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ness organizations, business trade asso-
ciations, and local boards;
‘‘(iv) are chief elected officials (rep-
resenting cities and counties, where appro-
priate);
‘‘(v) are representatives of labor orga-
nizations, who have been nominated by
State labor federations; and
‘‘(vi) are such other State agency offi-
cials and other representatives as the Gov-
ernor 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. 2821(c)) is amended by striking ‘‘sub-
section 
(b)(1)(C)(i)’’ 
and 
inserting 
‘‘subsection
(b)(1)(C)(iii)’’.
(b) FUNCTIONS.—Section 111(d) (29 U.S.C. 2821(d))
is amended—
(1) in paragraph (1), by striking ‘‘development’’
and inserting ‘‘development, implementation, and re-
vision’’;
(2) in paragraph (2)—
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(A) by striking ‘‘section 134(c)’’ and insert-
ing ‘‘section 121(e)’’; and
(B) in subparagraph (A), by inserting after
‘‘section 121(b)’’ the following: ‘‘, including
granting the authority for the State employment
service under the Wagner-Peyser Act (29 U.S.C.
49 et seq.) to plan and coordinate employment
and training activities with local boards’’;
(3) by striking paragraph (3) and inserting the
following:
‘‘(3) reviewing and providing comment on the
State plans of all one-stop partner programs, where
applicable, in order to provide effective strategic lead-
ership in the development of a high quality, com-
prehensive statewide workforce investment system, in-
cluding commenting at least once annually on the
measures taken pursuant to section 113(b)(3) of the
Carl D. Perkins Vocational and Technical Education
Act of 1998 (20 U.S.C. 2323(b)(3)) and title II of this
Act;’’;
(4) by redesignating paragraphs (4) through (9)
as paragraphs (5) through (10), respectively;
(5) by inserting after paragraph (3) the fol-
lowing:
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‘‘(4) development and review of statewide policies
affecting the coordinated provision of services through
the one-stop delivery system described in section
121(e) within the State, including—
‘‘(A) the development of objective criteria
and procedures for use by local boards in assess-
ing the effectiveness and continuous improvement
of one-stop centers under section 121(g);
‘‘(B) the development of guidance for the al-
location of one-stop center infrastructure funds
under section 121(h)(1)(B);
‘‘(C) the development of—
‘‘(i) statewide policies relating to the
appropriate roles and contributions of one-
stop partner programs within the one-stop
delivery system, including approaches to fa-
cilitating equitable and efficient cost alloca-
tion in the one-stop delivery system;
‘‘(ii) statewide strategies for providing
effective outreach to individuals, including
hard-to-serve populations, and employers
who could benefit from services provided
through the one-stop delivery system;
‘‘(iii) strategies for technology improve-
ments to facilitate access to services pro-
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vided through the one-stop delivery system,
in remote areas, and for individuals with
disabilities, which may be utilized through-
out the State; and
‘‘(iv) strategies for the effective coordi-
nation of activities between the one-stop de-
livery system of the State and the State em-
ployment service under the Wagner-Peyser
Act (29 U.S.C. 49 et seq.);
‘‘(D) identification and dissemination of in-
formation on best practices for effective operation
of one-stop centers, including use of innovative
business outreach, partnerships, and service de-
livery strategies, including for hard-to-serve pop-
ulations; and
‘‘(E) conduct of such other matters as may
promote statewide objectives for, and enhance the
performance of, the one-stop delivery system;’’;
(6) in paragraph (5) (as redesignated by para-
graph (4)), by inserting ‘‘and the development of
statewide criteria to be used by chief elected officials
for the appointment of local boards consistent with
section 117’’ after ‘‘section 116’’;
(7) in paragraph (6) (as redesignated by para-
graph (4)), by striking ‘‘sections 128(b)(3)(B) and
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133(b)(3)(B)’’ and inserting ‘‘sections 128(b)(3) and
133(b)(3)(B)’’;
(8) in paragraph (9) (as redesignated by para-
graph (4))—
(A) by striking ‘‘employment statistics sys-
tem’’ and inserting ‘‘workforce and labor market
information system’’; and
(B) by striking ‘‘and’’ after the semicolon;
(9) in paragraph (10) (as redesignated by para-
graph (4))—
(A) by inserting ‘‘section 136(i) and’’ before
‘‘section 503’’; and
(B) by striking the period and inserting ‘‘;
and’’; and
(10) by adding at the end the following:
‘‘(11) increasing the availability of skills train-
ing, employment opportunities, and career advance-
ment, for hard-to-serve populations.’’.
(c) ALTERNATIVE ENTITY.—Section 111(e) (29 U.S.C.
2821(e)) is amended—
(1) in paragraph (1), by striking ‘‘For’’ and in-
serting ‘‘Subject to paragraph (3), for’’; and
(2) by adding at the end the following:
‘‘(3) FAILURE
TO
MEET
PERFORMANCE
MEAS-
URES.—If a State fails to have performed successfully,
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as defined in section 116(a)(2), the Secretary may re-
quire the State to establish a State board in accord-
ance with subsections (a), (b), and (c) in lieu of the
alternative entity established under paragraph (1).’’.
