
limited English proficiency achieve competence in
reading, writing, and speaking the English language.
``(5) Essential components of reading instruction.--
The term `essential components of reading instruction'
has the meaning given to that term in section 1208 of
the Elementary and Secondary Education Act of 1965.
``(6) Family literacy education program.--The term
`family literacy education program' means an
educational program that--
``(A) assists parents and students, on a
voluntary basis, in achieving the purposes of
this title as described in section 202; and
``(B) is of sufficient intensity in terms of
hours and of sufficient duration to make
sustainable changes in a family, is based upon
scientifically based research, and, for the
purpose of substantially increasing the ability
of parents and children to read, write, and
speak English, integrates--
``(i) interactive literacy activities
between parents and their children;
``(ii) training for parents regarding
how to be the primary teacher for their
children and full partners in the
education of their children;
``(iii) parent literacy training that
leads to economic self-sufficiency; and
``(iv) an age-appropriate education
to prepare children for success in
school and life experiences.
``(7) Governor.--The term `Governor' means the chief
executive officer of a State or outlying area.
``(8) Individual with a disability.--
``(A) In general.--The term `individual with
a disability' means an individual with any
disability (as defined in section 3 of the
Americans with Disabilities Act of 1990).
``(B) Individuals with disabilities.--The
term `individuals with disabilities' means more
than one individual with a disability.
``(9) Individual with limited english proficiency.--
The term `individual with limited English proficiency'
means an adult or out-of-school youth who has limited
ability in reading, writing, speaking, or understanding
the English language, and--
``(A) whose native language is a language
other than English; or
``(B) who lives in a family or community
environment where a language other than English
is the dominant language.
``(10) Institution of higher education.--The term
`institution of higher education' has the meaning given
to that term in section 101 of the Higher Education Act
of 1965.
``(11) Literacy.--The term `literacy' means an
individual's ability to read, write, and speak in
English, compute, and solve problems at a level of
proficiency necessary to obtain employment and to
successfully make the transition to postsecondary
education.
``(12) Local educational agency.--The term `local
educational agency' has the meaning given to that term
in section 9101 of the Elementary and Secondary
Education Act of 1965.
``(13) Outlying area.--The term `outlying area' has
the meaning given to that term in section 101 of this
Act.
``(14) Postsecondary educational institution.--The
term `postsecondary educational institution' means--
``(A) an institution of higher education that
provides not less than a 2-year program of
instruction that is acceptable for credit
toward a bachelor's degree;
``(B) a tribally controlled community
college; or
``(C) a nonprofit educational institution
offering certificate or apprenticeship programs
at the postsecondary level.
``(15) Reading.--The term `reading' has the meaning
given to that term in section 1208 of the Elementary
and Secondary Education Act of 1965.
``(16) Scientifically based research.--The term
`scientifically based research' has the meaning given
to that term in section 9101 of the Elementary and
Secondary Education Act of 1965.
``(17) Secretary.--The term `Secretary' means the
Secretary of Education.
``(18) State.--The term `State' means each of the
several States of the United States, the District of
Columbia, and the Commonwealth of Puerto Rico.
``(19) State educational agency.--The term `State
educational agency' has the meaning given to that term
in section 9101 of the Elementary and Secondary
Education Act of 1965.
``(20) Workplace literacy program.--The term
`workplace literacy program' means an educational
program that is offered in collaboration between
eligible providers and employers or employee
organizations for the purpose of improving the
productivity of the workforce through the improvement
of reading, writing, speaking, and math skills.
``SEC. 204. HOME SCHOOLS.
``Nothing in this title shall be construed to affect home
schools, whether or not a home school is treated as a home
school or a private school under State law, or to compel a
parent engaged in home schooling to participate in an English
language acquisition program, a family literacy education
program, or an adult education, basic skills, and family
literacy education program.
``SEC. 205. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
title $590,127,000 for fiscal year 2008 and such sums as may be
necessary for fiscal years 2009 through 2012.
``CHAPTER 1--FEDERAL PROVISIONS
``SEC. 211. RESERVATION OF FUNDS; GRANTS TO ELIGIBLE AGENCIES;
ALLOTMENTS.
``(a) Reservation of Funds.--From the sums appropriated under
section 205 for a fiscal year, the Secretary--
``(1) shall reserve up to 1.72 percent for incentive
grants under section 213;
``(2) shall reserve 1.75 percent to carry out section
242; and
``(3) shall reserve up to 1.55 percent to carry out
section 243.
``(b) Grants to Eligible Agencies.--
``(1) In general.--From the sums appropriated under
section 205 and not reserved under subsection (a) for a
fiscal year, the Secretary shall award a grant to each
eligible agency having a State plan approved under
section 224 in an amount equal to the sum of the
initial allotment under subsection (c)(1) and the
additional allotment under subsection (c)(2) for the
eligible agency for the fiscal year, subject to
subsections (f) and (g).
``(2) Purpose of grants.--The Secretary may award a
grant under paragraph (1) only if the eligible agency
involved agrees to expend the grant in accordance with
the provisions of this title.
``(c) Allotments.--
``(1) Initial allotments.--From the sums appropriated
under section 205 and not reserved under subsection (a)
for a fiscal year, the Secretary shall allot to each
eligible agency having a State plan approved under
section 224--
``(A) $100,000, in the case of an eligible
agency serving an outlying area; and
``(B) $250,000, in the case of any other
eligible agency.
``(2) Additional allotments.--From the sums
appropriated under section 205, not reserved under
subsection (a), and not allotted under paragraph (1),
for a fiscal year, the Secretary shall allot to each
eligible agency that receives an initial allotment
under paragraph (1) an additional amount that bears the
same relationship to such sums as the number of
qualifying adults in the State or outlying area served
by the eligible agency bears to the number of such
adults in all States and outlying areas.
``(d) Qualifying Adult.--For the purpose of subsection
(c)(2), the term `qualifying adult' means an adult who--
``(1) is at least 16 years of age;
``(2) is beyond the age of compulsory school
attendance under the law of the State or outlying area;
``(3) does not have a secondary school diploma,
General Educational Development credential (GED), or
other State-recognized equivalent; and
``(4) is not enrolled in secondary school.
``(e) Special Rule.--
``(1) In general.--From amounts made available under
subsection (c) for the Republic of Palau, the Secretary
shall award grants to Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, or the
Republic of Palau to carry out activities described in
this title in accordance with the provisions of this
title as determined by the Secretary.
``(2) Termination of eligibility.--Notwithstanding
any other provision of law, the Republic of Palau shall
be eligible to receive a grant under this title until
an agreement for the extension of United States
education assistance under the Compact of Free
Association for the Republic of Palau becomes
effective.
``(3) Administrative costs.--The Secretary may
provide not more than 5 percent of the funds made
available for grants under this subsection to pay the
administrative costs of the Pacific Region Educational
Laboratory regarding activities assisted under this
subsection.
``(f) Hold-Harmless Provisions.--
``(1) In general.--Notwithstanding subsection (c),
and subject to paragraphs (2) and (3), for fiscal year
2008 and each succeeding fiscal year, no eligible
agency shall receive an allotment under this title that
is less than 90 percent of the allotment the eligible
agency received for the preceding fiscal year under
this title.
``(2) Exception.--An eligible agency that receives
for the preceding fiscal year only an initial allotment
under subsection (c)(1) (and no additional allotment
under subsection (c)(2)) shall receive an allotment
equal to 100 percent of the initial allotment.
``(3) Ratable reduction.--If for any fiscal year the
amount available for allotment under this title is
insufficient to satisfy the provisions of paragraph
(1), the Secretary shall ratably reduce the payments to
all eligible agencies, as necessary.
``(g) Reallotment.--The portion of any eligible agency's
allotment under this title for a fiscal year that the Secretary
determines will not be required for the period such allotment
is available for carrying out activities under this title,
shall be available for reallotment from time to time, on such
dates during such period as the Secretary shall fix, to other
eligible agencies in proportion to the original allotments to
such agencies under this title for such year.
``SEC. 212. PERFORMANCE ACCOUNTABILITY SYSTEM.
``(a) Purpose.--The purpose of this section is to establish a
comprehensive performance accountability system, composed of
the activities described in this section, to assess the
effectiveness of eligible agencies in achieving continuous
improvement of adult education, basic skills, and family
literacy education programs funded under this title, in order
to optimize the return on investment of Federal funds in adult
education, basic skills, and family literacy education
programs.
