187
HR 1385 EAS
(A) information describing the employment
and training activities that will be carried out
with the funds the State receives under this sub-
title, describing how the State will provide rapid
response activities to dislocated workers, and des-
ignating an identifiable State rapid response
dislocated worker unit, to be funded under sec-
tion 306(a)(2) to carry out statewide rapid re-
sponse activities, and an assurance that veterans
will be afforded services under this subtitle to the
extent practicable;
(B) information describing the State strat-
egy for development of a fully operational state-
wide one-stop customer service system as de-
scribed in section 315(b), including—
(i) criteria for use by chief elected offi-
cials and local partnerships, for designating
or certifying one-stop customer service cen-
ter operators, appointing one-stop partners,
and conducting oversight with respect to the
one-stop customer service system, for each
local area; and
(ii) the steps that the State will take
over the 3 years covered by the plan to en-
sure that all publicly funded labor exchange
188
HR 1385 EAS
services described in section 315(c)(2) or the
Wagner-Peyser Act (29 U.S.C. 49 et seq.),
will be available through the one-stop cus-
tomer service system of the State;
(C) information describing the criteria used
by the local partnership in the development of
the local plan described in section 309; and
(D) information describing the procedures
the State will use to identify eligible providers of
training services, as required under this subtitle;
and
(21) with respect to youth activities funded
under this subtitle, information—
(A) describing the youth activities that will
be carried out with the funds the State receives
under this subtitle;
(B) identifying the criteria to be used by
the local partnership in awarding grants and
contracts under section 313 for youth activities;
(C) identifying the types of criteria the
Governor and local partnerships will use to iden-
tify effective and ineffective youth activities and
eligible providers of such activities; and
(D) describing how the State will coordinate
the youth activities carried out in the State
189
HR 1385 EAS
under this subtitle with the services provided by
Job Corps centers in the State.
(c) PLAN SUBMISSION AND APPROVAL.—A State plan
submitted to the Secretary under this section by a Governor
shall be considered to be approved by the Secretary at the
end of the 60-day period beginning on the day the Secretary
receives the plan, unless the Secretary makes a written de-
termination, during the 60-day period, that—
(1) the plan is inconsistent with the provisions
of this title;
(2) in the case of the portion of the plan de-
scribed in section 8(a) of the Wagner-Peyser Act (29
U.S.C. 49g(a)), the portion does not satisfy the cri-
teria for approval provided in section 8(d) of such
Act); or
(3) the levels of performance have not been
agreed to pursuant to section 321(b)(4).
(d) MODIFICATIONS TO INITIAL PLAN.—A State may
submit, for approval by the Secretary, substantial modifica-
tions to the State plan in accordance with the requirements
of this section and section 303, as necessary, during the 3-
year period of the plan.
190
HR 1385 EAS
CHAPTER 2—ALLOCATIONS TO LOCAL
WORKFORCE INVESTMENT AREAS
SEC. 306. WITHIN STATE ALLOCATIONS.
(a) RESERVATIONS FOR STATE ACTIVITIES.—
(1) ADULT EMPLOYMENT AND TRAINING ACTIVI-
TIES, DISLOCATED WORKER EMPLOYMENT AND TRAIN-
ING ACTIVITIES, AND YOUTH ACTIVITIES.—The Gov-
ernor of a State shall reserve not more than 15 per-
cent of each of the amounts allotted to the State under
paragraphs (1)(B), (2)(B), and (3)(C)(ii) of section
302(b) for a fiscal year for statewide workforce invest-
ment activities described in subsections (b)(2) and (c)
of section 314.
(2) STATEWIDE RAPID RESPONSE ACTIVITIES.—
The Governor of the State shall reserve not more than
25 percent of the total amount allotted to the State
under section 302(b)(2)(B) for a fiscal year for state-
wide rapid response activities described in section
314(b)(1).
(b) WITHIN STATE ALLOCATION.—
(1) ALLOCATION.—The Governor of the State
shall allocate to the local areas the funds that are al-
lotted to the State under section 302(b) and are not
reserved under subsection (a) for the purpose of pro-
viding employment and training activities to eligible
191
HR 1385 EAS
participants pursuant to section 315 and youth ac-
tivities to eligible participants pursuant to section
316.
(2) METHODS.—The State, acting in accordance
with the State plan, and after consulting with chief
elected officials in the local areas, shall allocate—
(A) the funds that are allotted to the State
for adult employment and training activities
under section 302(b)(1)(B) and are not reserved
under subsection (a)(1), in accordance with
paragraph (3) or (4);
(B) the funds that are allotted to the State
for dislocated worker employment and training
activities under section 302(b)(2)(B) and are not
reserved under paragraph (1) or (2) of subsection
(a), in accordance with paragraph (3); and
(C) the funds that are allotted to the State
for 
youth 
activities 
under 
section
302(b)(3)(C)(ii) and are not reserved under sub-
section (a)(1), in accordance with paragraph (3)
or (4).
