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Title II — Statewide and local workforce investment systems

S. 3151 · 114th Congress · Jul 7, 2016 · Lineage

II Statewide and local workforce investment systems

Sec. 201 Purpose

The purpose of this title is to provide worker training services and activities, through statewide and local workforce investment systems, that increase the employment, retention, and earnings of participants, and increase educational and occupational skill attainment by participants.

A State Provisions

Sec. 211 State workforce investment boards

(a)
Establishment— The Governor of a State shall establish a State workforce investment board.
(b)
Membership—
(1)
Composition— The Governor shall, not less often than once every 3 years, appoint members of the State board, who shall consist of—
(A)
representatives of business in the State;
(B)
representatives of employees’ interests, such as representatives of labor organizations, in the State; and
(C)
other persons that the Governor shall designate.
(2)
Maximum number of members— The State board shall not have more than 20 members.
(3)
Majority— A majority of the members of the State board shall be representatives of business in the State.
(4)
Chairperson— The Governor shall select a Chairperson for the State board from among its members.
(5)
Service at will of Governor— Service of a member of the State board shall be at the will of the Governor.
(6)
Decertification and removal— The Governor may, without providing notice or an opportunity to appeal, decertify a State board or remove any member of a State board, at any time for—
(A)
fraud or abuse; or
(B)
failure to carry out State board functions to the Governor’s satisfaction.
(c)
Functions— The functions of the State board shall include:
(1)
State plan— Consistent with section 212, each State board shall develop and submit to the Secretary a State plan.
(2)
Local areas— Consistent with section 221, the State board shall designate local areas.
(3)
Grant recipient— The State board shall serve as the State grant recipient of Federal funds distributed for the State under this Act.
(4)
Local boards— The State board shall—
(A)
allocate and disburse funds to local boards under title III; and
(B)
review, and approve or reject, local plans under section 223.
(5)
Employment statistics system, labor exchange system and unemployment compensation— Consistent with sections 318 and 319, the State board shall—
(A)
carry out—
(i)
coordination and development of a labor exchange system (including provision of services through that system) under section 318; and
(ii)
cooperative governance of an employment statistics system (including provision of employment statistics information) under section 319; and
(B)
ensure that the work test for the State unemployment compensation system is administered at each one-stop center.
(6)
Statistics and performance data— The State board shall disseminate the information and data and carry out the other functions required by section 319(e) and submit the report required by section 402(c)(1)(B). The State board shall establish a process for—
(A)
local boards and entities carrying out covered programs providing worker training services and activities, and one-stop operators, to collect and submit the information and data required by section 319(e)(1)(E); and
(B)
local boards and entities carrying out covered programs providing worker training services and activities to collect and submit, under section 402(c)(1), the statistics and information indicating the levels of performance on all applicable performance indicators described in section 402(b), in the aggregate and disaggregated by the demographic factors described in that section.
(7)
Other functions— The State board shall carry out all other functions required of the State board under this Act.
(d)
Budget and administration—
(1)
Funds for State boards—
(A)
Reserved funds— The State board may use funds reserved or retained for State board administrative costs under sections 313(c), 333(c), and 373(d) for functions of the State board.
(B)
Donations— The State board may solicit and accept gifts and donations from sources other than Federal funds made available under this Act, for functions of the State board.
(2)
Budget— The State board shall develop a budget for the functions of the State board.
(3)
Staff— The State board may employ staff to assist in carrying out the functions of the State board.
(e)
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 or activities 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.
(f)
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. The State board shall provide an opportunity for public comment on and input into development of the State plan before submission of the plan to the Secretary.