``(b) Eligible Agency Performance Measures.--
``(1) In general.--For each eligible agency, the
eligible agency performance measures shall consist of--
``(A)(i) the core indicators of performance
described in paragraph (2)(A); and
``(ii) employment performance indicators
identified by the eligible agency under
paragraph (2)(B); and
``(B) an eligible agency adjusted level of
performance for each indicator described in
subparagraph (A).
``(2) Indicators of performance.--
``(A) Core indicators of performance.--The
core indicators of performance shall include
the following:
``(i) Measurable improvements in
literacy, including basic skill levels
in reading, writing, and speaking the
English language and basic math,
leading to proficiency in each skill.
``(ii) Receipt of a secondary school
diploma, General Educational
Development credential (GED), or other
State-recognized equivalent.
``(iii) Placement in postsecondary
education or other training programs.
``(B) Employment performance indicators.--
Consistent with applicable Federal and State
privacy laws, an eligible agency shall identify
in the State plan the following individual
participant employment performance indicators:
``(i) Entry into employment.
``(ii) Retention in employment.
``(iii) Increase in earnings.
``(3) Levels of performance.--
``(A) Eligible agency adjusted levels of
performance for core indicators.--
``(i) In general.--For each eligible
agency submitting a State plan, there
shall be established, in accordance
with this subparagraph, levels of
performance for each of the core
indicators of performance described in
paragraph (2)(A) for adult education,
basic skills, and family literacy
education programs authorized under
this title. The levels of performance
established under this subparagraph
shall, at a minimum--
``(I) be expressed in an
objective, quantifiable, and
measurable form; and
``(II) show the progress of
the eligible agency toward
continuously and significantly
improving the agency's
performance outcomes in an
objective, quantifiable, and
measurable form.
``(ii) Identification in state
plan.--Each eligible agency shall
identify, in the State plan submitted
under section 224, expected levels of
performance for each of the core
indicators of performance for the first
3 program years covered by the State
plan.
``(iii) Agreement on eligible agency
adjusted levels of performance for
first 3 years.--In order to ensure an
optimal return on the investment of
Federal funds in adult education, basic
skills, and family literacy education
programs authorized under this title,
the Secretary and each eligible agency
shall reach agreement on levels of
student performance for each of the
core indicators of performance, for the
first 3 program years covered by the
State plan, taking into account the
levels identified in the State plan
under clause (ii) and the factors
described in clause (iv). The levels
agreed to under this clause shall be
considered to be the eligible agency
adjusted levels of performance for the
eligible agency for such years and
shall be incorporated into the State
plan prior to the approval of such
plan.
``(iv) Factors.--The agreement
described in clause (iii) or (v) shall
take into account--
``(I) how the levels involved
compare with the eligible
agency's adjusted levels of
performance, taking into
account factors including the
characteristics of participants
when the participants entered
the program; and
``(II) the extent to which
such levels promote continuous
and significant improvement in
performance on the student
proficiency measures used by
such eligible agency and ensure
optimal return on the
investment of Federal funds.
``(v) Agreement on eligible agency
adjusted levels of performance for
second 3 years.--Prior to the fourth
program year covered by the State plan,
the Secretary and each eligible agency
shall reach agreement on levels of
student performance for each of the
core indicators of performance for the
fourth, fifth, and sixth program years
covered by the State plan, taking into
account the factors described in clause
(iv). The levels agreed to under this
clause shall be considered to be the
eligible agency adjusted levels of
performance for the eligible agency for
such years and shall be incorporated
into the State plan.
``(vi) Revisions.--If unanticipated
circumstances arise in a State
resulting in a significant change in
the factors described in clause
(iv)(I), the eligible agency may
request that the eligible agency
adjusted levels of performance agreed
to under clause (iii) or (v) be
revised.
``(B) Levels of employment performance.--The
eligible agency shall identify, in the State
plan, eligible agency levels of performance for
each of the employment performance indicators
described in paragraph (2)(B). Such levels
shall be considered to be eligible agency
adjusted levels of performance for purposes of
this title.
``(c) Definitions for Indicators of Perfomance.--In order to
ensure comparability of performance data across States, the
Secretary shall issue definitions for the indicators of
performance under paragraph (2).
``(d) Report.--
``(1) In general.--Each eligible agency that receives
a grant under section 211(b) shall annually prepare and
submit to the Secretary, the Governor, the State
legislature, and eligible providers a report on the
progress of the eligible agency in achieving eligible
agency performance measures, including the following:
``(A) Information on the levels of
performance achieved by the eligible agency
with respect to the core indicators of
performance and employment performance
indicators.
``(B) The number and type of each eligible
provider that receives funding under such
grant.
``(2) Information dissemination.--The Secretary--
``(A) shall make the information contained in
such reports available to the general public
through publication (including on the Internet
site of the Department of Education) and other
appropriate methods;
``(B) shall disseminate State-by-State
comparisons of the information; and
``(C) shall provide the appropriate
committees of the Congress with copies of such
reports.
``SEC. 213. INCENTIVE GRANTS FOR STATES.
``(a) In General.--From funds appropriated under section
211(a)(1), the Secretary may award grants to States for
exemplary performance in carrying out programs under this
title. Such awards shall be based on States exceeding the core
indicators of performance established under section
212(b)(2)(A) and may be based on the performance of the State
in serving populations, such as those described in section
224(b)(10), including the levels of service provided and the
performance outcomes, and such other factors relating to the
performance of the State under this title as the Secretary
determines appropriate.
``(b) Use of Funds.--The funds awarded to a State under this
paragraph may be used to carry out any activities authorized
under this title, including demonstrations and innovative
programs for hard-to-serve populations.
``CHAPTER 2--STATE PROVISIONS
``SEC. 221. STATE ADMINISTRATION.
``Each eligible agency shall be responsible for the following
activities under this title:
``(1) The development, submission, implementation,
and monitoring of the State plan.
``(2) Consultation with other appropriate agencies,
groups, and individuals that are involved in, or
interested in, the development and implementation of
activities assisted under this title.
``(3) Coordination and avoidance of duplication with
other Federal and State education, training,
corrections, public housing, and social service
programs.
``SEC. 222. STATE DISTRIBUTION OF FUNDS; MATCHING REQUIREMENT.
``(a) State Distribution of Funds.--Each eligible agency
receiving a grant under this title for a fiscal year--
``(1) shall use an amount not less than 82.5 percent
of the grant funds to award grants and contracts under
section 231 and to carry out section 225, of which not
more than 10 percent of such amount shall be available
to carry out section 225;
``(2) shall use not more than 12.5 percent of the
grant funds to carry out State leadership activities
under section 223; and
``(3) shall use not more than 5 percent of the grant
funds, or $75,000, whichever is greater, for the
administrative expenses of the eligible agency.
``(b) Matching Requirement.--
``(1) In general.--In order to receive a grant from
the Secretary under section 211(b), each eligible
agency shall provide, for the costs to be incurred by
the eligible agency in carrying out the adult
education, basic skills, and family literacy education
programs for which the grant is awarded, a non-Federal
contribution in an amount at least equal to--
``(A) in the case of an eligible agency
serving an outlying area, 12 percent of the
total amount of funds expended for adult
education, basic skills, and family literacy
education programs in the outlying area, except
that the Secretary may decrease the amount of
funds required under this subparagraph for an
eligible agency; and
``(B) in the case of an eligible agency
serving a State, 25 percent of the total amount
of funds expended for adult education, basic
skills, and family literacy education programs
in the State.
``(2) Non-federal contribution.--An eligible agency's
non-Federal contribution required under paragraph (1)
may be provided in cash or in kind, fairly evaluated,
and shall include only non-Federal funds that are used
for adult education, basic skills, and family literacy
education programs in a manner that is consistent with
the purpose of this title.
``SEC. 223. STATE LEADERSHIP ACTIVITIES.
``(a) In General.--Each eligible agency may use funds made
available under section 222(a)(2) for any of the following
adult education, basic skills, and family literacy education
programs:
``(1) The establishment or operation of professional
development programs to improve the quality of
instruction provided pursuant to local activities
required under section 231(b), including instruction
incorporating the essential components of reading
instruction and instruction provided by volunteers or
by personnel of a State or outlying area.