(3) ADULT EMPLOYMENT AND TRAINING ACTIVI-
TIES, DISLOCATED WORKER EMPLOYMENT AND TRAIN-
ING ACTIVITIES, AND YOUTH ACTIVITIES FORMULA AL-
LOCATIONS.—
192
HR 1385 EAS
(A) ADULT EMPLOYMENT AND TRAINING AC-
TIVITIES.—
(i) ALLOCATION.—In allocating the
funds described in paragraph (2)(A) to local
areas, a State may allocate—
(I) 331⁄3 percent of the funds on
the 
basis 
described 
in 
section
302(b)(1)(B)(ii)(I);
(II) 331⁄3 percent of the funds on
the 
basis 
described 
in 
section
302(b)(1)(B)(ii)(II); and
(III) 331⁄3 percent of the funds on
the basis described in clauses (ii)(III)
and (iii) of section 302(b)(1)(B).
(ii) MINIMUM PERCENTAGE.—No local
area shall receive an allocation percentage
for a fiscal year that is less than 90 percent
of the average allocation percentage of the
local area (or the service delivery area that
most closely corresponds to the local area)
for the 2 preceding fiscal years. Amounts
necessary for increasing such allocations to
local areas to comply with the preceding
sentence shall be obtained by ratably reduc-
193
HR 1385 EAS
ing the allocations to be made to other local
areas under this subparagraph.
(iii) DEFINITION.—The term ‘‘alloca-
tion percentage’’, used with respect to fiscal
year 1999 or a subsequent fiscal year,
means a percentage of the funds referred to
in clause (i), received through an allocation
made under this subparagraph, for the fis-
cal year. The term, used with respect to fis-
cal year 1998, means the percentage of the
amounts allocated to service delivery areas
under section 202(b) of the Job Training
Partnership Act (29 U.S.C. 1602(b)) (as in
effect on the day before the date of enact-
ment of this Act) received under such sec-
tion by the service delivery area that most
closely corresponds to the local area in-
volved for fiscal year 1998.
(B) DISLOCATED
WORKER
EMPLOYMENT
AND TRAINING ACTIVITIES.—
(i) FORMULA.—In allocating the funds
described in paragraph (2)(B) to local
areas, a State shall allocate the funds based
on an allocation formula prescribed by the
Governor of the State. Such formula may be
194
HR 1385 EAS
amended by the Governor not more than
once for each program year. Such formula
shall utilize the most appropriate informa-
tion available to the Governor to distribute
amounts to address the State’s worker read-
justment assistance needs.
(ii) INFORMATION.—The information
described in clause (i) shall include—
(I) insured unemployment data;
(II) 
unemployment 
concentra-
tions;
(III) plant closing and mass lay-
off data;
(IV) declining industries data;
(V) 
farmer-rancher 
economic
hardship data; and
(VI) 
long-term 
unemployment
data.
(C) YOUTH ACTIVITIES.—
(i) ALLOCATION.—In allocating the
funds described in paragraph (2)(C) to local
areas, a State may allocate—
(I) 331⁄3 percent of the funds on
the 
basis 
described 
in 
section
302(b)(3)(C)(ii)(I);
195
HR 1385 EAS
(II) 331⁄3 percent of the funds on
the 
basis 
described 
in 
section
302(b)(3)(C)(ii)(II); and
(III) 331⁄3 percent of the funds on
the basis described in clauses (ii)(III)
and (iii) of section 302(b)(3)(C).
(ii) MINIMUM PERCENTAGE.—No local
area shall receive an allocation percentage
for a fiscal year that is less than 90 percent
of the average allocation percentage of the
local area (or the service delivery area that
most closely corresponds to the local area)
for the 2 preceding fiscal years. Amounts
necessary for increasing such allocations to
local areas to comply with the preceding
sentence shall be obtained by ratably reduc-
ing the allocations to be made to other local
areas under this subparagraph.
(iii) DEFINITION.—The term ‘‘alloca-
tion percentage’’, used with respect to fiscal
year 1999 or a subsequent fiscal year,
means a percentage of the funds referred to
in clause (i), received through an allocation
made under this subparagraph, for the fis-
cal year. The term, used with respect to fis-
196
HR 1385 EAS
cal year 1998, means the percentage of the
amounts allocated to service delivery areas
under sections 252(b) and 262(b) of the Job
Training Partnership Act (29 U.S.C. (29
U.S.C. 1631(b), 1642(b)) (as in effect on the
day before the date of enactment of this Act)
received under such section by the service
delivery area that most closely corresponds
to the local area involved for fiscal year
1998.
(D) APPLICATION.—For purposes of carry-
ing out subparagraphs (A), (B), and (C), and
subparagraphs (A) and (B) of paragraph (4)—
(i) references in section 302(b) to a
State shall be deemed to be references to a
local area;
(ii) references in section 302(b) to all
States shall be deemed to be references to all
local areas in the State involved;
(iii) except as described in clauses (i)
and (ii), references in paragraphs (1) and
(3) of section 302(b) to the term ‘‘excess
number’’ shall be considered to be references
to the term as defined in section 302(b)(1);
and
197
HR 1385 EAS
(iv) except as described in clause (i), a
reference in section 302(b)(2) to the term
‘‘excess number’’ shall be considered to be a
reference to the term as defined in such sec-
tion.
