‘‘(D) receives or is eligible to receive free 
or reduced price lunch under the Richard B. 
Russell National School Lunch Act (42 U.S.C. 
1751 et seq.);’’; 
(9) in paragraph (31) (as so redesignated) by 
striking ‘‘the Republic of the Marshall Islands, the 
Federated States of Micronesia,’’; and 
(10) by striking paragraph (33) and redesig-
nating paragraphs (34) through (53) as paragraphs 
(32) through (51), respectively. 
SEC. 102. PURPOSE. 
Section 106 (29 U.S.C. 2811) is amended by insert-
ing at the end the following: ‘‘It is also the purpose of 
this subtitle to provide workforce investment activities in 
a manner that promotes the informed choice of partici-
pants and actively involves participants in decisions affect-
ing their participation in such activities.’’. 
SEC. 103. STATE WORKFORCE INVESTMENT BOARDS. 
(a) MEMBERSHIP.— 
(1) IN GENERAL.—Section 111(b) (29 U.S.C. 
2821(b)) is amended— 
(A) by amending paragraph (1)(C) to read 
as follows: 
‘‘(C) representatives appointed by the Gov-
ernor, who are—
‘‘(i)(I) the lead State agency officials 
with responsibility for the programs and 
activities that are described in section 
121(b) and carried out by one-stop part-
ners; 
‘‘(II) in any case in which no lead 
State agency official has responsibility for 
such a program or activity, a representa-
tive in the State with expertise relating to 
such program or activity; and 
‘‘(III) if not included under subclause 
(I), the director of the State unit, defined 
in section 7(8)(B) of the Rehabilitation 
Act of 1973 (29 U.S.C. 705(8)(B)) except 
that in a State that has established 2 or 
more designated State units to administer 
the vocational rehabilitation program, the 
board representative shall be the director 
of the designated State unit that serves the 
most individuals with disabilities in the 
State; 
‘‘(ii) the State agency officials respon-
sible for economic development; 
‘‘(iii) representatives of business in 
the State who—
‘‘(I) are owners of businesses, 
chief executive or operating officers of 
businesses, and other business execu-
tives or employers with optimum pol-
icy making or hiring authority, includ-
ing members of local boards described 
in section 117(b)(2)(A)(i); 
‘‘(II) represent businesses with 
employment opportunities that reflect 
employment 
opportunities 
in 
the 
State; and 
‘‘(III) are appointed from among 
individuals nominated by State busi-
ness organizations and business trade 
associations; 
‘‘(iv) chief elected officials (rep-
resenting both cities and counties, where 
appropriate); 
‘‘(v) representatives of labor organiza-
tions, who have been nominated by State 
labor federations; and 
‘‘(vi) such other representatives and 
State agency officials as the Governor may 
designate.’’; and
(B) in paragraph (3), by striking ‘‘para-
graph (1)(C)(i)’’ and inserting ‘‘paragraph 
(1)(C)(iii)’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
111(c) (29 U.S.C 2811(c)) is amended by striking 
‘‘subsection (b)(1)(C)(i)’’ and inserting ‘‘subsection 
(b)(1)(C)(iii)’’. 
(b) 
FUNCTIONS.—Section 
111(d) 
(29 
U.S.C. 
2811(d)) is amended— 
(1) in paragraph (2), by striking ‘‘section 
134(c)’’ and inserting ‘‘section 121(e)’’; 
(2) by amending paragraph (3) to read as fol-
lows: 
‘‘(3) development and review of statewide poli-
cies affecting the integrated provision of services 
through the one-stop delivery system described in 
section 121, including— 
‘‘(A) the development of criteria for, and 
the issuance of, certifications of one-stop cen-
ters; 
‘‘(B) the criteria for the allocation of one- 
stop center infrastructure funding under section 
121(h), and oversight of the use of such funds;
‘‘(C) approaches to facilitating equitable 
and efficient cost allocation in one-stop delivery 
systems; and 
‘‘(D) such other matters that may promote 
statewide objectives for, and enhance the per-
formance of, one-stop delivery systems within 
the State;’’; 
(3) in paragraph (4), by inserting ‘‘and the de-
velopment of State criteria relating to the appoint-
ment and certification of local boards under section 
117’’ after ‘‘section 116’’; 
(4) in paragraph (5), by striking ‘‘sections 
128(b)(3)(B) and 133(b)(3)(B)’’ and inserting ‘‘sec-
tions 128(b)(3) and 133(b)(3)’’; and 
(5) in paragraph (9), by striking ‘‘section 503’’ 
and inserting ‘‘section 136(i)’’. 
