[Grandfather Provisions]

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.