``(2) The provision of technical assistance to
eligible providers of adult education, basic skills,
and family literacy education programs, including for
the development and dissemination of scientifically
based research instructional practices in reading,
writing, speaking, math, and English language
acquisition programs.
``(3) The provision of assistance to eligible
providers in developing, implementing, and reporting
measurable progress in achieving the objectives of this
title.
``(4) The provision of technology assistance,
including staff training, to eligible providers of
adult education, basic skills, and family literacy
education programs, including distance learning
activities, to enable the eligible providers to improve
the quality of such activities.
``(5) The development and implementation of
technology applications or distance learning, including
professional development to support the use of
instructional technology.
``(6) Coordination with other public programs,
including welfare-to-work, workforce development, and
job training programs.
``(7) Coordination with existing support services,
such as transportation, child care, and other
assistance designed to increase rates of enrollment in,
and successful completion of, adult education, basic
skills, and family literacy education programs, for
adults enrolled in such activities.
``(8) The development and implementation of a system
to assist in the transition from adult basic education
to postsecondary education.
``(9) Activities to promote workplace literacy
programs.
``(10) Activities to promote and complement local
outreach initiatives described in section 243(7).
``(11) Other activities of statewide significance,
including assisting eligible providers in achieving
progress in improving the skill levels of adults who
participate in programs under this title.
``(12) Integration of literacy, instructional, and
occupational skill training and promotion of linkages
with employees.
``(b) Coordination.--In carrying out this section, eligible
agencies shall coordinate where possible, and avoid duplicating
efforts, in order to maximize the impact of the activities
described in subsection (a).
``(c) State-Imposed Requirements.--Whenever a State or
outlying area implements any rule or policy relating to the
administration or operation of a program authorized under this
title that has the effect of imposing a requirement that is not
imposed under Federal law (including any rule or policy based
on a State or outlying area interpretation of a Federal
statute, regulation, or guideline), the State or outlying area
shall identify, to eligible providers, the rule or policy as
being imposed by the State or outlying area.
``SEC. 224. STATE PLAN.
``(a) 6-Year Plans.--
``(1) In general.--Each eligible agency desiring a
grant under this title for any fiscal year shall submit
to, or have on file with, the Secretary a 6-year State
plan.
``(2) Comprehensive plan or application.--The
eligible agency may submit the State plan as part of a
comprehensive plan or application for Federal education
assistance.
``(b) Plan Contents.--The eligible agency shall include in
the State plan or any revisions to the State plan--
``(1) an objective assessment of the needs of
individuals in the State or outlying area for adult
education, basic skills, and family literacy education
programs, including individuals most in need or hardest
to serve;
``(2) a description of the adult education, basic
skills, and family literacy education programs that
will be carried out with funds received under this
title;
``(3) a description of how the eligible agency will
evaluate and measure annually the effectiveness and
improvement of the adult education, basic skills, and
family literacy education programs based on the
performance measures described in section 212
including--
``(A) how the eligible agency will evaluate
and measure annually such effectiveness on a
grant-by-grant basis; and
``(B) how the eligible agency--
``(i) will hold eligible providers
accountable regarding the progress of
such providers in improving the
academic achievement of participants in
adult education programs under this
title and regarding the core indicators
of performance described in section
212(b)(2)(A); and
``(ii) will use technical assistance,
sanctions, and rewards (including
allocation of grant funds based on
performance and termination of grant
funds based on nonperformance);
``(4) a description of the performance measures
described in section 212 and how such performance
measures have significantly improved adult education,
basic skills, and family literacy education programs in
the State or outlying area;
``(5) an assurance that the eligible agency will, in
addition to meeting all of the other requirements of
this title, award not less than one grant under this
title to an eligible provider that--
``(A) offers flexible schedules and necessary
support services (such as child care and
transportation) to enable individuals,
including individuals with disabilities, or
individuals with other special needs, to
participate in adult education, basic skills,
and family literacy education programs; and
``(B) attempts to coordinate with support
services that are not provided under this title
prior to using funds for adult education, basic
skills, and family literacy education programs
provided under this title for support services;
``(6) an assurance that the funds received under this
title will not be expended for any purpose other than
for activities under this title;
``(7) a description of how the eligible agency will
fund local activities in accordance with the measurable
goals described in section 231(d);
``(8) an assurance that the eligible agency will
expend the funds under this title only in a manner
consistent with fiscal requirements in section 241;
``(9) a description of the process that will be used
for public participation and comment with respect to
the State plan, which process--
``(A) shall include consultation with the
State workforce investment board, the State
board responsible for administering community
or technical colleges, the Governor, the State
educational agency, the State board or agency
responsible for administering block grants for
temporary assistance to needy families under
title IV of the Social Security Act, the State
council on disabilities, the State vocational
rehabilitation agency, other State agencies
that promote the improvement of adult
education, basic skills, and family literacy
education programs, and direct providers of
such programs; and
``(B) may include consultation with the State
agency on higher education, institutions
responsible for professional development of
adult education, basic skills, and family
literacy education programs instructors,
representatives of business and industry,
refugee assistance programs, and faith-based
organizations;
``(10) a description of the eligible agency's
strategies for serving populations that include, at a
minimum--
``(A) low-income individuals;
``(B) individuals with disabilities;
``(C) the unemployed;
``(D) the underemployed; and
``(E) individuals with multiple barriers to
educational enhancement, including individuals
with limited English proficiency;
``(11) a description of how the adult education,
basic skills, and family literacy education programs
that will be carried out with any funds received under
this title will be integrated with other adult
education, career development, and employment and
training activities in the State or outlying area
served by the eligible agency;
``(12) a description of the steps the eligible agency
will take to ensure direct and equitable access, as
required in section 231(c)(1), including--
``(A) how the State will build the capacity
of community-based and faith-based
organizations to provide adult education, basic
skills, and family literacy education programs;
and
``(B) how the State will increase the
participation of business and industry in adult
education, basic skills, and family literacy
education programs;
``(13) an assessment of the adequacy of the system of
the State or outlying area to ensure teacher quality
and a description of how the State or outlying area
will use funds received under this subtitle to improve
teacher quality, including professional development on
the use of scientifically based research to improve
instruction; and
``(14) a description of how the eligible agency will
consult with any State agency responsible for
postsecondary education to develop adult education that
prepares students to enter postsecondary education
without the need for remediation upon completion of
secondary school equivalency programs.
``(c) Plan Revisions.--When changes in conditions or other
factors require substantial revisions to an approved State
plan, the eligible agency shall submit the revisions of the
State plan to the Secretary.
``(d) Consultation.--The eligible agency shall--
``(1) submit the State plan, and any revisions to the
State plan, to the Governor, the chief State school
officer, or the State officer responsible for
administering community or technical colleges, or
outlying area for review and comment; and
``(2) ensure that any comments regarding the State
plan by the Governor, the chief State school officer,
or the State officer responsible for administering
community or technical colleges, and any revision to
the State plan, are submitted to the Secretary.
``(e) Plan Approval.--A State plan submitted to the Secretary
shall be approved by the Secretary only if the plan is
consistent with the specific provisions of this title.
``SEC. 225. PROGRAMS FOR CORRECTIONS EDUCATION AND OTHER
INSTITUTIONALIZED INDIVIDUALS.
``(a) Program Authorized.--From funds made available under
section 222(a)(1) for a fiscal year, each eligible agency shall
carry out corrections education and education for other
institutionalized individuals.
``(b) Uses of Funds.--The funds described in subsection (a)
shall be used for the cost of educational programs for criminal
offenders in correctional institutions and for other
institutionalized individuals, including academic programs
for--
``(1) basic skills education;
``(2) special education programs as determined by the
eligible agency;
``(3) reading, writing, speaking, and math programs;
and
``(4) secondary school credit or diploma programs or
their recognized equivalent.
``(c) Priority.--Each eligible agency that is using
assistance provided under this section to carry out a program
for criminal offenders within a correctional institution shall
give priority to serving individuals who are likely to leave
the correctional institution within 5 years of participation in
the program.
``(d) Definitions.--For purposes of this section:
``(1) Correctional institution.--The term
`correctional institution' means any--
``(A) prison;
``(B) jail;
``(C) reformatory;
``(D) work farm;
``(E) detention center; or
``(F) halfway house, community-based
rehabilitation center, or any other similar
institution designed for the confinement or
rehabilitation of criminal offenders.