(c) ELIMINATION
OF ALTERNATIVE ENTITY
AND 
PROVISION
OF AUTHORITY
TO HIRE STAFF.—Section 
111(e) (29 U.S.C. 2821(e)) is amended to read as follows: 
‘‘(e) AUTHORITY TO HIRE STAFF.—The State board 
may hire staff to assist in carrying out the functions de-
scribed in subsection (d).’’.
SEC. 104. STATE PLAN. 
(a) PLANNING CYCLE.—Section 112(a) (29 U.S.C. 
2822(a)) is amended by striking ‘‘5-year strategy’’ and in-
serting ‘‘2-year strategy’’. 
(b) CONTENTS.—Section 112(b) (29 U.S.C. 2822(b)) 
is amended— 
(1) in paragraph (12)(A), by striking ‘‘sections 
128(b)(3)(B) and 133(b)(3)(B)’’ and inserting ‘‘sec-
tions 128(b)(3) and 133(b)(3)’’; 
(2) in paragraph (14), by striking ‘‘section 
134(c)’’ and inserting ‘‘section 121(e)’’; 
(3) in paragraph (17)(A) 
(A) in clause (iii) by striking ‘‘and’’; 
(B) by amending clause (iv) to read as fol-
lows: 
‘‘(iv) how the State will serve the em-
ployment and training needs of dislocated 
workers (including displaced homemakers 
and 
formerly 
self-employed 
and 
transitioning farmers, ranchers, and fisher-
man) low income individuals (including re-
cipients of public assistance), homeless in-
dividuals, ex-offenders, individuals training 
for nontraditional employment, and other 
individuals with multiple barriers to em-
ployment (including older individuals);’’; 
and 
(C) by adding the following new clause 
after clause (iv): 
‘‘(v) how the State will serve the em-
ployment and training needs of individuals 
with disabilities, consistent with section 
188 and Executive Order 13217 (42 
U.S.C. 12131 note; relating to community- 
based alternatives for individuals with dis-
abilities) including the provision of out-
reach, intake, assessments, and service de-
livery, the development of performance 
measures, and the training of staff;’’; 
(4) in paragraph (18)(D), by striking ‘‘youth 
opportunity grants’’ and inserting ‘‘youth challenge 
grants’’; and 
(5) by adding at the end the following new 
paragraphs: 
‘‘(19) a description of the methodology for de-
termining one-stop partner program contributions 
for the cost of the infrastructure of one-stop centers 
under section 121(h)(1) and of the formula for allo-
cating such infrastructure funds to local areas under 
section 121(h)(3); and
‘‘(20) a description of any programs and strate-
gies the State will utilize to meet the needs of busi-
nesses in the State, including small businesses, 
which may include providing incentives and technical 
assistance to assist local areas in engaging employ-
ers in local workforce development activities.’’. 
(c) MODIFICATION TO PLAN.—Section 112(d) (29 
U.S.C. 2822(d)) is amended by striking ‘‘5-year period’’ 
and inserting ‘‘2-year period’’. 
SEC. 105. LOCAL WORKFORCE INVESTMENT AREAS. 
(a) DESIGNATION OF AREAS.— 
(1) CONSIDERATIONS.—Section 116(a)(1)(B) 
(29 U.S.C. 2831(a)(1)(B)) is amended by adding at 
the end the following clause: 
‘‘(vi) The extent to which such local 
areas will promote efficiency in the admin-
istration and provision of services.’’. 
(2) 
AUTOMATIC
DESIGNATION.—Section 
116(a)(2) (29 U.S.C. 2831(a)(2)) is amended to 
read as follows: 
‘‘(2) AUTOMATIC DESIGNATION.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B) of this paragraph and sub-
section (b), the Governor shall approve a re-
quest for designation as a local area from—
‘‘(i) any unit of general local govern-
ment with a population of 500,000 or 
more; and 
‘‘(ii) an area served by a rural con-
centrated employment program grant re-
cipient that served as a service delivery 
area or substate area under the Job Train-
ing Partnership Act (29 U.S.C. 1501 et 
seq.), 
for the 2-year period covered by a State plan 
under section 112 if such request is made not 
later than the date of the submission of the 
State plan. 
