(a) Short title.—This Act may be cited as the “A Stronger Workforce for America Act”.

(b) Table of Contents.—The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Effective date; transition authority.

(a) Effective date.—This Act, and the amendments made by this Act, shall take effect on the first date of the first program year (as determined under the Workforce Innovation and Opportunity Act (29 U.S.C. 3101 et seq.)) that begins after the date of enactment of this Act.

(b) Transition authority.—

(1) IN GENERAL.—The Secretary of Labor and the Secretary of Education shall have the authority to take such steps as are necessary before the effective date of this Act to provide for the orderly implementation on such date of the amendments to the Workforce Innovation and Opportunity Act (29 U.S.C. 3101 et seq.) made by this Act.

(2) CONFORMING AMENDMENTS.—Section 503 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3343) is repealed (and by striking the item relating to such section in the table of contents of such Act).

(a) Foundational skill needs.—Section 3(5) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(5)) is amended to read as follows:

“(5) FOUNDATIONAL SKILL NEEDS.—The term ‘foundational skill needs’ means, with respect to an individual who is a youth or adult, that the individual—

“(A) has English reading, writing, or computing skills at or below the 8th-grade level on a generally accepted standardized test; or

“(B) is unable to compute or solve problems, or read, write, or speak English, or does not possess digital literacy skills, at a level necessary to function on the job, in the individual’s family, or in society.”.

(b) Employer-Directed skills development.—Section 3(14) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(14)) is amended to read as follows:

“(14) EMPLOYER-DIRECTED SKILLS DEVELOPMENT.—The term ‘employer-directed skills development’ means a program—

“(A) that is selected or designed to meet the specific skill demands of an employer (including a group of employers);

“(B) that is conducted pursuant to the terms and conditions established under an employer-directed skills agreement described in section 134(c)(3)(I), including a commitment by the employer to employ an individual upon successful completion of the program; and

“(C) for which the employer pays a portion of the cost of the program, as determined by the local board involved, which shall not be less than—

“(i) 10 percent of the cost, in the case of an employer with 50 or fewer employees;

“(ii) 25 percent of the cost, in the case of an employer with more than 50, but fewer than 100 employees; and

“(iii) 50 percent of the cost, in the case of an employer with 100 or more employees.”.

(c) Dislocated worker.—Section 3(15)(E)(ii) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(15)(E)(ii)) is amended by striking “who meets the criteria described in paragraph (16)(B)” and inserting “who meets the criteria described in subparagraph (B) of the definition of the term ‘displaced homemaker’ in this section”.

(d) Displaced homemaker.—Section 3(16) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(16)) is amended, in the matter preceding subparagraph (A), by striking “family members” and inserting “a family member”.

(e) Eligible youth.—Section 3(18) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(18)) is amended by striking “out-of-school” and inserting “opportunity”.

(f) English learner.—Section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102) is further amended—

(1) in paragraph (21)—

(A) in the heading, by striking “language”; and

(B) by striking “language”; and

(2) in paragraph (24)(I), by striking “language”.

(g) Justice-Involved individual.—Section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102) is further amended—

(1) in paragraph (24), by amending subparagraph (F) to read as follows:

“(F) Justice-involved individuals.”; and

(2) in paragraph (38)—

(A) in the heading, by striking “Offender” and inserting “Justice-involved individual”; and

(B) in the matter preceding subparagraph (A), by striking “offender” and inserting “justice-involved individual”.

(h) Opportunity youth.—Section 3(46) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(46)) is amended—

(1) in the heading, by striking “Out-of-school” and inserting “Opportunity”; and

(2) by striking “out-of-school” and inserting “opportunity”.

(i) Pay-for-Performance contract strategy.—Section 3(47) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(47)) is amended to read as follows:

“(47) PAY-FOR-PERFORMANCE CONTRACT STRATEGY.—The term ‘pay-for-performance contract strategy’ means a specific type of performance-based acquisition that uses pay-for-performance contracts in the provision of services described in paragraph (2) or (3) of section 134(c) or activities described in section 129(c)(2), and includes—

“(A) contracts, each of which—

“(i) shall specify a fixed amount that will be paid to an eligible service provider (which may include a local or national community-based organization or intermediary, community college, or other provider) based on the achievement of specified levels of performance on the primary indicators of performance described in section 116(b)(2)(A) for target populations as identified by the local board (including individuals with barriers to employment), within a defined timetable;

“(ii) may not be required by the Secretary to be informed by a feasibility study; and

“(iii) may provide for bonus payments to such service provider to expand capacity to provide effective services and training;

“(B) a strategy for validating the achievement of the performance described in subparagraph (A); and

“(C) a description of how the State or local area will reallocate funds not paid to a provider because the achievement of the performance described in subparagraph (A) did not occur, for further activities related to such a procurement strategy, subject to section 189(g)(4).”.

(j) Rapid response activity.—Section 3(51) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102(51)) is amended—

(1) in the matter preceding subparagraph (A), by inserting “, through a rapid response unit” after “designated by a State”;

(2) in subparagraph (B), by inserting before the semicolon at the end the following: “, including individual training accounts for eligible dislocated workers under section 414(c) of the American Competitiveness and Workforce Improvement Act of 1998 (29 U.S.C. 3224a)”;

(3) in subparagraph (D), by striking “and” at the end;

(4) by redesignating subparagraph (E) as subparagraph (F);

(5) by inserting after subparagraph (D) the following new subparagraph:

“(E) assistance in identifying employees eligible for assistance, including workers who work a majority of their time off-site or remotely;”;

(6) in subparagraph (F), as so redesignated, by striking the period at the end and inserting “; and”; and

(7) by adding at the end the following:

“(G) business engagement or layoff aversion strategies and other activities designed to prevent or minimize the duration of unemployment, such as—

“(i) connecting employers to short-term compensation or other programs designed to prevent layoffs;

“(ii) conducting employee skill assessment and matching programs to different occupations;

“(iii) establishing incumbent worker training or other upskilling approaches, including incumbent worker upskilling accounts described in section 134(d)(4)(E);

“(iv) facilitating business support activities, such as connecting employers to programs that offer access to credit, financial support, and business consulting; and

“(v) partnering or contracting with business-focused organizations to assess risks to companies, and to propose, implement, and measure the impact of strategies and services to address such risks.”.

(k) Vocational rehabilitation program.—Section 3(64) of the Workforce Innovation and Opportunity Act (20 U.S.C. 3102(64)) is amended by striking “under a provision covered under paragraph (13)(D)” and inserting “under a provision covered under subparagraph (D) of the definition of the term ‘core program provision’ under this section”.

(l) New definitions.—Section 3 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3102) is further amended—

(1) by adding at the end the following:

“(72) CO-ENROLLMENT.—The term ‘co-enrollment’ means simultaneous enrollment in more than one of the programs or activities carried out by a one-stop partner in section 121(b)(1)(B).

“(73) DIGITAL LITERACY SKILLS.—The term ‘digital literacy skills’ has the meaning given the term in section 203.

“(74) EVIDENCE-BASED.—The term ‘evidence-based’, when used with respect to an activity, service, strategy, or intervention, means an activity, service, strategy, or intervention that—

“(A) demonstrates a statistically significant effect on improving participant outcomes or other relevant outcomes based on—

“(i) strong evidence from at least 1 well-designed and well-implemented experimental study;

“(ii) moderate evidence from at least 1 well-designed and well-implemented quasi-experimental study; or

“(iii) promising evidence from at least 1 well-designed and well-implemented correlational study with statistical controls for selection bias; or

“(B) (i) demonstrates a rationale based on high-quality research findings or positive evaluation that such activity, strategy, or intervention is likely to improve student outcomes or other relevant outcomes; and

“(ii) includes ongoing efforts to examine the effects of such activity, service, strategy, or intervention.

“(75) LABOR ORGANIZATION.—The term ‘labor organization’ has the meaning given the term in section 2(5) of the National Labor Relations Act (29 U.S.C. 152(5)).

“(76) WORK-BASED LEARNING.—The term ‘work-based learning’ has the meaning given the term in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302).”; and

(2) by reordering paragraphs (1) through (71), as amended by this section, and the paragraphs added by paragraph (1) of this subsection in alphabetical order, and renumbering such paragraphs as so reordered.

The table of contents in section 1(b) of the Workforce Innovation and Opportunity Act is amended—

(1) by redesignating the item relating to section 172 as section 174;

(2) by inserting after the item relating to section 171, the following:

“Sec. 172. Reentry employment opportunities.
“Sec. 173. Strengthening community colleges workforce development grants program.”; and

(3) by striking the item relating to section 190 and inserting the following:

“Sec. 190. State innovation demonstration authority.”.

Section 101(b)(1)(C)(ii)(IV) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3112(b)(1)(C)(ii)(IV)) is amended by striking “out-of-school youth” and inserting “opportunity youth”.

Section 102 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3112) is amended—

(1) in subsection (b)—

(A) in paragraph (1)—

(i) by redesignating subparagraphs (C) through (E) as subparagraphs (D) through (F), respectively;

(ii) by inserting the following after subparagraph (B):

“(C) a description of—

“(i) how the State will use real-time labor market information to continually assess the economic conditions and workforce trends described in subparagraphs (A) and (B); and

“(ii) how the State will communicate changes in such conditions or trends to the workforce system in the State;”;

(iii) in subparagraph (D), as so redesignated, by inserting “the extent to which such activities are evidence-based,” after “of such activities,”;

(iv) in subparagraph (E), as so redesignated, by striking “and” at the end;

(v) in subparagraph (F), as so redesignated, by striking the period at the end and inserting a semicolon; and

(vi) by adding at the end the following:

“(G) a description of any activities the State is conducting to expand economic opportunity for individuals and reduce barriers to labor market entry by—

“(i) developing, in cooperation with employers, education and training providers, and other stakeholders, statewide skills-based initiatives that promote the use of demonstrated skills and competencies as an alternative to the exclusive use of degree attainment as a requirement for employment or advancement in a career; and

“(ii) evaluating the existing occupational licensing policies in the State and identifying potential changes to recommend to the appropriate State entity to—

“(I) remove or streamline licensing requirements, as appropriate; and

“(II) improve the reciprocity of licensing, including through participating in interstate licensing compacts; and

“(H) an analysis of the opportunity youth population in the State, including the estimated number of opportunity youth and any gaps in services provided to such population by other existing workforce development activities, as identified under subparagraph (D).”; and

(B) in paragraph (2)—

(i) in subparagraph (B), by striking “including a description” and inserting “which may include a description”;

(ii) in subparagraph (C)—

(I) in clause (ii)(I), by inserting “utilizing a continuous quality improvement approach,” after “year,”

(II) in clause (vi), by inserting “and” at the end;

(III) in clause (vii), by striking “; and” and inserting a period; and

(IV) by striking clause (viii);

(iii) in subparagraph (D)(i)(II), by striking “any”; and

(iv) in subparagraph (E)—

(I) in clause (viii)(II), by inserting “and” at the end;

(II) in clause (ix), by striking “; and” at the end and inserting a period; and

(III) by striking clause (x); and

(2) in subsection (c)(3)—

(A) in subparagraph (A), by striking “shall” the second place it appears and inserting “may”; and

(B) in subparagraph (B)—

(i) by striking “required”; and

(ii) by inserting “, except that communicating changes in economic conditions and workforce trends to the workforce system in the State as described in subsection (b)(1)(C) shall not be considered modifications subject to approval under this paragraph” before the period at the end.

(a) Regions.—Section 106(a) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3121(a)) is amended by adding at the end the following:

“(3) REVIEW.—Before the second full program year after the date of enactment of the A Stronger Workforce for America Act, in order for a State to receive an allotment under section 127(b) or 132(b) and as part of the process for developing the State plan, a State shall—

“(A) review each region in the State identified under this subsection (as such subsection was in effect on the day before the date of enactment of the A Stronger Workforce for America Act); and

“(B) after consultation with the local boards and chief elected officials in the local areas and consistent with the considerations described in subsection (b)(1)(B)—

“(i) revise such region and any other region impacted by such revision; or

“(ii) make a determination to maintain such region with no revision.”.

(b) Local areas.—Section 106(b) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3121(b)) is amended—

(1) in paragraph (1)—

(A) in subparagraph (A), by striking “and consistent with paragraphs (2) and (3),”; and

(B) in subparagraph (B), by striking “(except for those local areas described in paragraphs (2) and (3))”; and

(2) by striking paragraphs (2) through (7), and inserting the following:

“(2) CONTINUATION PERIOD.—Subject to paragraph (5), in order to receive an allotment under section 127(b) or 132(b), the Governor shall maintain the designations of local areas in the State under this subsection (as in effect on the day before the date of enactment of the A Stronger Workforce for America Act) until the end of the third full program year after the date of enactment of the A Stronger Workforce for America Act.

“(3) INITIAL ALIGNMENT REVIEW.—

“(A) IN GENERAL.—Prior to the third full program year after the date of enactment of the A Stronger Workforce for America Act, the Governor shall—

“(i) review the designations of local areas in the State (as in effect on the day before the date of enactment of the A Stronger Workforce for America Act); and

“(ii) based on the considerations described in paragraph (1)(B), issue proposed redesignations of local areas in the State through the process described in paragraph (1)(A), which shall—

“(I) include an explanation of the strategic goals and objectives that the State intends to achieve through such redesignations; and

“(II) be subject to the approval of the local boards in the State in accordance with the process described in subparagraph (C).

“(B) DESIGNATION OF LOCAL AREAS.—A redesignation of local areas in a State that is approved by a majority of the local boards in the State through the process described in subparagraph (C) shall take effect on the first day of the 4th full program year after the date of enactment of the A Stronger Workforce for America Act.

“(C) PROCESS TO REACH MAJORITY APPROVAL.—To approve a designation of local areas in the State, the local boards in the State shall comply with the following:

“(i) INITIAL VOTE.—Not later than 60 days after the Governor issues proposed redesignations under subparagraph (A), the chairperson of each local board shall review the proposed redesignations and submit a vote on behalf of such local board to the Governor either approving or rejecting the proposed redesignations.

“(ii) RESULTS OF INITIAL VOTE.—If a majority of the local boards in the State vote under clause (i)—

“(I) to approve such proposed redesignations, such redesignations shall take effect in accordance with subparagraph (B); or

“(II) to disapprove such proposed redesignations, the chairpersons of the local boards in the State shall comply with the requirements of clause (iii).

“(iii) ALTERNATE REDESIGNATIONS.—In the case of the disapproval described in clause (ii)(II), not later than 60 days after initial votes were submitted under clause (i), the chairpersons of the local boards in the State shall—

“(I) select 2 alternate redesignations of local areas—

“(aa) one of which aligns with the regional economic development areas in the State; and

“(bb) one of which aligns with the regions described in subparagraph (A) or (B) of subsection (a)(2); and

“(II) conduct a vote to approve, by majority vote, 1 of the 2 alternate redesignations described in subclause (I).

“(iv) EFFECTIVE DATE OF ALTERNATE DESIGNATIONS.—The alternate redesignations approved pursuant to clause (iii)(II) shall take effect in accordance with subparagraph (B).

“(4) SUBSEQUENT ALIGNMENT REVIEWS.—On the date that is the first day of the 12th full program year after the date of enactment of the A Stronger Workforce for America Act, and every 8 years thereafter, the Governor shall review the designation of local areas based on the considerations described in paragraph (1)(B) and conduct a process in accordance with paragraph (3).

“(5) INTERIM REVISIONS.—

“(A) AUTOMATIC APPROVAL OF CERTAIN REDESIGNATION REQUESTS.—

“(i) IN GENERAL.—At any time, and notwithstanding the requirements of paragraphs (2), (3), and (4), the Governor, upon receipt of a request for a redesignation of a local area described in clause (ii), shall approve such request.

“(ii) REQUESTS.—The following requests shall be approved pursuant to clause (i) upon request:

“(I) A request from multiple local areas to be redesignated as a single local area.

“(II) A request from multiple local areas for a revision to the designations of such local areas, which would not impact the designations of local areas that have not made such request.

“(III) A request for designation as a local area from an area described in section 107(c)(1)(C).

“(B) OTHER REDESIGNATIONS.—Other than the redesignations described in subparagraph (A), the Governor may only redesignate a local area outside of the process described in paragraphs (3) and (4), if the local area that will be subject to such redesignation has not—

“(i) performed successfully;

“(ii) sustained fiscal integrity; or

“(iii) in the case of a local area in a planning region, met the requirements described in subsection (c)(1).

“(C) EFFECTIVE DATE.—Any redesignation of a local area approved by the Governor under subparagraph (A) or (B) shall take effect on the first date of the first full program year after such date of approval.

“(6) APPEALS.—

“(A) IN GENERAL.—The local board of a local area that is subject to a redesignation of such local area under paragraph (3), (4), or (5) may submit an appeal to maintain its existing designation to the State board under an appeal process established in the State plan as specified in section 102(b)(2)(D)(i)(III).

“(B) STATE BOARD REQUIREMENTS.—The State board shall only grant an appeal to maintain an existing designation of a local area described in subparagraph (A) if the local area can demonstrate that the process for redesignation of such local area under paragraph (3), (4), or (5), as applicable, has not been followed.

“(C) SECRETARIAL REQUIREMENTS.—If a request to maintain an existing designation as a local area is not granted as a result of such appeal, the Secretary, after receiving a request for review from such local area and determining that the local area was not accorded procedural rights under the appeals process referred to in subparagraph (A), shall—

“(i) review the process for the redesignation of the local area under paragraph (3), (4), or (5), as applicable; and

“(ii) upon determining that the applicable process has not been followed, require that the local area’s existing designation be maintained.

“(7) REDESIGNATION INCENTIVE.—The State may provide funding from funds made available under sections 128(a)(1) and 133(a)(1) to provide payments to incentivize—

“(A) groups of local areas to request to be redesignated as a single local area under paragraph (5)(A); or

“(B) multiple local boards in a planning region to develop an agreement to operate as a regional consortium under subsection (c)(3).”.

