(4) in paragraph (5), by striking ‘‘sections
128(b)(3)(B) and 133(b)(3)(B)’’ and inserting ‘‘sec-
tions 128(b)(3) and 133(b)(3)’’; and
(5) in paragraph (9), by striking ‘‘section 503’’
and inserting ‘‘section 136(i)’’.
(c) ELIMINATION
OF ALTERNATIVE ENTITY
AND
PROVISION
OF AUTHORITY
TO HIRE STAFF.—Section
111(e) (29 U.S.C. 2821(e)) is amended to read as follows:
‘‘(e) AUTHORITY TO HIRE STAFF.—The State board
may hire staff to assist in carrying out the functions de-
scribed in subsection (d).’’.
SEC. 104. STATE PLAN.
(a) PLANNING CYCLE.—Section 112(a) (29 U.S.C.
2822(a)) is amended by striking ‘‘5-year strategy’’ and in-
serting ‘‘2-year strategy’’.
(b) CONTENTS.—Section 112(b) (29 U.S.C. 2822(b))
is amended—
(1) in paragraph (12)(A), by striking ‘‘sections
128(b)(3)(B) and 133(b)(3)(B)’’ and inserting ‘‘sec-
tions 128(b)(3) and 133(b)(3)’’;
(2) in paragraph (14), by striking ‘‘section
134(c)’’ and inserting ‘‘section 121(e)’’;
(3) in paragraph (17)(A)—
(A) in clause (iii) by striking ‘‘and’’;
(B) by amending clause (iv) to read as fol-
lows:
‘‘(iv) how the State will serve the em-
ployment and training needs of dislocated
workers (including displaced homemakers
and 
formerly 
self-employed 
and
transitioning farmers, ranchers, and fisher-
man) low income individuals (including re-
cipients of public assistance), individuals
with limited English proficiency, homeless
individuals, ex-offenders, individuals train-
ing for nontraditional employment, and
other individuals with multiple barriers to
employment (including older individuals);
and’’; and
(C) by inserting after clause (iv) the fol-
lowing:
‘‘(v) how the State will serve the em-
ployment and training needs of individuals
with disabilities, consistent with section
188 and Executive Order 13217 (42
U.S.C. 12131 note; relating to community-
based alternatives for individuals with dis-
abilities) including the provision of out-
reach, intake, assessments, and service de-
livery, the development of performance
measures, the training of staff, and other
aspects of accessibility to program services,
consistent with sections 504 and 508 of
the Rehabilitation Act of 1973; and’’;
(4) in paragraph (18)(D), by striking ‘‘youth
opportunity grants’’ and inserting ‘‘youth challenge
grants’’; and
(5) by adding at the end the following new
paragraphs:
‘‘(19) a description of the methodology for de-
termining one-stop partner program contributions
for the cost of the infrastructure of one-stop centers
under section 121(h)(1) and of the formula for allo-
cating such infrastructure funds to local areas under
section 121(h)(3); and
‘‘(20) a description of any programs and strate-
gies the State will utilize to meet the needs of busi-
nesses in the State, including small businesses,
which may include providing incentives and technical
assistance to assist local areas in engaging employ-
ers in local workforce development activities.’’.
(c) MODIFICATION TO PLAN.—Section 112(d) (29
U.S.C. 2822(d)) is amended by striking ‘‘5-year period’’
and inserting ‘‘2-year period’’.
SEC. 105. LOCAL WORKFORCE INVESTMENT AREAS.
(a) DESIGNATION OF AREAS.—
(1) CONSIDERATIONS.—Section 116(a)(1)(B)
(29 U.S.C. 2831(a)(1)(B)) is amended by adding at
the end the following clause:
‘‘(vi) The extent to which such local
areas will promote efficiency in the admin-
istration and provision of services.’’.
(2) 
AUTOMATIC
DESIGNATION.—Section
116(a)(2) (29 U.S.C. 2831(a)(2)) is amended to
read as follows:
‘‘(2) AUTOMATIC DESIGNATION.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B) of this paragraph and sub-
section (b), the Governor shall approve a re-
quest for designation as a local area from—
‘‘(i) any unit of general local govern-
ment with a population of 500,000 or
more; and
‘‘(ii) an area served by a rural con-
centrated employment program grant re-
cipient that served as a service delivery
area or substate area under the Job Train-
ing Partnership Act (29 U.S.C. 1501 et
seq.),
for the 2-year period covered by a State plan
under section 112 if such request is made not
later than the date of the submission of the
State plan.
