H. R. 803 
One Hundred Thirteenth Congress 
of the 
United States of America 
AT THE SECOND SESSION 
Begun and held at the City of Washington on Friday, 
the third day of January, two thousand and fourteen 
An Act 
To amend the Workforce Investment Act of 1998 to strengthen the United States 
workforce development system through innovation in, and alignment and improve-
ment of, employment, training, and education programs in the United States, 
and to promote individual and national economic growth, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Workforce 
Innovation and Opportunity Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for this Act 
is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Purposes. 
Sec. 3. Definitions. 
TITLE I—WORKFORCE DEVELOPMENT ACTIVITIES 
Subtitle A—System Alignment 
CHAPTER 1—STATE PROVISIONS 
Sec. 101. State workforce development boards. 
Sec. 102. Unified State plan. 
Sec. 103. Combined State plan. 
CHAPTER 2—LOCAL PROVISIONS 
Sec. 106. Workforce development areas. 
Sec. 107. Local workforce development boards. 
Sec. 108. Local plan. 
CHAPTER 3—BOARD PROVISIONS 
Sec. 111. Funding of State and local boards. 
CHAPTER 4—PERFORMANCE ACCOUNTABILITY 
Sec. 116. Performance accountability system. 
Subtitle B—Workforce Investment Activities and Providers 
CHAPTER 1—WORKFORCE INVESTMENT ACTIVITIES AND PROVIDERS 
Sec. 121. Establishment of one-stop delivery systems. 
Sec. 122. Identification of eligible providers of training services. 
Sec. 123. Eligible providers of youth workforce investment activities. 
CHAPTER 2—YOUTH WORKFORCE INVESTMENT ACTIVITIES 
Sec. 126. General authorization. 
Sec. 127. State allotments. 
Sec. 128. Within State allocations. 
Sec. 129. Use of funds for youth workforce investment activities. 
CHAPTER 3—ADULT AND DISLOCATED WORKER EMPLOYMENT AND TRAINING 
ACTIVITIES 
Sec. 131. General authorization.
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Sec. 132. State allotments. 
Sec. 133. Within State allocations. 
Sec. 134. Use of funds for employment and training activities. 
CHAPTER 4—GENERAL WORKFORCE INVESTMENT PROVISIONS 
Sec. 136. Authorization of appropriations. 
Subtitle C—Job Corps 
Sec. 141. Purposes. 
Sec. 142. Definitions. 
Sec. 143. Establishment. 
Sec. 144. Individuals eligible for the Job Corps. 
Sec. 145. Recruitment, screening, selection, and assignment of enrollees. 
Sec. 146. Enrollment. 
Sec. 147. Job Corps centers. 
Sec. 148. Program activities. 
Sec. 149. Counseling and job placement. 
Sec. 150. Support. 
Sec. 151. Operations. 
Sec. 152. Standards of conduct. 
Sec. 153. Community participation. 
Sec. 154. Workforce councils. 
Sec. 155. Advisory committees. 
Sec. 156. Experimental projects and technical assistance. 
Sec. 157. Application of provisions of Federal law. 
Sec. 158. Special provisions. 
Sec. 159. Management information. 
Sec. 160. General provisions. 
Sec. 161. Job Corps oversight and reporting. 
Sec. 162. Authorization of appropriations. 
Subtitle D—National Programs 
Sec. 166. Native American programs. 
Sec. 167. Migrant and seasonal farmworker programs. 
Sec. 168. Technical assistance. 
Sec. 169. Evaluations and research. 
Sec. 170. National dislocated worker grants. 
Sec. 171. YouthBuild program. 
Sec. 172. Authorization of appropriations. 
Subtitle E—Administration 
Sec. 181. Requirements and restrictions. 
Sec. 182. Prompt allocation of funds. 
Sec. 183. Monitoring. 
Sec. 184. Fiscal controls; sanctions. 
Sec. 185. Reports; recordkeeping; investigations. 
Sec. 186. Administrative adjudication. 
Sec. 187. Judicial review. 
Sec. 188. Nondiscrimination. 
Sec. 189. Secretarial administrative authorities and responsibilities. 
Sec. 190. Workforce flexibility plans. 
Sec. 191. State legislative authority. 
Sec. 192. Transfer of Federal equity in State employment security agency real prop-
erty to the States. 
Sec. 193. Continuation of State activities and policies. 
Sec. 194. General program requirements. 
Sec. 195. Restrictions on lobbying activities. 
TITLE II—ADULT EDUCATION AND LITERACY 
Sec. 201. Short title. 
Sec. 202. Purpose. 
Sec. 203. Definitions. 
Sec. 204. Home schools. 
Sec. 205. Rule of construction regarding postsecondary transition and concurrent 
enrollment activities. 
Sec. 206. Authorization of appropriations. 
Subtitle A—Federal Provisions 
Sec. 211. Reservation of funds; grants to eligible agencies; allotments. 
Sec. 212. Performance accountability system.
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Subtitle B—State Provisions 
Sec. 221. State administration. 
Sec. 222. State distribution of funds; matching requirement. 
Sec. 223. State leadership activities. 
Sec. 224. State plan. 
Sec. 225. Programs for corrections education and other institutionalized individ-
uals. 
Subtitle C—Local Provisions 
Sec. 231. Grants and contracts for eligible providers. 
Sec. 232. Local application. 
Sec. 233. Local administrative cost limits. 
Subtitle D—General Provisions 
Sec. 241. Administrative provisions. 
Sec. 242. National leadership activities. 
Sec. 243. Integrated English literacy and civics education. 
TITLE III—AMENDMENTS TO THE WAGNER-PEYSER ACT 
Sec. 301. Employment service offices. 
Sec. 302. Definitions. 
Sec. 303. Federal and State employment service offices. 
Sec. 304. Allotment of sums. 
Sec. 305. Use of sums. 
Sec. 306. State plan. 
Sec. 307. Performance measures. 
Sec. 308. Workforce and labor market information system. 
TITLE IV—AMENDMENTS TO THE REHABILITATION ACT OF 1973 
Subtitle A—Introductory Provisions 
Sec. 401. References. 
Sec. 402. Findings, purpose, policy. 
Sec. 403. Rehabilitation Services Administration. 
Sec. 404. Definitions. 
Sec. 405. Administration of the Act. 
Sec. 406. Reports. 
Sec. 407. Evaluation and information. 
Sec. 408. Carryover. 
Sec. 409. Traditionally underserved populations. 
Subtitle B—Vocational Rehabilitation Services 
Sec. 411. Declaration of policy; authorization of appropriations. 
Sec. 412. State plans. 
Sec. 413. Eligibility and individualized plan for employment. 
Sec. 414. Vocational rehabilitation services. 
Sec. 415. State Rehabilitation Council. 
Sec. 416. Evaluation standards and performance indicators. 
Sec. 417. Monitoring and review. 
Sec. 418. Training and services for employers. 
Sec. 419. State allotments. 
Sec. 420. Payments to States. 
Sec. 421. Client assistance program. 
Sec. 422. Pre-employment transition services. 
Sec. 423. American Indian vocational rehabilitation services. 
Sec. 424. Vocational rehabilitation services client information. 
Subtitle C—Research and Training 
Sec. 431. Purpose. 
Sec. 432. Authorization of appropriations. 
Sec. 433. National Institute on Disability, Independent Living, and Rehabilitation 
Research. 
Sec. 434. Interagency committee. 
Sec. 435. Research and other covered activities. 
Sec. 436. Disability, Independent Living, and Rehabilitation Research Advisory 
Council. 
Sec. 437. Definition of covered school. 
Subtitle D—Professional Development and Special Projects and Demonstration 
Sec. 441. Purpose; training.
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Sec. 442. Demonstration, training, and technical assistance programs. 
Sec. 443. Migrant and seasonal farmworkers; recreational programs. 
Subtitle E—National Council on Disability 
Sec. 451. Establishment. 
Sec. 452. Report. 
Sec. 453. Authorization of appropriations. 
Subtitle F—Rights and Advocacy 
Sec. 456. Interagency Committee, Board, and Council. 
Sec. 457. Protection and advocacy of individual rights. 
Sec. 458. Limitations on use of subminimum wage. 
Subtitle G—Employment Opportunities for Individuals With Disabilities 
Sec. 461. Employment opportunities for individuals with disabilities. 
Subtitle H—Independent Living Services and Centers for Independent Living 
CHAPTER 1—INDIVIDUALS WITH SIGNIFICANT DISABILITIES 
SUBCHAPTER A—GENERAL PROVISIONS 
Sec. 471. Purpose. 
Sec. 472. Administration of the independent living program. 
Sec. 473. Definitions. 
Sec. 474. State plan. 
Sec. 475. Statewide Independent Living Council. 
Sec. 475A. Responsibilities of the Administrator. 
SUBCHAPTER B—INDEPENDENT LIVING SERVICES 
Sec. 476. Administration. 
SUBCHAPTER C—CENTERS FOR INDEPENDENT LIVING 
Sec. 481. Program authorization. 
Sec. 482. Centers. 
Sec. 483. Standards and assurances. 
Sec. 484. Authorization of appropriations. 
CHAPTER 2—INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO ARE 
BLIND 
Sec. 486. Independent living services for older individuals who are blind. 
Sec. 487. Program of grants. 
Sec. 488. Independent living services for older individuals who are blind authoriza-
tion of appropriations. 
Subtitle I—General Provisions 
Sec. 491. Transfer of functions regarding independent living to Department of 
Health and Human Services, and savings provisions. 
Sec. 492. Table of contents. 
TITLE V—GENERAL PROVISIONS 
Subtitle A—Workforce Investment 
Sec. 501. Privacy. 
Sec. 502. Buy-American requirements. 
Sec. 503. Transition provisions. 
Sec. 504. Reduction of reporting burdens and requirements. 
Sec. 505. Report on data capability of Federal and State databases and data ex-
change agreements. 
Sec. 506. Effective dates. 
Subtitle B—Amendments to Other Laws 
Sec. 511. Repeal of the Workforce Investment Act of 1998. 
Sec. 512. Conforming amendments. 
Sec. 513. References. 
SEC. 2. PURPOSES. 
The purposes of this Act are the following: 
(1) To increase, for individuals in the United States, 
particularly those individuals with barriers to employment,
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access to and opportunities for the employment, education, 
training, and support services they need to succeed in the 
labor market. 
(2) To support the alignment of workforce investment, edu-
cation, and economic development systems in support of a com-
prehensive, accessible, and high-quality workforce development 
system in the United States. 
(3) To improve the quality and labor market relevance 
of workforce investment, education, and economic development 
efforts to provide America’s workers with the skills and creden-
tials necessary to secure and advance in employment with 
family-sustaining wages and to provide America’s employers 
with the skilled workers the employers need to succeed in 
a global economy. 
(4) To promote improvement in the structure of and 
delivery of services through the United States workforce 
development system to better address the employment and 
skill needs of workers, jobseekers, and employers. 
(5) To increase the prosperity of workers and employers 
in the United States, the economic growth of communities, 
regions, and States, and the global competitiveness of the 
United States. 
(6) For purposes of subtitle A and B of title I, to provide 
workforce investment activities, through statewide and local 
workforce development systems, that increase the employment, 
retention, and earnings of participants, and increase attainment 
of recognized postsecondary credentials by participants, and 
as a result, improve the quality of the workforce, reduce welfare 
dependency, increase economic self-sufficiency, meet the skill 
requirements of employers, and enhance the productivity and 
competitiveness of the Nation. 
SEC. 3. DEFINITIONS. 
In this Act, and the core program provisions that are not 
in this Act, except as otherwise expressly provided: 
(1) ADMINISTRATIVE
COSTS.—The term ‘‘administrative 
costs’’ means expenditures incurred by State boards and local 
boards, direct recipients (including State grant recipients under 
subtitle B of title I and recipients of awards under subtitles 
C and D of title I), local grant recipients, local fiscal agents 
or local grant subrecipients, and one-stop operators in the 
performance of administrative functions and in carrying out 
activities under title I that are not related to the direct provi-
sion of workforce investment services (including services to 
participants and employers). Such costs include both personnel 
and nonpersonnel costs and both direct and indirect costs. 
(2) ADULT.—Except as otherwise specified in section 132, 
the term ‘‘adult’’ means an individual who is age 18 or older. 
(3) ADULT
EDUCATION; ADULT
EDUCATION
AND
LITERACY 
ACTIVITIES.—The terms ‘‘adult education’’ and ‘‘adult education 
and literacy activities’’ have the meanings given the terms 
in section 203. 
(4) AREA
CAREER
AND
TECHNICAL
EDUCATION
SCHOOL.— 
The term ‘‘area career and technical education school’’ has 
the meaning given the term in section 3 of the Carl D. Perkins 
Career and Technical Education Act of 2006 (20 U.S.C. 2302).
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(5) BASIC SKILLS DEFICIENT.—The term ‘‘basic skills defi-
cient’’ means, with respect to an individual— 
(A) who is a youth, that the individual has English 
reading, writing, or computing skills at or below the 8th 
grade level on a generally accepted standardized test; or 
(B) who is a youth or adult, that the individual is 
unable to compute or solve problems, or read, write, or 
speak English, at a level necessary to function on the 
job, in the individual’s family, or in society. 
(6) CAREER AND TECHNICAL EDUCATION.—The term ‘‘career 
and technical education’’ has the meaning given the term in 
section 3 of the Carl D. Perkins Career and Technical Education 
Act of 2006 (20 U.S.C. 2302). 
(7) CAREER PATHWAY.—The term ‘‘career pathway’’ means 
a combination of rigorous and high-quality education, training, 
and other services that— 
(A) aligns with the skill needs of industries in the 
economy of the State or regional economy involved; 
(B) prepares an individual to be successful in any 
of a full range of secondary or postsecondary education 
options, including apprenticeships registered under the Act 
of August 16, 1937 (commonly known as the ‘‘National 
Apprenticeship Act’’; 50 Stat. 664, chapter 663; 29 U.S.C. 
50 et seq.) (referred to individually in this Act as an 
‘‘apprenticeship’’, except in section 171); 
(C) includes counseling to support an individual in 
achieving the individual’s education and career goals; 
(D) includes, as appropriate, education offered concur-
rently with and in the same context as workforce prepara-
tion activities and training for a specific occupation or 
occupational cluster; 
(E) organizes education, training, and other services 
to meet the particular needs of an individual in a manner 
that accelerates the educational and career advancement 
of the individual to the extent practicable; 
(F) enables an individual to attain a secondary school 
diploma or its recognized equivalent, and at least 1 recog-
nized postsecondary credential; and 
(G) helps an individual enter or advance within a 
specific occupation or occupational cluster. 
(8) CAREER PLANNING.—The term ‘‘career planning’’ means 
the provision of a client-centered approach in the delivery of 
services, designed— 
(A) to prepare and coordinate comprehensive employ-
ment plans, such as service strategies, for participants 
to ensure access to necessary workforce investment activi-
ties and supportive services, using, where feasible, com-
puter-based technologies; and 
(B) to provide job, education, and career counseling, 
as appropriate during program participation and after job 
placement. 
(9) CHIEF ELECTED OFFICIAL.—The term ‘‘chief elected offi-
cial’’ means— 
(A) the chief elected executive officer of a unit of gen-
eral local government in a local area; and 
(B) in a case in which a local area includes more 
than 1 unit of general local government, the individuals
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designated under the agreement described in section 
107(c)(1)(B). 
(10) COMMUNITY-BASED ORGANIZATION.—The term ‘‘commu-
nity-based organization’’ means a private nonprofit organization 
(which may include a faith-based organization), that is rep-
resentative of a community or a significant segment of a 
community and that has demonstrated expertise and effective-
ness in the field of workforce development. 
(11) COMPETITIVE
INTEGRATED
EMPLOYMENT.—The term 
‘‘competitive integrated employment’’ has the meaning given 
the term in section 7 of the Rehabilitation Act of 1973 (29 
U.S.C. 705), for individuals with disabilities. 
(12) CORE
PROGRAM.—The term ‘‘core programs’’ means 
a program authorized under a core program provision. 
(13) CORE PROGRAM PROVISION.—The term ‘‘core program 
provision’’ means— 
(A) chapters 2 and 3 of subtitle B of title I (relating 
to youth workforce investment activities and adult and 
dislocated worker employment and training activities); 
(B) title II (relating to adult education and literacy 
activities); 
(C) sections 1 through 13 of the Wagner-Peyser Act 
(29 U.S.C. 49 et seq.) (relating to employment services); 
and 
(D) title I of the Rehabilitation Act of 1973 (29 U.S.C. 
720 et seq.), other than section 112 or part C of that 
title (29 U.S.C. 732, 741) (relating to vocational rehabilita-
tion services). 
(14) 
CUSTOMIZED
TRAINING.—The 
term 
‘‘customized 
training’’ means training— 
(A) that is designed to meet the specific requirements 
of an employer (including a group of employers); 
(B) that is conducted with a commitment by the 
employer to employ an individual upon successful comple-
tion of the training; and 
(C) for which the employer pays— 
(i) a significant portion of the cost of training, 
as determined by the local board involved, taking into 
account the size of the employer and such other factors 
as the local board determines to be appropriate, which 
may include the number of employees participating 
in training, wage and benefit levels of those employees 
(at present and anticipated upon completion of the 
training), relation of the training to the competitive-
ness of a participant, and other employer-provided 
training and advancement opportunities; and 
(ii) in the case of customized training (as defined 
in subparagraphs (A) and (B)) involving an employer 
located in multiple local areas in the State, a signifi-
cant portion of the cost of the training, as determined 
by the Governor of the State, taking into account the 
size of the employer and such other factors as the 
Governor determines to be appropriate. 
(15) DISLOCATED WORKER.—The term ‘‘dislocated worker’’ 
means an individual who— 
(A)(i) has been terminated or laid off, or who has 
received a notice of termination or layoff, from employment;
H. R. 803—8 
(ii)(I) is eligible for or has exhausted entitlement to 
unemployment compensation; or 
(II) has been employed for a duration sufficient to 
demonstrate, to the appropriate entity at a one-stop center 
referred to in section 121(e), attachment to the workforce, 
but is not eligible for unemployment compensation due 
to insufficient earnings or having performed services for 
an employer that were not covered under a State unemploy-
ment compensation law; and 
(iii) is unlikely to return to a previous industry or 
occupation; 
(B)(i) has been terminated or laid off, or has received 
a notice of termination or layoff, from employment as a 
result of any permanent closure of, or any substantial 
layoff at, a plant, facility, or enterprise; 
(ii) is employed at a facility at which the employer 
has made a general announcement that such facility will 
close within 180 days; or 
(iii) for purposes of eligibility to receive services other 
than training services described in section 134(c)(3), career 
services described in section 134(c)(2)(A)(xii), or supportive 
services, is employed at a facility at which the employer 
has made a general announcement that such facility will 
close; 
(C) was self-employed (including employment as a 
farmer, a rancher, or a fisherman) but is unemployed as 
a result of general economic conditions in the community 
in which the individual resides or because of natural disas-
ters; 
(D) is a displaced homemaker; or 
(E)(i) is the spouse of a member of the Armed Forces 
on active duty (as defined in section 101(d)(1) of title 10, 
United States Code), and who has experienced a loss of 
employment as a direct result of relocation to accommodate 
a permanent change in duty station of such member; or 
(ii) is the spouse of a member of the Armed Forces 
on active duty and who meets the criteria described in 
paragraph (16)(B). 
(16) DISPLACED HOMEMAKER.—The term ‘‘displaced home-
maker’’ means an individual who has been providing unpaid 
services to family members in the home and who— 
(A)(i) has been dependent on the income of another 
family member but is no longer supported by that income; 
or 
(ii) is the dependent spouse of a member of the Armed 
Forces on active duty (as defined in section 101(d)(1) of 
title 10, United States Code) and whose family income 
is significantly reduced because of a deployment (as defined 
in section 991(b) of title 10, United States Code, or pursu-
ant to paragraph (4) of such section), a call or order to 
active duty pursuant to a provision of law referred to 
in section 101(a)(13)(B) of title 10, United States Code, 
a permanent change of station, or the service-connected 
(as defined in section 101(16) of title 38, United States 
Code) death or disability of the member; and 
(B) is unemployed or underemployed and is experi-
encing difficulty in obtaining or upgrading employment.
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(17) ECONOMIC
DEVELOPMENT
AGENCY.—The term ‘‘eco-
nomic development agency’’ includes a local planning or zoning 
commission or board, a community development agency, or 
another local agency or institution responsible for regulating, 
promoting, or assisting in local economic development. 
(18) ELIGIBLE YOUTH.—Except as provided in subtitles C 
and D of title I, the term ‘‘eligible youth’’ means an in-school 
youth or out-of-school youth. 
(19) EMPLOYMENT
AND
TRAINING
ACTIVITY.—The term 
‘‘employment and training activity’’ means an activity described 
in section 134 that is carried out for an adult or dislocated 
worker. 
(20) ENGLISH LANGUAGE ACQUISITION PROGRAM.—The term 
‘‘English language acquisition program’’ has the meaning given 
the term in section 203. 
(21) ENGLISH LANGUAGE LEARNER.—The term ‘‘English lan-
guage learner’’ has the meaning given the term in section 
203. 
(22) GOVERNOR.—The term ‘‘Governor’’ means the chief 
executive of a State or an outlying area. 