(c) Regional coordination.—Section 106(c) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3121(c)) is amended—

(1) in paragraph (1)—

(A) by redesignating subparagraphs (F) through (H) as subparagraphs (G) through (I), respectively; and

(B) by inserting the following after subparagraph (E):

“(F) the establishment of cost arrangements for services described in subsections (c) and (d) of section 134, including the pooling of funds for such services, as appropriate, for the region;”;

(2) in paragraph (2), by inserting “, including to assist with establishing administrative costs arrangements or cost arrangements for services under subparagraphs (F) and (G) of such paragraph” after “delivery efforts”;

(3) by redesignating paragraph (3) as paragraph (4); and

(4) by inserting after paragraph (2), as so amended, the following:

“(3) REGIONAL CONSORTIUMS.—

“(A) IN GENERAL.—The local boards and chief elected officials in any planning region described in subparagraph (B) or (C) of subsection (a)(2) may develop an agreement to receive funding under section 128(b) and section 133(b) as a single consortium for the planning region.

“(B) FISCAL AGENT.—If the local boards and chief elected officials develop such an agreement—

“(i) one of the chief elected officials in the planning region shall be responsible for designating the fiscal agent for the consortium;

“(ii) the local boards shall develop a memorandum of understanding to jointly administer the activities for the consortium; and

“(iii) the required activities for local areas under this Act, (including the required functions of the local boards described in section 107(d)) shall apply to such a consortium as a whole and may not be applied separately or differently to the local areas or local boards within such consortium.”.

(d) Single State local areas.—Section 106(d) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3121(d)) is amended—

(1) by redesignating paragraph (2) as paragraph (3); and

(2) by inserting after paragraph (1), the following:

“(2) NEW DESIGNATION.—

“(A) IN GENERAL.—Consistent with the process described in subsection (b)(1)(A) and during a review of designations described in paragraph (3) or (4) of subsection (b), the Governor may propose to designate a State as a single State local area for the purposes of this title.

“(B) PROCESS FOR APPROVAL.—If the Governor proposes a single State local area, the chairpersons of the existing local boards shall vote to approve or reject such designation through the process described in subsection (b)(3)(C).

“(C) DESIGNATION AS A SINGLE STATE LOCAL AREA.—If the majority of the chairpersons of the local boards in the State vote to approve such proposed designation, the State shall be designated as a single State local area and the Governor shall identify the State as a local area in the State plan.”.

(e) Definition of “performed successfully”.—Section 106(e)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3121(e)) is amended by striking “adjusted levels of performance” and inserting “adjusted levels of performance described in section 116(g)(1)”.

(a) Membership.—Section 107(b)(2)(B)(iv) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3122(b)(2)(B)(iv)) is amended by striking “out-of-school youth” and inserting “opportunity youth”.

(b) Functions of local board.—Section 107(d) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3122(d)) is amended—

(1) in paragraph (3), by inserting “, including, to the extent practicable, local representatives of the core programs and the programs described in section 121(b)(1)(B),” after “system stakeholders”;

(2) in paragraph (4)(D)—

(A) by striking “proven” and inserting “evidence-based”;

(B) by inserting “individual” after “needs of”; and

(C) by inserting “from a variety of industries and occupations” after “and employers”;

(3) in paragraph (5), by inserting “and which, to the extent practicable, shall be aligned with career and technical education programs of study (as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302(3)) offered within the local area” before the period at the end;

(4) in paragraph (6)—

(A) in the heading, by striking “Proven” and inserting “Evidence-based”;

(B) in subparagraph (A)—

(i) by striking “proven” and inserting “evidence-based”;

(ii) by inserting “and covered veterans (as defined in section 4212(a)(3)(A) of title 38, United States Code)” after “employment”;

(iii) by inserting “, and give priority to covered persons in accordance with section 4215 of title 38, United States Code” after “delivery system”; and

(C) in subparagraph (B), by striking “proven” and inserting “evidence-based”;

(5) in paragraph (10)(C)—

(A) by inserting “, on the State eligible training provider list,” after “identify”; and

(B) by inserting “that operate in or are accessible to individuals” after “training services”; and

(6) in paragraph (12)(A), by striking “activities” and inserting “funds allocated to the local area under section 128(b) and section 133(b) for the youth workforce development activities described in section 129 and local employment and training activities described in section 134(b), and the activities”.

Section 108 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3123) is amended—

(1) in subsection (a), by striking “shall prepare” and inserting “may prepare”; and

(2) in subsection (b)—

(A) in paragraph (1)—

(i) by redesignating subparagraphs (D), (E), and (F) as subparagraphs (E), (F), and (H), respectively;

(ii) by inserting the following after subparagraph (C):

“(D) a description of—

“(i) how the local area will use real-time labor market information to continually assess the economic conditions and workforce trends described in subparagraphs (A), (B), and (C); and

“(ii) how changes in such conditions or trends will be communicated to jobseekers, education and training providers, and employers in the local area;”;

(iii) in subparagraph (F), as so redesignated, by striking “and” at the end; and

(iv) by inserting after subparagraph (F), as so redesignated, the following:

“(G) an analysis of the opportunity youth population in the local area, including the estimated number of such youth and any gaps in services for such population from other existing workforce development activities, as identified under paragraph (9), and a description of how the local board will address any such gaps in services identified in such analysis; and”;

(B) in paragraph (4)—

(i) in subparagraph (A)—

(I) by striking “and” at the end of clause (iii); and

(II) by adding at the end the following:

“(v) carry out any statewide skills-based initiatives identified in the State plan that promote the use of demonstrated skills and competencies as an alternative to the exclusive use of degree attainment as a requirement for employment or advancement in a career; and”; and

(ii) in subparagraph (B), by striking “customized training” and inserting “employer-directed skills development”;

(C) in paragraph (6)(B), by inserting “, such as the use of affiliated sites” after “means”;

(D) in paragraph (9)—

(i) by striking “including activities” and inserting the following: “including—

“(A) the availability of community based organizations that serve youth primarily during nonschool time hours to carry out activities under section 129; and

“(B) activities”; and

(ii) by inserting “or evidence-based” after “successful”; and

(E) in paragraph (12), by inserting “including as described in section 134(c)(2),” after “system,”.

(a) State performance accountability measures.—

(1) PRIMARY INDICATORS OF PERFORMANCE.—Section 116(b)(2)(A) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141(b)(2)(A)) is amended—

(A) in clause (i)—

(i) in subclause (II)—

(I) by striking “fourth” and inserting “second”; and

(II) by inserting “and remain in unsubsidized employment during the fourth quarter after exit from the program” after “the program”;

(ii) in subclause (V)—

(I) by striking “, during a program year,”;

(II) by striking “are in” and inserting “enter into”; and

(III) by inserting before the semicolon at the end the following: “within 6 months after the quarter in which the participant enters into the education and training program”; and

(iii) by amending subclause (VI) to read as follows:

“(VI) of the program participants who received training services and who exited the program during a program year, the percentage of such program participants who completed, prior to such exit, on-the-job training, employer-directed skills development, incumbent worker training, or an apprenticeship.”;

(B) in clause (ii)—

(i) in subclause (II)—

(I) by striking “fourth” and inserting “second”;

(II) by inserting “, and who remain in such activities or unsubsidized employment during the fourth quarter after exit from the program” after “the program”; and

(III) by striking “and” at the end;

(ii) in subclause (III)—

(I) by striking “(VI)” and inserting “(V)”; and

(II) by striking the period at the end and inserting “; and”; and

(iii) by adding at the end the following:

“(IV) of the program participants who exited a program during a program year, the percentage of such program participants who completed, prior to such exit, paid or unpaid work experiences as described in section 129(c)(2)(C).”; and

(C) by striking clause (iv).

(2) LEVELS OF PERFORMANCE.—Section 116(b)(3)(A) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141(b)(3)(A)) is amended—

(A) by amending clause (iii) to read as follows:

“(iii) IDENTIFICATION IN STATE PLAN.—

“(I) SECRETARIES.—For each State submitting a State plan, the Secretaries of Labor and Education shall, not later than December 1 of the year prior to the year in which such State plan is submitted, for the first 2 program years covered by the State plan, and not later than December 1 of the year prior to the third program year covered by the State plan, for the third and fourth program years covered by the State plan—

“(aa) propose to the State expected levels of performance for each of the corresponding primary indicators of performance for each of the programs described in clause (ii) for such State, which shall—

“(AA) be consistent with the factors listed in clause (v); and

“(BB) be proposed in a manner that ensures sufficient time is provided for the State to evaluate and respond to such proposals; and

“(bb) publish, on a public website of the Department of Labor, the statistical model developed under clause (viii) and the methodology used to develop each such expected level of performance.

“(II) STATES.—Each State shall—

“(aa) evaluate each of the expected levels of performance proposed under subclause (I) with respect to such State;

“(bb) based on such evaluation of each such expected level of performance—

“(AA) accept the expected level of performance as so proposed; or

“(BB) provide a counterproposal for such proposed expected level of performance, including an analysis of how the counterproposal addresses factors or circumstances unique to the State that may not have been accounted for in the expected level of performance; and

“(cc) include in the State plan, with respect to each of the corresponding primary indicators of performance for each of the programs described in clause (ii) for such State—

“(AA) the expected level of performance proposed under subclause (I);

“(BB) the counterproposal for such proposed level, if any; and

“(CC) the expected level of performance that is agreed to under clause (iv).”; and

(B) in clause (v)(II)—

(i) in the matter preceding item (aa), by striking “based on” and inserting “based on each of the following considerations that are found to be predictive of performance on an indicator for a program”; and

(ii) in item (bb), by striking “ex-offender status” and inserting “justice-involved individual status, foster care status, school status, education level, highest grade level completed, low-income status”.

(b) Performance reports.—Section 116(d) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141(d)) is amended—

(1) by amending paragraph (1) to read as follows:

“(1) IN GENERAL.—

“(A) TEMPLATE FOR PERFORMANCE REPORTS.—Not later than 12 months after the date of enactment of the A Stronger Workforce for America Act, the Secretary of Labor, in conjunction with the Secretary of Education, shall develop, or review and modify, as appropriate, to comply with the requirements of this subsection, the template for performance reports that shall be used by States (including by States on behalf of eligible providers of training services under section 122) and local boards to produce a report on outcomes achieved by the core programs. In developing, or reviewing and modifying, such templates, the Secretary of Labor, in conjunction with the Secretary of Education, shall take into account the need to maximize the value of the templates for workers, jobseekers, employers, local elected officials, State officials, Federal policymakers, and other key stakeholders.

“(B) STANDARDIZED REPORTING.—In developing, or reviewing and modifying, the template under subparagraph (A), the Secretary of Labor, in conjunction with the Secretary of Education, shall ensure that performance reports produced by States and local areas for core programs and eligible training providers collect and report, in a comparable and uniform format, common data elements, which use terms that are assigned identical meanings across all such reports.

“(C) ADDITIONAL REPORTING.—The Secretary of Labor, in conjunction with the Secretary of Education—

“(i) in addition to the common data elements described under subparagraph (B), may require a core program to provide additional information as necessary for effective reporting; and

“(ii) shall periodically review any requirement for additional information to ensure the requirement is necessary and does not impose an undue reporting burden.”.

(2) in paragraph (2)—

(A) by redesignating subparagraphs (J) through (L) as subparagraphs (K) through (M), respectively and inserting after subparagraph (I) the following:

“(J) the median earnings gain of participants who received training services, calculated as the difference between—

“(i) median participant earnings in unsubsidized employment during the second quarter after program exit; and

“(ii) median participant earnings in the second quarter prior to entering the program;”.

(B) in subparagraph (L), as so redesignated, by striking clause (ii); and

(C) by striking “strategies for programs” and all that follows through “the performance”, and inserting “strategies for programs, the performance”;

(3) in paragraph (3)—

(A) in subparagraph (B), by striking “and” at the end;

(B) by redesignating subparagraph (C) as subparagraph (E); and

(C) by inserting after subparagraph (B) the following:

“(C) the percentage of a local area’s allocation under section 133(b) that the local area spent on services paid for through an individual training account described in section 134(c)(3)(F)(iii) or a training contract described in section 134(c)(3)(G)(ii);

“(D) the percentage of a local area’s allocation under section 133(b) that the local area spent on supportive services; and”;

(4) by amending paragraph (4) to read as follows:

“(4) CONTENTS OF ELIGIBLE TRAINING PROVIDERS PERFORMANCE REPORT.—

“(A) IN GENERAL.—The State shall use the information submitted by the eligible providers of training services under section 122 and administrative records, including quarterly wage records, of the participants of the programs offered by the providers to produce a performance report on the eligible providers of training services in the State, which shall include, subject to paragraph (6)(C)—

“(i) with respect to each program of study (or the equivalent) of such a provider—

“(I) information specifying the levels of performance achieved with respect to the primary indicators of performance described in subclauses (I) through (IV) of subsection (b)(2)(A)(i) with respect to all individuals engaging in the program of study (or the equivalent); and

“(II) the total number of individuals exiting from the program of study (or the equivalent); and

“(ii) with respect to all such providers—

“(I) the total number of participants who received training services through each adult and dislocated worker program authorized under chapter 3 of subtitle B, disaggregated by the type of entity that provided the training, during the most recent program year and the 3 preceding program years;

“(II) the total number of participants who exited from training services, disaggregated by the type of entity that provided the training, during the most recent program year and the 3 preceding program years;

“(III) the average cost per participant for the participants who received training services, disaggregated by the type of entity that provided the training, during the most recent program year and the 3 preceding program years; and

“(IV) the number of individuals with barriers to employment served by each adult and dislocated worker program authorized under chapter 3 of subtitle B, disaggregated by each subpopulation of such individuals, and by race, ethnicity, sex, and age.

“(iii) with respect to each recognized postsecondary credential on the list of credentials awarded by eligible providers in the State described in section 122(d)(2)—

“(I) information specifying the levels of performance achieved with respect to the primary indicators of performance described in subclauses (I) through (IV) of subsection (b)(2)(A)(i) for all participants in the State receiving such credential; and

“(II) information specifying the levels of performance achieved with respect to the primary indicators of performance described in subclauses (I) through (IV) of subsection (b)(2)(A)(i) for participants in the State receiving such credential with respect to individuals with barriers to employment, disaggregated by each subpopulation of such individuals, and by race, ethnicity, sex, and age.”; and

(5) in paragraph (6)—

(A) by amending subparagraph (A) to read as follows:

“(A) STATE PERFORMANCE REPORTS.—The Secretary of Labor and the Secretary of Education shall annually make available the performance reports for States containing the information described in paragraph (2), which shall include making such reports available—

“(i) digitally using transparent, linked, open, and interoperable data formats that are human readable and machine actionable such that the data from these reports—

“(I) are easily understandable; and

“(II) can be easily included in web-based tools and services supporting search, discovery, comparison, analysis, navigation, and guidance; and

“(ii) in a printable format.”; and

(B) in subparagraph (B)—

(i) by striking “(including by electronic means), in an easily understandable format,”; and

(ii) by adding at the end the following: “The Secretary of Labor and the Secretary of Education shall include, on the website where the State performance reports required under subparagraph (A) are made available, a link to local area performance reports and the eligible training provider report for each State. Such reports shall be made available in each of the formats described in subparagraph (A).”.

(c) Evaluation of State programs.—Section 116(e) of the Workforce Innovation and Opportunity Act(29 U.S.C. 3141(e)) is amended—

(1) in paragraph (1)—

(A) by striking “shall conduct ongoing” and inserting “shall use data to conduct analyses and ongoing”; and

(B) by striking “conduct the” and inserting “conduct such analyses and”; and

(2) in paragraph (2), by adding “A State may use other forms of analysis, such as machine learning or other advanced analytics, to improve program operations and outcomes and to identify areas for further evaluation.” at the end.

(d) Sanctions for State failure To meet State performance accountability measures.—Section 116(f) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141(f)) is amended to read as follows:

“(f) Sanctions for State failure To meet State performance accountability measures.—

“(1) TARGETED SUPPORT AND ASSISTANCE.—

“(A) IN GENERAL.—If a State fails to meet 80 percent of the State adjusted level of performance for an indicator described in subsection (b)(2)(A) for a program for any program year, the Secretary of Labor and the Secretary of Education shall provide technical assistance.

“(B) SANCTIONS.—

“(i) IN GENERAL.—If the State fails in the manner described in subclause (I) or (II) of clause (ii) with respect to a program year, the percentage of each amount that would (in the absence of this subparagraph) be reserved by the Governor under section 128(a)(1) for the immediately succeeding program year shall be reduced by 5 percentage points until such date as the Secretary of Labor or the Secretary of Education, as appropriate, determines that the State meets the State adjusted level of performance, in the case of a failure described in clause (ii)(I), or has submitted the reports for the appropriate program years, in the case of a failure described in clause (ii)(II).

“(ii) FAILURES.—A State shall be subject to clause (i)—

“(I) if (except in the case of exceptional circumstances as determined by the Secretary of Labor or the Secretary of Education, as appropriate), such State fails to submit a report under subsection (d) for any program year; or

“(II) for a failure under subparagraph (A) that continues for a second consecutive year.

“(2) COMPREHENSIVE SUPPORT AND ASSISTANCE.—

“(A) IN GENERAL.—If a State fails to meet an average of 90 percent of the State adjusted levels of performance for a program across all performance indicators for any program year, or if a State fails to meet an average of 90 percent of the State adjusted levels of performance for a single performance indicator across all programs for any program year, the Secretary of Labor and the Secretary of Education shall provide technical assistance, as described and authorized under section 168(b), including assistance in the development of a comprehensive performance improvement plan.

“(B) SECOND CONSECUTIVE YEAR FAILURE.—If such failure under subparagraph (A) continues for a second consecutive year, the percentage of each amount that would (in the absence of this subsection) be reserved by the Governor under section 128(a)(1) for the immediately succeeding program year shall be reduced by 10 percentage points until such date as the Secretary of Labor or the Secretary of Education, as appropriate, determines that the State meets such State adjusted levels of performance.

“(3) LIMITATION.—The total reduction under this subsection to the percentage of each amount that would (in the absence of this subsection) be reserved by the Governor under section 128(a)(1) may not exceed 10 percentage points for a program year.

“(4) REALLOTMENT OF REDUCTIONS.—

“(A) IN GENERAL.—The amounts available for reallotment for a program year shall be reallotted to the States that were not subject to a reduction of funds under paragraph (1)(B) or paragraph (2)(B) of this subsection for such program year (in this paragraph referred to individually as an ‘eligible State’).