(d) CONFLICT OF INTEREST.—Section 111(f)(1) (29
U.S.C. 2821(f)(1)) is amended by inserting ‘‘or participate
in action taken’’ after ‘‘vote’’.
(e) SUNSHINE PROVISION.—Section 111(g) (29 U.S.C.
2821(g)) is amended—
(1) by inserting ‘‘, and modifications to the
State plan,’’ before ‘‘prior’’; and
(2) by inserting ‘‘, and modifications to the
State plan’’ after ‘‘the plan’’.
(f) AUTHORITY TO HIRE STAFF.—Section 111 (29
U.S.C. 2821) is amended by adding at the end the following:
‘‘(h) AUTHORITY TO HIRE STAFF.—
‘‘(1) IN GENERAL.—The State board may hire
staff to assist in carrying out the functions described
in subsection (d) using funds allocated under sections
127(b)(1)(C) and 132(b).
‘‘(2) LIMITATION ON RATE.—Funds appropriated
under this title shall not be used to pay staff em-
ployed by the State board, either as a direct cost or
through any proration as an indirect cost, at a rate
in excess of the maximum rate payable for a position
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at GS–15 of the General Schedule as in effect on the
date of enactment of the Workforce Investment Act
Amendments of 2005.’’.
SEC. 113. STATE PLAN.
(a) PLANNING CYCLE.—Section 112(a) (29 U.S.C.
2822(a)) is amended—
(1) by inserting ‘‘, or a State unified plan as de-
scribed in section 501,’’ before ‘‘that outlines’’;
(2) by striking ‘‘5-year strategy’’ and inserting
‘‘4-year strategy’’; and
(3) by adding at the end the following: ‘‘At the
end of the first 2-year period of the 4-year State plan,
the State board shall review and, as needed, amend
the 4-year State plan to reflect labor market and eco-
nomic conditions. In addition, the State shall submit
a modification to the State plan at the end of the first
2-year period of the State plan, which may include
redesignation of local areas pursuant to section
116(a) and specification of the levels of performance
under sections 136 for the third and fourth years of
the plan.’’.
(b) CONTENTS.—Section 112(b) (29 U.S.C. 2822(b)) is
amended—
(1) in paragraph (8)(A)—
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(A) in clause (ix), by striking ‘‘and’’ after
the semicolon; and
(B) by adding at the end the following:
‘‘(xi) programs authorized under title II of
the Social Security Act (42 U.S.C. 401 et seq.)
(relating to Federal old-age, survivors, and dis-
ability insurance benefits), title XVI of such Act
(42 U.S.C. 1381 et seq.) (relating to supple-
mental security income), title XIX of such Act
(42 U.S.C. 1396 et seq.) (relating to medicaid),
and title XX of such Act (42 U.S.C. 1397 et seq.)
(relating to block grants to States for social serv-
ices), programs authorized under title VII of the
Rehabilitation Act of 1973 (29 U.S.C. 796 et
seq.), and programs carried out by State agen-
cies relating to mental retardation and develop-
mental disabilities; and’’;
(2) by striking paragraph (10) and inserting the
following:
‘‘(10) a description of how the State will use
funds the State received under this subtitle to leverage
other Federal, State, local, and private resources, in
order to maximize the effectiveness of such resources,
expand resources for the provision of education and
training services, and expand the participation of
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businesses, employees, and individuals in the state-
wide workforce investment system, including a de-
scription of incentives and technical assistance the
State will provide to local areas for such purposes;’’;
(3) 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)(B)’’;
(4) in paragraph (14), by striking ‘‘section
134(c)’’ and inserting ‘‘section 121(e)’’;
(5) in paragraph (15), by striking ‘‘section
116(a)(5)’’ and inserting ‘‘section 116(a)(4)’’;
(6) in paragraph (17)—
(A) in subparagraph (A)—
(i) in clause (iii)—
(I) by inserting ‘‘local’’ before
‘‘customized training’’; and
(II) by striking ‘‘and’’ at the end;
(ii) in clause (iv), by striking ‘‘(in-
cluding displaced homemakers),’’ and all
that follows through ‘‘disabilities)’’ and in-
serting ‘‘, hard-to-serve populations, and in-
dividuals training for nontraditional em-
ployment’’; and
(iii) by adding after clause (iv) the fol-
lowing:
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‘‘(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 al-
ternatives for individuals with disabilities),
including the provision of outreach, intake,
the conduct of assessments, service delivery,
the development of adjustments to perform-
ance measures established under section
136, and the training of staff; and’’; and
(B) in subparagraph (B), by striking ‘‘and’’
at the end;
(7) in paragraph (18)(D)—
(A) by striking ‘‘youth opportunity grants
under section 169’’ and inserting ‘‘youth chal-
lenge grants authorized under section 169 and
other federally funded youth programs’’; and
(B) by striking the period and inserting a
semicolon; and
(8) by adding at the end the following:
‘‘(19) a description of how the State will utilize
technology to facilitate access to services in remote
areas, which may be utilized throughout the State;
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‘‘(20) a description of the State strategy for co-
ordinating workforce investment activities and eco-
nomic development activities, and promoting entre-
preneurial skills training and microenterprise serv-
ices;
‘‘(21) a description of the State strategy and as-
sistance to be provided for ensuring regional coopera-
tion within the State and across State borders as ap-
propriate;
‘‘(22) a description of how the State will use
funds the State receives under this subtitle to—
‘‘(A) implement innovative programs and
strategies designed to meet the needs of all busi-
nesses in the State, including small businesses,
which may include incumbent worker training
programs, sectoral and industry cluster strate-