(23) IN-DEMAND INDUSTRY SECTOR OR OCCUPATION.— 
(A) IN GENERAL.—The term ‘‘in-demand industry sector 
or occupation’’ means— 
(i) an industry sector that has a substantial cur-
rent or potential impact (including through jobs that 
lead to economic self-sufficiency and opportunities for 
advancement) on the State, regional, or local economy, 
as appropriate, and that contributes to the growth 
or stability of other supporting businesses, or the 
growth of other industry sectors; or 
(ii) an occupation that currently has or is projected 
to have a number of positions (including positions that 
lead to economic self-sufficiency and opportunities for 
advancement) in an industry sector so as to have a 
significant impact on the State, regional, or local 
economy, as appropriate. 
(B) DETERMINATION.—The determination of whether 
an industry sector or occupation is in-demand under this 
paragraph shall be made by the State board or local board, 
as appropriate, using State and regional business and labor 
market projections, including the use of labor market 
information. 
(24) INDIVIDUAL WITH A BARRIER TO EMPLOYMENT.—The 
term ‘‘individual with a barrier to employment’’ means a 
member of 1 or more of the following populations: 
(A) Displaced homemakers. 
(B) Low-income individuals. 
(C) Indians, Alaska Natives, and Native Hawaiians, 
as such terms are defined in section 166. 
(D) Individuals with disabilities, including youth who 
are individuals with disabilities. 
(E) Older individuals. 
(F) Ex-offenders. 
(G) Homeless individuals (as defined in section 
41403(6) of the Violence Against Women Act of 1994 (42 
U.S.C. 14043e–2(6))), or homeless children and youths (as
H. R. 803—10 
defined in section 725(2) of the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11434a(2))). 
(H) Youth who are in or have aged out of the foster 
care system. 
(I) Individuals who are English language learners, 
individuals who have low levels of literacy, and individuals 
facing substantial cultural barriers. 
(J) Eligible migrant and seasonal farmworkers, as 
defined in section 167(i). 
(K) Individuals within 2 years of exhausting lifetime 
eligibility under part A of title IV of the Social Security 
Act (42 U.S.C. 601 et seq.). 
(L) Single parents (including single pregnant women). 
(M) Long-term unemployed individuals. 
(N) Such other groups as the Governor involved deter-
mines to have barriers to employment. 
(25) INDIVIDUAL WITH A DISABILITY.— 
(A) IN
GENERAL.—The term ‘‘individual with a dis-
ability’’ means an individual with a disability as defined 
in section 3 of the Americans with Disabilities Act of 1990 
(42 U.S.C. 12102). 
(B) 
INDIVIDUALS
WITH
DISABILITIES.—The 
term 
‘‘individuals with disabilities’’ means more than 1 indi-
vidual with a disability. 
(26) 
INDUSTRY
OR
SECTOR
PARTNERSHIP.—The 
term 
‘‘industry or sector partnership’’ means a workforce collabo-
rative, convened by or acting in partnership with a State board 
or local board, that— 
(A) organizes key stakeholders in an industry cluster 
into a working group that focuses on the shared goals 
and human resources needs of the industry cluster and 
that includes, at the appropriate stage of development of 
the partnership— 
(i) representatives of multiple businesses or other 
employers in the industry cluster, including small and 
medium-sized employers when practicable; 
(ii) 1 or more representatives of a recognized State 
labor organization or central labor council, or another 
labor representative, as appropriate; and 
(iii) 1 or more representatives of an institution 
of higher education with, or another provider of, edu-
cation or training programs that support the industry 
cluster; and 
(B) may include representatives of— 
(i) State or local government; 
(ii) State or local economic development agencies; 
(iii) State boards or local boards, as appropriate; 
(iv) a State workforce agency or other entity pro-
viding employment services; 
(v) other State or local agencies; 
(vi) business or trade associations; 
(vii) economic development organizations; 
(viii) nonprofit organizations, community-based 
organizations, or intermediaries; 
(ix) philanthropic organizations; 
(x) industry associations; and
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(xi) other organizations, as determined to be nec-
essary by the members comprising the industry or 
sector partnership. 
(27) IN-SCHOOL YOUTH.—The term ‘‘in-school youth’’ means 
a youth described in section 129(a)(1)(C). 
(28) INSTITUTION
OF
HIGHER
EDUCATION.—The term 
‘‘institution of higher education’’ has the meaning given the 
term in section 101, and subparagraphs (A) and (B) of section 
102(a)(1), of the Higher Education Act of 1965 (20 U.S.C. 1001, 
1002(a)(1)). 
(29) INTEGRATED
EDUCATION
AND
TRAINING.—The term 
‘‘integrated education and training’’ has the meaning given 
the term in section 203. 
(30) LABOR MARKET AREA.—The term ‘‘labor market area’’ 
means an economically integrated geographic area within which 
individuals can reside and find employment within a reasonable 
distance or can readily change employment without changing 
their place of residence. Such an area shall be identified in 
accordance with criteria used by the Bureau of Labor Statistics 
of the Department of Labor in defining such areas or similar 
criteria established by a Governor. 
(31) LITERACY.—The term ‘‘literacy’’ has the meaning given 
the term in section 203. 
(32) LOCAL AREA.—The term ‘‘local area’’ means a local 
workforce investment area designated under section 106, sub-
ject to sections 106(c)(3)(A), 107(c)(4)(B)(i), and 189(i). 
(33) LOCAL BOARD.—The term ‘‘local board’’ means a local 
workforce development board established under section 107, 
subject to section 107(c)(4)(B)(i). 
(34) LOCAL EDUCATIONAL AGENCY.—The term ‘‘local edu-
cational agency’’ has the meaning given the term in section 
9101 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 7801). 
(35) LOCAL PLAN.—The term ‘‘local plan’’ means a plan 
submitted under section 108, subject to section 106(c)(3)(B). 
(36) LOW-INCOME INDIVIDUAL.— 
(A) IN
GENERAL.—The term ‘‘low-income individual’’ 
means an individual who— 
(i) receives, or in the past 6 months has received, 
or is a member of a family that is receiving or in 
the past 6 months has received, assistance through 
the supplemental nutrition assistance program estab-
lished under the Food and Nutrition Act of 2008 (7 
U.S.C. 2011 et seq.), the program of block grants to 
States for temporary assistance for needy families pro-
gram under part A of title IV of the Social Security 
Act (42 U.S.C. 601 et seq.), or the supplemental secu-
rity income program established under title XVI of 
the Social Security Act (42 U.S.C. 1381 et seq.), or 
State or local income-based public assistance; 
(ii) is in a family with total family income that 
does not exceed the higher of— 
(I) the poverty line; or 
(II) 70 percent of the lower living standard 
income level; 
(iii) is a homeless individual (as defined in section 
41403(6) of the Violence Against Women Act of 1994
H. R. 803—12 
(42 U.S.C. 14043e–2(6))), or a homeless child or youth 
(as defined under section 725(2) of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11434a(2))); 
(iv) receives or is eligible to receive a free or 
reduced price lunch under the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1751 et seq.); 
(v) is a foster child on behalf of whom State or 
local government payments are made; or 
(vi) is an individual with a disability whose own 
income meets the income requirement of clause (ii), 
but who is a member of a family whose income does 
not meet this requirement. 
(B) LOWER LIVING STANDARD INCOME LEVEL.—The term 
‘‘lower living standard income level’’ means that income 
level (adjusted for regional, metropolitan, urban, and rural 
differences and family size) determined annually by the 
Secretary of Labor based on the most recent lower living 
family budget issued by the Secretary. 
(37) NONTRADITIONAL EMPLOYMENT.—The term ‘‘nontradi-
tional employment’’ refers to occupations or fields of work, 
for which individuals from the gender involved comprise less 
than 25 percent of the individuals employed in each such 
occupation or field of work. 
(38) OFFENDER.—The term ‘‘offender’’ means an adult or 
juvenile— 
(A) who is or has been subject to any stage of the 
criminal justice process, and for whom services under this 
Act may be beneficial; or 
(B) who requires assistance in overcoming artificial 
barriers to employment resulting from a record of arrest 
or conviction. 
(39) OLDER
INDIVIDUAL.—The term ‘‘older individual’’ 
means an individual age 55 or older. 
(40) ONE-STOP CENTER.—The term ‘‘one-stop center’’ means 
a site described in section 121(e)(2). 
(41) ONE-STOP OPERATOR.—The term ‘‘one-stop operator’’ 
means 1 or more entities designated or certified under section 
121(d). 
(42) ONE-STOP
PARTNER.—The term ‘‘one-stop partner’’ 
means— 
(A) an entity described in section 121(b)(1); and 
(B) an entity described in section 121(b)(2) that is 
participating, with the approval of the local board and 
chief elected official, in the operation of a one-stop delivery 
system. 
(43) ONE-STOP
PARTNER
PROGRAM.—The term ‘‘one-stop 
partner program’’ means a program or activities described in 
section 121(b) of a one-stop partner. 
(44) ON-THE-JOB TRAINING.—The term ‘‘on-the-job training’’ 
means training by an employer that is provided to a paid 
participant while engaged in productive work in a job that— 
(A) provides knowledge or skills essential to the full 
and adequate performance of the job; 
(B) is made available through a program that provides 
reimbursement to the employer of up to 50 percent of 
the wage rate of the participant, except as provided in 
section 134(c)(3)(H), for the extraordinary costs of providing
H. R. 803—13 
the training and additional supervision related to the 
training; and 
(C) is limited in duration as appropriate to the occupa-
tion for which the participant is being trained, taking into 
account the content of the training, the prior work experi-
ence of the participant, and the service strategy of the 
participant, as appropriate. 
(45) OUTLYING AREA.—The term ‘‘outlying area’’ means— 
(A) American Samoa, Guam, the Commonwealth of 
the Northern Mariana Islands, and the United States 
Virgin Islands; and 
(B) the Republic of Palau, except during any period 
for which the Secretary of Labor and the Secretary of 
Education determine that a Compact of Free Association 
is in effect and contains provisions for training and edu-
cation assistance prohibiting the assistance provided under 
this Act. 
(46) OUT-OF-SCHOOL
YOUTH.—The term ‘‘out-of-school 
youth’’ means a youth described in section 129(a)(1)(B). 
(47) PAY-FOR-PERFORMANCE
CONTRACT
STRATEGY.—The 
term ‘‘pay-for-performance contract strategy’’ means a procure-
ment strategy that uses pay-for-performance contracts in the 
provision of training services described in section 134(c)(3) or 
activities described in section 129(c)(2), and includes— 
(A) contracts, each of which shall specify a fixed 
amount that will be paid to an eligible service provider 
(which may include a local or national community-based 
organization or intermediary, community college, or other 
training provider, that is eligible under section 122 or 
123, as appropriate) based on the achievement of specified 
levels of performance on the primary indicators of perform-
ance described in section 116(b)(2)(A) for target populations 
as identified by the local board (including individuals with 
barriers to employment), within a defined timetable, and 
which may provide for bonus payments to such service 
provider to expand capacity to provide effective training; 
(B) a strategy for independently validating the achieve-
ment of the performance described in subparagraph (A); 
and 
(C) a description of how the State or local area will 
reallocate funds not paid to a provider because the achieve-
ment of the performance described in subparagraph (A) 
did not occur, for further activities related to such a 
procurement strategy, subject to section 189(g)(4). 
(48) PLANNING REGION.—The term ‘‘planning region’’ means 
a region described in subparagraph (B) or (C) of section 
106(a)(2), subject to section 107(c)(4)(B)(i). 
(49) POVERTY LINE.—The term ‘‘poverty line’’ means the 
poverty line (as defined by the Office of Management and 
Budget, and revised annually in accordance with section 673(2) 
of the Community Services Block Grant Act (42 U.S.C. 9902(2))) 
applicable to a family of the size involved. 
(50) PUBLIC
ASSISTANCE.—The term ‘‘public assistance’’ 
means Federal, State, or local government cash payments for 
which eligibility is determined by a needs or income test. 
(51) RAPID RESPONSE ACTIVITY.—The term ‘‘rapid response 
activity’’ means an activity provided by a State, or by an entity
H. R. 803—14 
designated by a State, with funds provided by the State under 
section 134(a)(1)(A), in the case of a permanent closure or 
mass layoff at a plant, facility, or enterprise, or a natural 
or other disaster, that results in mass job dislocation, in order 
to assist dislocated workers in obtaining reemployment as soon 
as possible, with services including— 
(A) the establishment of onsite contact with employers 
and employee representatives— 
(i) immediately after the State is notified of a 
current or projected permanent closure or mass layoff; 
or 
(ii) in the case of a disaster, immediately after 
the State is made aware of mass job dislocation as 
a result of such disaster; 
(B) the provision of information on and access to avail-
able employment and training activities; 
(C) assistance in establishing a labor-management 
committee, voluntarily agreed to by labor and management, 
with the ability to devise and implement a strategy for 
assessing the employment and training needs of dislocated 
workers and obtaining services to meet such needs; 
(D) the provision of emergency assistance adapted to 
the particular closure, layoff, or disaster; and 
(E) the provision of assistance to the local community 
in developing a coordinated response and in obtaining 
access to State economic development assistance. 
(52) RECOGNIZED POSTSECONDARY CREDENTIAL.—The term 
‘‘recognized postsecondary credential’’ means a credential con-
sisting of an industry-recognized certificate or certification, a 
certificate of completion of an apprenticeship, a license recog-
nized by the State involved or Federal Government, or an 
associate or baccalaureate degree. 
(53) REGION.—The term ‘‘region’’, used without further 
description, means a region identified under section 106(a), 
subject to section 107(c)(4)(B)(i) and except as provided in sec-
tion 106(b)(1)(B)(ii). 
(54) SCHOOL DROPOUT.—The term ‘‘school dropout’’ means 
an individual who is no longer attending any school and who 
has not received a secondary school diploma or its recognized 
equivalent. 
(55) SECONDARY SCHOOL.—The term ‘‘secondary school’’ has 
the meaning given the term in section 9101 of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 7801). 
(56) STATE.—The term ‘‘State’’ means each of the several 
States of the United States, the District of Columbia, and 
the Commonwealth of Puerto Rico. 
(57) STATE BOARD.—The term ‘‘State board’’ means a State 
workforce development board established under section 101. 
(58) STATE PLAN.—The term ‘‘State plan’’, used without 
further description, means a unified State plan under section 
102 or a combined State plan under section 103. 
(59) SUPPORTIVE SERVICES.—The term ‘‘supportive services’’ 
means services such as transportation, child care, dependent 
care, housing, and needs-related payments, that are necessary 
to enable an individual to participate in activities authorized 
under this Act.
H. R. 803—15 
(60) TRAINING
SERVICES.—The term ‘‘training services’’ 
means services described in section 134(c)(3). 
(61) UNEMPLOYED
INDIVIDUAL.—The term ‘‘unemployed 
individual’’ means an individual who is without a job and 
who wants and is available for work. The determination of 
whether an individual is without a job, for purposes of this 
paragraph, shall be made in accordance with the criteria used 
by the Bureau of Labor Statistics of the Department of Labor 
in defining individuals as unemployed. 
(62) UNIT
OF
GENERAL
LOCAL
GOVERNMENT.—The term 
‘‘unit of general local government’’ means any general purpose 
political subdivision of a State that has the power to levy 
taxes and spend funds, as well as general corporate and police 
powers. 
(63) VETERAN; RELATED DEFINITION.— 
(A) VETERAN.—The term ‘‘veteran’’ has the meaning 
given the term in section 101 of title 38, United States 
Code. 
(B) 
RECENTLY
SEPARATED
VETERAN.—The 
term 
‘‘recently separated veteran’’ means any veteran who 
applies for participation under this Act within 48 months 
after the discharge or release from active military, naval, 
or air service. 
(64) VOCATIONAL
REHABILITATION
PROGRAM.—The term 
‘‘vocational rehabilitation program’’ means a program author-
ized under a provision covered under paragraph (13)(D). 
(65) 
WORKFORCE
DEVELOPMENT
ACTIVITY.—The 
term 
‘‘workforce development activity’’ means an activity carried out 
through a workforce development program. 
(66) WORKFORCE
DEVELOPMENT
PROGRAM.—The term 
‘‘workforce development program’’ means a program made avail-
able through a workforce development system. 
(67) 
WORKFORCE
DEVELOPMENT
SYSTEM.—The 
term 
‘‘workforce development system’’ means a system that makes 
available the core programs, the other one-stop partner pro-
grams, and any other programs providing employment and 
training services as identified by a State board or local board. 
(68) 
WORKFORCE
INVESTMENT
ACTIVITY.—The 
term 
‘‘workforce investment activity’’ means an employment and 
training activity, and a youth workforce investment activity. 
(69) WORKFORCE
PREPARATION
ACTIVITIES.—The term 
‘‘workforce preparation activities’’ has the meaning given the 
term in section 203. 
(70) WORKPLACE LEARNING ADVISOR.—The term ‘‘workplace 
learning advisor’’ means an individual employed by an organiza-
tion who has the knowledge and skills necessary to advise 
other employees of that organization about the education, skill 
development, job training, career counseling services, and 
credentials, including services provided through the workforce 
development system, required to progress toward career goals 
of such employees in order to meet employer requirements 
related to job openings and career advancements that support 
economic self-sufficiency. 
(71) YOUTH WORKFORCE INVESTMENT ACTIVITY.—The term 
‘‘youth workforce investment activity’’ means an activity 
described in section 129 that is carried out for eligible youth 
(or as described in section 129(a)(3)(A)).
H. R. 803—16 
TITLE I—WORKFORCE DEVELOPMENT 
ACTIVITIES 
Subtitle A—System Alignment 
CHAPTER 1—STATE PROVISIONS 
SEC. 101. STATE WORKFORCE DEVELOPMENT BOARDS. 
(a) IN GENERAL.—The Governor of a State shall establish a 
State workforce development board to carry out the functions 
described in subsection (d). 
(b) MEMBERSHIP.— 
(1) IN GENERAL.—The State board shall include— 
(A) the Governor; 
(B) a member of each chamber of the State legislature 
(to the extent consistent with State law), appointed by 
the appropriate presiding officers of such chamber; and 
(C) members appointed by the Governor, of which— 
(i) a majority shall be representatives of businesses 
in the State, who— 
(I) are owners of businesses, chief executives 
or operating officers of businesses, or other busi-
ness executives or employers with optimum policy-
making or hiring authority, and who, in addition, 
may be members of a local board described in 
section 107(b)(2)(A)(i); 
(II) represent businesses (including small 
businesses), 
or 
organizations 
representing 
businesses described in this subclause, that pro-
vide employment opportunities that, at a min-
imum, include high-quality, work-relevant training 
and development in in-demand industry sectors 
or occupations in the State; and 
(III) are appointed from among individuals 
nominated by State business organizations and 
business trade associations; 
(ii) not less than 20 percent shall be representa-
tives of the workforce within the State, who— 
(I) shall include representatives of labor 
organizations, who have been nominated by State 
labor federations; 
(II) shall include a representative, who shall 
be a member of a labor organization or a training 
director, 
from 
a 
joint 
labor-management 
apprenticeship program, or if no such joint pro-
gram exists in the State, such a representative 
of an apprenticeship program in the State; 
(III) may include representatives of commu-
nity-based organizations that have demonstrated 
experience and expertise in addressing the employ-
ment, training, or education needs of individuals 
with barriers to employment, including organiza-
tions that serve veterans or that provide or support 
competitive, integrated employment for individuals 
with disabilities; and
H. R. 803—17 
(IV) may include representatives of organiza-
tions that have demonstrated experience and 
expertise in addressing the employment, training, 
or education needs of eligible youth, including rep-
resentatives of organizations that serve out-of- 
school youth; and 
(iii) the balance— 
(I) shall include representatives of govern-
ment, who— 
(aa) shall include the lead State officials 
with primary responsibility for the core pro-
grams; and 
(bb) shall include chief elected officials 
(collectively representing both cities and coun-
ties, where appropriate); and 
(II) may include such other representatives 
and officials as the Governor may designate, such 
as— 
(aa) the State agency officials from agen-
cies that are one-stop partners not specified 
in subclause (I) (including additional one-stop 
partners whose programs are covered by the 
State plan, if any); 
(bb) State agency officials responsible for 
economic development or juvenile justice pro-
grams in the State; 
(cc) individuals who represent an Indian 
tribe or tribal organization, as such terms are 
defined in section 166(b); and 
(dd) State agency officials responsible for 
education programs in the State, including 
chief executive officers of community colleges 
and other institutions of higher education. 
(2) DIVERSE AND DISTINCT REPRESENTATION.—The members 
of the State board shall represent diverse geographic areas 
of the State, including urban, rural, and suburban areas. 
(3) NO REPRESENTATION OF MULTIPLE CATEGORIES.—No per-
son shall serve as a member for more than 1 of— 
(A) the category described in paragraph (1)(C)(i); or 
(B) 1 category described in a subclause of clause (ii) 
or (iii) of paragraph (1)(C). 
(c) CHAIRPERSON.—The Governor shall select a chairperson for 
the State board from among the representatives described in sub-
section (b)(1)(C)(i). 