“(B) AMOUNTS AVAILABLE FOR REALLOTMENT.—In this paragraph, the amounts available for reallotment for a program year means the amounts available under section 127(b)(1)(C) and paragraph (1)(B) or (2)(B), respectively, of section 132(b) for such program year which would (in the absence of paragraph (1)(B) or paragraph (2)(B) of this subsection) have otherwise been reserved under section 128(a)(1) by a Governor of a State for such program year.

“(C) REALLOTMENT AMOUNTS.—In making reallotments under subparagraph (A) for a program year to eligible States, the Secretary shall allot to each eligible State—

“(i) in the case of amounts available under section 127(b)(1)(C), an amount based on the relative amount of the allotment made (before the allotments under this clause are made) to such eligible State under section 127(b)(1)(C) for such program year, compared to the total allotments made (before the allotments under this clause are made) to all eligible States under section 127(b)(1)(C) for such program year; and

“(ii) in the case of amounts available under paragraph (1)(B) or (2)(B), respectively, of section 132(b), an amount based on the relative amount of the allotment made (before the allotments under this clause are made) to such eligible State under paragraph (1)(B) or (2)(B), respectively, of section 132(b) for such program year, compared to the total allotments made (before the allotments under this clause are made) to all eligible States under paragraph (1)(B) or (2)(B), respectively, of section 132(b) for such program year.”.

(e) Sanctions for local area failure To meet local performance accountability measures.—Section 116(g) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141(g)) is amended—

(1) in paragraph (1)—

(A) by inserting “80 percent of the” before “local performance”; and

(B) by striking “accountability measures” and inserting “accountability levels of performance on an indicator of performance, an average of 90 percent of the local levels of performance across indicators for a single program, or an average of 90 percent for a single performance indicator across all programs”; and

(2) in paragraph (2)—

(A) by amending subparagraph (A) to read as follows:

“(A) IN GENERAL.—If such failure continues, the Governor shall take corrective actions, which shall include—

“(i) in the case of a failure, for a second consecutive year, on any individual indicator, across indicators for a single program, or on a single indicator across programs, a 5-percent reduction in the amount that would have otherwise been allocated (in the absence of this clause) to the local area for the immediately succeeding program year under chapter 2 or 3 of subtitle B for the program subject to the performance failure;

“(ii) in the case of a failure, as described in paragraph (1), for a third consecutive year, the development of a reorganization plan through which the Governor shall—

“(I) require the appointment and certification of a new local board, consistent with the criteria established under section 107(b);

“(II) prohibit the use of one-stop partners identified as achieving a poor level of performance; and

“(III) revise or redesignate a local area, which may include merging a local area with another local area if the Governor determines that the likely cause of such continued performance failure of a local area is due to such local area’s designation being granted without the appropriate consideration of parameters described under section 106(b)(1)(B); or

“(iii) other significant actions determined appropriate by the Governor.”;

(B) in subparagraph (B)(i), by inserting “(ii)” after “subparagraph (A)”; and

(C) by adding at the end the following:

“(D) REALLOCATION OF REDUCTIONS.—

“(i) IN GENERAL.—With respect to any amounts available under section 128(b), paragraph (2)(A) or (3) of section 133(b), and section 133(b)(2)(B) to a Governor for a program year which would (in the absence of subparagraph (A)(i)) have otherwise been allocated by such Governor to a local area for such program year—

“(I) not more than 10 percent of the amounts available under each such section may be reserved by the Governor to provide technical assistance to local areas within the State that were subject to a reduction of allocation amounts pursuant to subparagraph (A)(i) for such program year; and

“(II) the amounts remaining after the reservations under subclause (I) shall be reallocated by the Governor to the local areas within the State that were not subject to a reduction of allocation amounts pursuant to subparagraph (A)(i) for such program year (in this subparagraph referred to individually as an ‘eligible local area’).

“(ii) REALLOCATION AMOUNTS.—In making reallocations under clause (i)(II) for a program year to eligible local areas within a State, the Governor of the State shall allocate to each such eligible local area—

“(I) in the case of amounts remaining under section 128(b), an amount based on the relative amount of the allocation made (before the allocations under this subclause are made) to such eligible local area under section 128(b) for such program year, compared to the total allocations made (before the allocations under this subclause are made) to all eligible local areas within the State under section 128(b) for such program year;

“(II) in the case of amounts remaining under paragraph (2)(A) or (3) of section 133(b), an amount based on the relative amount of the allocation made (before the allocations under this subclause are made) to such eligible local area under paragraph (2)(A) or (3) of section 133(b), as appropriate, for such program year, compared to the total allocations made (before the allocations under this subclause are made) under paragraph (2)(A) or (3) of section 133(b), as appropriate, to all eligible local areas within the State for such program year; and

“(III) in the case of amounts remaining under section 133(b)(2)(B), an amount based on the relative amount of the allocation made (before the allocations under this subclause are made) to such eligible local area under section 133(b)(2)(B) for such program year, compared to the total allocations made (before the allocations under this subclause are made) under section 133(b)(2)(B) to all eligible local areas within the State for such program year.”.

(f) Establishing pay-for-Performance contract strategy incentives.—Section 116(h) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141(h)) is amended by striking “non-Federal funds” and inserting “the funds reserved under section 128(a)(1)”.

(g) Fiscal and management accountability information systems.—Section 116(i) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141(i)) is amended—

(1) in the first sentence of paragraph (2), by inserting “, and may use information provided from the National Directory of New Hires in accordance with section 453(j)(8) of the Social Security Act (42 U.S.C. 653(j)(8))” after “State law”;

(2) by redesignating paragraph (3) as paragraph (4); and

(3) by inserting after paragraph (2) the following:

“(3) DESIGNATED ENTITY.—The Governor shall designate a State agency (or appropriate State entity) to assist in carrying out the performance reporting requirements for core programs and eligible training providers. The designated State agency (or appropriate State entity) shall be responsible for—

“(A) facilitating data matches using quarterly wage record information, including wage record information made available by other States, to measure employment and earnings outcomes;

“(B) data validation and reliability, as described in subsection (d)(5); and

“(C) protection against disaggregation that would violate applicable privacy standards, as described in subsection (d)(6)(C).”.

(a) One-Stop partners.—Section 121(b) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3151(b)) is amended—

(1) in paragraph (1)(B)—

(A) in clause (xi), by inserting “and” at the end; and

(B) by striking clause (xii);

(2) in paragraph (2)(A), by striking “With” and inserting “At the direction of the Governor or with”; and

(3) in paragraph (2)(B)—

(A) in clause (vi), by striking “and” at the end;

(B) by redesignating clause (vii) as clause (viii); and

(C) by inserting after clause (vi) the following:

“(vii) workforce and economic development programs carried out by the Economic Development Administration; and”.

(b) One-Stop operators.—Section 121(d) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3151(d)) is amended—

(1) in paragraph (2)(B)—

(A) in clause (i), by inserting after “education” the following: “or an area career and technical education school”;

(B) in clause (v), by striking “and”;

(C) by redesignating clause (vi) as clause (viii);

(D) by inserting after clause (v) the following:

“(vi) a public library;

“(vii) a local board that meets the requirements of paragraph (4); and”;

(E) in clause (viii), as so redesignated, by inserting after “labor organization” the following: “joint labor-management organization”; and

(2) by redesignating paragraphs (3) and (4) as paragraphs (5) and (6), respectively; and

(3) by inserting after paragraph (2) the following:

“(3) RESPONSIBILITIES.—

“(A) IN GENERAL.—In operating a one-stop system referred to in subsection (e), a one-stop operator—

“(i) shall—

“(I) manage the physical and virtual infrastructure and operations of the one-stop system in the local area; and

“(II) facilitate coordination among the partners in such one-stop system; and

“(ii) may, subject to the requirements under subparagraph (B), directly provide services to job seekers and employers.

“(B) INTERNAL CONTROLS.—In a case in which a one-stop operator seeks to operate as a service provider pursuant to subparagraph (A)(ii), the local board shall establish internal controls (which shall include written policies and procedures)—

“(i) with respect to the competition in which the one-stop operator will compete to be selected as such service provider, and the subsequent oversight, monitoring, and evaluation of the performance of such one-stop operator as such service provider; and

“(ii) which—

“(I) require compliance with—

“(aa) relevant Office of Management and Budget circulars relating to conflicts of interest; and

“(bb) any applicable State conflict of interest policy; and

“(II) prohibit a one-stop operator from developing, managing, or conducting the competition in which the operator intends to compete to be selected as a service provider.

“(4) LOCAL BOARDS AS ONE-STOP OPERATORS.—Subject to approval from the chief elected official and Governor and in accordance with any other eligibility criteria established by the State, a local board may serve as a one-stop operator, if the local board—

“(A) enters into a written agreement with the chief elected official that clarifies how the local board will carry out the functions and responsibilities as a one-stop operator in a manner that complies with the appropriate internal controls to prevent any conflicts of interest, which shall include how the local board, while serving as a one-stop operator, will—

“(i) comply with the relevant Office of Management and Budget circulars relating to conflicts of interest; and

“(ii) any applicable State conflict of interest policy; and

“(B) complies with the other applicable requirements of this subsection.”.

(c) One-Stop delivery.—Section 121(e)(2) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3151(e)(2)) is amended—

(1) in subparagraph (A), to read as follows:

“(A) shall make each of the programs, services, and activities described in paragraph (1) available—

“(i) to individuals through electronic means, in a single, virtually accessible location, and in a manner that improves efficiency, coordination, and quality, as determined by the State, in the delivery of such programs, services, and activities; or

“(ii) at not less than 1 physical center in each local area of the State; and”;

(2) in subparagraph (B)(i), by inserting after “affiliated sites” the following: “(such as any of the entities described in subsection (d)(2)(B))”;

(3) in subparagraph (C), by inserting after “centers” the following: “(which may be virtual or physical centers)”;

(4) in subparagraph (D)—

(A) by striking “as applicable and practicable, shall” and inserting “in the case of a one-stop delivery system that is making each of the programs, services, and activities described in paragraph (1) accessible at not less than 1 physical center, as described in subparagraph (A)(ii), the one-stop delivery system shall, as applicable and practicable,”; and

(B) by striking the period at the end and inserting “; and”; and

(5) by inserting after subparagraph (D) the following:

“(E) in the case of a one-stop delivery system that is making each of the programs, services, and activities accessible through electronic means, as described in subparagraph (A)(i), the one-stop delivery system shall have not less than two affiliated sites with a physical location where individuals can access, virtually, each of the programs, services, and activities described in paragraph (1) that are virtually accessible.”.

(d) Certification and improvement criteria.—Section 121(g)(2)(A) of the Workforce Innovation and Opportunity Act is amended by striking “under subsections (h)(1)” and inserting “under subsections (h)(1)(C)”.

(e) Funding of one-Stop infrastructure.—Section 121(h) of the Workforce Innovation and Opportunity Act is amended—

(1) by striking paragraph (1);

(2) by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively;

(3) in paragraph (1), as so redesignated—

(A) by amending subparagraph (B) to read as follows:

“(B) PARTNER CONTRIBUTIONS.—Subject to subparagraph (D), the covered portions of funding for a fiscal year shall be provided to the Governor from the programs described in subsection (b)(1) to pay the costs of infrastructure of one-stop centers in local areas of the State.”; and

(B) in subparagraph (C)—

(i) in clause (i)—

(I) by striking “for funding pursuant to clause (i)(II) or (ii) of paragraph (1)(A) by each partner,”; and

(II) by striking the third sentence; and

(ii) in clause (ii), by striking “under a provision covered by section 3(13)(D)” and inserting “under a provision covered by subparagraph (D) of the definition of the term ‘core program provision’ in section 3”;

(C) in subparagraph (D)—

(i) in clause (ii), by striking “For local areas in a State that are not covered by paragraph (1)(A)(i)(I), the” and inserting “The”;

(ii) in clause (ii)—

(I) in subclause (I)—

(aa) by striking “WIA” in the header and inserting “WIOA”; and

(bb) by striking “3 percent” and inserting “5 percent”; and

(II) by striking subclause (III); and

(iii) in clause (iii), by striking “For local areas in a State that are not covered by paragraph (1)(A)(i)(I), an” and inserting “An”;

(4) in paragraph (2), as so redesignated—

(A) in subparagraph (A), by striking “purposes of assisting in” and inserting “purpose of”; and

(B) in subparagraph (B)—

(i) in the first sentence, by striking “not funding costs of infrastructure under the option described in paragraph (1)(A)(i)(I)”; and

(ii) in the second sentence, by inserting after “local area,” the following: “the intensity of services provided by such centers,”;

(5) by inserting after paragraph (2), as so redesignated, the following:

“(3) SUPPLEMENTAL INFRASTRUCTURE FUNDING.—For any fiscal year in which the allocation received by a local area under paragraph (2) is insufficient to cover the total costs of infrastructure of one-stop centers in such local area, the local board, the chief elected official, and the one-stop partners that have entered into the local memorandum of understanding with the local board under subsection (c) may agree to fund any such remaining costs using a method described in such memorandum.”; and

(6) in paragraph (4), by inserting after “operation of the one-stop center” the following: “(whether for in-person or virtual service delivery)”.

(a) Eligibility.—Section 122(a) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3152(a)) is amended—

(1) by amending paragraph (1) to read as follows:

“(1) IN GENERAL.—Except as provided in subsection (i), the Governor, after consultation with the State board and considering the State’s adjusted levels of performance described in section 116(b)(3)(A)(iv), shall establish—

“(A) procedures regarding the eligibility of providers of training services to receive funds provided under section 133(b) for the provision of training services by programs with standard eligibility or conditional eligibility under this section (in this section referred to as ‘eligible programs’) in local areas in the State; and

“(B) the minimum levels of performance on the criteria for a program to receive such standard or conditional eligibility.”;

(2) in paragraph (2)—

(A) in subparagraph (A), by inserting before the semicolon at the end the following: “(other than an institution of higher education described in subparagraph (C))”;

(B) in subparagraph (B), by striking “or” at the end;

(C) by redesignating subparagraph (C) as subparagraph (D);

(D) by inserting after subparagraph (B) the following:

“(C) an institution of higher education that offers a program that—

“(i) is of at least 150 clock hours of instruction, but less than 600 clock hours of instruction, or an equivalent number of credit hours;

“(ii) is offered during a minimum of 8 weeks, but less than 15 weeks; and

“(iii) is an eligible program for purposes of the Federal Pell Grant program; or”; and

(E) in subparagraph (D), as so redesignated—

(i) by inserting “(including providers of such a program that is conducted (in whole or in part) online)” before “, which may”; and

(ii) by inserting “providers of entrepreneurial skills development programs, industry or sector partnerships, groups of employers, trade or professional associations,” after “organizations,”; and

(3) in paragraph (3)—

(A) in the first sentence, by striking “(C)” and inserting “(D)”;

(B) in the second sentence, by striking “paragraph (2)(B)” the first place it appears and inserting “subparagraph (B) or (C) of paragraph (2)”; and

(C) by inserting before the period at the end the following: “or remains eligible for the Federal Pell Grant program as described in paragraph (2)(C)”.

(b) Criteria and information requirements.—Section 122(b) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3152(b)) is amended to read as follows:

“(b) Criteria and information requirements.—

“(1) GENERAL REQUIREMENTS.—

“(A) GENERAL CRITERIA FOR PROGRAMS.—Each provider shall demonstrate that the program for which the provider is seeking eligibility under this section—

“(i) prepares participants to meet the hiring requirements of potential employers in the State or a local area within the State for employment that—

“(I) is high skill and high wage; or

“(II) is in in-demand industry sectors or occupations;

“(ii) leads to a recognized postsecondary credential;

“(iii) has been offered by the provider for not less than 1 year; and

“(iv) (I) meets the performance requirements for standard eligibility described in paragraph (2); or

“(II) has received conditional eligibility described in paragraph (3).

“(B) PROVIDER ELIGIBILITY ELECTION.—Any provider may elect to seek standard eligibility under paragraph (2) or conditional eligibility under paragraph (3).

“(2) PERFORMANCE CRITERIA FOR STANDARD ELIGIBILITY.—

“(A) IN GENERAL.—The Governor shall—

“(i) establish and publicize minimum levels of performance for each of the criteria listed in subparagraph (B) that a program offered by a provider of training services shall achieve to receive and maintain standard eligibility under this section; and

“(ii) verify the performance achieved by such a program with respect to each such criteria to determine whether the program meets the corresponding minimum level of performance established under clause (i)—

“(I) in the case of the criteria described in (ii) through (iv) of subparagraph (B), using State administrative data (such as quarterly wage records); and

“(II) in the case of the criteria described in subparagraph (B)(i), using any applicable method for such verification; and

“(iii) in verifying the performance achievement of a program, verify that such program included a sufficient number of program participants to protect participant personally identifiable information, and to be a reliable indicator of performance achievement.

“(B) PERFORMANCE CRITERIA.—The performance criteria to receive and maintain standard eligibility for a program under this section are as follows:

“(i) The credential attainment rate of program participants calculated as the percentage of program participants who obtain the recognized postsecondary credential for which the program prepares participants to earn within 6 months of exit from the program.

“(ii) The job placement rate of program participants calculated as the percentage of program participants in unsubsidized employment during the second quarter after exit from the program.

“(iii) The median earnings of program participants who are in unsubsidized employment during the second quarter after exit from the program.

“(iv) The ratio of median earnings increase to the total cost of program, calculated as follows:

“(I) The median value of the difference between—

“(aa) participant wages from unsubsidized employment during the second quarter after program exit; and

“(bb) participant wages during the quarter prior to entering the program, to

“(II) The total cost of the program (as described in paragraph (5)(B)(iii)).

“(C) LOCAL CRITERIA.—With respect to any program receiving standard eligibility under this section from a Governor, a local board in the State may require higher levels of performance than the minimum performance levels established by the Governor under this paragraph, but may not—

“(i) require any information or application from the provider that is not required for such standard eligibility; or

“(ii) establish a performance requirement with respect to any criteria not listed in subparagraph (B).

“(3) CONDITIONAL ELIGIBILITY.—

“(A) REQUIREMENTS.—

“(i) IN GENERAL.—The Governor shall establish procedures and criteria for conditional eligibility for a program of a provider of training services that does not meet the requirements under subparagraph (2).