(4) ADULT
EMPLOYMENT
AND
TRAINING
AND
YOUTH DISCRETIONARY ALLOCATIONS.—
(A) ADULT EMPLOYMENT AND TRAINING AC-
TIVITIES.—In lieu of making the allocation de-
scribed in paragraph (3)(A), in allocating the
funds described in paragraph (2)(A) to local
areas, a State may distribute—
(i) a portion equal to not less than 70
percent of the funds in accordance with
paragraph (3)(A); and
(ii) the remaining portion of the funds
on the basis of a formula that—
(I) incorporates additional factors
(other than the factors described in
paragraph (3)(A)) relating to excess
poverty in local areas or excess unem-
ployment above the State average in
local areas; and
198
HR 1385 EAS
(II) was developed by the state-
wide partnership and approved by the
Secretary as part of the State plan.
(B) YOUTH ACTIVITIES.—In lieu of making
the allocation described in paragraph (3)(C), in
allocating the funds described in paragraph
(2)(C) to local areas, a State may distribute—
(i) a portion equal to not less than 70
percent of the funds in accordance with
paragraph (3)(C); and
(ii) the remaining portion of the funds
on the basis of a formula that—
(I) incorporates additional factors
(other than the factors described in
paragraph (3)(C)) relating to excess
youth poverty in local areas or excess
unemployment above the State average
in local areas; and
(II) was developed by the state-
wide partnership and approved by the
Secretary as part of the State plan.
(5) LIMITATION.—
(A) IN GENERAL.—Of the amount allocated
to a local area under this subsection for a fiscal
year—
199
HR 1385 EAS
(i) not more than 15 percent of the
amount allocated under paragraph (3)(A)
or (4)(A);
(ii) not more than 15 percent of the
amount allocated under paragraph (3)(B);
and
(iii) not more than 15 percent of the
amount allocated under paragraph (3)(C)
or (4)(B),
may be used by the local partnership for the ad-
ministrative cost of carrying out local workforce
investment activities described in section 315 or
316.
(B) USE OF FUNDS.—Funds made available
for administrative costs under subparagraph (A)
may be used for the administrative cost of any
of the local workforce investment activities de-
scribed in sections 315 and 316, regardless of
whether the funds were allocated under the provi-
sions described in clause (i), (ii), or (iii) of sub-
paragraph (A).
(C) REGULATIONS.—The Secretary, after
consulting with the Governors, shall develop and
issue regulations that define the term ‘‘adminis-
trative cost’’ for purposes of this title.
200
HR 1385 EAS
(6) TRANSFER AUTHORITY.—A local partnership
may transfer, if such a transfer is approved by the
Governor, not more than 20 percent of the funds allo-
cated to the local area under paragraph (3)(A) or
(4)(A), and 20 percent of the funds allocated to the
local area under paragraph (3)(B), for a fiscal year
between—
(A) adult employment and training activi-
ties; and
(B) dislocated worker employment and
training activities.
(7) FISCAL AUTHORITY.—
(A) FISCAL AGENT.—The chief elected offi-
cial in a local area shall serve as the fiscal agent
for, and shall be liable for any misuse of, the
funds allocated to the local area under this sec-
tion, unless the chief elected official reaches an
agreement with the Governor for the Governor to
act as the fiscal agent and bear such liability.
(B) DISBURSAL.—The fiscal agent shall dis-
burse such funds for workforce investment activi-
ties at the direction of the local partnership, pur-
suant to the requirements of this title, if the di-
rection does not violate a provision of this Act.
The fiscal agent shall disburse funds immediately
201
HR 1385 EAS
on receiving such direction from the local part-
nership.
SEC. 307. LOCAL WORKFORCE INVESTMENT AREAS.
(a) DESIGNATION OF AREAS.—
(1) IN GENERAL.—Except as provided in sub-
section (b) and paragraph (2), the Governor shall des-
ignate local workforce investment areas in the State,
in accordance with the State plan requirements de-
scribed in section 304(b)(5).
(2) AUTOMATIC DESIGNATION.—
(A) IN
GENERAL.—The Governor of the
State shall approve a request for designation as
a local area—
(i) from any unit of general local gov-
ernment with a population of 500,000 or
more, if the designation meets the State
plan requirements described in section
304(b)(5);
(ii) of the area served by a rural con-
centrated employment program grant recip-
ient of demonstrated effectiveness that served
as a service delivery area under the Job
Training Partnership Act, if the grant re-
cipient has submitted the request and if the
202
HR 1385 EAS
designation meets the State plan require-
ments described in section 304(b)(5); and
(iii) of an area that served as a service
delivery area under section 101(a)(4)(A)(ii)
of the Job Training Partnership Act (as in
effect on the day before the date of enact-
ment of this Act) in a State that has a pop-
ulation of 1,100,000 or less and a popu-
lation density greater than 900 persons per
square mile, if the designation meets the
State plan requirements described in section
304(b)(5).
