(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. (A) IN GENERAL.-Section 134(a)(1) (29 U.S.C. 2864(a)(1) is amended to read as follows: "(1) IN GENERAL. "(A) REQUIRED USE OF FUNDS.-Not less than 50 percent of the funds reserved by a Governor under section 133(a) shall be used to support the provision of core 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).". (B) STATEWIDE RAPID RESPONSE ACTIVITIES.-Section 134(a)(2) (29 U.S.C. 2864(a)(2)) is amended to read as follows: "(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.". (C) STATEWIDE EMPLOYMENT AND TRAINING ACTIVITIES.-Section 134(a)(3) (29 U.S.C. 2864(a)(3)) is amended to read as follows: "(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 core services described in section 134(c)(2) in the one-stop delivery system; "(B) 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; "(C) 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; "(D) 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; "(E) operating a fiscal and management accountability system under section 136(f); "(F) carrying out monitoring and oversight of activities carried out under this chapter and chapter 4; "(G) 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; "(H) developing strategies for effectively serving hard-to-serve populations and for integrating programs and services among onestop partners; "(I) implementing innovative programs for displaced homemakers, which for purposes of this subparagraph may include an individual who is receiving public assistance and is within 2 years of exhausting lifetime eligibility under Part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.); "(J) implementing programs to increase the number of individuals training for and placed in nontraditional employment; and "(K) carrying out activities to facilitate remote access to services provided through a one-stop delivery system, including facilitating access through the use of technology.". (D) LIMITATION ON STATE ADMINISTRATIVE EXPENDITURES.-Section 134(a) is further amended by adding the following new paragraph: "(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 TRAINING ACTIVITIES. AND (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 core services described in paragraph (2) through the one-stop delivery system in accordance with such paragraph; "(C) to provide the intensive services described in paragraph (3) to adults described in such paragraph; and "(D) to provide training services described in paragraph (4) to adults described in such paragraph.". (B) CORE SERVICES.-Section 134(c)(2) (29 U.S.C. 2864(c)(2)) (as redesignated by paragraph (3)) is amended (i) by striking "who are adults or dislocated workers"; (ii) in subparagraph (A), by striking "under this subtitle" and inserting "under the one-stop partner programs described in section 121(b)"; (iii) 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; and "(iii) reemployment services provided to unemployment claimants."; (iv) in subparagraph (I), by inserting "and the administration of the work test for the unemployment compensation system" after "compensation"; and (v) 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". (C) INTENSIVE SERVICES.-Section 134(c)(3) (29 U.S.C. 2864(c)(3) (as redesignated by paragraph (3) of this subsection) is amended(i) by amending subparagraph (A) to read as follows: "(A) IN GENERAL.— "(i) ELIGIBILITY.-Funds allocated to a local area under section 133(b) shall be used to provide intensive services for adults who"(I) are unemployed and who have been determined by the one-stop operator to be"(aa) unlikely or unable to obtain suitable employment through core services; and "(bb) in need of intensive services in order to obtain suitable employment; or "(II) are employed, but who are determined by a one-stop operator to be in need of intensive services to obtain or retain suitable employment. "(ii) DEFINITION.-The Governor shall define the term 'suitable employment' for purposes of this subparagraph."; and (ii) in subparagraph (C) (I) in clause (v), by striking "for participants seeking training services under paragraph (4)"; and (II) by adding the following clauses after clause (vi): "(vii) Internships and work experience. "(viii) Literacy activities relating to basic work readiness, information and communication technology literacy activities, and financial literacy activities. "(ix) Out-of-area job search assistance and relocation assistance.". (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.— “(i) ELIGIBILITY.-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 onestop partner, as appropriate, to "(aa) be unlikely or unable to obtain or retain suitable employment through intensive services under paragraph (3)(A); "(bb) be in need of training services to obtain or retain suitable employment; and "(cc) 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) DEFINITION.-The Governor shall define the term 'suitable employment' for purposes of this subparagraph."; (ii) in subparagraph (B)(i), by striking "Except" and inserting "Notwithstanding section 479B of the Higher Education Act of 1965 (20 U.S.C. 1087uu) and except"; (iii) in subparagraph (D)— (I) by amending clause (iv) to read as follows: "(iv) entrepreneurial training, including providing information about obtaining microcredit loans for the purpose of starting a business, including contact information of microcredit lenders operating within the local area;"; (II) in clause (viii) by inserting "(including English as a Second Language)" after "activities"; and (III) by redesignating clause (ix) as clause (x) and inserting after clause (viii) the following: "(ix) training that integrates occupational skills training and 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 for the provision of intensive and training services under this subsection. "(ii) ADDITIONAL PRIORITY.