WORKFORCE INVESTMENT ACT OF 1998
Public Law 105-220--Aug. 7, 1998 112 Stat. 936
Public Law 105-220
105th Congress
An Act
To consolidate, coordinate, and improve employment, training, literacy,
and vocational rehabilitation programs in the United States, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Workforce
Investment Act of 1998''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--WORKFORCE INVESTMENT SYSTEMS
Subtitle A--Workforce Investment Definitions
Sec. 101. Definitions.
Subtitle B--Statewide and Local Workforce Investment Systems
Sec. 106. Purpose.
Chapter 1--State Provisions
Sec. 111. State workforce investment boards.
Sec. 112. State plan.
Chapter 2--Local Provisions
Sec. 116. Local workforce investment areas.
Sec. 117. Local workforce investment boards.
Sec. 118. Local plan.
Chapter 3--Workforce Investment Activities Providers
Sec. 121. Establishment of one-stop delivery systems.
Sec. 122. Identification of eligible providers of training services.
Sec. 123. Identification of eligible providers of youth activities.
Chapter 4--Youth Activities
Sec. 126. General authorization.
Sec. 127. State allotments.
Sec. 128. Within State allocations.
Sec. 129. Use of funds for youth activities.
Chapter 5--Adult and Dislocated Worker Employment and Training Activities
Sec. 131. General authorization.
Sec. 132. State allotments.
Sec. 133. Within State allocations.
Sec. 134. Use of funds for employment and training activities.
Chapter 6--General Provisions
Sec. 136. Performance accountability system.
Sec. 137. Authorization of appropriations.
Subtitle C--Job Corps
Sec. 141. Purposes.
Sec. 142. Definitions.
Sec. 143. Establishment.
Sec. 144. Individuals eligible for the Job Corps.
Sec. 145. Recruitment, screening, selection, and assignment of
enrollees.
Sec. 146. Enrollment.
Sec. 147. Job Corps centers.
Sec. 148. Program activities.
Sec. 149. Counseling and job placement.
Sec. 150. Support.
Sec. 151. Operating plan.
Sec. 152. Standards of conduct.
Sec. 153. Community participation.
Sec. 154. Industry councils.
Sec. 155. Advisory committees.
Sec. 156. Experimental, research, and demonstration projects.
Sec. 157. Application of provisions of Federal law.
Sec. 158. Special provisions.
Sec. 159. Management information.
Sec. 160. General provisions.
Sec. 161. Authorization of appropriations.
Subtitle D--National Programs
Sec. 166. Native American programs.
Sec. 167. Migrant and seasonal farmworker programs.
Sec. 168. Veterans' workforce investment programs.
Sec. 169. Youth opportunity grants.
Sec. 170. Technical assistance.
Sec. 171. Demonstration, pilot, multiservice, research, and multistate
projects.
Sec. 172. Evaluations.
Sec. 173. National emergency grants.
Sec. 174. Authorization of appropriations.
Subtitle E--Administration
Sec. 181. Requirements and restrictions.
Sec. 182. Prompt allocation of funds.
Sec. 183. Monitoring.
Sec. 184. Fiscal controls; sanctions.
Sec. 185. Reports; recordkeeping; investigations.
Sec. 186. Administrative adjudication.
Sec. 187. Judicial review.
Sec. 188. Nondiscrimination.
Sec. 189. Administrative provisions.
Sec. 190. Reference.
Sec. 191. State legislative authority.
Sec. 192. Workforce flexibility plans.
Sec. 193. Use of certain real property.
Sec. 194. Continuation of State activities and policies.
Sec. 195. General program requirements.
Subtitle F--Repeals and Conforming Amendments
Sec. 199. Repeals.
Sec. 199A. Conforming amendments.
TITLE II--ADULT EDUCATION AND LITERACY
Sec. 201. Short title.
Sec. 202. Purpose.
Sec. 203. Definitions.
Sec. 204. Home schools.
Sec. 205. Authorization of appropriations.
Subtitle A--Adult Education and Literacy Programs
Chapter 1--Federal Provisions
Sec. 211. Reservation; grants to eligible agencies; allotments.
Sec. 212. Performance accountability system.
Chapter 2--State Provisions
Sec. 221. State administration.
Sec. 222. State distribution of funds; matching requirement.
Sec. 223. State leadership activities.
Sec. 224. State plan.
Sec. 225. Programs for corrections education and other institutionalized
individuals.
Chapter 3--Local Provisions
Sec. 231. Grants and contracts for eligible providers.
Sec. 232. Local application.
Sec. 233. Local administrative cost limits.
Chapter 4--General Provisions
Sec. 241. Administrative provisions.
Sec. 242. National Institute for Literacy.
Sec. 243. National leadership activities.
Subtitle B--Repeals
Sec. 251. Repeals.
TITLE III--WORKFORCE INVESTMENT-RELATED ACTIVITIES
Subtitle A--Wagner-Peyser Act
Sec. 301. Definitions.
Sec. 302. Functions.
Sec. 303. Designation of State agencies.
Sec. 304. Appropriations.
Sec. 305. Disposition of allotted funds.
Sec. 306. State plans.
Sec. 307. Repeal of Federal advisory council.
Sec. 308. Regulations.
Sec. 309. Employment statistics.
Sec. 310. Technical amendments.
Sec. 311. Effective date.
Subtitle B--Linkages With Other Programs
Sec. 321. Trade Act of 1974.
Sec. 322. Veterans' employment programs.
Sec. 323. Older Americans Act of 1965.
Subtitle C--Twenty-First Century Workforce Commission
Sec. 331. Short title.
Sec. 332. Findings.
Sec. 333. Definitions.
Sec. 334. Establishment of Twenty-First Century Workforce Commission.
Sec. 335. Duties of the Commission.
Sec. 336. Powers of the Commission.
Sec. 337. Commission personnel matters.
Sec. 338. Termination of the Commission.
Sec. 339. Authorization of appropriations.
Subtitle D--Application of Civil Rights and Labor-Management Laws to the
Smithsonian Institution
Sec. 341. Application of civil rights and labor-management laws to the
Smithsonian Institution.
TITLE IV--REHABILITATION ACT AMENDMENTS OF 1998
Sec. 401. Short title.
Sec. 402. Title.
Sec. 403. General provisions.
Sec. 404. Vocational rehabilitation services.
Sec. 405. Research and training.
Sec. 406. Professional development and special projects and
demonstrations.
Sec. 407. National Council on Disability.
Sec. 408. Rights and advocacy.
Sec. 409. Employment opportunities for individuals with disabilities.
Sec. 410. Independent living services and centers for independent living.
Sec. 411. Repeal.
Sec. 412. Helen Keller National Center Act.
Sec. 413. President's Committee on Employment of People With Disabilities.
Sec. 414. Conforming amendments.
TITLE V--GENERAL PROVISIONS
Sec. 501. State unified plan.
Sec. 502. Definitions for indicators of performance.
Sec. 503. Incentive grants.
Sec. 504. Privacy.
Sec. 505. Buy-American requirements.
Sec. 506. Transition provisions.
Sec. 507. Effective date.
TITLE I--WORKFORCE INVESTMENT SYSTEMS
Subtitle A--Workforce Investment Definitions
SEC. 101. DEFINITIONS.
In this title:
(1) Adult.--Except in sections 127 and 132, the term ``adult''
means an individual who is age 18 or older.
(2) Adult education; adult education and literacy activities.--
The terms ``adult education'' and ``adult education and literacy
activities'' have the meanings given the terms in section 203.
(3) Area vocational education school.--The term ``area
vocational education school'' has the meaning given the term in
section 521 of the Carl D. Perkins Vocational and Applied
Technology Education Act (20 U.S.C. 2471).
(4) Basic skills deficient.--The term ``basic skills
deficient'' means, with respect to an individual, that the
individual has English reading, writing, or computing skills at or
below the 8th grade level on a generally accepted standardized test
or a comparable score on a criterion-referenced test.
(5) Case management.--The term ``case management'' means the
provision of a client-centered approach in the delivery of
services, designed--
(A) to prepare and coordinate comprehensive employment
plans, such as service strategies, for participants to ensure
access to necessary workforce investment activities and
supportive services, using, where feasible, computer-based
technologies; and
(B) to provide job and career counseling during program
participation and after job placement.
(6) Chief elected official.--The term ``chief elected
official'' means--
(A) the chief elected executive officer of a unit of
general local government in a local area; and
(B) in a case in which a local area includes more than one
unit of general local government, the individuals designated
under the agreement described in section 117(c)(1)(B).
(7) Community-based organization.--The term ``community-based
organization'' means a private nonprofit organization that is
representative of a community or a significant segment of a
community and that has demonstrated expertise and effectiveness in
the field of workforce investment.
(8) Customized training.--The term ``customized training''
means training--
(A) that is designed to meet the special requirements of an
employer (including a group of employers);
(B) that is conducted with a commitment by the employer to
employ an individual on successful completion of the training;
and
(C) for which the employer pays for not less than 50
percent of the cost of the training.
(9) Dislocated worker.--The term ``dislocated worker'' means an
individual who--
(A)(i) has been terminated or laid off, or who has received
a notice of termination or layoff, from employment;
(ii)(I) is eligible for or has exhausted entitlement to
unemployment compensation; or
(II) has been employed for a duration sufficient to
demonstrate, to the appropriate entity at a one-stop center
referred to in section 134(c), attachment to the workforce, but
is not eligible for unemployment compensation due to
insufficient earnings or having performed services for an
employer that were not covered under a State unemployment
compensation law; and
(iii) is unlikely to return to a previous industry or
occupation;
(B)(i) has been terminated or laid off, or has received a
notice of termination or layoff, from employment as a result of
any permanent closure of, or any substantial layoff at, a
plant, facility, or enterprise;
(ii) is employed at a facility at which the employer has
made a general announcement that such facility will close
within 180 days; or
(iii) for purposes of eligibility to receive services other
than training services described in section 134(d)(4),
intensive services described in section 134(d)(3), or
supportive services, is employed at a facility at which the
employer has made a general announcement that such facility
will close;
(C) was self-employed (including employment as a farmer, a
rancher, or a fisherman) but is unemployed as a result of
general economic conditions in the community in which the
individual resides or because of natural disasters; or
(D) is a displaced homemaker.
(10) Displaced homemaker.--The term ``displaced homemaker''
means an individual who has been providing unpaid services to
family members in the home and who--
(A) has been dependent on the income of another family
member but is no longer supported by that income; and
(B) is unemployed or underemployed and is experiencing
difficulty in obtaining or upgrading employment.
(11) Economic development agencies.--The term ``economic
development agencies'' includes local planning and zoning
commissions or boards, community development agencies, and other
local agencies and institutions responsible for regulating,
promoting, or assisting in local economic development.
