[Federal Register: August 11, 2000 (Volume 65, Number 156)]
[Rules and Regulations]
[Page 49293-49342]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11au00-7]
PART 661--STATEWIDE AND LOCAL GOVERNANCE OF THE WORKFORCE
INVESTMENT SYSTEM UNDER TITLE I OF THE WORKFORCE INVESTMENT ACT
Subpart A --General Governance Provisions
Sec.
661.100 What is the workforce investment system?
661.110 What is the role of the Department of Labor as the Federal
governmental partner in the governance of the workforce investment
system?
661.120 What are the roles of the local and State governmental
partner in the governance of the workforce investment system?
Subpart B--State Governance Provisions
661.200 What is the State Workforce Investment Board?
661.203 What is meant by the terms ``optimum policy making
authority'' and ``expertise relating to [a] program, service or
activity''?
661.205 What is the role of the State Board?
661.207 How does the State Board meet its requirement to conduct
business in an open manner under the ``sunshine provision'' of WIA
section 111(g)?
661.210 Under what circumstances may the Governor select an
alternative entity in place of the State Workforce Investment Board?
661.220 What are the requirements for the submission of the State
Workforce Investment Plan?
661.230 What are the requirements for modification of the State
Workforce Investment Plan?
661.240 How do the unified planning requirements apply to the
five-year strategic WIA and Wagner-Peyser plan and to other
Department of Labor plans?
661.250 What are the requirements for designation of local
workforce investment areas?
661.260 What are the requirements for automatic designation of
workforce investment areas relating to units of local government
with a population of 500,000 or more?
661.270 What are the requirements for temporary and subsequent
designation of workforce investment areas relating to areas that had
been designated as service delivery areas under JTPA?
661.280 What right does an entity have to appeal the Governor's
decision rejecting a request for designation as a workforce
investment area?
661.290 Under what circumstances may States require Local Boards
to take part in regional planning activities?
Subpart C--Local Governance Provisions
661.300 What is the Local Workforce Investment Board?
661.305 What is the role of the Local Workforce Investment Board?
661.307 How does the Local Board meet its requirement to conduct
business in an open manner under the ``sunshine provision'' of WIA
section 117(e)?
661.310 Under what conditions may a Local Board directly be a
provider of core services, intensive services, or training services,
or act as a One-Stop Operator?
661.315 Who are the required members of the Local Workforce
Investment Boards?
661.317 Who may be selected to represent a particular One-Stop
partner program on the Local Board when there is more than one
partner program entity in the local area?
661.320 Who must chair a Local Board?
661.325 What criteria will be used to establish the membership of
the Local Board?
661.330 Under what circumstances may the State use an alternative
entity as the Local Workforce Investment Board?
661.335 What is a youth council, and what is its relationship to
the Local Board?
661.340 What are the responsibilities of the youth council?
661.345 What are the requirements for the submission of the local
workforce investment plan?
661.350 What are the contents of the local workforce investment
plan?
661.355 When must a local plan be modified?
Subpart D--Waivers and Work-Flex
661.400 What is the purpose of the General Statutory and
Regulatory Waiver Authority provided at section 189(i)(4) of the
Workforce Investment Act?
661.410 What provisions of WIA and the Wagner-Peyser Act may be
waived, and what provisions may not be waived?
661.420 Under what conditions may a Governor request, and the
Secretary approve, a general waiver of statutory or regulatory
requirements under WIA section189(i)(4)?
661.430 Under what conditions may the Governor submit a Workforce
Flexibility Plan?
661.440 What limitations apply to the State's Workforce Flexibility
Plan authority under WIA?
Authority: Sec. 506(c), Pub. L. 105-220; 20 U.S.C. 9276(c).
Subpart A--General Governance Provisions
Sec. 661.100 What is the workforce investment system?
Under title I of WIA, the workforce investment system provides the
framework for delivery of workforce investment activities at the State
and local levels to individuals who need those services, including job
seekers, dislocated workers, youth, incumbent workers, new entrants to
the workforce, veterans, persons with disabilities, and employers. Each
State's Governor is required, in accordance with the requirements of
this part, to establish a State Board; to designate local workforce
investment areas; and to oversee the creation of Local Boards and One-
Stop service delivery systems in the State.
Sec. 661.110 What is the role of the Department of Labor as the
Federal governmental partner in the governance of the workforce
investment system?
(a) Successful governance of the workforce investment system will
be achieved through cooperation and coordination of Federal, State and
local governments.
(b) The Department of Labor sees as one of its primary roles
providing leadership and guidance to support a system that meets the
objectives of title I of WIA, and in which State and local partners
have flexibility to design systems and deliver services in a manner
designed to best achieve the
goals of WIA based on their particular needs. The WIA regulations
provide the framework in which State and local officials can exercise
such flexibility within the confines of the statutory requirements.
Wherever possible, system features such as design options and
categories of services are broadly defined, and are subject to State
and local interpretation.
(c) The Secretary, in consultation with other Federal Agencies, as
appropriate, may publish guidance on interpretations of statutory and
regulatory provisions. State and local policies, interpretations,
guidelines and definitions that are consistent with interpretations
contained in such guidance will be considered to be consistent with the
Act for purposes of Sec. 661.120.
Sec. 661.120 What are the roles of the local and State governmental
partner in the governance of the workforce investment system?
(a) Local areas should establish policies, interpretations,
guidelines and definitions to implement provisions of title I of WIA to
the extent that such policies, interpretations, guidelines and
definitions are not inconsistent with the Act and the regulations
issued under the Act, Federal statutes and regulations governing One-
Stop partner programs, and with State policies.