gies, regional skills alliances, career ladder pro-
grams, utilization of effective business inter-
mediaries, and other business services and strate-
gies that better engage employers in workforce
investment activities and make the statewide
workforce investment system more relevant to the
needs of State and local businesses, consistent
with the objectives of this title; and
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‘‘(B) provide incentives and technical as-
sistance to assist local areas in more fully engag-
ing all employers, including small employers, in
local workforce investment activities, to make the
workforce investment system more relevant to the
needs of area businesses, and to better coordinate
workforce investment and economic development
efforts to contribute to the economic well-being of
the local area, as determined appropriate by the
local board;
‘‘(23) a description of the State strategy—
‘‘(A) for ensuring cooperation between
transportation providers, including public trans-
portation providers, and providers of workforce
investment activities; and
‘‘(B) for ensuring coordination among ap-
propriate State agencies and programs to make
available skills training, employment services
and opportunities, and career advancement ac-
tivities, that will assist ex-offenders in reentering
the workforce;
‘‘(24) a description of how the State will assist
local areas in assuring physical and programmatic
accessibility for individuals with disabilities at one-
stop centers;
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‘‘(25) a description of the process and method-
ology that will be used by the State board to—
‘‘(A) review statewide policies and provide
guidance on the coordinated provision of services
through the one-stop delivery system described in
section 121(e);
‘‘(B) establish, in consultation with chief
elected officials and local boards, objective cri-
teria and procedures for use by local boards in
periodically assessing the effectiveness, physical
and programmatic accessibility, and continuous
improvement of one-stop centers and the one-stop
delivery system as described in section 121(g);
and
‘‘(C) determine—
‘‘(i) one-stop partner program con-
tributions for the costs of the infrastructure
of one-stop centers under section 121(h)(2);
and
‘‘(ii) the formula for allocating the
funds described in section 121(h)(2) to local
areas;
‘‘(26) a description of the State strategy for en-
suring that activities carried out under this title are
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placing men and women in jobs, education, or train-
ing that lead to comparable pay; and
‘‘(27) a description of the technical assistance
available to one-stop operators and providers of train-
ing services for strategies to serve hard-to-serve popu-
lations and promote placement in nontraditional em-
ployment.’’.
(c) MODIFICATIONS
TO PLAN.—Section 112(d) (29
U.S.C. 2822(d)) is amended—
(1) by striking ‘‘5-year period’’ and inserting
‘‘4-year period’’; and
(2) by adding at the end the following: ‘‘In addi-
tion, the State shall submit the modifications to the
State plan required under subsection (a), under cir-
cumstances prescribed by the Secretary that are due
to changes in Federal law that significantly affect ele-
ments of the State plan.’’.
SEC. 114. LOCAL WORKFORCE INVESTMENT AREAS.
(a) DESIGNATION OF AREAS.—
(1) CONSIDERATIONS.—Section 116(a)(1) (29
U.S.C. 2831(a)(1)) is amended—
(A) in subparagraph (A), by striking
‘‘paragraphs (2), (3), and (4)’’ and inserting
‘‘paragraphs (2) and (3)’’; and
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(B) in subparagraph (B), by adding at the
end the following:
‘‘(vi) The extent to which such local
areas will promote maximum effectiveness
in the administration and provision of serv-
ices.’’.
(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.—The Governor shall ap-
prove a request for designation as a local area
that is submitted prior to the submission of the
State plan, or of a modification to the State
plan relating to area designation, from any area
that—
‘‘(i) is a unit of general local govern-
ment with a population of 500,000 or more,
except that after the initial 2-year period
following such designation pursuant to this
clause that occurs after the date of enact-
ment of the Workforce Investment Act
Amendments of 2005, the Governor shall
only be required to approve a request for
designation from such area if such area—
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‘‘(I) performed successfully; and
‘‘(II) sustained fiscal integrity;
‘‘(ii) was a local area under this title
for the preceding 2-year period (prior to the
date of approval), if such local area—
‘‘(I) performed successfully; and
‘‘(II) sustained fiscal integrity;
‘‘(iii) is served by a rural concentrated
employment program grant recipient, ex-
cept that after the initial 2-year period fol-
lowing any such designation under the ini-
tial State plan submitted after the date of
enactment of the Workforce Investment Act
Amendments of 2005, the Governor shall
only be required to approve a request for
designation under this clause for such area
if such area—
‘‘(I) performed successfully; and
‘‘(II) sustained fiscal integrity; or
‘‘(iv) was a local area under section
116(a)(2)(C) (as in effect on the day before
the date of enactment of the Workforce In-
vestment Act Amendments of 2005), except
that after the initial 2-year period following
such designation pursuant to this clause
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that occurs after that date of enactment, the
Governor shall only be required to approve
a request for designation under this clause
for such area if such area—
‘‘(I) performed successfully; and
‘‘(II) sustained fiscal integrity.