‘‘(B) CONTINUED DESIGNATION BASED ON
PERFORMANCE.—The Governor may deny a re-
quest for designation submitted pursuant to
subparagraph (A) if such unit of government
was designated as a local area for the preceding
2-year period covered by a State plan and the
Governor determines that such local area did
not perform successfully during such period.’’.
(b) REGIONAL PLANNING.—Section 116(c)(1) (29
U.S.C. 2831(c)(1)) is amended by adding at the end the
following: ‘‘The State may require the local boards for the
designated region to prepare a single regional plan that
incorporates the elements of the local plan under section
118 and that is submitted and approved in lieu of separate
local plans under such section.’’.
SEC. 106. LOCAL WORKFORCE INVESTMENT BOARDS.
(a) COMPOSITION.—Section 117(b)(2)(A) (29 U.S.C.
2832(b)(2)(A)) is amended—
(1) in clause (i)(II), by inserting ‘‘, businesses
that are in the leading industries in the local area,
and large and small businesses in the local area’’
after ‘‘local area’’;
(2) by amending clause (ii) to read as follows:
‘‘(ii) a superintendent of the local sec-
ondary school system, an administrator of
an entity providing adult education and lit-
eracy activities that is not a one-stop part-
ner designated under section 121(b)(1)(B),
and the president or chief executive officer
of a postsecondary educational institution
serving the local area (including commu-
nity colleges, where such entities exist);’’;
(3) in clause (iv), by striking the semicolon and
inserting ‘‘and faith-based organizations; and’’; and
(4) by striking clause (vi).
(b) AUTHORITY
OF
BOARD
MEMBERS.—Section
117(b)(3) (29 U.S.C. 2832(b) is amended—
(1) in the heading, by inserting ‘‘AND
REP-
RESENTATION’’ after ‘‘MEMBERS’’; and
(2) by adding at the end the following: ‘‘The
members of the board shall represent diverse geo-
graphic sections within the local area.’’.
(c) 
FUNCTIONS.—Section 
117(d) 
(29 
U.S.C.
2832(d)) is amended—
(1) in paragraph (2)(B), by striking ‘‘by award-
ing grants’’ and all that follows through ‘‘youth
council’’; and
(2) in paragraph (4) by inserting ‘‘, and ensure
the appropriate use and management of the funds
provided under this title for such programs, activi-
ties, and system’’ after ‘‘area’’.
(d) AUTHORITY
TO
ESTABLISH
COUNCILS
AND
ELIMINATION
OF REQUIREMENT
FOR YOUTH COUN-
CILS.—Section 117(h) (29 U.S.C. 2832(h)) is amended to
read as follows:
‘‘(h) ESTABLISHMENT
OF COUNCILS.—The local
board may establish councils to provide information and
advice to assist the local board in carrying out activities
under this title. Such councils may include a council com-
posed of one-stop partners to advise the local board on
the operation of the one-stop delivery system, a youth
council composed of experts and stakeholders in youth
programs to advise the local board on activities for youth,
and such other councils as the local board determines are
appropriate.’’.
(e) REPEAL OF ALTERNATIVE ENTITY PROVISION.—
Section 117 (29 U.S.C. 2832) is further amended by strik-
ing subsection (i).
SEC. 107. LOCAL PLAN.
(a) PLANNING CYCLE.—Section 118(a) (29 U.S.C.
2833(a)) is amended by striking ‘‘5-year’’ and inserting
‘‘2-year’’.