(d) FUNCTIONS.—The State board shall assist the Governor 
in— 
(1) the development, implementation, and modification of 
the State plan; 
(2) consistent with paragraph (1), the review of statewide 
policies, of statewide programs, and of recommendations on 
actions that should be taken by the State to align workforce 
development programs in the State in a manner that supports 
a comprehensive and streamlined workforce development 
system in the State, including the review and provision of 
comments on the State plans, if any, for programs and activities 
of one-stop partners that are not core programs;
H. R. 803—18 
(3) the development and continuous improvement of the 
workforce development system in the State, including— 
(A) the identification of barriers and means for 
removing barriers to better coordinate, align, and avoid 
duplication among the programs and activities carried out 
through the system; 
(B) the development of strategies to support the use 
of career pathways for the purpose of providing individuals, 
including low-skilled adults, youth, and individuals with 
barriers to employment (including individuals with disabil-
ities), with workforce investment activities, education, and 
supportive services to enter or retain employment; 
(C) the development of strategies for providing effective 
outreach to and improved access for individuals and 
employers who could benefit from services provided through 
the workforce development system; 
(D) the development and expansion of strategies for 
meeting the needs of employers, workers, and jobseekers, 
particularly through industry or sector partnerships related 
to in-demand industry sectors and occupations; 
(E) the identification of regions, including planning 
regions, for the purposes of section 106(a), and the designa-
tion of local areas under section 106, after consultation 
with local boards and chief elected officials; 
(F) the development and continuous improvement of 
the one-stop delivery system in local areas, including pro-
viding assistance to local boards, one-stop operators, one- 
stop partners, and providers with planning and delivering 
services, including training services and supportive serv-
ices, to support effective delivery of services to workers, 
jobseekers, and employers; and 
(G) the development of strategies to support staff 
training and awareness across programs supported under 
the workforce development system; 
(4) the development and updating of comprehensive State 
performance accountability measures, including State adjusted 
levels of performance, to assess the effectiveness of the core 
programs in the State as required under section 116(b); 
(5) the identification and dissemination of information on 
best practices, including best practices for— 
(A) the effective operation of one-stop centers, relating 
to the use of business outreach, partnerships, and service 
delivery strategies, including strategies for serving individ-
uals with barriers to employment; 
(B) the development of effective local boards, which 
may include information on factors that contribute to 
enabling local boards to exceed negotiated local levels of 
performance, sustain fiscal integrity, and achieve other 
measures of effectiveness; and 
(C) effective training programs that respond to real- 
time labor market analysis, that effectively use direct 
assessment and prior learning assessment to measure an 
individual’s prior knowledge, skills, competencies, and 
experiences, and that evaluate such skills, and com-
petencies for adaptability, to support efficient placement 
into employment or career pathways;
H. R. 803—19 
(6) the development and review of statewide policies 
affecting the coordinated provision of services through the 
State’s one-stop delivery system described in section 121(e), 
including the development of— 
(A) objective criteria and procedures for use by local 
boards in assessing the effectiveness and continuous 
improvement of one-stop centers described in such section; 
(B) guidance for the allocation of one-stop center infra-
structure funds under section 121(h); and 
(C) policies relating to the appropriate roles and con-
tributions of entities carrying out one-stop partner pro-
grams within the one-stop delivery system, including 
approaches to facilitating equitable and efficient cost alloca-
tion in such system; 
(7) the development of strategies for technological improve-
ments to facilitate access to, and improve the quality of, services 
and activities provided through the one-stop delivery system, 
including such improvements to— 
(A) enhance digital literacy skills (as defined in section 
202 of the Museum and Library Services Act (20 U.S.C. 
9101); referred to in this Act as ‘‘digital literacy skills’’); 
(B) accelerate the acquisition of skills and recognized 
postsecondary credentials by participants; 
(C) strengthen the professional development of pro-
viders and workforce professionals; and 
(D) ensure such technology is accessible to individuals 
with disabilities and individuals residing in remote areas; 
(8) the development of strategies for aligning technology 
and data systems across one-stop partner programs to enhance 
service delivery and improve efficiencies in reporting on 
performance accountability measures (including the design and 
implementation of common intake, data collection, case 
management information, and performance accountability 
measurement and reporting processes and the incorporation 
of local input into such design and implementation, to improve 
coordination of services across one-stop partner programs); 
(9) the development of allocation formulas for the distribu-
tion of funds for employment and training activities for adults, 
and youth workforce investment activities, to local areas as 
permitted under sections 128(b)(3) and 133(b)(3); 
(10) the preparation of the annual reports described in 
paragraphs (1) and (2) of section 116(d); 
(11) the development of the statewide workforce and labor 
market information system described in section 15(e) of the 
Wagner-Peyser Act (29 U.S.C. 49l–2(e)); and 
(12) the development of such other policies as may promote 
statewide objectives for, and enhance the performance of, the 
workforce development system in the State. 
(e) ALTERNATIVE ENTITY.— 
(1) IN GENERAL.—For the purposes of complying with sub-
sections (a), (b), and (c), a State may use any State entity 
(including a State council, State workforce development board 
(within the meaning of the Workforce Investment Act of 1998, 
as in effect on the day before the date of enactment of this 
Act), combination of regional workforce development boards, 
or similar entity) that—
H. R. 803—20 
(A) was in existence on the day before the date of 
enactment of the Workforce Investment Act of 1998; 
(B) is substantially similar to the State board described 
in subsections (a) through (c); and 
(C) includes representatives of business in the State 
and representatives of labor organizations in the State. 
(2) REFERENCES.—A reference in this Act, or a core program 
provision that is not in this Act, to a State board shall be 
considered to include such an entity. 
(f) CONFLICT OF INTEREST.—A member of a State board may 
not— 
(1) vote on a matter under consideration by the State 
board— 
(A) regarding the provision of services by such member 
(or by an entity that such member represents); or 
(B) that would provide direct financial benefit to such 
member or the immediate family of such member; or 
(2) engage in any other activity determined by the Governor 
to constitute a conflict of interest as specified in the State 
plan. 
(g) SUNSHINE PROVISION.—The State board shall make avail-
able to the public, on a regular basis through electronic means 
and open meetings, information regarding the activities of the State 
board, including information regarding the State plan, or a modifica-
tion to the State plan, prior to submission of the plan or modification 
of the plan, respectively, information regarding membership, and, 
on request, minutes of formal meetings of the State board. 
(h) AUTHORITY TO HIRE STAFF.— 
(1) IN
GENERAL.—The State board may hire a director 
and other staff to assist in carrying out the functions described 
in subsection (d) using funds available as described in section 
129(b)(3) or 134(a)(3)(B)(i). 
(2) QUALIFICATIONS.—The State board shall establish and 
apply a set of objective qualifications for the position of director, 
that ensures that the individual selected has the requisite 
knowledge, skills, and abilities, to meet identified benchmarks 
and to assist in effectively carrying out the functions of the 
State board. 
(3) LIMITATION ON RATE.—The director and staff described 
in paragraph (1) shall be subject to the limitations on the 
payment of salary and bonuses described in section 194(15). 
SEC. 102. UNIFIED STATE PLAN. 
(a) PLAN.—For a State to be eligible to receive allotments 
for the core programs, the Governor shall submit to the Secretary 
of Labor for the approval process described under subsection (c)(2), 
a unified State plan. The unified State plan shall outline a 4- 
year strategy for the core programs of the State and meet the 
requirements of this section. 
(b) CONTENTS.— 
(1) STRATEGIC
PLANNING
ELEMENTS.—The unified State 
plan shall include strategic planning elements consisting of 
a strategic vision and goals for preparing an educated and 
skilled workforce, that include— 
(A) an analysis of the economic conditions in the State, 
including—
H. R. 803—21 
(i) existing and emerging in-demand industry sec-
tors and occupations; and 
(ii) the employment needs of employers, including 
a description of the knowledge, skills, and abilities, 
needed in those industries and occupations; 
(B) an analysis of the current workforce, employment 
and unemployment data, labor market trends, and the 
educational and skill levels of the workforce, including 
individuals with barriers to employment (including individ-
uals with disabilities), in the State; 
(C) an analysis of the workforce development activities 
(including education and training) in the State, including 
an analysis of the strengths and weaknesses of such activi-
ties, and the capacity of State entities to provide such 
activities, in order to address the identified education and 
skill needs of the workforce and the employment needs 
of employers in the State; 
(D) a description of the State’s strategic vision and 
goals for preparing an educated and skilled workforce 
(including preparing youth and individuals with barriers 
to employment) and for meeting the skilled workforce needs 
of employers, including goals relating to performance 
accountability measures based on primary indicators of 
performance described in section 116(b)(2)(A), in order to 
support economic growth and economic self-sufficiency, and 
of how the State will assess the overall effectiveness of 
the workforce investment system in the State; and 
(E) taking into account analyses described in subpara-
graphs (A) through (C), a strategy for aligning the core 
programs, as well as other resources available to the State, 
to achieve the strategic vision and goals described in 
subparagraph (D). 
(2) OPERATIONAL PLANNING ELEMENTS.— 
(A) IN GENERAL.—The unified State plan shall include 
the operational planning elements contained in this para-
graph, which shall support the strategy described in para-
graph (1)(E), including a description of how the State board 
will implement the functions under section 101(d). 
(B) IMPLEMENTATION OF STATE STRATEGY.—The unified 
State plan shall describe how the lead State agency with 
responsibility for the administration of a core program 
will implement the strategy described in paragraph (1)(E), 
including a description of— 
(i) the activities that will be funded by the entities 
carrying out the respective core programs to implement 
the strategy and how such activities will be aligned 
across the programs and among the entities admin-
istering the programs, including using co-enrollment 
and other strategies; 
(ii) how the activities described in clause (i) will 
be aligned with activities provided under employment, 
training, education, including career and technical edu-
cation, and human services programs not covered by 
the plan, as appropriate, assuring coordination of, and 
avoiding duplication among, the activities referred to 
in this clause;
H. R. 803—22 
(iii) how the entities carrying out the respective 
core programs will coordinate activities and provide 
comprehensive, high-quality services including sup-
portive services, to individuals; 
(iv) how the State’s strategy will engage the State’s 
community colleges and area career and technical edu-
cation schools as partners in the workforce develop-
ment system and enable the State to leverage other 
Federal, State, and local investments that have 
enhanced access to workforce development programs 
at those institutions; 
(v) how the activities described in clause (i) will 
be coordinated with economic development strategies 
and activities in the State; and 
(vi) how the State’s strategy will improve access 
to activities leading to a recognized postsecondary 
credential (including a credential that is an industry- 
recognized certificate or certification, portable, and 
stackable). 
(C) STATE OPERATING SYSTEMS AND POLICIES.—The uni-
fied State plan shall describe the State operating systems 
and policies that will support the implementation of the 
strategy described in paragraph (1)(E), including a descrip-
tion of— 
(i) the State board, including the activities to assist 
members of the State board and the staff of such 
board in carrying out the functions of the State board 
effectively (but funds for such activities may not be 
used for long-distance travel expenses for training or 
development activities available locally or regionally); 
(ii)(I) how the respective core programs will be 
assessed each year, including an assessment of the 
quality, effectiveness, and improvement of programs 
(analyzed by local area, or by provider), based on State 
performance accountability measures described in sec-
tion 116(b); and 
(II) how other one-stop partner programs will be 
assessed each year; 
(iii) the results of an assessment of the effective-
ness of the core programs and other one-stop partner 
programs during the preceding 2-year period; 
(iv) the methods and factors the State will use 
in distributing funds under the core programs, in 
accordance with the provisions authorizing such dis-
tributions; 
(v)(I) how the lead State agencies with responsi-
bility for the administration of the core programs will 
align and integrate available workforce and education 
data on core programs, unemployment insurance pro-
grams, and education through postsecondary edu-
cation; 
(II) how such agencies will use the workforce 
development system to assess the progress of partici-
pants that are exiting from core programs in entering, 
persisting in, and completing postsecondary education, 
or entering or remaining in employment; and
H. R. 803—23 
(III) the privacy safeguards incorporated in such 
system, including safeguards required by section 444 
of the General Education Provisions Act (20 U.S.C. 
1232g) and other applicable Federal laws; 
(vi) how the State will implement the priority of 
service provisions for veterans in accordance with the 
requirements of section 4215 of title 38, United States 
Code; 
(vii) how the one-stop delivery system, including 
one-stop operators and the one-stop partners, will 
comply with section 188, if applicable, and applicable 
provisions of the Americans with Disabilities Act of 
1990 (42 U.S.C. 12101 et seq.), regarding the physical 
and programmatic accessibility of facilities, programs, 
services, technology, and materials, for individuals 
with disabilities, including complying through pro-
viding staff training and support for addressing the 
needs of individuals with disabilities; and 
(viii) such other operational planning elements as 
the Secretary of Labor or the Secretary of Education, 
as appropriate, determines to be necessary for effective 
State operating systems and policies. 
(D) PROGRAM-SPECIFIC
REQUIREMENTS.—The unified 
State plan shall include— 
(i) with respect to activities carried out under sub-
title B, a description of— 
(I) State policies or guidance, for the statewide 
workforce development system and for use of State 
funds for workforce investment activities; 
(II) the local areas designated in the State, 
including the process used for designating local 
areas, and the process used for identifying any 
planning regions under section 106(a), including 
a description of how the State consulted with the 
local boards and chief elected officials in deter-
mining the planning regions; 
(III) the appeals process referred to in section 
106(b)(5), relating to designation of local areas; 
(IV) the appeals process referred to in section 
121(h)(2)(E), relating to determinations for infra-
structure funding; and 
(V) with respect to youth workforce investment 
activities authorized in section 129, information 
identifying the criteria to be used by local boards 
in awarding grants for youth workforce investment 
activities and describing how the local boards will 
take into consideration the ability of the providers 
to meet performance accountability measures 
based on primary indicators of performance for 
the youth program as described in section 
116(b)(2)(A)(ii) in awarding such grants; 
(ii) with respect to activities carried out under 
title II, a description of— 
(I) how the eligible agency will, if applicable, 
align content standards for adult education with 
State-adopted challenging academic content stand-
ards, as adopted under section 1111(b)(1) of the
H. R. 803—24 
Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6311(b)(1)); 
(II) how the State will fund local activities 
using considerations specified in section 231(e) 
for— 
(aa) activities under section 231(b); 
(bb) programs for corrections education 
under section 225; 
(cc) programs for integrated English lit-
eracy and civics education under section 243; 
and 
(dd) integrated education and training; 
(III) how the State will use the funds to carry 
out activities under section 223; 
(IV) how the State will use the funds to carry 
out activities under section 243; 
(V) how the eligible agency will assess the 
quality of providers of adult education and literacy 
activities under title II and take actions to improve 
such quality, including providing the activities 
described in section 223(a)(1)(B); 
(iii) with respect to programs carried out under 
title I of the Rehabilitation Act of 1973 (29 U.S.C. 
720 et seq.), other than section 112 or part C of that 
title (29 U.S.C. 732, 741), the information described 
in section 101(a) of that Act (29 U.S.C. 721(a)); and 
(iv) information on such additional specific require-
ments for a program referenced in any of clauses (i) 
through (iii) or the Wagner-Peyser Act (29 U.S.C. 49 
et seq.) as the Secretary of Labor determines to be 
necessary to administer that program but cannot 
reasonably be applied across all such programs. 
(E) ASSURANCES.—The unified State plan shall include 
assurances— 
(i) that the State has established a policy identi-
fying circumstances that may present a conflict of 
interest for a State board or local board member, or 
the entity or class of officials that the member rep-
resents, and procedures to resolve such conflicts; 
(ii) that the State has established a policy to pro-
vide to the public (including individuals with disabil-
ities) access to meetings of State boards and local 
boards, and information regarding activities of State 
boards and local boards, such as data on board mem-
bership and minutes; 
(iii)(I) that the lead State agencies with responsi-
bility for the administration of core programs reviewed 
and commented on the appropriate operational plan-
ning elements of the unified State plan, and approved 
the elements as serving the needs of the populations 
served by such programs; and 
(II) that the State obtained input into the develop-
ment of the unified State plan and provided an oppor-
tunity for comment on the plan by representatives 
of local boards and chief elected officials, businesses, 
labor organizations, institutions of higher education, 
other primary stakeholders, and the general public
H. R. 803—25 
and that the unified State plan is available and acces-
sible to the general public; 
(iv) that the State has established, in accordance 
with section 116(i), fiscal control and fund accounting 
procedures that may be necessary to ensure the proper 
disbursement of, and accounting for, funds paid to 
the State through allotments made for adult, dislocated 
worker, and youth programs to carry out workforce 
investment activities under chapters 2 and 3 of subtitle 
B; 
(v) that the State has taken appropriate action 
to secure compliance with uniform administrative 
requirements in this Act, including that the State will 
annually monitor local areas to ensure compliance and 
otherwise take appropriate action to secure compliance 
with the uniform administrative requirements under 
section 184(a)(3); 
(vi) that the State has taken the appropriate action 
to be in compliance with section 188, if applicable; 
(vii) that the Federal funds received to carry out 
a core program will not be expended for any purpose 
other than for activities authorized with respect to 
such funds under that core program; 
(viii) that the eligible agency under title II will— 
(I) expend the funds appropriated to carry out 
that title only in a manner consistent with fiscal 
requirements under section 241(a) (regarding 
supplement and not supplant provisions); and 
(II) ensure that there is at least 1 eligible 
provider serving each local area; 
(ix) that the State will pay an appropriate share 
(as defined by the State board) of the costs of carrying 
out section 116, from funds made available through 
each of the core programs; and 
(x) regarding such other matters as the Secretary 
of Labor or the Secretary of Education, as appropriate, 
determines to be necessary for the administration of 
the core programs. 
(3) EXISTING ANALYSIS.—As appropriate, a State may use 
an existing analysis in order to carry out the requirements 
of paragraph (1) concerning an analysis. 
(c) PLAN SUBMISSION AND APPROVAL.— 
(1) SUBMISSION.— 
(A) INITIAL PLAN.—The initial unified State plan under 
this section (after the date of enactment of the Workforce 
Innovation and Opportunity Act) shall be submitted to 
the Secretary of Labor not later than 120 days prior to 
the commencement of the second full program year after 
the date of enactment of this Act. 
(B) SUBSEQUENT
PLANS.—Except as provided in 
subparagraph (A), a unified State plan shall be submitted 
to the Secretary of Labor not later than 120 days prior 
to the end of the 4-year period covered by the preceding 
unified State plan. 
(2) SUBMISSION AND APPROVAL.— 
(A) SUBMISSION.—In approving a unified State plan 
under this section, the Secretary shall submit the portion
H. R. 803—26 
of the unified State plan covering a program or activity 
to the head of the Federal agency that administers the 
program or activity for the approval of such portion by 
such head. 
(B) APPROVAL.—A unified State plan shall be subject 
to the approval of both the Secretary of Labor and the 
Secretary of Education, after approval of the Commissioner 
of the Rehabilitation Services Administration for the por-
tion of the plan described in subsection (b)(2)(D)(iii). The 
plan shall be considered to be approved at the end of 
the 90-day period beginning on the day the plan is sub-
mitted, unless the Secretary of Labor or the Secretary 
of Education makes a written determination, during the 
90-day period, that the plan is inconsistent with the provi-
sions of this section or the provisions authorizing the core 
programs, as appropriate. 
(3) MODIFICATIONS.— 
(A) MODIFICATIONS.—At the end of the first 2-year 
period of any 4-year unified State plan, the State board 
shall review the unified State plan, and the Governor shall 
submit modifications to the plan to reflect changes in labor 
market and economic conditions or in other factors affecting 
the implementation of the unified State plan. 
(B) APPROVAL.—A modified unified State plan sub-
mitted for the review required under subparagraph (A) 
shall be subject to the approval requirements described 
in paragraph (2). A Governor may submit a modified unified 
State plan at such other times as the Governor determines 
to be appropriate, and such modified unified State plan 
shall also be subject to the approval requirements described 
in paragraph (2). 
(4) EARLY
IMPLEMENTERS.—The Secretary of Labor, in 
conjunction with the Secretary of Education, shall establish 
a process for approving and may approve unified State plans 
that meet the requirements of this section and are submitted 
to cover periods commencing prior to the second full program 
year described in paragraph (1)(A). 
SEC. 103. COMBINED STATE PLAN. 
(a) IN GENERAL.— 
(1) AUTHORITY TO SUBMIT PLAN.—A State may develop and 
submit to the appropriate Secretaries a combined State plan 
for the core programs and 1 or more of the programs and 
activities described in paragraph (2) in lieu of submitting 2 
or more plans, for the programs and activities and the core 
programs. 
(2) PROGRAMS.—The programs and activities referred to 
in paragraph (1) are as follows: 
(A) Career and technical education programs author-
ized under the Carl D. Perkins Career and Technical Edu-
cation Act of 2006 (20 U.S.C. 2301 et seq.). 
(B) Programs authorized under part A of title IV of 
the Social Security Act (42 U.S.C. 601 et seq.). 
(C) Programs authorized under section 6(d)(4) of the 
Food and Nutrition Act of 2008 (7 U.S.C. 2015(d)(4)). 
(D) Work programs authorized under section 6(o) of 
the Food and Nutrition Act of 2008 (7 U.S.C. 2015(o)).
H. R. 803—27 
(E) Activities authorized under chapter 2 of title II 
of the Trade Act of 1974 (19 U.S.C. 2271 et seq.). 