‘‘(B) DEFINITIONS.—For purposes of this
paragraph:
‘‘(i) PERFORMED SUCCESSFULLY.—The
term ‘performed successfully’, when used
with respect to a local area, means the local
area performed at 80 percent or more of the
adjusted level of performance for core indi-
cators of performance described in section
136(b)(2)(A) for 2 consecutive years.
‘‘(ii) SUSTAINED FISCAL INTEGRITY.—
The term ‘sustained fiscal integrity’, used
with respect to an area, means that the Sec-
retary has not made a formal determination
during the preceding 2-year period that ei-
ther the grant recipient or the administra-
tive entity of the area misexpended funds
provided under this title due to willful dis-
regard of the requirements of the Act in-
volved, gross negligence, or failure to comply
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with accepted standards of administra-
tion.’’.
(3) CONFORMING AMENDMENTS.—Section 116(a)
(29 U.S.C. 2831(a)) is amended—
(A) by striking paragraph (3);
(B) by redesignating paragraphs (4) and
(5) as paragraph (3) and (4), respectively;
(C) in paragraph (3) (as redesignated by
subparagraph (B))—
(i) by striking ‘‘(including temporary
designation)’’; and
(ii) by striking ‘‘(v)’’ and inserting
‘‘(vi)’’; and
(D) in paragraph (4) (as redesignated by
subparagraph (B))—
(i) by striking ‘‘under paragraph (2)
or (3)’’ and inserting ‘‘under paragraph
(2)’’; and
(ii) by striking the second sentence.
(b) SINGLE LOCAL AREA STATES.—Section 116(b) (29
U.S.C. 2831(b)) is amended to read as follows:
‘‘(b) SINGLE LOCAL AREA STATES.—
‘‘(1) CONTINUATION
OF
PREVIOUS
DESIGNA-
TION.—Notwithstanding subsection (a)(2), the Gov-
ernor of any State that was a single local area for
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purposes of this title as of July 1, 2004, may continue
to designate the State as a single local area for pur-
poses of this title if the Governor identifies the State
as a local area in the State plan under section
112(b)(5).
‘‘(2) REDESIGNATION.—The Governor of a State
not described in paragraph (1) may designate the
State as a single local area if, prior to the submission
of the State plan or modification to such plan so des-
ignating the State, no local area meeting the require-
ments for automatic designation under subsection
(a)(2) requests such designation as a separate local
area.
‘‘(3) EFFECT ON LOCAL PLAN.—In any case in
which a State is designated as a local area pursuant
to this subsection, the local plan prepared under sec-
tion 118 for the area shall be submitted to the Sec-
retary for approval as part of the State plan under
section 112.’’.
(c) REGIONAL PLANNING.—Section 116(c) (29 U.S.C.
2831(c)) is amended—
(1) by striking paragraph (1) and inserting the
following:
‘‘(1) PLANNING.—
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‘‘(A) IN GENERAL.—As part of the process
for developing the State plan, a State may re-
quire regional planning by local boards for a
designated region in the State. The State may
require the local boards for a designated region
to participate in a regional planning process
that results in the establishment of regional per-
formance measures for workforce investment ac-
tivities authorized under this subtitle. The State,
after consultation with local boards and chief
elected officials, may require the local boards for
the designated region to prepare, submit, and ob-
tain approval of a single regional plan that in-
corporates local plans for each of the local areas
in the region, as required under section 118. The
State may award regional incentive grants to
the designated regions that meet or exceed the re-
gional performance measures pursuant to section
134(a)(2)(B)(iii).
‘‘(B) TECHNICAL ASSISTANCE.—If the State
requires regional planning as provided in sub-
paragraph (A), the State shall provide technical
assistance and labor market information to such
local areas in the designated regions to assist
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with such regional planning and subsequent
service delivery efforts.’’;
(2) in paragraph (2), by inserting ‘‘information
about the skill requirements of existing and emerging
industries and industry clusters,’’ after ‘‘information
about employment opportunities and trends,’’; and
(3) in paragraph (3), by adding at the end the
following: ‘‘Such services may be required to be co-
ordinated with regional economic development serv-
ices and strategies.’’.
SEC. 115. LOCAL WORKFORCE INVESTMENT BOARDS.
(a) 
COMPOSITION.—Section 
117(b) 
(29 
U.S.C.
