[Grandfather Provisions]

SEC. 194. CONTINUATION OF STATE ACTIVITIES AND POLICIES.



    (a) In General.--Notwithstanding any other provision of this title, 

the Secretary may not deny approval of a State plan for a covered 

State, or an application of a covered State for financial assistance, 

under this title or find a covered State (including a State board or 

Governor), or a local area (including a local board or chief elected 

official) in a covered State, in violation of a provision of this 

title, on the basis that--

        (1)(A) the State proposes to allocate or disburse, allocates, 

    or disburses, within the State, funds made available to the State 

    under section 127 or 132 in accordance with the allocation formula 

    for the type of activities involved, or in accordance with a 

    disbursal procedure or process, used by the State under prior 

    consistent State laws; or

        (B) a local board in the State proposes to disburse, or 

    disburses, within the local area, funds made available to a State 

    under section 127 or 132 in accordance with a disbursal procedure 

    or process used by a private industry council under prior 

    consistent State law;

        (2) the State proposes to carry out or carries out a State 

    procedure through which local areas use, as fiscal agents for funds 

    made available to the State under section 127 or 132 and allocated 

    within the State, fiscal agents selected in accordance with a 

    process established under prior consistent State laws;

        (3) the State proposes to carry out or carries out a State 

    procedure through which the local board in the State (or the local 

    boards, the chief elected officials in the State, and the Governor) 

    designate or select the one-stop partners and one-stop operators of 

    the statewide system in the State under prior consistent State 

    laws, in lieu of making the designation, or certification described 

    in section 121 (regardless of the date the one-stop delivery 

    systems involved have been established);

        (4) the State proposes to carry out or carries out a State 

    procedure through which the persons responsible for selecting 

    eligible providers for purposes of subtitle B are permitted to 

    determine that a provider shall not be selected to provide both 

    intake services under section 134(d)(2) and training services under 

    section 134(d)(4), under prior consistent State laws;

        (5) the State proposes to designate or designates a State 

    board, or proposes to assign or assigns functions and roles of the 

    State board (including determining the time periods for development 

    and submission of a State plan required under section 112), for 

    purposes of subtitle B in accordance with prior consistent State 

    laws; or

        (6) a local board in the State proposes to use or carry out, 

    uses, or carries out a local plan (including assigning functions 

    and roles of the local board) for purposes of subtitle B in 

    accordance with the authorities and requirements applicable to 

    local plans and private industry councils under prior consistent 

    State laws.

    (b) Definition.--In this section:

        (1) Covered state.--The term ``covered State'' means a State 

    that enacted State laws described in paragraph (2).

        (2) Prior consistent state laws.--The term ``prior consistent 

    State laws'' means State laws, not inconsistent with the Job Training

    Partnership Act or any other applicable Federal law, that took effect

    on September 1, 1993, September 1, 1995, and September 1, 1997.