CHAPTER 2—LOCAL PROVISIONS 
SEC. 115. WORKFORCE DEVELOPMENT AREAS. 
(a) REGIONS.—Section 106(a) of the Workforce In-
novation and Opportunity Act (29 U.S.C. 3121(a)) is 
amended by adding at the end the following: 
‘‘(3) REVIEW.—Before the second full program 
year after the date of enactment of the A Stronger 
Workforce for America 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— 
‘‘(A) review each region in the State iden-
tified under this subsection (as such subsection 
was in effect on the day before the date of en-
actment of the A Stronger Workforce for Amer-
ica Act); and 
‘‘(B) after consultation with the local 
boards and chief elected officials in the local 
areas and consistent with the considerations de-
scribed in subsection (b)(1)(B)— 
‘‘(i) revise such region and any other 
region impacted by such revision; or 
‘‘(ii) make a determination to main-
tain such region with no revision.’’. 
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(b) LOCAL AREAS.—Section 106(b) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3121(b)) is 
amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A), by striking ‘‘sub-
section (d), and consistent with paragraphs (2) 
and (3),’’ and inserting ‘‘subsection (d)’’; and 
(B) in subparagraph (B), by striking ‘‘(ex-
cept for those local areas described in para-
graphs (2) and (3))’’; and 
(2) by striking paragraphs (2) through (7), and 
inserting the following: 
‘‘(2) CONTINUATION PERIOD.—Except as pro-
vided in paragraph (5) of this subsection and sub-
section (d), in order to receive an allotment under 
section 127(b) or 132(b), the Governor shall main-
tain the designations of local areas in the State 
under this subsection (as in effect on the day before 
the date of enactment of the A Stronger Workforce 
for America Act) until the end of the third full pro-
gram year after the date of enactment of the A 
Stronger Workforce for America Act. 
‘‘(3) INITIAL ALIGNMENT REVIEW.— 
‘‘(A) IN GENERAL.—Prior to the third full 
program year after the date of enactment of the 
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A Stronger Workforce for America Act, the 
Governor shall— 
‘‘(i) review the designations of local 
areas in the State (as in effect on the day 
before the date of enactment of the A 
Stronger Workforce for America Act); and 
‘‘(ii)(I) based on the considerations 
described in paragraph (1)(B), issue pro-
posed redesignations of local areas in the 
State through the process described in 
paragraph (1)(A), which shall— 
‘‘(aa) include an explanation 
of the strategic goals and objec-
tives that the State intends to 
achieve through such redesigna-
tions; and 
‘‘(bb) be subject to the ap-
proval of the chief elected offi-
cials of the local areas in the 
State in accordance with the 
process described in subpara-
graph (C); or 
‘‘(II) with respect to a State de-
scribed in subsection (d)(2)(B), if the 
Governor determines that such State 
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should be designated as a single State 
local area, conduct a process in ac-
cordance with the requirements of 
subsection (d)(2). 
‘‘(B) DESIGNATION OF LOCAL AREAS.—A 
redesignation of local areas in a State that is 
approved by a majority of the chief elected offi-
cials of the local areas in the State through the 
process described in subparagraph (C) shall 
take effect on the first day of the 4th full pro-
gram year after the date of enactment of the A 
Stronger Workforce for America Act. 
‘‘(C) PROCESS TO REACH MAJORITY AP-
PROVAL.—To approve a designation of local 
areas in the State, the chief elected officials of 
the local areas in the State shall comply with 
the following: 
‘‘(i) INITIAL
VOTE.—Not later than 
60 days after the Governor issues proposed 
redesignations under subparagraph (A), 
the chief elected official of each local area 
shall review the proposed redesignations 
and submit a vote to the Governor either 
approving or rejecting the proposed redes-
ignations. 
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‘‘(ii) RESULTS OF INITIAL VOTE.—If 
a majority of the chief elected officials of 
the local areas in the State vote under 
clause (i)— 
‘‘(I) to approve such proposed re-
designations, such redesignations shall 
take effect in accordance with sub-
paragraph (B); or 
‘‘(II) to disapprove such proposed 
redesignations, the chief elected offi-
cials of the local areas in the State 
shall comply with the requirements of 
clause (iii). 