‘‘(B) CONTINUED DESIGNATION BASED ON 
PERFORMANCE.—The Governor may deny a re-
quest for designation submitted pursuant to 
subparagraph (A) if such unit of government 
was designated as a local area for the preceding 
2-year period covered by a State plan and the 
Governor determines that such local area did 
not perform successfully during such period.’’. 
(b) REGIONAL PLANNING.—Section 116(c)(1) (29 
U.S.C. 2831(c)(1)) is amended by adding at the end the 
following: ‘‘The State may require the local boards for the 
designated region to prepare a single regional plan that
incorporates the elements of the local plan under section 
118 and that is submitted and approved in lieu of separate 
local plans under such section.’’. 
SEC. 106. LOCAL WORKFORCE INVESTMENT BOARDS. 
(a) COMPOSITION.—Section 117(b)(2)(A) (29 U.S.C. 
2832(b)(2)(A)) is amended— 
(1) in clause (i)(II), by inserting ‘‘, businesses 
that are in the leading industries in the local area, 
and large and small businesses in the local area’’ 
after ‘‘local area’’; 
(2) by amending clause (ii) to read as follows: 
‘‘(ii) a superintendent of the local secondary school 
system, an administrator of an entity providing adult edu-
cation and literacy activities that is not a one-stop partner 
designated under section 121(b)(1)(B), and the president 
or chief executive officer of a postsecondary educational 
institution serving the local area (including community 
colleges, where such entities exist);’’; 
(3) in clause (iv), by striking the semicolon and 
inserting ‘‘and faith-based organizations; and’’; and 
(4) by striking clause (vi). 
(b) AUTHORITY
OF
BOARD
MEMBERS.—Section 
117(b)(3) (29 U.S.C. 2832(b) is amended— 
(1) in the heading, by inserting ‘‘AND
REP-
RESENTATION’’ after ‘‘MEMBERS’’; and
(2) by adding at the end the following: ‘‘The 
members of the board shall represent diverse geo-
graphic sections within the local area.’’. 
(c) 
FUNCTIONS.—Section 
117(d) 
(29 
U.S.C. 
2832(d)) is amended— 
(1) in paragraph (2)(B), by striking ‘‘local 
area’’ and all that follows and inserting ‘‘local 
area.’’; and 
(2) in paragraph (4) by inserting ‘‘and ensure 
the appropriate use and management of the funds 
provided under this title for such programs, activi-
ties, and system’’ after ‘‘area’’. 
(d) AUTHORITY
TO
ESTABLISH
COUNCILS
AND 
ELIMINATION
OF REQUIREMENT
FOR YOUTH COUN-
CILS.—Section 117(h) (29 U.S.C. 2832(h)) is amended to 
read as follows: 
‘‘(h) ESTABLISHMENT
OF COUNCILS.—The local 
board may establish councils to provide information and 
advice to assist the local board in carrying out activities 
under this title. Such councils may include a council com-
posed of one-stop partners to advise the local board on 
the operation of the one-stop delivery system, a youth 
council composed of experts and stakeholders in youth 
programs to advise the local board on activities for youth,
and such other councils as the local board determines are 
appropriate.’’. 
(e) REPEAL OF ALTERNATIVE ENTITY PROVISION.— 
Section 117 (29 U.S.C. 2832) is further amended by strik-
ing subsection (i). 
SEC. 107. LOCAL PLAN. 
(a) PLANNING CYCLE.—Section 118(a) (29 U.S.C. 
2833(a)) is amended by striking ‘‘5-year’’ and inserting 
‘‘2-year’’. 
(b) CONTENTS.—Section 118(b) (29 U.S.C. 2833(b)) 
is amended— 
(1) by amending paragraph (2) to read as fol-
lows: 
‘‘(2) a description of the one-stop delivery sys-
tem to be established or designated in the local area, 
including a description of how the local board will 
ensure the continuous improvement of eligible pro-
viders of services through the system and ensure 
that such providers meets the employment needs of 
local employers and participants.’’; 
(2) in paragraph (4), by striking ‘‘and dis-
located worker’’; 
(3) by redesignating paragraph (10) as para-
graph (11); and