(F) Activities authorized under chapter 41 of title 38, 
United States Code. 
(G) Programs authorized under State unemployment 
compensation laws (in accordance with applicable Federal 
law). 
(H) Programs authorized under title V of the Older 
Americans Act of 1965 (42 U.S.C. 3056 et seq.). 
(I) Employment and training activities carried out by 
the Department of Housing and Urban Development. 
(J) Employment and training activities carried out 
under the Community Services Block Grant Act (42 U.S.C. 
9901 et seq.). 
(K) Programs authorized under section 212 of the 
Second Chance Act of 2007 (42 U.S.C. 17532). 
(b) REQUIREMENTS.— 
(1) IN GENERAL.—The portion of a combined plan covering 
the core programs shall be subject to the requirements of section 
102 (including section 102(c)(3)). The portion of such plan cov-
ering a program or activity described in subsection (a)(2) shall 
be subject to the requirements, if any, applicable to a plan 
or application for assistance for that program or activity, under 
the Federal law authorizing the program or activity. At the 
election of the State, section 102(c)(3) may apply to that portion. 
(2) ADDITIONAL SUBMISSION NOT REQUIRED.—A State that 
submits a combined plan that is approved under subsection 
(c) shall not be required to submit any other plan or application 
in order to receive Federal funds to carry out the core programs 
or the program or activities described in subsection (a)(2) that 
are covered by the combined plan. 
(3) COORDINATION.—A combined plan shall include— 
(A) a description of the methods used for joint planning 
and coordination of the core programs and the other pro-
grams and activities covered by the combined plan; and 
(B) an assurance that the methods included an oppor-
tunity for the entities responsible for planning or admin-
istering the core programs and the other programs and 
activities to review and comment on all portions of the 
combined plan. 
(c) APPROVAL BY THE APPROPRIATE SECRETARIES.— 
(1) JURISDICTION.—The appropriate Secretary shall have 
the authority to approve the corresponding portion of a com-
bined plan as described in subsection (d). On the approval 
of the appropriate Secretary, that portion of the combined plan, 
covering a program or activity, shall be implemented by the 
State pursuant to that portion of the combined plan, and the 
Federal law authorizing the program or activity. 
(2) APPROVAL OF CORE PROGRAMS.—No portion of the plan 
relating to a core program shall be implemented until the 
appropriate Secretary approves the corresponding portions of 
the plan for all core programs. 
(3) TIMING OF APPROVAL.— 
(A) IN GENERAL.—Except as provided in subparagraphs 
(B) and (C), a portion of the combined State plan covering 
the core programs or a program or activity described in 
subsection (a)(2) shall be considered to be approved by
H. R. 803—28 
the appropriate Secretary at the end of the 90-day period 
beginning on the day the plan is submitted. 
(B) PLAN APPROVED BY 3 OR MORE APPROPRIATE SECRE-
TARIES.—If an appropriate Secretary other than the Sec-
retary of Labor or the Secretary of Education has authority 
to approve a portion of a combined plan, that portion of 
the combined plan shall be considered to be approved by 
the appropriate Secretary at the end of the 120-day period 
beginning on the day the plan is submitted. 
(C) DISAPPROVAL.—The portion shall not be considered 
to be approved if the appropriate Secretary makes a written 
determination, during the 90-day period (or the 120-day 
period, for an appropriate Secretary covered by subpara-
graph (B)), that the portion is not consistent with the 
requirements of the Federal law authorizing or applicable 
to the program or activity involved, including the criteria 
for approval of a plan or application, if any, under such 
law, or the plan is not consistent with the requirements 
of this section. 
(4) SPECIAL RULE.—In paragraph (3), the term ‘‘criteria 
for approval of a plan or application’’, with respect to a State 
and a core program or a program under the Carl D. Perkins 
Career and Technical Education Act of 2006 (20 U.S.C. 2301 
et seq.), includes a requirement for agreement between the 
State and the appropriate Secretaries regarding State perform-
ance measures or State performance accountability measures, 
as the case may be, including levels of performance. 
(d) APPROPRIATE SECRETARY.—In this section, the term ‘‘appro-
priate Secretary’’ means— 
(1) with respect to the portion of a combined plan relating 
to any of the core programs (including a description, and an 
assurance concerning that program, specified in subsection 
(b)(3)), the Secretary of Labor and the Secretary of Education; 
and 
(2) with respect to the portion of a combined plan relating 
to a program or activity described in subsection (a)(2) (including 
a description, and an assurance concerning that program or 
activity, specified in subsection (b)(3)), the head of the Federal 
agency who exercises plan or application approval authority 
for the program or activity under the Federal law authorizing 
the program or activity, or, if there are no planning or applica-
tion requirements for such program or activity, exercises 
administrative authority over the program or activity under 
that Federal law. 
CHAPTER 2—LOCAL PROVISIONS 
SEC. 106. WORKFORCE DEVELOPMENT AREAS. 
(a) REGIONS.— 
(1) IDENTIFICATION.—Before the second full program year 
after the date of enactment of this Act, in order for a State 
to receive an allotment under section 127(b) or 132(b) and 
as part of the process for developing the State plan, a State 
shall identify regions in the State after consultation with the 
local boards and chief elected officials in the local areas and 
consistent with the considerations described in subsection 
(b)(1)(B).
H. R. 803—29 
(2) TYPES OF REGIONS.—For purposes of this Act, the State 
shall identify— 
(A) which regions are comprised of 1 local area that 
is aligned with the region; 
(B) which regions are comprised of 2 or more local 
areas that are (collectively) aligned with the region 
(referred to as planning regions, consistent with section 
3); and 
(C) which, of the regions described in subparagraph 
(B), are interstate areas contained within 2 or more States, 
and consist of labor market areas, economic development 
areas, or other appropriate contiguous subareas of those 
States. 
(b) LOCAL AREAS.— 
(1) IN GENERAL.— 
(A) PROCESS.—Except as provided in subsection (d), 
and consistent with paragraphs (2) and (3), in order for 
a State to receive an allotment under section 127(b) or 
132(b), the Governor of the State shall designate local 
workforce development areas within the State— 
(i) through consultation with the State board; and 
(ii) after consultation with chief elected officials 
and local boards, and after consideration of comments 
received through the public comment process as 
described in section 102(b)(2)(E)(iii)(II). 
(B) CONSIDERATIONS.—The Governor shall designate 
local areas (except for those local areas described in para-
graphs (2) and (3)) based on considerations consisting of 
the extent to which the areas— 
(i) are consistent with labor market areas in the 
State; 
(ii) are consistent with regional economic develop-
ment areas in the State; and 
(iii) have available the Federal and non-Federal 
resources necessary to effectively administer activities 
under subtitle B and other applicable provisions of 
this Act, including whether the areas have the appro-
priate education and training providers, such as 
institutions of higher education and area career and 
technical education schools. 
(2) INITIAL DESIGNATION.—During the first 2 full program 
years following the date of enactment of this Act, the Governor 
shall approve a request for initial designation as a local area 
from any area that was designated as a local area for purposes 
of the Workforce Investment Act of 1998 for the 2-year period 
preceding the date of enactment of this Act, performed success-
fully, and sustained fiscal integrity. 
(3) SUBSEQUENT DESIGNATION.—After the period for which 
a local area is initially designated under paragraph (2), the 
Governor shall approve a request for subsequent designation 
as a local area from such local area, if such area— 
(A) performed successfully; 
(B) sustained fiscal integrity; and 
(C) in the case of a local area in a planning region, 
met the requirements described in subsection (c)(1). 
(4) DESIGNATION ON RECOMMENDATION OF STATE BOARD.— 
The Governor may approve a request from any unit of general
H. R. 803—30 
local government (including a combination of such units) for 
designation of an area as a local area if the State board deter-
mines, based on the considerations described in paragraph 
(1)(B), and recommends to the Governor, that such area should 
be so designated. 
(5) APPEALS.—A unit of general local government (including 
a combination of such units) or grant recipient that requests 
but is not granted designation of an area as a local area 
under paragraph (2) or (3) may submit an appeal to the State 
board under an appeal process established in the State plan. 
If the appeal does not result in such a designation, the Secretary 
of Labor, after receiving a request for review from the unit 
or grant recipient and on determining that the unit or grant 
recipient was not accorded procedural rights under the appeals 
process described in the State plan, as specified in section 
102(b)(2)(D)(i)(III), or that the area meets the requirements 
of paragraph (2) or (3), may require that the area be designated 
as a local area under such paragraph. 
(6) REDESIGNATION ASSISTANCE.—On the request of all of 
the local areas in a planning region, the State shall provide 
funding from funds made available under sections 128(a) and 
133(a)(1) to assist the local areas in carrying out activities 
to facilitate the redesignation of the local areas to a single 
local area. 
(c) REGIONAL COORDINATION.— 
(1) REGIONAL PLANNING.—The local boards and chief elected 
officials in each planning region described in subparagraph 
(B) or (C) of subsection (a)(2) shall engage in a regional planning 
process that results in— 
(A) the preparation of a regional plan, as described 
in paragraph (2); 
(B) the establishment of regional service strategies, 
including use of cooperative service delivery agreements; 
(C) the development and implementation of sector ini-
tiatives for in-demand industry sectors or occupations for 
the region; 
(D) the collection and analysis of regional labor market 
data (in conjunction with the State); 
(E) the establishment of administrative cost arrange-
ments, including the pooling of funds for administrative 
costs, as appropriate, for the region; 
(F) the coordination of transportation and other sup-
portive services, as appropriate, for the region; 
(G) the coordination of services with regional economic 
development services and providers; and 
(H) the establishment of an agreement concerning how 
the planning region will collectively negotiate and reach 
agreement with Governor on local levels of performance 
for, and report on, the performance accountability measures 
described in section 116(c), for local areas or the planning 
region. 
(2) REGIONAL PLANS.—The State, after consultation with 
local boards and chief elected officials for the planning regions, 
shall require the local boards and chief elected officials within 
a planning region to prepare, submit, and obtain approval 
of a single regional plan that includes a description of the 
activities described in paragraph (1) and that incorporates local
H. R. 803—31 
plans for each of the local areas in the planning region. The 
State shall provide technical assistance and labor market data, 
as requested by local areas, to assist with such regional plan-
ning and subsequent service delivery efforts. 
(3) REFERENCES.—In this Act, and the core program provi-
sions that are not in this Act: 
(A) LOCAL
AREA.—Except as provided in section 
101(d)(9), this section, paragraph (1)(B) or (4) of section 
107(c), or section 107(d)(12)(B), or in any text that provides 
an accompanying provision specifically for a planning 
region, the term ‘‘local area’’ in a provision includes a 
reference to a planning region for purposes of implementa-
tion of that provision by the corresponding local areas 
in the region. 
(B) LOCAL
PLAN.—Except as provided in this sub-
section, the term ‘‘local plan’’ includes a reference to the 
portion of a regional plan developed with respect to the 
corresponding local area within the region, and any region-
wide provision of that plan that impacts or relates to the 
local area. 
(d) SINGLE STATE LOCAL AREAS.— 
(1) CONTINUATION OF PREVIOUS DESIGNATION.—The Gov-
ernor of any State that was a single State local area for pur-
poses of title I of the Workforce Investment Act of 1998, as 
in effect on July 1, 2013, may designate the State as a single 
State local area for purposes of this title. In the case of such 
designation, the Governor shall identify the State as a local 
area in the State plan. 
(2) EFFECT ON LOCAL PLAN AND LOCAL FUNCTIONS.—In any 
case in which a State is designated as a local area pursuant 
to this subsection, the local plan prepared under section 108 
for the area shall be submitted for approval as part of the 
State plan. In such a State, the State board shall carry out 
the functions of a local board, as specified in this Act or the 
provisions authorizing a core program, but the State shall 
not be required to meet and report on a set of local performance 
accountability measures. 
(e) DEFINITIONS.—For purposes of this section: 
(1) PERFORMED
SUCCESSFULLY.—The term ‘‘performed 
successfully’’, used with respect to a local area, means the 
local area met or exceeded the adjusted levels of performance 
for primary indicators of performance described in section 
116(b)(2)(A) (or, if applicable, core indicators of performance 
described in section 136(b)(2)(A) of the Workforce Investment 
Act of 1998, as in effect the day before the date of enactment 
of this Act) for each of the last 2 consecutive years for which 
data are available preceding the determination of performance 
under this paragraph. 
(2) SUSTAINED
FISCAL
INTEGRITY.—The term ‘‘sustained 
fiscal integrity’’, used with respect to a local area, means that 
the Secretary has not made a formal determination, during 
either of the last 2 consecutive years preceding the determina-
tion regarding such integrity, that either the grant recipient 
or the administrative entity of the area misexpended funds 
provided under subtitle B (or, if applicable, title I of the 
Workforce Investment Act of 1998 as in effect prior to the 
effective date of such subtitle B) due to willful disregard of
H. R. 803—32 
the requirements of the provision involved, gross negligence, 
or failure to comply with accepted standards of administration. 
SEC. 107. LOCAL WORKFORCE DEVELOPMENT BOARDS. 
(a) ESTABLISHMENT.—Except as provided in subsection (c)(2)(A), 
there shall be established, and certified by the Governor of the 
State, a local workforce development board in each local area of 
a State to carry out the functions described in subsection (d) (and 
any functions specified for the local board under this Act or the 
provisions establishing a core program) for such area. 
(b) MEMBERSHIP.— 
(1) STATE CRITERIA.—The Governor, in partnership with 
the State board, shall establish criteria for use by chief elected 
officials in the local areas for appointment of members of the 
local boards in such local areas in accordance with the require-
ments of paragraph (2). 
(2) COMPOSITION.—Such criteria shall require that, at a 
minimum— 
(A) a majority of the members of each local board 
shall be representatives of business in the local area, who— 
(i) are owners of businesses, chief executives or 
operating officers of businesses, or other business 
executives or employers with optimum policymaking 
or hiring authority; 
(ii) 
represent 
businesses, 
including 
small 
businesses, or organizations representing businesses 
described in this clause, that provide employment 
opportunities that, at a minimum, include high-quality, 
work-relevant training and development in in-demand 
industry sectors or occupations in the local area; and 
(iii) are appointed from among individuals nomi-
nated by local business organizations and business 
trade associations; 
(B) not less than 20 percent of the members of each 
local board shall be representatives of the workforce within 
the local area, who— 
(i) shall include representatives of labor organiza-
tions (for a local area in which employees are rep-
resented by labor organizations), who have been nomi-
nated by local labor federations, or (for a local area 
in which no employees are represented by such 
organizations) other representatives of employees; 
(ii) shall include a representative, who shall be 
a member of a labor organization or a training director, 
from a joint labor-management apprenticeship pro-
gram, or if no such joint program exists in the area, 
such a representative of an apprenticeship program 
in the area, if such a program exists; 
(iii) may include representatives of community- 
based organizations that have demonstrated experience 
and expertise in addressing the employment needs of 
individuals with barriers to employment, including 
organizations that serve veterans or that provide or 
support competitive integrated employment for individ-
uals with disabilities; and 
(iv) may include representatives of organizations 
that have demonstrated experience and expertise in
H. R. 803—33 
addressing the employment, training, or education 
needs of eligible youth, including representatives of 
organizations that serve out-of-school youth; 
(C) each local board shall include representatives of 
entities administering education and training activities in 
the local area, who— 
(i) shall include a representative of eligible pro-
viders administering adult education and literacy 
activities under title II; 
(ii) shall include a representative of institutions 
of higher education providing workforce investment 
activities (including community colleges); 
(iii) may include representatives of local edu-
cational agencies, and of community-based organiza-
tions with demonstrated experience and expertise in 
addressing the education or training needs of individ-
uals with barriers to employment; 
(D) each local board shall include representatives of 
governmental and economic and community development 
entities serving the local area, who— 
(i) shall include a representative of economic and 
community development entities; 
(ii) shall include an appropriate representative 
from the State employment service office under the 
Wagner-Peyser Act (29 U.S.C. 49 et seq.) serving the 
local area; 
(iii) shall include an appropriate representative 
of the programs carried out under title I of the 
Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.), 
other than section 112 or part C of that title (29 
U.S.C. 732, 741), serving the local area; 
(iv) may include representatives of agencies or 
entities administering programs serving the local area 
relating to transportation, housing, and public assist-
ance; and 
(v) may include representatives of philanthropic 
organizations serving the local area; and 
(E) each local board may include such other individuals 
or representatives of entities as the chief elected official 
in the local area may determine to be appropriate. 
(3) CHAIRPERSON.—The members of the local board shall 
elect a chairperson for the local board from among the rep-
resentatives described in paragraph (2)(A). 
(4) STANDING COMMITTEES.— 
(A) IN GENERAL.—The local board may designate and 
direct the activities of standing committees to provide 
information and to assist the local board in carrying out 
activities under this section. Such standing committees 
shall be chaired by a member of the local board, may 
include other members of the local board, and shall include 
other individuals appointed by the local board who are 
not members of the local board and who the local board 
determines have appropriate experience and expertise. At 
a minimum, the local board may designate each of the 
following: 
(i) A standing committee to provide information 
and assist with operational and other issues relating
H. R. 803—34 
to the one-stop delivery system, which may include 
as members representatives of the one-stop partners. 
(ii) A standing committee to provide information 
and to assist with planning, operational, and other 
issues relating to the provision of services to youth, 
which shall include community-based organizations 
with a demonstrated record of success in serving 
eligible youth. 
(iii) A standing committee to provide information 
and to assist with operational and other issues relating 
to the provision of services to individuals with disabil-
ities, including issues relating to compliance with sec-
tion 188, if applicable, and applicable provisions of 
the Americans with Disabilities Act of 1990 (42 U.S.C. 
12101 et seq.) regarding providing programmatic and 
physical access to the services, programs, and activities 
of the one-stop delivery system, as well as appropriate 
training for staff on providing supports for or accom-
modations to, and finding employment opportunities 
for, individuals with disabilities. 
(B) ADDITIONAL
COMMITTEES.—The local board may 
designate standing committees in addition to the standing 
committees specified in subparagraph (A). 
(C) DESIGNATION OF ENTITY.—Nothing in this para-
graph shall be construed to prohibit the designation of 
an existing (as of the date of enactment of this Act) entity, 
such as an effective youth council, to fulfill the require-
ments of this paragraph as long as the entity meets the 
requirements of this paragraph. 
(5) AUTHORITY OF BOARD MEMBERS.—Members of the board 
that represent organizations, agencies, or other entities shall 
be individuals with optimum policymaking authority within 
the organizations, agencies, or entities. The members of the 
board shall represent diverse geographic areas within the local 
area. 
(6) SPECIAL RULE.—If there are multiple eligible providers 
serving the local area by administering adult education and 
literacy activities under title II, or multiple institutions of 
higher education serving the local area by providing workforce 
investment activities, each representative on the local board 
described in clause (i) or (ii) of paragraph (2)(C), respectively, 
shall be appointed from among individuals nominated by local 
providers representing such providers or institutions, respec-
tively. 
(c) APPOINTMENT AND CERTIFICATION OF BOARD.— 
(1) APPOINTMENT OF BOARD MEMBERS AND ASSIGNMENT OF 
RESPONSIBILITIES.— 
(A) IN GENERAL.—The chief elected official in a local 
area is authorized to appoint the members of the local 
board for such area, in accordance with the State criteria 
established under subsection (b). 
(B) MULTIPLE UNITS OF LOCAL GOVERNMENT 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 agreement that specifies the respective roles of the 
individual chief elected officials—
H. R. 803—35 
(I) in the appointment of the members of the 
local board from the individuals nominated or rec-
ommended to be such members in accordance with 
the criteria established under subsection (b); and 
(II) in carrying out any other responsibilities 
assigned to such officials under this title. 
(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 board from 
individuals so nominated or recommended. 
(C) CONCENTRATED
EMPLOYMENT
PROGRAMS.—In the 
case of an area that was designated as a local area in 
accordance with section 116(a)(2)(B) of the Workforce 
Investment Act of 1998 (as in effect on the day before 
the date of enactment of this Act), and that remains a 
local area on that date, the governing body of the con-
centrated employment program involved shall act in con-
sultation with the chief elected official in the local area 
to appoint members of the local board, in accordance with 
the State criteria established under subsection (b), 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, once every 2 
years, certify 1 local board for each local area in the State. 
(B) CRITERIA.—Such certification shall be based on cri-
teria established under subsection (b), and for a second 
or subsequent certification, the extent to which the local 
board has ensured that workforce investment activities 
carried out in the local area have enabled the local area 
to meet the corresponding performance accountability 
measures and achieve sustained fiscal integrity, as defined 
in section 106(e)(2). 
(C) FAILURE
TO
ACHIEVE
CERTIFICATION.—Failure of 
a local board to achieve certification shall result in appoint-
ment and certification of a new local board for the local 
area pursuant to the process described in paragraph (1) 
and this paragraph. 
(3) DECERTIFICATION.— 
(A) FRAUD, ABUSE, FAILURE TO CARRY OUT FUNCTIONS.— 
Notwithstanding paragraph (2), the Governor shall have 
the authority to decertify a local board 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 board in subsection (d). 
(B) NONPERFORMANCE.—Notwithstanding paragraph 
(2), the Governor may decertify a local board if a local 
area fails to meet the local performance accountability 
measures for such local area in accordance with section 
116(c) for 2 consecutive program years. 