(B) LARGE COUNTIES.—A county with a
population of 500,000 or more may request such
designation only with the agreement of the polit-
ical subdivisions within the county with popu-
lations of 200,000 or more.
(C) LARGE
POLITICAL
SUBDIVISIONS.—A
single unit of general local government with a
population of 200,000 or more that is a service
delivery area under the Job Training Partner-
ship Act on the date of enactment of this Act,
and that is not designated as a local area by the
Governor under paragraph (1), shall have an
automatic right to submit an appeal regarding
203
HR 1385 EAS
designation to the Secretary. In conducting the
appeal, the Secretary may determine that the
unit of general local government shall be des-
ignated as a local area under paragraph (1), on
determining that the programs of the service de-
livery area have demonstrated effectiveness, if the
designation of the unit meets the State plan re-
quirements described in section 304(b)(5).
(3) PERMANENT DESIGNATION.—Once the bound-
aries for a local area are determined under this sec-
tion in accordance with the State plan, the bound-
aries shall not change except with the approval of the
Governor.
(b) SMALL STATES.—The Governor of any State deter-
mined to be eligible to receive a minimum allotment under
paragraph (1) or (3) of section 302(b), in accordance with
section 302(b)(1)(B)(iv)(II), for the first year covered by the
State plan, or of a State that is a single State service deliv-
ery area under the Job Training Partnership Act (29
U.S.C. 1501 et seq.) as of July 1, 1998, may designate the
State as a single State local area for the purposes of this
title. The Governor shall identify the State as a local area
under section 304(b)(5), in lieu of designating local areas
as described in subparagraphs (A), (B), and (C) of section
304(b)(5).
204
HR 1385 EAS
SEC. 308. LOCAL WORKFORCE INVESTMENT PARTNERSHIPS
AND YOUTH PARTNERSHIPS.
(a) ESTABLISHMENT OF LOCAL PARTNERSHIP.—There
shall be established in each local area of a State, and cer-
tified by the Governor of the State, a local workforce invest-
ment partnership.
(b) ROLE OF LOCAL PARTNERSHIP.—The primary role
of the local partnership shall be to set policy for the portion
of the statewide workforce investment system within the
local area, including—
(1) ensuring that the activities authorized under
this subtitle and carried out in the local area meet
local performance measures;
(2) ensuring that the activities meet the needs of
employers and jobseekers; and
(3) ensuring the continuous improvement of the
system.
(c) MEMBERSHIP OF LOCAL PARTNERSHIP.—
(1) STATE CRITERIA.—The Governor of the State
shall establish criteria for the appointment of mem-
bers of the local partnerships for local areas in the
State in accordance with the requirements of para-
graph (2). Information identifying such criteria shall
be included in the State plan, as described in section
304(b)(7).
205
HR 1385 EAS
(2) COMPOSITION.—Such criteria shall require,
at a minimum, that the membership of each local
partnership—
(A) shall include—
(i) a majority of members who—
(I) are representatives of business
in the local area;
(II) are owners of businesses, chief
executives or operating officers of pri-
vate businesses, and other business ex-
ecutives or employers with optimum
policymaking or hiring authority;
(III) represent businesses with
employment opportunities that reflect
the employment opportunities of the
local area; and
(IV) are appointed from among
individuals nominated by local busi-
ness organizations and business trade
associations;
(ii) chief officers representing local
postsecondary educational institutions, rep-
resentatives of vocational education provid-
ers, and representatives of adult education
providers;
206
HR 1385 EAS
(iii) chief officers representing labor
organizations (for a local area in which
such representatives reside), nominated by
local labor federations, or (for a local area
in which such representatives do not reside)
other representatives of employees; and
(iv) chief officers representing economic
development agencies, including private sec-
tor economic development entities;
(B) may include chief officers who have pol-
icymaking authority, from one-stop partners who
have entered into an operating agreement de-
scribed in section 311(c) to participate in the
one-stop customer service system in the local
area; and
(C) may include such other individuals or
representatives of entities as the chief elected offi-
cial in the local area may determine to be appro-
priate.
(3) CHAIRPERSON.—The local partnership shall
elect a chairperson from among the members of the
partnership described in paragraph (2)(A)(i).
(d) APPOINTMENT
AND CERTIFICATION
OF LOCAL
PARTNERSHIP.—
207
HR 1385 EAS
(1) APPOINTMENT OF LOCAL PARTNERSHIP MEM-
BERS AND ASSIGNMENT OF RESPONSIBILITIES.—
(A) IN GENERAL.—The chief elected official
in a local area is authorized to appoint the
members of the local partnership for such area,
in accordance with the State criteria established
under subsection (c).
(B) MULTIPLE UNITS OF LOCAL GOVERN-
MENT IN AREA.—
(i) IN GENERAL.—In a case in which
a local area includes more than 1 unit of
general local government, the chief elected
officials of such units may execute an agree-
ment that specifies the respective roles of the
individual chief elected officials—
(I) in the appointment of the
members of the local partnership from
the individuals nominated or rec-
ommended to be such members in ac-
cordance with the criteria established
under subsection (c); and
(II) in carrying out any other re-
sponsibilities assigned to such officials
under this subtitle.
