STATE EDUCATION COORDINATION AND GRANTS.

SEC. 122. STATE EDUCATION COORDINATION AND GRANTS. Section 123 of the Act (29 U.S.C. 1533) is amended to read as follows: “STATE EDUCATION COORDINATION AND GRANTS “Sec. 123. (a) Allotment.— “(1) In general.— The Secretary shall allot to the Governor for allocation to any State education agency the sums made available to carry out this section under sections 202(c)(1)(C) and 262(c)(1)(C) to pay for the Federal share of carrying out the projects described in paragraph (2). In allocating such funds to the State education agency, the Governor shall not establish requirements governing the geographic distribution of funds under this section. “(2) Projects.— Funds allocated under paragraph (1) may be used to pay for the Federal share of carrying out projects (in accordance with agreements under subsection (b)) that— “(A) provide school-to-work transition services of demonstrated effectiveness that increase the rate of graduation from high school, or completion of the recognized equivalent thereof, including services that increase the rate at which school dropouts return to regular or alternative schooling and obtain a high school degree or its equivalent, and, which may include, services to support multiyear dropout prevention programs of demonstrated effectiveness; “(B) provide literacy and lifelong learning opportunities and services of demonstrated effectiveness that— “(i) enhance the knowledge and skills of educationally and economically disadvantaged individuals; and “(ii) result in increasing the employment and earnings of such individuals; “(C) provide statewide coordinated approaches, including model programs, to train, place, and retain women in non-traditional employment; and “(D) (i) facilitate coordination of education and training services for eligible participants in projects described in subparagraphs (A), (B), and (C); or “(ii) (I) support activities pertaining to a State human resources investment council that meets the requirements of title VII and includes each of the programs described in clauses (i) through (vii) of section 701(b)(2)(A); or “(II) support activities pertaining to a State council, which carries out functions similar to the functions of the State human resource investment council described in title VII, if such State council was established prior to July 1, 1992. “(3) Federal share.— The Federal share of the cost of carrying out the projects described in paragraph (2) shall be 50 percent. “(b) Agreements Required.— 106 STAT. 1039 “(1) Parties to agreements.— The projects described in subsection (a)(2) shall be conducted within a State in accordance with agreements that— “(A) reflect the goals and services described in paragraphs (1), (2), and (3) of subsection (c); and “(B) are developed between the State education agency, administrative entities in service delivery areas in the State, and other entities, such as other State agencies, local educational agencies, and alternative service providers (such as community-based and other nonprofit or for-profit organizations). “(2) Contents of agreements.— “(A) Contribution.— The agreements described in paragraph (1) shall provide for the contribution by the State, from funds other than the funds made available under this Act, of a total amount equal to the funds allotted under this section. “(B) Direct cost of services.— Such amount may include the direct cost of employment or training services— “(i) provided by State or local programs or agencies; or “(ii) provided by other Federal programs or agencies in accordance with applicable Federal law. “(c) Governor’s Plan Requirements.— The State education agency shall submit for inclusion in the Governor’s coordination and special services plan a description developed jointly by the State education agency and the Governor of— “(1) the goals to be achieved and services to be provided by the school-to-work transition programs specified in subsection (a)(2)(A) that will receive the assistance, which description shall, at a minimum, include information regarding— “(A) the activities and services that will result in increasing the number of youth staying in or returning to school and graduating from high school or the equivalent; “(B) the work-based curriculum that will link classroom learning to work site experience and address the practical and theoretical aspects of work; “(C) the opportunities that will be made available to participants to obtain career-path employment and post-secondary education; “(D) the integration to be achieved, in appropriate circumstances, in the delivery of services between State and local educational agencies and alternative service providers, such as community-based and nonprofit organizations; and “(E) the linkages that will be established, where feasible, to avoid duplication and