“(ii) PROCEDURES AND CRITERIA.—In establishing the procedures and criteria under this subparagraph for conditional eligibility under this paragraph, the Governor—

“(I) shall establish the maximum period, not to exceed a 4-year period, that a program may receive and maintain such conditional eligibility;

“(II) with respect to a program that has received conditional eligibility for the maximum period established under subclause (I) and that is seeking approval for an additional period of conditional eligibility, may not consider such program for such conditional eligibility during the 3-year period that begins on the day after the end of most recent period for which the program received conditional eligibility; and

“(III) may establish other requirements related to program performance, including setting separate minimum levels of performance on the criteria described in paragraph (2) for a program to maintain such conditional eligibility.

“(B) PAYMENTS.—Payments under this Act for the provision of training services by a program with conditional eligibility shall be made to the provider of such program, on the basis of the achievement of successful outcomes by a participant of such training services, in accordance with the following:

“(i) Upon participant enrollment, the provider shall receive not less than 25 percent of the total funds to be provided under section 133(b) for the provision of training services by such program to such participant.

“(ii) Upon participant completion and credential attainment, the provider shall receive not less than 25 percent of such total funds.

“(iii) Upon verification of the participant’s employment during the second quarter after program completion, the provider shall receive not less than 25 percent of such total funds.

“(iv) The remainder of such total funds may be awarded at any of the intervals described in clauses (i) through (iii) as determined by the Governor in accordance with the procedures established under subparagraph (A).

“(C) LIMITATION ON BILLING PARTICIPANTS.—With respect to a program participant for whom a provider expects to be paid pursuant to subparagraph (B), the provider may not—

“(i) charge such participant tuition and refund such charges after receiving such payments; or

“(ii) if such program participant does not achieve the outcomes necessary for the provider to receive the provider’s full payment pursuant to subparagraph (B) for such participant, bill a participant for any of the amounts described in subparagraph (B).

“(4) EMPLOYER-SPONSORED OR INDUSTRY OR SECTORAL PARTNERSHIP DESIGNATION.—

“(A) IN GENERAL.—The Governor shall establish procedures and criteria for providers to apply for an employer-sponsored designation for a program that has received standard or conditional eligibility under this paragraph, which shall include a commitment from an employer or an industry or sectoral partnership to—

“(i) pay to the provider, on behalf of each participant enrolled in such program under this Act, not less than 25 percent of the cost of the program (as described in paragraph (5)(B)(iii)), which shall be provided in lieu of 25 percent of the amount that the provider would have otherwise received under section 133(b) for the provision of training services by such program to such participant; and

“(ii) guarantee an interview and consideration for a job with the employer, or in the case of an industry or sectoral partnership, an employer within such partnership, for each such participant that successfully completes the program.

“(B) RESTRICTION ON FINANCIAL ARRANGEMENT.—A provider receiving an employer-sponsored designation under this paragraph may not—

“(i) have an ownership stake in the employer or industry or sectoral partnership making a commitment described in subparagraph (A); or

“(ii) enter into an arrangement to reimburse an employer or partnership for the costs of a participant paid by such employer or partnership.

“(5) INFORMATION REQUIREMENTS.—An eligible provider shall submit appropriate, accurate, and timely information to the Governor, to enable the Governor to carry out subsection (d), with respect to all participants of each eligible program (including participants for whom the provider receives payments under this title) offered by the provider, which shall—

“(A) be made available by the State in a common, linked, open, and interoperable data format;

“(B) include information on—

“(i) the performance of the program with respect to the performance accountability measures described in section 116 for such participants;

“(ii) the recognized postsecondary credentials received by such participants, including, in relation to each such credential, the issuing entity, any third-party endorsements, the occupations for which the credential prepares individuals, the competencies achieved, the level of mastery of such competencies (including how mastery is assessed), and any transfer value or stackability;

“(iii) the total cost of the program, including the costs of the published tuition and fees, supplies, books, and any other costs required by the provider for participants in the program;

“(iv) the percentage of such participants that complete the program within the expected time to completion; and

“(v) in the case of a provider offering programs seeking or maintaining standard eligibility, the criteria described in paragraph (2) and not otherwise included in clause (i) of this subparagraph; and

“(C) with respect to employment and earnings measures described in subclauses (I) through (III) of section 116(b)(2)(A)(i) for such participants—

“(i) the necessary information for the State to develop program performance data using State administrative data (such as wage records); and

“(ii) the necessary information to determine the percentage of such participants who entered unsubsidized employment in an occupation related to the program, to the extent practicable.”.

(c) Procedures.—Section 122(c) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3152(c)) is amended—

(1) in the first sentence of paragraph (1), by inserting “, which shall be implemented in a manner that minimizes the financial and administrative burden on the provider and shall not require the submission of information in excess of the information required to determine a program’s eligibility under subsection (b)” after “provision of training services”;

(2) by redesignating paragraph (2) as paragraph (3), and inserting the following after paragraph (1):

“(2) APPROVAL.—A Governor shall make an eligibility determination with respect to a provider of training services and the program for which the provider is seeking eligibility under this section not later than 30 days after receipt of an application submitted by such provider consistent with the procedures in paragraph (1).”;

(3) in paragraph (3), as so redesignated—

(A) by striking “biennial” and inserting “annual”; and

(B) by inserting before the period at the end the following: “that continue to meet the requirements under subsection (b)”; and

(C) by adding at the end the following: “Any program with standard or conditional eligibility that, upon such review, does not meet the eligibility criteria established under subsection (b) for standard or conditional eligibility, respectively, shall, except as otherwise provided in subsection (g)(1)(E), no longer be an eligible program and shall be removed from the list described in subsection (d).”; and

(4) by inserting at the end the following:

“(4) MULTISTATE PROVIDERS.—The procedures established under subsection (a) shall specify the process for any provider of training services offering a program in multiple States to establish eligibility in such States, which shall, to the extent practicable, minimize financial and administrative burdens on any such provider by authorizing the provider to submit the same application materials and information to the Governor of each State in which such program will be providing services, as long as the program meets the applicable State requirements established under subsection (b) for each such State.

“(5) ONLINE PROVIDERS.—If a participant chooses a provider that delivers training services exclusively online and is not located in the State of the local area that approved such training services for the participant in accordance with section 133(c)(3)(A)(i), such provider shall be ineligible to receive payment for such participant from funds allocated to such State unless such provider is on the list of eligible providers of training services described in subsection (d) for such State.”.

(d) List and information To assist participants in choosing providers.—Section 122(d) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3152(d)) is amended—

(1) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and (6), respectively;

(2) by inserting after paragraph (1) the following:

“(2) CREDENTIAL NAVIGATION FEATURE.—In order to enhance the ability of participants and employers to understand and compare the value of the recognized postsecondary credentials awarded by eligible programs offered by providers of training services in a State, the Governor shall establish (or develop in partnership with other States), a credential navigation feature that allows participants and the public to search a list of such recognized postsecondary credentials, and the providers and programs awarding such a credential, which shall include, with respect to each such credential (aggregated for all participants in the State that have received such credential)—

“(A) the information required under subsection (b)(5)(B)(ii); and

“(B) the employment and earnings outcomes described in subclause (I) through (III) of section 116(b)(2)(i).”;

(3) in paragraph (3) (as redesignated by paragraph (1))—

(A) by amending subparagraph (A), by striking “(C) of subsection (a)(2)” and inserting “(D) of subsection (a)(2)”;

(B) by amending subparagraph (B) to read as follows:

“(B) with respect to a program described in subsection (b)(3) that is offered by a provider, consist of information designating the program as having conditional eligibility;”; and

(C) by amending subparagraph (C) to read as follows:

“(C) with respect to a program described in subsection (b)(4) that is offered by a provider, consist of the information promoting the program as having an employer-sponsored designation and identifying the employer or partnership sponsoring the program.”.

(4) by amending paragraph (4) (as so redesignated) to read as follows:

“(4) AVAILABILITY.—The list (including the credential navigation feature described in paragraph (2)), 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—

“(A) on a publicly accessible website that—

“(i) is consumer-tested; and

“(ii) is searchable, easily understandable, and navigable, and allows for the comparison of eligible programs through the use of common, linked, open-data descriptive language; and

“(B) in a manner that does not reveal personally identifiable information about an individual participant.”; and

(5) by inserting before paragraph (6) (as so redesignated), the following:

“(5) WEBSITE TECHNICAL ASSISTANCE.—The Secretary shall—

“(A) upon request, provide technical assistance to a State on establishing a website that meets the requirements of paragraph (4); and

“(B) disseminate to each State effective practices or resources from States and private sector entities related to establishing a website that is consumer-tested to ensure that the website is easily understood, searchable, and navigable.”.

(e) Provider performance incentives.—Section 122 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3152), as amended by this section, is further amended—

(1) in subsection (e), by striking “information requirements,” in each place it appears;

(2) by redesignating subsections (f) through (i) as subsection (g) through (j), respectively;

(3) by inserting after subsection (e), as so amended, the following:

“(f) Provider performance incentives.—

“(1) IN GENERAL.—The Governor or a local board may establish a system of performance incentive payments to be awarded to providers in addition to the amount paid under section 133(b) to such providers for the provision of training services to participants of eligible programs. Such system of performance incentives may be established to award eligible programs that—

“(A) achieve performance levels above the minimum levels established by the Governor under subsection (b)(2);

“(B) serve a significantly higher number of individuals with barriers to employment compared to training providers offering similar training services; or

“(C) achieve other performance successes, including those related to jobs that provide economic stability and upward mobility (such as leading to jobs with high wages and family sustainable benefits) as determined by the State or the local board.

“(2) INCENTIVE PAYMENTS.—Incentive payments to providers established under paragraph (1) shall be awarded to providers from the following allotments:

“(A) In the case of a system of performance incentive payments established by the Governor, from funds reserved by the Governor under section 128(a).

“(B) In the case of a system of performance incentive payments established by a local board, from the allocations made to the local area for youth under section 128(b), for adults under paragraph (2)(A) or (3) of section 133(b), or for dislocated workers under section 133(b)(2)(B), as appropriate.”;

(f) Enforcement.—Section 122(g)(1) of the Workforce Innovation and Opportunity Act (as redesignated by subsection (e)(2)), is amended by adding at the end the following:

“(D) FAILURE TO PROVIDE REQUIRED INFORMATION.—With respect to a provider of training services that is eligible under this section for a program year with respect to an eligible program, but that does not provide the information described in subsection (b)(5) with respect to such program for such program year (including information on performance necessary to determine if the program meets the minimum levels on the criteria to maintain eligibility), the provider shall be ineligible under this section with respect to such program for the program year after the program year for which the provider fails to provide such information.

“(E) FAILURE TO MEET PERFORMANCE CRITERIA.—

“(i) FIRST YEAR.—An eligible program that has received standard eligibility under subsection (c)(2) for a program year but fails to meet the minimum levels of performance on the criteria described in subsection (b)(2) during the most recent program year for which performance data on such criteria are available shall be notified of such failure by the Governor.

“(ii) SECOND CONSECUTIVE YEAR.—A program that fails to meet the minimum levels of performance for a second consecutive program year shall lose standard eligibility for such program for at least the program year following such second consecutive program year.

“(iii) REAPPLICATION.—

“(I) STANDARD ELIGIBILITY.—A provider may reapply to receive standard eligibility for the program according to the criteria described in subsection (c) if the program performance for the most recent program year for which performance data is available meets the minimum levels of performance required to receive such standard eligibility.

“(II) CONDITIONAL ELIGIBILITY.—A program that loses standard eligibility may apply to receive conditional eligibility under the process and criteria established by the Governor under subsection (b)(3).”.

(g) On-the-Job training, employer-directed skills development, incumbent worker training, and other training exceptions.—Subsection (i) (as redesignated by subsection (e)(2)) of section 122 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3152) is amended—

(1) in paragraph (1)—

(A) by striking “customized training” and inserting “employer-directed skills development”; and

(B) by striking “subsections (a) through (f)” and inserting “subsections (a) through (g)”; and

(2) in paragraph (2), by amending the first sentence to read as follows: “A one-stop operator in a local area shall collect the minimum amount of information from providers of on-the-job training, employer-directed skills development, incumbent worker training, internships, paid or unpaid work experience opportunities, and transitional employment as necessary to enable the use of State administrative data to generate such performance information as the Governor may require.”.

(h) Technical assistance.—Section 122 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3152) is further amended by adding at the end the following:

“(k) Technical assistance.—The Governor may apply to the Secretary for technical assistance, as described in section 168(c), for purposes of carrying out the requirements of subsection (c)(4), or paragraph (2) or (5) of subsection (d), or any other amendments made by the A Stronger Workforce for America Act to this section, and the Secretary shall provide such technical assistance in a timely manner.”.

(i) Transition.—A Governor and local boards shall implement the requirements of section 122 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3152), as amended by this Act, not later than the first day of the second full program year after the date of enactment of this Act. In order to facilitate early implementation of this section, the Governor may establish transition procedures under which providers eligible to provide training services under chapter 1 of subtitle B of title I of the Workforce Innovation and Opportunity Act (29 U.S.C. 3151 et seq.), as such chapter was in effect on the day before the date of enactment of this Act, may continue to be eligible to provide such services until December 31, 2024, or until such earlier date as the Governor determines to be appropriate.

(a) Reservations for statewide activities.—Section 128(a) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3173(a)) is amended—

(1) in paragraph (2), by striking “reserved amounts” in each place and inserting “reserved amounts under paragraph (1)”; and

(2) by adding at the end the following:

“(3) STATEWIDE CRITICAL INDUSTRY SKILLS FUND.—

“(A) AUTHORIZED RESERVATION.—In addition to the reservations required under paragraph (1) and section 133(a)(2), and subject to subparagraph (B), the Governor may reserve not more than 10 percent of each of the amounts allotted to the State under section 127(b)(1)(C) and paragraphs (1)(B) and (2)(B) of section 132(b) for a fiscal year to establish and administer a critical industry skills fund described in section 134(a)(4).

“(B) MATCHING FUNDS.—

“(i) REQUIREMENT.—The amount of funds reserved by a Governor under subparagraph (A) for a fiscal year may not exceed the amount of funds that such Governor commits to using from any of the funds listed in clause (ii) for such fiscal year for the purposes of establishing and administering the critical industry skills fund for which funds are reserved under subparagraph (A).

“(ii) SOURCES OF MATCHING FUNDS.—The funds listed in this clause are as follows:

“(I) Funds reserved by the Governor under paragraph (1) of this subsection.

“(II) Other Federal funds not described in subclause (I).

“(III) State funds.”.

(b) Reallocation among local areas.—Section 128(c) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3173(c)) is amended—

(1) in paragraph (1), by inserting the following before the period at the end: “as performance-based incentive payments”; and

(2) in paragraph (4)—

(A) by striking “that does not” and inserting the following: “that—

“(A) does not”;

(B) by striking the period at the end and inserting a semicolon; and

(C) by adding at the end the following:

“(B) has met or exceeded an average of 100 percent of the local level of performance described in section 116(c)(1)(B) for the local area across all indicators for the youth program authorized under this chapter for the most recent program year for which performance data is available; and

“(C) was not subject to corrective action by the Governor under section 184(a)(5)(A) for a determination of non-compliance with the uniform administrative requirements described in section 184(a)(3) for the program year for which the determination under paragraph (2) is made.”.

(a) Opportunity youth.—Section 129 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164) is amended by striking “out-of-school” each place it appears and inserting “opportunity”.

(b) Youth participant eligibility.—

(1) ELIGIBILITY DETERMINATION.—

(A) ELIGIBILITY.—Subparagraph (A) of section 129(a)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(a)(1) is amended to read as follows:

“(A) ELIGIBILITY DETERMINATION.—

“(i) IN GENERAL.—To be eligible to participate in activities carried out under this chapter during any program year, an individual shall, at the time the eligibility determination is made, be an opportunity youth or an in-school youth.

“(ii) ENROLLMENT.—If a one-stop operator or eligible provider of youth workforce activities carrying out activities under this chapter reasonably believes that an individual is eligible to participate in such activities, the operator or provider may allow such individual to participate in such activities for not more than a 30-day period during which the operator or provider shall obtain the necessary information to make an eligibility determination with respect to such individual (which may involve working with such individual, other entities in the local area, and available sources of administrative data to obtain the necessary information).

“(iii) DETERMINATION OF INELIGIBILITY.—With respect to an individual who is determined to be ineligible for activities under this chapter by a one-stop operator or a service provider during the period described in clause (ii) and who does not qualify for an exception under paragraph (3)(A)(ii) applicable to the local area involved, such operator or service provider—

“(I) may—

“(aa) continue serving such individual using non-Federal funds; or

“(bb) end the participation of such individual in activities under this chapter and refer the individual to other services that may be available in the local area for which the individual may be eligible; and

“(II) shall be paid for any services provided to such individual under this chapter during the period described in clause (ii) by the local area involved using funds allocated to such area under section 128(b).

“(iv) DETERMINATION PROCESS FOR HOMELESS AND FOSTER YOUTH.—In determining whether an individual is eligible to participate in activities carried out under this chapter on the basis of being an individual who is a homeless child or youth, or a youth in foster care, as described in subparagraph (B)(iii)(V), the one-stop operator or service provider involved shall—

“(I) if determining whether the individual is a homeless child or youth, use a process that is in compliance with the requirements of subsection (a) of section 479D of the Higher Education Act of 1965, as added by section 702(l) of the FAFSA Simplification Act (Public Law 116–260), for financial aid administrators; and

“(II) if determining whether the individual is a youth in foster care, use a process that is in compliance with the requirements of subsection (b) of section 479D of the Higher Education Act of 1965, as added by section 702(l) of the FAFSA Simplification Act (Public Law 116–260), for financial aid administrators.”.

(B) DEFINITION OF OPPORTUNITY YOUTH.—Subparagraph (B) of section 129(a)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(a)(1) is amended—

(i) in the subparagraph heading, by striking “Out-of-school” and inserting “Opportunity”;

(ii) in clause (i), by inserting “, except that an individual described in subparagraph (IV) or (V) of clause (iii) may be attending school” after “(as defined under State law)”;

(iii) in clause (ii), by inserting before the semicolon at the end, the following : “, except that an individual described in subparagraph (IV) or (V) of clause (iii) may be not younger than age 14 or older than age 24”; and

(iv) in clause (iii)(III)—

(I) in the matter preceding item (aa), by striking “and is” and inserting “and”;

(II) in item (aa), by striking “basic skills deficient;” and inserting “has foundational skills needs;”; and

(III) in item (bb), by striking “an English language learner” and inserting “is an English learner”.