(b) States should establish policies, interpretations, guidelines
and definitions to implement provisions of title I of WIA to the extent
that such policies, interpretations, guidelines and definitions are not
inconsistent with the Act and the regulations issued under the Act, as
well as Federal statutes and regulations governing One-Stop partner
programs.
Subpart B--State Governance Provisions
Sec. 661.200 What is the State Workforce Investment Board?
(a) The State Board is a board established by the Governor in
accordance with the requirements of WIA section 111 and this section.
(b) The membership of the State Board must meet the requirements of
WIA section 111(b). The State Board must contain two or more members
representing the categories described in WIA section 111(b)(1)(C)(iii)-
(v), and special consideration must be given to chief executive
officers of community colleges and community based organizations in the
selection of members representing the entities identified in WIA
section 111(b)(1)(C)(v).
(c) The Governor may appoint any other representatives or agency
officials, such as agency officials responsible for economic
development, child support and juvenile justice programs in the State.
(d) Members who represent organizations, agencies or other entities
must be individuals with optimum policy making authority within the
entities they represent.
(e) A majority of members of the State Board must be
representatives of business. Members who represent business must be
individuals who are owners, chief executive officers, chief operating
officers, or other individuals with optimum policy making or hiring
authority, including members of Local Boards.
(f) The Governor must appoint the business representatives from
among individuals who are nominated by State business organizations and
business trade associations. The Governor must appoint the labor
representatives from among individuals who are nominated by State labor
federations.
(g) The Governor must select a chairperson of the State Board from
the business representatives on the board.
(h) The Governor may establish terms of appointment or other
conditions governing appointment or membership on the State Board.
(i) For the programs and activities carried out by One-Stop
partners, as described in WIA section 121(b) and 20 CFR 662.200 and
662.210, the State Board must include:
(1) The lead State agency officials with responsibility for such
program, or
(2) In any case in which no lead State agency official has
responsibility for such a program service, a representative in the
State with expertise relating to such program, service or activity.
(3) If the director of the designated State unit, as defined in
section 7(8)(B) of the Rehabilitation Act, does not represent the State
Vocational Rehabilitation Services program (VR program) on the State
Board, then the State must describe in its State plan how the member of
the State Board representing the VR program will effectively represent
the interests, needs, and priorities of the VR program and how the
employment needs of individuals with disabilities in the State will be
addressed.
(j) An individual may be appointed as a representative of more than
one entity if the individual meets all the criteria for representation,
including the criteria described in paragraphs (d) through (f) of this
section, for each entity. (WIA sec. 111)
Sec. 661.203 What is meant by the terms ``optimum policy making
authority'' and ``expertise relating to [a] program, service or
activity''?
For purposes of selecting representatives to State and local
workforce investment boards:
(a) A representative with ``optimum policy making authority'' is an
individual who can reasonably be expected to speak affirmatively on
behalf of the entity he or she represents and to commit that entity to
a chosen course of action.
(b) A representative with ``expertise relating to [a] program,
service or activity'' includes a person who is an official with a One-
stop partner program and a person with documented expertise relating to
the One-stop partner program.
Sec. 661.205 What is the role of the State Board?
The State Board must assist the Governor in the:
(a) Development of the State Plan;
(b) Development and continuous improvement of a Statewide system of
activities that are funded under subtitle B of title I of WIA, or
carried out through the One-Stop delivery system, including--
(1) Development of linkages in order to assure coordination and
nonduplication among the programs and activities carried out by One-
Stop partners, including, as necessary, addressing any impasse
situations in the development of the local Memorandum of Understanding;
and
(2) Review of local plans;
(c) Commenting at least once annually on the measures taken under
section 113(b)(14) of the Carl D. Perkins Vocational and Technical
Education Act;
(d) Designation of local workforce investment areas,
(e) Development of allocation formulas for the distribution of
funds for adult employment and training activities and youth activities
to local areas, as permitted under WIA sections 128(b)(3)(B) and
133(b)(3)(B);
(f) 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 WIA section 136(b);
(g) Preparation of the annual report to the Secretary described in
WIA section 136(d);
(h) Development of the Statewide employment statistics system
described in section 15(e) of the Wagner-Peyser Act; and
(i) Development of an application for an incentive grant under WIA
section 503. (WIA sec. 111(d).)
Sec. 661.207 How does the State Board meet its requirement to conduct
business in an open manner under the ``sunshine provision'' of WIA
section 111(g)?
The State Board must conduct its business in an open manner as
required by WIA section 111(g), by making available to the public, on a
regular basis through open meetings, information about the activities
of the State Board. This includes information about the State Plan
prior to submission of the plan; information about membership; the
development of significant policies, interpretations, guidelines and
definitions; and, on request, minutes of formal meetings of the State
Board.
Sec. 661.210 Under what circumstances may the Governor select an
alternative entity in place of the State Workforce Investment Board?
(a) The State may use any State entity that meets the requirements
of WIA section 111(e) to perform the functions of the State Board.
(b) If the State uses an alternative entity, the State workforce
investment plan must demonstrate that the alternative entity meets all
three of the requirements of WIA section 111(e). Section 111(e)
requires that such entity:
(1) Was in existence on December 31, 1997;
(2)(i) Was established under section 122 (relating to State Job
Training Coordinating Councils) or title VII (relating to State Human
Resource Investment Councils) of the Job Training Partnership Act (29
U.S.C.1501 et seq.), as in effect on December 31, 1997, or
(ii) Is substantially similar to the State Board described in WIA
section 111(a), (b), and (c) and Sec. 661.200; and
(3) Includes, at a minimum, two or more representatives of business
in the State and two or more representatives of labor organizations in
the State.