208
HR 1385 EAS
(ii) LACK OF AGREEMENT.—If, after a
reasonable effort, the chief elected officials
are unable to reach agreement as provided
under clause (i), the Governor may appoint
the members of the local partnership from
individuals so nominated or recommended.
(C) CONCENTRATED
EMPLOYMENT
PRO-
GRAMS.—In the case of a local area designated
in accordance with section 307(a)(2)(A)(ii), the
governing body of the concentrated employment
program involved shall act in consultation with
the chief elected official in the local area to ap-
point members of the local partnership, in ac-
cordance with the State criteria established
under subsection (c), and to carry out any other
responsibility relating to workforce investment
activities assigned to such official under this Act.
(2) CERTIFICATION.—
(A) IN GENERAL.—The Governor shall an-
nually certify 1 local partnership for each local
area in the State.
(B) CRITERIA.—Such certification shall be
based on criteria established under subsection (c)
and, for a second or subsequent certification, the
extent to which the local partnership has ensured
209
HR 1385 EAS
that workforce investment activities carried out
in the local area have enabled the local area to
meet the local performance measures required
under section 321(c).
(C) 
FAILURE
TO
ACHIEVE
CERTIFI-
CATION.—Failure of a local partnership to
achieve certification shall result in reappoint-
ment and certification of another local partner-
ship for the local area pursuant to the process
described in paragraph (1) and this paragraph.
(3) DECERTIFICATION.—
(A) IN
GENERAL.—Notwithstanding para-
graph (2), the Governor may decertify a local
partnership, at any time after providing notice
and an opportunity for comment, for—
(i) fraud or abuse; or
(ii) failure to carry out the functions
specified for the local partnership in any of
paragraphs (1), (2), (4), (5), and (6) of sub-
section (e).
(B) PLAN.—If the Governor decertifies a
local partnership for a local area, the Governor
may require that a local partnership be ap-
pointed and certified for the local area pursuant
to a plan developed by the Governor in consulta-
210
HR 1385 EAS
tion with the chief elected official in the local
area and in accordance with the criteria estab-
lished under subsection (c).
(4) EXCEPTION.—Notwithstanding subsection (c)
and paragraphs (1) and (2), if a State described in
section 307(b) designates the State as a local area in
the State plan, the Governor may designate the state-
wide partnership described in section 303 to carry
out any of the functions described in subsection (e).
(e) FUNCTIONS OF LOCAL PARTNERSHIP.—The func-
tions of the local partnership shall include—
(1) developing and submitting a local plan as
described in section 309 in partnership with the ap-
propriate chief elected official;
(2) appointing, certifying, or designating one-
stop partners and one-stop customer service center op-
erators, pursuant to the criteria specified in the local
plan;
(3) promoting the participation of private sector
employers in the statewide workforce investment sys-
tem, and ensuring the effective provision through the
system of connecting, brokering, and coaching activi-
ties, through intermediaries such as the entities oper-
ating the one-stop customer service center in the local
211
HR 1385 EAS
area or through other organizations, to assist such
employers in meeting hiring needs;
(4) conducting oversight with respect to the one-
stop customer service system;
(5) modifying the list of eligible providers of
training services pursuant to subsections (b)(3)(B)
and (c)(2)(B) of section 312;
(6) setting local performance measures pursuant
to section 312(b)(2)(D)(ii);
(7) analyzing and identifying—
(A) current and projected local employment
opportunities; and
(B) the skills necessary to obtain such local
employment opportunities;
(8) coordinating the workforce investment activi-
ties carried out in the local area with economic devel-
opment strategies and developing other employer link-
ages with such activities; and
(9) assisting the Governor in developing the
statewide labor market information system described
in section 15(e) of the Wagner-Peyser Act.
(f) SUNSHINE
PROVISION.—The local partnership
shall make available to the public, on a regular basis
through open meetings, information regarding the activities
of the local partnership, including information regarding
212
HR 1385 EAS
membership, the appointment of one-stop partners, the des-
ignation and certification of one-stop customer service cen-
ter operators, and the award of grants and contracts to eli-
gible providers of youth activities.
(g) OTHER ACTIVITIES OF LOCAL PARTNERSHIP.—
(1) LIMITATION.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), no local partnership may di-
rectly carry out or enter into a contract for a
training service described in section 315(c)(3).
(B) WAIVERS.—The Governor of the State
in which the local partnership is located may
grant to the local partnership a written waiver
of the prohibition set forth in subparagraph (A),
if the local partnership provides sufficient evi-
dence that a private or public entity is not
available to provide the training service and that
the activity is necessary to provide an employ-
ment opportunity described in the local plan de-
scribed in section 309.
(2) CONFLICT OF INTEREST.—No member of a
local partnership may—
(A) vote on a matter under consideration by
the local partnership—
213
HR 1385 EAS
(i) regarding the provision of services
by such member (or by an organization that
such member represents); or
(ii) that would provide direct financial
benefit to such member or the immediate
family of such member; or
(B) engage in any other activity determined
by the Governor to constitute a conflict of inter-
est as specified in the State plan.