‘‘(iii) 
ALTERNATE
REDESIGNA-
TIONS.—In the case of the disapproval de-
scribed in clause (ii)(II), not later than 
120 days after the Governor issues pro-
posed redesignations under subparagraph 
(A), the chief elected officials of the local 
areas in the State shall— 
‘‘(I) select 2 alternate redesigna-
tions of local areas— 
‘‘(aa) one of which aligns 
with the regional economic devel-
opment areas in the State; and 
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‘‘(bb) one of which aligns 
with the regions described in sub-
paragraph (A) or (B) of sub-
section (a)(2); and 
‘‘(II) conduct a vote to approve, 
by majority vote, 1 of the 2 alternate 
redesignations described in subclause 
(I). 
‘‘(iv) EFFECTIVE
DATE
OF
ALTER-
NATE
DESIGNATIONS.—The alternate re-
designations approved pursuant to clause 
(iii)(II) shall take effect in accordance with 
subparagraph (B). 
‘‘(4) SUBSEQUENT ALIGNMENT REVIEWS.—On 
the date that is the first day of the 12th full pro-
gram year after the date of enactment of the A 
Stronger Workforce for America Act, and every 8 
years thereafter, the Governor shall— 
‘‘(A) review the designation of local areas; 
and 
‘‘(B) carry out the requirements of para-
graph (3)(A)(ii), except that any redesignation 
of local areas in a State that is approved by a 
majority of the chief elected officials of the local 
areas in the State through the process de-
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scribed in paragraph (3)(C) shall take effect on 
the first day of the next full program year after 
the Governor’s review pursuant to this para-
graph. 
‘‘(5) INTERIM REVISIONS.— 
‘‘(A) APPROVAL OF CERTAIN REDESIGNA-
TION REQUESTS.— 
‘‘(i) IN GENERAL.—At any time, and 
notwithstanding the requirements of para-
graphs (2), (3), and (4), the Governor, 
upon receipt of a request for a redesigna-
tion of a local area described in clause (ii), 
may approve such request. 
‘‘(ii) REQUESTS.—The following re-
quests may be approved pursuant to clause 
(i) upon request: 
‘‘(I) A request from multiple 
local areas to be redesignated as a 
single local area. 
‘‘(II) A request from multiple 
local areas for a revision to the des-
ignations of such local areas, which 
would not impact the designations of 
local areas that have not made such 
request. 
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‘‘(III) A request for designation 
as a local area from an area described 
in section 107(c)(1)(C). 
‘‘(B) 
OTHER
REDESIGNATIONS.—Other 
than the redesignations described in subpara-
graph (A), the Governor may only redesignate 
a local area outside of the process described in 
paragraphs (3) and (4), if the local area that 
will be subject to such redesignation has not— 
‘‘(i) performed successfully; 
‘‘(ii) sustained fiscal integrity; or 
‘‘(iii) in the case of a local area in any 
planning region described in subparagraph 
(B) or (C) of subsection (a)(2), met the re-
quirements described in subsection (c)(1). 
‘‘(C) EFFECTIVE
DATE.—Any redesigna-
tion of a local area approved by the Governor 
under subparagraph (A) or (B) shall take effect 
on the first date of the first full program year 
after such date of approval. 
‘‘(6) APPEALS.— 
‘‘(A) IN GENERAL.—The local board of a 
local area that is subject to a redesignation of 
such local area under paragraph (3), (4), or (5) 
may submit an appeal to maintain its existing 
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designation to the State board under an appeal 
process established in the State plan as speci-
fied in section 102(b)(2)(D)(i)(III). 
‘‘(B) STATE BOARD REQUIREMENTS.—The 
State board shall grant an appeal to maintain 
an existing designation of a local area described 
in subparagraph (A) only if the local board of 
the local area can demonstrate that the process 
for redesignation of such local area under para-
graph (3), (4), or (5), as applicable, has not 
been followed. 