(12) Eligible provider.--The term ``eligible provider'', used
with respect to--
(A) training services, means a provider who is identified
in accordance with section 122(e)(3);
(B) intensive services, means a provider who is identified
or awarded a contract as described in section 134(d)(3)(B);
(C) youth activities, means a provider who is awarded a
grant or contract in accordance with section 123; or
(D) other workforce investment activities, means a public
or private entity selected to be responsible for such
activities, such as a one-stop operator designated or certified
under section 121(d).
(13) Eligible youth.--Except as provided in subtitles C and D,
the term ``eligible youth'' means an individual who--
(A) is not less than age 14 and not more than age 21;
(B) is a low-income individual; and
(C) is an individual who is one or more of the following:
(i) Deficient in basic literacy skills.
(ii) A school dropout.
(iii) Homeless, a runaway, or a foster child.
(iv) Pregnant or a parent.
(v) An offender.
(vi) An individual who requires additional assistance
to complete an educational program, or to secure and hold
employment.
(14) Employment and training activity.--The term ``employment
and training activity'' means an activity described in section 134
that is carried out for an adult or dislocated worker.
(15) Family.--The term ``family'' means two or more persons
related by blood, marriage, or decree of court, who are living in a
single residence, and are included in one or more of the following
categories:
(A) A husband, wife, and dependent children.
(B) A parent or guardian and dependent children.
(C) A husband and wife.
(16) Governor.--The term ``Governor'' means the chief executive
of a State.
(17) Individual with a disability.--
(A) In general.--The term ``individual with a disability''
means an individual with any disability (as defined in section
3 of the Americans with Disabilities Act of 1990 (42 U.S.C.
12102)).
(B) Individuals with disabilities.--The term ``individuals
with disabilities'' means more than one individual with a
disability.
(18) Labor market area.--The term ``labor market area'' means
an economically integrated geographic area within which individuals
can reside and find employment within a reasonable distance or can
readily change employment without changing their place of
residence. Such an area shall be identified in accordance with
criteria used by the Bureau of Labor Statistics of the Department
of Labor in defining such areas or similar criteria established by
a Governor.
(19) Literacy.--The term ``literacy'' has the meaning given the
term in section 203.
(20) Local area.--The term ``local area'' means a local
workforce investment area designated under section 116.
(21) Local board.--The term ``local board'' means a local
workforce investment board established under section 117.
(22) Local performance measure.--The term ``local performance
measure'' means a performance measure established under section
136(c).
(23) Local educational agency.--The term ``local educational
agency'' has the meaning given the term in section 14101 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801).
(24) Lower living standard income level.--The term ``lower
living standard income level'' means that income level (adjusted
for regional, metropolitan, urban, and rural differences and family
size) determined annually by the Secretary based on the most recent
lower living family budget issued by the Secretary.
(25) Low-income individual.--The term ``low-income individual''
means an individual who--
(A) receives, or is a member of a family that receives,
cash payments under a Federal, State, or local income-based
public assistance program;
(B) received an income, or is a member of a family that
received a total family income, for the 6-month period prior to
application for the program involved (exclusive of unemployment
compensation, child support payments, payments described in
subparagraph (A), and old-age and survivors insurance benefits
received under section 202 of the Social Security Act (42
U.S.C. 402)) that, in relation to family size, does not exceed
the higher of--
(i) the poverty line, for an equivalent period; or
(ii) 70 percent of the lower living standard income
level, for an equivalent period;
(C) is a member of a household that receives (or has been
determined within the 6-month period prior to application for
the program involved to be eligible to receive) food stamps
pursuant to the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.);
(D) qualifies as a homeless individual, as defined in
subsections (a) and (c) of section 103 of the Stewart B. McKinney
Homeless Assistance Act (42 U.S.C. 11302);
(E) is a foster child on behalf of whom State or local
government payments are made; or
(F) in cases permitted by regulations promulgated by the
Secretary of Labor, is an individual with a disability whose
own income meets the requirements of a program described in
subparagraph (A) or of subparagraph (B), but who is a member of
a family whose income does not meet such requirements.
(26) Nontraditional employment.--The term ``nontraditional
employment'' refers to occupations or fields of work for which
individuals from one gender comprise less than 25 percent of the
individuals employed in each such occupation or field of work.
(27) Offender.--The term ``offender'' means any adult or
juvenile--
(A) who is or has been subject to any stage of the criminal
justice process, for whom services under this Act may be
beneficial; or
(B) who requires assistance in overcoming artificial
barriers to employment resulting from a record of arrest or
conviction.
(28) Older individual.--The term ``older individual'' means an
individual age 55 or older.
(29) One-stop operator.--The term ``one-stop operator'' means 1
or more entities designated or certified under section 121(d).
(30) One-stop partner.--The term ``one-stop partner'' means--
(A) an entity described in section 121(b)(1); and
(B) an entity described in section 121(b)(2) that is
participating, with the approval of the local board and chief
elected official, in the operation of a one-stop delivery
system.
(31) On-the-job training.--The term ``on-the-job training''
means training by an employer that is provided to a paid
participant while engaged in productive work in a job that--
(A) provides knowledge or skills essential to the full and
adequate performance of the job;
(B) provides reimbursement to the employer of up to 50
percent of the wage rate of the participant, for the
extraordinary costs of providing the training and additional
supervision related to the training; and
(C) is limited in duration as appropriate to the occupation
for which the participant is being trained, taking into account
the content of the training, the prior work experience of the
participant, and the service strategy of the participant, as
appropriate.
(32) Outlying area.--The term ``outlying area'' means the
United States Virgin Islands, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, the Republic of the
Marshall Islands, the Federated States of Micronesia, and the
Republic of Palau.
(33) Out-of-school youth.--The term ``out-of-school youth''
means--
(A) an eligible youth who is a school dropout; or
(B) an eligible youth who has received a secondary school
diploma or its equivalent but is basic skills deficient,
unemployed, or underemployed.
(34) Participant.--The term ``participant'' means an individual
who has been determined to be eligible to participate in and who is
receiving services (except followup services authorized under this
title) under a program authorized by this title. Participation
shall be deemed to commence on the first day, following
determination of eligibility, on which the individual began
receiving subsidized employment, training, or other services
provided under this title.
(35) Postsecondary educational institution.--The term
``postsecondary educational institution'' means an institution of
higher education, as defined in section 481 of the Higher Education
Act of 1965 (20 U.S.C. 1088).
(36) Poverty line.--The term ``poverty line'' means the poverty
line (as defined by the Office of Management and Budget, and
revised annually in accordance with section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2))) applicable to a
family of the size involved.
(37) Public assistance.--The term ``public assistance'' means
Federal, State, or local government cash payments for which
eligibility is determined by a needs or income test.
(38) Rapid response activity.--The term ``rapid response
activity'' means an activity provided by a State, or by an entity
designated by a State, with funds provided by the State under
section 134(a)(1)(A), in the case of a permanent closure or mass
layoff at a plant, facility, or enterprise, or a natural or other
disaster, that results in mass job dislocation, in order to assist
dislocated workers in obtaining reemployment as soon as possible,
with services including--
(A) the establishment of onsite contact with employers and
employee representatives--
(i) immediately after the State is notified of a
current or projected permanent closure or mass layoff; or
(ii) in the case of a disaster, immediately after the
State is made aware of mass job dislocation as a result of
such disaster;
(B) the provision of information and access to available
employment and training activities;
(C) assistance in establishing a labor-management
committee, voluntarily agreed to by labor and management, with
the ability to devise and implement a strategy for assessing
the employment and training needs of dislocated workers and
obtaining services to meet such needs;
(D) the provision of emergency assistance adapted to the
particular closure, layoff, or disaster; and
(E) the provision of assistance to the local community in
developing a coordinated response and in obtaining access to
State economic development assistance.
(39) School dropout.--The term ``school dropout'' means an
individual who is no longer attending any school and who has not
received a secondary school diploma or its recognized equivalent.
(40) Secondary school.--The term ``secondary school'' has the
meaning given the term in section 14101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 8801).
(41) Secretary.--The term ``Secretary'' means the Secretary of
Labor, and the term means such Secretary for purposes of section
503.
(42) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, and the
Commonwealth of Puerto Rico.
(43) State adjusted level of performance.--The term ``State
adjusted level of performance'' means a level described in clause
(iii) or (v) of section 136(b)(3)(A).
(44) State board.--The term ``State board'' means a State
workforce investment board established under section 111.
(45) State performance measure.--The term ``State performance
measure'' means a performance measure established under section
136(b).
(46) Supportive services.--The term ``supportive services''
means services such as transportation, child care, dependent care,
housing, and needs-related payments, that are necessary to enable
an individual to participate in activities authorized under this
title, consistent with the provisions of this title.
(47) Unemployed individual.--The term ``unemployed individual''
means an individual who is without a job and who wants and is
available for work. The determination of whether an individual is
without a job shall be made in accordance with the criteria used by
the Bureau of Labor Statistics of the Department of Labor in
defining individuals as unemployed.
(48) Unit of general local government.--The term ``unit of
general local government'' means any general purpose political
subdivision of a State that has the power to levy taxes and spend
funds, as well as general corporate and police powers.
(49) Veteran; related definition.--
(A) Veteran.--The term ``veteran'' means an individual who
served in the active military, naval, or air service, and who
was discharged or released from such service under conditions
other than dishonorable.
(B) Recently separated veteran.--The term ``recently
separated veteran'' means any veteran who applies for
participation under this title within 48 months after the
discharge or release from active military, naval, or air
service.
(50) Vocational education.--The term ``vocational education''
has the meaning given the term in section 521 of the Carl D.
Perkins Vocational and Applied Technology Education Act (20 U.S.C.
2471).
(51) Workforce investment activity.--The term ``workforce
investment activity'' means an employment and training activity,
and a youth activity.
(52) Youth activity.--The term ``youth activity'' means an
activity described in section 129 that is carried out for eligible
youth (or as described in section 129(c)(5)).
(53) Youth council.--The term ``youth council'' means a council
established under section 117(h).
Subtitle B--Statewide and Local Workforce Investment Systems
SEC. 106. PURPOSE.
The purpose of this subtitle is to provide workforce investment
activities, through statewide and local workforce investment systems,
that increase the employment, retention, and earnings of participants,
and increase occupational skill attainment by participants, and, as a
result, improve the quality of the workforce, reduce welfare
dependency, and enhance the productivity and competitiveness of the
Nation.
CHAPTER 1--STATE PROVISIONS
SEC. 111. STATE WORKFORCE INVESTMENT BOARDS.
(a) In General.--The Governor of a State shall establish a State
workforce investment board to assist in the development of the State
plan described in section 112 and to carry out the other functions
described in subsection (d).