(h) TECHNICAL ASSISTANCE.—If a local area fails to
meet established State or local performance measures, the
Governor shall provide technical assistance to the local
partnership involved to improve the performance of the
local area.
(i) YOUTH PARTNERSHIP.—
(1) ESTABLISHMENT.—There shall be established
in each local area of a State, a youth partnership ap-
pointed by the local partnership, in cooperation with
the chief elected official, in the local area.
(2) MEMBERSHIP.—The membership of each
youth partnership—
(A) shall include—
(i) 1 or more members of the local
partnership;
214
HR 1385 EAS
(ii) representatives of youth service
agencies, including juvenile justice agencies;
(iii) representatives of local public
housing authorities;
(iv) parents of youth seeking assistance
under this subtitle;
(v) individuals, including former par-
ticipants, and representatives of organiza-
tions, that have experience relating to youth
activities;
(vi) representatives of businesses in the
local area that employ youth; and
(vii) representatives of the Job Corps,
as appropriate; and
(B) may include such other individuals as
the chairperson of the local partnership, in co-
operation with the chief elected official, deter-
mines to be appropriate.
(3) DUTIES.—The duties of the youth partner-
ship include—
(A) the development of the portions of the
local plan relating to youth, as determined by
the chairperson of the local partnership;
(B) subject to the approval of the local part-
nership, awarding grants and contracts to, and
215
HR 1385 EAS
conducting oversight with respect to, eligible pro-
viders of youth activities, as described in section
313, in the local area;
(C) coordinating youth activities in the
local area; and
(D) other duties determined to be appro-
priate by the chairperson of the local partner-
ship.
(j) ALTERNATIVE ENTITY.—
(1) IN
GENERAL.—For purposes of complying
with subsections (a), (c), and (d), and paragraphs (1)
and (2) of subsection (i), a State may use any local
entity (including a local council, regional workforce
development board, or similar entity) that—
(A) is established to serve the local area (or
the service delivery area that most closely cor-
responds to the local area);
(B) is in existence on December 31, 1997;
(C) (i) is established pursuant to section
102 of the Job Training Partnership Act (29
U.S.C. 1512), as in effect on December 31, 1997;
or
(ii) is substantially similar to the local and
youth partnerships described in subsections (a),
216
HR 1385 EAS
(c), and (d), and paragraphs (1) and (2) of sub-
section (i); and
(D) includes—
(i) representatives of business in the
local area; and
(ii)(I) representatives of labor organi-
zations in the local area, for a local area in
which such representatives reside; or
(II) for a local area in which such rep-
resentatives do not reside, other representa-
tives of employees in the local area.
(2) REFERENCES.—References in this Act to a
local partnership or a youth partnership shall be con-
sidered to include such an entity.
SEC. 309. LOCAL PLAN.
(a) IN GENERAL.—Each local partnership shall de-
velop and submit to the Governor a comprehensive 3-year
local plan (referred to in this title as the ‘‘local plan’’), in
partnership with the appropriate chief elected official. The
local plan shall be consistent with the State plan.
(b) CONTENTS.—The local plan shall include—
(1) an identification of the needs of the local
area with regard to current and projected employ-
ment opportunities;
217
HR 1385 EAS
(2) an identification of the job skills necessary to
obtain such employment opportunities;
(3) a description of the activities to be used
under this subtitle to link local employers and local
jobseekers;
(4) an identification and assessment of the type
and availability of adult and dislocated worker em-
ployment and training activities in the local area;
(5) an identification of successful eligible provid-
ers of youth activities in the local area;
(6) a description of the measures that will be
taken by the local area to assure coordination of and
avoid duplication among the programs and activities
described in section 304(b)(9);
(7) a description of the manner in which the
local partnership will coordinate activities carried
out under this subtitle in the local area with such ac-
tivities carried out in neighboring local areas;
(8) a description of the competitive process to be
used to award grants and contracts in the local area
for activities carried out under this subtitle;
(9) information describing local performance
measures for the local area that are based on the per-
formance measures in the State plan;
218
HR 1385 EAS
(10) in accordance with the State plan, a de-
scription of the criteria that the chief elected official
in the local area and the local partnership will use
to appoint, designate, or certify, and to conduct over-
sight with respect to, one-stop customer service center
systems in the local area;
(11) a description of the process used by the local
partnership, consistent with subsection (c), to provide
an opportunity for public comment, including com-
ment by representatives of labor organizations and
businesses, and input into the development of the local
plan, prior to submission of the plan; and
(12) such other information as the Governor may
require.
(c) PROCESS.—Prior to the date on which the local
partnership submits a local plan under this section, the
local partnership shall—
(1) make available copies of a proposed local
plan to the public;
(2) allow members of the local partnership and
members of the public, including representatives of
labor organizations and businesses, to submit com-
ments on the proposed local plan to the local partner-
ship, not later than the end of the 30-day period be-
219
HR 1385 EAS
ginning on the date on which the proposed local plan
is made available; and
(3) include with the local plan submitted to the
Governor under this section any such comments that
represent disagreement with the plan.