(b) CONTENTS.—Section 118(b) (29 U.S.C. 2833(b))
is amended—
(1) by amending paragraph (2) to read as fol-
lows:
‘‘(2) a description of the one-stop delivery sys-
tem to be established or designated in the local area,
including a description of how the local board will
ensure the continuous improvement of eligible pro-
viders of services through the system and ensure
that such providers meet the employment needs of
local employers and participants;’’;
(2) in paragraph (4), by striking ‘‘and dis-
located worker’’;
(3) in paragraph (9), by striking ‘‘; and’’ and
inserting a semicolon; and
(4) by redesignating paragraph (10) as para-
graph (12) and inserting after paragraph (9) the fol-
lowing:
‘‘(10) a description of the strategies and serv-
ices that will be initiated in the local area to engage
employers, including small employers, in workforce
development activities;
‘‘(11) how the local area will serve the employ-
ment and training needs of individuals with disabil-
ities, consistent with section 188 and Executive
Order 13217 (42 U.S.C. 12131 note) including the
provision of outreach, intake, assessments, and serv-
ice delivery, the development of performance meas-
ures, the training of staff, and other aspects of ac-
cessibility to program services, consistent with sec-
tions 504 and 508 of the Rehabilitation Act of 1973;
and’’.
SEC. 108. ESTABLISHMENT OF ONE-STOP DELIVERY SYS-
TEMS.
(a) ONE-STOP PARTNERS.—
(1) REQUIRED PARTNERS.—Section 121(b)(1)
(29 U.S.C. 2841(b)(1)) is amended—
(A) in subparagraph (B)—
(i) by striking clauses (ii) and (v);
(ii) by redesignating clauses (iii) and
(iv) as clauses (ii) and (iii), respectively,
and by redesignating clauses (vi) through
(xii) as clauses (iv) through (x), respec-
tively;
(iii) in clause (ix) (as so redesig-
nated), by striking ‘‘and’’ at the end;
(iv) in clause (x) (as so redesignated),
by striking the period and inserting ‘‘;
and’’; and
(v) by inserting after clause (x)(as so
redesignated) the following:
‘‘(xi) programs authorized under part
A of title IV of the Social Security Act (42
U.S.C. 601 et. seq.), subject to subpara-
graph (C).’’; and
(B) by adding after subparagraph (B) the
following:
‘‘(C) 
DETERMINATION
BY
THE
GOV-
ERNOR.—The program referred to in clause (xi)
of subparagraph (B) shall be included as a re-
quired partner for purposes of this title in a
State unless the Governor of the State notifies
the Secretary and the Secretary of Health and
Human Services in writing of a determination
by the Governor not to include such programs
as required partners for purposes of this title in
the State.’’.
(2) 
ADDITIONAL
PARTNERS.—Section
121(b)(2)(B) 
(29 
U.S.C. 
2841(b)(2)(B)) 
is
amended—
(A) by striking clause (i) and redesignating
clauses (ii) through (v) as clauses (i) through
(iv) respectively;
(B) in clause (iii) (as so redesignated) by
striking ‘‘and’’ at the end;
(C) in clause (iv) (as so redesignated) by
striking the period and inserting a semicolon;
and
(D) by adding at the end the following new
clauses:
‘‘(v) employment and training pro-
grams administered by the Social Security
Administration, including the Ticket to
Work program (established by Public Law
106–170);
‘‘(vi) employment and training pro-
grams carried out by the Small Business
Administration;
‘‘(vii) programs under part D of title
IV of the Social Security Act (42 U.S.C.
451 et seq.) (relating to child support en-
forcement);
‘‘(viii) employment, training, and lit-
eracy services carried out by public librar-
ies; and
‘‘(ix) programs carried out in the local
area for individuals with disabilities, in-
cluding programs carried out by State
agencies relating to mental health, mental
retardation, and developmental disabilities,
State Medicaid agencies, State Inde-
pendent Living Councils, and Independent
Living Centers.’’.
(b) PROVISION OF SERVICES.—Subtitle B of title I
is amended—
(1) in section 121(d)(2), by striking ‘‘section
134(c)’’ and inserting ‘‘subsection (e)’’;
(2) by striking subsection (e) of section 121;
(3) by moving subsection (c) of section 134
from section 134, redesignating such subsection as
subsection (e), and inserting such subsection (as so
redesignated) after subsection (d) of section 121;
and
(4) by amending subsection (e) of section 121
(as moved and redesignated by paragraph (2))—
(A) in paragraph (1)(A), by striking ‘‘sub-
section 
(d)(2)’’ 
and 
inserting 
‘‘section
134(c)(2)’’;
(B) in paragraph (1)(B)—