(b) Membership.--
(1) In general.--The State Board shall include--
(A) the Governor;
(B) 2 members of each chamber of the State legislature,
appointed by the appropriate presiding officers of each such
chamber; and
(C) representatives appointed by the Governor, who are--
(i) representatives of business in the State, who--
(I) are owners of businesses, chief executives or
operating officers of businesses, and other business
executives or employers with optimum policymaking or
hiring authority, including members of local boards
described in section 117(b)(2)(A)(i);
(II) represent businesses with employment
opportunities that reflect the employment opportunities
of the State; and
(III) are appointed from among individuals
nominated by State business organizations and business
trade associations;
(ii) chief elected officials (representing both cities
and counties, where appropriate);
(iii) representatives of labor organizations, who have
been nominated by State labor federations;
(iv) representatives of individuals and organizations
that have experience with respect to youth activities;
(v) representatives of individuals and organizations
that have experience and expertise in the delivery of
workforce investment activities, including chief executive
officers of community colleges and community-based
organizations within the State;
(vi)(I) the lead State agency officials with
responsibility for the programs and activities that are
described in section 121(b) and carried out by one-stop
partners; and
(II) in any case in which no lead State agency official
has responsibility for such a program, service, or
activity, a representative in the State with expertise
relating to such program, service, or activity; and
(vii) such other representatives and State agency
officials as the Governor may designate, such as the State
agency officials responsible for economic development and
juvenile justice programs in the State.
(2) Authority and regional representation of board members.--
Members of the board that represent organizations, agencies, or
other entities shall be individuals with optimum policymaking
authority within the organizations, agencies, or entities. The
members of the board shall represent diverse regions of the State,
including urban, rural, and suburban areas.
(3) Majority.--A majority of the members of the State Board
shall be representatives described in paragraph (1)(C)(i).
(c) Chairman.--The Governor shall select a chairperson for the
State Board from among the representatives described in subsection
(b)(1)(C)(i).
(d) Functions.--The State Board shall assist the Governor in--
(1) development of the State plan;
(2) development and continuous improvement of a statewide
system of activities that are funded under this subtitle or carried
out through a one-stop delivery system described in section 134(c)
that receives funds under this subtitle (referred to in this title
as a ``statewide workforce investment system''), including--
(A) development of linkages in order to assure coordination
and nonduplication among the programs and activities described
in section 121(b); and
(B) review of local plans;
(3) commenting at least once annually on the measures taken
pursuant to section 113(b)(14) of the Carl D. Perkins Vocational
and Applied Technology Education Act (20 U.S.C 2323(b)(14));
(4) designation of local areas as required in section 116;
(5) development of allocation formulas for the distribution of
funds for adult employment and training activities and youth
activities to local areas as permitted under sections 128(b)(3)(B)
and 133(b)(3)(B);
(6) development and continuous improvement of comprehensive
State performance measures, including State adjusted levels of
performance, to assess the effectiveness of the workforce
investment activities in the State as required under section
136(b);
(7) preparation of the annual report to the Secretary described
in section 136(d);
(8) development of the statewide employment statistics system
described in section 15(e) of the Wagner-Peyser Act; and
(9) development of an application for an incentive grant under
section 503.
(e) Alternative Entity.--
(1) In general.--For purposes of complying with subsections
(a), (b), and (c), a State may use any State entity (including a
State council, State workforce development board, combination of
regional workforce development boards, or similar entity) that--
(A) was in existence on December 31, 1997;
(B)(i) was established pursuant to section 122 or title VII
of the Job Training Partnership Act, as in effect on December
31, 1997; or
(ii) is substantially similar to the State board described
in subsections (a), (b), and (c); and
(C) includes representatives of business in the State and
representatives of labor organizations in the State.
(2) References.--References in this Act to a State board shall
be considered to include such an entity.
(f) Conflict of Interest.--A member of a State board may not--
(1) vote on a matter under consideration by the State board--
(A) regarding the provision of services by such member (or
by an entity that such member represents); or
(B) that would provide direct financial benefit to such
member or the immediate family of such member; or
(2) engage in any other activity determined by the Governor to
constitute a conflict of interest as specified in the State plan.
(g) Sunshine Provision.--The State board shall make available to
the public, on a regular basis through open meetings, information
regarding the activities of the State board, including information
regarding the State plan prior to submission of the plan, information
regarding membership, and, on request, minutes of formal meetings of
the State board.
SEC. 112. STATE PLAN.
(a) In General.--For a State to be eligible to receive an allotment
under section 127 or 132, or to receive financial assistance under the
Wagner-Peyser Act (29 U.S.C. 49 et seq.), the Governor of the State
shall submit to the Secretary for consideration by the Secretary, a
single State plan (referred to in this title as the ``State plan'')
that outlines a 5-year strategy for the statewide workforce investment
system of the State and that meets the requirements of section 111 and
this section.
(b) Contents.--The State plan shall include--
(1) a description of the State board, including a description
of the manner in which such board collaborated in the development
of the State plan and a description of how the board will continue
to collaborate in carrying out the functions described in section
111(d);
(2) a description of State-imposed requirements for the
statewide workforce investment system;
(3) a description of the State performance accountability
system developed for the workforce investment activities to be
carried out through the statewide workforce investment system, that
includes information identifying State performance measures as
described in section 136(b)(3)(A)(ii);
(4) information describing--
(A) the needs of the State with regard to current and
projected employment opportunities, by occupation;
(B) the job skills necessary to obtain such employment
opportunities;
(C) the skills and economic development needs of the State;
and
(D) the type and availability of workforce investment
activities in the State;
(5) an identification of local areas designated in the State,
including a description of the process used for the designation of
such areas;
(6) an identification of criteria to be used by chief elected
officials for the appointment of members of local boards based on
the requirements of section 117;
(7) the detailed plans required under section 8 of the Wagner-Peyser
Act (29 U.S.C. 49g);
(8)(A) a description of the procedures that will be taken by
the State to assure coordination of and avoid duplication among--
(i) workforce investment activities authorized under this
title;
(ii) other activities authorized under this title;
(iii) programs authorized under the Wagner-Peyser Act
(29 U.S.C. 49 et seq.), title II of this Act, title I of the
Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.), part A of
title IV of the Social Security Act (42 U.S.C. 601 et seq.),
and section 6(d)(4) of the Food Stamp Act of 1977 (7 U.S.C.
2015(d)(4)), activities authorized under title V of the
Older Americans Act of 1965 (42 U.S.C. 3056 et seq.), and
postsecondary vocational education activities authorized under
the Carl D. Perkins Vocational and Applied Technology Education
Act (20 U.S.C. 2301 et seq.);
(iv) work programs authorized under section 6(o) of the
Food Stamp Act of 1977 (7 U.S.C. 2015(o));
(v) activities authorized under chapter 2 of title II of
the Trade Act of 1974 (19 U.S.C. 2271 et seq.);
(vi) activities authorized under chapter 41 of title 38,
United States Code;
(vii) employment and training activities carried out under
the Community Services Block Grant Act (42 U.S.C. 9901 et
seq.);
(viii) activities authorized under the National and
Community Service Act of 1990 (42 U.S.C. 12501 et seq.);
(ix) employment and training activities carried out by the
Department of Housing and Urban Development; and
(x) programs authorized under State unemployment
compensation laws (in accordance with applicable Federal law);
and
(B) a description of the common data collection and reporting
processes used for the programs and activities described in
subparagraph (A);
(9) a description of the process used by the State, consistent
with section 111(g), to provide an opportunity for public comment,
including comment by representatives of businesses and
representatives of labor organizations, and input into development
of the plan, prior to submission of the plan;
(10) information identifying how the State will use funds the
State receives under this subtitle to leverage other Federal,
State, local, and private resources, in order to maximize the
effectiveness of such resources, and to expand the participation of
business, employees, and individuals in the statewide workforce
investment system;
(11) assurances that the State will provide, in accordance with
section 184 for fiscal control and fund accounting procedures that
may be necessary to ensure the proper disbursement of, and
accounting for, funds paid to the State through the allotments made
under sections 127 and 132;
(12)(A) a description of the methods and factors the State will
use in distributing funds to local areas for youth activities and
adult employment and training activities under sections
128(b)(3)(B) and 133(b)(3)(B), including--
(i) a description of how the individuals and entities
represented on the State board were involved in determining
such methods and factors of distribution; and
(ii) a description of how the State consulted with chief
elected officials in local areas throughout the State in
determining such distribution;
(B) assurances that the funds will be distributed equitably
throughout the State, and that no local areas will suffer
significant shifts in funding from year to year; and
(C) a description of the formula prescribed by the Governor
pursuant to section 133(b)(2)(B) for the allocation of funds to
local areas for dislocated worker employment and training
activities;
(13) information specifying the actions that constitute a
conflict of interest prohibited in the State for purposes of
sections 111(f) and 117(g);
(14) with respect to the one-stop delivery systems described in
section 134(c) (referred to individually in this title as a ``one-
stop delivery system''), a description of the strategy of the State
for assisting local areas in development and implementation of
fully operational one-stop delivery systems in the State;
(15) a description of the appeals process referred to in
section 116(a)(5);
(16) a description of the competitive process to be used by the
State to award grants and contracts in the State for activities
carried out under this title;
(17) with respect to the employment and training activities
authorized in section 134--
(A) a description of--
(i) the employment and training activities that will be
carried out with the funds received by the State through
the allotment made under section 132;
(ii) how the State will provide rapid response
activities to dislocated workers from funds reserved under
section 133(a)(2) for such purposes, including the
designation of an identifiable State rapid response
dislocated worker unit to carry out statewide rapid
response activities;
(iii) the procedures the local boards in the State will
use to identify eligible providers of training services
described in section 134(d)(4) (other than on-the-job
training or customized training), as required under section
122; and
(iv) how the State will serve the employment and
training needs of dislocated workers (including displaced
homemakers), low-income individuals (including recipients
of public assistance), individuals training for
nontraditional employment, and other individuals with
multiple barriers to employment (including older
individuals and individuals with disabilities); and
(B) an assurance that veterans will be afforded the
employment and training activities by the State, to the extent
practicable; and
(18) with respect to youth activities authorized in section 129,
information--
(A) describing the State strategy for providing
comprehensive services to eligible youth, particularly those
eligible youth who are recognized as having significant
barriers to employment;
(B) identifying the criteria to be used by local boards in
awarding grants for youth activities, including criteria that
the Governor and local boards will use to identify effective
and ineffective youth activities and providers of such activities;
(C) describing how the State will coordinate the youth
activities carried out in the State under section 129 with the
services provided by Job Corps centers in the State (where such
centers exist); and
(D) describing how the State will coordinate youth activities
described in subparagraph (C) with activities carried out
through the youth opportunity grants under section 169.