(c) If the alternative entity does not provide for representative
membership of each of the categories of required State Board membership
under WIA section 111(b), the State Plan must explain the manner in
which the State will ensure an ongoing role for any unrepresented
membership group in the workforce investment system. The State Board
may maintain an ongoing role for an unrepresented membership group,
including entities carrying out One-stop partner programs, by means
such as regularly scheduled consultations with entities within the
unrepresented membership groups, by providing an opportunity for input
into the State Plan or other policy development by unrepresented
membership groups, or by establishing an advisory committee of
unrepresented membership groups.
(d) If the membership structure of the alternative entity is
significantly changed after December 31, 1997, the entity will no
longer be eligible to perform the functions of the State Board. In such
case, the Governor must establish a new State Board which meets all of
the criteria of WIA section 111(b).
(e) A significant change in the membership structure includes any
significant change in the organization of the alternative entity or in
the categories of entities represented on the alternative entity which
requires a change to the alternative entity's charter or a similar
document that defines the formal organization of the alternative
entity, regardless of whether the required change to the document has
or has not been made. A significant change in the membership structure
is considered to have occurred when members are added to represent
groups not previously represented on the entity. A significant change
in the membership structure is not considered to have occurred when
additional members are added to an existing membership category, when
non-voting members are added, or when a member is added to fill a
vacancy created in an existing membership category.
(f) In 20 CFR parts 660 through 671, all references to the State
Board also apply to an alternative entity used by a State.
Sec. 661.220 What are the requirements for the submission of the State
Workforce Investment Plan?
(a) The Governor of each State must submit a State Workforce
Investment Plan (State Plan) in order to be eligible to receive funding
under title I of WIA and the Wagner-Peyser Act. The State Plan must
outline the State's five year strategy for the workforce investment
system.
(b) The State Plan must be submitted in accordance with planning
guidelines issued by the Secretary of Labor. The planning guidelines
set forth the information necessary to document the State's vision,
goals, strategies, policies and measures for the workforce investment
system (that were arrived at through the collaboration of the Governor,
chief elected officials, business and other parties), as well as the
information required to demonstrate compliance with WIA, and the
information detailed by WIA and the WIA regulations, including 29 CFR
part 37, and the Wagner-Peyser Act and the Wagner-Peyser regulations at
20 CFR part 652:
(c) The State Plan must contain a description of the State's
performance accountability system, and the State performance measures
in accordance with the requirements of WIA section 136 and 20 CFR part
666.
(d) The State must provide an opportunity for public comment on and
input into the development of the State Plan prior to its submission.
The opportunity for public comment must include an opportunity for
comment by representatives of business, representatives of labor
organizations, and chief elected official(s) and must be consistent
with the requirement, at WIA section 111(g), that the State Board makes
information regarding the State Plan and other State Board activities
available to the public through regular open meetings. The State Plan
must describe the State's process and timeline for ensuring a
meaningful opportunity for public comment.
(e) The Secretary reviews completed plans and must approve all
plans within ninety days of their submission, unless the Secretary
determines in writing that:
(1) The plan is inconsistent with the provisions of title I of WIA
or the WIA regulations, including 29 CFR part 37. For example, a
finding of inconsistency would be made if the Secretary and the
Governor have not reached agreement on the adjusted levels of
performance under WIA section 136(b)(3)(A), or there is not an
effective strategy in place to ensure development of a fully
operational One-Stop delivery system in the State; or
(2) The portion of the plan describing the detailed Wagner-Peyser
plan does not satisfy the criteria for approval of such plans as
provided in section 8(d) of the Wagner-Peyser Act or the Wagner-Peyser
regulations at 20 CFR part 652.
(3) A plan which is incomplete, or which does not contain
sufficient information to determine whether it is consistent with the
statutory or regulatory requirements of title I of WIA or of section
8(d) of the Wagner-Peyser Act, will be considered to be inconsistent
with those requirements.
Sec. 661.230 What are the requirements for modification of the State
Workforce Investment Plan?
(a) The State may submit a modification of its workforce investment
plan at any time during the five-year life of the plan.
(b) Modifications are required when:
(1) Changes in Federal or State law or policy substantially change
the assumptions upon which the plan is based.
(2) There are changes in the Statewide vision, strategies,
policies, performance indicators, the methodology used to determine
local allocation of funds, reorganizations which change the working
relationship with system employees, changes in organizational
responsibilities, changes to the membership structure of the State
Board or alternative entity and similar substantial changes to the
State's workforce investment system.
(3) The State has failed to meet performance goals, and must adjust
service strategies.
(c) Modifications are required in accordance with the Wagner-Peyser
provisions at 20 CFR 652.212.
(d) Modifications to the State Plan are subject to the same public
review and comment requirements that apply to the development of the
original State Plan.
(e) State Plan modifications will be approved by the Secretary
based on the approval standard applicable to the original State Plan
under Sec. 661.220(e).
Sec. 661.240 How do the unified planning requirements apply to the
five-year strategic WIA and Wagner-Peyser plan and to other Department
of Labor plans?
(a) A State may submit to the Secretary a unified plan for any of
the programs or activities described in WIA section 501(b)(2). This
includes the following DOL programs and activities:
(1) The five-year strategic WIA and Wagner-Peyser plan;
(2) Trade adjustment assistance activities and NAFTA-TAA;
(3) Veterans' programs under 38 U.S.C. Chapter 41;
(4) Programs authorized under State unemployment compensation laws;
(5) Welfare-to-Work (WtW) programs; and
(6) Senior Community Service Employment Programs under title V of
the Older Americans Act.
(b) For purposes of paragraph (a) of this section:
(1) A State may submit, as part of the unified plan, any plan,
application form or any other similar document, that is required as a
condition for the approval of Federal funding under the applicable
program. These plans include such things as the WIA plan, or the WtW
plan. They do not include jointly executed funding instruments, such as
grant agreements, or Governor/Secretary Agreements or items such as
corrective actions plans.