(C) REORGANIZATION PLAN.—If the Governor decertifies 
a local board for a local area under subparagraph (A) 
or (B), the Governor may require that a new local board 
be appointed and certified for the local area pursuant to
H. R. 803—36 
a reorganization plan developed by the Governor, in con-
sultation with the chief elected official in the local area 
and in accordance with the criteria established under sub-
section (b). 
(4) SINGLE STATE LOCAL AREA.— 
(A) STATE BOARD.—Notwithstanding subsection (b) and 
paragraphs (1) and (2), if a State described in section 
106(d) indicates in the State plan that the State will be 
treated as a single State local area, for purposes of the 
application of this Act or the provisions authorizing a core 
program, the State board shall carry out any of the func-
tions of a local board under this Act or the provisions 
authorizing a core program, including the functions 
described in subsection (d). 
(B) REFERENCES.— 
(i) IN
GENERAL.—Except as provided in clauses 
(ii) and (iii), with respect to such a State, a reference 
in this Act or a core program provision to a local 
board shall be considered to be a reference to the 
State board, and a reference in the Act or provision 
to a local area or region shall be considered to be 
a reference to the State. 
(ii) PLANS.—The State board shall prepare a local 
plan under section 108 for the State, and submit the 
plan for approval as part of the State plan. 
(iii) PERFORMANCE ACCOUNTABILITY MEASURES.— 
The State shall not be required to meet and report 
on a set of local performance accountability measures. 
(d) FUNCTIONS OF LOCAL BOARD.—Consistent with section 108, 
the functions of the local board shall include the following: 
(1) LOCAL PLAN.—The local board, in partnership with the 
chief elected official for the local area involved, shall develop 
and submit a local plan to the Governor that meets the require-
ments in section 108. If the local area is part of a planning 
region that includes other local areas, the local board shall 
collaborate with the other local boards and chief elected officials 
from such other local areas in the preparation and submission 
of a regional plan as described in section 106(c)(2). 
(2) WORKFORCE RESEARCH AND REGIONAL LABOR MARKET 
ANALYSIS.—In order to assist in the development and 
implementation of the local plan, the local board shall— 
(A) carry out analyses of the economic conditions in 
the region, the needed knowledge and skills for the region, 
the workforce in the region, and workforce development 
activities (including education and training) in the region 
described in section 108(b)(1)(D), and regularly update such 
information; 
(B) assist the Governor in developing the statewide 
workforce and labor market information system described 
in section 15(e) of the Wagner-Peyser Act (29 U.S.C. 49l– 
2(e)), specifically in the collection, analysis, and utilization 
of workforce and labor market information for the region; 
and 
(C) conduct such other research, data collection, and 
analysis related to the workforce needs of the regional 
economy as the board, after receiving input from a wide
H. R. 803—37 
array of stakeholders, determines to be necessary to carry 
out its functions. 
(3) CONVENING, BROKERING, LEVERAGING.—The local board 
shall convene local workforce development system stakeholders 
to assist in the development of the local plan under section 
108 and in identifying non-Federal expertise and resources 
to leverage support for workforce development activities. The 
local board, including standing committees, may engage such 
stakeholders in carrying out the functions described in this 
subsection. 
(4) EMPLOYER ENGAGEMENT.—The local board shall lead 
efforts to engage with a diverse range of employers and with 
entities in the region involved— 
(A) to promote business representation (particularly 
representatives with optimal policymaking or hiring 
authority from employers whose employment opportunities 
reflect existing and emerging employment opportunities 
in the region) on the local board; 
(B) to develop effective linkages (including the use 
of intermediaries) with employers in the region to support 
employer utilization of the local workforce development 
system and to support local workforce investment activities; 
(C) to ensure that workforce investment activities meet 
the needs of employers and support economic growth in 
the region, by enhancing communication, coordination, and 
collaboration among employers, economic development enti-
ties, and service providers; and 
(D) to develop and implement proven or promising 
strategies for meeting the employment and skill needs of 
workers and employers (such as the establishment of 
industry and sector partnerships), that provide the skilled 
workforce needed by employers in the region, and that 
expand employment and career advancement opportunities 
for workforce development system participants in in- 
demand industry sectors or occupations. 
(5) CAREER
PATHWAYS
DEVELOPMENT.—The local board, 
with representatives of secondary and postsecondary education 
programs, shall lead efforts in the local area to develop and 
implement career pathways within the local area by aligning 
the employment, training, education, and supportive services 
that are needed by adults and youth, particularly individuals 
with barriers to employment. 
(6) PROVEN AND PROMISING PRACTICES.—The local board 
shall lead efforts in the local area to— 
(A) identify and promote proven and promising strate-
gies and initiatives for meeting the needs of employers, 
and workers and jobseekers (including individuals with 
barriers to employment) in the local workforce development 
system, including providing physical and programmatic 
accessibility, in accordance with section 188, if applicable, 
and applicable provisions of the Americans with Disabilities 
Act of 1990 (42 U.S.C. 12101 et seq.), to the one-stop 
delivery system; and 
(B) identify and disseminate information on proven 
and promising practices carried out in other local areas 
for meeting such needs.
H. R. 803—38 
(7) TECHNOLOGY.—The local board shall develop strategies 
for using technology to maximize the accessibility and effective-
ness of the local workforce development system for employers, 
and workers and jobseekers, by— 
(A) facilitating connections among the intake and case 
management information systems of the one-stop partner 
programs to support a comprehensive workforce develop-
ment system in the local area; 
(B) facilitating access to services provided through the 
one-stop delivery system involved, including facilitating the 
access in remote areas; 
(C) identifying strategies for better meeting the needs 
of individuals with barriers to employment, including 
strategies that augment traditional service delivery, and 
increase access to services and programs of the one-stop 
delivery system, such as improving digital literacy skills; 
and 
(D) leveraging resources and capacity within the local 
workforce development system, including resources and 
capacity for services for individuals with barriers to employ-
ment. 
(8) PROGRAM OVERSIGHT.—The local board, in partnership 
with the chief elected official for the local area, shall— 
(A)(i) conduct oversight for local youth workforce 
investment activities authorized under section 129(c), local 
employment and training activities authorized under sub-
sections (c) and (d) of section 134, and the one-stop delivery 
system in the local area; and 
(ii) ensure the appropriate use and management of 
the funds provided under subtitle B for the activities and 
system described in clause (i); and 
(B) for workforce development activities, ensure the 
appropriate use, management, and investment of funds 
to maximize performance outcomes under section 116. 
(9) NEGOTIATION OF LOCAL PERFORMANCE ACCOUNTABILITY 
MEASURES.—The local board, the chief elected official, and the 
Governor shall negotiate and reach agreement on local perform-
ance accountability measures as described in section 116(c). 
(10) SELECTION OF OPERATORS AND PROVIDERS.— 
(A) SELECTION OF ONE-STOP OPERATORS.—Consistent 
with section 121(d), the local board, with the agreement 
of the chief elected official for the local area— 
(i) shall designate or certify one-stop operators as 
described in section 121(d)(2)(A); and 
(ii) may terminate for cause the eligibility of such 
operators. 
(B) SELECTION OF YOUTH PROVIDERS.—Consistent with 
section 123, the local board— 
(i) shall identify eligible providers of youth 
workforce investment activities in the local area by 
awarding grants or contracts on a competitive basis 
(except as provided in section 123(b)), based on the 
recommendations of the youth standing committee, if 
such a committee is established for the local area under 
subsection (b)(4); and 
(ii) may terminate for cause the eligibility of such 
providers.
H. R. 803—39 
(C) 
IDENTIFICATION
OF
ELIGIBLE
PROVIDERS
OF 
TRAINING SERVICES.—Consistent with section 122, the local 
board shall identify eligible providers of training services 
in the local area. 
(D) IDENTIFICATION OF ELIGIBLE PROVIDERS OF CAREER 
SERVICES.—If the one-stop operator does not provide career 
services described in section 134(c)(2) in a local area, the 
local board shall identify eligible providers of those career 
services in the local area by awarding contracts. 
(E) CONSUMER
CHOICE
REQUIREMENTS.—Consistent 
with section 122 and paragraphs (2) and (3) of section 
134(c), the local board shall work with the State to ensure 
there are sufficient numbers and types of providers of 
career services and training services (including eligible pro-
viders with expertise in assisting individuals with disabil-
ities and eligible providers with expertise in assisting 
adults in need of adult education and literacy activities) 
serving the local area and providing the services involved 
in a manner that maximizes consumer choice, as well as 
providing opportunities that lead to competitive integrated 
employment for individuals with disabilities. 
(11) COORDINATION WITH EDUCATION PROVIDERS.— 
(A) IN
GENERAL.—The local board shall coordinate 
activities with education and training providers in the local 
area, including providers of workforce investment activities, 
providers of adult education and literacy activities under 
title II, providers of career and technical education (as 
defined in section 3 of the Carl D. Perkins Career and 
Technical Education Act of 2006 (20 U.S.C. 2302)) and 
local agencies administering plans under title I of the 
Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.), other 
than section 112 or part C of that title (29 U.S.C. 732, 
741). 
(B) APPLICATIONS AND AGREEMENTS.—The coordination 
described in subparagraph (A) shall include— 
(i) consistent with section 232— 
(I) reviewing the applications to provide adult 
education and literacy activities under title II for 
the local area, submitted under such section to 
the eligible agency by eligible providers, to deter-
mine whether such applications are consistent 
with the local plan; and 
(II) making recommendations to the eligible 
agency to promote alignment with such plan; and 
(ii) replicating cooperative agreements in accord-
ance with subparagraph (B) of section 101(a)(11) of 
the Rehabilitation Act of 1973 (29 U.S.C. 721(a)(11)), 
and implementing cooperative agreements in accord-
ance with that section with the local agencies admin-
istering plans under title I of that Act (29 U.S.C. 
720 et seq.) (other than section 112 or part C of that 
title (29 U.S.C. 732, 741) and subject to section 121(f)), 
with respect to efforts that will enhance the provision 
of services to individuals with disabilities and other 
individuals, such as cross training of staff, technical 
assistance, use and sharing of information, cooperative
H. R. 803—40 
efforts with employers, and other efforts at cooperation, 
collaboration, and coordination. 
(C) COOPERATIVE AGREEMENT.—In this paragraph, the 
term ‘‘cooperative agreement’’ means an agreement entered 
into by a State designated agency or State designated 
unit under subparagraph (A) of section 101(a)(11) of the 
Rehabilitation Act of 1973. 
(12) BUDGET AND ADMINISTRATION.— 
(A) BUDGET.—The local board shall develop a budget 
for the activities of the local board in the local area, con-
sistent with the local plan and the duties of the local 
board under this section, subject to the approval of the 
chief elected official. 
(B) ADMINISTRATION.— 
(i) GRANT RECIPIENT.— 
(I) IN GENERAL.—The chief elected official in 
a local area shall serve as the local grant recipient 
for, and shall be liable for any misuse of, the 
grant funds allocated to the local area under sec-
tions 128 and 133, unless the chief elected official 
reaches an agreement with the Governor for the 
Governor to act as the local grant recipient and 
bear such liability. 
(II) DESIGNATION.—In order to assist in 
administration of the grant funds, the chief elected 
official or the Governor, where the Governor serves 
as the local grant recipient for a local area, may 
designate an entity to serve as a local grant sub-
recipient for such funds or as a local fiscal agent. 
Such designation shall not relieve the chief elected 
official or the Governor of the liability for any 
misuse of grant funds as described in subclause 
(I). 
(III) DISBURSAL.—The local grant recipient or 
an entity designated under subclause (II) shall 
disburse the grant funds for workforce investment 
activities at the direction of the local board, pursu-
ant to the requirements of this title. The local 
grant recipient or entity designated under sub-
clause (II) shall disburse the funds immediately 
on receiving such direction from the local board. 
(ii) GRANTS AND DONATIONS.—The local board may 
solicit and accept grants and donations from sources 
other than Federal funds made available under this 
Act. 
(iii) TAX-EXEMPT STATUS.—For purposes of carrying 
out duties under this Act, local boards may incorporate, 
and may operate as entities described in section 
501(c)(3) of the Internal Revenue Code of 1986 that 
are exempt from taxation under section 501(a) of such 
Code. 
(13) ACCESSIBILITY FOR INDIVIDUALS WITH DISABILITIES.— 
The local board shall annually assess the physical and pro-
grammatic accessibility, in accordance with section 188, if 
applicable, and applicable provisions of the Americans with 
Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), of all one- 
stop centers in the local area.
H. R. 803—41 
(e) SUNSHINE PROVISION.—The local board shall make available 
to the public, on a regular basis through electronic means and 
open meetings, information regarding the activities of the local 
board, including information regarding the local plan prior to 
submission of the plan, and regarding membership, the designation 
and certification of one-stop operators, and the award of grants 
or contracts to eligible providers of youth workforce investment 
activities, and on request, minutes of formal meetings of the local 
board. 
(f) STAFF.— 
(1) IN GENERAL.—The local board may hire a director and 
other staff to assist in carrying out the functions described 
in subsection (d) using funds available under sections 128(b) 
and 133(b) as described in section 128(b)(4). 
(2) QUALIFICATIONS.—The local board shall establish and 
apply a set of objective qualifications for the position of director, 
that ensures that the individual selected has the requisite 
knowledge, skills, and abilities, to meet identified benchmarks 
and to assist in effectively carrying out the functions of the 
local board. 
(3) LIMITATION ON RATE.—The director and staff described 
in paragraph (1) shall be subject to the limitations on the 
payment of salaries and bonuses described in section 194(15). 
(g) LIMITATIONS.— 
(1) TRAINING SERVICES.— 
(A) IN GENERAL.—Except as provided in subparagraph 
(B), no local board may provide training services. 
(B) WAIVERS OF TRAINING PROHIBITION.—The Governor 
of the State in which a local board is located may, pursuant 
to a request from the local board, grant a written waiver 
of the prohibition set forth in subparagraph (A) (relating 
to the provision of training services) for a program of 
training services, if the local board— 
(i) submits to the Governor a proposed request 
for the waiver that includes— 
(I) satisfactory evidence that there is an 
insufficient number of eligible providers of such 
a program of training services to meet local 
demand in the local area; 
(II) information demonstrating that the board 
meets the requirements for an eligible provider 
of training services under section 122; and 
(III) information demonstrating that the pro-
gram of training services prepares participants for 
an in-demand industry sector or occupation in the 
local area; 
(ii) makes the proposed request available to eligible 
providers of training services and other interested 
members of the public for a public comment period 
of not less than 30 days; and 
(iii) includes, in the final request for the waiver, 
the evidence and information described in clause (i) 
and the comments received pursuant to clause (ii). 
(C) DURATION.—A waiver granted to a local board 
under subparagraph (B) shall apply for a period that shall 
not exceed the duration of the local plan. The waiver may 
be renewed for additional periods under subsequent local
H. R. 803—42 
plans, not to exceed the durations of such subsequent plans, 
pursuant to requests from the local board, if the board 
meets the requirements of subparagraph (B) in making 
the requests. 
(D) REVOCATION.—The Governor shall have the 
authority to revoke the waiver during the appropriate 
period described in subparagraph (C) if the Governor deter-
mines the waiver is no longer needed or that the local 
board involved has engaged in a pattern of inappropriate 
referrals to training services operated by the local board. 
(2) CAREER SERVICES; DESIGNATION OR CERTIFICATION AS 
ONE-STOP OPERATORS.—A local board may provide career serv-
ices described in section 134(c)(2) through a one-stop delivery 
system or be designated or certified as a one-stop operator 
only with the agreement of the chief elected official in the 
local area and the Governor. 
(3) LIMITATION ON AUTHORITY.—Nothing in this Act shall 
be construed to provide a local board with the authority to 
mandate curricula for schools. 
(h) CONFLICT OF INTEREST.—A member of a local board, or 
a member of a standing committee, may not— 
(1) vote on a matter under consideration by the local 
board— 
(A) regarding the provision of services by such member 
(or by an entity that such member represents); or 
(B) that would provide direct financial benefit to such 
member or the immediate family of such member; or 
(2) engage in any other activity determined by the Governor 
to constitute a conflict of interest as specified in the State 
plan. 
(i) ALTERNATIVE ENTITY.— 
(1) IN
GENERAL.—For purposes of complying with sub-
sections (a), (b), and (c), 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 corresponds to the local 
area); 
(B) was in existence on the day before the date of 
enactment of this Act, pursuant to State law; and 
(C) includes— 
(i) representatives of business in the local area; 
and 
(ii)(I) representatives of labor organizations (for 
a local area in which employees are represented by 
labor organizations), nominated by local labor federa-
tions; or 
(II) other representatives of employees in the local 
area (for a local area in which no employees are rep-
resented by such organizations). 
(2) REFERENCES.—A reference in this Act or a core program 
provision to a local board, shall include a reference to such 
an entity. 
SEC. 108. LOCAL PLAN. 
(a) IN GENERAL.—Each local board shall develop and submit 
to the Governor a comprehensive 4-year local plan, in partnership
H. R. 803—43 
with the chief elected official. The local plan shall support the 
strategy described in the State plan in accordance with section 
102(b)(1)(E), and otherwise be consistent with the State plan. If 
the local area is part of a planning region, the local board shall 
comply with section 106(c) in the preparation and submission of 
a regional plan. At the end of the first 2-year period of the 4- 
year local plan, each local board shall review the local plan and 
the local board, in partnership with the chief elected official, shall 
prepare and submit modifications to the local plan to reflect changes 
in labor market and economic conditions or in other factors affecting 
the implementation of the local plan. 
(b) CONTENTS.—The local plan shall include— 
(1) a description of the strategic planning elements con-
sisting of— 
(A) an analysis of the regional economic conditions 
including— 
(i) existing and emerging in-demand industry sec-
tors and occupations; and 
(ii) the employment needs of employers in those 
industry sectors and occupations; 
(B) an analysis of the knowledge and skills needed 
to meet the employment needs of the employers in the 
region, including employment needs in in-demand industry 
sectors and occupations; 
(C) an analysis of the workforce in the region, including 
current labor force employment (and unemployment) data, 
and information on labor market trends, and the edu-
cational and skill levels of the workforce in the region, 
including individuals with barriers to employment; 
(D) an analysis of the workforce development activities 
(including education and training) in the region, including 
an analysis of the strengths and weaknesses of such serv-
ices, and the capacity to provide such services, to address 
the identified education and skill needs of the workforce 
and the employment needs of employers in the region; 
(E) a description of the local board’s strategic vision 
and goals for preparing an educated and skilled workforce 
(including youth and individuals with barriers to employ-
ment), including goals relating to the performance account-
ability measures based on primary indicators of perform-
ance described in section 116(b)(2)(A) in order to support 
regional economic growth and economic self-sufficiency; and 
(F) taking into account analyses described in subpara-
graphs (A) through (D), a strategy to work with the entities 
that carry out the core programs to align resources avail-
able to the local area, to achieve the strategic vision and 
goals described in subparagraph (E); 
(2) a description of the workforce development system in 
the local area that identifies the programs that are included 
in that system and how the local board will work with the 
entities carrying out core programs and other workforce 
development programs to support alignment to provide services, 
including programs of study authorized under the Carl D. Per-
kins Career and Technical Education Act of 2006 (20 U.S.C. 