(C) DEFINITION OF IN-SCHOOL YOUTH.—Subparagraph (C)(iv) of section 129(a)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(a)(1)) is amended—

(i) in subclause (I), by striking “Basic skills deficient.” and inserting “An individual who has foundational skills needs.”;

(ii) in subclause (II), by striking “language”;

(iii) by striking subclauses (III) and (IV); and

(iv) by redesignating subclauses (V), (VI), and (VII) as subclauses (III), (IV), and (V), respectively.

(2) EXCEPTION AND LIMITATION.—Section 129(a)(3) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(a)(1)) is amended—

(A) in subparagraph (A)(ii), by striking “5” and inserting “10”; and

(B) in subparagraph (B)—

(i) by striking “5” inserting “10”; and

(ii) by striking “paragraph (1)(C)(iv)(VII)” and inserting “paragraph (1)(C)(iv)(V)”.

(3) OPPORTUNITY YOUTH PRIORITY.—Section 129(a)(4) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(a)(1)) is amended—

(A) in the paragraph heading, by striking “Out-of-school” and inserting “Opportunity”;

(B) in subparagraph (A)—

(i) by striking “75” each place it appears and inserting “65”;

(ii) by inserting “the total amount of” before “funds available”; and

(iii) by inserting “in the State” after “subsection (c)”;

(C) in subparagraph (B)(i), by striking “75” and inserting “65”;

(D) by redesignating subparagraph (B), as so amended, as subparagraph (C); and

(E) by inserting after subparagraph (A) the following:

“(B) LOCAL AREA TARGETS.—The local board, the chief elected official, and the Governor shall negotiate and reach agreement on the minimum amount of funds provided to a local area under subsection (c) that shall be used to provide youth workforce investment activities for opportunity youth based on the needs of youth in the local area, as necessary for the State to meet the percentage described in subparagraph (A).”.

(c) Required statewide youth activities.— Section 129(b)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(b)(1))—

(1) in the matter preceding subparagraph (A), by striking “sections 128(a)” and inserting “sections 128(a)(1)”; and

(2) in subparagraph (B), by inserting “through a website that is consumer-tested to ensure that the website is easily understood, searchable, and navigable and allows for comparison of eligible providers based on the program elements offered by such providers and the performance of such providers on the primary indicators of performance for the youth program as described in section 116(b)(2)(A)(ii)” after “under section 123”.

(d) Allowable statewide youth activities.—Section 129(b)(2) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(b)(2)) is amended—

(1) in the matter preceding subparagraph (A), by striking “sections 128(a)” and inserting “sections 128(a)(1)”;

(2) in subparagraph (C), by inserting “, which may include providing guidance on career options in in-demand industry sectors or occupations” after “in the State”;

(3) in subparagraph (D)—

(A) in clause (iv), by striking “and” at the end; and

(B) by inserting after clause (v) the following:

“(vi) supporting the ability to understand relevant tax information and obligations;”;

(4) in subparagraph (E), by striking the period at the end and inserting a semicolon; and

(5) by adding at the end the following:

“(F) establishing, supporting, and expanding work-based learning opportunities, including transitional jobs, that are aligned with career pathways;

“(G) raising public awareness (including through public service announcements, such as social media campaigns and elementary and secondary school showcases and school visits) about career and technical education programs and community-based and youth services organizations, and other endeavors focused on programs that prepare students for in-demand industry sectors or occupations; and

“(H) developing partnerships between educational institutions (including area career and technical schools and institutions of higher education) and employers to create or improve workforce development programs to address the identified education and skill needs of the workforce and the employment needs of employers in the regions or local areas of the State, as determined based on the most recent analysis conducted under subparagraphs (B) and (C) of section 102(b)(1).”.

(e) Local elements and requirements.—

(1) PROGRAM DESIGN.—Section 129(c)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)(1)) is amended—

(A) in subparagraph (B), by inserting “(which, in the case of a participant 18 years or older, may include co-enrollment in any employment or training activity provided under section 134 for adults) ” after “services for the participant”;

(B) in subparagraph (C)(v), by inserting “high-skill, high-wage, or” after “small employers, in”; and

(C) in subparagraph (D)—

(i) by striking “10” and inserting “40”; and

(ii) by inserting before the period the following: “, except that after 2 consecutive years of the local board implementing such a pay-for-performance contract strategy, the local board may reserve and use not more than 60 percent of such total funds allocated to the local area for such strategy if—

“(i) the local board demonstrates to the Governor that such strategy resulted in performance improvements; and

“(ii) the Governor approves a request to use such percentage of total funds”.

(2) PROGRAM ELEMENTS.—Section 129(c)(2) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)(2)) is amended—

(A) in subparagraph (C)—

(i) in clause (i)—

(I) by striking “other” and inserting “year-round”; and

(II) by inserting “that meet the requirements of paragraph (10)” after “school year”;

(ii) in clause (iii), by striking “and job shadowing; and” and inserting the following: “that, to the extent practicable, are aligned with in-demand industry sectors or occupations in the State or local area and for which participants shall be paid (by the entity providing the internship, through funds allocated to the local area pursuant to paragraph (1) for the program, or by another entity) if such internships are longer than—

“(I) 4 weeks in the summer or 8 weeks during the school year for in-school youth and opportunity youth who are enrolled in school; or

“(II) 8 weeks for opportunity youth who are not enrolled in school;”;

(iii) by redesignating clause (iv) as clause (v); and

(iv) by inserting after clause (iii), as so amended, the following:

“(iv) job shadowing; and”;

(B) in subparagraph (H), by striking “adult mentoring” and inserting “coaching and adult mentoring services”;

(C) in subparagraph (M)—

(i) by inserting “high-skill, high-wage, or” before “in-demand industry”; and

(ii) by striking the “and” at the end;

(D) in subparagraph (N), by striking the period at the end and inserting “; and”; and

(E) by adding at the end the following:

“(O) activities to develop fundamental workforce readiness, which may include creativity, collaboration, critical thinking, digital literacy, persistence, and other relevant skills.”.

(3) PRIORITY.—Section 129(c)(4) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)(2)) is amended, by striking “20” and inserting “40”.

(4) RULE OF CONSTRUCTION.—Section 129(c)(5) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)(2)) is amended by inserting “or local area” after “youth services”.

(5) INDIVIDUAL TRAINING ACCOUNTS.—Section 129(c) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)(2)) is further amended by adding at the end the following:

“(9) INDIVIDUAL TRAINING ACCOUNTS.—Funds allocated pursuant to paragraph (1) to a local area may be used to pay, through an individual training account, an eligible provider of training services described in section 122(d) for training services described in section 134(c)(3) provided to in-school youth who are not younger than age 16 and not older than age 21 and opportunity youth, in the same manner that an individual training account is used to pay an eligible provider of training services under section 134(c)(3)(F)(iii) for training services provided to an adult or dislocated worker.”.

(6) SUMMER AND YEAR-ROUND EMPLOYMENT OPPORTUNITIES REQUIREMENTS.—Section 129(c) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3164(c)(2)) is further amended by adding at the end the following:

“(10) SUMMER AND YEAR-ROUND EMPLOYMENT OPPORTUNITIES REQUIREMENTS.—

“(A) IN GENERAL.—A summer employment opportunity or a year-round employment opportunity referred to in paragraph (2)(C)(i) shall be a program that matches eligible youth participating in such program with an appropriate employer (based on factors including the needs of the employer and the age, skill, and informed aspirations of the eligible youth) that—

“(i) shall include—

“(I) a component of occupational skills education; and

“(II) not less than 2 of the activities described in subparagraphs (G), (H), (I), (K), (M), and (O) of paragraph (2);

“(ii) may not use funds allocated under this chapter to subsidize more than 50 percent of the wages of each eligible youth participant in such program;

“(iii) in the case of a summer employment opportunity, complies with the requirements of subparagraph (B); and

“(iv) in the case of a year-round employment opportunity, complies with the requirements of subparagraph (C).

“(B) SUMMER EMPLOYMENT OPPORTUNITY.—In addition to the applicable requirements described in subparagraph (A), a summer employment opportunity—

“(i) may not be less than 4 weeks; and

“(ii) may not pay less than the greater of the applicable Federal, State, or local minimum wage.

“(C) YEAR-ROUND EMPLOYMENT OPPORTUNITY.—In addition to the applicable requirements described in subparagraph (B), a year-round employment opportunity—

“(i) may not be shorter than 180 days or longer than 1 year;

“(ii) may not pay less than the greater of the applicable Federal, State, or local minimum wage; and

“(iii) may not employ the eligible youth for less than 20 hours per week, except in instances when the eligible youth are under the age of 18 or enrolled in school.

“(D) PRIORITY.—In selecting summer employment opportunities or year-round employment opportunities for purposes of paragraph (2)(C)(i), a local area shall give priority to programs that meet the requirements of this paragraph, which are in existing or emerging high-skill, high-wage, or in-demand industry sectors or occupations.”.

Section 132(a)(2)(A) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3172(a)(2)(A)) is amended by—

(1) striking “, 169(c) (relating to dislocated worker projects),”; and

(2) by inserting “, and under subsections (c) (related to dislocated worker projects) and (d) (related to workforce data quality initiatives) of section 169” before “; and”

(a) Reservations for State activities.—Section 133(a) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3173(a)) is amended—

(1) in paragraph (1), by striking “section 128(a)” and inserting “section 128(a)(1)”;

(2) by adding at the end the following:

“(3) STATEWIDE CRITICAL INDUSTRY SKILLS FUND.—In addition to the reservations required under paragraphs (1) and (2) of this subsection, the Governor may make the reservation authorized under section 128(a)(3).”.

(b) Within State allocations.—Section 133(b)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3173(b)) is amended—

(1) in subparagraph (A), by striking “subsection (a)(1)” and inserting “paragraph (1) or (3) of subsection (a)”; and

(2) in subparagraph (B), by striking “paragraph (1) or (2) of subsection (a)” and inserting “paragraph (1), (2), or (3) of subsection (a)”.

(c) Reallocation among local areas.—Section 133(c) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3173(c)) is amended—

(1) in paragraph (1), by inserting before the period at the end, the following: “as performance-based incentive payments”;

(2) in paragraph (4)—

(A) in subparagraph (A)—

(i) by striking “that does not” and inserting the following: “that—

“(i) does not”;

(ii) by striking “; and” and inserting a semicolon; and

(iii) by adding at the end the following:

“(ii) has met or exceeded an average of 100 percent of the local level of performance described in section 116(c)(1)(B) for the local area across all indicators for the adult program authorized under this chapter for the most recent program year for which performance data is available; and

“(iii) was not subject to corrective action by the Governor under section 184(a)(5)(A) for a determination of non-compliance with the uniform administrative requirements described in section 184(a)(3) for the program year for which the determination under paragraph (2) is made; and”; and

(B) in subparagraph (B)—

(i) by striking “that does not” and inserting the following: “that—

“(i) does not”;

(ii) by striking the period at the end and inserting a semicolon; and

(iii) by adding at the end the following:

“(ii) has met or exceeded an average of 100 percent of the local level of performance described in section 116(c)(1)(B) for the local area across all indicators for the dislocated worker program authorized under this chapter for the most recent program year for which performance data is available; and

“(iii) was not subject to corrective action by the Governor under section 184(a)(5)(A) for a determination of non-compliance with the uniform administrative requirements described in section 184(a)(3) for the program year for which the determination under paragraph (2) is made; and”; and

(3) by adding at the end the following:

“(5) USE OF INCENTIVE FUNDS.—Any amounts provided to a local area as a performance incentive payment under this subsection shall not be subject to the requirements described in section 134(c)(1)(B).”.

(a) Statewide employment and training activities.—

(1) IN GENERAL.—Section 134(a)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)(1))—

(A) in subparagraph (A), by striking “and” at the end;

(B) in subparagraph (B)—

(i) in the matter preceding clause (i), by striking “128(a)” and inserting “128(a)(1)”; and

(ii) in clause (ii)—

(I) by striking the comma at the end and inserting “or to establish and administer a critical industry skills fund under paragraph (4); and” ; and

(C) by inserting before the flush left text at the end the following:

“(C) as described in section 128(a)(3), shall be used to establish and administer a critical industry skills fund described in paragraph (4).”.

(2) REQUIRED STATEWIDE EMPLOYMENT AND TRAINING ACTIVITIES.—

(A) STATEWIDE RAPID RESPONSE ACTIVITIES.—Section 134(a)(2)(A) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)(2)(A)) is amended—

(i) in clause (i)—

(I) in subclause (I)—

(aa) by striking “working” and inserting “as a rapid response unit working”; and

(bb) by striking “and” at the end;

(II) in subclause (II), by striking the period at the end and inserting “; and”; and

(III) by adding at the end the following:

“(III) provision of additional assistance to a local area that has excess demand for individual training accounts for dislocated workers in such local area and requests such assistance under paragraph (5) of section 414(c) of the American Competitiveness and Workforce Improvement Act of 1998 (29 U.S.C. 3224a(5)), upon a determination by the State that, in using funds allocated to such local area pursuant to paragraph (1) of such section 414(c) and subsection (c)(1)(B) of this section for the purpose described in paragraph (2)(A) of such section 414(c), the local area was in compliance with the requirements of such section 414(c).”; and

(ii) by adding at the end the following:

“(iii) INSUFFICIENT FUNDS TO MEET EXCESS DEMAND.—If a State determines that a local area with excess demand as described in clause (i)(III) met the compliance requirements described in such clause, but the State does not have sufficient funds reserved under section 133(a)(2) to meet such excess demand, the State—

“(I) shall notify the Secretary of such excess demand; and

“(II) if eligible, may apply for a national dislocated worker grant under section 170 of this Act.”.

(B) STATEWIDE EMPLOYMENT AND TRAINING ACTIVITIES.—Section 134(a)(2)(B) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)(2)(B) is amended—

(i) in clause (i)—

(I) in subclause (III), by striking “and” at the end;

(II) in subclause (IV)—

(aa) by inserting “the development and education of staff to increase expertise in providing opportunities for covered veterans (as defined in section 4212(a)(3)(A) of title 38, United States Code) to enter in-demand industry sectors or occupations and nontraditional occupations),” after “exemplary program activities,”; and

(bb) by adding “and” at the end; and

(III) by adding at the end the following:

“(V) local boards and eligible training providers in carrying out the performance reporting required under section 116(d), including facilitating data matches for program participants using quarterly wage record information (including the wage records made available by any other State and information provided from the National Directory of New Hires in accordance with section 453(j)(8) of the Social Security Act (42 U.S.C. 653(j)(8))) and other sources of information, as necessary to measure the performance of programs and activities conducted under chapter 2 or chapter 3 of this subtitle;”;

(ii) in clause (v)—

(I) in subclause (II), by striking “customized training” and inserting “employer-directed skills development”; and

(II) in subclause (VI), by striking “and” at the end;

(iii) in clause (vi), by striking the period at the end and inserting a semicolon; and

(iv) by adding at the end the following:

“(vii) coordinating (which may be done in partnership with other States) with industry organizations, employers (including small and mid-sized employers), industry or sector partnerships, training providers, local boards, and institutions of higher education to identify or develop competency-based assessments that are a valid and reliable method of collecting information with respect to, and measuring, the prior knowledge, skills, and abilities of individuals who are adults or dislocated workers for the purpose of—

“(I) awarding, based on the knowledge, skills, and abilities of such an individual validated by such assessments—

“(aa) a recognized postsecondary credential that is used by employers in the State for recruitment, hiring, retention, or advancement purposes;

“(bb) postsecondary credit toward a recognized postsecondary credential aligned with in-demand industry sectors and occupations in the State for the purpose of accelerating attainment of such credential; and

“(cc) postsecondary credit for progress along a career pathway developed by the State or a local area within the State;

“(II) developing individual employment plans under subsection (c)(2)(B)(vii)(II) that incorporate the knowledge, skills, and abilities of such an individual to identify—

“(aa) in-demand industry sectors or occupations that require similar knowledge, skills, and abilities; and

“(bb) any upskilling needed for the individual to secure employment in such a sector or occupation; and

“(III) helping such an individual communicate such knowledge, skills, and abilities to prospective employers through a skills-based resume, profile, or portfolio; and

“(viii) disseminating to local areas and employers information relating to the competency-based assessments identified or developed pursuant to clause (vii), including—

“(I) any credential or credit awarded pursuant to items (aa) through (cc) of clause (vii)(I);

“(II) the industry organizations, employers, training providers, and institutions of higher education located within the State that recognize the knowledge, skills, and abilities of an individual validated by such assessments;

“(III) how such assessments may be provided to, and accessed by, individuals through the one-stop delivery system; and

“(IV) information on the extent to which such assessments are being used by employers and local areas in the State.”.

(3) ALLOWABLE STATEWIDE EMPLOYMENT AND TRAINING ACTIVITIES.—Section 134(a)(3)(A) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)(3)(A))—

(A) in clause (i)—

(i) by inserting “or evidence-based” after “innovative”; and

(ii) by striking “customized training” and inserting “employer-directed skills development”;

(B) in clause (ii), by inserting “, or bringing evidence-based strategies to scale,” after “strategies”;

(C) in clause (iii), by striking “ and prior learning assessment to” and inserting “, prior learning assessment, or a competency-based assessment identified or developed by the State under paragraph (2)(B)(vii), to”;

(D) in clause (viii)(II)—

(i) in item (dd), by striking “and literacy” and inserting “, literacy, and digital literacy”;

(ii) in item (ee), by striking “ex-offenders in reentering the workforce; and” and inserting “ justice-involved individuals in reentering the workforce;”; and

(iii) by adding at the end the following:

“(gg) programs under the Older Americans Act of 1965 (42 U.S.C. 3001 et seq.) that support employment and economic security; and”;

(E) in clause (xiii), by striking “and” at the end;

(F) in clause (xiv), by striking the period at the end and inserting a semicolon; and

(G) by adding at the end the following:

“(xv) supporting employers seeking to implement skills-based hiring practices, which may include technical assistance on the use and validation of employment assessments (including competency-based assessments developed or identified by the State pursuant to paragraph (2)(B)(vii)), and support in the creation of skills-based job descriptions;

“(xvi) developing partnerships between educational institutions (including area career and technical education schools, local educational agencies, and institutions of higher education) and employers to create or improve workforce development programs to address the identified education and skill needs of the workforce and the employment needs of employers in regions of the State, as determined by the most recent analysis conducted under subparagraphs (A), (B), and (C) of section 102(b)(1);

“(xvii) identifying and making available to residents of the State, free or reduced cost access to online skills development programs that are aligned with in-demand industries or occupations in the State and lead to attainment of a recognized postsecondary credential valued by employers in such industries or occupations; and

“(xviii) establishing and administering a critical industry skills fund under paragraph (4).”.