(2) A state may submit a unified plan meeting the requirements of
the Interagency guidance entitled State Unified Plan, Planning Guidance
for State Unified Plans Under Section 501 of the Workforce Investment
Act of 1998, in lieu of completing the individual State planning
guidelines of the programs covered by the unified plan.
(c) A State which submits a unified plan covering an activity or
program described in subsection 501(b) of WIA that is approved under
subsection 501(d) of the Act will not be required to submit any other
plan or application in order to receive Federal funds to carry out the
activity or program.
(d) Each portion of a unified plan submitted under paragraph (a) of
this section is subject to the particular requirements of Federal law
authorizing the program. All grantees are still subject to such things
as reporting and record-keeping requirements, corrective action plan
requirements and other generally applicable requirements.
(e) A unified plan must contain the information required by WIA
section 501(c) and will be approved in accordance with the requirements
of WIA section 501(d).
Sec. 661.250 What are the requirements for designation of local
workforce investment areas?
(a) The Governor must designate local workforce investment areas in
order for the State to receive funding under title I of WIA.
(b) The Governor must take into consideration the factors described
in WIA section 116(a)(1)(B) in making designations of local areas. Such
designation must be made in consultation with the State Board, and
after consultation with chief elected officials. The Governor must also
consider comments received through the public comment process described
in the State workforce investment plan under Sec. 661.220(d).
(c) The Governor may approve a request for designation as a
workforce investment area from any unit of general local government,
including a combination of such units, if the State Board determines
that the area meets the requirements of WIA section 116(a)(1)(B) and
recommends designation.
(d) The Governor of any State that was a single service delivery
area State under the Job Training Partnership Act as of July 1, 1998,
and only those States, may designate the State as a single local
workforce investment area State. (WIA sec.116.)
Sec. 661.260 What are the requirements for automatic designation of
workforce investment areas relating to units of local government with a
population of 500,000 or more?
The requirements for automatic designation relating to units of
local government with a population of 500,000 or more and to rural
concentrated employment programs are contained in WIA section
116(a)(2). The Governor has authority to determine the source of
population data to use in making these designations.
Sec. 661.270 What are the requirements for temporary and subsequent
designation of workforce investment areas relating to areas that had
been designated as service delivery areas under JTPA?
The requirements for temporary and subsequent designation relating
to areas that had been designated as service delivery areas under JTPA
are contained in WIA section 116(a)(3).
Sec. 661.280 What right does an entity have to appeal the Governor's
decision rejecting a request for designation as a workforce investment
area?
(a) A unit of local government (or combination of units) or a rural
concentrated employment program grant recipient (as described at WIA
section 116(a)(2)(B), which has requested but has been denied its
request for designation as a workforce investment area under
Secs. 661.260 through 661.270, may appeal the decision to the State
Board, in accordance with appeal procedures established in the State
Plan.
(b) If a decision on the appeal is not rendered in a timely manner
or if the appeal to the State Board does not result in designation, the
entity may request review by the Secretary of Labor, under the
procedures set forth at 20 CFR 667.640(a).
(c) The Secretary may require that the area be designated as a
workforce investment area, if the Secretary determines that:
(1) The entity was not accorded procedural rights under the State
appeals process; or
(2) The area meets the automatic designation requirements at WIA
section 116(a)(2) or the temporary and subsequent designation
requirements at WIA section 116(a)(3), as appropriate.
Sec. 661.290 Under what circumstances may States require Local Boards
to take part in regional planning activities?
(a) The State may require Local Boards within a designated region
(as defined at 20 CFR 660.300) to:
(1) Participate in a regional planning process that results in
regional performance measures for workforce investment activities under
title I of WIA. Regions that meet or exceed the regional performance
measures may receive regional incentive grants;
(2) Share, where feasible, employment and other types of
information that will assist in improving the performance of all local
areas in the designated region on local performance measures; and
(3) Coordinate the provision of WIA title I services, including
supportive services such as transportation, across the boundaries of
local areas within the designated region.
(b) Two or more States may designate a labor market area, economic
development region, or other appropriate contiguous subarea of the
States as an interstate region. In such cases, the States may jointly
exercise the State's functions described in this section.
(c) Designation of intrastate regions and interstate regions and
their corresponding performance measures must be described in the
respective State Plan(s). For interstate regions, the roles of the
respective Governors, State Boards and Local Boards must be described
in the respective State Plans.
(d) Unless agreed to by all affected chief elected officials and
the Governor, these regional planning activities may not substitute for
or replace the requirements applicable to each local area under other
provisions of the WIA. (WIA sec. 116(a).)
Subpart C--Local Governance Provisions
Sec. 661.300 What is the Local Workforce Investment Board?
(a) The Local Workforce Investment Board (Local Board) is appointed
by the chief elected official in each local area in accordance with
State criteria established under WIA section 117(b), and is certified
by the Governor every two years, in accordance with WIA section
117(c)(2).
(b) In partnership with the chief elected official(s), the Local
Board sets policy for the portion of the Statewide workforce investment
system within the local area.
(c) The Local Board and the chief elected official(s) may enter
into an agreement that describes the respective roles and
responsibilities of the parties.
(d) The Local Board, in partnership with the chief elected
official, develops the local workforce investment plan and performs the
functions described in WIA section 117(d). (WIA sec.117 (d).)
(e) If a local area includes more than one unit of general local
government in accordance with WIA section 117 (c)(1)(B), the chief
elected officials of such units may execute an agreement to describe
their responsibilities for carrying out the roles and responsibilities.
If, after a reasonable effort, the chief elected officials are unable
to reach agreement, the Governor may appoint the members of the local
board from individuals nominated or recommended as specified in WIA
section 117(b).