‘‘(C) SECRETARIAL REQUIREMENTS.—If a 
request to maintain an existing designation as 
a local area is not granted as a result of such 
appeal, the Secretary, after receiving a request 
for review from the local board of such local 
area and determining that the local board was 
not accorded procedural rights under the ap-
peals process referred to in subparagraph (A), 
shall— 
‘‘(i) review the process for the redesig-
nation of the local area under paragraph 
(3), (4), or (5), as applicable; and 
‘‘(ii) upon determining that the appli-
cable process has not been followed, re-
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quire that the local area’s existing designa-
tion be maintained. 
‘‘(7) REDESIGNATION
INCENTIVE.—The State 
may provide funding from funds made available 
under sections 128(a)(1) and 133(a)(1) to provide 
payments to incentivize— 
‘‘(A) groups of local areas to request to be 
redesignated as a single local area under para-
graph (5)(A); 
‘‘(B) multiple local boards in a planning 
region to develop an agreement to operate as a 
regional consortium under subsection (c)(3); or 
‘‘(C) effective provision of services to indi-
viduals served by a local area, including individ-
uals with barriers to employment, during the 
first program year that begins after the redesig-
nation of a local area.’’. 
(c) REGIONAL COORDINATION.—Section 106(c) of 
the Workforce Innovation and Opportunity Act (29 U.S.C. 
3121(c)) is amended— 
(1) in paragraph (1)— 
(A) by redesignating subparagraphs (F) 
through (H) as subparagraphs (G) through (I), 
respectively; and 
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(B) by inserting the following after sub-
paragraph (E): 
‘‘(F) the establishment of cost arrange-
ments for services described in subsections (c) 
and (d) of section 134, including the pooling of 
funds for such services, as appropriate, for the 
region;’’; 
(2) in paragraph (2), by inserting ‘‘, including 
to assist with establishing administrative costs ar-
rangements or cost arrangements for services under 
subparagraphs (F) and (G) of such paragraph’’ 
after ‘‘delivery efforts’’; 
(3) by redesignating paragraph (3) as para-
graph (4); and 
(4) by inserting after paragraph (2), as so 
amended, the following: 
‘‘(3) REGIONAL CONSORTIUMS.— 
‘‘(A) IN GENERAL.—The local boards and 
chief elected officials of any local area in any 
planning region described in subparagraph (B) 
or (C) of subsection (a)(2) may develop an 
agreement to receive funding under section 
128(b) and section 133(b) as a single consor-
tium for the planning region. 
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‘‘(B) FISCAL AGENT.—If the local boards 
and chief elected officials develop such an 
agreement— 
‘‘(i) one of the chief elected officials in 
the planning region shall designate the fis-
cal agent for the consortium; 
‘‘(ii) the local boards shall develop a 
memorandum of understanding to jointly 
administer the activities for the consor-
tium; and 
‘‘(iii) the required activities for local 
areas under this Act (including the re-
quired functions of the local boards de-
scribed in section 107(d)) shall apply to 
such a consortium as a whole and may not 
be applied separately or differently to the 
local areas or local boards within such con-
sortium.’’. 
(d) SINGLE STATE LOCAL AREAS.—Section 106(d) 
of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3121(d)) is amended— 
(1) by redesignating paragraph (2) as para-
graph (3); and 
(2) by inserting after paragraph (1), the fol-
lowing: 
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‘‘(2) NEW DESIGNATION.— 
‘‘(A) PROCESS.—If, upon a review de-
scribed in paragraph (3)(A) or (4)(B) of sub-
section (b) of a State described in subparagraph 
(B) of this paragraph, the Governor of such 
State determines, after consultation with the 
State board, that such State should be des-
ignated as a single State local area— 
‘‘(i) the Governor shall propose to the 
legislature of the State to designate such 
State as a single State local area; 
‘‘(ii) in a case in which the majority 
of the legislature of the State consents to 
the Governor’s proposed designation— 
‘‘(I) such designation shall take 
effect in accordance with subpara-
graph (C); and 
‘‘(II) the Governor shall identify 
the State as a local area in the State 
plan; and 
‘‘(iii) in a case in which in which the 
majority of the legislature of the State 
does not so consent to the Governor’s pro-
posed designation, the designations of the 
local areas in the State shall be maintained 
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and shall be subject to the requirements of 
subsection (b)(4). 