Sec. 212 State plan

(a)
In general— For a State to be eligible to receive funds under this Act, the State board shall develop and submit to the Secretary a single State plan (referred to in this Act as the “State plan”) that has been approved by the Governor of the State and that outlines a 1- to 3-year strategy for the statewide workforce investment system of the State and that meets the requirements of this Act.
(b)
Contents— The State plan shall include—
(1)
a list of members of the State board;
(2)
an assurance that the State has met the requirements of subsections (c), (e), and (f) of section 211;
(3)
information identifying the local areas designated in the State, the rationale for designating those local areas, and the population of unemployed individuals and of underemployed individuals in each local area;
(4)
an assurance that any grants and contracts for a covered program providing worker training services and activities (other than supplemental services provided under section 316 or 317) or providers of activities relating to labor exchange or employment statistics system, awarded by the Governor, the State board, and local boards (directly or through one-stop operators) will be awarded on a competitive basis and a description of the State’s rules and criteria for the competitive process;
(5)
a description of the process used by the State consistent with section 211(f) to provide an opportunity for public comment on and input into development of the plan, before submission of the plan;
(6)
assurances that the State will establish and require all local boards to comply with, in accordance with section 403, fiscal control and fund accounting procedures in order to ensure the proper disbursement of, and accounting for, Federal funds paid to the State;
(7)
a description of—
(A)
the methods and criteria the State will use in allocating funds to local boards under sections 313(e), 333(d), and 373(c);
(B)
the worker training services and activities that will be carried out with funds received by the State under this Act, and how the State will ensure the State meets the needs of—
(i)
eligible veterans;
(ii)
unemployed individuals, and underemployed individuals, who are age 16 or older;
(iii)
required participants in an employment and training program under section 6(d)(4)(C) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(d)(4)(C)), as amended by section 323(a);
(iv)
persons certified by the Secretary under section 223(a) of the Trade Act of 1974 (19 U.S.C. 2273(a));
(v)
disadvantaged youth;
(vi)
individuals with disabilities;
(vii)
Indians (including Alaska Natives) and Native Hawaiians; and
(viii)
individuals who are age 55 or older;
(C)
the requirements and restrictions the State board places on local boards in the State concerning use of funds under this Act;
(D)
the requirements and restrictions the State board places on other recipients of Federal funds from the State concerning use of funds under this Act;
(E)
(i)
the expected levels of performance for the State on the performance indicators listed in section 402(b); and
(ii)
any performance indicators, in addition to those listed in section 402(b), that the State chooses to apply under section 402(d)(1)(B) and the State's expected levels of performance for those indicators; and
(F)
how the State will hold local boards and other recipients of Federal funds from the State accountable for their performance on performance indicators;
(8)
information meeting the requirements of sections 334(b) and 375(a)(2); and
(9)
information specifying any activity determined to be a conflict of interest for purposes of section 211 or 222.
(c)
Plan submission and approval— The State board shall submit the State plan to the Secretary for approval. A State plan submitted to the Secretary under this section 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 the plan is inconsistent with the provisions of this Act.
(d)
Modifications to plan— A State may submit modifications to a State plan in accordance with the requirements of this section and section 211 as necessary during the 1- to 3-year period covered by the plan.
(e)
Powers of the Secretary— The Secretary may issue regulations under this section regarding the timing, format, and submission of the State plan and modifications to the State plan, but may not add any requirements for matters to be included in the State plan, other than the matters specified in subsection (b).

B Local provisions

Sec. 221 Local workforce investment areas

(a)
Designation of areas—
(1)
In general— In order for a State to receive funds under this Act, every 3 years, or more often if the State board chooses, the State board shall designate local workforce investment areas within the State. The State board may designate such an area even if no application is received for the area under paragraph (2).
(2)
Applications— The State board shall establish a process by which one or more units of general local government may apply for designation as a local area. The State board shall approve any application for designation as a local area from any unit of general local government with a population of 1,000,000 or more.
(3)
Considerations— In making the designation of local areas, the State board shall take into consideration—
(A)
the extent to which the local areas are consistent with labor market areas;
(B)
the distance that individuals will need to travel to receive services and activities provided in such local areas;
(C)
the resources of such local areas that are available to effectively administer the services and activities carried out under title III; and
(D)
any other factors that the State board requires.
(4)
Single local area— Subject to paragraph (2), the State board may designate the entire State as a single local area.
(b)
Local board planning and cooperation—
(1)
Information sharing— The State may require local boards 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 local boards.
(2)
Coordination of services and activities— The State may require local boards to coordinate the provision of worker training services and activities, including the provision of transportation and other supportive services.
(3)
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 coordinate or jointly exercise the functions described in paragraphs (1) and (2) in that region.