-If the funds in the local area, including the funds allocated under section 133(b), for serving recipients of public assistance and other low-income individuals, including single parents, displaced homemakers, and pregnant single women, is limited, the priority for the provision of intensive and training services under this subsection shall include such recipients and individuals. Governor "(iii) DETERMINATIONS.-The 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 adding the following clause after clause (iii): “(iv) ENHANCED INDIVIDUAL TRAINING ACCOUNTS.-Each local board may, through onestop centers, assist individuals receiving individual training 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."; (vi) in subparagraph (G)(iv), by redesignating subclause (IV) as subclause (V) and inserting after subclause (III) the following: "(IV) Individuals with disabilities."; and (vii) by adding at the end the following: "(H) COMPUTER TECHNOLOGY.-In providing training services under subparagraph (G), funds allocated to a local area under this title may be used to purchase computer technology for use by an individual who is eligible pursuant to subsection (A), only if "(i) such purchase is part of an ongoing training program; and "(ii) such purchase is necessary to ensure the individual can participate in such training program. Any purchase of computer technology under this subparagraph shall remain the property of the one-stop operator.”. (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; "(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; and "(vi) activities to facilitate remote access to services provided through a one-stop delivery system, including facilitating access through the use of technology. "(B) WORK SUPPORT ACTIVITIES FOR LOWWAGE 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. "(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 onestop 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. The Governor shall establish, or may authorize the local board to establish, the required portion of such costs, which 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. 113. 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), 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"; (B) in subparagraph (A)(i)(II), by inserting "and" after the semicolon; (C) in subparagraph (A)(i)(III), by striking "; and" and inserting a period; (D) by striking subparagraph (A)(i)(IV); (E) 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 (including recognized alternative standards for individuals with disabilities); and "(III) literacy or numeracy gains."; (F) by striking subparagraph (B); and (G) by redesignating subparagraph (C) as subparagraph (B), and by adding at the end of such subparagraph (as so redesignated) 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, low levels of literacy or English proficiency, disability status, including the number of (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, 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 selfservice 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 served and the cost per participant."; 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 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 demonstrations and innovative programs for special populations. "(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, and such demonstration or other innovative programs to serve special populations as may be approved by the Governor.". (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. 114. 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 "$1,250,000,000 for fiscal year 2006 and such sums as may be necessary for each of fiscal years 2007 through 2011". (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), $3,140,000,000 for fiscal year 2006 and such sums as may be necessary for each of fiscal years 2007 through 2011". (c) DISLOCATED WORKER EMPLOYMENT AND TRAINING ACTIVITIES.-Section 137 is further amended by striking subsection (c). SEC. 115. JOB CORPS. (a) 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.". (b) 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 core indicators for youth identified in section 136(b)(2)(A)(ii).”; and (2) in paragraph (2), by striking "measures" each place it appears and inserting "indicators". (c) AUTHORIZATION OF APPROPRIATIONS.Section 161 (29 U.S.C. 2901) is amended by striking "1999 through 2003" and inserting "2006 through 2011". ADVISORY SEC. 116. NATIVE AMERICAN PROGRAMS. (a) 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. 117. MIGRANT AND SEASONAL FARMWORKER PROGRAMS. Section 167(d) is amended by inserting "(including permanent after housing)" "housing". SEC. 118. 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. 119. 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. PARTICIPANT "(5) 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-ofschool 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; "(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 "(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.-In awarding grants under this subsection the Secretary may consider the quality of the proposed project, the goals to be achieved, the likelihood of successful implementation, the extent to which the project is based on proven strategies or the extent to which the project will expand the knowledge base on activities for youth, and the additional State, local or private resources that will be provided. "(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 participa tion 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.". Section 170 (29 U.S.C. 2915) is amended- "(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 Job Training Improvement Act of 2005"; and (5) by inserting, after subsection (c) (as redesignated by paragraph (3)), the following: "(d) BEST PRACTICES COORDINATION.-The Secretary shall establish a system whereby States may share information regarding best practices with regard to the operation of workforce investment activities under this Act.". (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 that provide retention grants to qualified job training programs upon placement or retention of a low-income individual trained by that program in em ployment with a single employer for a period of 1 year, provided that such employment is providing to the low-income individual an income not less than twice the poverty line for that individual;"; (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 (H) by adding at the end the following: "(I) 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 (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. 