‘‘(B) STATE
DESCRIBED.—A State de-
scribed in this subparagraph is a State that— 
‘‘(i) has not been designated as a sin-
gle State local area under paragraph (1); 
and 
‘‘(ii)(I) has a population of less than 
5,100,000, as determined by the last de-
cennial census preceding such designation; 
or 
‘‘(II) contains 5 or fewer local areas. 
‘‘(C) EFFECTIVE DATE.—Notwithstanding 
subsection (b)(2), a designation described in 
paragraph (A) shall take effect on the later 
of— 
‘‘(i) the first day of the third full pro-
gram year after the date of enactment of 
the A Stronger Workforce for America Act; 
or 
‘‘(ii) the first day of the first full pro-
gram year following the date on which the 
Governor so designates the State as a sin-
gle State local area. 
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‘‘(D) 
REESTABLISHMENT
OF
LOCAL 
AREAS.— 
‘‘(i) IN GENERAL.—At the end of the 
5-year period beginning on the date on 
which a State is designated as a single 
State local area under subparagraph (A), 
the Secretary shall notify the Governor of 
such State if, during such 5-year period, 
the average of the overall State program 
scores (as referred to in section 116(f)(2)) 
across the adult and dislocated worker pro-
grams and youth programs authorized 
under chapters 2 and 3 of subtitle B are 
lower than the average of the State overall 
program scores across such programs dur-
ing the 5-year period ending on the date 
prior the date on which such State was so 
designated. 
‘‘(ii) DETERMINATION
AFTER
NO-
TICE.— 
‘‘(I) IN GENERAL.—If, after re-
ceiving the notice described in clause 
(i) with respect to a State, the Gov-
ernor determines— 
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‘‘(aa) that the designation of 
the State as a single State local 
area should be maintained, the 
Governor shall comply with sub-
clause (II) or (III), as appro-
priate; or 
‘‘(bb) that such designation 
should not be so maintained, the 
Governor shall reestablish the 
local areas that comprised the 
State prior to the designation of 
the State as a single State local 
area under subparagraph (A), 
and such reestablishment shall 
take effect on the first day of the 
first full program year after the 
Governor receives such notice. 
‘‘(II) REQUIREMENTS FOR MAIN-
TAINING
DESIGNATION.—A designa-
tion described in subclause (I)(aa) 
with respect to a State may only be so 
maintained if the Governor— 
‘‘(aa) not later than 180 
days after the date on which 
Governor receives the notice de-
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scribed in clause (i), issues a 
public notice of the determination 
by the Governor that the designa-
tion of such State as a single 
State local area should be main-
tained; and 
‘‘(bb) not later than 1 year 
after the date on which the Gov-
ernor issues such public notice, 
the Governor receives the consent 
of a majority of the legislature of 
the State to so maintain the des-
ignation. 
‘‘(III) FAILURE
TO
MEET
RE-
QUIREMENTS.—If the Governor fails 
to comply with each of the require-
ments of subclause (II) with respect 
to a State— 
‘‘(aa) 
a 
designation 
de-
scribed in subclause (I)(aa) for 
such State may not be so main-
tained; and 
‘‘(bb) the Governor shall re-
establish the local areas that 
comprised the State prior to the 
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designation of the State as a sin-
gle State local area under sub-
paragraph (A), and such reestab-
lishment shall take effect on the 
first full program year after the 
date that is 1 year after the date 
on which the Governor issues the 
public notice described in sub-
clause (II)(aa) with respect to 
the State.’’. 
(e) 
DEFINITION
OF
‘‘PERFORMED
SUCCESS-
FULLY’’.—Section 106(e)(1) of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3121(e)) is amended to 
read as follows: 
‘‘(1) PERFORMED
SUCCESSFULLY.—The term 
‘performed successfully’, used with respect to a local 
area, means the local area is not subject to correc-
tive action as described in section 116(g)(2) on the 
local performance accountability measures for the 
most recent year for which data are available pre-
ceding the determination of performance under this 
paragraph.’’. 