(d) PLAN SUBMISSION AND APPROVAL.—A local plan
submitted to the Governor under this section shall be consid-
ered to be approved by the Governor at the end of the 60-
day period beginning on the day the Governor receives the
plan, unless the Governor makes a written determination
during the 60-day period that—
(1) deficiencies in activities carried out under
this subtitle have been identified, through audits con-
ducted under section 374 or otherwise, and the local
area has not made acceptable progress in implement-
ing corrective measures to address the deficiencies; or
(2) the plan does not comply with this title.
(e) LACK OF AGREEMENT.—If the local partnership
and the appropriate chief elected official in the local area
cannot agree on the local plan after making a reasonable
effort, the Governor may develop the local plan.
220
HR 1385 EAS
CHAPTER 3—WORKFORCE INVESTMENT
ACTIVITIES AND PROVIDERS
SEC. 311. IDENTIFICATION AND OVERSIGHT OF ONE-STOP
PARTNERS AND ONE-STOP CUSTOMER SERV-
ICE CENTER OPERATORS.
(a) IN GENERAL.—Consistent with the State plan, the
chief elected official and the local partnership shall develop
and implement operating agreements described in sub-
section (c) to appoint one-stop partners, shall designate or
certify one-stop customer service center operators, and shall
conduct oversight with respect to the one-stop customer serv-
ice system, in the local area.
(b) ONE-STOP PARTNERS.—
(1) DESIGNATED PARTNERS.—
(A) IN GENERAL.—Each entity that carries
out a program, services, or activities described in
subparagraph (B) shall make available to par-
ticipants, through a one-stop customer service
center, the services described in section 315(c)(2)
that are applicable to such program, and shall
participate in the operation of such center as a
party to the agreement described in subsection
(c), consistent with the requirements of the Fed-
eral law in which the program, services, or ac-
tivities are authorized.
221
HR 1385 EAS
(B) PROGRAMS; SERVICES; ACTIVITIES.—
The programs, services, and activities referred to
in subparagraph (A) consist of—
(i) core services authorized under this
subtitle;
(ii) other activities authorized under
this title;
(iii) activities authorized under title I
and title II;
(iv) programs authorized under the
Wagner-Peyser Act (29 U.S.C. 49 et seq.);
(v) programs authorized under title I
of the Rehabilitation Act of 1973 (29 U.S.C.
729 et seq.);
(vi) programs authorized under section
403(a)(5) of the Social Security Act (42
U.S.C. 603(a)(5)) (as added by section 5001
of the Balanced Budget Act of 1997);
(vii) programs authorized under title V
of the Older Americans Act of 1965 (42
U.S.C. 3056 et seq.);
(viii) activities authorized under chap-
ter 2 of title II of the Trade Act of 1974 (19
U.S.C. 2271 et seq.);
222
HR 1385 EAS
(ix) activities authorized under chapter
41 of title 38, United States Code;
(x) training activities carried out by
the Department of Housing and Urban De-
velopment; and
(xi) programs authorized under State
unemployment compensation laws (in ac-
cordance with applicable Federal law).
(2) ADDITIONAL PARTNERS.—
(A) IN GENERAL.—In addition to the enti-
ties described in paragraph (1), other entities
that carry out human resource programs may
make available to participants through a one-
stop customer service center the services described
in section 315(c)(2) that are applicable to such
program, and participate in the operation of
such centers as a party to the agreement de-
scribed in subsection (c), if the local partnership
and chief elected official involved approve such
participation.
(B) PROGRAMS.—The programs referred to
in subparagraph (A) include—
(i) programs authorized under part A
of title IV of the Social Security Act;
223
HR 1385 EAS
(ii) programs authorized under section
6(d)(4) of the Food Stamp Act of 1977 (7
U.S.C. 2015(d)(4));
(iii) work programs authorized under
section 6(o) of the Food Stamp Act of 1977
(7 U.S.C. 2015(o)); and
(iv) other appropriate Federal, State,
or local programs, including programs in
the private sector.
(c) OPERATING AGREEMENTS.—
(1) IN GENERAL.—The one-stop customer service
center operator selected pursuant to subsection (d) for
a one-stop customer service center shall enter into a
written agreement with the local partnership and one-
stop partners described in subsection (b) concerning
the operation of the center. Such agreement shall be
subject to the approval of the chief elected official and
the local partnership.
(2) CONTENTS.—The written agreement required
under paragraph (1) shall contain—
(A) provisions describing—
(i) the services to be provided through
the center;
224
HR 1385 EAS
(ii) how the costs of such services and
the operating costs of the system will be
funded,
(iii) methods for referral of individuals
between the one-stop customer service center
operators and the one-stop partners, for the
appropriate services and activities;
(iv) the monitoring and oversight of
activities carried out under the agreement;
and
(v) the duration of the agreement and
the procedures for amending the agreement
during the term of the agreement; and
(B) such other provisions, consistent with
the requirements of this title, as the parties to
the agreement determine to be appropriate.