(f) If the State Plan indicates that the State will be treated as a
local area under WIA title I, the Governor may designate the State
Board to carry out any of the roles of the Local Board.
Sec. 661.305 What is the role of the Local Workforce Investment Board?
(a) WIA section 117(d) specifies that the Local Board is
responsible for:
(1) Developing the five-year local workforce investment plan (Local
Plan) and conducting oversight of the One-Stop system, youth activities
and employment and training activities under title I of WIA, in
partnership with the chief elected official;
(2) Selecting One-Stop operators with the agreement of the chief
elected official;
(3) Selecting eligible youth service providers based on the
recommendations of the youth council, and identifying eligible
providers of adult and dislocated worker intensive services and
training services, and maintaining a list of eligible providers with
performance and cost information, as required in 20 CFR part 663,
subpart E;
(4) Developing a budget for the purpose of carrying out the duties
of the Local Board, subject to the approval of the chief elected
official;
(5) Negotiating and reaching agreement on local performance
measures with the chief elected official and the Governor;
(6) Assisting the Governor in developing the Statewide employment
statistics system under the Wagner-Peyser Act;
(7) Coordinating workforce investment activities with economic
development strategies and developing employer linkages; and
(8) Promoting private sector involvement in the Statewide workforce
investment system through effective connecting, brokering, and coaching
activities through intermediaries such as the One-Stop operator in the
local area or through other organizations, to assist employers in
meeting hiring needs.
(b) The Local Board, in cooperation with the chief elected
official, appoints a youth council as a subgroup of the Local Board and
coordinates workforce and youth plans and activities with the youth
council, in accordance with WIA section 117(h) and Sec. 661.335.
(c) Local Boards which are part of a State designated region for
regional planning must carry out the regional planning responsibilities
required by the State in accordance with WIA section 116(c) and
Sec. 661.290. (WIA sec. 117.)
Sec. 661.307 How does the Local Board meet its requirement to conduct
business in an open manner under the ``sunshine provision'' of WIA
section 117(e)?
The Local Board must conduct its business in an open manner as
required by WIA section 117(e), by making available to the public, on a
regular basis through open meetings, information about the activities
of the Local Board. This includes information about the Local Plan
prior to submission of the plan; information about membership; the
development of significant policies, interpretations, guidelines and
definitions; and, on request, minutes of formal meetings of the Local
Board.
Sec. 661.310 Under what limited conditions may a Local Board directly
be a provider of core services, intensive services, or training
services, or act as a One-Stop Operator?
(a) A Local Board may not directly provide core services, or
intensive services, or be designated or certified as a One-Stop
operator, unless agreed to by the chief elected official and the
Governor.
(b) A Local Board is prohibited from providing training services,
unless the Governor grants a waiver in accordance with the provisions
in WIA section 117(f)(1). The waiver shall apply for not more than one
year. The waiver may be renewed for additional periods, but for not
more than one additional year at a time.
(c) The restrictions on the provision of core, intensive, and
training services by the Local Board, and designation or certification
as One-Stop operator, also apply to staff of the Local Board. (WIA sec.
117(f)(1) and (f)(2).)
Sec. 661.315 Who are the required members of the Local Workforce
Investment Boards?
(a) The membership of Local Board must be selected in accordance
with criteria established under WIA section 117(b)(1) and must meet the
requirements of WIA section 117(b)(2). The Local Board must contain two
or more members representing the categories described in WIA section
117(b)(2)(A)(ii)--(v), and special consideration must be given to the
entities identified in WIA section 117(b)(2)(A)(ii), (iv) and (v) in
the selection of members representing those categories. The Local Board
must contain at least one member representing each One-Stop partner.
(b) The membership of Local Boards may include individuals or
representatives of other appropriate entities, including entities
representing individuals with multiple barriers to employment and
other special populations, as determined by the chief elected official.
(c) Members who represent organizations, agencies or other entities
must be individuals with optimum policy making authority within the
entities they represent.
(d) A majority of the members of the Local Board must be
representatives of business in the local area. Members representing
business must be individuals who are owners, chief executive officers,
chief operating officers, or other individuals with optimum
policymaking or hiring authority. Business representatives serving on
Local Boards may also serve on the State Board.
(e) Chief elected officials must appoint the business
representatives from among individuals who are nominated by local
business organizations and business trade associations. Chief elected
officials must appoint the labor representatives from among individuals
who are nominated by local labor federations (or, for a local area in
which no employees are represented by such organizations, other
representatives of employees). (WIA sec. 117(b).)
(f) An individual may be appointed as a representative of more than
one entity if the individual meets all the criteria for representation,
including the criteria described in paragraphs (c) through (e) of this
section, for each entity.
Sec. 661.317 Who may be selected to represent a particular One-Stop
partner program on the Local Board when there is more than one partner
program entity in the local area?
When there is more than one grant recipient, administrative entity
or organization responsible for administration of funds of a particular
One-stop partner program in the local area, the chief elected official
may appoint one or more members to represent all of those particular
partner program entities. In making such appointments, the local
elected official may solicit nominations from the partner program
entities.
Sec. 661.320 Who must chair a Local Board?
The Local Board must elect a chairperson from among the business
representatives on the board. (WIA sec. 117(b)(5).)
Sec. 661.325 What criteria will be used to establish the membership of
the Local Board?
The Local Board is appointed by the chief elected official(s) in
the local area in accordance with State criteria established under WIA
section 117(b), and is certified by the Governor every two years, in
accordance with WIA section 117(c)(2). The criteria for certification
must be described in the State Plan. (WIA sec. 117(c).)
Sec. 661.330 Under what circumstances may the State use an alternative
entity as the Local Workforce Investment Board?