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SEC. 116. LOCAL WORKFORCE DEVELOPMENT BOARDS. 
(a) MEMBERSHIP.—Section 107(b) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3122(b)) is 
amended— 
(1) in paragraph (2)— 
(A) in subparagraph (B)— 
(i) by striking ‘‘20’’ and inserting 
‘‘30’’; and 
(ii) in clause (iv), by striking ‘‘out-of- 
school youth’’ and inserting ‘‘opportunity 
youth’’; and 
(B) in subparagraph (C)— 
(i) in clause (i), by inserting after 
‘‘title II’’ the following: ‘‘(including activi-
ties through corrections education pro-
grams under such title)’’; 
(ii) in clause (ii), by inserting after 
‘‘community colleges’’ the following: ‘‘and, 
as applicable, historically Black colleges 
and universities (meaning part B institu-
tions as defined in section 322 of the 
Higher Education Act of 1965 (20 U.S.C. 
1061)), 
minority-serving 
institutions 
(meaning institutions defined in any of 
paragraphs (1) through (7) of section 
371(a) of such Act (20 U.S.C.1067q(a)), 
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and Tribal colleges or universities (as such 
term is defined in section 316(b) of such 
Act (20 U.S.C. 1059c(b))) and comprehen-
sive transition and postsecondary programs 
for students with intellectual disabilities 
(as such term is defined in section 760 of 
the Higher Education Act of 1965 (20 
U.S.C. 1140)));’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(iv) may include faculty and staff 
members working directly with students in 
providing workforce investment activities 
through education or training programs 
that support an industry cluster.’’; and 
(2) in paragraph (4)(A)— 
(A) in clause (ii), by striking ‘‘include’’ 
and all that follows through the period at the 
end and inserting the following: ‘‘include— 
‘‘(I) representatives from commu-
nity-based organizations and other 
representatives with professional ex-
pertise in youth workforce develop-
ment programs and with a dem-
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onstrated record of success in serving 
eligible youth; 
‘‘(II) opportunity youth, includ-
ing youth who are individuals with 
disabilities; 
‘‘(III) at least one representative 
of a public or nonprofit agency that 
serves youth, including juvenile justice 
and child welfare agencies, and at 
least one representative of a local pub-
lic housing authority; 
‘‘(IV) for a local area in which a 
Job Corps campus (as such term is 
defined in section 142) is located, at 
least one representative of that cam-
pus; and 
‘‘(V) for a local area in which a 
center for a YouthBuild program (as 
such term is defined in section 
171(b)) is located, at least one rep-
resentative of that center.’’; and 
(B) by adding at the end the following: 
‘‘(iv) A standing committee to provide 
information and to assist with planning, 
operational, and other issues relating to 
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the engagement of representatives of the 
workforce in the local area, which— 
‘‘(I) shall include at least one 
representative of local labor organiza-
tions or joint labor-management orga-
nizations, including at least one rep-
resentative of either of such organiza-
tions with special interest or expertise 
in youth workforce readiness or ap-
prenticeship and pre-apprenticeship 
programs that serve youth; and 
‘‘(II) may include, in a local area 
with a significant number of dis-
located workers (as determined by the 
local board), at least one representa-
tive with special interest or expertise 
in providing supports for finding edu-
cation, training, and employment op-
portunities for dislocated workers. 
‘‘(v) A standing committee to provide 
information and to assist with planning, 
operational, and other issues relating to 
the engagement of educational entities in 
the local area, which shall include, at a 
minimum— 
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‘‘(I) at least one representative of 
a local educational agency that serves 
students residing in such local area; 
‘‘(II) at least one representative 
of institutions of higher education in 
the local area, including community 
colleges; and 
‘‘(III) at least one representative 
of entities administering education 
and training activities, including ca-
reer and technical education programs 
or after- school and summer learning 
programs, in the local area. 