(4) CRITICAL INDUSTRY SKILLS FUND.—Section 134(a) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)), as amended, is further amended by adding at the end the following:

“(4) CRITICAL INDUSTRY SKILLS FUND.—

“(A) PERFORMANCE-BASED PAYMENTS.—A State shall use funds reserved under paragraph (3)(A) of section 128(a), and any funds reserved under paragraph (3)(B) of section 128(a), to establish and administer a critical industry skills fund to award performance-based payments on a per-worker basis to eligible entities that provide eligible skills development programs to prospective workers or incumbent workers (which may include youth age 18 through age 24) in industries and occupations identified by the Governor under subparagraph (B) that will result in employment or retention with a participating employer.

“(B) INDUSTRIES AND OCCUPATIONS.—

“(i) IN GENERAL.—The Governor (in consultation with the State board)—

“(I) shall identify the industries and occupations for which an eligible skills development program carried out by an eligible entity in the State may receive funds under this paragraph; and

“(II) may select the industries and occupations identified under subclause (I) that will receive priority for funds under this paragraph.

“(ii) HIGH GROWTH AND HIGH WAGE.—In selecting industries or occupations to prioritize pursuant to clause (i)(II), the Governor may consider—

“(I) industries that have, or are expected to have, a high rate of growth and an unmet demand for skilled workers; and

“(II) occupations—

“(aa) with wages that are significantly higher than an occupation of similar level of skill or needed skill development; or

“(bb) that are aligned with career pathways into higher wage occupations.

“(C) SUBMISSION OF PROPOSALS.—

“(i) IN GENERAL.—To be eligible to receive a payment under the critical industry skills fund established under this paragraph by a State, an eligible entity shall submit a proposal to the Governor in such form and at such time as the Governor may require (subject to the requirements of clause (ii)), which shall include—

“(I) a description of the industries or occupations in which the participating employer is seeking to fill jobs, the specific skills or credentials necessary for an individual to obtain such a job, and the salary range of such a job;

“(II) the expected number of individuals who will participate in the skills development program to be carried out by the eligible entity;

“(III) a description of the eligible skills development program, including the provider, the length of the program, the skills to be gained, and any recognized postsecondary credentials that will be awarded;

“(IV) the total cost of providing the program;

“(V) for purposes of receiving a payment pursuant to subparagraph (D)(i)(II)(bb), a commitment from the participating employer in the eligible entity to employ each participant of the program for not less than a 6-month period (or a longer period as determined by the State) after successful completion of the program; and

“(VI) an assurance that the entity will—

“(aa) establish the written agreements described in subparagraph (D)(ii)(I);

“(bb) maintain and submit the documentation described in subparagraph (D)(ii)(II); and

“(cc) maintain and submit the necessary documentation for the State to verify participant outcomes and report such outcomes as described in subparagraph (F).

“(ii) ADMINISTRATIVE BURDEN.—The Governor shall ensure that the form and manner in which a proposal required to be submitted under clause (i) is designed to minimize paperwork and administrative burden for entities.

“(iii) APPROVAL OF SUBSEQUENT PROPOSALS.—With respect to an eligible entity that has had a proposal approved by the Governor under this subparagraph and that submits a subsequent proposal under this subparagraph, the eligible entity may only receive approval from the Governor for the subsequent proposal if—

“(I) with respect to the most recent proposal approved under this subparagraph—

“(aa) the skills development program has ended;

“(bb) for any participants employed by the participating employer in accordance with subparagraph (C)(i)(V), the minimum periods of such employment described in such subparagraph have ended;

“(cc) all the payments under subparagraph (D) owed to the eligible entity have been made; and

“(dd) not fewer than 70 percent of the participants who enrolled in the skills development program—

“(AA) completed such program; and

“(BB) after such completion, were employed by the participating employer for the minimum period described in subparagraph (C)(i)(V); and

“(II) the eligible entity meets any other requirements that the Governor may establish with respect to eligible entities submitting subsequent proposals.

“(D) REIMBURSEMENT FOR APPROVED PROPOSALS.—

“(i) STATE REQUIREMENTS.—

“(I) IN GENERAL.—With respect to each eligible entity whose proposal under subparagraph (C) has been approved by the Governor, the Governor shall make payments (in an amount determined by the Governor and subject to the requirements of subclause (II) of this clause, subparagraphs (E) and (G), and any other limitations determined necessary by the State) from the critical industry skills fund established under this paragraph to such eligible entity for each participant of the eligible skills development program described in such proposal and with respect to whom the eligible entity meets the requirements of clause (ii).

“(II) PAYMENTS.—In making payments to an eligible entity under subclause (I) with respect to a participant—

“(aa) 50 percent of the total payment shall be made after the participant completes the eligible skills development program offered by the eligible entity; and

“(bb) the remaining 50 percent of such total payment shall be made after the participant has been employed by the participating employer for the minimum period described in subparagraph (C)(i)(V).

“(ii) ELIGIBLE ENTITY REQUIREMENTS.—To be eligible to receive the payments described in clause (i) with respect to a participant, an eligible entity described in such clause shall—

“(I) establish a written agreement with the participant that includes the information described in subclauses (I) and (III) of subparagraph (C)(i); and

“(II) submit documentation as the Governor determines necessary to verify that such participant has completed the skills development program offered by the eligible entity and has been employed by the participating employer for the minimum period described in subparagraph (C)(i)(V).

“(E) NON-FEDERAL COST SHARING.—

“(i) LIMITS ON FEDERAL SHARE.—An eligible entity may not receive funds under subparagraph (D) with respect to a participant of the eligible skills development program offered by the eligible entity in excess of the following costs of such program:

“(I) In the case of a participating employer of such eligible entity with 25 or fewer employees, 90 percent of the costs.

“(II) In the case of a participating employer of such eligible entity with more than 25 employees, but fewer than 100 employees, 75 percent of the costs.

“(III) In the case of a participating employer of such eligible entity with 100 or more employees, 50 percent of the costs.

“(ii) NON-FEDERAL SHARE.—

“(I) IN GENERAL.—Any costs of the skills development program offered to a participant by such eligible entity that are not covered by the funds received under subparagraph (D) shall be the non-Federal share provided by the eligible entity (in cash or in-kind).

“(II) EMPLOYER COST SHARING.—If the eligible skills development program is being provided on-the-job, the non-Federal share provided by an eligible entity may include the amount of the wages paid by the participating employer of the eligible entity to a participant while such participant is receiving the training.

“(F) PERFORMANCE REPORTING.—

“(i) IN GENERAL.—The State shall use the participant information provided by eligible entities to submit to the Secretary a report, on an annual basis, with respect to the participants of the eligible skills development programs for which the eligible entities received funds under this paragraph for the most recent program year, which shall—

“(I) be made digitally available by the Secretary using linked, open, and interoperable data, which shall include; and

“(II) include—

“(aa) the number of individuals who participated in programs, unless such information would reveal personally identifiable information about an individual); and

“(bb) performance outcomes on the measures listed in clause (ii).

“(ii) MEASURES.—The measures listed below are as follows:

“(I) The percentage of participants who completed the skills development program.

“(II) The percentage of participants who were employed by the participating employer for a 6-month period after program completion.

“(III) The percentage of participants who were employed by the participating employer as described in subclause (II), and who remained employed by the participating employer 1 year after program completion.

“(IV) The median earnings of program participants who are in unsubsidized employment during the second quarter after program completion.

“(V) The median earnings increase of program participants, measured by comparing the earning of a participant in the second quarter prior to entry into the program to the earnings of such participant in the second quarter following completion of the program.

“(G) DEFINITIONS.—In this paragraph:

“(i) ELIGIBLE ENTITY.—The term ‘eligible entity’ means an employer, a group of employers, an industry or sector partnership, or another entity serving as an intermediary (such as a local board) that is in a partnership with at least one employer in an industry or occupation identified by the Governor under subparagraph (B)(i) (referred to in this paragraph as the ‘participating employer’).

“(ii) ELIGIBLE SKILLS DEVELOPMENT PROGRAM.—The term ‘eligible skills development program’, with respect to which a State may set a maximum and minimum length (in weeks)—

“(I) includes work-based education or related occupational skills instruction that—

“(aa) develops the specific technical skills necessary for successful performance of the occupations in which participants are to be employed upon completion; and

“(bb) may be provided by the eligible entity or by any training provider selected by the eligible entity and that is not required to be on a list of eligible providers of training services described in section 122(d); and

“(II) may not include employee onboarding, orientation, or professional development generally provided to employees.”.

(5) STATE-IMPOSED REQUIREMENTS.—Section 134(a) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(a)), as amended, is further amended by adding at the end the following:

“(5) STATE-IMPOSED REQUIREMENTS.—Whenever a State or outlying area implements any rule or policy relating to the administration or operation of activities authorized under this title that has the effect of imposing a requirement that is not imposed under Federal law, or is not a requirement, process, or criteria that the Governor or State is directed to establish under Federal law, the State or outlying area shall identify to local areas and eligible providers the requirement as being imposed by the State or outlying area.”.

(b) Required local employment and training activities.—

(1) MINIMUM AMOUNT FOR SKILLS DEVELOPMENT.—Section 134(c)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(c)(1)) is amended—

(A) in subparagraph (A)(iv), by striking “to” and inserting “to provide business services described in paragraph (4) and”;

(B) by redesignating subparagraph (B) as subparagraph (C); and

(C) by inserting after subparagraph (A), as so amended, the following:

“(B) MINIMUM AMOUNT FOR SKILLS DEVELOPMENT.—Not less than 50 percent of the funds described in subparagraph (A) shall be used by the local area—

“(i) for the payment of training services—

“(I) provided to adults under paragraph (3)(F)(iii); and

“(II) provided to adults and dislocated workers under paragraph (3)(G)(ii); and

“(ii) for the payment of training services under paragraph (2)(A) of section 414(c) of the American Competitiveness and Workforce Improvement Act of 1998 (29 U.S.C. 3224a(c)) after funds allocated to such local area under paragraph (1) of such section 414(c) have been exhausted.”; and

(D) in subparagraph (C), as so redesignated, by striking “and (ii)” and inserting “, (ii), and (iv)”.

(2) CAREER SERVICES.—Section 134(c)(2) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(c)(2)) is amended—

(A) by redesignating subparagraphs (A) through (C) as subparagraphs (B) through (D), respectively;

(B) by inserting before subparagraph (B), as so redesignated, the following:

“(A) BASIC CAREER SERVICES.—

“(i) IN GENERAL.—The one-stop delivery system—

“(I) shall coordinate with the Employment Service office colocated with the one-stop delivery system for such Employment Service office to provide, using the funds allotted to the State under section 6 of the Wagner-Peyser Act (29 U.S.C. 49e), basic career services, which shall—

“(aa) include, at a minimum, the services listed in clause (ii); and

“(bb) be available to individuals who are adults or dislocated workers in an integrated manner to streamline access to assistance for such individuals, to avoid duplication of services, and to enhance coordination of services; and

“(II) may use funds allocated under paragraph (1)(A), as necessary, to supplement the services that are provided pursuant to subclause (I) to individuals who are adults or dislocated workers.

“(ii) SERVICES.—The basic career services provided pursuant to clause (i) shall include—

“(I) provision of workforce and labor market employment statistics information, including the provision of accurate (and, to the extent practicable, real-time) information relating to local, regional, and national labor market areas, including—

“(aa) job vacancy listings in such labor market areas;

“(bb) information on job skills necessary to obtain the jobs described in item (aa); and

“(cc) information relating to local occupations in demand (which may include entrepreneurship opportunities), and the earnings, skill requirements, and opportunities for advancement for such occupations;

“(II) labor exchange services, including job search and placement assistance and, in appropriate cases, career counseling, including—

“(aa) provision of information on in-demand industry sectors and occupations;

“(bb) provision of information on nontraditional employment; and

“(cc) provision of information on entrepreneurship, as appropriate;

“(III) (aa) provision of information, in formats that are usable by and understandable to 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 supplemental nutrition assistance program established under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), assistance through the earned income tax credit under section 32 of the Internal Revenue Code of 1986, and assistance under a State program for temporary assistance for needy families 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

“(bb) referral to the services or assistance described in item (aa), as appropriate;

“(IV) provision of information and assistance regarding filing claims for unemployment compensation; and

“(V) assistance in establishing eligibility for programs of financial aid assistance for training and education programs that are not funded under this Act.”;

(C) in subparagraph (B), as so redesignated—

(i) in the heading, by striking the heading and inserting “Individualized career”;

(ii) by inserting “individualized” before “career services”;

(iii) by inserting “shall, to the extent practicable, be evidence-based,” before “and shall”;

(iv) in clause (iii), by inserting “, and a determination (considering factors including prior work experience, military service, education, and in-demand industry sectors and occupations in the local area) of whether such an individual would benefit from a competency-based assessment developed or identified by the State pursuant to subsection (a)(2)(B)(vii) to accelerate the time to obtaining employment that leads to economic self-sufficiency or career advancement” before the semi-colon at the end;

(v) by striking clauses (iv), (vi), (ix), (x), and (xi);

(vi) by redesignating clauses (v), (vii), (viii), (xii), and (xiii) as clauses (iv), (v), (vi), (vii), and (viii), respectively;

(vii) in clause (v), as so redesignated, by inserting “and credential” after “by program”; and

(viii) in clause (vii)(I)(aa), as so redesignated, by inserting “, including a competency-based assessment developed or identified by the State pursuant to subsection (a)(2)(B)(vii)” after “tools”;

(D) by amending subparagraph (C), as so redesignated, to read as follows:

“(C) USE OF PREVIOUS ASSESSMENTS.—A one-stop operator or one-stop partner shall not be required to conduct a new interview, evaluation, or assessment of a participant under subparagraph (B)(vii) if the one-stop operator or one-stop partner determines that—

“(i) it is appropriate to use a recent interview, evaluation, or assessment of the participant conducted pursuant to another education or training program; and

“(ii) using such recent interview, evaluation, or assessment will accelerate an eligibility determination.”; and

(E) in subparagraph (D), as so redesignated—

(i) by inserting “individualized” before “career”; and

(ii) in clause (ii), by inserting “, libraries, and community-based organizations” after “nonprofit service providers”.

(3) TRAINING SERVICES.—Section 134(c)(3) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(c)(3)) is amended—

(A) in subparagraph (A)—

(i) in clause (i), in the matter preceding subclause (I), by striking “clause (ii)” and inserting “clause (ii) or (iii)”

(ii) in clause (i)(II)—

(I) by striking “or in” and inserting “in” and

(II) by inserting “, or that may be performed remotely” after “relocate”;

(iii) by redesignating clause (iii) as clause (iv);

(iv) by inserting after clause (ii) the following:

“(iii) EMPLOYER REFERRAL.—

“(I) IN GENERAL.—A one-stop operator or one-stop partner shall not be required to conduct an interview, evaluation, or assessment of an individual under clause (i)(I) if such individual—

“(aa) is referred by an employer to receive on-the-job training or employer-directed skills development in connection with that employer; and

“(bb) has been certified by the employer as being in need of training services to obtain unsubsidized employment with such employer and having the skills and qualifications to successfully participate in the selected program of training services.

“(II) PRIORITY.—A one-stop operator or one-stop partner shall follow the priority described in subparagraph (E) to determine whether an individual that meets the requirements of subclause (I) of this clause is eligible to receive training services.”; and

(v) by adding at the end the following:

“(v) ADULT EDUCATION AND FAMILY LITERACY ACTIVITIES.—In the case of an individual who is determined to not have the skills and qualifications to successfully participate in the selected program of training services under clause (i)(I)(cc), the one-stop operator or one-stop partner shall refer such individual to adult education and literacy activities under title II, including for co-enrollment in such activities, as appropriate.”;

(B) in subparagraph (B)—

(i) in clause (i)—

(I) in subclause (I), by striking “other grant assistance for such services, including” and inserting “assistance for such services under”; and

(II) by striking “under other grant assistance programs, including” and inserting “under”; and

(ii) by adding at the end the following:

“(iv) PARTICIPATION DURING ELIGIBILITY DETERMINATION.—An individual may participate in a program of training services during the period which such individual’s eligibility for training services under clause (i) is being determined, except that the provider of such a program shall only receive reimbursement under this Act for the individual’s participation during such period if such individual is determined to be eligible under clause (i).”;

(C) in subparagraph (D)(xi), by striking “customized training” and inserting “employer-directed skills development”;

(D) in subparagraph (E)—

(i) by striking “are basic skills deficient” and inserting “have foundational skill needs”; and

(ii) by striking “paragraph (2)(A)(xii)” and inserting “paragraph (2)(B)(vii)”;

(E) in subparagraph (G)(ii)—

(i) in subclause (II), by striking “customized training” and inserting “employer-directed skills development”; and

(ii) in subclause (IV), by striking “is a” and inserting “is an evidence-based”;

(F) in subparagraph (H)—

(i) in clause (i), by striking “reimbursement described in section 3(44)” and inserting “reimbursement described in the definition of the term “on-the-job training” in section 3”; and

(ii) in clause (ii)—

(I) in subclause (I), by inserting “, such as the extent to which participants are individuals with barriers to employment” after “participants”; and

(II) in subclause (III), by inserting “, including whether the skills a participant will obtain are transferable to other employers, occupations, or industries in the local area or the State” after “opportunities”; and

(G) by adding at the end the following:

“(I) EMPLOYER-DIRECTED SKILLS DEVELOPMENT.—An employer may receive a contract from a local board to provide employer-directed skills development to a participant or group of participants if the employer submits to the local board an agreement that establishes—

“(i) the provider of the skills development program, which may be the employer;

“(ii) the length of the skills development program;

“(iii) the recognized postsecondary credentials that will be awarded to, or the occupational skills that will be gained by, program participants;

“(iv) the cost of the skills development program;

“(v) the amount of such cost that will be paid by the employer, which shall not be less than the amount specified in subparagraph (C) of the definition of the term ‘employer-directed skills development’ in section 3; and

“(vi) a commitment by the employer to employ the participating individual or individuals upon successful completion of the program.”.