2832(b)) is amended—
(1) in paragraph (2)(A)—
(A) in clause (i), by striking subclause (II)
and inserting the following:
‘‘(II) collectively, represent busi-
nesses with employment opportunities
that reflect the employment opportuni-
ties of the local area, and include rep-
resentatives of businesses that are in
high-growth and emerging industries,
and representatives of businesses, in-
cluding small businesses, in the local
area; and’’;
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(B) by striking clause (ii) and inserting the
following:
‘‘(ii)(I) a superintendent representing
the local school districts involved or another
high-level official from such districts;
‘‘(II) the president or highest ranking
official of an institution of higher education
participating in the workforce investment
activities in the local area; and
‘‘(III) an administrator of local enti-
ties providing adult education and literacy
activities in the local area;’’;
(C) in clause (iv), by inserting ‘‘, hard-to-
serve populations,’’ after ‘‘disabilities’’;
(D) in clause (v), by striking ‘‘and’’ at the
end; and
(E) by striking clause (vi) and inserting the
following:
‘‘(vi) a representative from the State
employment service under the Wagner-
Peyser Act (29 U.S.C. 49 et seq.) who is
serving the local area; and
‘‘(vii) if the local board does not estab-
lish or continue a youth council, representa-
tives with experience serving out-of-school
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youth, particularly out-of-school youth fac-
ing barriers to employment; and’’; and
(2) by adding at the end the following:
‘‘(6) SPECIAL RULE.—In the case that there are
multiple school districts or institutions of higher edu-
cation serving a local area, the representatives de-
scribed in subclause (I) or (II) of paragraph
(2)(A)(ii), respectively, shall be appointed from
among individuals nominated by regional or local
educational agencies, institutions, or organizations
representing such agencies or institutions.’’.
(b) AUTHORITY
OF
BOARD
MEMBERS.—Section
117(b)(3) (29 U.S.C. 2832(b)(3)) is amended—
(1) in the heading, by inserting ‘‘AND
REP-
RESENTATION’’ after ‘‘AUTHORITY’’; 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) CONFORMING AMENDMENT.—Section 117(c)(1)(C)
(29 U.S.C. 2832(c)(1)(C)) is amended by striking ‘‘section
116(a)(2)(B)’’ and inserting ‘‘section 116(a)(2)(A)(iii)’’.
(d) FUNCTIONS.—Section 117(d) (29 U.S.C. 2832(d))
is amended—
(1) in paragraph (1), insert after ‘‘Governor’’ the
following: ‘‘, and shall develop jointly with the head
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of the State employment service under the Wagner-
Peyser Act (29 U.S.C. 49 et seq.) appropriate compo-
nents of such plan to maximize coordination, improve
service delivery, and avoid duplication of services’’;
(2) in paragraph (2)—
(A) in subparagraph (B)—
(i) by inserting ‘‘(except as provided in
section 123(b))’’ after ‘‘basis’’; and
(ii) by inserting ‘‘(where appropriate)’’
after ‘‘youth council’’; and
(B) by adding at the end the following:
‘‘(E) CONSUMER CHOICE REQUIREMENTS.—
Consistent with sections 122 and paragraphs (3)
and (4) of 134(d), the local board shall work to
ensure there are sufficient providers of intensive
services and training services serving the local
area in a manner that maximizes consumer
choice, including providers with expertise in as-
sisting individuals with disabilities.’’;
(3) in paragraph (3)(B), by striking clause (ii)
and inserting the following:
‘‘(ii) STAFF.—
‘‘(I) 
IN
GENERAL.—The 
local
board may hire staff.
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‘‘(II) LIMITATION
ON
RATE.—
Funds appropriated under this title
shall not be used to pay staff employed
by the local board, either as a direct
cost or through any proration as an
indirect cost, at a rate in excess of the
maximum rate payable for a position
at GS–15 of the General Schedule, as
in effect on the date of enactment of the
Workforce Investment Act Amendments
of 2005.’’;
(4) in paragraph (4), by inserting ‘‘, and shall
ensure the appropriate use and management of the
funds provided under this subtitle for such programs,
activities, and system’’ after ‘‘area’’;
(5) in paragraph (6)—
(A) by striking ‘‘EMPLOYMENT STATISTICS
SYSTEM’’ and inserting ‘‘WORKFORCE
AND
LABOR MARKET INFORMATION SYSTEM’’; and
(B) by striking ‘‘employment statistics sys-
tem’’ and inserting ‘‘workforce and labor market
information system’’;
(6) in paragraph (8)—
(A) by inserting ‘‘, including small employ-
ers,’’ after ‘‘private sector employers’’; and
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(B) by striking the period and inserting ‘‘,
taking into account the unique needs of small
businesses.’’; and
(7) by adding at the end the following:
‘‘(9) TECHNOLOGY
IMPROVEMENTS.—The local
board shall develop strategies for technology improve-
ments to facilitate access to services, in remote areas,
for services authorized under this subtitle and carried
out in the local area.’’.
(e) CONFORMING AMENDMENT.—Section 117(f)(2) (29
U.S.C. 2832(f)(2)) is amended by striking ‘‘described in sec-
tion 134(c)’’.
(f) CONFLICT OF INTEREST.—Section 117(g)(1) (29
U.S.C. 2832(g)(1)) is amended by inserting ‘‘or participate
in action taken’’ after ‘‘vote’’.