‘‘(vi) A standing committee to provide 
information and to assist with planning, 
operational, and other issues relating to 
the provision of services to justice- involved 
individuals, 
including 
pre-release 
edu-
cation, training, and career services for 
such individuals, which shall include— 
‘‘(I) at least one justice-involved 
individual; and 
‘‘(II) representatives from com-
munity-based organizations with spe-
cial interest or expertise in reentry 
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services for incarcerated and justice- 
involved individuals, including at least 
one representative of an organization 
that is a recipient of a grant under 
section 172.’’. 
(b) FUNCTIONS OF LOCAL BOARD.—Section 107(d) 
of the Workforce Innovation and Opportunity Act (29 
U.S.C. 3122(d)) is amended— 
(1) in paragraph (2)(A), by striking ‘‘section 
108(b)(1)(D)’’ and inserting ‘‘108(b)(1)(E)’’; 
(2) in paragraph (3), by inserting ‘‘, including, 
to the extent practicable, local representatives of the 
core programs and the programs described in section 
121(b)(1)(B),’’ after ‘‘system stakeholders’’; 
(3) in paragraph (4)— 
(A) in subparagraph (B), by inserting 
‘‘and industry and sector partnerships’’ after 
‘‘intermediaries’’; 
(B) in subparagraph (C), by inserting ‘‘, 
local educational agencies, community colleges 
and other institutions of higher education’’ 
after ‘‘economic development entities’’; and 
(C) in subparagraph (D)— 
(i) by striking ‘‘proven’’ and inserting 
‘‘evidence-based’’; 
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(ii) by inserting ‘‘individual’’ after 
‘‘needs of’’; and 
(iii) by inserting ‘‘from a variety of in-
dustries and occupations’’ after ‘‘and em-
ployers’’; 
(4) in paragraph (5), by inserting ‘‘and which, 
to the extent practicable, shall be aligned with career 
and technical education programs of study (as de-
fined in section 3 of the Carl D. Perkins Career and 
Technical Education Act of 2006 (20 U.S.C. 
2302(3)) offered within the local area’’ before the 
period at the end; 
(5) in paragraph (6)— 
(A) in the heading, by striking ‘‘PROVEN’’ 
and inserting ‘‘EVIDENCE-BASED’’; 
(B) in subparagraph (A)— 
(i) by striking ‘‘proven’’ and inserting 
‘‘evidence-based’’; 
(ii) by inserting ‘‘and covered veterans 
(as defined in section 4212(a)(3)(A) of 
title 38, United States Code)’’ after ‘‘em-
ployment’’; and 
(iii) by inserting ‘‘, and give priority 
to covered persons in accordance with sec-
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tion 4215 of title 38, United States Code’’ 
after ‘‘delivery system’’; and 
(C) in subparagraph (B), by striking 
‘‘proven’’ and inserting ‘‘evidence-based’’; 
(6) in paragraph (10)(C)— 
(A) by inserting ‘‘, on the State eligible 
training provider list,’’ after ‘‘identify’’; and 
(B) by inserting ‘‘that operate in or are ac-
cessible to individuals’’ after ‘‘training serv-
ices’’; and 
(7) in paragraph (12)(A), by striking ‘‘activi-
ties’’ and inserting ‘‘funds allocated to the local area 
under section 128(b) and section 133(b) for the 
youth workforce development activities described in 
section 129 and local employment and training ac-
tivities described in section 134(b), and the activi-
ties’’. 
(c) LIMITATIONS.—Section 107(g)(1)(D) of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 
3122(g)(1)(D)) is amended by striking ‘‘needed or’’ and 
inserting the following: ‘‘, that the local board is failing 
to meet the requirements for eligible providers of training 
services under section 122, or’’. 
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SEC. 117. LOCAL PLAN. 