Sec. 222 Local workforce investment boards

(a)
Establishment— The State board shall every 3 years, or more often if the State board chooses, establish in each local area a local workforce investment board.
(b)
Membership—
(1)
Appointment of members—
(A)
Appointing official— In this subsection, the term appointing official means—
(i)
for a member of a local board appointed under subparagraph (C)(i), the chief elected official that appointed the member;
(ii)
for a member of a local board appointed under subparagraph (C)(ii)(I), the chief elected official or officials designated in the agreement described in that subparagraph; and
(iii)
for a member of a local board appointed under subparagraph (C)(ii)(II), the Governor.
(B)
State board criteria— 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. The criteria shall be consistent with this section.
(C)
Chief elected officials—
(i)
Single unit— In a case in which a local area includes only 1 unit of general local government, the chief elected official shall appoint the members of the local board for such area, in accordance with this section and the State criteria.
(ii)
Multiple units— In a case in which a local area includes more than 1 unit of general local government—
(I)
the chief elected officials of such units may execute an agreement that specifies the respective roles of the individual chief elected officials in the appointment and removal of the members of the local board and the decertification of the local board, in accordance with this section and the State criteria; and
(II)
if, after a reasonable effort, the chief elected officials are unable to reach agreement as provided under subclause (I), the Governor may appoint the members of the local board from individuals nominated by the chief elected officials.
(2)
Composition— The members of the local board shall consist of—
(A)
representatives of business in the local area;
(B)
representatives of employees’ interests, such as representatives of labor organizations, in the local area; and
(C)
other persons that the appointing official described in paragraph (1) shall designate.
(3)
Maximum number of members— The local board shall not have more than 20 members.
(4)
Majority— A majority of the members of the local board shall be representatives of business in the local area.
(5)
Chairperson— The members of the local board shall, by majority vote, elect a Chairperson for the local board.
(6)
Service at will of appointing official— Service of a member of the local board shall be at the will of the appointing official.
(7)
Decertification and removal— An appointing official may, without providing notice or an opportunity to appeal, decertify a local board, or remove a member of a local board, at any time for—
(A)
fraud or abuse; or
(B)
failure to carry out local board functions to the satisfaction of the appointing official.
(c)
Single State local area— Notwithstanding subsection (b), if a State determines that the State will be treated as a local area for purposes of the application of this Act, the Governor may designate the State board to carry out any or all of the functions of a local board under this Act.
(d)
Functions of local board— The functions of the local board shall include the following:
(1)
Local plan— Consistent with section 223, each local board shall develop and submit to the State board a local plan.
(2)
One-stop operators and training providers—
(A)
Selection of one-stop operators—
(i)
Designation or certification— Consistent with section 231(b) and any requirements imposed by the State board, the local board shall designate or certify one-stop operators.
(ii)
Termination— The local board may terminate at will the designation or certification of such an operator.
(B)
Selection of eligible providers of training services— Consistent with section 241, the local board shall (directly or through a one-stop operator) select eligible providers of training services.
(C)
Allocation of funds among one-stop operators— Consistent with this Act, the local board shall allocate among one-stop operators funds allocated by the State board for worker training services and activities under sections 313(e)(1), 333(d)(3), and 373(c), and shall allocate funds for local administrative costs under sections 313(e)(2), 333(d)(2), and 373(d).
(D)
Limitation on Secretary’s authority— The Secretary shall not issue regulations governing determinations to be made under this paragraph.
(3)
Employment statistics system, labor exchange system, and unemployment compensation— Consistent with sections 318 and 319, the local board shall assist the State board with the labor exchange system and employment statistics system under sections 318 and 319, and shall ensure that the work test for the State unemployment compensation system is administered at each one-stop center.
(4)
Statistics and performance data— The local board shall comply with the process established by the State board under section 211(c)(6), as the process applies to local boards, for collecting and submitting the information and data required by section 319(e)(1)(E) and the statistics and information indicating the levels of performance on all applicable performance indicators described in section 402(b), in the aggregate and disaggregated by the demographic factors described in that section.
(5)
Duties designated by the State board— The local board shall carry out all other functions designated by the State board.
(e)
Budget and administration—
(1)
Funds for local boards—
(A)
Reserved funds— The local board may use funds reserved or retained for local board administrative costs under sections 313(e)(2), 333(d)(2), and 373(d) for functions of the local board.
(B)
Donations— The local board may solicit and accept gifts and donations from sources other than Federal funds made available under this Act, for functions of the local board.
(2)
Budget— The local board shall develop a budget for the functions of the local board.
(3)
Staff— The local board may employ staff to assist in carrying out the functions of the local board.
(4)
Disbursal of funds to providers— Consistent with this Act, the local board shall disburse (directly or through a one-stop operator) funds allocated by the State board for worker training services and activities, to be carried out in accordance with this Act (including the requirements of the local plan).
(f)
Limitation on local board’s authority— No local board, in carrying out this Act, shall mandate the curriculum, a standard, or an assessment for an elementary school or secondary school.
(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 or activities 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)
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, information regarding membership, the designation or certification of one-stop operators, and the selection of eligible providers of training services, and on request, minutes of formal meetings of the local board. The local board shall provide an opportunity for public comment on and input into the development of the local plan before submission of the plan to the State board.