(g) AUTHORITY TO ESTABLISH COUNCILS AND ELIMI-
NATION OF REQUIREMENT FOR YOUTH COUNCILS.—Section
117(h) (29 U.S.C. 2832(h)) is amended to read as follows:
‘‘(h) COUNCILS.—The local board may establish or
continue councils to provide information and advice to as-
sist the local board in carrying out activities under this
title. Such councils may include—
‘‘(1) a council composed of one-stop partners to
advise the local board on the operation of the one-stop
delivery system involved;
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‘‘(2) a youth council composed of experts and
stakeholders in youth programs to advise the local
board on youth activities; and
‘‘(3) such other councils as the local board deter-
mines are appropriate.’’.
(h) 
ALTERNATIVE
ENTITY
PROVISION.—Section
117(i)(1) (29 U.S.C. 2832(i)(1)) is amended—
(1) in the matter preceding subparagraph (A),
by striking ‘‘and paragraphs (1) and (2) of subsection
(h),’’;
(2) by striking subparagraph (B) and inserting
the following:
‘‘(B) was in existence on August 7, 1998,
pursuant to State law; and’’;
(3) by striking subparagraph (C); and
(4) by redesignating subparagraph (D) as sub-
paragraph (C).
SEC. 116. LOCAL PLAN.
(a) PLANNING CYCLE.—Section 118(a) (29 U.S.C.
2833(a)) is amended—
(1) by striking ‘‘5-year’’ and inserting ‘‘4-year’’;
and
(2) by adding at the end the following: ‘‘At the
end of the first 2-year period of the 4-year plan, the
local board shall review and, as needed, amend the 4-
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year plan to reflect labor market and economic condi-
tions.’’.
(b) CONTENTS.—Section 118(b) (29 U.S.C. 2833(b)) is
amended—
(1) in paragraph (2)—
(A) in subparagraph (A), by striking ‘‘and’’
after the semicolon;
(B) by striking subparagraph (B) and in-
serting the following:
‘‘(B) a description of how the local board
will facilitate access to services provided through
the one-stop delivery system involved, in remote
areas, including facilitating access through the
use of technology; and’’; and
(C) by adding at the end the following:
‘‘(C) a description of how the local board
will ensure physical and programmatic accessi-
bility for individuals with disabilities at one-
stop centers;’’;
(2) in paragraph (9), by striking ‘‘; and’’ and
inserting a semicolon;
(3) by redesignating paragraph (10) as para-
graph (16); and
(4) by inserting after paragraph (9) the fol-
lowing:
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‘‘(10) a description of how the local board will
coordinate workforce investment activities carried out
in the local area with economic development activities
carried out in the local area, and promote entrepre-
neurial skills training and microenterprise services;
‘‘(11) a description of the strategies and services
that will be initiated in the local area to more fully
engage all employers, including small employers, in
workforce investment activities, to make the workforce
investment system more relevant to the needs of area
businesses, and to better coordinate workforce invest-
ment and economic development efforts, which may
include the implementation of innovative initiatives
such as incumbent worker training programs, sectoral
and industry cluster strategies, regional skills alliance
initiatives, career ladder programs, utilization of ef-
fective business intermediaries, and other business
services and strategies designed to meet the needs of
area employers and contribute to the economic well-
being of the local area, as determined appropriate by
the local board, consistent with the objectives of this
title;
‘‘(12) a description of how the local board will
expand access to education and training services for
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eligible individuals who are in need of such services
through—
‘‘(A) the utilization of programs funded
under this title; and
‘‘(B) the increased leveraging of resources
other than those provided under this title, in-
cluding tax credits, private sector-provided
training, and other Federal, State, local, and
private funds that are brokered through the one-
stop centers for training services;
‘‘(13) a description of how the local board will
coordinate workforce investment activities carried out
in the local area with the provision of transportation,
including public transportation, in the local area;
‘‘(14) a description of plans for, assurances con-
cerning, and strategies for maximizing coordination
of services provided by the State employment service
under the Wagner-Peyser Act (29 U.S.C. 49 et seq.)
and services provided in the local area through the
one-stop delivery system described in section 121(e),
to improve service delivery and avoid duplication of
services;
‘‘(15) a description of how the local board will
coordinate workforce investment activities carried out
in the local area with other Federal, State, and local
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area education, job training, and economic develop-
ment programs and activities; and’’.
SEC. 117. ESTABLISHMENT OF ONE-STOP DELIVERY SYS-
TEMS.