2301 et seq.), that support the strategy identified in the State 
plan under section 102(b)(1)(E);
H. R. 803—44 
(3) a description of how the local board, working with 
the entities carrying out core programs, will expand access 
to employment, training, education, and supportive services 
for eligible individuals, particularly eligible individuals with 
barriers to employment, including how the local board will 
facilitate the development of career pathways and co-enroll-
ment, as appropriate, in core programs, and improve access 
to activities leading to a recognized postsecondary credential 
(including a credential that is an industry-recognized certificate 
or certification, portable, and stackable); 
(4) a description of the strategies and services that will 
be used in the local area— 
(A) in order to— 
(i) facilitate engagement of employers, including 
small employers and employers in in-demand industry 
sectors and occupations, in workforce development pro-
grams; 
(ii) support a local workforce development system 
that meets the needs of businesses in the local area; 
(iii) better coordinate workforce development pro-
grams and economic development; and 
(iv) strengthen linkages between the one-stop 
delivery system and unemployment insurance pro-
grams; and 
(B) that may include the implementation of initiatives 
such as incumbent worker training programs, on-the-job 
training programs, customized training programs, industry 
and sector strategies, career pathways initiatives, utiliza-
tion of effective business intermediaries, and other business 
services and strategies, designed to meet the needs of 
employers in the corresponding region in support of the 
strategy described in paragraph (1)(F); 
(5) 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 region 
in which the local area is located (or planning region), and 
promote entrepreneurial skills training and microenterprise 
services; 
(6) a description of the one-stop delivery system in the 
local area, including— 
(A) a description of how the local board will ensure 
the continuous improvement of eligible providers of services 
through the system and ensure that such providers meet 
the employment needs of local employers, and workers 
and jobseekers; 
(B) a description of how the local board will facilitate 
access to services provided through the one-stop delivery 
system, including in remote areas, through the use of tech-
nology and through other means; 
(C) a description of how entities within the one-stop 
delivery system, including one-stop operators and the one- 
stop partners, will comply with section 188, if applicable, 
and applicable provisions of the Americans with Disabilities 
Act of 1990 (42 U.S.C. 12101 et seq.) regarding the physical 
and programmatic accessibility of facilities, programs and 
services, technology, and materials for individuals with 
disabilities, including providing staff training and support
H. R. 803—45 
for addressing the needs of individuals with disabilities; 
and 
(D) a description of the roles and resource contributions 
of the one-stop partners; 
(7) a description and assessment of the type and availability 
of adult and dislocated worker employment and training activi-
ties in the local area; 
(8) a description of how the local board will coordinate 
workforce investment activities carried out in the local area 
with statewide rapid response activities, as described in section 
134(a)(2)(A); 
(9) a description and assessment of the type and availability 
of youth workforce investment activities in the local area, 
including activities for youth who are individuals with disabil-
ities, which description and assessment shall include an identi-
fication of successful models of such youth workforce investment 
activities; 
(10) a description of how the local board will coordinate 
education and workforce investment activities carried out in 
the local area with relevant secondary and postsecondary edu-
cation programs and activities to coordinate strategies, enhance 
services, and avoid duplication of services; 
(11) a description of how the local board will coordinate 
workforce investment activities carried out under this title in 
the local area with the provision of transportation, including 
public transportation, and other appropriate supportive services 
in the local area; 
(12) a description of plans and strategies for, and assur-
ances concerning, 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, to improve service 
delivery and avoid duplication of services; 
(13) a description of how the local board will coordinate 
workforce investment activities carried out under this title in 
the local area with the provision of adult education and literacy 
activities under title II in the local area, including a description 
of how the local board will carry out, consistent with subpara-
graphs (A) and (B)(i) of section 107(d)(11) and section 232, 
the review of local applications submitted under title II; 
(14) a description of the replicated cooperative agreements 
(as defined in section 107(d)(11)) between the local board or 
other local entities described in section 101(a)(11)(B) of the 
Rehabilitation Act of 1973 (29 U.S.C. 721(a)(11)(B)) and the 
local office of a designated State agency or designated State 
unit administering programs carried out under title I of such 
Act (29 U.S.C. 720 et seq.) (other than section 112 or part 
C of that title (29 U.S.C. 732, 741) and subject to section 
121(f)) in accordance with section 101(a)(11) of such Act (29 
U.S.C. 721(a)(11)) with respect to efforts that will enhance 
the provision of services to individuals with disabilities and 
to other individuals, such as cross training of staff, technical 
assistance, use and sharing of information, cooperative efforts 
with employers, and other efforts at cooperation, collaboration, 
and coordination; 
(15) an identification of the entity responsible for the dis-
bursal of grant funds described in section 107(d)(12)(B)(i)(III),
H. R. 803—46 
as determined by the chief elected official or the Governor 
under section 107(d)(12)(B)(i); 
(16) a description of the competitive process to be used 
to award the subgrants and contracts in the local area for 
activities carried out under this title; 
(17) a description of the local levels of performance nego-
tiated with the Governor and chief elected official pursuant 
to section 116(c), to be used to measure the performance of 
the local area and to be used by the local board for measuring 
the performance of the local fiscal agent (where appropriate), 
eligible providers under subtitle B, and the one-stop delivery 
system, in the local area; 
(18) a description of the actions the local board will take 
toward becoming or remaining a high-performing board, con-
sistent with the factors developed by the State board pursuant 
to section 101(d)(6); 
(19) a description of how training services under chapter 
3 of subtitle B will be provided in accordance with section 
134(c)(3)(G), including, if contracts for the training services 
will be used, how the use of such contracts will be coordinated 
with the use of individual training accounts under that chapter 
and how the local board will ensure informed customer choice 
in the selection of training programs regardless of how the 
training services are to be provided; 
(20) a description of the process used by the local board, 
consistent with subsection (d), to provide an opportunity for 
public comment, including comment by representatives of 
businesses and comment by representatives of labor organiza-
tions, and input into the development of the local plan, prior 
to submission of the plan; 
(21) a description of how one-stop centers are implementing 
and transitioning to an integrated, technology-enabled intake 
and case management information system for programs carried 
out under this Act and programs carried out by one-stop part-
ners; and 
(22) such other information as the Governor may require. 
(c) EXISTING ANALYSIS.—As appropriate, a local area may use 
an existing analysis in order to carry out the requirements of 
subsection (b)(1) concerning an analysis. 
(d) PROCESS.—Prior to the date on which the local board sub-
mits a local plan under this section, the local board shall— 
(1) make available copies of a proposed local plan to the 
public through electronic and other means, such as public 
hearings and local news media; 
(2) allow members of the public, including representatives 
of business, representatives of labor organizations, and rep-
resentatives of education to submit to the local board comments 
on the proposed local plan, not later than the end of the 
30-day period beginning 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 disagree-
ment with the plan. 
(e) PLAN SUBMISSION AND APPROVAL.—A local plan submitted 
to the Governor under this section (including a modification to 
such a local plan) shall be considered to be approved by the Gov-
ernor at the end of the 90-day period beginning on the day the
H. R. 803—47 
Governor receives the plan (including such a modification), unless 
the Governor makes a written determination during the 90-day 
period that— 
(1) deficiencies in activities carried out under this subtitle 
or subtitle B have been identified, through audits conducted 
under section 184 or otherwise, and the local area has not 
made acceptable progress in implementing corrective measures 
to address the deficiencies; 
(2) the plan does not comply with the applicable provisions 
of this Act; or 
(3) the plan does not align with the State plan, including 
failing to provide for alignment of the core programs to support 
the strategy identified in the State plan in accordance with 
section 102(b)(1)(E). 
CHAPTER 3—BOARD PROVISIONS 
SEC. 111. FUNDING OF STATE AND LOCAL BOARDS. 
(a) STATE BOARDS.—In funding a State board under this sub-
title, a State— 
(1) shall use funds available as described in section 
129(b)(3) or 134(a)(3)(B); and 
(2) may use non-Federal funds available to the State that 
the State determines are appropriate and available for that 
use. 
(b) LOCAL BOARDS.—In funding a local board under this sub-
title, the chief elected official and local board for the local area— 
(1) shall use funds available as described in section 
128(b)(4); and 
(2) may use non-Federal funds available to the local area 
that the chief elected official and local board determine are 
appropriate and available for that use. 
CHAPTER 4—PERFORMANCE ACCOUNTABILITY 
SEC. 116. PERFORMANCE ACCOUNTABILITY SYSTEM. 
(a) PURPOSE.—The purpose of this section is to establish 
performance accountability measures that apply across the core 
programs to assess the effectiveness of States and local areas (for 
core programs described in subtitle B) in achieving positive out-
comes for individuals served by those programs. 
(b) STATE PERFORMANCE ACCOUNTABILITY MEASURES.— 
(1) IN GENERAL.—For each State, the performance account-
ability measures for the core programs shall consist of— 
(A)(i) the primary indicators of performance described 
in paragraph (2)(A); and 
(ii) the additional indicators of performance (if any) 
identified by the State under paragraph (2)(B); and 
(B) a State adjusted level of performance for each 
indicator described in subparagraph (A). 
(2) INDICATORS OF PERFORMANCE.— 
(A) PRIMARY INDICATORS OF PERFORMANCE.— 
(i) IN GENERAL.—The State primary indicators of 
performance for activities provided under the adult 
and dislocated worker programs authorized under 
chapter 3 of subtitle B, the program of adult education 
and literacy activities authorized under title II, the
H. R. 803—48 
employment services program authorized under sec-
tions 1 through 13 of the Wagner-Peyser Act (29 U.S.C. 
49 et seq.) (except that subclauses (IV) and (V) shall 
not apply to such program), and the program author-
ized under title I of the Rehabilitation Act of 1973 
(29 U.S.C. 720 et seq.), other than section 112 or part 
C of that title (29 U.S.C. 732, 741), shall consist of— 
(I) the percentage of program participants who 
are in unsubsidized employment during the second 
quarter after exit from the program; 
(II) the percentage of program participants 
who are in unsubsidized employment during the 
fourth quarter after exit from the program; 
(III) the median earnings of program partici-
pants who are in unsubsidized employment during 
the second quarter after exit from the program; 
(IV) the percentage of program participants 
who obtain a recognized postsecondary credential, 
or a secondary school diploma or its recognized 
equivalent (subject to clause (iii)), during participa-
tion in or within 1 year after exit from the pro-
gram; 
(V) the percentage of program participants 
who, during a program year, are in an education 
or training program that leads to a recognized 
postsecondary credential or employment and who 
are achieving measurable skill gains toward such 
a credential or employment; and 
(VI) the indicators of effectiveness in serving 
employers established pursuant to clause (iv). 
(ii) PRIMARY INDICATORS FOR ELIGIBLE YOUTH.— 
The primary indicators of performance for the youth 
program authorized under chapter 2 of subtitle B shall 
consist of— 
(I) the percentage of program participants who 
are in education or training activities, or in unsub-
sidized employment, during the second quarter 
after exit from the program; 
(II) the percentage of program participants 
who are in education or training activities, or in 
unsubsidized employment, during the fourth 
quarter after exit from the program; and 
(III) the primary indicators of performance 
described in subclauses (III) through (VI) of 
subparagraph (A)(i). 
(iii) INDICATOR
RELATING
TO
CREDENTIAL.—For 
purposes of clause (i)(IV), or clause (ii)(III) with respect 
to clause (i)(IV), program participants who obtain a 
secondary school diploma or its recognized equivalent 
shall be included in the percentage counted as meeting 
the criterion under such clause only if such partici-
pants, in addition to obtaining such diploma or its 
recognized equivalent, have obtained or retained 
employment or are in an education or training program 
leading to a recognized postsecondary credential within 
1 year after exit from the program.
H. R. 803—49 
(iv) INDICATOR FOR SERVICES TO EMPLOYERS.—Prior 
to the commencement of the second full program year 
after the date of enactment of this Act, for purposes 
of clauses (i)(VI), or clause (ii)(III) with respect to 
clause (i)(IV), the Secretary of Labor and the Secretary 
of Education, after consultation with the representa-
tives described in paragraph (4)(B), shall jointly 
develop and establish, for purposes of this subpara-
graph, 1 or more primary indicators of performance 
that indicate the effectiveness of the core programs 
in serving employers. 
(B) ADDITIONAL INDICATORS.—A State may identify in 
the State plan additional performance accountability 
indicators. 
(3) LEVELS OF PERFORMANCE.— 
(A) STATE ADJUSTED LEVELS OF PERFORMANCE FOR PRI-
MARY INDICATORS.— 
(i) IN GENERAL.—For each State submitting a State 
plan, there shall be established, in accordance with 
this subparagraph, levels of performance for each of 
the corresponding primary indicators of performance 
described in paragraph (2) for each of the programs 
described in clause (ii). 
(ii) INCLUDED PROGRAMS.—The programs included 
under clause (i) are— 
(I) the youth program authorized under 
chapter 2 of subtitle B; 
(II) the adult program authorized under 
chapter 3 of subtitle B; 
(III) the dislocated worker program authorized 
under chapter 3 of subtitle B; 
(IV) the program of adult education and lit-
eracy activities authorized under title II; 
(V) the employment services program author-
ized under sections 1 through 13 of the Wagner- 
Peyser Act (29 U.S.C. 49 et seq.); and 
(VI) the program authorized under title I of 
the Rehabilitation Act of 1973 (29 U.S.C. 720 et 
seq.), other than section 112 or part C of that 
title (29 U.S.C. 732, 741). 
(iii) IDENTIFICATION IN STATE PLAN.—Each State 
shall identify, in the State plan, expected levels of 
performance for each of the corresponding primary 
indicators of performance for each of the programs 
described in clause (ii) for the first 2 program years 
covered by the State plan. 
(iv) AGREEMENT ON STATE ADJUSTED LEVELS OF 
PERFORMANCE.— 
(I) FIRST
YEARS.—The State shall reach 
agreement with the Secretary of Labor, in conjunc-
tion with the Secretary of Education on levels of 
performance for each indicator described in clause 
(iii) for each of the programs described in clause 
(ii) for each of the first 2 program years covered 
by the State plan. In reaching the agreement, the 
State and the Secretary of Labor in conjunction 
with the Secretary of Education shall take into
H. R. 803—50 
account the levels identified in the State plan 
under clause (iii) and the factors described in 
clause (v). The levels agreed to shall be considered 
to be the State adjusted levels of performance for 
the State for such program years and shall be 
incorporated into the State plan prior to the 
approval of such plan. 
(II) THIRD AND FOURTH YEAR.—The State and 
the Secretary of Labor, in conjunction with the 
Secretary of Education, shall reach agreement, 
prior to the third program year covered by the 
State plan, on levels of performance for each indi-
cator described in clause (iii) for each of the pro-
grams described in clause (ii) for each of the third 
and fourth program years covered by the State 
plan. In reaching the agreement, the State and 
Secretary of Labor, in conjunction with the Sec-
retary of Education, shall take into account the 
factors described in clause (v). The levels agreed 
to shall be considered to be the State adjusted 
levels of performance for the State for such pro-
gram years and shall be incorporated into the 
State plan as a modification to the plan. 
(v) 
FACTORS.—In 
reaching 
the 
agreements 
described in clause (iv), the State and Secretaries 
shall— 
(I) take into account how the levels involved 
compare with the State adjusted levels of perform-
ance established for other States; 
(II) ensure that the levels involved are 
adjusted, using the objective statistical model 
established by the Secretaries pursuant to clause 
(viii), based on— 
(aa) the differences among States in actual 
economic conditions (including differences in 
unemployment rates and job losses or gains 
in particular industries); and 
(bb) the characteristics of participants 
when the participants entered the program 
involved, including indicators of poor work his-
tory, lack of work experience, lack of edu-
cational or occupational skills attainment, dis-
location from high-wage and high-benefit 
employment, low levels of literacy or English 
proficiency, disability status, homelessness, ex- 
offender status, and welfare dependency; 
(III) take into account the extent to which 
the levels involved promote continuous improve-
ment 
in 
performance 
accountability 
on 
the 
performance accountability measures by such 
State and ensure optimal return on the investment 
of Federal funds; and 
(IV) take into account the extent to which 
the levels involved will assist the State in meeting 
the goals described in clause (vi). 
(vi) 
GOALS.—In 
order 
to 
promote 
enhanced 
performance outcomes and to facilitate the process of
H. R. 803—51 
reaching agreements with the States under clause (iv), 
the Secretary of Labor, in conjunction with the Sec-
retary of Education, shall establish performance goals 
for the core programs, in accordance with the Govern-
ment Performance and Results Act of 1993 (Public 
Law 103–62; 107 Stat. 285) and the amendments made 
by that Act, and in consultation with States and other 
appropriate parties. Such goals shall be long-term goals 
for the adjusted levels of performance to be achieved 
by each of the programs described in clause (ii) 
regarding the corresponding primary indicators of 
performance described in paragraph (2)(A). 
(vii) REVISIONS BASED ON ECONOMIC CONDITIONS 
AND INDIVIDUALS SERVED DURING THE PROGRAM YEAR.— 
The Secretary of Labor, in conjunction with the Sec-
retary of Education, shall, in accordance with the objec-
tive statistical model developed pursuant to clause 
(viii), revise the State adjusted levels of performance 
applicable for each of the programs described in clause 
(ii), for a program year and a State, to reflect the 
actual economic conditions and characteristics of 
participants (as described in clause (v)(II)) in that pro-
gram during such program year in such State. 
(viii) STATISTICAL ADJUSTMENT MODEL.—The Sec-
retary of Labor and the Secretary of Education, after 
consultation with the representatives described in 
paragraph (4)(B), shall develop and disseminate an 
objective statistical model that will be used to make 
the adjustments in the State adjusted levels of perform-
ance for actual economic conditions and characteristics 
of participants under clauses (v) and (vii). 
(B) LEVELS OF PERFORMANCE FOR ADDITIONAL INDICA-
TORS.—The State may identify, in the State plan, State 
levels of performance for each of the additional indicators 
identified under paragraph (2)(B). Such levels shall be 
considered to be State adjusted levels of performance for 
purposes of this section. 
(4) DEFINITIONS OF INDICATORS OF PERFORMANCE.— 
(A) IN GENERAL.—In order to ensure nationwide com-
parability of performance data, the Secretary of Labor and 
the Secretary of Education, after consultation with rep-
resentatives described in subparagraph (B), shall issue 
definitions for the indicators described in paragraph (2). 
(B) REPRESENTATIVES.—The representatives referred to 
in subparagraph (A) are representatives of States and polit-
ical subdivisions, business and industry, employees, eligible 
providers of activities carried out through the core pro-
grams, educators, researchers, participants, the lead State 
agency officials with responsibility for the programs carried 
out through the core programs, individuals with expertise 
in serving individuals with barriers to employment, and 
other interested parties. 
(c) LOCAL PERFORMANCE ACCOUNTABILITY MEASURES FOR SUB-
TITLE B.—
H. R. 803—52 
(1) IN GENERAL.—For each local area in a State designated 
under section 106, the local performance accountability meas-
ures for each of the programs described in subclauses (I) 
through (III) of subsection (b)(3)(A)(ii) shall consist of— 
(A)(i) the primary indicators of performance described 
in subsection (b)(2)(A) that are applicable to such programs; 
and 
(ii) additional indicators of performance, if any, identi-
fied by the State for such programs under subsection 
(b)(2)(B); and 
(B) the local level of performance for each indicator 
described in subparagraph (A). 
(2) LOCAL LEVEL OF PERFORMANCE.—The local board, the 
chief elected official, and the Governor shall negotiate and 
reach agreement on local levels of performance based on the 
State adjusted levels of performance established under sub-
section (b)(3)(A). 
(3) ADJUSTMENT FACTORS.—In negotiating the local levels 
of performance, the local board, the chief elected official, and 
the Governor shall make adjustments for the expected economic 
conditions and the expected characteristics of participants to 
be served in the local area, using the statistical adjustment 
model developed pursuant to subsection (b)(3)(A)(viii). In addi-
tion, the negotiated local levels of performance applicable to 
a program year shall be revised to reflect the actual economic 
conditions experienced and the characteristics of the popu-
lations served in the local area during such program year 
using the statistical adjustment model. 
(d) PERFORMANCE REPORTS.— 
(1) IN GENERAL.—Not later than 12 months after the date 
of enactment of this Act, the Secretary of Labor, in conjunction 
with the Secretary of Education, shall develop a template for 
performance reports that shall be used by States, local boards, 
and eligible providers of training services under section 122 
to report on outcomes achieved by the core programs. In devel-
oping such templates, the Secretary of Labor, in conjunction 
with the Secretary of Education, will take into account the 
need to maximize the value of the templates for workers, job-
seekers, employers, local elected officials, State officials, Federal 
policymakers, and other key stakeholders. 
(2) CONTENTS
OF
STATE
PERFORMANCE
REPORTS.—The 
performance report for a State shall include, subject to para-
graph (5)(C)— 
(A) information specifying the levels of performance 
achieved with respect to the primary indicators of perform-
ance described in subsection (b)(2)(A) for each of the pro-
grams described in subsection (b)(3)(A)(ii) and the State 
adjusted levels of performance with respect to such indica-
tors for each program; 
(B) information specifying the levels of performance 
achieved with respect to the primary indicators of perform-
ance described in subsection (b)(2)(A) for each of the pro-
grams described in subsection (b)(3)(A)(ii) with respect to 
individuals with barriers to employment, disaggregated by 
each subpopulation of such individuals, and by race, eth-
nicity, sex, and age;
H. R. 803—53 
(C) the total number of participants served by each 
of the programs described in subsection (b)(3)(A)(ii); 
(D) the number of participants who received career 
and training services, respectively, during the most recent 
program year and the 3 preceding program years, and 
the amount of funds spent on each type of service; 
(E) the number of participants who exited from career 
and training services, respectively, during the most recent 
program year and the 3 preceding program years; 
(F) the average cost per participant of those partici-
pants who received career and training services, respec-
tively, during the most recent program year and the 3 
preceding program years; 
(G) the percentage of participants in a program author-
ized under this subtitle who received training services and 
obtained unsubsidized employment in a field related to 
the training received; 
(H) the number of individuals with barriers to employ-
ment served by each of the programs described in sub-
section (b)(3)(A)(ii), disaggregated by each subpopulation 
of such individuals; 
(I) the number of participants who are enrolled in 
more than 1 of the programs described in subsection 
(b)(3)(A)(ii); 
(J) the percentage of the State’s annual allotment 
under section 132(b) that the State spent on administrative 
costs; 
(K) in the case of a State in which local areas are 
implementing pay-for-performance contract strategies for 
programs— 
(i) the performance of service providers entering 
into contracts for such strategies, measured against 
the levels of performance specified in the contracts 
for such strategies; and 
(ii) an evaluation of the design of the programs 
and performance of the strategies, and, where possible, 
the level of satisfaction with the strategies among 
employers and participants benefitting from the strate-
gies; and 
(L) other information that facilitates comparisons of 
programs with programs in other States. 