(c) Plan Submission and Approval.--A State plan submitted to the
Secretary under this section by a Governor shall be considered to be
approved by the Secretary at the end of the 90-day period beginning on
the day the Secretary receives the plan, unless the Secretary makes a
written determination, during the 90-day period, that--
(1) the plan is inconsistent with the provisions of this title; and
(2) in the case of the portion of the plan described in section 8(a) of
the Wagner-Peyser Act (29 U.S.C. 49g(a)), the portion does not satisfy
the criteria for approval provided in section 8(d) of such Act.
(d) Modifications to Plan.--A State may submit modifications to a
State plan in accordance with the requirements of this section and
section 111 as necessary during the 5-year period covered by the plan.
CHAPTER 2--LOCAL PROVISIONS
SEC. 116. LOCAL WORKFORCE INVESTMENT AREAS.
(a) Designation of Areas.--
(1) In general.--
(A) Process.--Except as provided in subsection (b), and
consistent with paragraphs (2), (3), and (4), in order for a
State to receive an allotment under section 127 or 132, the
Governor of the State shall designate local workforce
investment areas within the State--
(i) through consultation with the State board; and
(ii) after consultation with chief elected officials
and after consideration of comments received through the
public comment process as described in section 112(b)(9).
(B) Considerations.--In making the designation of local
areas, the Governor shall take into consideration the
following:
(i) Geographic areas served by local educational
agencies and intermediate educational agencies.
(ii) Geographic areas served by postsecondary
educational institutions and area vocational education
schools.
(iii) The extent to which such local areas are
consistent with labor market areas.
(iv) The distance that individuals will need to travel
to receive services provided in such local areas.
(v) The resources of such local areas that are
available to effectively administer the activities carried
out under this subtitle.
(2) Automatic designation.--The Governor shall approve any
request for designation as a local area--
(A) from any unit of general local government with a
population of 500,000 or more;
(B) of the area served by a rural concentrated employment
program grant recipient of demonstrated effectiveness that
served as a service delivery area or substate area under the
Job Training Partnership Act, if the grant recipient has
submitted the request; and
(C) of an area that served as a service delivery area under
section 101(a)(4)(A)(ii) of the Job Training Partnership Act
(as in effect on the day before the date of enactment of this Act)
in a State that has a population of not more than 1,100,000
and a population density greater than 900 persons per
square mile.
(3) Temporary and subsequent designation.--
(A) Criteria.--Notwithstanding paragraph (2)(A), the
Governor shall approve any request, made not later than the
date of submission of the initial State plan under this
subtitle, for temporary designation as a local area from any
unit of general local government (including a combination of
such units) with a population of 200,000 or more that was a
service delivery area under the Job Training Partnership Act on
the day before the date of enactment of this Act if the
Governor determines that the area--
(i) performed successfully, in each of the last 2 years
prior to the request for which data are available, in the
delivery of services to participants under part A of title
II and title III of the Job Training Partnership Act (as in
effect on such day); and
(ii) has sustained the fiscal integrity of the funds
used by the area to carry out activities under such part
and title.
(B) Duration and subsequent designation.--A temporary
designation under this paragraph shall be for a period of not
more than 2 years, after which the designation shall be
extended until the end of the period covered by the State plan
if the Governor determines that, during the temporary
designation period, the area substantially met (as defined by
the State board) the local performance measures for the local
area and sustained the fiscal integrity of the funds used by
the area to carry out activities under this subtitle.
(C) Technical assistance.--The Secretary shall provide the
States with technical assistance in making the determinations
required by this paragraph. The Secretary shall not issue
regulations governing determinations to be made under this
paragraph.
(D) Performed successfully.--In this paragraph, the term
``performed successfully'' means that the area involved met or
exceeded the performance standards for activities administered
in the area that--
(i) are established by the Secretary for each year and
modified by the adjustment methodology of the State (used
to account for differences in economic conditions,
participant characteristics, and combination of services
provided from the combination assumed for purposes of the
established standards of the Secretary); and
(ii)(I) if the area was designated as both a service
delivery area and a substate area under the Job Training
Partnership Act (as in effect on the day before the date of
enactment of this Act)--
(aa) relate to job retention and earnings, with respect
to activities carried out under part A of title II of
such Act (as in effect on such day); or
(bb) relate to entry into employment, with respect
to activities carried out under title III of such Act
(as in effect on such day);
(II) if the area was designated only as a service
delivery area under such Act (as in effect on such day),
relate to the standards described in subclause (I)(aa); or
(III) if the area was only designated as a substate
area under such Act (as in effect on such day), relate to
the standards described in subclause (I)(bb).
(E) Sustained the fiscal integrity.--In this paragraph, the
term ``sustained the fiscal integrity'', used with respect to
funds used by a service delivery area or local area, means that
the Secretary has not made a final determination during any of
the last 3 years for which data are available, prior to the
date of the designation request involved, that either the grant
recipient or the administrative entity of the area misexpended
the funds due to willful disregard of the requirements of the Act
involved, gross negligence, or failure to observe accepted
standards of administration.
(4) Designation on recommendation of state board.--The Governor
may approve a request from any unit of general local government
(including a combination of such units) for designation (including
temporary designation) as a local area if the State board
determines, taking into account the factors described in clauses
(i) through (v) of paragraph (1)(B), and recommends to the
Governor, that such area should be so designated.
(5) Appeals.--A unit of general local government (including a
combination of such units) or grant recipient that requests but is
not granted designation of an area as a local area under paragraph
(2) or (3) may submit an appeal to the State board under an appeal
process established in the State plan. If the appeal does not
result in such a designation, the Secretary, after receiving a
request for review from the unit or grant recipient and on
determining that the unit or grant recipient was not accorded
procedural rights under the appeal process established in the State
plan or that the area meets the requirements of paragraph (2) or
(3), as appropriate, may require that the area be designated as a
local area under such paragraph.
(b) Small States.--The Governor of any State that was a single
State service delivery area under the Job Training Partnership Act as
of July 1, 1998, may designate the State as a single State local area
for the purposes of this title. In the case of such a designation, the
Governor shall identify the State as a local area under section 112(b)(5).
(c) Regional Planning and Cooperation.--
(1) Planning.--As part of the process for developing the State
plan, a State may require regional planning by local boards for a
designated region in the State. The State may require the local
boards for a designated region to participate in a regional planning
process that results in the establishment of regional performance
measures for workforce investment activities authorized under
this subtitle. The State may award regional incentive grants to the
designated regions that meet or exceed the regional performance measures.
(2) Information sharing.--The State may require the local
boards for a designated region to share, in feasible cases,
employment statistics, information about employment opportunities
and trends, and other types of information that would assist in
improving the performance of all local areas in the designated
region on local performance measures.
(3) Coordination of services.--The State may require the local
boards for a designated region to coordinate the provision of
workforce investment activities authorized under this subtitle,
including the provision of transportation and other supportive services,
so that services provided through the activities may be provided
across the boundaries of local areas within the designated region.
(4) Interstate regions.--Two or more States that contain an
interstate region that is a labor market area, economic development
region, or other appropriate contiguous subarea of the States may
designate the area as a designated region for purposes of this
subsection, and jointly exercise the State functions described in
paragraphs (1) through (3).
(5) Definitions.--In this subsection:
(A) Designated region.--The term ``designated region''
means a combination of local areas that are partly or
completely in a single labor market area, economic development
region, or other appropriate contiguous subarea of a State, that is
designated by the State, except as provided in paragraph (4).
(B) Local board for a designated region.--The term ``local
board for a designated region'' means a local board for a local
area in a designated region.
SEC. 117. LOCAL WORKFORCE INVESTMENT BOARDS.
(a) Establishment.--There shall be established in each local area
of a State, and certified by the Governor of the State, a local
workforce investment board, to set policy for the portion of the
statewide workforce investment system within the local area (referred
to in this title as a ``local workforce investment system'').
(b) Membership.--
(1) State criteria.--The Governor of the State, in partnership
with the State board, shall establish criteria for use by chief
elected officials in the local areas for appointment of members of
the local boards in such local areas in accordance with the
requirements of paragraph (2).
(2) Composition.--Such criteria shall require, at a minimum,
that the membership of each local board--
(A) shall include--
(i) representatives of business in the local area,
who--
(I) are owners of businesses, chief executives or
operating officers of businesses, and other business
executives or employers with optimum policymaking or
hiring authority;
(II) represent businesses with employment
opportunities that reflect the employment opportunities
of the local area; and
(III) are appointed from among individuals
nominated by local business organizations and business
trade associations;
(ii) representatives of local educational entities,
including representatives of local educational agencies,
local school boards, entities providing adult education and
literacy activities, and postsecondary educational
institutions (including representatives of community
colleges, where such entities exist), selected from among
individuals nominated by regional or local educational
agencies, institutions, or organizations representing such
local educational entities;
(iii) representatives of labor organizations (for a
local area in which employees are represented by labor
organizations), nominated by local labor federations, or
(for a local area in which no employees are represented by
such organizations), other representatives of employees;
(iv) representatives of community-based organizations
(including organizations representing individuals with
disabilities and veterans, for a local area in which such
organizations are present);
(v) representatives of economic development agencies,
including private sector economic development entities; and
(vi) representatives of each of the one-stop partners;
and
(B) may include such other individuals or representatives
of entities as the chief elected official in the local area may
determine to be appropriate.
(3) Authority of board members.--Members of the board that
represent organizations, agencies, or other entities shall be
individuals with optimum policymaking authority within the
organizations, agencies, or entities.
(4) Majority.--A majority of the members of the local board
shall be representatives described in paragraph (2)(A)(i).
(5) Chairperson.--The local board shall elect a chairperson for
the local board from among the representatives described in
paragraph (2)(A)(i).
(c) Appointment and Certification of Board.--
(1) Appointment of board members and assignment of
responsibilities.--
(A) In general.--The chief elected official in a local area
is authorized to appoint the members of the local board for
such area, in accordance with the State criteria established
under subsection (b).
(B) Multiple units of local government in area.--
(i) In general.--In a case in which a local area
includes more than 1 unit of general local government, the
chief elected officials of such units may execute an
agreement that specifies the respective roles of the
individual chief elected officials--
(I) in the appointment of the members of the local
board from the individuals nominated or recommended to
be such members in accordance with the criteria
established under subsection (b); and
(II) in carrying out any other responsibilities
assigned to such officials under this subtitle.
(ii) Lack of agreement.--If, after a reasonable effort,
the chief elected officials are unable to reach agreement
as provided under clause (i), the Governor may appoint the
members of the local board from individuals so nominated or
recommended.