(c) Business services.—Section 134(c) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(c)) is further amended—

(1) in paragraph (1)(A)(iv), by inserting “provide business services described in paragraph (4) and” before “establish”; and

(2) by adding at the end the following:

“(4) BUSINESS SERVICES.—Funds described in paragraph (1) shall be used to provide appropriate recruitment and other business services and strategies on behalf of employers, including small employers, that meet the workforce investment needs of area employers, as determined by the local board and consistent with the local plan under section 108, which services—

“(A) 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, philanthropic, and other public and private resources in a manner determined appropriate by the local board; and

“(B) may include one or more of the following:

“(i) Developing and implementing industry sector strategies (including strategies involving industry partnerships, regional skills alliances, industry skill panels, and sectoral skills partnerships).

“(ii) Developing and delivering innovative workforce investment services and strategies for area employers, which may include career pathways, skills upgrading, skill standard development and certification for recognized postsecondary credential or other employer use, apprenticeship, and other effective initiatives for meeting the workforce investment needs of area employers and workers.

“(iii) Assistance to area employers in managing reductions in force in coordination with rapid response activities provided under subsection (a)(2)(A) and developing strategies for the aversion of layoffs, which strategies may include early identification of firms at risk of layoffs, use of feasibility studies to assess the needs of and options for at-risk firms, and the delivery of employment and training activities to address risk factors.

“(iv) The marketing of business services offered under this title to appropriate area employers, including small and mid-sized employers.

“(v) Technical assistance or other support to employers seeking to implement skills-based hiring practices, which may include technical assistance on the use and validation of employment assessments, including competency-based assessments developed or identified by the State pursuant to paragraph (2)(B)(vii), and support in the creation of skills-based job descriptions.

“(vi) Other services described in this subsection, including providing information and referral to microenterprise services, as appropriate, and specialized business services not traditionally offered through the one-stop delivery system.”.

(d) Permissible local employment and training activities.—

(1) ACTIVITIES.—Section 134(d)(1)(A) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(d)(1)(A)) is amended—

(A) by amending clause (iii) to read as follows:

“(iii) implementation of a pay-for-performance contract strategy for training services, for which the local board may reserve and use not more than 40 percent of the total funds allocated to the local area under paragraph (2) or (3) of section 133(b), except that after 2 fiscal years of a local board implementing such pay-for-performance contract strategy, the local board may request approval from the Governor to reserve and use not more than 60 percent of the total funds allocated to the local area under paragraph (2) or (3) of section 133(b) for such strategy for the following fiscal year if the local board can demonstrate to the Governor the performance improvements achieved through the use of such strategy;”;

(B) in clause (vii)—

(i) in subclause (II), by striking “and” at the end;

(ii) in subclause (III), by inserting “and” at the end; and

(iii) by adding at the end the following:

“(IV) to strengthen, through professional development activities, the knowledge and capacity of staff to use the latest digital technologies, tools, and strategies to deliver high quality services and outcomes for jobseekers, workers, and employers;”;

(C) in clause (ix)(II)—

(i) in item (cc), by striking “and” at the end;

(ii) in item (dd), by inserting “and” at the end; and

(iii) by adding at the end the following:

“(ee) technical assistance or other support to employers seeking to implement skills-based hiring practices, which may include technical assistance on the use and validation of employment assessments, including competency-based assessments developed or identified by the State pursuant to paragraph (2)(B)(vii), and support in the creation of skills-based job descriptions;”;

(D) in clause (xi), by striking “and” at the end;

(E) in clause (xii), by striking the period at the end and inserting a semicolon; and

(F) by adding at the end the following:

“(xiii) the use of competency-based assessments for individuals upon initial assessment of skills (pursuant to subsection (c)(2)(A)(iii)) or completion of training services or other learning experiences; and

“(xiv) the development of partnerships between educational institutions (including area career and technical education schools, local educational agencies, and institutions of higher education) and employers to create or improve workforce development programs to address the identified education and skill needs of the workforce and the employment needs of employers in a region, as determined based on the most recent analysis conducted by the local board under section 107(d)(2).”.

(2) INCUMBENT WORKER TRAINING PROGRAMS.—

(A) IN GENERAL.—Section 134(d)(4)(A) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(d)(4)(A)) is amended—

(i) in clause (i), by striking “20” and inserting “30”’

(ii) by redesignating clauses (ii) and (iii) as clauses (iii) and (iv), respectively; and

(iii) by inserting after clause (i) the following:

“(ii) INCREASE IN RESERVATION OF FUNDS.—Notwithstanding clause (i)—

“(I) with respect to a local area that had a rate of unemployment of not more than 3 percent for not less than 6 months during the preceding program year, clause (i) shall be applied by substituting ‘40 percent’ for ‘30 percent’; or

“(II) with respect to a local area that meets the requirement in subclause (I) and is located in a State that had a labor force participation rate of not less than 68 percent for not less than 6 months during the preceding program year, clause (i) shall be applied by substituting ‘45 percent’ for ‘30 percent’.”.

(B) INCUMBENT WORKER UPSKILLING ACCOUNTS.—Section 134(d)(4) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3174(d)(4)) is further amended by adding at the end the following:

“(E) INCUMBENT WORKER UPSKILLING ACCOUNTS.—

“(i) IN GENERAL.—To establish incumbent worker upskilling accounts through which an eligible provider of training services under section 122 may be paid for the program of training services provided to an incumbent worker, a local board—

“(I) (aa) may use, from the funds reserved by the local area under subparagraph (A)(i), an amount that does not exceed 5 percent of the funds allocated to such local area under section 133(b); or

“(bb) if the local area reserved funds under subparagraph (A)(ii), may use, from the funds reserved by the local area under subparagraph (A)(ii), an amount that does not exceed 10 percent of the funds allocated to such local area under section 133(b); and

“(II) may use funds reserved under section 134(a)(2)(A) for statewide rapid response activities and provided by the State to local area to establish such accounts.

“(ii) ELIGIBILITY.—

“(I) IN GENERAL.—Subject to subclause (II), a local board that seeks to establish incumbent worker upskilling accounts under clause (i) shall establish criteria for determining the eligibility of an incumbent worker to receive such an account, which shall take into account factors of—

“(aa) the wages of the incumbent worker as of the date of determining such worker’s eligibility under this clause;

“(bb) the career advancement opportunities for the incumbent worker in the occupation of such worker as of such date; and

“(cc) the ability of the incumbent worker to, upon completion of the program of training services selected by such worker, secure employment in an in-demand industry or occupation in the local area that will lead to economic self-sufficiency and wages higher than the current wages of the incumbent worker.

“(II) LIMITATION.—

“(aa) IN GENERAL.—An incumbent worker described in item (bb) shall be ineligible to receive an incumbent worker upskilling account under this subparagraph.

“(bb) INELIGIBILITY.—Item (aa) shall apply to an incumbent worker—

“(AA) whose total annual wages for the most recent year are greater than the median household income of the State; or

“(BB) who has earned a baccalaureate or professional degree.

“(iii) COST SHARING FOR CERTAIN INCUMBENT WORKERS.—With respect to an incumbent worker determined to be eligible to receive an incumbent worker upskilling account who is not a low-income individual—

“(I) such incumbent worker shall pay not less than 25 percent of the cost of the program of training services selected by such worker; and

“(II) funds provided through the incumbent worker upskilling account established for such worker shall cover the remaining 75 percent of the cost of the program.”.

Section 136 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3181) is amended to read as follows:

Section 141 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3191) is amended by striking “centers” each place it appears and inserting “campuses”.

Section 142 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3192) is amended—

(1) in paragraphs (1), (7), (8), and (10), by striking “center” each place it appears and inserting “campus”; and

(2) in paragraph (7), by striking “center” in the header and inserting “campus”.

Section 144 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3194) is amended—

(1) in subsection (a)—

(A) in paragraph (1)—

(i) by striking “21” and inserting “24”;

(ii) by amending subparagraph (A) to read as follows:

“(A) an individual who is age 16 or 17 shall be eligible only upon an individual determination by the director of a Job Corps campus that such individual meets the criteria described in subparagraph (A) or (B) of section 145(b)(1); and”; and

(iii) in subparagraph (B), by striking “either”;

(B) in paragraph (2), by inserting after “individual” the following: “or a resident of a qualified opportunity zone as defined in section 1400Z–1(a) of the Internal Revenue Code of 1986”; and

(C) in paragraph (3), by amending subparagraph (A) to read as follows:

“(A) Has foundational skill needs.”;

(2) in subsection (b), by inserting after “a veteran” the following: “or a member of the Armed Forces eligible for preseparation counseling of the Transition Assistance Program under section 1142 of title 10, United States Code”; and

(3) by inserting at the end the following:

“(c) Special rule for homeless and foster youth.—In determining whether an individual is eligible to enroll for services under this subtitle on the basis of being an individual who is a homeless child or youth, or a youth in foster care, as described in subsection (a)(3)(C), staff shall—

“(1) if determining whether the individual is a homeless child or youth, use a process that is in compliance with the requirements of subsection (a) of section 479D of the Higher Education Act of 1965, as added by section 702(l) of the FAFSA Simplification Act (Public Law 116–260), for financial aid administrators; and

“(2) if determining whether the individual is a youth in foster care, use a process that is in compliance with the requirements of subsection (b) of such section 479D of the Higher Education Act of 1965, as added by section 702(l) of the FAFSA Simplification Act (Public Law 116–260), for financial aid administrators.”.

Section 145 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3195) is amended—

(1) in subsection (a)—

(A) in paragraph (2)—

(i) by amending subparagraph (A) to read as follows:

“(A) prescribe procedures for—

“(i) administering drug tests to enrollees; and

“(ii) informing such enrollees that drug tests will be administered;”;

(ii) in subparagraph (D), by striking “and”;

(iii) in subparagraph (E), by striking the period and inserting “; and”; and

(iv) by adding at the end the following:

“(F) assist applicable one-stop centers and other entities identified in paragraph (3) in developing joint applications for Job Corps, YouthBuild, and the youth activities described in section 129.”; and

(B) by adding at the end the following:

“(6) DRUG TEST PROCEDURES.—The procedures prescribed under paragraph (2)(A)(i) shall require that—

“(A) each enrollee take a drug test not more than 48 hours after such enrollee arrives on campus;

“(B) if the result of the drug test taken by an enrollee pursuant to subparagraph (A) is positive, the enrollee take a subsequent drug test at the earliest appropriate time (considering the substance and potency levels identified in the initial test) to determine if the enrollee has continued to use drugs since arriving on campus, the results of which must be received not later than 50 days after the enrollee arrived on campus; and

“(C) if the result of the subsequent test administered under subparagraph (B) is positive, the enrollee be terminated from the program and referred to a substance use disorder treatment program.”; and

(2) in subsections (b), (c), and (d)—

(A) by striking “center” each place it appears and inserting “campus”; and

(B) by striking “centers” each place it appears and inserting “campus”.

Section 147 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3197) is amended—

(1) in the header, by striking “centers” and inserting “campuses”;

(2) in subsection (a)—

(A) in paragraph (1)—

(i) by striking “center” each place it appears and inserting “campus”; and

(ii) in subparagraph (A), by inserting after “area career and technical education school,” the following: “an institution of higher education,”;

(B) in paragraph (2)—

(i) in subparagraph (A)—

(I) by striking “center” each place it appears and inserting “campus”; and

(II) by inserting after “United States Code,” the following: “and paragraph (2)(C)(iii) of section 159(f),”; and

(ii) in subparagraph (B)—

(I) in clause (i)—

(aa) by striking “operate a Job Corps center” and inserting “operate a Job Corps campus”;

(bb) by striking subclause (IV);

(cc) by redesignating subclauses (I), (II), (III), and (V), as subclauses (III), (IV), (V), and (VI), respectively;

(dd) by inserting before subclause (III), as so redesignated, the following:

“(I) (aa) in the case of an entity that has previously operated a Job Corps campus, a numeric metric of the past achievement on the primary indicators of performance for eligible youth described in section 116(b)(2)(A)(ii); or

“(bb) in the case of an entity that has not previously operated a Job Corps campus, an alternative numeric metric on the past effectiveness of the entity in successfully assisting at-risk youth to connect to the labor force, based on such primary indicators of performance for eligible youth;

“(II) in the case of an entity that has previously operated a Job Corps campus, any information regarding the entity included in any report developed by the Office of Inspector General of the Department of Labor;”;

(ee) in subclauses (III) and (IV), as so redesignated, by striking “center” each place it appears and inserting “campus”;

(ff) in subclause (V), as so redesignated, by striking “center is located” and inserting “campus is located, including agreements to provide off-campus work-based learning opportunities aligned with the career and technical education provided to enrollees”; and

(gg) by amending subclause (VI), as so redesignated, to read as follows:

“(VI) the ability of the entity to implement an effective behavior management plan, as described in section 152(a), and maintain a safe and secure learning environment for enrollees.”; and

(II) in clause (ii), by striking “center” and inserting “campus”;

(C) in paragraph (3)—

(i) by striking “center” each place it appears and inserting “campus”;

(ii) in subparagraph (D), by inserting after “is located” the following: “, including agreements to provide off-campus work-based learning opportunities aligned with the career and technical education provided to enrollees”;

(iii) by redesignating subparagraphs (E), (F), (G), (H), (I), (J), and (K) as subparagraphs (F), (G), (H), (I), (J), (K), and (L), respectively; and

(iv) by inserting after subparagraph (D) the following:

“(E) A description of the policies that will be implemented at the campus regarding security and access to campus facilities, including procedures to report on and respond to criminal actions and other emergencies occurring on campus.”;

(3) in subsection (b)—

(A) in the header, by striking “centers” and inserting “campuses”;

(B) by striking “center” each place it appears and inserting “campus”;

(C) by striking “centers” each place it appears and inserting “campuses”;

(D) in paragraph (2)(A), by striking “20 percent” and inserting “25 percent”; and

(E) by striking paragraph (3);

(4) in subsection (c)—

(A) by striking “centers” and inserting “campuses”; and

(B) by striking “20 percent” and inserting “30 percent”;

(5) in subsection (d) by striking “centers” each place it appears and inserting “campuses”;

(6) in subsection (e)(1), by striking “centers” and inserting “campuses”;

(7) in subsection (f), by striking “2-year period” and inserting “3-year period”; and

(8) in subsection (g)—

(A) by striking “center” each place it appears and inserting “campus”;

(B) in paragraph (1)—

(i) by striking subparagraph (A);

(ii) by redesignating subparagraph (B) as subparagraph (A);

(iii) by amending subparagraph (A), as so redesignated—

(I) by striking “50 percent” and inserting “80 percent”; and

(II) by striking the period at the end and inserting “; or”; and

(iv) by inserting after subparagraph (A), as so redesignated and amended, the following:

“(B) failed to achieve an average of 80 percent of the level of enrollment that was agreed to in the agreement described in subsection (a)(1)(A).”;

(C) in paragraph (3) by striking “shall provide” and inserting “shall provide, at least 30 days prior to renewing the agreement”; and

(D) in paragraph (4)—

(i) in subparagraph (C), by striking “and” after the semicolon;

(ii) by redesignating subparagraph (D) as subparagraph (E); and

(iii) by inserting after subparagraph (C) the following:

“(D) has maintained a safe and secure campus environment; and”.

Section 148 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3198) is amended—

(1) in subsection (a)—

(A) by striking “center” and inserting “campus”;

(B) in paragraph (1), by inserting before the period at the end the following: “, and productive activities, such as tutoring or other skills development opportunities, for enrollees to participate in outside of regular class time and work hours in order to increase supervision of enrollees and reduce behavior infractions”; and

(2) in subsection (c)—

(A) by striking “centers” each place it appears and inserting “campuses”; and

(B) in paragraph (1)—

(i) by striking “the eligible providers” and inserting “any eligible provider”; and

(ii) by inserting after “under section 122” the following: “that is aligned with the career and technical education an enrollee has completed”.

Section 150 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3200) is amended—

(1) in subsection (a), by striking “centers” and inserting “campuses”; and

(2) by adding at the end the following:

“(d) Period of transition.—Notwithstanding the requirements of section 146(b), a Job Corps graduate may remain an enrollee and a resident of a Job Corps campus for not more than one month after graduation as such graduate transitions into independent living and employment if such graduate—

“(1) has not had a behavioral infraction in the 90 days prior to graduation; and

“(2) receives written approval from the director of the Job Corps campus to remain such a resident.”.

Section 151 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3201) is amended—

(1) by striking “center” each place it appears and inserting “campus”; and

(2) by adding at the end the following:

“(d) Local authority.—

“(1) IN GENERAL.—Subject to the limitations of the budget approved by the Secretary for a Job Corps campus, the operator of a Job Corps campus shall have the authority, without prior approval from the Secretary, to—

“(A) hire staff and provide staff professional development;

“(B) set terms and enter into agreements with Federal, State, or local educational partners, such as secondary schools, institutions of higher education, child development centers, units of Junior Reserve Officer Training Corps programs established under section 2031 of title 10, United States Code, or employers; and

“(C) engage with and educate stakeholders about Job Corps operations and activities.

“(2) LIMITATION OF LIABILITY.—In the case of an agreement described in paragraph (1)(B) that does not involve the Job Corps operator providing monetary compensation to the entity involved in such agreement from the funds made available under this subtitle, such agreement shall not be considered a subcontract (as defined in section 8701 of title 41, United States Code).

“(e) Prior notice.—Prior to making a change to the agreement described in section 147(a) or an operating plan described in this section, the Secretary shall solicit from the operators of the Job Corps campuses information on any operational costs the operators expect to result from such change.”.