(3) CONTENTS OF LOCAL AREA PERFORMANCE REPORTS.— 
The performance reports for a local area shall include, subject 
to paragraph (6)(C)— 
(A) the information specified in subparagraphs (A) 
through (L) of paragraph (2), for each of the programs 
described in subclauses (I) through (III) of subsection 
(b)(3)(A)(ii); 
(B) the percentage of the local area’s allocation under 
sections 128(b) and 133(b) that the local area spent on 
administrative costs; and 
(C) other information that facilitates comparisons of 
programs with programs in other local areas (or planning 
regions, as appropriate). 
(4) CONTENTS OF ELIGIBLE TRAINING PROVIDERS PERFORM-
ANCE REPORTS.—The performance report for an eligible provider 
of training services under section 122 shall include, subject
H. R. 803—54 
to paragraph (6)(C), with respect to each program of study 
(or the equivalent) of such provider— 
(A) information specifying the levels of performance 
achieved with respect to the primary indicators of perform-
ance described in subclauses (I) through (IV) of subsection 
(b)(2)(A)(i) with respect to all individuals engaging in the 
program of study (or the equivalent); 
(B) the total number of individuals exiting from the 
program of study (or the equivalent); 
(C) the total number of participants who received 
training services through each of the adult program and 
the dislocated worker program authorized under chapter 
3 of subtitle B, disaggregated by the type of entity that 
provided the training, during the most recent program 
year and the 3 preceding program years; 
(D) the total number of participants who exited from 
training services, disaggregated by the type of entity that 
provided the training, during the most recent program 
year and the 3 preceding program years; 
(E) the average cost per participant for the participants 
who received training services, disaggregated by the type 
of entity that provided the training, during the most recent 
program year and the 3 preceding program years; and 
(F) the number of individuals with barriers to employ-
ment served by each of the adult program and the dis-
located worker program authorized under chapter 3 of sub-
title B, disaggregated by each subpopulation of such 
individuals, and by race, ethnicity, sex, and age. 
(5) DATA
VALIDATION.—In preparing the State reports 
described in this subsection, each State shall establish proce-
dures, consistent with guidelines issued by the Secretary, in 
conjunction with the Secretary of Education, to ensure the 
information contained in the reports is valid and reliable. 
(6) PUBLICATION.— 
(A) STATE PERFORMANCE REPORTS.—The Secretary of 
Labor and the Secretary of Education shall annually make 
available (including by electronic means), in an easily 
understandable format, the performance reports for States 
containing the information described in paragraph (2). 
(B) LOCAL
AREA
AND
ELIGIBLE
TRAINING
PROVIDER 
PERFORMANCE REPORTS.—The State shall make available 
(including by electronic means), in an easily understand-
able format, the performance reports for the local areas 
containing the information described in paragraph (3) and 
the performance reports for eligible providers of training 
services containing the information described in paragraph 
(4). 
(C) 
RULES
FOR
REPORTING
OF
DATA.—The 
disaggregation of data under this subsection shall not be 
required when the number of participants in a category 
is insufficient to yield statistically reliable information or 
when the results would reveal personally identifiable 
information about an individual participant. 
(D) DISSEMINATION TO CONGRESS.—The Secretary of 
Labor and the Secretary of Education shall make available 
(including by electronic means) a summary of the reports, 
and the reports, required under this subsection to the
H. R. 803—55 
Committee on Education and the Workforce of the House 
of Representatives and the Committee on Health, Edu-
cation, Labor, and Pensions of the Senate. The Secretaries 
shall prepare and make available with the reports a set 
of recommendations for improvements in and adjustments 
to pay-for-performance contract strategies used under sub-
title B. 
(e) EVALUATION OF STATE PROGRAMS.— 
(1) IN GENERAL.—Using funds authorized under a core pro-
gram and made available to carry out this section, the State, 
in coordination with local boards in the State and the State 
agencies responsible for the administration of the core pro-
grams, shall conduct ongoing evaluations of activities carried 
out in the State under such programs. The State, local boards, 
and State agencies shall conduct the evaluations in order to 
promote, establish, implement, and utilize methods for continu-
ously improving core program activities in order to achieve 
high-level performance within, and high-level outcomes from, 
the workforce development system. The State shall coordinate 
the evaluations with the evaluations provided for by the Sec-
retary of Labor and the Secretary of Education under section 
169, section 242(c)(2)(D), and sections 12(a)(5), 14, and 107 
of the Rehabilitation Act of 1973 (29 U.S.C. 709(a)(5), 711, 
727) (applied with respect to programs carried out under title 
I of that Act (29 U.S.C. 720 et seq.)) and the investigations 
provided for by the Secretary of Labor under section 10(b) 
of the Wagner-Peyser Act (29 U.S.C. 49i(b)). 
(2) DESIGN.—The evaluations conducted under this sub-
section shall be designed in conjunction with the State board, 
State agencies responsible for the administration of the core 
programs, and local boards and shall include analysis of cus-
tomer feedback and outcome and process measures in the state-
wide workforce development system. The evaluations shall use 
designs that employ the most rigorous analytical and statistical 
methods that are reasonably feasible, such as the use of control 
groups. 
(3) RESULTS.—The State shall annually prepare, submit 
to the State board and local boards in the State, and make 
available to the public (including by electronic means), reports 
containing the results of evaluations conducted under this sub-
section, to promote the efficiency and effectiveness of the 
workforce development system. 
(4) COOPERATION WITH FEDERAL EVALUATIONS.—The State 
shall, to the extent practicable, cooperate in the conduct of 
evaluations (including related research projects) provided for 
by the Secretary of Labor or the Secretary of Education under 
the provisions of Federal law identified in paragraph (1). Such 
cooperation shall include the provision of data (in accordance 
with appropriate privacy protections established by the Sec-
retary of Labor), the provision of responses to surveys, and 
allowing site visits in a timely manner, for the Secretaries 
or their agents. 
(f) SANCTIONS FOR STATE FAILURE TO MEET STATE PERFORM-
ANCE ACCOUNTABILITY MEASURES.— 
(1) STATES.—
H. R. 803—56 
(A) TECHNICAL ASSISTANCE.—If a State fails to meet 
the State adjusted levels of performance relating to indica-
tors described in subsection (b)(2)(A) for a program for 
any program year, the Secretary of Labor and the Secretary 
of Education shall provide technical assistance, including 
assistance in the development of a performance improve-
ment plan. 
(B) REDUCTION IN AMOUNT OF GRANT.—If such failure 
continues for a second consecutive year, or (except in the 
case of exceptional circumstances as determined by the 
Secretary of Labor or the Secretary of Education, as appro-
priate) a State fails to submit a report under subsection 
(d) for any program year, the percentage of each amount 
that would (in the absence of this paragraph) be reserved 
by the Governor under section 128(a) for the immediately 
succeeding program year shall be reduced by 5 percentage 
points until such date as the Secretary of Labor or the 
Secretary of Education, as appropriate, determines that 
the State meets such State adjusted levels of performance 
and has submitted such reports for the appropriate pro-
gram years. 
(g) SANCTIONS
FOR LOCAL AREA FAILURE TO MEET LOCAL 
PERFORMANCE ACCOUNTABILITY MEASURES.— 
(1) TECHNICAL ASSISTANCE.—If a local area fails to meet 
local performance accountability measures established under 
subsection (c) for the youth, adult, or dislocated worker program 
authorized under chapter 2 or 3 of subtitle B for a program 
described in subsection (d)(2)(A) for any program year, the 
Governor, or upon request by the Governor, the Secretary of 
Labor, shall provide technical assistance, which may include 
assistance in the development of a performance improvement 
plan or the development of a modified local plan (or regional 
plan). 
(2) CORRECTIVE ACTIONS.— 
(A) IN GENERAL.—If such failure continues for a third 
consecutive year, the Governor shall take corrective actions, 
which shall include development of a reorganization plan 
through which the Governor shall— 
(i) require the appointment and certification of 
a new local board, consistent with the criteria estab-
lished under section 107(b); 
(ii) prohibit the use of eligible providers and one- 
stop partners identified as achieving a poor level of 
performance; or 
(iii) take such other significant actions as the Gov-
ernor determines are appropriate. 
(B) APPEAL BY LOCAL AREA.— 
(i) APPEAL
TO
GOVERNOR.—The local board and 
chief elected official for a local area that is subject 
to a reorganization plan under subparagraph (A) may, 
not later than 30 days after receiving notice of the 
reorganization plan, appeal to the Governor to rescind 
or revise such plan. In such case, the Governor shall 
make a final decision not later than 30 days after 
the receipt of the appeal. 
(ii) SUBSEQUENT
ACTION.—The local board and 
chief elected official for a local area may, not later
H. R. 803—57 
than 30 days after receiving a decision from the Gov-
ernor pursuant to clause (i), appeal such decision to 
the Secretary of Labor. In such case, the Secretary 
shall make a final decision not later than 30 days 
after the receipt of the appeal. 
(C) EFFECTIVE DATE.—The decision made by the Gov-
ernor under subparagraph (B)(i) shall become effective at 
the time the Governor issues the decision pursuant to 
such clause. Such decision shall remain effective unless 
the Secretary of Labor rescinds or revises such plan pursu-
ant to subparagraph (B)(ii). 
(h) ESTABLISHING PAY-FOR-PERFORMANCE CONTRACT STRATEGY 
INCENTIVES.—Using non-Federal funds, the Governor may establish 
incentives for local boards to implement pay-for-performance con-
tract strategies for the delivery of training services described in 
section 134(c)(3) or activities described in section 129(c)(2) in the 
local areas served by the local boards. 
(i) FISCAL
AND MANAGEMENT ACCOUNTABILITY INFORMATION 
SYSTEMS.— 
(1) IN GENERAL.—Using funds authorized under a core pro-
gram and made available to carry out this chapter, the Gov-
ernor, in coordination with the State board, the State agencies 
administering the core programs, local boards, and chief elected 
officials in the State, shall establish and operate a fiscal and 
management accountability information system based on guide-
lines established by the Secretary of Labor and the Secretary 
of Education after consultation with the Governors of States, 
chief elected officials, and one-stop partners. Such guidelines 
shall promote efficient collection and use of fiscal and manage-
ment information for reporting and monitoring the use of funds 
authorized under the core programs and for preparing the 
annual report described in subsection (d). 
(2) WAGE RECORDS.—In measuring the progress of the State 
on State and local performance accountability measures, a State 
shall utilize quarterly wage records, consistent with State law. 
The Secretary of Labor shall make arrangements, consistent 
with State law, to ensure that the wage records of any State 
are available to any other State to the extent that such wage 
records are required by the State in carrying out the State 
plan of the State or completing the annual report described 
in subsection (d). 
(3) CONFIDENTIALITY.—In carrying out the requirements 
of this Act, the State shall comply with section 444 of the 
General Education Provisions Act (20 U.S.C. 1232g). 
Subtitle B—Workforce Investment 
Activities and Providers 
CHAPTER 1—WORKFORCE INVESTMENT ACTIVITIES 
AND PROVIDERS 
SEC. 121. ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEMS. 
(a) IN GENERAL.—Consistent with an approved State plan, the 
local board for a local area, with the agreement of the chief elected 
official for the local area, shall—
H. R. 803—58 
(1) develop and enter into the memorandum of under-
standing described in subsection (c) with one-stop partners; 
(2) designate or certify one-stop operators under subsection 
(d); and 
(3) conduct oversight with respect to the one-stop delivery 
system in the local area. 
(b) ONE-STOP PARTNERS.— 
(1) REQUIRED PARTNERS.— 
(A) ROLES AND RESPONSIBILITIES OF ONE-STOP PART-
NERS.—Each entity that carries out a program or activities 
described in subparagraph (B) in a local area shall— 
(i) provide access through the one-stop delivery 
system to such program or activities carried out by 
the entity, including making the career services 
described in section 134(c)(2) that are applicable to 
the program or activities available at the one-stop cen-
ters (in addition to any other appropriate locations); 
(ii) use a portion of the funds available for the 
program and activities to maintain the one-stop 
delivery system, including payment of the infrastruc-
ture costs of one-stop centers in accordance with sub-
section (h); 
(iii) enter into a local memorandum of under-
standing with the local board, relating 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 understanding, the requirements of this title, and 
the requirements of the Federal laws authorizing the 
program or activities; and 
(v) provide representation on the State board to 
the extent provided under section 101. 
(B) PROGRAMS
AND
ACTIVITIES.—The programs and 
activities referred to in subparagraph (A) consist of— 
(i) programs authorized under this title; 
(ii) programs authorized under the Wagner-Peyser 
Act (29 U.S.C. 49 et seq.); 
(iii) adult education and literacy activities author-
ized under title II; 
(iv) programs authorized under title I of the 
Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.) (other 
than section 112 or part C of title I of such Act (29 
U.S.C. 732, 741); 
(v) activities authorized under title V of the Older 
Americans Act of 1965 (42 U.S.C. 3056 et seq.); 
(vi) career and technical education programs at 
the postsecondary level authorized under the Carl D. 
Perkins Career and Technical Education Act of 2006 
(20 U.S.C. 2301 et seq.); 
(vii) activities authorized under chapter 2 of title 
II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.); 
(viii) activities authorized under chapter 41 of title 
38, United States Code; 
(ix) employment and training activities carried out 
under the Community Services Block Grant Act (42 
U.S.C. 9901 et seq.);
H. R. 803—59 
(x) employment and training activities carried out 
by the Department of Housing and Urban Develop-
ment; 
(xi) programs authorized under State unemploy-
ment compensation laws (in accordance with applicable 
Federal law); 
(xii) programs authorized under section 212 of the 
Second Chance Act of 2007 (42 U.S.C. 17532); and 
(xiii) programs authorized under part A of title 
IV of the Social Security Act (42 U.S.C. 601 et seq.), 
subject to subparagraph (C). 
(C) DETERMINATION BY THE GOVERNOR.— 
(i) IN GENERAL.—An entity that carries out a pro-
gram referred to in subparagraph (B)(xiii) shall be 
included in the one-stop partners for the local area, 
as a required partner, for purposes of this Act and 
the other core program provisions that are not part 
of this Act, unless the Governor provides the notifica-
tion described in clause (ii). 
(ii) NOTIFICATION.—The notification referred to in 
clause (i) is a notification that— 
(I) is made in writing of a determination by 
the Governor not to include such entity in the 
one-stop partners described in clause (i); and 
(II) is provided to the Secretary of Labor 
(referred to in this subtitle, and subtitles C 
through E, as the ‘‘Secretary’’) and the Secretary 
of Health and Human Services. 
(2) ADDITIONAL PARTNERS.— 
(A) IN GENERAL.—With the approval of the local board 
and chief elected official, in addition to the entities 
described in paragraph (1), other entities that carry out 
workforce development programs described in subpara-
graph (B) may be one-stop partners for the local area 
and carry out the responsibilities described in paragraph 
(1)(A). 
(B) PROGRAMS.—The programs referred to in subpara-
graph (A) may include— 
(i) employment and training programs adminis-
tered by the Social Security Administration, including 
the Ticket to Work and Self-Sufficiency Program estab-
lished under section 1148 of the Social Security Act 
(42 U.S.C. 1320b–19); 
(ii) employment and training programs carried out 
by the Small Business Administration; 
(iii) programs authorized under section 6(d)(4) of 
the Food and Nutrition Act of 2008 (7 U.S.C. 
2015(d)(4)); 
(iv) work programs authorized under section 6(o) 
of the Food and Nutrition Act of 2008 (7 U.S.C. 
2015(o)); 
(v) programs carried out under section 112 of the 
Rehabilitation Act of 1973 (29 U.S.C. 732); 
(vi) programs authorized under the National and 
Community Service Act of 1990 (42 U.S.C. 12501 et 
seq.); and
H. R. 803—60 
(vii) other appropriate Federal, State, or local pro-
grams, including employment, education, and training 
programs provided by public libraries or in the private 
sector. 
(c) MEMORANDUM OF UNDERSTANDING.— 
(1) DEVELOPMENT.—The local board, with the agreement 
of the chief elected official, shall develop and enter into a 
memorandum of understanding (between the local board and 
the one-stop partners), consistent with paragraph (2), con-
cerning the operation of the one-stop delivery system in the 
local area. 
(2) CONTENTS.—Each memorandum of understanding shall 
contain— 
(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 coordinated and delivered through such 
system; 
(ii) how the costs of such services and the operating 
costs of such system will be funded, including— 
(I) funding through cash and in-kind contribu-
tions (fairly evaluated), which contributions may 
include funding from philanthropic organizations 
or other private entities, or through other alter-
native financing options, to provide a stable and 
equitable funding stream for ongoing one-stop 
delivery system operations; and 
(II) funding of the infrastructure costs of one- 
stop centers in accordance with subsection (h); 
(iii) methods of referral of individuals between the 
one-stop operator and the one-stop partners for appro-
priate services and activities; 
(iv) methods to ensure the needs of workers and 
youth, and individuals with barriers to employment, 
including individuals with disabilities, are addressed 
in the provision of necessary and appropriate access 
to services, including access to technology and mate-
rials, made available through the one-stop delivery 
system; and 
(v) the duration of the memorandum of under-
standing and the procedures for amending the memo-
randum during the duration of the memorandum, and 
assurances that such memorandum shall be reviewed 
not less than once every 3-year period to ensure appro-
priate funding and delivery of services; and 
(B) such other provisions, consistent with the require-
ments of this title, as the parties to the agreement deter-
mine to be appropriate. 
(d) ONE-STOP OPERATORS.— 
(1) LOCAL
DESIGNATION
AND
CERTIFICATION.—Consistent 
with paragraphs (2) and (3), the local board, with the agreement 
of the chief elected official, is authorized to designate or certify 
one-stop operators and to terminate for cause the eligibility 
of such operators. 
(2) ELIGIBILITY.—To be eligible to receive funds made avail-
able under this subtitle to operate a one-stop center referred
H. R. 803—61 
to in subsection (e), an entity (which may be a consortium 
of entities)— 
(A) shall be designated or certified as a one-stop oper-
ator through a competitive process; and 
(B) shall be an entity (public, private, or nonprofit), 
or consortium of entities (including a consortium of entities 
that, at a minimum, includes 3 or more of the one-stop 
partners described in subsection (b)(1)), of demonstrated 
effectiveness, located in the local area, which may include— 
(i) an institution of higher education; 
(ii) an employment service State agency estab-
lished under the Wagner-Peyser Act (29 U.S.C. 49 
et seq.), on behalf of the local office of the agency; 
(iii) a community-based organization, nonprofit 
organization, or intermediary; 
(iv) a private for-profit entity; 
(v) a government agency; and 
(vi) another interested organization or entity, 
which may include a local chamber of commerce or 
other business organization, or a labor organization. 
(3) EXCEPTION.—Elementary schools and secondary schools 
shall not be eligible for designation or certification as one- 
stop operators, except that nontraditional public secondary 
schools and area career and technical education schools may 
be eligible for such designation or certification. 
(4) ADDITIONAL
REQUIREMENTS.—The State and local 
boards shall ensure that in carrying out activities under this 
title, one-stop operators— 
(A) disclose any potential conflicts of interest arising 
from the relationships of the operators with particular 
training service providers or other service providers; 
(B) do not establish practices that create disincentives 
to providing services to individuals with barriers to employ-
ment who may require longer-term services, such as inten-
sive employment, training, and education services; and 
(C) comply with Federal regulations, and procurement 
policies, relating to the calculation and use of profits. 
(e) ESTABLISHMENT OF ONE-STOP DELIVERY SYSTEM.— 
(1) IN GENERAL.—There shall be established in each local 
area in a State that receives an allotment under section 132(b) 
a one-stop delivery system, which shall— 
(A) provide the career services described in section 
134(c)(2); 
(B) provide access to training services as described 
in section 134(c)(3), including serving as the point of access 
to training services for participants in accordance with 
section 134(c)(3)(G); 
(C) provide access to the employment and training 
activities carried out under section 134(d), if any; 
(D) provide access to programs and activities carried 
out by one-stop partners described in subsection (b); and 
(E) provide access to the data, information, and anal-
ysis described in section 15(a) of the Wagner-Peyser Act 
(29 U.S.C. 49l–2(a)) and all job search, placement, recruit-
ment, and other labor exchange services authorized under 
the Wagner-Peyser Act (29 U.S.C. 49 et seq.). 
(2) ONE-STOP DELIVERY.—The one-stop delivery system—
H. R. 803—62 
(A) at a minimum, shall make each of the programs, 
services, and activities described in paragraph (1) accessible 
at not less than 1 physical center in each local area of 
the State; and 
(B) may also make programs, services, and activities 
described in paragraph (1) available— 
(i) through a network of affiliated sites that can 
provide 1 or more of the programs, services, and activi-
ties to individuals; and 
(ii) through a network of eligible one-stop part-
ners— 
(I) in which each partner provides 1 or more 
of the programs, services, and activities to such 
individuals and is accessible at an affiliated site 
that consists of a physical location or an electroni-
cally or technologically linked access point; and 
(II) that assures individuals that information 
on the availability of the career services will be 
available regardless of where the individuals ini-
tially enter the statewide workforce development 
system, including information made available 
through an access point described in subclause 
(I); 
(C) may have specialized centers to address special 
needs, such as the needs of dislocated workers, youth, 
or key industry sectors or clusters; and 
(D) as applicable and practicable, shall make programs, 
services, and activities accessible to individuals through 
electronic means in a manner that improves efficiency, 
coordination, and quality in the delivery of one-stop partner 
services. 