(a) ONE-STOP PARTNERS.—
(1) REQUIRED
PARTNERS.—Section 121(b)(1)
(29 U.S.C. 2841(b)(1)) is amended—
(A) by striking subparagraph (A) and in-
serting the following:
‘‘(A) ROLES
AND
RESPONSIBILITIES
OF
ONE-STOP PARTNERS.—Each entity that carries
out a program or activities described in subpara-
graph (B) shall—
‘‘(i) provide access through the one-stop
delivery system to the programs and activi-
ties carried out by the entity, including
making the core services described in section
134(d)(2) that are applicable to the pro-
gram of the entity available at the one-stop
centers (in addition to any other appro-
priate locations);
‘‘(ii) use a portion of the funds avail-
able to the program of the entity to main-
tain the one-stop delivery system, including
payment of the infrastructure costs of one-
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stop centers in accordance with subsection
(h);
‘‘(iii) enter into a local memorandum
of understanding with the local board relat-
ing to the operation of the one-stop system
that meets the requirements of subsection
(c);
‘‘(iv) participate in the operation of
the one-stop system consistent with the
terms of the memorandum of under-
standing, the requirements of this title, and
the requirements of the Federal laws author-
izing the programs carried out by the enti-
ty; and
‘‘(v) provide representation on the
State board to the extent provided under
section 111.’’;
(B) in subparagraph (B)—
(i) by striking clause (v);
(ii) by redesignating clauses (vi)
through (xii) as clauses (v) through (xi), re-
spectively;
(iii) in clause (x) (as redesignated by
clause (ii)), by striking ‘‘and’’ at the end;
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(iv) in clause (xi) (as redesignated by
clause (ii)), by striking the period and in-
serting ‘‘; and’’; and
(v) by adding at the end the following:
‘‘(xii) programs authorized under part
A of title IV of the Social Security Act (42
U.S.C. 601 et seq.), subject to subparagraph
(C).’’; and
(C) by adding at the end the following:
‘‘(C) DETERMINATION BY THE GOVERNOR.—
‘‘(i) IN GENERAL.—An entity that car-
ries out programs referred to in subpara-
graph (B)(xii) shall be included in the one-
stop partners for the local area, as a re-
quired partner, for purposes of this title un-
less the Governor of the State provides the
notification described in clause (ii).
‘‘(ii) NOTIFICATION.—The notification
referred to in clause (i) is a notification
that—
‘‘(I) is made in writing of a deter-
mination by the Governor not to in-
clude such entity in the one-stop part-
ners described in clause (i); and
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‘‘(II) is provided to the Secretary
and the Secretary of Health and
Human Services.’’.
(2) ADDITIONAL PARTNERS.—
(A) IN GENERAL.—Section 121(b)(2)(A) (29
U.S.C. 2841(b)(2)(A)) is amended to read as fol-
lows:
‘‘(A) IN GENERAL.—With the approval of
the local board and chief elected official, in addi-
tion to the entities described in paragraph (1),
other entities that carry out human resource pro-
grams described in subparagraph (B) may be
one-stop partners and carry out the responsibil-
ities described in paragraph (1)(A).’’.
(B) 
ADDITIONAL
PARTNERS.—Section
121(b)(2)(B) 
(29 
U.S.C. 
2841(b)(2)(B)) 
is
amended by striking clauses (i) through (iii) and
inserting the following:
‘‘(i) employment and training pro-
grams administered by the Social Security
Administration, including the Ticket to
Work and Self-Sufficiency program estab-
lished under section 1148 of the Social Se-
curity Act (42 U.S.C. 1320b–19);
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‘‘(ii) employment and training pro-
grams carried out by the Small Business
Administration;
‘‘(iii) programs authorized under sec-
tion 6(d)(4) of the Food Stamp Act of 1977
(7 U.S.C. 2015(d)(4));’’.
(b) LOCAL MEMORANDUM OF UNDERSTANDING.—Sec-
tion 121(c)(2)(A) (29 U.S.C. 2841(c)(2)(A)) is amended to
read as follows:
‘‘(A) provisions describing—
‘‘(i) the services to be provided through
the one-stop delivery system consistent with
the requirements of this section, including
the manner in which the services will be co-
ordinated through such system;
‘‘(ii) how the costs of such services and
the operating costs of such system will be
funded, through cash and in-kind contribu-
tions, to provide a stable and equitable
funding stream for ongoing one-stop system
operations, including the funding of the in-
frastructure costs of one-stop centers in ac-
cordance with subsection (h);
‘‘(iii) methods of referral of individuals
between the one-stop operator and the one-
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stop partners for appropriate services and
activities;
‘‘(iv) methods to ensure the needs of
hard-to-serve populations are addressed in
providing access to services through the one-
stop system; and
‘‘(v) the duration of the memorandum
of understanding and the procedures for
amending the memorandum during the
term of the memorandum, and assurances
that such memorandum shall be reviewed
not less than once every 2-year period to en-
sure appropriate funding and delivery of
services; and’’.
(c) CONFORMING AMENDMENT.—Section 121(d)(2) (29
U.S.C. 2841(d)(2)) is amended by striking ‘‘section 134(c)’’
and inserting ‘‘section 121(e)’’.
(d) PROVISION OF SERVICES.—
(1) ELIMINATION
OF
PROVISIONS
CONCERNING
ESTABLISHED
SYSTEMS.—Section 121 (29 U.S.C.
2841) is amended by striking subsection (e).
(2) REDESIGNATION.—Subtitle B of title I is
amended—
(A) in section 134 (29 U.S.C. 2864), by re-
designating subsection (c) as subsection (e); and
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(B) by transferring that subsection (e) so
that the subsection appears after subsection (d)
of section 121.