``(2) Criminal offender.--The term `criminal
offender' means any individual who is charged with, or
convicted of, any criminal offense.
``CHAPTER 3--LOCAL PROVISIONS
``SEC. 231. GRANTS AND CONTRACTS FOR ELIGIBLE PROVIDERS.
``(a) Grants and Contracts.--From grant funds made available
under section 211(b), each eligible agency shall award
multiyear grants or contracts, on a competitive basis, to
eligible providers within the State or outlying area that meet
the conditions and requirements of this title to enable the
eligible providers to develop, implement, and improve adult
education, basic skills, and family literacy education programs
within the State.
``(b) Local Activities.--The eligible agency shall require
eligible providers receiving a grant or contract under
subsection (a) to establish or operate one or more programs of
instruction that provide services or instruction in one or more
of the following categories:
``(1) Adult education, basic skills, and family
literacy education programs (including proficiency in
reading, writing, speaking, and math).
``(2) Workplace literacy programs.
``(3) English language acquisition programs.
``(4) Family literacy education programs.
``(c) Direct and Equitable Access; Same Process.--Each
eligible agency receiving funds under this title shall ensure
that--
``(1) all eligible providers have direct and
equitable access to apply for grants or contracts under
this section; and
``(2) the same grant or contract announcement process
and application process is used for all eligible
providers in the State or outlying area.
``(d) Measurable Goals.--The eligible agency shall require
eligible providers receiving a grant or contract under
subsection (a) to demonstrate--
``(1) the eligible provider's measurable goals for
participant outcomes to be achieved annually on the
core indicators of performance and employment
performance indicators described in section 212(b)(2);
``(2) the past effectiveness of the eligible provider
in improving the basic academic skills of adults and,
for eligible providers receiving grants in the prior
year, the success of the eligible provider receiving
funding under this title in exceeding its performance
goals in the prior year;
``(3) the commitment of the eligible provider to
serve individuals in the community who are the most in
need of basic academic skills instruction services,
including individuals who are low-income or have
minimal reading, writing, speaking, and math skills, or
limited English proficiency;
``(4) the program--
``(A) is of sufficient intensity and duration
for participants to achieve substantial
learning gains; and
``(B) uses instructional practices that
include the essential components of reading
instruction;
``(5) educational practices are based on
scientifically based research;
``(6) the activities of the eligible provider
effectively employ advances in technology, as
appropriate, including the use of computers;
``(7) the activities provide instruction in real-life
contexts, when appropriate, to ensure that an
individual has the skills needed to compete in the
workplace and exercise the rights and responsibilities
of citizenship;
``(8) the activities are staffed by well-trained
instructors, counselors, and administrators;
``(9) the activities are coordinated with other
available resources in the community, such as through
strong links with elementary schools and secondary
schools, postsecondary educational institutions, one-
stop centers, job training programs, community-based
and faith-based organizations, and social service
agencies;
``(10) the activities offer flexible schedules and
support services (such as child care and
transportation) that are necessary to enable
individuals, including individuals with disabilities or
other special needs, to attend and complete programs;
``(11) the activities include a high-quality
information management system that has the capacity to
report measurable participant outcomes and to monitor
program performance against the performance measures
established by the eligible agency;
``(12) the local communities have a demonstrated need
for additional English language acquisition programs;
``(13) the capacity of the eligible provider to
produce valid information on performance results,
including enrollments and measurable participant
outcomes;
``(14) adult education, basic skills, and family
literacy education programs offer rigorous reading,
writing, speaking, and math content that are based on
scientifically based research; and
``(15) applications of technology, and services to be
provided by the eligible providers, are of sufficient
intensity and duration to increase the amount and
quality of learning and lead to measurable learning
gains within specified time periods.
``(e) Special Rule.--Eligible providers may use grant funds
under this title to serve children participating in family
literacy programs assisted under this part, provided that other
sources of funds available to provide similar services for such
children are used first.
``SEC. 232. LOCAL APPLICATION.
``Each eligible provider desiring a grant or contract under
this title shall submit an application to the eligible agency
containing such information and assurances as the eligible
agency may require, including--
``(1) a description of how funds awarded under this
title will be spent consistent with the requirements of
this title;
``(2) a description of any cooperative arrangements
the eligible provider has with other agencies,
institutions, or organizations for the delivery of
adult education, basic skills, and family literacy
education programs; and
``(3) each of the demonstrations required by section
231(d).
``SEC. 233. LOCAL ADMINISTRATIVE COST LIMITS.
``(a) In General.--Subject to subsection (b), of the amount
that is made available under this title to an eligible
provider--
``(1) at least 95 percent shall be expended for
carrying out adult education, basic skills, and family
literacy education programs; and
``(2) the remaining amount shall be used for
planning, administration, personnel and professional
development, development of measurable goals in
reading, writing, speaking, and math, and interagency
coordination.
``(b) Special Rule.--In cases where the cost limits described
in subsection (a) are too restrictive to allow for adequate
planning, administration, personnel development, and
interagency coordination, the eligible provider may negotiate
with the eligible agency in order to determine an adequate
level of funds to be used for noninstructional purposes.
``CHAPTER 4--GENERAL PROVISIONS
``SEC. 241. ADMINISTRATIVE PROVISIONS.
``(a) Supplement Not Supplant.--Funds made available for
adult education, basic skills, and family literacy education
programs under this title shall supplement and not supplant
other State or local public funds expended for adult education,
basic skills, and family literacy education programs.
``(b) Maintenance of Effort.--
``(1) In general.--
``(A) Determination.--An eligible agency may
receive funds under this title for any fiscal
year if the Secretary finds that the fiscal
effort per student or the aggregate
expenditures of such eligible agency for
activities under this title, in the second
preceding fiscal year, were not less than 90
percent of the fiscal effort per student or the
aggregate expenditures of such eligible agency
for adult education, basic skills, and family
literacy education programs, in the third
preceding fiscal year.
``(B) Proportionate reduction.--Subject to
paragraphs (2), (3), and (4), for any fiscal
year with respect to which the Secretary
determines under subparagraph (A) that the
fiscal effort or the aggregate expenditures of
an eligible agency for the preceding program
year were less than such effort or expenditures
for the second preceding program year, the
Secretary--
``(i) shall determine the percentage
decreases in such effort or in such
expenditures; and
``(ii) shall decrease the payment
made under this title for such program
year to the agency for adult education,
basic skills, and family literacy
education programs by the lesser of
such percentages.
``(2) Computation.--In computing the fiscal effort
and aggregate expenditures under paragraph (1), the
Secretary shall exclude capital expenditures and
special one-time project costs.
``(3) Decrease in federal support.--If the amount
made available for adult education, basic skills, and
family literacy education programs under this title for
a fiscal year is less than the amount made available
for adult education, basic skills, and family literacy
education programs under this title for the preceding
fiscal year, then the fiscal effort per student and the
aggregate expenditures of an eligible agency required
in order to avoid a reduction under paragraph (1)(B)
shall be decreased by the same percentage as the
percentage decrease in the amount so made available.
``(4) Waiver.--The Secretary may waive the
requirements of this subsection for not more than 1
fiscal year, if the Secretary determines that a waiver
would be equitable due to exceptional or uncontrollable
circumstances, such as a natural disaster or an
unforeseen and precipitous decline in the financial
resources of the State or outlying area of the eligible
agency. If the Secretary grants a waiver under the
preceding sentence for a fiscal year, the level of
effort required under paragraph (1) shall not be
reduced in the subsequent fiscal year because of the
waiver.
``SEC. 242. NATIONAL INSTITUTE FOR LITERACY.
``(a) In General.--
``(1) Purpose.--The purpose of the National Institute
for Literacy is to promote the improvement of literacy,
including skills in reading, writing, and English
language acquisition for children, youth, and adults,
through practices derived from the findings of
scientifically based research.
``(2) Establishment.--There is established a National
Institute for Literacy (in this section referred to as
the `Institute'). The Institute shall be administered
under the terms of an interagency agreement entered
into, reviewed annually, and modified as needed by the
Secretary of Education with the Secretary of Health and
Human Services and the Secretary of Labor (in this
section referred to as the `Interagency Group').
``(3) Offices.--The Institute shall have offices
separate from the offices of the Department of
Education, the Department of Health and Human Services,
and the Department of Labor.