(a) The State may use any local entity that meets the requirements
of WIA section 117(i) to perform the functions of the Local Board. WIA
section 117(i) requires that such entity:
(1) Was established to serve the local area (or the service
delivery area that most closely corresponds to the local area);
(2) Was in existence on December 31, 1997;
(3)(i) Is a Private Industry Council established under 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 WIA
section 117 (a), (b), and (c) and (h)(1) and (2); and,
(4) Includes, at a minimum, two or more representatives of business
in the local area and two or more representatives of labor
organizations nominated by local labor federations or employees in the
local area.
(b)(1) If the Governor certifies an alternative entity to perform
the functions of the Local Board; the State workforce investment plan
must demonstrate that the alternative entity meets the requirements of
WIA section 117(i), set forth in paragraph (a) of this section.
(2) If the alternative entity does not provide for representative
membership of each of the categories of required Local Board membership
under WIA section 117(b), including all of the One-stop partner
programs, the local workforce investment plan must explain the manner
in which the Local Board will ensure an ongoing role for the
unrepresented membership group in the local workforce investment
system.
(3) The Local Board may provide an ongoing role for an
unrepresented membership group, including entities carrying out One-
stop partner programs, by means such as regularly scheduled
consultations with entities within the unrepresented membership groups,
by providing an opportunity for input into the local plan or other
policy development by unrepresented membership groups, or by
establishing an advisory committee of unrepresented membership groups.
The Local Board must enter into good faith negotiations over the terms
of the MOU with all entities carrying out One-stop partner programs,
including programs not represented on the alternative entity.
(c) If the membership structure of an alternative entity is
significantly changed after December 31, 1997, the entity will no
longer be eligible to perform the functions of the Local Board. In such
case, the chief elected official(s) must establish a new Local Board
which meets all of the criteria of WIA section 117(a), (b), and (c) and
(h)(1) and (2).
(d) A significant change in the membership structure includes any
significant change in the organization of the alternative entity or in
the categories of entities represented on the alternative entity which
requires a change to the alternative entity's charter or a similar
document that defines the formal organization of the alternative
entity, regardless of whether the required change to the document has
or has not been made. A significant change in the membership structure
is considered to have occurred when members are added to represent
groups not previously represented on the entity. A significant change
in the membership structure is not considered to have occurred when
additional members are added to an existing membership category, when
non-voting members (including a Youth Council) are added, or when a
member is added to fill a vacancy created in an existing membership
category.
(e) In 20 CFR parts 660 through 671, all references to the Local
Board must be deemed to also apply to an alternative entity used by a
local area. (WIA sec. 117(i).)
Sec. 661.335 What is a youth council, and what is its relationship to
the Local Board?
(a) A youth council must be established as a subgroup within each
Local Board.
(b) The membership of each youth council must include:
(1) Members of the Local Board, such as educators, which may
include special education personnel, employers, and representatives of
human service agencies, who have special interest or expertise in youth
policy;
(2) Members who represent service agencies, such as juvenile
justice and local law enforcement agencies;
(3) Members who represent local public housing authorities;
(4) Parents of eligible youth seeking assistance under subtitle B
of title I of WIA;
(5) Individuals, including former participants, and members who
represent organizations, that have
experience relating to youth activities; and
(6) Members who represent the Job Corps, if a Job Corps Center is
located in the local area represented by the council.
(c) Youth councils may include other individuals, who the chair of
the Local Board, in cooperation with the chief elected official,
determines to be appropriate.
(d) Members of the youth council who are not members of the Local
Board must be voting members of the youth council and nonvoting members
of the Local Board.
Sec. 661.340 What are the responsibilities of the youth council?
The youth council is responsible for:
(a) Coordinating youth activities in a local area;
(b) Developing portions of the local plan related to eligible
youth, as determined by the chairperson of the Local Board;
(c) Recommending eligible youth service providers in accordance
with WIA section 123, subject to the approval of the Local Board;
(d) Conducting oversight with respect to eligible providers of
youth activities in the local area, subject to the approval of the
Local Board; and
(e) Carrying out other duties, as authorized by the chairperson of
the Local Board, such as establishing linkages with educational
agencies and other youth entities.
Sec. 661.345 What are the requirements for the submission of the local
workforce investment plan?
(a) WIA section 118 requires that each Local Board, in partnership
with the appropriate chief elected officials, develops and submits a
comprehensive five-year plan to the Governor which identifies and
describes certain policies, procedures and local activities that are
carried out in the local area, and that is consistent with the State
Plan.
(b) The Local Board must provide an opportunity for public comment
on and input into the development of the local workforce investment
plan prior to its submission, and the opportunity for public comment on
the local plan must:
(1) Make copies of the proposed local plan available to the public
(through such means as public hearings and local news media);
(2) Include an opportunity for comment by members of the Local
Board and members of the public, including representatives of business
and labor organizations;
(3) Provide at least a thirty (30) day period for comment,
beginning on the date on which the proposed plan is made available,
prior to its submission to the Governor; and
(4) Be consistent with the requirement, in WIA section 117(e), that
the Local Board make information about the plan available to the public
on a regular basis through open meetings.
(c) The Local Board must submit any comments that express
disagreement with the plan to the Governor along with the plan.
Sec. 661.350 What are the contents of the local workforce investment
plan?