(C) Concentrated employment programs.--In the case of a
local area designated in accordance with section 116(a)(2)(B),
the governing body of the concentrated employment program
involved shall act in consultation with the chief elected
official in the local area to appoint members of the local
board, in accordance with the State criteria established under
subsection (b), and to carry out any other responsibility
relating to workforce investment activities assigned to such
official under this Act.
(2) Certification.--
(A) In general.--The Governor shall, once every 2 years,
certify 1 local board for each local area in the State.
(B) Criteria.--Such certification shall be based on
criteria established under subsection (b) and, for a second or
subsequent certification, the extent to which the local board
has ensured that workforce investment activities carried out in
the local area have enabled the local area to meet the local
performance measures.
(C) Failure to achieve certification.--Failure of a local
board to achieve certification shall result in reappointment
and certification of another local board for the local area
pursuant to the process described in paragraph (1) and this
paragraph.
(3) Decertification.--
(A) Fraud, abuse, failure to carry out functions.--
Notwithstanding paragraph (2), the Governor may decertify a
local board, at any time after providing notice and an
opportunity for comment, for--
(i) fraud or abuse; or
(ii) failure to carry out the functions specified for
the local board in any of paragraphs (1) through (7) of
subsection (d).
(B) Nonperformance.--Notwithstanding paragraph (2), the
Governor may decertify a local board if a local area fails to
meet the local performance measures for such local area for 2
consecutive program years (in accordance with section 136(h)).
(C) Plan.--If the Governor decertifies a local board for a
local area under subparagraph (A) or (B), the Governor may
require that a new local board be appointed and certified for
the local area pursuant to a reorganization plan developed by
the Governor, in consultation with the chief elected official
in the local area, and in accordance with the criteria
established under subsection (b).
(4) Single state area.--Notwithstanding subsection (b) and
paragraphs (1) and (2), if a State described in section 116(b)
indicates in the State plan that the State will be treated as a
local area for purposes of the application of this title, the
Governor may designate the State board to carry out any of the
functions described in subsection (d).
(d) Functions of Local Board.--The functions of the local board
shall include the following:
(1) Local plan.--Consistent with section 118, each local board,
in partnership with the chief elected official for the local area
involved, shall develop and submit a local plan to the Governor.
(2) Selection of operators and providers.--
(A) Selection of one-stop operators.--Consistent with
section 121(d), the local board, with the agreement of the
chief elected official--
(i) shall designate or certify one-stop operators as
described in section 121(d)(2)(A); and
(ii) may terminate for cause the eligibility of such
operators.
(B) Selection of youth providers.--Consistent with section
123, the local board shall identify eligible providers of youth
activities in the local area by awarding grants or contracts on
a competitive basis, based on the recommendations of the youth
council.
(C) Identification of eligible providers of training
services.--Consistent with section 122, the local board shall
identify eligible providers of training services described in
section 134(d)(4) in the local area.
(D) Identification of eligible providers of intensive
services.--If the one-stop operator does not provide intensive
services in a local area, the local board shall identify
eligible providers of intensive services described in section
134(d)(3) in the local area by awarding contracts.
(3) Budget and administration.--
(A) Budget.--The local board shall develop a budget for the
purpose of carrying out the duties of the local board under
this section, subject to the approval of the chief elected
official.
(B) Administration.--
(i) Grant recipient.--
(I) In general.--The chief elected official in a
local area shall serve as the local grant recipient
for, and shall be liable for any misuse of, the grant
funds allocated to the local area under sections 128
and 133, unless the chief elected official reaches an
agreement with the Governor for the Governor to act as
the local grant recipient and bear such liability.
(II) Designation.--In order to assist in the
administration of the grant funds, the chief elected
official or the Governor, where the Governor serves as
the local grant recipient for a local area, may
designate an entity to serve as a local grant
subrecipient for such funds or as a local fiscal agent.
Such designation shall not relieve the chief elected
official or the Governor of the liability for any
misuse of grant funds as described in subclause (I).
(III) Disbursal.--The local grant recipient or an
entity designated under subclause (II) shall disburse
such funds for workforce investment activities at the
direction of the local board, pursuant to the
requirements of this title, if the direction does not
violate a provision of this Act. The local grant
recipient or entity designated under subclause (II)
shall disburse the funds immediately on receiving such
direction from the local board.
(ii) Staff.--The local board may employ staff.
(iii) Grants and donations.--The local board may
solicit and accept grants and donations from sources other
than Federal funds made available under this Act.
(4) Program oversight.--The local board, in partnership with
the chief elected official, shall conduct oversight with respect to
local programs of youth activities authorized under section 129,
local employment and training activities authorized under section
134, and the one-stop delivery system in the local area.
(5) Negotiation of local performance measures.--The local
board, the chief elected official, and the Governor shall negotiate
and reach agreement on local performance measures as described in
section 136(c).
(6) Employment statistics system.--The local board shall assist
the Governor in developing the statewide employment statistics
system described in section 15(e) of the Wagner-Peyser Act.
(7) Employer linkages.--The local board shall coordinate the
workforce investment activities authorized under this subtitle and
carried out in the local area with economic development strategies
and develop other employer linkages with such activities.
(8) Connecting, brokering, and coaching.--The local board shall
promote the participation of private sector employers in the
statewide workforce investment system and ensure the effective
provision, through the system, of connecting, brokering, and
coaching activities, through intermediaries such as the one-stop
operator in the local area or through other organizations, to
assist such employers in meeting hiring needs.
(e) Sunshine Provision.--The local board shall make available to
the public, on a regular basis through open meetings, information
regarding the activities of the local board, including information
regarding the local plan prior to submission of the plan, and regarding
membership, the designation and certification of one-stop operators,
and the award of grants or contracts to eligible providers of youth
activities, and on request, minutes of formal meetings of the local
board.
(f) Limitations.--
(1) Training services.--
(A) In general.--Except as provided in subparagraph (B), no
local board may provide training services described in section
134(d)(4).
(B) Waivers of training prohibition.--The Governor of the
State in which a local board is located may, pursuant to a
request from the local board, grant a written waiver of the
prohibition set forth in subparagraph (A) (relating to the
provision of training services) for a program of training
services, if the local board--
(i) submits to the Governor a proposed request for the
waiver that includes--
(I) satisfactory evidence that there is an
insufficient number of eligible providers of such a
program of training services to meet local demand in
the local area;
(II) information demonstrating that the board meets
the requirements for an eligible provider of training
services under section 122; and
(III) information demonstrating that the program of
training services prepares participants for an
occupation that is in demand in the local area;
(ii) makes the proposed request available to eligible
providers of training services and other interested members
of the public for a public comment period of not less than
30 days; and
(iii) includes, in the final request for the waiver,
the evidence and information described in clause (i) and
the comments received pursuant to clause (ii).
(C) Duration.--A waiver granted to a local board under
subparagraph (B) shall apply for a period of not to exceed 1
year. The waiver may be renewed for additional periods of not
to exceed 1 year, pursuant to requests from the local board, if
the board meets the requirements of subparagraph (B) in making
the requests.
(D) Revocation.--The Governor may revoke a waiver granted
under this paragraph during the appropriate period described in
subparagraph (C) if the State determines that the local board
involved has engaged in a pattern of inappropriate referrals to
training services operated by the local board.
(2) Core services; intensive services; designation or
certification as one-stop operators.--A local board may provide
core services described in section 134(d)(2) or intensive services
described in section 134(d)(3) through a one-stop delivery system
described in section 134(c) or be designated or certified as a one-
stop operator only with the agreement of the chief elected official
and the Governor.
(3) Limitation on authority.--Nothing in this Act shall be
construed to provide a local board with the authority to mandate
curricula for schools.
(g) Conflict of Interest.--A member of a local board may not--
(1) vote on a matter under consideration by the local board--
(A) regarding the provision of services by such member (or
by an entity that such member represents); or
(B) that would provide direct financial benefit to such
member or the immediate family of such member; or
(2) engage in any other activity determined by the Governor to
constitute a conflict of interest as specified in the State plan.
(h) Youth Council.--
(1) Establishment.--There shall be established, as a subgroup
within each local board, a youth council appointed by the local
board, in cooperation with the chief elected official for the local
area.
(2) Membership.--The membership of each youth council--
(A) shall include--
(i) members of the local board described in
subparagraph (A) or (B) of subsection (b)(2) with special
interest or expertise in youth policy;
(ii) representatives of youth service agencies,
including juvenile justice and local law enforcement
agencies;
(iii) representatives of local public housing
authorities;
(iv) parents of eligible youth seeking assistance under
this subtitle;
(v) individuals, including former participants, and
representatives of organizations, that have experience
relating to youth activities; and
(vi) representatives of the Job Corps, as appropriate;
and
(B) may include such other individuals as the chairperson
of the local board, in cooperation with the chief elected
official, determines to be appropriate.
(3) Relationship to local board.--Members of the youth council
who are not members of the local board described in subparagraphs
(A) and (B) of subsection (b)(2) shall be voting members of the
youth council and nonvoting members of the board.
(4) Duties.--The duties of the youth council include--
(A) developing the portions of the local plan relating to
eligible youth, as determined by the chairperson of the local
board;
(B) subject to the approval of the local board and
consistent with section 123--
(i) recommending eligible providers of youth
activities, to be awarded grants or contracts on a
competitive basis by the local board to carry out the youth
activities; and
(ii) conducting oversight with respect to the eligible
providers of youth activities, in the local area;
(C) coordinating youth activities authorized under section
129 in the local area; and
(D) other duties determined to be appropriate by the
chairperson of the local board.
(i) Alternative Entity.--
(1) In general.--For purposes of complying with subsections
(a), (b), and (c), and paragraphs (1) and (2) of subsection (h), a
State may use any local entity (including a local council, regional
workforce development board, or similar entity) that--
(A) is established to serve the local area (or the service
delivery area that most closely corresponds to the local area);
(B) is in existence on December 31, 1997;
(C)(i) is established pursuant to section 102 of the Job Training
Partnership Act, as in effect on December 31, 1997; or
(ii) is substantially similar to the local board described
in subsections (a), (b), and (c), and paragraphs (1) and (2) of
subsection (h); and
(D) includes--
(i) representatives of business in the local area; and
(ii)(I) representatives of labor organizations (for a
local area in which employees are represented by labor
organizations), nominated by local labor federations; or
(II) (for a local area in which no employees are
represented by such organizations), other representatives
of employees in the local area.
(2) References.--References in this Act to a local board or a
youth council shall be considered to include such an entity or a
subgroup of such an entity, respectively.
SEC. 118. LOCAL PLAN.
(a) In General.--Each local board shall develop and submit to the
Governor a comprehensive 5-year local plan (referred to in this title
as the ``local plan''), in partnership with the appropriate chief
elected official. The plan shall be consistent with the State plan.