122. COMMUNITY-BASED JOB TRAINING. Section 171(d) of the Workforce Investment Act of 1998 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, highskill 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 econ omy; "(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 community college that will offer training under the grant; "(B) an economic analysis of the local labor market to identify high-growth, highdemand industries and identify the workforce issues faced by those industries; "(C) a description of the qualified industry for which training will occur and the availability of competencies on which training will be based; "(D) an assurance that the application was developed in consultation with the local board or boards in the area or areas where the proposed grant will be used; "(E) performance outcomes 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 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).". "(1) DEFINITION.-In this subsection, the term 'State' means each of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and the United States Virgin Islands. "(2) DEMONSTRATION PROJECT.-In addition to the demonstration projects under subsection (b), the Secretary may establish and implement a national demonstration project designed to analyze and provide data on workforce training programs that accelerate the reemployment of unemployed individuals, promote the retention in employment of such individuals, and provide such individuals with enhanced flexibility, choice, and control in obtaining intensive reemployment, training, and supportive services. "(3) GRANTS.— "(A) IN GENERAL.-In carrying out the demonstration project, the Secretary shall make grants, on a competitive basis, to eligible entities to provide personal reemployment accounts to eligible individuals. In awarding grants under this subsection the Secretary shall take into consideration awarding grants to eligible entities from diverse geographic areas, including rural areas. "(B) DURATION.-The Secretary shall make the grants for periods of not less than 2 years and may renew the grant for each of the succeeding 3 years. "(4) ELIGIBLE ENTITY.—In this subsection, the term 'eligible entity' means "(A) a State; or "(B) a local board or consortium of local boards. “(5) USE OF FUNDS.— "(A) IN GENERAL.-An eligible entity that receives a grant under this subsection shall use the grant funds to provide, through a local area or areas, eligible individuals with personal reemployment accounts. An eligible individual may receive only 1 personal reemployment account. “(B) GEOGRAPHIC AREA AND AMOUNT. "(i) IN GENERAL.-The eligible entity shall establish the amount of a personal reemployment account for each eligible individual participating, which shall be uniform throughout the area represented by the eligible entity, and shall not exceed $3,000. “(ii) OPTION FOR STATES.-If the eligible entity is a State, the eligible entity may choose to use the grant statewide, if practicable, or only in specified local areas within a State. "(C) ELIGIBLE INDIVIDUALS.— "(i) IN GENERAL.-Each eligible entity shall establish eligibility criteria for individuals for personal reemployment accounts in accordance with this subparagraph. "(ii) ELIGIBILITY CRITERIA REQUIREMENTS. "(I) IN GENERAL.-Subject to subclause (II), an individual shall be eligible to receive a personal reemployment account under a grant awarded under this subsection if, beginning after the date of enactment of this subsection, the individual "(aa) is identified by the State pursuant to section 303(j)(1) of the Social Security Act (42 U.S.C. 503(j)(1)) as likely to exhaust regular unemployment compensation and in need of job search assistance to make a successful transition to new employment, or the individual's unemployment can be attributed in substantial part to unfair competition from Federal Prison Industries, Incorporated; "(bb) is receiving regular unemployment compensation under any Federal or State unemployment compensation program administered by the State; and "(cc) is eligible for not less than 20 weeks of regular unemployment compensation described in item (bb). "(II) ADDITIONAL ELIGIBILITY AND PRIORITY CRITERIA.-An eligible entity may establish criteria that are in addition to the criteria described in subclause (I) for the eligibility of individuals to receive a personal reemployment account under this subsection. An eligible entity may also establish criteria for priority in the provision of a personal reemployment account to such eligible individuals under a grant awarded under this subsection. "(iii) TRANSITION RULE. "(I) PREVIOUSLY IDENTIFIED AS LIKELY TO EXHAUST UNEMPLOYMENT COMPENSATION. "(aa) IN GENERAL.-At the option of the eligible entity, and subject to item (bb), an individual may be eligible to receive a personal reemployment account under this subsection if the individual— "(AA) during the 13-week period ending the week prior to the date of the enactment of the subsection, was identified by the State pursuant to section 303(j)(1) of the Social Security Act (42 U.S.C. 503(j)(1)) as likely to exhaust regular unemployment compensation and in need of job search assistance to make a successful transition to new employment; and "(BB) otherwise meets the requirements of clause (ii)(I)(bb) and (cc). "(bb) ADDITIONAL ELIGIBILITY AND PRIORITY CRITERIA.—An eligible entity may establish criteria that is in addition to the criteria described in item (aa) for the eligibility of individuals to receive a personal reemployment account under this subsection. An eligible entity may also establish criteria for priority in the provision of such accounts to |