enhance the delivery of services, with programs under— “(i) title II and part B of title IV; “(ii) the Elementary and Secondary Education Act (20 U.S.C. 2701 et seq.); “(iii) the Carl D. Perkins Vocational and Applied Technology Education Act (20 U.S.C. 2301 et seq.); “(iv) the Individuals with Disabilities Education Act (20 U.S.C. 1400 et seq.); “(v) the Adult Education Act (20 U.S.C. 1201 et seq.); “(vi) the JOBS program; 106 STAT. 1040 “(vii) the Stewart B. McKinney Homeless Assistance Act (Public Law 100–77; 101 Stat. 482); and “(viii) the National and Community Service Act of 1990 (42 U.S.C. 12501 et seq.); “(2) the goals to be achieved and services to be provided by literacy and lifelong learning programs specified in subsection (a)(2)(B) that will receive the assistance, which description shall, at a minimum, include information regarding— “(A) the activities and services that will increase the knowledge and skills of educationally and economically disadvantaged individuals, and result in increased employment and earnings for such individuals; “(B) the integration to be achieved between projects assisted under this section and the 4-year State plan (and related needs assessment carried out for the plan) developed in accordance with section 342 of the Adult Education Act (20 U.S.C. 1206a); “(C) the variety of settings, including workplace settings, in which literacy training and learning opportunities will be provided; and “(D) the linkages that will be established, where feasible, to avoid duplication and enhance the delivery of services, with programs under— “(i) titles II and III; “(ii) the Adult Education Act; “(iii) the Carl D. Perkins Vocational and Applied Technology Education Act; “(iv) the Stewart B. McKinney Homeless Assistance Act; “(v) the JOBS program; “(vi) the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.); “(vii) the National Literacy Act of 1991 (Public Law 102–73); “(viii) the Emergency Immigrant Education Act of 1984 (20 U.S.C. 3121 et seq.); and “(ix) the National and Community Service Act of 1990; “(3) the goals to be achieved and services to be provided by the nontraditional employment for women programs specified in subsection (a)(2)(C) that will receive the assistance; and “(4) the proportion of funds received under this section that will be used to achieve the goals, and provide the services, described in paragraphs (1), (2), and (3). “(d) Service Requirements.— “(1) Permitted services.— Services funded under this section to carry out the projects described in subsection (a)(2) may include education and training, vocational education services, and related services, provided to participants under title II. In addition, services funded under this section may include services for offenders, veterans, and other individuals who the Governor determines require special assistance. “(2) Limitations on expenditures.— “(A) Coordination of services.— Not more than 20 percent of the funds allocated under this section may be106 STAT. 1041 expended to pay for the Federal share of projects described in subsection (a)(2)(D) at the State and local levels. “(B) services.—Not less than 80 percent of the funds allocated under this section shall be expended to pay for the Federal share of projects conducted in accordance with subparagraphs (A), (B), and (C) of subsection (a)(2). “(C) Economically disadvantaged individuals.— Not less than 75 percent of the funds allocated for projects under subparagraphs (A), (B), and (C) of subsection (a)(2) shall be expended for projects for economically disadvantaged individuals who experience barriers to employment. Priority for funds not expended for the economically disadvantaged shall be given to title III participants and persons with barriers to employment. “(e) Distribution of Funds in Absence of Agreement.— If no agreement is reached in accordance with subsection (b) on the use of funds under this section, the funds shall be available to the Governor to achieve the goals and provide the services described in paragraph (1), (2), or (3) of subsection (c). “(f) Reports and Records.— “(1) Reports by governors.— The Governor shall prepare reports on the projects funded under this section, including such information as the Secretary may require to determine the extent to which the projects supported under this section result in achieving the goals specified in paragraphs (1), (2), and (3) of subsection (c). The Governor shall submit the reports to the Secretary at such intervals as shall be determined by the Secretary. “(2) Records and reports of recipients.— Each direct or indirect recipient of funds under this section shall keep records that are sufficient to permit the preparation of reports. Each recipient shall submit such reports to the Secretary, at such intervals as shall be determined by the Secretary.”.