``(4) Administrative support.--The Department of
Education shall provide administrative support for the
Institute.
``(5) Daily operations.--The Director of the
Institute shall administer the daily operations of the
Institute.
``(b) Duties.--
``(1) In general.--To carry out its purpose, the
Institute may--
``(A) identify and disseminate rigorous
scientific research on the effectiveness of
instructional practices and organizational
strategies relating to programs on the
acquisition of skills in reading, writing, and
English language acquisition for children,
youth, and adults;
``(B) create and widely disseminate materials
about the acquisition and application of skills
in reading, writing, and English language
acquisition for children, youth, and adults
based on scientifically based research;
``(C) ensure a broad understanding of
scientifically based research on reading,
writing, and English language acquisition for
children, youth, and adults among Federal
agencies with responsibilities for
administering programs that provide related
services, including State and local educational
agencies;
``(D) facilitate coordination and information
sharing among national organizations and
associations interested in programs that
provide services to improve skills in reading,
writing, and English language acquisition for
children, youth, and adults;
``(E) coordinate with the appropriate offices
in the Department of Education, the Department
of Health and Human Services, the Department of
Labor, and other Federal agencies to apply the
findings of scientifically based research
related to programs on reading, writing, and
English language acquisition for children,
youth, and adults;
``(F) establish a national electronic
database and Internet site describing and
fostering communication on scientifically based
programs in reading, writing, and English
language acquisition for children, youth, and
adults, including professional development
programs; and
``(G) provide opportunities for technical
assistance, meetings, and conferences that will
foster increased coordination among Federal,
State, and local agencies and entities and
improvement of reading, writing, and English
language acquisition skills for children,
youth, and adults.
``(2) Coordination.--In identifying scientifically
based research on reading, writing, and English
language acquisition for children, youth, and adults,
the Institute shall use standards for research quality
that are consistent with those established by the
Institute of Education Sciences.
``(3) Grants, contracts, and cooperative
agreements.--
``(A) In general.--The Institute may award
grants to, or enter into contracts or
cooperative agreements with, individuals,
public or private institutions, agencies,
organizations, or consortia of such
individuals, institutions, agencies, or
organizations, to carry out the activities of
the Institute.
``(B) Regulations.--The Director may adopt
the general administrative regulations of the
Department of Education, as applicable, for use
by the Institute.
``(C) Relation to other laws.--The duties and
powers of the Institute under this title are in
addition to the duties and powers of the
Institute under subparts 1, 2, and 3 of part B
of the Elementary and Secondary Education Act
of 1965 (commonly referred to as Reading First,
Early Reading First, and the William F.
Goodling Even Start Family Literacy Program,
respectively).
``(c) Visiting Scholars.--The Institute may establish a
visiting scholars program, with such stipends and allowances as
the Director considers necessary, for outstanding researchers,
scholars, and individuals who--
``(1) have careers in adult education, workforce
development, or scientifically based reading, writing,
or English language acquisition; and
``(2) can assist the Institute in translating
research into practice and providing analysis that
advances instruction in the fields of reading, writing,
and English language acquisition for children, youth,
and adults.
``(d) Interns and Volunteers.--The Institute, in consultation
with the National Institute for Literacy Advisory Board, may
award paid and unpaid internships to individuals seeking to
assist the Institute in carrying out its purpose.
Notwithstanding section 1342 of title 31, United States Code,
the Institute may accept and use voluntary and uncompensated
services as the Institute determines necessary.
``(e) National Institute for Literacy Advisory Board.--
``(1) Establishment.--
``(A) In general.--There shall be a National
Institute for Literacy Advisory Board (in this
section referred to as the `Board'), which
shall consist of 10 individuals appointed by
the President with the advice and consent of
the Senate.
``(B) Qualifications.--The Board shall be
composed of individuals who--
``(i) are not otherwise officers or
employees of the Federal Government;
and
``(ii) are knowledgeable about
current effective scientifically based
research findings on instruction in
reading, writing, and English language
acquisition for children, youth, and
adults.
``(C) Composition.--The Board may include--
``(i) representatives of business,
industry, labor, literacy
organizations, adult education
providers, community colleges, students
with disabilities, and State agencies,
including State directors of adult
education; and
``(ii) individuals who, and
representatives of entities that, have
been successful in improving skills in
reading, writing, and English language
acquisition for children, youth, and
adults.
``(2) Duties.--The Board shall--
``(A) make recommendations concerning the
appointment of the Director of the Institute;
``(B) provide independent advice on the
operation of the Institute;
``(C) receive reports from the Interagency
Group and the Director; and
``(D) review the biennial report to the
Congress under subsection (k).
``(3) Federal advisory committee act.--Except as
otherwise provided, the Board shall be subject to the
provisions of the Federal Advisory Committee Act.
``(4) Appointments.--
``(A) In general.--Each member of the Board
shall be appointed for a term of 3 years,
except that the initial terms for members may
be 1, 2, or 3 years in order to establish a
rotation in which one-third of the members are
selected each year. Any such member may be
appointed for not more than 2 consecutive
terms.
``(B) Vacancies.--Any member appointed to
fill a vacancy occurring before the expiration
of the term for which the member's predecessor
was appointed shall be appointed only for the
remainder of that term. A member may serve
after the expiration of that member's term
until a successor has taken office.
``(5) Quorum.--A majority of the members of the Board
shall constitute a quorum, but a lesser number may hold
hearings. A recommendation of the Board may be passed
only by a majority of the Board's members present at a
meeting for which there is a quorum.
``(6) Election of officers.--The Chairperson and Vice
Chairperson of the Board shall be elected by the
members of the Board. The term of office of the
Chairperson and Vice Chairperson shall be 2 years.
``(7) Meetings.--The Board shall meet at the call of
the Chairperson or a majority of the members of the
Board.
``(f) Gifts, Bequests, and Devises.--
``(1) In general.--The Institute may accept,
administer, and use gifts or donations of services,
money, or property, whether real or personal, tangible
or intangible.
``(2) Rules.--The Board shall establish written rules
setting forth the criteria to be used by the Institute
in determining whether the acceptance of contributions
of services, money, or property whether real or
personal, tangible or intangible, would reflect
unfavorably upon the ability of the Institute or any
employee to carry out the responsibilities of the
Institute or employee, or official duties, in a fair
and objective manner, or would compromise the
integrity, or the appearance of the integrity, of the
Institute's programs or any official involved in those
programs.
``(g) Mails.--The Board and the Institute may use the United
States mails in the same manner and under the same conditions
as other departments and agencies of the United States.
``(h) Director.--The Secretary of Education, after
considering recommendations made by the Board and consulting
with the Interagency Group, shall appoint and fix the pay of
the Director of the Institute and, when necessary, shall
appoint an Interim Director of the Institute.
``(i) Applicability of Certain Civil Service Laws.--The
Director and staff of the Institute may be appointed without
regard to the provisions of title 5, United States Code,
governing appointments in the competitive service, and may be
paid without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of that title relating to
classification and General Schedule pay rates, except that an
individual so appointed may not receive pay in excess of the
annual rate of basic pay payable for level IV of the Executive
Schedule.
``(j) Experts and Consultants.--The Institute may procure
temporary and intermittent services under section 3109(b) of
title 5, United States Code.
``(k) Biennial Report.--
``(1) In general.--The Institute shall submit a
report biennially to the Committee on Education and
Labor of the House of Representatives and the Committee
on Health, Education, Labor, and Pensions of the
Senate. Each report submitted under this subsection
shall include--
``(A) a comprehensive and detailed
description of the Institute's operations,
activities, financial condition, and
accomplishments in identifying and describing
programs on reading, writing, and English
language acquisition for children, youth, and
adults for the period covered by the report;
and
``(B) a description of how plans for the
operation of the Institute for the succeeding 2
fiscal years will facilitate achievement of the
purpose of the Institute.
``(2) First report.--The Institute shall submit its
first report under this subsection to the Congress not
later than 1 year after the date of the enactment of
the Workforce Investment Improvement Act of 2007.
``(l) Additional Funding.--In addition to the funds
authorized under section 205 and reserved for the Institute
under section 211, the Secretary of Education, the Secretary of
Health and Human Services, the Secretary of Labor, or the head
of any other Federal agency or department that participates in
the activities of the Institute may provide funds to the
Institute for activities that the Institute is authorized to
perform under this section.
