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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.
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