Section 152 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3202) is amended—

(1) by striking “centers” each place it appears and inserting “campuses”;

(2) in subsection (a), by inserting “As part of the operating plan required under section 151(a), the director of each Job Corps campus shall develop and implement a behavior management plan consistent with the standards of conduct and subject to the approval of the Secretary.” at the end; and

(3) in subsection (b)(2)(A), by striking “or disruptive”;

(4) by amending subsection (c) to read as follows:

“(c) Appeal process.—

“(1) ENROLLEE APPEALS.—A disciplinary measure taken by a director under this section shall be subject to expeditious appeal in accordance with procedures established by the Secretary.

“(2) DIRECTOR APPEALS.—

“(A) IN GENERAL.—The Secretary shall establish an appeals process under which the director of a Job Corps campus may submit a request that an enrollee who has engaged in an activity which is a violation of the guidelines established pursuant to subsection (b)(2)(A) remain enrolled in the program, but be subject to other disciplinary actions.

“(B) CONTENTS.—An request under paragraph (A) shall include—

“(i) a signed certification from the director attesting that, to the belief of the director, the continued enrollment of such enrollee would not impact the safety or learning environment of the campus; and

“(ii) the behavioral records of such enrollee.

“(C) TIMELINE.—The Secretary shall review such appeal and either approve or deny the appeal within 30 days of receiving such appeal.

“(D) INELIGIBILITY FOR APPEAL.—The Secretary shall reject an appeal made by a director of a Job Corps campus if such campus has been found out of compliance with the requirements under subsection (d) at any time during the previous 5 years.”; and

(5) by adding at the end the following:

“(d) Incident reporting.—

“(1) IN GENERAL.—The Secretary shall require that the director of a Job Corps campus report to the appropriate regional office—

“(A) not later than 2 hours after the campus management becomes aware of the occurrence of—

“(i) an enrollee or on-duty staff death;

“(ii) any incident—

“(I) requiring law enforcement involvement;

“(II) involving a missing minor student; or

“(III) where substantial property damage has occurred; or

“(iii) a level 1 infraction;

“(B) in the case of a level 2 infraction, on a quarterly basis, including the number and type of such infractions that occurred during such time period; and

“(C) in the case of a minor infraction, as determined necessary by the Secretary.

“(2) INFRACTIONS DEFINED.—In this subsection:

“(A) LEVEL 1 INFRACTION.—The term ‘level 1 infraction’ means an activity described in subsection (b)(2)(A).

“(B) LEVEL 2 INFRACTION.—The term ‘level 2 infraction’ means an activity, other than a level 1 infraction, determined by the Secretary to be a serious infraction.

“(C) MINOR INFRACTION.—The term ‘minor infraction’ means an activity, other than a level 1 or 2 infraction, determined by the Secretary to be an infraction.

“(3) LAW ENFORCEMENT AGREEMENTS.—The director of each Job Corps campus shall enter into an agreement with the local law enforcement agency with jurisdiction regarding procedures for the prompt reporting and investigation of potentially illegal activity on Job Corps campuses.”.

Section 153 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3203) is amended—

(1) by striking “center” each place it appears and inserting “campus”;

(2) by striking “centers” each place it appears and inserting “campuses”; and

(3) in subsection (c), in the heading, by striking “Centers” and inserting “Campuses”.

Section 154 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3204) is amended—

(1) by striking “center” each place it appears and inserting “campus”;

(2) in subsection (d), in the heading, by striking “New centers” and inserting “New campuses”.

Section 155 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3205) is amended—

(1) by striking “The Secretary” and inserting “(a) In general.—The Secretary”;

(2) by striking “centers” and inserting “campuses”

(3) by striking “center” and inserting “campus”; and

(4) by adding at the end the following:

“(b) Advisory Committee to improve Job Corps safety.—Not later than 6 months after the date of enactment of the A Stronger Workforce for America Act, the Secretary shall establish an advisory committee to provide recommendations on effective or evidence-based strategies to improve—

“(1) safety, security, and learning conditions on Job Corps campuses; and

“(2) the standards for campus safety established under section 159(c)(4).”.

Section 156 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3206) is amended—

(1) by striking “center” and inserting “campus”;

(2) by striking “centers” and inserting “campuses”;

(3) by redesignating subsection (b) as subsection (c);

(4) by inserting the following after subsection (a):

“(b) Job Corps scholars.—

“(1) IN GENERAL.—The Secretary may award grants, on a competitive basis, to institutions of higher education to enroll cohorts of Job Corps eligible youth in Job Corps Scholars activities for a 24-month period and pay the tuition and necessary costs for enrollees for such period.

“(2) ACTIVITIES.—Job Corps Scholar activities shall include—

“(A) intensive counseling services and supportive services;

“(B) a 12-month career and technical education component aligned with in-demand industries and occupations in the State where the institution of higher education that is receiving the grant is located; and

“(C) a 12-month employment placement period that follows the component described in subparagraph (B).

“(3) PERFORMANCE DATA.—The Secretary shall collect performance information from institutions of higher education receiving grants under this subsection on the primary indicators of performance for eligible youth described in section 116(b)(2)(A)(ii), the cost per participant and cost per graduate, and other information as necessary to evaluate the success of Job Corps Scholars grantees in improving outcomes for at-risk youth.

“(4) EVALUATION.—At the end of each 2-year period for which the Secretary awards grants under this subsection, the Secretary shall provide for an independent, robust evaluation that compares—

“(A) the outcomes achieved by Job Corps Scholars participants with the outcomes achieved by other participants in the Job Corps program during such 2-year period; and

“(B) the costs of the Job Corps Scholars programs with the costs of other Job Corps programs during such 2-year period.”; and

(5) in subsection (c)(1), as so redesignated, is amended by striking “and” at the end of subparagraph (C) and by adding at the end the following:

“(D) in the development and implementation of a behavior management plan under section 152(a); and

“(E) maintaining a safe and secure learning environment; and”.

Section 158 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3208) is amended—

(1) by striking “center” each place it appears and inserting “campus”; and

(2) in subsection (f)—

(A) by striking “may accept on behalf of the Job Corps or individual Job Corps centers charitable donations of cash” and inserting “, on behalf of the Job Corps, or a Job Corps campus operator, on behalf of such campus, may accept grants, charitable donations of cash,”; and

(B) by inserting at the end the following: “Notwithstanding sections 501(b) and 522 of title 40, United States Code, any property acquired by a Job Corps campus shall be directly transferred, on a nonreimbursable basis, to the Secretary.”.

(a) Levels of performance.—Section 159 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3209) is amended—

(1) by striking “center” each place it appears and inserting “campus”;

(2) in subsection (c)—

(A) in paragraph (1)—

(i) by striking “The Secretary” and inserting the following:

“(A) IN GENERAL.—The Secretary”.

(ii) by inserting “that are ambitious yet achievable and” after “program”; and

(iii) by adding at the end the following new subparagraphs:

“(B) LEVELS OF PERFORMANCE.—In establishing the expected performance levels under subparagraph (A) for a Job Corps campus, the Secretary shall take into account—

“(i) how the levels involved compare with the recent performance of such campus and the performance of other campuses within the same State or geographic region;

“(ii) the levels of performance set for the primary indicators of performance for eligible youth described in section 116(b)(2)(A)(ii) for the State in which the campus is located;

“(iii) the differences in actual economic conditions (including differences in unemployment rates and job losses or gains in particular industries) between the local area of such campus and other local areas with a campus; and

“(iv) the extent to which the levels involved promote continuous improvement in performance on the primary indicators of performance by such campus and ensure optimal return on the use of Federal funds.

“(C) PERFORMANCE PER CONTRACT.—The Secretary shall ensure the expected levels of performance are established in the relevant contract or agreement.

“(D) REVISIONS BASED ON ECONOMIC CONDITIONS AND INDIVIDUALS SERVED DURING THE PROGRAM YEAR.—

“(i) IN GENERAL.—In the event of a significant economic downturn, the Secretary may revise the applicable adjusted levels of performance for each of the campuses for a program year to reflect the actual economic conditions during such program year.

“(ii) REPORT TO CONGRESS.—Prior to implementing the revisions described in clause (i), the Secretary shall submit to the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate a report explaining the reason for such revisions.

“(E) REVIEW OF PERFORMANCE LEVELS.—The Office of Inspector General of the Department of Labor shall, every 5 years, submit to the Committee on Education and the Workforce of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate, and publish in the Federal Register and on a publicly available website of the Department, a report containing—

“(i) a quadrennial review of the expected levels of performance; and

“(ii) an evaluation of whether—

“(I) the Secretary is establishing such expected levels of performance in good faith; and

“(II) such expected levels have led to continued improvement of the Job Corps program.”;

(B) by redesignating paragraph (4) as paragraph (5);

(C) by inserting after paragraph (3) the following:

“(4) CAMPUS SAFETY.—

“(A) IN GENERAL.—The Secretary shall establish campus and student safety standards. A Job Corps campus failing to achieve such standards shall be required to take the performance improvement actions described in subsection (f).

“(B) CONSIDERATIONS.—In establishing the campus and student safety standards under subparagraph (A), the Secretary shall take into account—

“(i) incidents reported under section 152(d);

“(ii) survey data from enrollees, faculty, staff, and community members; and

“(iii) any other considerations identified by the Secretary after reviewing the recommendations of the advisory group described in section 155(b).”;

(D) in paragraph (5), as so redesignated—

(i) in subparagraph (A), by striking “and” at the end;

(ii) in subparagraph (B), by striking the period at the end and inserting a semicolon; and

(iii) by adding at the end the following:

“(C) the number of contracts that were awarded a renewal compared to those eligible for a renewal;

“(D) the number of campuses where the contract was awarded to a new operator; and

“(E) the number of campuses that were required to receive performance improvement, as described under subsection (f)(2), including whether any actions were taken as described in subparagraphs (B) and (C) of such subsection.”; and

(E) by adding at the end the following:

“(6) WAGE RECORDS.—The Secretary shall make arrangements with a State or other appropriate entity to facilitate the use of State wage records to evaluate the performance of Job Corps campuses on the employment and earnings indicators described in clause (i)(III) of subparagraph (A) of section 116(b)(2)(A) and subclauses (I) and (II) of clause (ii) of such subparagraph for the purposes of the report required under paragraph (5).”;

(3) in subsection (d)(1)—

(A) by inserting “and make available on the website of the Department pertaining to the Job Corps program in a manner that is consumer-tested to ensure it is easily understood, searchable, and navigable,” after “subsection (c)(4),”;

(B) in subparagraph (B), by striking “gender” and inserting “sex”;

(C) by redesignating subparagraphs (J) through (O) as subparagraphs (K) through (P), respectively; and

(D) by inserting the following after subparagraph (I):

“(J) the number of appeals under section 152(c) and a description of each appeal that was approved;”; and

(4) in subsection (g)(2), by striking “comply” and inserting “attest to compliance”.

(b) Performance assessments and improvements.—Section 159(f) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3209) is amended to read as follows:

“(f) Performance assessments and improvements.—

“(1) ASSESSMENTS.—The Secretary shall conduct an annual assessment of the performance of each Job Corps campus on the primary indicators of performance described in section 116(b)(2)(A)(ii), where each indicator shall be given equal weight in determining the overall performance of the campus. Based on the assessment, the Secretary shall take measures to continuously improve the performance of the Job Corps program.

“(2) PERFORMANCE IMPROVEMENT.—

“(A) INITIAL FAILURE.—With respect to a Job Corps campus that fails to meet an average of 90 percent on the expected levels of performance across all the primary indicators of performance specified in subsection (c)(1) or is ranked among the lowest 10 percent of Job Corps campuses, the Secretary shall, after each program year of such performance failure, develop and implement a performance improvement plan for such campus. Such a plan shall require action to be taken during a 1-year program year period, which shall include providing technical assistance to the campus.

“(B) REPEAT FAILURE.—With respect to a Job Corps campus that, for two consecutive program years, fails to meet an average of 85 percent on the expected levels of performance across all the primary indicators of performance or is ranked among the lowest 10 percent of Job Corps campuses, the Secretary shall take substantial action to improve the performance of such campus, which shall include—

“(i) changing the management staff of the campus;

“(ii) changing the career and technical education and training offered at the campus;

“(iii) replacing the operator of the campus; or

“(iv) reducing the capacity of the campus.

“(C) CHRONIC FAILURE.—With respect to a Job Corps campus that, for the two consecutive program years immediately following the Secretary taking substantial performance action under subparagraph (B), fails to meet an average of 85 percent on the expected levels of performance across all the primary indicators or is ranked among the lowest 10 percent of Job Corps campuses, the Secretary shall take further substantial action to improve the performance of such campus, which shall include—

“(i) relocating the campus;

“(ii) closing the campus; or

“(iii) awarding funding directly to the State in which the campus is located for operation of the campus, and for which the Secretary shall enter into a memorandum of understanding with such State for purposes of operating the campus in its current location and may encourage innovation in such memorandum of understanding by waiving any statutory or regulatory requirement of this subtitle except for those related to participant eligibility under section 144, standards of conduct under section 152, and performance reporting and accountability under this section.

“(3) ADDITIONAL PERFORMANCE IMPROVEMENT.—In addition to the performance improvement plans required under paragraph (2), the Secretary may develop and implement additional performance improvement plans for a Job Corps campus that fails to meet criteria established by the Secretary other than the expected levels of performance described in subsection (c)(1).

“(4) CIVILIAN CONSERVATION CENTERS.—With respect to a Civilian Conservation Center that, for 3 consecutive program years, fails to meet an average of 90 percent of the expected levels of performance across all the primary indicators of performance specified in subsection (c)(1), the Secretary of Labor or, if appropriate, the Secretary of Agriculture shall select, on a competitive basis, an entity to operate part or all of the Civilian Conservation Center in accordance with the requirements of section 147.”.

(c) Conforming amendments.—Section 159 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3209) is further amended—

(1) by striking “centers” each place it appears and inserting “campuses”; and

(2) in subsection (g)(1), in the header, by striking “Center” and inserting “Campus”.

Section 161 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3211) is amended—

(1) by redesignating subsection (d) as subsection (e); and

(2) by inserting after subsection (c) the following new subsection:

“(d) Report on implementation of recommendations.—The Secretary shall, on an annual basis, prepare and submit to the appropriate committees a report regarding the implementation of all outstanding recommendations from the Office of Inspector General of the Department of Labor or the Government Accountability Office.”.

Section 162 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3212) is amended to read as follows:

Section 166 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3221) is amended—

(1) in subsection (d)(1)—

(A) in subparagraph (A), by striking “and”;

(B) in subparagraph (B), by striking the period at the end and inserting “; and”; and

(C) by inserting at the end the following:

“(C) are evidence-based, to the extent practicable.”;

(2) in subsection (d)(2)—

(A) by redesignating subparagraph (B) as subparagraph (C); and

(B) by inserting after subparagraph (A) the following:

“(B) ADMINISTRATIVE COSTS.—Not more than 10 percent of the funds provided to an entity under this section may be used for the administrative costs of the activities and services carried out under subparagraph (A).”;

(3) in subsection (h), by inserting after paragraph (2) the following:

“(3) WAGE RECORDS.—The Secretary shall make arrangements with a State or other appropriate entity to facilitate the use of State wage records to evaluate the performance of entities funded under this section on the employment and earnings indicators described in subclauses (I) through (III) of section 116(b)(2)(A)(i) for the purposes of the report required under paragraph (4).

“(4) PERFORMANCE RESULTS.—For each program year, the Secretary shall make available on a publicly accessible website of the Department a report on the performance, during such program year, of entities funded under this section on—

“(A) the primary indicators of performance described in section 116(b)(2)(A);

“(B) any additional indicators established under paragraph (1)(A); and

“(C) the adjusted levels of performance for such entities as described in paragraph (2).”;

(4) in subsection (i)—

(A) in paragraph (3)(A), by striking “and judicial review.” and inserting “judicial review, and performance accountability pertaining to the primary indicators of performance described in section 116(b)(2)(A).”; and

(B) in paragraph (4)(B)—

(i) by striking “The Council” and inserting the following:

“(i) IN GENERAL.—The Council”; and

(ii) by inserting at the end the following:

“(ii) VACANCIES.—An individual appointed to fill a vacancy on the Council occurring before the expiration of the term for which the predecessor of such individual was appointed shall be appointed only for the remainder of that term. Such an individual may serve on the Council after the expiration of such term until a successor is appointed.”; and

(5) by amending subsection (k)(2) to read as follows:

“(2) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this subsection $542,000 for each of the fiscal years 2025 through 2030.”.

Section 167 of the Workforce Innovation and Opportunity Act (29 U.S.C. 3222) is amended—

(1) in subsection (c), by adding at the end the following:

“(5) WAGE RECORDS.—The Secretary shall make arrangements with a State or other appropriate entity to facilitate the use of State wage records to evaluate the performance of entities funded under this section on the employment and earnings indicators described in subclauses (I) through (III) of section 116(b)(2)(A)(i) for the purposes of the report required under paragraph (4).

“(6) PERFORMANCE RESULTS.—For each program year, the Secretary shall make available on a publicly accessible website of the Department a report on the performance, during such program year, of entities funded under this section on—

“(A) the primary indicators of performance described in section 116(b)(2)(A); and

“(B) the adjusted levels of performance for such entities as described in paragraph (3).”;

(2) by redesignating subsections (e), (f), (g), (h), and (i) as subsections (f), (g), (h), (i), and (j), respectively;

(3) by inserting after subsection (d) the following:

“(e) Administrative costs.—Not more than 10 percent of the funds provided to an entity under this section may be used for the administrative costs of the activities and services carried out under subsection (d).”; and

(4) in subsection (i), as so redesignated, to read as follows:

“(i) Funding allocation; funding obligation.—

“(1) FUNDING ALLOCATION.—From the funds appropriated and made available to carry out this section, the Secretary shall reserve not more than 1 percent for discretionary purposes, such as providing technical assistance to eligible entities.

“(2) FUNDING OBLIGATION.—

“(A) IN GENERAL.—Funds appropriated and made available to carry out this section for any fiscal year may be obligated by the Secretary during the period beginning on April 1 of the calendar year that begins during such fiscal year and ending on June 30 of the following calendar year to be made available to an entity described in subsection (b) for the period described in subparagraph (B).

“(B) OBLIGATED AMOUNT.—Funds made available under this section for a fiscal year to any entity described in subsection (b) may be spent or reserved for spending by such entity during the period beginning on July 1 of the calendar year that begins during such fiscal year, and ending on June 30 of the following calendar year.