``SEC. 243. NATIONAL LEADERSHIP ACTIVITIES.
``The Secretary shall establish and carry out a program of
national leadership activities that may include the following:
``(1) Technical assistance, on request, including
assistance--
``(A) on request to volunteer community- and
faith-based organizations, including but not
limited to, improving their fiscal management,
research-based instruction, and reporting
requirements, and the development of measurable
objectives to carry out the requirements of
this title;
``(B) in developing valid, measurable, and
reliable performance data, and using
performance information for the improvement of
adult education basic skills, English language
acquisition, and family literacy education
programs;
``(C) on adult education professional
development; and
``(D) in using distance learning and
improving the application of technology in the
classroom, including instruction in English
language acquisition for individuals who have
limited English proficiency.
``(2) Providing for the conduct of research on
national literacy basic skill acquisition levels among
adults, including the number of limited English
proficient adults functioning at different levels of
reading proficiency.
``(3) Improving the coordination, efficiency, and
effectiveness of adult education and workforce
development services at the national, State, and local
levels.
``(4) Determining how participation in adult
education basic skills, English language acquisition,
and family literacy education programs prepares
individuals for entry into and success in postsecondary
education and employment, and in the case of prison-
based services, the effect on recidivism.
``(5) Evaluating how different types of providers,
including community and faith-based organizations or
private for-profit agencies measurably improve the
skills of participants in adult education basic skills,
English language acquisition, and family literacy
education programs.
``(6) Identifying model integrated basic and
workplace skills education programs, including programs
for individuals with limited English proficiency
coordinated literacy and employment services, and
effective strategies for serving adults with
disabilities.
``(7) Supporting the development of an entity that
would produce and distribute technology-based programs
and materials for adult education, basic skills, and
family literacy education programs using an
intercommunication system, as that term is defined in
section 397 of the Communications Act of 1934, and
expand the effective outreach and use of such programs
and materials to adult education eligible providers.
``(8) Initiating other activities designed to improve
the measurable quality and effectiveness of adult
education basic skills, English language acquisition,
and family literacy education programs nationwide.''.
Subtitle C--Amendments to the Wagner-Peyser Act
SEC. 461. AMENDMENTS TO THE WAGNER-PEYSER ACT.
The Wagner-Peyser Act (29 U.S.C. 49 et seq.) is amended--
(1) by striking sections 1 through 13;
(2) in section 14 by inserting ``of Labor'' after
``Secretary''; and
(3) by amending section 15 to read as follows:
``SEC. 15. WORKFORCE AND LABOR MARKET INFORMATION SYSTEM.
``(a) System Content.--
``(1) In general.--The Secretary of Labor, in
accordance with the provisions of this section, shall
oversee the development, maintenance, and continuous
improvement of a nationwide workforce and labor market
information system that includes--
``(A) statistical data from cooperative
statistical survey and projection programs and
data from administrative reporting systems
that, taken together, enumerate, estimate, and
project employment opportunities and conditions
at national, State, and local levels in a
timely manner, including statistics on--
``(i) employment and unemployment
status of national, State, and local
populations, including self-employed,
part-time, and seasonal workers;
``(ii) industrial distribution of
occupations, as well as current and
projected employment opportunities,
wages, benefits (where data is
available), and skill trends by
occupation and industry, with
particular attention paid to State and
local conditions;
``(iii) the incidence of, industrial
and geographical location of, and
number of workers displaced by,
permanent layoffs and plant closings;
and
``(iv) employment and earnings
information maintained in a
longitudinal manner to be used for
research and program evaluation;
``(B) information on State and local
employment opportunities, and other appropriate
statistical data related to labor market
dynamics, which--
``(i) shall be current and
comprehensive;
``(ii) shall meet the needs
identified through the consultations
described in subparagraphs (A) and (B)
of subsection (e)(2); and
``(iii) shall meet the needs for the
information identified in section
134(d);
``(C) technical standards (which the
Secretary shall publish annually) for data and
information described in subparagraphs (A) and
(B) that, at a minimum, meet the criteria of
chapter 35 of title 44, United States Code;
``(D) procedures to ensure compatibility and
additivity of the data and information
described in subparagraphs (A) and (B) from
national, State, and local levels;
``(E) procedures to support standardization
and aggregation of data from administrative
reporting systems described in subparagraph (A)
of employment-related programs;
``(F) analysis of data and information
described in subparagraphs (A) and (B) for uses
such as--
``(i) national, State, and local
policymaking;
``(ii) implementation of Federal
policies (including allocation
formulas);
``(iii) program planning and
evaluation; and
``(iv) researching labor market
dynamics;
``(G) wide dissemination of such data,
information, and analysis in a user-friendly
manner and voluntary technical standards for
dissemination mechanisms; and
``(H) programs of--
``(i) training for effective data
dissemination;
``(ii) research and demonstration;
and
``(iii) programs and technical
assistance.
``(2) Information to be confidential.--
``(A) In general.--No officer or employee of
the Federal Government or agent of the Federal
Government may--
``(i) use any submission that is
furnished for exclusively statistical
purposes under the provisions of this
section for any purpose other than the
statistical purposes for which the
submission is furnished;
``(ii) disclose to the public any
publication or media transmittal of the
data contained in the submission
described in clause (i) that permits
information concerning an individual
subject to be reasonably inferred by
either direct or indirect means; or
``(iii) permit anyone other than a
sworn officer, employee, or agent of
any Federal department or agency, or a
contractor (including an employee of a
contractor) of such department or
agency, to examine an individual
submission described in clause (i),
without the consent of the individual, agency,
or other person who is the subject of the
submission or provides that submission.
``(B) Immunity from legal process.--Any
submission (including any data derived from the
submission) that is collected and retained by a
Federal department or agency, or an officer,
employee, agent, or contractor of such a
department or agency, for exclusively
statistical purposes under this section shall
be immune from the legal process and shall not,
without the consent of the individual, agency,
or other person who is the subject of the
submission or provides that submission, be
admitted as evidence or used for any purpose in
any action, suit, or other judicial or
administrative proceeding.
``(C) Rule of construction.--Nothing in this
section shall be construed to provide immunity
from the legal process for such submission
(including any data derived from the
submission) if the submission is in the
possession of any person, agency, or entity
other than the Federal Government or an
officer, employee, agent, or contractor of the
Federal Government, or if the submission is
independently collected, retained, or produced
for purposes other than the purposes of this
Act.
``(b) System Responsibilities.--
``(1) In general.--The workforce and labor market
information system described in subsection (a) shall be
planned, administered, overseen, and evaluated through
a cooperative governance structure involving the
Federal Government and States.
``(2) Duties.--The Secretary, with respect to data
collection, analysis, and dissemination of workforce
and labor market information for the system, shall
carry out the following duties:
``(A) Assign responsibilities within the
Department of Labor for elements of the
workforce and labor market information system
described in subsection (a) to ensure that all
statistical and administrative data collected
is consistent with appropriate Bureau of Labor
Statistics standards and definitions.
``(B) Actively seek the cooperation of other
Federal agencies to establish and maintain
mechanisms for ensuring complementarity and
nonduplication in the development and operation
of statistical and administrative data
collection activities.
``(C) Eliminate gaps and duplication in
statistical undertakings, with the
systemization of wage surveys as an early
priority.
``(D) In collaboration with the Bureau of
Labor Statistics and States, develop and
maintain the elements of the workforce and
labor market information system described in
subsection (a), including the development of
consistent procedures and definitions for use
by the States in collecting the data and
information described in subparagraphs (A) and
(B) of subsection (a)(1).
``(E) Establish procedures for the system to
ensure that--
``(i) such data and information are
timely;
``(ii) paperwork and reporting for
the system are reduced to a minimum;
and
``(iii) States and localities are
fully involved in the development and
continuous improvement of the system at
all levels.
``(c) National Electronic Tools To Provide Services.--The
Secretary is authorized to assist in the development of
national electronic tools that may be used to facilitate the
delivery of work ready services described in section 134 and to
provide workforce information to individuals through the one-
stop delivery systems described in section 121 and through
other appropriate delivery systems.
``(d) Coordination With the States.--
``(1) In general.--The Secretary, working through the
Bureau of Labor Statistics and the Employment and
Training Administration, shall regularly consult with
representatives of State agencies carrying out
workforce information activities regarding strategies
for improving the workforce and labor market
information system.