Section 108 of the Workforce Innovation and Oppor-
tunity Act (29 U.S.C. 3123) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘section 102(b)(1)(E)’’ and 
inserting ‘‘section 102(b)(1)(F); and 
(B) by striking ‘‘shall prepare’’ and insert-
ing ‘‘may prepare’’; and 
(2) in subsection (b)— 
(A) in paragraph (1)— 
(i) by redesignating subparagraphs 
(D), (E), and (F) as subparagraphs (E), 
(F), and (H), respectively; 
(ii) by inserting the following after 
subparagraph (C): 
‘‘(D) a description of— 
‘‘(i) how the local area will use real- 
time labor market information to contin-
ually assess the economic conditions and 
workforce trends described in subpara-
graphs (A), (B), and (C); and 
‘‘(ii) how changes in such conditions 
or trends will be communicated to job-
seekers, education and training providers, 
and employers in the local area;’’; 
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(iii) in subparagraph (F), as so redes-
ignated, by striking ‘‘and’’ at the end; and 
(iv) by inserting after subparagraph 
(F), as so redesignated, the following: 
‘‘(G) an analysis, which may be conducted 
in coordination with the State, of the oppor-
tunity youth population in the local area includ-
ing the estimated number of such youth and 
any gaps in services for such population from 
other existing workforce development activities, 
as identified under paragraph (9), and a de-
scription of how the local board will address any 
such gaps in services identified in such analysis; 
and’’; 
(B) in paragraph (2), by striking ‘‘section 
102(b)(1)(E)’’ 
and 
inserting 
‘‘section 
102(b)(1)(F); 
(C) in paragraph (4)— 
(i) in subparagraph (A)— 
(I) by striking ‘‘and’’ at the end 
of clause (iii); and 
(II) by adding at the end the fol-
lowing: 
‘‘(v) carry out any statewide skills- 
based initiatives identified in the State 
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plan that promote the use of demonstrated 
skills and competencies as an alternative to 
the exclusive use of degree attainment as a 
requirement for employment or advance-
ment in a career; and’’; and 
(ii) in subparagraph (B), by striking 
‘‘customized training’’ and inserting ‘‘em-
ployer-directed skills development’’; 
(D) in paragraph (6)(B), by inserting ‘‘, 
such as the use of affiliated sites’’ after 
‘‘means’’; 
(E) in paragraph (9)— 
(i) by striking ‘‘including activities’’ 
and inserting the following: ‘‘including— 
‘‘(A) the availability of community based 
organizations that serve youth primarily during 
nonschool time hours to carry out activities 
under section 129; 
‘‘(B) activities’’; 
(ii) in subparagraph (B), as so redes-
ignated— 
(I) by inserting ‘‘or evidence- 
based’’ after ‘‘successful’’; and 
(II) by adding ‘‘and’’ at the end; 
and 
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(iii) by adding at the end the fol-
lowing: 
‘‘(C) the availability of preapprenticeship 
and apprenticeship programs serving youth;’’; 
(F) in paragraph (12), by inserting ‘‘in-
cluding as described in section 134(c)(2),’’ after 
‘‘system,’’; and 
(G) in paragraph (13), by inserting before 
the semicolon at the end the following: ‘‘, and 
encourage eligible youth who are enrolled in 
adult education and literacy activities under 
title II to co-enroll in youth workforce invest-
ment activities carried out by the local board, 
as appropriate’’. 
CHAPTER 3—PERFORMANCE 
ACCOUNTABILITY 
SEC. 119. PERFORMANCE ACCOUNTABILITY SYSTEM. 