(3) ONE-STOP DELIVERY SYSTEMS.—Paragraph
(1) of section 121(e) (29 U.S.C. 2841(e)) (as redesig-
nated by paragraph (2)) is amended—
(A) in subparagraph (A), by striking ‘‘sub-
section 
(d)(2)’’ 
and 
inserting 
‘‘section
134(d)(2)’’;
(B) in subparagraph (B)—
(i) by striking ‘‘subsection (d)’’ and in-
serting ‘‘section 134(d)’’;
(ii) by striking ‘‘individual training
accounts’’ and inserting ‘‘career scholarship
accounts’’; and
(iii) by striking ‘‘subsection (d)(4)(G)’’
and inserting ‘‘section 134(d)(4)(G)’’;
(C) in subparagraph (C), by striking ‘‘sub-
section (e)’’ and inserting ‘‘section 134(e)’’;
(D) in subparagraph (D), by striking ‘‘sec-
tion 121(b)’’ and inserting ‘‘subsection (b)’’; and
(E) in subparagraph (E), by striking ‘‘in-
formation described in section 15’’ and inserting
‘‘data, information, and analysis described in
section 15(a)’’.
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(e) CONTINUOUS IMPROVEMENT OF ONE-STOP CEN-
TERS.—Section 121 (29 U.S.C. 2841) is amended by add-
ing at the end the following:
‘‘(g) CONTINUOUS IMPROVEMENT OF ONE-STOP CEN-
TERS.—
‘‘(1) IN
GENERAL.—The State board, in con-
sultation with chief local elected officials and local
boards, shall establish objective criteria and proce-
dures for use by local boards in periodically assessing
the effectiveness, physical and programmatic accessi-
bility, and continuous improvement of one-stop cen-
ters and the one-stop delivery system.
‘‘(2) CRITERIA.—The procedures and criteria de-
veloped under this subsection shall include minimum
standards relating to the scope and degree of service
coordination achieved by the one-stop delivery system
with respect to the programs administered by the one-
stop partners at the one-stop centers, consistent with
the guidelines and guidance provided by the Governor
and by the State board, in consultation with the chief
elected official and local boards, for such partners’
participation under subsections (h)(1)(B) and sub-
section (i), respectively, and such other factors relat-
ing to the quality, accessibility, and effectiveness of
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the one-stop delivery system as the State board deter-
mines to be appropriate.
‘‘(3) LOCAL BOARDS.—Consistent with the cri-
teria developed by the State, the local board may de-
velop additional criteria of higher standards to re-
spond to local labor market and demographic condi-
tions and trends.
‘‘(h) FUNDING OF ONE-STOP INFRASTRUCTURE.—
‘‘(1) IN GENERAL.—
‘‘(A) OPTIONS FOR INFRASTRUCTURE FUND-
ING.—
‘‘(i) LOCAL OPTIONS.—The local board,
chief elected officials, and one-stop partners
in a local area may choose to fund the costs
of the infrastructure of one-stop centers
through—
‘‘(I) methods described in the local
memorandum of understanding, if, the
local board, chief elected officials, and
one-stop partners agree to such meth-
ods; or
‘‘(II) 
the 
State 
infrastructure
funding mechanism described in para-
graph (2).
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‘‘(ii) FAILURE TO REACH AGREEMENT
ON FUNDING METHODS.—If, as of July 1,
2006, the local board, chief elected officials,
and one-stop partners in a local area fail to
reach agreement on methods of sufficient
funding of the infrastructure costs of one-
stop centers, as determined by the local
area, the State infrastructure funding mech-
anism described in paragraph (2) shall be
applicable to such local area.
‘‘(B) 
GUIDANCE
FOR
INFRASTRUCTURE
FUNDING.—In addition to carrying out the re-
quirements relating to the State mechanism for
one-stop center infrastructure funding described
in paragraph (2), the Governor, after consulta-
tion with chief local elected officials, local boards,
and the State board, and consistent with the
guidelines provided by the State board under
subsection (i), shall provide—
‘‘(i) guidelines for State administered
one-stop partner programs in determining
such programs’ contributions to and par-
ticipation in the one-stop delivery system,
including funding for the costs of infra-
structure as defined in paragraph (2)(D),
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negotiated pursuant to the local memo-
randum of understanding under subsection
(c); and
‘‘(ii) guidance to assist local areas in
identifying equitable and stable alternative
methods of funding of the costs of the infra-
structure of one-stop centers in local areas.
‘‘(2) STATE ONE-STOP INFRASTRUCTURE FUND-
ING.—
‘‘(A) PARTNER CONTRIBUTIONS.—
‘‘(i) IN
GENERAL.—Subject to clause
(iii), a portion determined under clause (ii)
of the Federal funds provided to the State
and areas within the State under the Fed-
eral laws authorizing the programs de-
scribed in subsection (b)(1) and adminis-
tered by one-stop partners for a fiscal year
shall be provided to the Governor from such
programs to assist in paying the costs of in-
frastructure of one-stop centers in those
local areas of the State not funded under
the 
option 
described 
in 
paragraph
(1)(A)(i)(I).
‘‘(ii) 
DETERMINATION
OF
GOV-
ERNOR.—