``(2) Formal consultations.--At least twice each
year, the Secretary, working through the Bureau of
Labor Statistics, shall conduct formal consultations
regarding programs carried out by the Bureau of Labor
Statistics with representatives of each of the 6
Federal regions of the Bureau of Labor Statistics,
elected (pursuant to a process established by the
Secretary) from the State directors affiliated with
State agencies that perform the duties described in
subsection (e)(2).
``(e) State Responsibilities.--
``(1) In general.--In order to receive Federal
financial assistance under this section, the Governor
of a State shall--
``(A) be responsible for the management of
the portions of the workforce and labor market
information system described in subsection (a)
that comprise a statewide workforce and labor
market information system and for the State's
participation in the development of the annual
plan;
``(B) establish a process for the oversight
of such system;
``(C) consult with State and local employers,
participants, and local workforce investment
boards about the labor market relevance of the
data to be collected and disseminated through
the statewide workforce and labor market
information system;
``(D) consult with State educational agencies
and local educational agencies concerning the
provision of employment statistics in order to
meet the needs of secondary school and
postsecondary school students who seek such
information;
``(E) collect and disseminate for the system,
on behalf of the State and localities in the
State, the information and data described in
subparagraphs (A) and (B) of subsection (a)(1);
``(F) maintain and continuously improve the
statewide workforce and labor market
information system in accordance with this
section;
``(G) perform contract and grant
responsibilities for data collection, analysis,
and dissemination for such system;
``(H) conduct such other data collection,
analysis, and dissemination activities as will
ensure an effective statewide workforce and
labor market information system;
``(I) actively seek the participation of
other State and local agencies in data
collection, analysis, and dissemination
activities in order to ensure complementarity,
compatibility, and usefulness of data;
``(J) participate in the development of the
annual plan described in subsection (c); and
``(K) utilize the quarterly records described
in section 136(f)(2) of the Workforce
Investment Act of 1998 to assist the State and
other States in measuring State progress on
State performance measures.
``(2) Rule of construction.--Nothing in this section
shall be construed as limiting the ability of a
Governor to conduct additional data collection,
analysis, and dissemination activities with State funds
or with Federal funds from sources other than this
section.
``(f) Nonduplication Requirement.--None of the functions and
activities carried out pursuant to this section shall duplicate
the functions and activities carried out under the Carl D.
Perkins Vocational and Applied Technology Education Act (20
U.S.C. 2301 et seq.).
``(g) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section such sums as may
be necessary for each of the fiscal years 2008 through 2012.
``(h) Definition.--In this section, the term `local area'
means the smallest geographical area for which data can be
produced with statistical reliability.''.
Subtitle D--Amendments to the Rehabilitation Act of 1973
SEC. 471. FINDINGS.
Section 2(a) of the Rehabilitation Act of 1973 (29 U.S.C.
701(a)) is amended--
(1) in paragraph (5), by striking ``and'' at the end;
(2) in paragraph (6), by striking the period and
inserting ``; and''; and
(3) by adding at the end the following:
``(7) there is a substantial need to improve and
expand services for students with disabilities under
this Act.''.
SEC. 472. REHABILITATION SERVICES ADMINISTRATION.
Section 3(a) of the Rehabilitation Act of 1973 (29 U.S.C.
702(a)) is amended--
(1) by striking ``Office of the Secretary'' and
inserting ``Department of Education'';
(2) by striking ``President by and with the advice
and consent of the Senate'' and inserting ``Secretary,
except that the Commissioner appointed under the
authority existing on the day prior to the date of
enactment of the Workforce Investment Improvement Act
of 2007 may continue to serve in the former capacity'';
and
(3) by striking ``, and the Commissioner shall be the
principal officer,''.
SEC. 473. DIRECTOR.
(a) In General.--The Rehabilitation Act of 1973 (29 U.S.C.
701 et seq.) is amended--
(1) by striking ``Commissioner'' each place it
appears, except in sections 3(a) (as amended by section
472) and 21, and inserting ``Director'';
(2) in section 100(d)(2)(B), by striking
``COMMISSIONER'' and inserting ``DIRECTOR'';
(3) in section 706, by striking ``COMMISSIONER'' and
inserting ``DIRECTOR''; and
(4) in section 723(a)(3), by striking
``COMMISSIONER'' and inserting ``DIRECTOR''.
(b) Exception.--Section 21 of the Rehabilitation Act of 1973
(29 U.S.C. 718) is amended--
(1) in subsection (b)(1)--
(A) by striking ``Commissioner'' the first
place it appears and inserting ``Director of
the Rehabilitation Services Administration'';
and
(B) by striking ``(referred to in this
subsection as the `Director')''; and
(2) by striking ``Commissioner and the Director''
each place it appears and inserting ``both such
Directors''.
SEC. 474. DEFINITIONS.
Section 7 of the Rehabilitation Act of 1973 (29 U.S.C. 705)
is amended--
(1) by redesignating paragraphs (35) through (39) as
paragraphs (36), (37), (38), (40), and (41),
respectively;
(2) in subparagraph (A)(ii) of paragraph (36) (as
redesignated in paragraph (1)), by striking ``paragraph
(36)(C)'' and inserting ``paragraph (37)(C)'';
(3) by inserting after paragraph (34) the following:
``(35)(A) The term `student with a disability' means
an individual with a disability who--
``(i) is not younger than 16 and not older
than 21;
``(ii) has been determined to be eligible
under section 102(a) for assistance under this
title; and
``(iii)(I) is eligible for, and is receiving,
special education under part B of the
Individuals with Disabilities Education Act (20
U.S.C. 1411 et seq.); or
``(II) is an individual with a disability,
for purposes of section 504.
``(B) The term `students with disabilities' means
more than 1 student with a disability.''; and
(4) by inserting after paragraph (38) (as
redesignated by paragraph (1)) the following:
``(39) The term `transition services expansion year'
means--
``(A) the first fiscal year for which the
amount appropriated under section 100(b)
exceeds the amount appropriated under section
100(b) for fiscal year 2004 by not less than
$100,000,000; and
``(B) each fiscal year subsequent to that
first fiscal year.''.
SEC. 475. STATE PLAN.
(a) Coordination With Education Officials and Assistive
Technology Programs.--Section 101(a)(11) of the Rehabilitation
Act of 1973 (29 U.S.C. 721(a)(11)) is amended--
(1) in subparagraph (D)(i) by inserting ``, which may
be provided using alternative means of meeting
participation (such as video conferences and conference
calls)'' before the semicolon; and
(2) by adding at the end the following:
``(G) Coordination with assistive technology
programs.--The State plan shall include an
assurance that the designated State unit and
the lead agency responsible for carrying out
duties under the Assistive Technology Act of
1998 (29 U.S.C. 3001), as amended, have
developed working relationships and coordinate
their activities.''.
(b) Assessment and Strategies.--Section 101(a)(15) of the
Rehabilitation Act of 1973 (29 U.S.C. 721(a)(15)) is amended--
(1) in subparagraph (A)
(A) in clause (i)--
(i) in subclause (II), by striking
``and'' at the end;
(ii) in subclause (III), by adding
``and'' at the end; and
(iii) by adding at the end the
following:
``(IV) in a transition
services expansion year,
students with disabilities,
including their need for
transition services;''; and
(B) by redesignating clauses (ii) and (iii)
as clauses (iii) and (iv), respectively, and
inserting after clause (i) the following:
``(ii) include an assessment of the
transition services provided under this
Act, and coordinated with transition
services under the Individuals with
Disabilities Education Act, as to those
services meeting the needs of
individuals with disabilities;''; and
(2) in subparagraph (D)--
(A) by redesignating clauses (iii), (iv), and
(v) as clauses (iv), (v), and (vi),
respectively; and
(B) by inserting after clause (ii) the
following:
``(iii) in a transition services
expansion year, the methods to be used
to improve and expand vocational
rehabilitation services for students
with disabilities, including the
coordination of services designed to
facilitate the transition of such
students from the receipt of
educational services in school to the
receipt of vocational rehabilitation
services under this title or to
postsecondary education or
employment;''.