(a) The local workforce investment plan must meet the requirements
of WIA section 118(b). The plan must include:
(1) An identification of the workforce investment needs of
businesses, job-seekers, and workers in the local area;
(2) An identification of current and projected employment
opportunities and job skills necessary to obtain such opportunities;
(3) A description of the One-Stop delivery system to be established
or designated in the local area, including:
(i) How the Local Board will ensure continuous improvement of
eligible providers of services and ensure that such providers meet the
employment needs of local employers and participants; and
(ii) A copy of the local Memorandum(s) of Understanding between the
Local Board and each of the One-Stop partners concerning the operation
of the local One-Stop delivery system;
(4) A description of the local levels of performance negotiated
with the Governor and the chief elected official(s) to be used by the
Local Board for measuring the performance of the local fiscal agent
(where appropriate), eligible providers, and the local One-Stop
delivery system;
(5) A description and assessment of the type and availability of
adult and dislocated worker employment and training activities in the
local area, including a description of the local ITA system and the
procedures for ensuring that exceptions to the use of ITA's, if any,
are justified under WIA section 134(d)(4)(G)(ii) and 20 CFR 663.430;
(6) A description of how the Local Board will coordinate local
activities with Statewide rapid response activities;
(7) A description and assessment of the type and availability of
youth activities in the local area, including an identification of
successful providers of such activities;
(8) A description of the process used by the Local Board to provide
opportunity for public comment, including comment by representatives of
business and labor organizations, and input into the development of the
local plan, prior to the submission of the plan;
(9) An identification of the fiscal agent, or entity responsible
for the disbursal of grant funds;
(10) A description of the competitive process to be used to award
grants and contracts for activities carried out under this subtitle I
of WIA, including the process to be used to procure training services
that are made as exceptions to the Individual Training Account process
(WIA section 134(d)(4)(G)),
(11) A description of the criteria to be used by the Governor and
the Local Board, under 20 CFR 663.600, to determine whether funds
allocated to a local area for adult employment and training activities
under WIA sections 133(b)(2)(A) or (3) are limited, and the process by
which any priority will be applied by the One-Stop operator;
(12) In cases where an alternate entity functions as the Local
Board, the information required at Sec. 661.330(b), and
(13) Such other information as the Governor may require.
(b) The Governor must review completed plans and must approve all
such plans within ninety days of their submission, unless the Governor
determines in writing that:
(1) There are deficiencies identified in local workforce investment
activities carried out under this subtitle that have not been
sufficiently addressed; or
(2) The plan does not comply with title I of WIA and the WIA
regulations, including the required consultations, the public comment
provisions, and the nondiscrimination requirements of 29 CFR part 37.
(c) In cases where the State is a single local area:
(1) The Secretary performs the roles assigned to the Governor as
they relate to local planning activities.
(2) The Secretary issues planning guidance for such States.
(3) The requirements found in WIA and in the WIA regulations for
consultation with chief elected officials apply to the development of
State and local plans and to the development and operation of the One-
Stop delivery system.
(d) During program year 2000, if a local plan does not contain all
of the elements described in paragraph (a) of this section, the
Governor may approve a local plan on a transitional basis. A
transitional approval under this paragraph is considered to be a
written determination that the local plan is not
approved under paragraph (b) of this section.
Sec. 661.355 When must a local plan be modified?
The Governor must establish procedures governing the modification
of local plans. Situations in which modifications may be required by
the Governor include significant changes in local economic conditions,
changes in the financing available to support WIA title I and partner-
provided WIA services, changes to the Local Board structure, or a need
to revise strategies to meet performance goals.
Subpart D--Waivers and Work-Flex Waivers
Sec. 661.400 What is the purpose of the General Statutory and
Regulatory Waiver Authority provided at section 189(i)(4) of the
Workforce Investment Act?
(a) The purpose of the general statutory and regulatory waiver
authority is to provide flexibility to States and local areas and
enhance their ability to improve the statewide workforce investment
system.
(b) A waiver may be requested to address impediments to the
implementation of a strategic plan, including the continuous
improvement strategy, consistent with the key reform principles of WIA.
These key reform principles include:
(1) Streamlining services and information to participants through a
One-Stop delivery system;
(2) Empowering individuals to obtain needed services and
information to enhance their employment opportunities;
(3) Ensuring universal access to core employment-related services;
(4) Increasing accountability of States, localities and training
providers for performance outcomes;
(5) Establishing a stronger role for Local Boards and the private
sector;
(6) Providing increased State and local flexibility to implement
innovative and comprehensive workforce investment systems; and
(7) Improving youth programs through services which emphasize
academic and occupational learning.
Sec. 661.410 What provisions of WIA and the Wagner-Peyser Act may be
waived, and what provisions may not be waived?
(a) The Secretary may waive any of the statutory or regulatory
requirements of subtitles B and E of title I of WIA, except for
requirements relating to:
(1) Wage and labor standards;
(2) Non-displacement protections;
(3) Worker rights;
(4) Participation and protection of workers and participants;
(5) Grievance procedures and judicial review;
(6) Nondiscrimination;
(7) Allocation of funds to local areas;
(8) Eligibility of providers or participants;
(9) The establishment and functions of local areas and local
boards;
(10) Procedures for review and approval of State and Local plans;
and
(b) The Secretary may waive any of the statutory or regulatory
requirements of sections 8 through 10 of the Wagner-Peyser Act (29
U.S.C. 49g-49i) except for requirements relating to:
(1) The provision of services to unemployment insurance claimants
and veterans; and
(2) Universal access to the basic labor exchange services without
cost to job seekers.
(c) The Secretary does not intend to waive any of the statutory or
regulatory provisions essential to the key reform principles embodied
in the Workforce Investment Act, described in Sec. 661.400, except in
extremely unusual circumstances where the provision can be demonstrated
as impeding reform. (WIA sec. 189(i).)
Sec. 661.420 Under what conditions may a Governor request, and the
Secretary approve, a general waiver of statutory or regulatory
requirements under WIA section 189(i)(4)?
(a) A Governor may request a general waiver in consultation with
appropriate chief elected officials:
(1) By submitting a waiver plan which may accompany the State's WIA
5-year strategic Plan; or
(2) After a State's WIA Plan is approved, by directly submitting a
waiver plan.