(b) Contents.--The local plan shall include--
(1) an identification of--
(A) the workforce investment needs of businesses,
jobseekers, and workers in the local area;
(B) the current and projected employment opportunities in
the local area; and
(C) the job skills necessary to obtain such employment
opportunities;
(2) a description of the one-stop delivery system to be
established or designated in the local area, including--
(A) a description of how the local board will ensure the
continuous improvement of eligible providers of services
through the system and ensure that such providers meet the
employment needs of local employers and participants; and
(B) a copy of each memorandum of understanding described in
section 121(c) (between the local board and each of the one-
stop partners) concerning the operation of the one-stop
delivery system in the local area;
(3) a description of the local levels of performance negotiated
with the Governor and chief elected official pursuant to section
136(c), to be used to measure the performance of the local area and
to be used by the local board for measuring the performance of the
local fiscal agent (where appropriate), eligible providers, and the
one-stop delivery system, in the local area;
(4) a description and assessment of the type and availability
of adult and dislocated worker employment and training activities
in the local area;
(5) a description of how the local board will coordinate
workforce investment activities carried out in the local area with
statewide rapid response activities, as appropriate;
(6) a description and assessment of the type and availability
of youth activities in the local area, including an identification
of successful providers of such activities;
(7) a description of the process used by the local board,
consistent with subsection (c), to provide an opportunity for
public comment, including comment by representatives of businesses
and comment by representatives of labor organizations, and input
into the development of the local plan, prior to submission of the
plan;
(8) an identification of the entity responsible for the
disbursal of grant funds described in section 117(d)(3)(B)(i)(III),
as determined by the chief elected official or the Governor under
section 117(d)(3)(B)(i);
(9) a description of the competitive process to be used to
award the grants and contracts in the local area for activities
carried out under this subtitle; and
(10) such other information as the Governor may require.
(c) Process.--Prior to the date on which the local board submits a
local plan under this section, the local board shall--
(1) make available copies of a proposed local plan to the
public through such means as public hearings and local news media;
(2) allow members of the local board and members of the public,
including representatives of business and representatives of labor
organizations, to submit comments on the proposed local plan to the
local board, not later than the end of the 30-day period beginning
on the date on which the proposed local plan is made available; and
(3) include with the local plan submitted to the Governor under
this section any such comments that represent disagreement with the
plan.
(d) Plan Submission and Approval.--A local plan submitted to the
Governor under this section shall be considered to be approved by the
Governor at the end of the 90-day period beginning on the day the
Governor receives the plan, unless the Governor makes a written
determination during the 90-day period that--
(1) deficiencies in activities carried out under this subtitle
have been identified, through audits conducted under section 184 or
otherwise, and the local area has not made acceptable progress in
implementing corrective measures to address the deficiencies; or
(2) the plan does not comply with this title.
CHAPTER 3--WORKFORCE INVESTMENT ACTIVITIES PROVIDERS
SEC. 121. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEMS.
(a) In General.--Consistent with the State plan, the local board
for a local area, with the agreement of the chief elected official for
the local area, shall--
(1) develop and enter into the memorandum of understanding
described in subsection (c) with one-stop partners;
(2) designate or certify one-stop operators under subsection
(d); and
(3) conduct oversight with respect to the one-stop delivery
system in the local area.
(b) One-Stop Partners.--
(1) Required partners.--
(A) In general.--Each entity that carries out a program or
activities described in subparagraph (B) shall--
(i) make available to participants, through a one-stop
delivery system, the services described in section
134(d)(2) that are applicable to such program or
activities; and
(ii) participate in the operation of such system
consistent with the terms of the memorandum described in
subsection (c), and with the requirements of the Federal
law in which the program or activities are authorized.
(B) Programs and activities.--The programs and activities
referred to in subparagraph (A) consist of--
(i) programs authorized under this title;
(ii) programs authorized under the Wagner-Peyser Act
(29 U.S.C. 49 et seq.);
(iii) adult education and literacy activities
authorized under title II;
(iv) programs authorized under title I of the
Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.);
(v) programs authorized under section 403(a)(5) of the
Social Security Act (42 U.S.C. 603(a)(5)) (as added by
section 5001 of the Balanced Budget Act of 1997);
(vi) activities authorized under title V of the Older
Americans Act of 1965 (42 U.S.C. 3056 et seq.);
(vii) postsecondary vocational education activities
authorized under the Carl D. Perkins Vocational and Applied
Technology Education Act (20 U.S.C. 2301 et seq.);
(viii) activities authorized under chapter 2 of title
II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.);
(ix) activities authorized under chapter 41 of title
38, United States Code;
(x) employment and training activities carried out
under the Community Services Block Grant Act (42 U.S.C.
9901 et seq.);
(xi) employment and training activities carried out by
the Department of Housing and Urban Development; and
(xii) programs authorized under State unemployment
compensation laws (in accordance with applicable Federal
law).
(2) Additional partners.--
(A) In general.--In addition to the entities described in
paragraph (1), other entities that carry out a human resource
program described in subparagraph (B) may--
(i) make available to participants, through the one-
stop delivery system, the services described in section
134(d)(2) that are applicable to such program; and
(ii) participate in the operation of such system
consistent with the terms of the memorandum described in
subsection (c), and with the requirements of the Federal
law in which the program is authorized;
if the local board and chief elected official involved approve
such participation.
(B) Programs.--The programs referred to in subparagraph (A)
may include--
(i) programs authorized under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.);
(ii) programs authorized under section 6(d)(4) of the
Food Stamp Act of 1977 (7 U.S.C. 2015(d)(4));
(iii) work programs authorized under section 6(o) of
the Food Stamp Act of 1977 (7 U.S.C. 2015(o));
(iv) programs authorized under the National and Community
Service Act of 1990 (42 U.S.C. 12501 et seq.); and
(v) other appropriate Federal, State, or local
programs, including programs in the private sector.
(c) Memorandum of Understanding.--
(1) Development.--The local board, with the agreement of the
chief elected official, shall develop and enter into a memorandum
of understanding (between the local board and the one-stop
partners), consistent with paragraph (2), concerning the operation
of the one-stop delivery system in the local area.
(2) Contents.--Each memorandum of understanding shall contain--
(A) provisions describing--
(i) the services to be provided through the one-stop
delivery system;
(ii) how the costs of such services and the operating
costs of the system will be funded;
(iii) methods for referral of individuals between the
one-stop operator and the one-stop partners, for the
appropriate services and activities; and
(iv) the duration of the memorandum and the procedures
for amending the memorandum during the term of the
memorandum; and
(B) such other provisions, consistent with the requirements
of this title, as the parties to the agreement determine to be
appropriate.
(d) One-Stop Operators.--
(1) Designation and certification.--Consistent with paragraphs
(2) and (3), the local board, with the agreement of the chief
elected official, is authorized to designate or certify one-stop
operators and to terminate for cause the eligibility of such
operators.
(2) Eligibility.--To be eligible to receive funds made
available under this subtitle to operate a one-stop center referred
to in section 134(c), an entity (which may be a consortium of
entities)--
(A) shall be designated or certified as a one-stop
operator--
(i) through a competitive process; or
(ii) in accordance with an agreement reached between
the local board and a consortium of entities that, at a
minimum, includes 3 or more of the one-stop partners
described in subsection (b)(1); and
(B) may be a public or private entity, or consortium of
entities, of demonstrated effectiveness, located in the local
area, which may include--
(i) a postsecondary educational institution;
(ii) an employment service agency established under the
Wagner-Peyser Act (29 U.S.C. 49 et seq.), on behalf of the
local office of the agency;
(iii) a private, nonprofit organization (including a
community-based organization);
(iv) a private for-profit entity;
(v) a government agency; and
(vi) another interested organization or entity, which
may include a local chamber of commerce or other business
organization.
(3) Exception.--Elementary schools and secondary schools shall
not be eligible for designation or certification as one-stop
operators, except that nontraditional public secondary schools and
area vocational education schools shall be eligible for such
designation or certification.
(e) Established One-Stop Delivery System.--If a one-stop delivery
system has been established in a local area prior to the date of
enactment of this Act, the local board, the chief elected official, and
the Governor involved may agree to certify an entity carrying out
activities through the system as a one-stop operator for purposes of
subsection (d), consistent with the requirements of subsection (b), of
the memorandum of understanding, and of section 134(c).
SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING SERVICES.
(a) Eligibility Requirements.--
(1) In general.--Except as provided in subsection (h), to be
identified as an eligible provider of training services described
in section 134(d)(4) (referred to in this section as ``training
services'') in a local area and to be eligible to receive funds
made available under section 133(b) for the provision of training
services, a provider of such services shall meet the requirements
of this section.
(2) Providers.--Subject to the provisions of this section, to
be eligible to receive the funds, the provider shall be--
(A) a postsecondary educational institution that--
(i) is eligible to receive Federal funds under title IV
of the Higher Education Act of 1965 (20 U.S.C. 1070 et
seq.); and
(ii) provides a program that leads to an associate
degree, baccalaureate degree, or certificate;
(B) an entity that carries out programs under the Act of
August 16, 1937 (commonly known as the ``National
Apprenticeship Act''; 50 Stat. 664, chapter 663; 29 U.S.C. 50
et seq.); or
(C) another public or private provider of a program of
training services.
(b) Initial Eligibility Determination.--
(1) Postsecondary educational institutions and entities
carrying out apprenticeship programs.--To be initially eligible to
receive funds as described in subsection (a) to carry out a program
described in subparagraph (A) or (B) of subsection (a)(2), a
provider described in subparagraph (A) or (B), respectively, of
subsection (a)(2) shall submit an application, to the local board
for the local area in which the provider desires to provide
training services, at such time, in such manner, and containing
such information as the local board may require.
(2) Other eligible providers.--
(A) Procedure.--Each Governor of a State shall establish a
procedure for use by local boards in the State in determining
the initial eligibility of a provider described in subsection
(a)(2)(C) to receive funds as described in subsection (a) for a
program of training services, including the initial eligibility
of--
(i) a postsecondary educational institution to receive
such funds for a program not described in subsection
(a)(2)(A); and
(ii) a provider described in subsection (a)(2)(B) to
receive such funds for a program not described in
subsection (a)(2)(B).
(B) Recommendations.--In developing such procedure, the
Governor shall solicit and take into consideration the
recommendations of local boards and providers of training
services within the State.
(C) Opportunity to submit comments.--The Governor shall
provide an opportunity, during the development of the
procedure, for interested members of the public, including
representatives of business and labor organizations, to submit
comments on such procedure.