(c) Services for Students With Disabilities.--Section 101(a)
of the Rehabilitation Act of 1973 (29 U.S.C. 721(a)) is further
amended by adding at the end the following:
``(25) Services for students with disabilities.--The
State plan for a transition services expansion year
shall provide an assurance satisfactory to the
Secretary that the State--
``(A) has developed and implemented
strategies to address the needs identified in
the assessment described in paragraph (15), and
achieve the goals and priorities identified by
the State, to improve and expand vocational
rehabilitation services for students with
disabilities on a statewide basis in accordance
with paragraph (15); and
``(B) from funds reserved under section 110A,
shall carry out programs or activities designed
to improve and expand vocational rehabilitation
services for students with disabilities that--
``(i) facilitate the transition of
the students with disabilities from the
receipt of educational services in
school, to the receipt of vocational
rehabilitation services under this
title, including, at a minimum, those
services specified in the interagency
agreement required in paragraph
(11)(D);
``(ii) improve the achievement of
post-school goals of students with
disabilities, including improving the
achievement through participation (as
appropriate when vocational goals are
discussed) in meetings regarding
individualized education programs
developed under section 614 of the
Individuals with Disabilities Education
Act (20 U.S.C. 1414);
``(iii) provide vocational guidance,
career exploration services, and job
search skills and strategies and
technical assistance to students with
disabilities;
``(iv) support the provision of
training and technical assistance to
State and local educational agency and
designated State agency personnel
responsible for the planning and
provision of services to students with
disabilities; and
``(v) support outreach activities to
students with disabilities who are
eligible for, and need, services under
this title.''.
SEC. 476. SCOPE OF SERVICES.
Section 103 of the Rehabilitation Act of 1973 (29 U.S.C. 723)
is amended--
(1) in subsection (a), by striking paragraph (15) and
inserting the following:
``(15) transition services for students with
disabilities, that facilitate the achievement of the
employment outcome identified in the individualized
plan for employment, including, in a transition
services expansion year, services described in clauses
(i) through (iii) of section 101(a)(25)(B);'';
(2) in subsection (b), by striking paragraph (6) and
inserting the following:
``(6)(A)(i) Consultation and technical assistance
services to assist State and local educational agencies
in planning for the transition of students with
disabilities from school to post-school activities,
including employment.
``(ii) In a transition services expansion year,
training and technical assistance described in section
101(a)(25)(B)(iv).
``(B) In a transition services expansion year,
services for groups of individuals with disabilities
who meet the requirements of clauses (i) and (iii) of
section 7(35)(A), including services described in
clauses (i), (ii), (iii), and (v) of section
101(a)(25)(B), to assist in the transition from school
to post-school activities.''; and
(3) in subsection (b) by inserting at the end, the
following:
``(7) The establishment, development, or improvement
of assistive technology demonstration, loan,
reutilization, or financing programs in coordination
with activities authorized under the Assistive
Technology Act of 1998 (29 U.S.C. 3001), as amended, to
promote access to assistive technology for individuals
with disabilities and employers.''.
SEC. 477. STANDARDS AND INDICATORS.
Section 106(a) of the Rehabilitation Act of 1973 (29 U.S.C.
726(a)) is amended by striking paragraph (1)(C) and all that
follows through paragraph (2) and inserting the following:
``(2) Measures.--The standards and indicators shall
include outcome and related measures of program
performance that--
``(A) facilitate the accomplishment of the
purpose and policy of this title;
``(B) to the maximum extent practicable, are
consistent with the core indicators of
performance, and corresponding State adjusted
levels of performance, established under
section 136(b) of the Workforce Investment Act
of 1998 (29 U.S.C. 2871(b)); and
``(C) include measures of the program's
performance with respect to the transition to
post-school vocational activities, and
achievement of the post-school vocational
goals, of students with disabilities served
under the program.''.
SEC. 478. RESERVATION FOR EXPANDED TRANSITION SERVICES.
The Rehabilitation Act of 1973 is amended by inserting after
section 110 (29 U.S.C. 730) the following:
``SEC. 110A. RESERVATION FOR EXPANDED TRANSITION SERVICES.
``(a) Reservation.--From the State allotment under section
110 in a transition services expansion year, each State shall
reserve an amount calculated by the Director under subsection
(b) to carry out programs and activities under sections
101(a)(25)(B) and 103(b)(6).
``(b) Calculation.--The Director shall calculate the amount
to be reserved for such programs and activities for a fiscal
year by each State by multiplying $50,000,000 by the percentage
determined by dividing--
``(1) the amount allotted to that State under section
110 for the prior fiscal year, by
``(2) the total amount allotted to all States under
section 110 for that prior fiscal year.''.
SEC. 479. CLIENT ASSISTANCE PROGRAM.
Section 112(e)(1) of the Rehabilitation Act of 1973 (29
U.S.C. 732(e)(1)) is amended by redesignating subparagraph (D)
as subparagraph (E) and inserting after subparagraph (C) the
following:
``(D) The Secretary shall make grants to the protection and
advocacy system serving the American Indian Consortium to
provide services in accordance with this section. The amount of
such grants shall be the same as provided to territories under
this subsection.''.
SEC. 480. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.
Section 509(g)(2) of the Rehabilitation Act of 1973 (29
U.S.C. 794e(g)(2)) is amended by striking ``was paid'' and
inserting ``was paid, except that program income generated from
such amount shall remain available to such system for one
additional fiscal year''.
SEC. 481. CHAIRPERSON.
Section 705(b)(5) of the Rehabilitation Act of 1973 (29
U.S.C. 796d(b)(5)) is amended to read as follows:
``(5) Chairperson.--The Council shall select a
chairperson from among the voting membership of the
Council.''.
SEC. 482. AUTHORIZATIONS OF APPROPRIATIONS.
The Rehabilitation Act of 1973 is further amended--
(1) in section 100(b)(1) by striking ``fiscal years
1999 through 2003'' and inserting ``fiscal years 2008
through 2012'';
(2) in section 100(d)(1)(B) by striking ``fiscal year
2003'' and inserting ``fiscal year 2012'';
(3) in section 110(c) by amending paragraph (2) to
read as follows:
``(2) The sum referred to in paragraph (1) shall be,
as determined by the Secretary, not less than 1 percent
and not more than 1.5 percent of the amount referred to
in paragraph (1) for each of fiscal years 2008 through
2012.'';
(4) in section 112(h) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2008
through 2012'';
(5) in section 201(a) by striking ``fiscal years 1999
through 2003'' each place it appears and inserting
``fiscal years 2008 through 2012'';
(6) in section 302(i) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2008
through 2012'';
(7) in section 303(e) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2008
through 2012'';
(8) in section 304(b) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2008
through 2012'';
(9) in section 305(b) by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2008
through 2012'';
(10) in section 405 by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2008
through 2012'';
(11) in section 502(j) by striking ``fiscal years
1999 through 2003'' and inserting ``fiscal years 2008
through 2012'';
(12) in section 509(l) by striking ``fiscal years
1999 through 2003'' and inserting ``fiscal years 2008
through 2012'';
(13) in section 612 by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2008
through 2012'';
(14) in section 628 by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2008
through 2012'';
(15) in section 714 by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2008
through 2012'';
(16) in section 727 by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2008
through 2012''; and
(17) in section 753 by striking ``fiscal years 1999
through 2003'' and inserting ``fiscal years 2008
through 2012''.
SEC. 483. CONFORMING AMENDMENT.
Section 1(b) of the Rehabilitation Act of 1973 is amended by
inserting after the item relating to section 110 the following:
``Sec. 110A. Reservation for expanded transition services.''.
SEC. 484. HELEN KELLER NATIONAL CENTER ACT.
(a) General Authorization of Appropriations.--The first
sentence of section 205(a) of the Helen Keller National Center
Act (29 U.S.C. 1904(a)) is amended by striking ``1999 through
2003'' and inserting ``2008 through 2012''.
(b) Helen Keller National Center Federal Endowment Fund.--The
first sentence of section 208(h) of such Act (29 U.S.C.
1907(h)) is amended by striking ``1999 through 2003'' and
inserting ``2008 through 2012''.
Subtitle E--Transition and Effective Date
SEC. 491. TRANSITION PROVISIONS.
The Secretary of Labor shall take such actions as the
Secretary determines to be appropriate to provide for the
orderly implementation of this title.
SEC. 492. EFFECTIVE DATE.
Except as otherwise provided in this title, this title and
the amendments made by this title, shall take effect on the
date of enactment of this Act.
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