(b) A Governor's waiver request may seek waivers for the entire
State or for one or more local areas.
(c) A Governor requesting a general waiver must submit to the
Secretary a plan to improve the Statewide workforce investment system
that:
(1) Identifies the statutory or regulatory requirements for which a
waiver is requested and the goals that the State or local area, as
appropriate, intends to achieve as a result of the waiver and how those
goals relate to the Strategic Plan goals;
(2) Describes the actions that the State or local area, as
appropriate, has undertaken to remove State or local statutory or
regulatory barriers;
(3) Describes the goals of the waiver and the expected programmatic
outcomes if the request is granted;
(4) Describes the individuals affected by the waiver; and
(5) Describes the processes used to:
(i) Monitor the progress in implementing the waiver;
(ii) Provide notice to any Local Board affected by the waiver;
(iii) Provide any Local Board affected by the waiver an opportunity
to comment on the request; and
(iv) Ensure meaningful public comment, including comment by
business and organized labor, on the waiver.
(d) The Secretary issues a decision on a waiver request within 90
days after the receipt of the original waiver request.
(e) The Secretary will approve a waiver request if and only to the
extent that:
(1) The Secretary determines that the requirements for which a
waiver is requested impede the ability of either the State or local
area to implement the State's plan to improve the Statewide workforce
investment system;
(2) The Secretary determines that the waiver plan meets all of the
requirements of WIA section 189(i)(4) and Secs. 661.400 through
661.420; and
(3) The State has executed a Memorandum of Understanding with the
Secretary requiring the State to meet, or ensure that the local area
meets, agreed-upon outcomes and to implement other appropriate measures
to ensure accountability.
(f) The Secretary will issue guidelines under which the States may
request general waivers of WIA and Wagner-Peyser requirements. (WIA
sec. 189(i).)
Sec. 661.430 Under what conditions may the Governor submit a Workforce
Flexibility Plan?
(a) A State may submit to the Secretary, and the Secretary may
approve, a workforce flexibility (work-flex) plan under which the State
is authorized to waive, in accordance with the plan:
(1) Any of the statutory or regulatory requirements under title I
of WIA applicable to local areas, if the local area requests the waiver
in a waiver application, except for:
(i) Requirements relating to the basic purposes of title I of WIA;
(ii) Wage and labor standards;
(iii) Grievance procedures and judicial review;
(iv) Nondiscrimination;
(v) Eligibility of participants;
(vi) Allocation of funds to local areas;
(vii) Establishment and functions of local areas and local boards;
(viii) Review and approval of local plans;
(ix) Worker rights, participation, and protection; and
(x) Any of the statutory provisions essential to the key reform
principles
embodied in the Workforce Investment Act, described in Sec. 661.400.
(2) Any of the statutory or regulatory requirements applicable to
the State under section 8 through 10 of the Wagner-Peyser Act (29
U.S.C. 49g-49i), except for requirements relating to:
(i) The provision of services to unemployment insurance claimants
and veterans; and
(ii) Universal access to basic labor exchange services without cost
to job seekers; and
(3) Any of the statutory or regulatory requirements under the Older
Americans Act of 1965 (OAA) (42 U.S.C. 3001 et seq.), applicable to
State agencies on aging with respect to activities carried out using
funds allotted under OAA section 506(a)(3) (42 U.S.C. 3056d(a)(3)),
except for requirements relating to:
(i) The basic purposes of OAA;
(ii) Wage and labor standards;
(iii) Eligibility of participants in the activities; and
(iv) Standards for agreements.
(b) A State's workforce flexibility plan may accompany the State's
five-year Strategic Plan or may be submitted separately. If it is
submitted separately, the workforce flexibility plan must identify
related provisions in the State's five-year Strategic Plan.
(c) A workforce flexibility plan submitted under paragraph (a) of
this section must include descriptions of:
(1) The process by which local areas in the State may submit and
obtain State approval of applications for waivers;
(2) The statutory and regulatory requirements of title I of WIA
that are likely to be waived by the State under the workforce
flexibility plan;
(3) The statutory and regulatory requirements of sections 8 through
10 of the Wagner-Peyser Act that are proposed for waiver, if any;
(4) The statutory and regulatory requirements of the Older
Americans Act of 1965 that are proposed for waiver, if any;
(5) The outcomes to be achieved by the waivers described in
paragraphs (c)(1) to (4) of this section including, where appropriate,
revisions to adjusted levels of performance included in the State or
local plan under title I of WIA; and
(6) The measures to be taken to ensure appropriate accountability
for Federal funds in connection with the waivers.
(d) The Secretary may approve a workforce flexibility plan for a
period of up to five years.
(e) Before submitting a workforce flexibility plan to the Secretary
for approval, the State must provide adequate notice and a reasonable
opportunity for comment on the proposed waiver requests under the
workforce flexibility plan to all interested parties and to the general
public.
(f) The Secretary will issue guidelines under which States may
request designation as a work-flex State.
Sec. 661.440 What limitations apply to the State's Workforce
Flexibility Plan authority under WIA?
(a)(1) Under work-flex waiver authority a State must not waive the
WIA, Wagner-Peyser or Older Americans Act requirements which are
excepted from the work-flex waiver authority and described in
Sec. 661.430(a).
(2) Requests to waive statutory and regulatory requirements of
title I of WIA applicable at the State level may not be granted under
work-flex waiver authority granted to a State. Such requests may only
be granted by the Secretary under the general waiver authority
described at Secs. 661.410 through 661.420.
(b) As required in Sec. 661.430(c)(5), States must address the
outcomes to result from work-flex waivers as part of its workforce
flexibility plan. Once approved, a State's work-flex designation is
conditioned on the State demonstrating it has met the agreed-upon
outcomes contained in its workforce flexibility plan.