(D) Requirements.--In establishing the procedure, the
Governor shall require that, to be initially eligible to
receive funds as described in subsection (a) for a program, a
provider described in subsection (a)(2)(C)--
(i) shall submit an application, to the local board for
the local area in which the provider desires to provide
training services, at such time and in such manner as may
be required, and containing a description of the program;
(ii) if the provider provides training services through
a program on the date of application, shall include in the
application an appropriate portion of the performance
information and program cost information described in
subsection (d) for the program, as specified in the
procedure, and shall meet appropriate levels of performance
for the program, as specified in the procedure; and
(iii) if the provider does not provide training
services on such date, shall meet appropriate requirements,
as specified in the procedure.
(c) Subsequent Eligibility Determination.--
(1) Procedure.--Each Governor of a State shall establish a
procedure for use by local boards in the State in determining the
eligibility of a provider described in subsection (a)(2) to
continue to receive funds as described in subsection (a) for a
program after an initial period of eligibility under subsection (b)
(referred to in this section as ``subsequent eligibility'').
(2) Recommendations.--In developing such procedure, the
Governor shall solicit and take into consideration the
recommendations of local boards and providers of training services
within the State.
(3) Opportunity to submit comments.--The Governor shall provide
an opportunity, during the development of the procedure, for
interested members of the public, including representatives of
business and labor organizations, to submit comments on such
procedure.
(4) Considerations.--In developing such procedure, the Governor
shall ensure that the procedure requires the local boards to take
into consideration, in making the determinations of subsequent
eligibility--
(A) the specific economic, geographic, and demographic
factors in the local areas in which providers seeking
eligibility are located; and
(B) the characteristics of the populations served by
providers seeking eligibility, including the demonstrated
difficulties in serving such populations, where applicable.
(5) Requirements.--In establishing the procedure, the Governor
shall require that, to be eligible to continue to receive funds as
described in subsection (a) for a program after the initial period
of eligibility, a provider described in subsection (a)(2) shall--
(A) submit the performance information and program cost
information described in subsection (d)(1) for the program and
any additional information required to be submitted in
accordance with subsection (d)(2) for the program annually to
the appropriate local board at such time and in such manner as
may be required; and
(B) annually meet the performance levels described in
paragraph (6) for the program, as demonstrated utilizing
quarterly records described in section 136, in a manner
consistent with section 136.
(6) Levels of performance.--
(A) In general.--At a minimum, the procedure described in
paragraph (1) shall require the provider to meet minimum
acceptable levels of performance based on the performance
information referred to in paragraph (5)(A).
(B) Higher levels of performance eligibility.--The local
board may require higher levels of performance than the levels
referred to in subparagraph (A) for subsequent eligibility to
receive funds as described in subsection (a).
(d) Performance and Cost Information.--
(1) Required information.--For a provider of training services
to be determined to be subsequently eligible under subsection (c)
to receive funds as described in subsection (a), such provider
shall, under subsection (c), submit--
(A) verifiable program-specific performance information
consisting of--
(i) program information, including--
(I) the program completion rates for all
individuals participating in the applicable program
conducted by the provider;
(II) the percentage of all individuals
participating in the applicable program who obtain
unsubsidized employment, which may also include
information specifying the percentage of the
individuals who obtain unsubsidized employment in an
occupation related to the program conducted; and
(III) the wages at placement in employment of all
individuals participating in the applicable program;
and
(ii) training services information for all participants
who received assistance under section 134 to participate in
the applicable program, including--
(I) the percentage of participants who have
completed the applicable program and who are placed in
unsubsidized employment;
(II) the retention rates in unsubsidized employment
of participants who have completed the applicable
program, 6 months after the first day of the
employment;
(III) the wages received by participants who have
completed the applicable program, 6 months after the
first day of the employment involved; and
(IV) where appropriate, the rates of licensure or
certification, attainment of academic degrees or
equivalents, or attainment of other measures of skills,
of the graduates of the applicable program; and
(B) information on program costs (such as tuition and fees)
for participants in the applicable program.
(2) Additional information.--Subject to paragraph (3), in
addition to the performance information described in paragraph
(1)--
(A) the Governor may require that a provider submit, under
subsection (c), such other verifiable program-specific
performance information as the Governor determines to be
appropriate to obtain such subsequent eligibility, which may
include information relating to--
(i) retention rates in employment and the subsequent
wages of all individuals who complete the applicable
program;
(ii) where appropriate, the rates of licensure or
certification of all individuals who complete the program;
and
(iii) the percentage of individuals who complete the
program who attain industry-recognized occupational skills
in the subject, occupation, or industry for which training
is provided through the program, where applicable; and
(B) the Governor, or the local board, may require a
provider to submit, under subsection (c), other verifiable
program-specific performance information to obtain such
subsequent eligibility.
(3) Conditions.--
(A) In general.--If the Governor or a local board requests
additional information under paragraph (2) that imposes
extraordinary costs on providers, or if providers experience
extraordinary costs in the collection of information required
under paragraph (1)(A)(ii), the Governor or the local board
shall provide access to cost-effective methods for the
collection of the information involved, or the Governor shall
provide additional resources to assist providers in the
collection of such information from funds made available as
described in sections 128(a) and 133(a)(1), as appropriate.
(B) Higher education eligibility requirements.--The local
board and the designated State agency described in subsection
(i) may accept program-specific performance information
consistent with the requirements for eligibility under title IV
of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.)
from a provider for purposes of enabling the provider to
fulfill the applicable requirements of this subsection, if such
information is substantially similar to the information
otherwise required under this subsection.
(e) Local Identification.--
(1) In general.--The local board shall place on a list
providers submitting an application under subsection (b)(1) and
providers determined to be initially eligible under subsection
(b)(2), and retain on the list providers determined to be
subsequently eligible under subsection (c), to receive funds as
described in subsection (a) for the provision of training services
in the local area served by the local board. The list of providers
shall be accompanied by any performance information and program
cost information submitted under subsection (b) or (c) by the
provider.
(2) Submission to state agency.--On placing or retaining a
provider on the list, the local board shall submit, to the
designated State agency described in subsection (i), the list and
the performance information and program cost information referred
to in paragraph (1). If the agency determines, within 30 days after
the date of the submission, that the provider does not meet the
performance levels described in subsection (c)(6) for the program
(where applicable), the agency may remove the provider from the
list for the program. The agency may not remove from the list an
agency submitting an application under subsection (b)(1).
(3) Identification of eligible providers.--A provider who is
placed or retained on the list under paragraph (1), and is not
removed by the designated State agency under paragraph (2), for a
program, shall be considered to be identified as an eligible
provider of training services for the program.
(4) Availability.--
(A) State list.--The designated State agency shall compile
a single list of the providers identified under paragraph (3)
from all local areas in the State and disseminate such list,
and the performance information and program cost information
described in paragraph (1), to the one-stop delivery systems
within the State. Such list and information shall be made
widely available to participants in employment and training
activities authorized under section 134 and others through the
one-stop delivery system.
(B) Selection from state list.--Individuals eligible to
receive training services under section 134(d)(4) shall have
the opportunity to select any of the eligible providers, from
any of the local areas in the State, that are included on the
list described in subparagraph (A) to provide the services,
consistent with the requirements of section 134.
(5) Acceptance of individual training accounts by other
states.--States may enter into agreements, on a reciprocal basis,
to permit eligible providers of training services in a State to
accept individual training accounts provided in another State.
(f) Enforcement.--
(1) Accuracy of information.--If the designated State agency,
after consultation with the local board involved, determines that
an eligible provider or individual supplying information on behalf
of the provider intentionally supplies inaccurate information under
this section, the agency shall terminate the eligibility of the
provider to receive funds described in subsection (a) for any
program for a period of time, but not less than 2 years.
(2) Noncompliance.--If the designated State agency, or the
local board working with the State agency, determines that an
eligible provider described in subsection (a) substantially
violates any requirement under this Act, the agency, or the local
board working with the State agency, may terminate the eligibility
of such provider to receive funds described in subsection (a) for
the program involved or take such other action as the agency or
local board determines to be appropriate.
(3) Repayment.--A provider whose eligibility is terminated
under paragraph (1) or (2) for a program shall be liable for
repayment of all funds described in subsection (a) received for the
program during any period of noncompliance described in such
paragraph.
(4) Construction.--This subsection and subsection (g) shall be
construed to provide remedies and penalties that supplement, but do
not supplant, other civil and criminal remedies and penalties.
(g) Appeal.--The Governor shall establish procedures for providers
of training services to appeal a denial of eligibility by the local
board or the designated State agency under subsection (b), (c), or (e),
a termination of eligibility or other action by the board or agency
under subsection (f), or a denial of eligibility by a one-stop operator
under subsection (h). Such procedures shall provide an opportunity for
a hearing and prescribe appropriate time limits to ensure prompt
resolution of the appeal.
(h) On-the-Job Training or Customized Training Exception.--
(1) In general.--Providers of on-the-job training or customized
training shall not be subject to the requirements of subsections
(a) through (e).
(2) Collection and dissemination of information.--A one-stop
operator in a local area shall collect such performance information
from on-the-job training and customized training providers as the
Governor may require, determine whether the providers meet such
performance criteria as the Governor may require, and disseminate
information identifying providers that meet the criteria as
eligible providers, and the performance information, through the
one-stop delivery system. Providers determined to meet the criteria
shall be considered to be identified as eligible providers of
training services.
(i) Administration.--The Governor shall designate a State agency to
make the determinations described in subsection (e)(2), take the
enforcement actions described in subsection (f), and carry out other
duties described in this section.
SEC. 123. IDENTIFICATION OF ELIGIBLE PROVIDERS OF YOUTH ACTIVITIES.
From funds allocated under paragraph (2)(A) or (3) of section
128(b) to a local area, the local board for such area shall identify
eligible providers of youth activities by awarding grants or contracts
on a competitive basis, based on the recommendations of the youth
council and on the criteria contained in the State plan, to the
providers to carry out the activities, and shall conduct oversight with
respect to the providers, in the local area.
CHAPTER 4--YOUTH ACTIVITIES
SEC. 126. GENERAL AUTHORIZATION.
The Secretary shall make an allotment under section 127(b)(1)(C) to
each State that meets the requirements of section 112 and a grant to
each outlying area that complies with the requirements of this title,
to assist the State or outlying area, and to enable the State or
outlying area to assist local areas, for the purpose of providing
workforce investment activities for eligible youth in the State or
outlying area and in the local areas.
SEC. 127. STATE ALLOTMENTS.
(a) In General.--The Secretary shall--
(1) for each fiscal year in which the amount appropriated under
section 137(a) exceeds $1,000,000,000, reserve a portion determined
under subsection (b)(1)(A) of the amount appropriated under section
137(a) for use under sections 167 (relating to migrant and seasonal
farmworker programs) and 169 (relating to youth opportunity
grants); and
(2) use the remainder of the amount appropriated under section
137(a) for a fiscal year to make allotments and grants in
accordance with subparagraphs (B) and (C) of subsection (b)(1) and
make funds available for use under section 166 (relating to Native
American programs).