(3) COLOCATION OF WAGNER-PEYSER SERVICES.—Consistent 
with section 3(d) of the Wagner-Peyser Act (29 U.S.C. 49b(d)), 
and in order to improve service delivery, avoid duplication 
of services, and enhance coordination of services, including 
location of staff to ensure access to services in underserved 
areas, the employment service offices in each State shall be 
colocated with one-stop centers established under this title. 
(4) USE OF COMMON ONE-STOP DELIVERY SYSTEM IDENTI-
FIER.—In addition to using any State or locally developed identi-
fier, each one-stop delivery system shall include in the identi-
fication of products, programs, activities, services, facilities, 
and related property and materials, a common one-stop delivery 
system identifier. The identifier shall be developed by the Sec-
retary, in consultation with heads of other appropriate depart-
ments and agencies, and representatives of State boards and 
local boards and of other stakeholders in the one-stop delivery 
system, not later than the beginning of the second full program 
year after the date of enactment of this Act. Such common 
identifier may consist of a logo, phrase, or other identifier 
that informs users of the one-stop delivery system that such 
products, programs, activities, services, facilities, property, or 
materials are being provided through such system. Nothing 
in this paragraph shall be construed to prohibit one-stop part-
ners, States, or local areas from having additional identifiers. 
(f) APPLICATION TO CERTAIN VOCATIONAL REHABILITATION PRO-
GRAMS.—
H. R. 803—63 
(1) LIMITATION.—Nothing in this section shall be construed 
to apply to part C of title I of the Rehabilitation Act of 1973 
(29 U.S.C. 741). 
(2) CLIENT ASSISTANCE.—Nothing in this Act shall be con-
strued to require that any entity carrying out a client assistance 
program authorized under section 112 of the Rehabilitation 
Act of 1973 (29 U.S.C. 732)— 
(A) be included as a mandatory one-stop partner under 
subsection (b)(1); or 
(B) if the entity is included as an additional one-stop 
partner under subsection (b)(2)— 
(i) violate the requirement of section 112(c)(1)(A) 
of that Act (29 U.S.C. 732(c)(1)(A)) that the entity 
be independent of any agency that provides treatment, 
services, or rehabilitation to individuals under that 
Act; or 
(ii) carry out any activity not authorized under 
section 112 of that Act (including appropriate Federal 
regulations). 
(g) CERTIFICATION
AND CONTINUOUS IMPROVEMENT
OF ONE- 
STOP CENTERS.— 
(1) IN GENERAL.—In order to be eligible to receive infra-
structure funding described in subsection (h), the State board, 
in consultation with chief elected officials and local boards, 
shall establish objective criteria and procedures for use by 
local boards in assessing at least once every 3 years the 
effectiveness, physical and programmatic accessibility in accord-
ance with section 188, if applicable, and the Americans with 
Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), and contin-
uous improvement of one-stop centers and the one-stop delivery 
system, consistent with the requirements of section 101(d)(6). 
(2) CRITERIA.—The criteria and procedures developed under 
this subsection shall include standards relating to 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. Such criteria and procedures shall— 
(A) be developed in a manner that is consistent with 
the guidelines, guidance, and policies provided by the Gov-
ernor and by the State board, in consultation with the 
chief elected officials and local boards, for such partners’ 
participation under subsections (h)(1) and (i); and 
(B) include such factors relating to the effectiveness, 
accessibility, and improvement of the one-stop delivery 
system as the State board determines to be appropriate, 
including at a minimum how well the one-stop center— 
(i) supports the achievement of the negotiated local 
levels of performance for the indicators of performance 
described in section 116(b)(2) for the local area; 
(ii) integrates available services; and 
(iii) meets the workforce development and employ-
ment needs of local employers and participants. 
(3) LOCAL CRITERIA.—Consistent with the criteria developed 
under paragraph (1) by the State, a local board in the State 
may develop additional criteria (or higher levels of service 
coordination than required for the State-developed criteria) 
relating to service coordination achieved by the one-stop
H. R. 803—64 
delivery system, for purposes of assessments described in para-
graph (1), in order to respond to labor market, economic, and 
demographic, conditions and trends in the local area. 
(4) EFFECT OF CERTIFICATION.—One-stop centers certified 
under this subsection shall be eligible to receive the infrastruc-
ture funding described in subsection (h). 
(5) REVIEW
AND
UPDATE.—The criteria and procedures 
established under this subsection shall be reviewed and updated 
by the State board or the local board, as the case may be, 
as part of the biennial process for review and modification 
of State and local plans described in sections 102(c)(2) and 
108(a). 
(h) FUNDING OF ONE-STOP INFRASTRUCTURE.— 
(1) IN GENERAL.— 
(A) OPTIONS FOR INFRASTRUCTURE FUNDING.— 
(i) LOCAL OPTIONS.—The local board, chief elected 
officials, and one-stop partners described in subsection 
(b)(1) in a local area may fund the costs of infrastruc-
ture of one-stop centers in the local area through— 
(I) methods agreed on by the local board, chief 
elected officials, and one-stop partners (and 
described in the memorandum of understanding 
described in subsection (c)); or 
(II) if no consensus agreement on methods 
is reached under subclause (I), the State infra-
structure funding mechanism described in para-
graph (2). 
(ii) FAILURE TO REACH CONSENSUS AGREEMENT ON 
FUNDING
METHODS.—Beginning July 1, 2016, if the 
local board, chief elected officials, and one-stop part-
ners described in subsection (b)(1) in a local area fail 
to reach consensus agreement on methods of suffi-
ciently funding the costs of infrastructure of one-stop 
centers for a program year, the State infrastructure 
funding mechanism described in paragraph (2) shall 
be applicable to such local area for that program year 
and for each subsequent program year for which those 
entities and individuals fail to reach such agreement. 
(B) GUIDANCE
FOR
INFRASTRUCTURE
FUNDING.—In 
addition to carrying out the requirements relating to the 
State infrastructure funding mechanism described in para-
graph (2), the Governor, after consultation with chief 
elected officials, local boards, and the State board, and 
consistent with the guidance and policies provided by the 
State board under subparagraphs (B) and (C)(i) of section 
101(d)(7), shall provide, for the use of local areas under 
subparagraph (A)(i)(I)— 
(i) guidelines for State-administered one-stop 
partner programs, for determining such programs’ con-
tributions to a one-stop delivery system, based on such 
programs’ proportionate use of such system consistent 
with chapter II of title 2, Code of Federal Regulations 
(or any corresponding similar regulation or ruling), 
including determining funding for the costs of infra-
structure, which contributions shall be negotiated 
pursuant to the memorandum of understanding under 
subsection (c); and
H. R. 803—65 
(ii) guidance to assist local boards, chief elected 
officials, and one-stop partners in local areas in deter-
mining equitable and stable methods of funding the 
costs of infrastructure of one-stop centers in such areas. 
(2) STATE ONE-STOP INFRASTRUCTURE FUNDING.— 
(A) DEFINITION.—In this paragraph, the term ‘‘covered 
portion’’, used with respect to funding for a fiscal year 
for a program described in subsection (b)(1), means a por-
tion determined under subparagraph (C) of the Federal 
funds provided to a State (including local areas within 
the State) under the Federal law authorizing that program 
described in subsection (b)(1) for the fiscal year (taking 
into account the availability of funding for purposes related 
to infrastructure from philanthropic organizations, private 
entities, or other alternative financing options). 
(B) PARTNER
CONTRIBUTIONS.—Subject to subpara-
graph (D), for local areas in a State that are not covered 
by paragraph (1)(A)(i)(I), the covered portions of funding 
for a fiscal year shall be provided to the Governor from 
the programs described in subsection (b)(1), to assist in 
paying the costs of infrastructure of one-stop centers in 
those local areas of the State not adequately funded under 
the option described in paragraph (1)(A)(i)(I). 
(C) DETERMINATION OF GOVERNOR.— 
(i) IN GENERAL.—Subject to clause (ii) and subpara-
graph (D), the Governor, after consultation with chief 
elected officials, local boards, and the State board, 
shall determine the portion of funds to be provided 
under subparagraph (B) by each one-stop partner from 
each program described in subparagraph (B). In 
making such determination for the purpose of deter-
mining funding contributions, for funding pursuant to 
clause (i)(II) or (ii) of paragraph (1)(A) by each partner, 
the Governor shall calculate amounts for the propor-
tionate use of the one-stop centers in the State, con-
sistent with chapter II of title 2, Code of Federal Regu-
lations (or any corresponding similar regulation or 
ruling), taking into account the costs of administration 
of the one-stop delivery system for purposes not related 
to one-stop centers, for each partner. The Governor 
shall exclude from such determination of funds the 
amounts for proportionate use of one-stop centers 
attributable to the programs of one-stop partners for 
those local areas of the State where the costs of infra-
structure of one-stop centers are funded under the 
option described in paragraph (1)(A)(i)(I). The Governor 
shall also take into account the statutory requirements 
for each partner program and the partner program’s 
ability to fulfill such requirements. 
(ii) SPECIAL RULE.—In a State in which the State 
constitution or a State statute places policymaking 
authority that is independent of the authority of the 
Governor in an entity or official with respect to the 
funds provided for adult education and literacy activi-
ties authorized under title II, postsecondary career and 
technical education activities authorized under the 
Carl D. Perkins Career and Technical Education Act
H. R. 803—66 
of 2006 (20 U.S.C. 2301 et seq.), or vocational 
rehabilitation services offered under a provision cov-
ered by section 3(13)(D), the determination described 
in clause (i) with respect to the programs authorized 
under that title, Act, or provision shall be made by 
the chief officer of the entity, or the official, with such 
authority in consultation with the Governor. 
(D) LIMITATIONS.— 
(i) PROVISION FROM ADMINISTRATIVE FUNDS.— 
(I) IN GENERAL.—Subject to subclause (II), the 
funds provided under this paragraph by each one- 
stop partner shall be provided only from funds 
available for the costs of administration under the 
program administered by such partner, and shall 
be subject to the program’s limitations with respect 
to the portion of funds under such program that 
may be used for administration. 
(II) EXCEPTIONS.—Nothing in this clause shall 
be construed to apply to the programs carried out 
under this title, or under title V of the Older 
Americans Act of 1965 (42 U.S.C. 3056 et seq.). 
(ii) CAP ON REQUIRED CONTRIBUTIONS.—For local 
areas in a State that are not covered by paragraph 
(1)(A)(i)(I), the following rules shall apply: 
(I) WIA FORMULA PROGRAMS AND EMPLOYMENT 
SERVICE.—The portion of funds required to be 
contributed under this paragraph from a program 
authorized under chapter 2 or 3, or the Wagner- 
Peyser Act (29 U.S.C. 49 et seq.) shall not exceed 
3 percent of the amount of Federal funds provided 
to carry out that program in the State for a fiscal 
year. 
(II) OTHER ONE-STOP PARTNERS.—The portion 
of funds required to be contributed under this 
paragraph from a program described in subsection 
(b)(1) other than the programs described in sub-
clause (I) shall not exceed 1.5 percent of the 
amount of Federal funds provided to carry out 
that program in the State for a fiscal year. 
(III) VOCATIONAL
REHABILITATION.—Notwith-
standing subclauses (I) and (II), an entity admin-
istering 
a 
program 
described 
in 
subsection 
(b)(1)(B)(iv) shall not be required to provide from 
that program, under this paragraph, a portion that 
exceeds— 
(aa) 0.75 percent of the amount of Federal 
funds provided to carry out such program in 
the State for the second full program year 
that begins after the date of enactment of 
this Act; 
(bb) 1.0 percent of the amount provided 
to carry out such program in the State for 
the third full program year that begins after 
such date; 
(cc) 1.25 percent of the amount provided 
to carry out such program in the State for
H. R. 803—67 
the fourth full program year that begins after 
such date; and 
(dd) 1.5 percent of the amount provided 
to carry out such program in the State for 
the fifth and each succeeding full program 
year that begins after such date. 
(iii) FEDERAL
DIRECT
SPENDING
PROGRAMS.—For 
local areas in a State that are not covered by paragraph 
(1)(A)(i)(I), an entity administering a program funded 
with direct spending as defined in section 250(c)(8) 
of the Balanced Budget and Emergency Deficit Control 
Act of 1985, as in effect on February 15, 2014 (2 
U.S.C. 900(c)(8)) shall not be required to provide, for 
purposes of this paragraph, an amount in excess of 
the amount determined under subparagraph (C)(i) to 
be equivalent to the cost of the proportionate use of 
the one-stop centers for the one-stop partner for such 
program in the State. 
(iv) NATIVE AMERICAN PROGRAMS.—One-stop part-
ners for Native American programs established under 
section 166 shall not be subject to the provisions of 
this subsection (other than this clause) or subsection 
(i). For purposes of subsection (c)(2)(A)(ii)(II), the 
method for determining the appropriate portion of 
funds to be provided by such partners to pay for the 
costs of infrastructure of a one-stop center shall be 
determined as part of the development of the memo-
randum of understanding under subsection (c) for the 
one-stop center and shall be stated in the memo-
randum. 
(E) APPEAL
BY
ONE-STOP
PARTNERS.—The Governor 
shall 
establish 
a 
process, 
described 
under 
section 
102(b)(2)(D)(i)(IV), for a one-stop partner administering a 
program described in subsection (b)(1) to appeal a deter-
mination regarding the portion of funds to be provided 
under this paragraph. Such a determination may be 
appealed under the process on the basis that such deter-
mination is inconsistent with the requirements of this para-
graph. Such process shall ensure prompt resolution of the 
appeal in order to ensure the funds are distributed in 
a timely manner, consistent with the requirements of sec-
tion 182(e). 
(3) ALLOCATION BY GOVERNOR.— 
(A) IN GENERAL.—From the funds provided under para-
graph (1), the Governor shall allocate the funds to local 
areas described in subparagraph (B) in accordance with 
the formula established under subparagraph (B) for the 
purposes of assisting in paying the costs of infrastructure 
of one-stop centers. 
(B) ALLOCATION
FORMULA.—The State board shall 
develop a formula to be used by the Governor to allocate 
the funds provided under paragraph (1) to local areas not 
funding costs of infrastructure under the option described 
in paragraph (1)(A)(i)(I). The formula shall be based on 
factors including the number of one-stop centers in a local 
area, the population served by such centers, the services 
provided by such centers, and other factors relating to
H. R. 803—68 
the performance of such centers that the State board deter-
mines are appropriate. 
(4) COSTS
OF
INFRASTRUCTURE.—In this subsection, the 
term ‘‘costs of infrastructure’’, used with respect to a one- 
stop center, means the nonpersonnel costs that are necessary 
for the general operation of the one-stop center, including the 
rental costs of the facilities, the costs of utilities and mainte-
nance, equipment (including assessment-related products and 
assistive technology for individuals with disabilities), and tech-
nology to facilitate access to the one-stop center, including 
the center’s planning and outreach activities. 
(i) OTHER FUNDS.— 
(1) IN GENERAL.—Subject to the memorandum of under-
standing described in subsection (c) for the one-stop delivery 
system involved, in addition to the funds provided to carry 
out subsection (h), a portion of funds made available under 
Federal law authorizing the programs described in subsection 
(b) and administered by one-stop partners, or the noncash 
resources available under such programs, shall be used to pay 
the additional costs relating to the operation of the one-stop 
delivery system that are not paid from the funds provided 
under subsection (h), as determined in accordance with para-
graph (3), to the extent not inconsistent with the Federal law 
involved. Such costs shall include the costs of the provision 
of career services described in section 134(c)(2) applicable to 
each program and may include common costs that are not 
paid from the funds provided under subsection (h). 
(2) SHARED
SERVICES.—The costs described under para-
graph (1) may include costs of services that are authorized 
for and may be commonly provided through the one-stop 
partner programs to any individual, such as initial intake, 
assessment of needs, appraisal of basic skills, identification 
of appropriate services to meet such needs, referrals to other 
one-stop partners, and other similar services. 
(3) DETERMINATION AND GUIDANCE.—The method for deter-
mining the appropriate portion of funds and noncash resources 
to be provided by the one-stop partner for each program under 
paragraph (1) for a one-stop center shall be determined as 
part of the development of the memorandum of understanding 
under subsection (c) for the one-stop center and shall be stated 
in the memorandum. The State board shall provide guidance 
to facilitate the determination, for purposes of the memorandum 
of understanding, of an appropriate allocation of the funds 
and noncash resources in local areas, consistent with the 
requirements of section 101(d)(6)(C). 
SEC. 122. IDENTIFICATION OF ELIGIBLE PROVIDERS OF TRAINING 
SERVICES. 
(a) ELIGIBILITY.— 
(1) IN
GENERAL.—Except as provided in subsection (h), 
the Governor, after consultation with the State board, shall 
establish criteria, information requirements, and procedures 
regarding the eligibility of providers of training services to 
receive funds provided under section 133(b) for the provision 
of training services in local areas in the State.
H. R. 803—69 
(2) PROVIDERS.—Subject to the provisions of this section, 
to be eligible to receive those funds for the provision of training 
services, the provider shall be— 
(A) an institution of higher education that provides 
a program that leads to a recognized postsecondary creden-
tial; 
(B) an entity that carries out programs registered 
under the Act of August 16, 1937 (commonly known as 
the ‘‘National Apprenticeship Act’’; 50 Stat. 664, chapter 
663; 29 U.S.C. 50 et seq.); or 
(C) another public or private provider of a program 
of training services, which may include joint labor-manage-
ment organizations, and eligible providers of adult edu-
cation and literacy activities under title II if such activities 
are provided in combination with occupational skills 
training. 
(3) INCLUSION IN LIST OF ELIGIBLE PROVIDERS.—A provider 
described in subparagraph (A) or (C) of paragraph (2) shall 
comply with the criteria, information requirements, and proce-
dures established under this section to be included on the 
list of eligible providers of training services described in sub-
section (d). A provider described in paragraph (2)(B) shall be 
included and maintained on the list of eligible providers of 
training services described in subsection (d) for so long as 
the corresponding program of the provider remains registered 
as described in paragraph (2)(B). 
(b) CRITERIA AND INFORMATION REQUIREMENTS.— 
(1) STATE CRITERIA.—In establishing criteria pursuant to 
subsection (a), the Governor shall take into account each of 
the following: 
(A) The performance of providers of training services 
with respect to— 
(i) the performance accountability measures and 
other matters for which information is required under 
paragraph (2); and 
(ii) other appropriate measures of performance out-
comes determined by the Governor for those partici-
pants receiving training services under this subtitle 
(taking into consideration the characteristics of the 
population served and relevant economic conditions), 
and the outcomes of the program through which those 
training services were provided for students in general 
with respect to employment and earnings as defined 
under section 116(b)(2). 
(B) The need to ensure access to training services 
throughout the State, including in rural areas, and through 
the use of technology. 
(C) Information reported to State agencies with respect 
to Federal and State programs involving training services 
(other than the program carried out under this subtitle), 
including one-stop partner programs. 
(D) The degree to which the training programs of such 
providers relate to in-demand industry sectors and occupa-
tions in the State. 
(E) The requirements for State licensing of providers 
of training services, and the licensing status of providers 
of training services if applicable.
H. R. 803—70 
(F) Ways in which the criteria can encourage, to the 
extent practicable, the providers to use industry-recognized 
certificates or certifications. 
(G) The ability of the providers to offer programs that 
lead to recognized postsecondary credentials. 
(H) The quality of a program of training services, 
including a program of training services that leads to a 
recognized postsecondary credential. 
(I) The ability of the providers to provide training 
services to individuals who are employed and individuals 
with barriers to employment. 
(J) Such other factors as the Governor determines are 
appropriate to ensure— 
(i) the accountability of the providers; 
(ii) that the one-stop centers in the State will 
ensure that such providers meet the needs of local 
employers and participants; 
(iii) the informed choice of participants among 
training services providers; and 
(iv) that the collection of information required to 
demonstrate compliance with the criteria is not unduly 
burdensome or costly to providers. 
(2) STATE INFORMATION REQUIREMENTS.—The information 
requirements established by the Governor shall require that 
a provider of training services submit appropriate, accurate, 
and timely information to the State, to enable the State to 
carry out subsection (d), with respect to participants receiving 
training services under this subtitle in the applicable program, 
including— 
(A) information on the performance of the provider 
with respect to the performance accountability measures 
described in section 116 for such participants (taking into 
consideration the characteristics of the population served 
and relevant economic conditions), and information speci-
fying the percentage of such participants who entered 
unsubsidized employment in an occupation related to the 
program, to the extent practicable; 
(B) information on recognized postsecondary creden-
tials received by such participants; 
(C) information on cost of attendance, including costs 
of tuition and fees, for participants in the program; 
(D) information on the program completion rate for 
such participants; and 
(E) information on the criteria described in paragraph 
(1). 
(3) LOCAL
CRITERIA
AND
INFORMATION
REQUIREMENTS.— 
A local board in the State may establish criteria and informa-
tion requirements in addition to the criteria and information 
requirements established by the Governor, or may require 
higher levels of performance than required for the criteria 
established by the Governor, for purposes of determining the 
eligibility of providers of training services to receive funds 
described in subsection (a) for the provision of training services 
in the local area involved. 
(4) CRITERIA AND INFORMATION REQUIREMENTS TO ESTAB-
LISH INITIAL ELIGIBILITY.—