(d) ONE-STOP CUSTOMER SERVICE CENTER OPERA-
TORS.—
(1) IN GENERAL.—To be eligible to receive funds
made available under this subtitle to operate a one-
stop customer service center, an entity shall—
(A) be designated or certified as a one-stop
customer service center operator, as described in
subsection (a); and
225
HR 1385 EAS
(B) be a public or private entity, or consor-
tium of entities, of demonstrated effectiveness lo-
cated in the local area, which entity or consor-
tium may include an institution of higher edu-
cation (as defined in section 481 of the Higher
Education Act of 1965 (20 U.S.C. 1088), a local
employment service office established under the
Wagner-Peyser Act (29 U.S.C. 49 et seq.), a local
government agency, a private for-profit entity, a
private nonprofit entity, or other interested en-
tity, of demonstrated effectiveness.
(2) EXCEPTION.—Elementary schools and sec-
ondary schools shall not be eligible for designation or
certification as one-stop customer service center oper-
ators, except that nontraditional public secondary
schools and area vocational education schools shall be
eligible for such designation or certification.
(e) ESTABLISHED ONE-STOP CUSTOMER SERVICE
SYSTEMS.—For a local area in which a one-stop customer
service system has been established prior to the date of en-
actment of this Act, the local partnership, the chief elected
official, and the Governor may agree to appoint, designate,
or certify the one-stop partners and one-stop customer serv-
ice center operators of such system, for purposes of this sec-
tion.
226
HR 1385 EAS
(f) OVERSIGHT.—The local partnership shall conduct
oversight with respect to the one-stop customer service center
system and may terminate for cause the eligibility of such
a partner or operator to provide activities through or oper-
ate a one-stop customer service center.
SEC. 312. DETERMINATION AND IDENTIFICATION OF ELIGI-
BLE PROVIDERS OF TRAINING SERVICES BY
PROGRAM.
(a) GENERAL ELIGIBILITY REQUIREMENTS.—
(1) IN GENERAL.—Except as provided in sub-
section (e), to be eligible to receive funds made avail-
able under section 306 to provide training services de-
scribed in section 315(c)(3) (referred to in this title
as ‘‘training services’’) and be identified as an eligible
provider of such services, a provider of such services
shall meet the requirements of this section.
(2) PROVIDERS.—To be eligible to receive the
funds, the provider shall be—
(A) a postsecondary educational institution
that—
(i) is eligible to receive Federal funds
under title IV of the Higher Education Act
of 1965 (20 U.S.C. 1070 et seq.); and
227
HR 1385 EAS
(ii) provides a program that leads to
an associate degree, baccalaureate degree, or
certificate; or
(B) another public or private provider of a
program.
(b) INITIAL DETERMINATION AND IDENTIFICATION.—
(1) POSTSECONDARY
EDUCATIONAL
INSTITU-
TIONS.—To be eligible to receive funds as described in
subsection (a), an institution described in subsection
(a)(2)(A) shall submit an application at such time,
in such manner, and containing such information as
the designated State agency described in subsection (f)
may require, after consultation with the local part-
nerships in the State. On submission of the applica-
tion, the institution shall automatically be initially
eligible to receive such funds for the program de-
scribed in subsection (a)(2)(A).
(2) OTHER PROVIDERS.—
(A) PROCEDURE.—The Governor, in con-
sultation with the local partnerships in the
State, shall establish a procedure for determining
the initial eligibility of providers described in
subsection (a)(2)(B) to receive such funds for
specified programs. The procedure shall require a
228
HR 1385 EAS
provider of a program to meet minimum accept-
able levels of performance based on—
(i) performance criteria relating to the
rates, percentages, increases, and costs de-
scribed in subparagraph (C) for the pro-
gram, as demonstrated using verifiable pro-
gram-specific performance information de-
scribed in subparagraph (C) and submitted
to the designated State agency, as required
under subparagraph (C); and
(ii) performance criteria relating to
any characteristics for which local partner-
ships request the submission of information
under subparagraph (D) for the program,
as demonstrated using the information sub-
mitted.
(B) 
MINIMUM
LEVELS.—The 
Governor
shall—
(i) consider, in determining such mini-
mum levels—
(I) criteria relating to the eco-
nomic, geographic, and demographic
factors in the local areas in which the
provider provides the program; and
320
HR 1385 EAS
scribed in paragraph (1) for the succeeding 2-
year grant or contract period.
(4) CONTENTS.—Such plan shall—
(A) identify the education and employment
needs of the eligible migrant and seasonal farm-
workers to be served and the manner in which
the workforce investment activities (including
youth activities) to be carried out will strengthen
the ability of the eligible migrant and seasonal
farmworkers to obtain or retain unsubsidized
employment or stabilize their unsubsidized em-
ployment;
(B) describe the related assistance, includ-
ing supportive services, to be provided and the
manner in which such assistance and services
are to be integrated and coordinated with other
appropriate services; and
(C) describe, after consultation with the
Secretary, the performance measures to be used
to assess the performance of such entity in carry-
ing out the activities assisted under this section.
(d) AUTHORIZED ACTIVITIES.—Funds made available
under this section shall be used to carry out workforce in-
vestment activities (including youth activities) and provide
related assistance for eligible migrant and seasonal farm-