(b) Allotment Among States.--
(1) Youth activities.--
(A) Youth opportunity grants.--
(i) In general.--For each fiscal year in which the
amount appropriated under section 137(a) exceeds
$1,000,000,000, the Secretary shall reserve a portion of
the amount to provide youth opportunity grants and other
activities under section 169 (relating to youth opportunity
grants) and provide youth activities under section 167
(relating to migrant and seasonal farmworker programs).
(ii) Portion.--The portion referred to in clause (i)
shall equal, for a fiscal year--
(I) except as provided in subclause (II), the
difference obtained by subtracting $1,000,000,000 from
the amount appropriated under section 137(a) for the
fiscal year; or
(II) for any fiscal year in which the amount is
$1,250,000,000 or greater, $250,000,000.
(iii) Youth activities for farmworkers.--From the
portion described in clause (i) for a fiscal year, the
Secretary shall make available 4 percent of such portion to
provide youth activities under section 167.
(iv) Role model academy project.--From the portion
described in clause (i) for fiscal year 1999, the Secretary
shall make available such sums as the Secretary determines
to be appropriate to carry out section 169(g).
(B) Outlying areas.--
(i) In general.--From the amount made available under
subsection (a)(2) for a fiscal year, the Secretary shall
reserve not more than 1/4 of 1 percent of the amount
appropriated under section 137(a) for the fiscal year--
(I) to provide assistance to the outlying areas to
carry out youth activities and statewide workforce
investment activities; and
(II) for each of fiscal years 1999, 2000, and 2001,
to carry out the competition described in clause (ii),
except that the funds reserved to carry out such clause
for any such fiscal year shall not exceed the amount
reserved for the Freely Associated States for fiscal
year 1997, from amounts reserved under sections 252(a)
and 262(a)(1) of the Job Training Partnership Act (as
in effect on the day before the date of enactment of
this Act).
(ii) Limitation for freely associated states.--
(I) Competitive grants.--The Secretary shall use
funds described in clause (i)(II) to award grants to
Guam, American Samoa, the Commonwealth of the Northern
Mariana Islands, and the Freely Associated States to
carry out youth activities and statewide workforce
investment activities.
(II) Award basis.--The Secretary shall award grants
pursuant to subclause (I) on a competitive basis and
pursuant to the recommendations of experts in the field
of employment and training, working through the Pacific
Region Educational Laboratory in Honolulu, Hawaii.
(III) Assistance requirements.--Any Freely
Associated State that desires to receive assistance
under this subparagraph shall submit an application to
the Secretary and shall include in the application for
assistance--
(aa) information demonstrating that the Freely
Associated State will meet all conditions that
apply to States under this title;
(bb) an assurance that, notwithstanding any
other provision of this title, the Freely
Associated State will use such assistance only for
the direct provision of services; and
(cc) such other information and assurances as
the Secretary may require.
(IV) Termination of eligibility.--Notwithstanding
any other provision of law, the Freely Associated
States shall not receive any assistance under this
subparagraph for any program year that begins after
September 30, 2001.
(V) Administrative costs.--The Secretary may
provide not more than 5 percent of the funds made
available for grants under subclause (I) to pay the
administrative costs of the Pacific Region Educational
Laboratory in Honolulu, Hawaii, regarding activities
assisted under this clause.
(iii) Additional requirement.--The provisions of Public
Law 95-134, permitting the consolidation of grants by the
outlying areas, shall not apply to assistance provided to
those areas, including the Freely Associated States, under
this subparagraph.
(C) States.--
(i) In general.--After determining the amounts to be
reserved under subparagraph (A) (if any) and subparagraph
(B), the Secretary shall--
(I) from the amount referred to in subsection
(a)(2) for a fiscal year, make available not more than
1.5 percent to provide youth activities under section
166 (relating to Native Americans); and
(II) allot the remainder of the amount referred to
in subsection (a)(2) for a fiscal year to the States
pursuant to clause (ii) for youth activities and
statewide workforce investment activities.
(ii) Formula.--Subject to clauses (iii) and (iv), of
the remainder--
(I) 33 1/3 percent shall be allotted on the basis
of the relative number of unemployed individuals in
areas of substantial unemployment in each State,
compared to the total number of unemployed individuals
in areas of substantial unemployment in all States;
(II) 33 1/3 percent shall be allotted on the basis
of the relative excess number of unemployed individuals
in each State, compared to the total excess number of
unemployed individuals in all States; and
(III) 33 1/3 percent shall be allotted on the
basis of the relative number of disadvantaged youth in
each State, compared to the total number of
disadvantaged youth in all States, except as described
in clause (iii).
(iii) Calculation.--In determining an allotment under
clause (ii)(III) for any State in which there is a local
area designated under section 116(a)(2)(B) (relating to the
area served by a rural concentrated employment program
grant recipient), the allotment shall be based on the
higher of--
(I) the number of individuals who are age 16
through 21 in families with an income below the low-
income level in such area; or
(II) the number of disadvantaged youth in such
area.
(iv) Minimum and maximum percentages and minimum
allotments.--In making allotments under this subparagraph,
the Secretary shall ensure the following:
(I) Minimum percentage and allotment.--Subject to
subclause (IV), the Secretary shall ensure that no
State shall receive an allotment for a fiscal year that
is less than the greater of--
(aa) an amount based on 90 percent of the
allotment percentage of the State for the preceding
fiscal year; or
(bb) 100 percent of the total of the allotments
of the State under sections 252 and 262 of the Job
Training Partnership Act (as in effect on the day
before the date of enactment of this Act) for
fiscal year 1998.
(II) Small state minimum allotment.-- Subject to
subclauses (I), (III), and (IV), the Secretary shall
ensure that no State shall receive an allotment under
this subparagraph that is less than the total of--
(aa) 3/10 of 1 percent of $1,000,000,000 of
the remainder described in clause (i)(II) for the
fiscal year; and
(bb) if the remainder described in clause
(i)(II) for the fiscal year exceeds $1,000,000,000,
2/5 of 1 percent of the excess.
(III) Maximum percentage.--Subject to subclause
(I), the Secretary shall ensure that no State shall
receive an allotment percentage for a fiscal year that
is more than 130 percent of the allotment percentage of
the State for the preceding fiscal year.
(IV) Minimum funding.--In any fiscal year in which
the remainder described in clause (i)(II) does not
exceed $1,000,000,000, the minimum allotments under
subclauses (I) and (II) shall be calculated by the
methodology for calculating the corresponding
allotments under parts B and C of title II of the Job
Training Partnership Act, as in effect on July 1, 1998.
(2) Definitions.--For the purpose of the formula specified in
paragraph (1)(C):
(A) Allotment percentage.--The term ``allotment
percentage'', used with respect to fiscal year 2000 or a
subsequent fiscal year, means a percentage of the remainder
described in paragraph (1)(C)(i)(II) that is received through
an allotment made under paragraph (1)(C) for the fiscal year.
The term, used with respect to fiscal year 1998 or 1999, means
the percentage of the amounts allotted to States under sections
252(b) and 262(a) of the Job Training Partnership Act (as in
effect on the day before the date of enactment of this Act)
that is received under such sections by the State involved for
fiscal year 1998 or 1999.
(B) Area of substantial unemployment.--The term ``area of
substantial unemployment'' means any area that is of sufficient
size and scope to sustain a program of workforce investment
activities carried out under this subtitle and that has an
average rate of unemployment of at least 6.5 percent for the
most recent 12 months, as determined by the Secretary. For
purposes of this subparagraph, determinations of areas of
substantial unemployment shall be made once each fiscal year.
(C) Disadvantaged youth.--Subject to paragraph (3), the
term ``disadvantaged youth'' means an individual who is age 16
through 21 who received an income, or is a member of a family
that received a total family income, that, in relation to
family size, does not exceed the higher of--
(i) the poverty line; or
(ii) 70 percent of the lower living standard income
level.
(D) Excess number.--The term ``excess number'' means, used
with respect to the excess number of unemployed individuals
within a State, the higher of--
(i) the number that represents the number of unemployed
individuals in excess of 4.5 percent of the civilian labor
force in the State; or
(ii) the number that represents the number of
unemployed individuals in excess of 4.5 percent of the
civilian labor force in areas of substantial unemployment
in such State.
(E) Low-income level.--The term ``low-income level'' means
$7,000 with respect to income in 1969, and for any later year
means that amount that bears the same relationship to $7,000 as
the Consumer Price Index for that year bears to the Consumer
Price Index for 1969, rounded to the nearest $1,000.
(3) Special rule.--For the purpose of the formula specified in
paragraph (1)(C), the Secretary shall, as appropriate and to the
extent practicable, exclude college students and members of the
Armed Forces from the determination of the number of disadvantaged
youth.
(4) Definition.--In this subsection, the term ``Freely
Associated State'' means the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau.
(c) Reallotment.--
(1) In general.--The Secretary shall, in accordance with this
subsection, reallot to eligible States amounts that are allotted
under this section for youth activities and statewide workforce
investment activities and that are available for reallotment.
(2) Amount.--The amount available for reallotment for a program
year is equal to the amount by which the unobligated balance of the
State allotment under this section for such activities, at the end
of the program year prior to the program year for which the
determination under this paragraph is made, exceeds 20 percent of
such allotment for the prior program year.
(3) Reallotment.--In making reallotments to eligible States of
amounts available pursuant to paragraph (2) for a program year, the
Secretary shall allot to each eligible State an amount based on the
relative amount allotted to such State under this section for such
activities for the prior program year, as compared to the total
amount allotted to all eligible States under this section for such
activities for such prior program year.
(4) Eligibility.--For purposes of this subsection, an eligible
State means a State that has obligated at least 80 percent of the
State allotment under this section for such activities for the
program year prior to the program year for which the determination
under paragraph (2) is made.
(5) Procedures.--The Governor of each State shall prescribe
uniform procedures for the obligation of funds by local areas
within the State in order to avoid the requirement that funds be
made available for reallotment under this subsection. The Governor
shall further prescribe equitable procedures for making funds
available from the State and local areas in the event that a State
is required to make funds available for reallotment under this
subsection.
SEC. 128. WITHIN STATE ALLOCATIONS.
(a) Reservations for State Activities.--
(1) In general.--The Governor of a State shall reserve not more
than 15 percent of each of the amounts allotted to the State under
section 127(b)(1)(C) and paragraphs (1)(B) and (2)(B) of section
132(b) for a fiscal year for statewide workforce investment
activities.
(2) Use of funds.--Regardless of whether the reserved amounts
were allotted under section 127(b)(1)(C), or under paragraph (1)(B)
or (2)(B) of section 132(b), the Governor may use t