Sec. 223 Local plan

(a)
In general— To be eligible to receive funds under this Act, each local board shall develop and submit to the State board a single local plan (referred to in this Act as the “local plan”) that outlines a 1- to 3-year strategy for the local workforce investment system of the local area and that meets the requirements of this Act (including requirements of the State plan).
(b)
Contents— The local plan shall include—
(1)
a list of members of the local board;
(2)
an assurance that the requirements of subsections (d), (f), (g), and (h) of section 222 have been met;
(3)
an assurance that any grants and contracts involving Federal funds awarded by the local board (directly or through a one-stop operator) to providers of a covered program providing worker training services and activities or providers of activities relating to labor exchange or employment statistics system under section 313(e)(4), section 333(d)(3), and section 373(c) will be awarded on a competitive basis;
(4)
a description of the process used by the local board consistent with section 222(h) to provide an opportunity for public comment on and input into development of the plan, before submission of the plan;
(5)
an assurance that the local board will comply with all fiscal control and fund accounting procedures established by the State board under section 403 in order to ensure the proper disbursement of, and accounting for, Federal funds allocated to the local area; and
(6)
a description of—
(A)
the needs in the local area for worker training services and activities, including information on such needs of the unemployed individuals and underemployed individuals in the local area;
(B)
the one-stop delivery system to be established in the local area;
(C)
the division of responsibility between the local board and the one-stop operators in the local area, acting under section 241(a), for awarding any grants or contracts to eligible entities to provide worker services training and activities under paragraphs (3) and (4) of section 313(e), section 333(d)(3), and section 373(c);
(D)
the methods and factors the local board will use in allocating Federal funds for worker training services and activities described in paragraphs (3) and (4) of section 313(e), section 333(d)(3), and section 373(c) among one-stop operators in the local area;
(E)
the methods and factors the local board will use in allocating Federal funds for administrative costs under sections 313(e)(2), 333(d)(2), and 373(d) among one-stop operators in the local area;
(F)
the competitive process to be used by the local board (directly or through a one-stop operator) to award any grants and contracts referred to in paragraph (3);
(G)
the worker training services and activities that will be carried out with funds received by the local board under this Act, and how the local board will ensure the local board meets the needs of—
(i)
eligible veterans;
(ii)
unemployed individuals, and underemployed individuals, who are age 16 or older;
(iii)
required participants in an employment and training program under section 6(d)(4)(C) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(d)(4)(C)), as amended by section 323(a);
(iv)
persons certified by the Secretary under section 223(a) of the Trade Act of 1974 (19 U.S.C. 2273(a));
(v)
disadvantaged youth;
(vi)
individuals with disabilities;
(vii)
Indians (including Alaska Natives) and Native Hawaiians; and
(viii)
individuals who are age 55 or older;
(H)
how the local board will hold one-stop operators and other recipients of Federal funds from the local board accountable for their performance; and
(I)
such other information as the State board may require.
(c)
Plan submission and approval— The local board shall submit the local plan to the State board for approval.

C One-Stop delivery system

Sec. 231 One-stop delivery system

(a)
System— Consistent with this Act, the local board shall establish a one-stop delivery system, comprised of one-stop centers, in the local area.
(b)
Designation and certification of one-Stop operators— Consistent with this Act (including the requirements of the State plan and any other requirements imposed by the State board), the local board may—
(1)
choose the number and location of one-stop centers that will operate in the local area, to facilitate the provision of worker training services and activities;
(2)
allocate the funds the local board receives for worker training services and activities under sections 313(e)(1), 333(d)(3), and 373(c) among the one-stop operators for the operation of the centers;
(3)
allocate the funds the local board receives for administrative costs under sections 313(2), 333(d)(2), and 373(d) among the one-stop operators for the operation of the centers;
(4)
designate or certify one-stop operators for such centers; and
(5)
terminate at will the designation or certification of such operators.
(c)
Eligibility— To be eligible to receive funds made available under subsection (b) to operate a one-stop center, an entity—
(1)
may be a public or private entity, or consortium of entities, except that elementary schools and secondary schools (other than secondary schools providing career and technical education) shall not be eligible to receive the funds; and
(2)
shall be designated or certified as a one-stop operator through a competitive process.

D Providers of training services

Sec. 241 Providers of training services

(a)
Contracts with providers of training services— A local board may—
(1)
select and directly enter into contracts with eligible entities to provide training services in the local area; or
(2)
delegate to one-stop operators in the local area the responsibility for making those selections and entering into those contracts.
(b)
Criteria for providers of training services— Consistent with this Act (including requirements of the corresponding State plan and local plan, and any other requirements imposed by the State or local board), the local board may list criteria for selection of an eligible entity to receive funds made available under title III to provide training services in the local area.
(c)
Eligibility— To be eligible to receive funds through a contract awarded under subsection (a) to provide a program of training services, an entity—
(1)
may be a public or private entity, or consortium of entities, of demonstrated effectiveness;
(2)
shall be selected through a competitive process; and
(3)
shall submit—
(A)
in accordance with the process established by the State board under section 211(c)(6), as the process applies to such an entity, the statistics and information indicating the level of performance on all applicable performance indicators described in section 402(b), in the aggregate and disaggregated by the demographic factors described in that section; and
(B)
to the local board (or a one-stop operator with the responsibility described in subsection (a)(2)), any other information required by the State or local board.
(d)
Training services— In this section, the term “training services” means—
(1)
adult training services;
(2)
youth training services described in section 334;
(3)
advanced career training referred to in section 348(c); and
(4)
vocational rehabilitation services and information and referral services described in section 375.