[Grandfather Provisions]

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.


Last Verified: September 30, 2011

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Last Revision: September 30, 2011