(a) STATE PERFORMANCE ACCOUNTABILITY MEAS-
URES.— 
(1) PRIMARY INDICATORS OF PERFORMANCE.— 
Section 116(b)(2)(A) of the Workforce Innovation 
and Opportunity Act (29 U.S.C. 3141(b)(2)(A)) is 
amended— 
(A) in clause (i)— 
(i) in subclause (II)— 
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(I) by striking ‘‘fourth’’ and in-
serting ‘‘second’’; and 
(II) by inserting ‘‘and remain in 
unsubsidized employment during the 
fourth quarter after exit from the pro-
gram’’ after ‘‘the program’’; 
(ii) in subclause (IV), by striking 
‘‘secondary school diploma’’ and inserting 
‘‘regular high school diploma’’; 
(iii) in subclause (V)— 
(I) by striking ‘‘, during a pro-
gram year,’’; 
(II) by striking ‘‘are in’’ and in-
serting ‘‘enter into’’; and 
(III) by inserting before the 
semicolon at the end the following: 
‘‘within 12 months after the quarter 
in which the participant enters into 
the education and training program’’; 
and 
(iv) by amending subclause (VI) to 
read as follows: 
‘‘(VI) of the program partici-
pants who received training services 
during a program year, the percentage 
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of such program participants who par-
ticipated in on-the-job training, em-
ployer-directed skills development, in-
cumbent worker training, or an ap-
prenticeship.’’; 
(B) in clause (ii)— 
(i) in subclause (II)— 
(I) by striking ‘‘fourth’’ and in-
serting ‘‘second’’; 
(II) by inserting ‘‘, and who re-
main either in such activities or un-
subsidized employment during the 
fourth quarter after exit from the pro-
gram’’ after ‘‘the program’’; and 
(III) by striking ‘‘and’’ at the 
end; 
(ii) in subclause (III)— 
(I) by striking ‘‘(VI)’’ and insert-
ing ‘‘(V)’’; and 
(II) by striking the period at the 
end and inserting ‘‘; and’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(IV) of the program partici-
pants who exited the program during 
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a program year, the percentage of 
such program participants who com-
pleted, prior to such exit, a work ex-
perience 
as 
described 
in 
section 
129(c)(2)(C).’’; and 
(C) in clause (iii), by striking ‘‘secondary 
school diploma’’ and inserting ‘‘regular high 
school diploma’’; and 
(D) by striking clause (iv). 
(2) 
LEVELS
OF
PERFORMANCE.—Section 
116(b)(3)(A) of the Workforce Innovation and Op-
portunity Act (29 U.S.C. 3141(b)(3)(A)) is amend-
ed— 
(A) by amending clause (iii) to read as fol-
lows: 
‘‘(iii) 
IDENTIFICATION
IN
STATE 
PLAN.— 
‘‘(I) SECRETARIES.—For each 
State submitting a State plan, the 
Secretary of Labor and the Secretary 
of Education shall, not later than 
January 15 of the year in which such 
State plan is submitted, for the first 
2 program years covered by the State 
plan, and not later than January 15 
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of the second program year covered by 
the State plan, for the third and 
fourth program years covered by the 
State plan— 
‘‘(aa) propose to the State 
expected levels of performance, 
for each of the corresponding pri-
mary indicators of performance 
for each of the programs de-
scribed in clause (ii) for such 
State, which shall— 
‘‘(AA) 
be 
consistent 
with the factors listed in 
clause (v); and 
‘‘(BB) be proposed in a 
manner that ensures suffi-
cient time is provided for 
the State to evaluate and re-
spond to such proposals; and 
‘‘(bb) publish, on a public 
website of the Department of 
Labor, the statistical model de-
veloped under clause (viii) and 
the methodology used to develop 
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each such expected level of per-
formance. 
‘‘(II) 
STATES.—Each 
State 
shall— 
‘‘(aa) evaluate each of the 
expected levels of performance 
proposed under subclause (I) 
with respect to such State; 
‘‘(bb) based on such evalua-
tion of each such expected level 
of performance— 
‘‘(AA) accept the ex-
pected level of performance 
as so proposed; or 
‘‘(BB) provide a coun-
terproposal 
for 
such 
ex-
pected level of performance, 
including an analysis of how 
the counterproposal address-
es factors or circumstances 
unique to the State that 
may not have been ac-
counted for in the expected 
level of performance; and 
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‘‘(cc) include in the State 
plan, with respect to each of the 
corresponding primary indicators 
of performance for each of the 
programs described in clause (ii) 
for such State— 
‘‘(AA) 
the 
expected 
level of performance pro-
posed under subclause (I); 
‘‘(BB) 
the 
counter-
proposal for such proposed 
level, if any; and 
‘‘(CC) the level of per-
formance that is agreed to 
under clause (iv).’’; 
(B) in clause (iv)— 
(i) in subclause (I)— 
(I) in the second sentence, by 
striking ‘‘the levels identified in the 
State plan under clause (iii) and the 
factors described in clause (v)’’ and 
inserting ‘‘the factors described in 
clause (v) and any counterproposal, 
and the analysis provided by the State 
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with such counterproposal, described 
in clause (iii)(II)(bb)(BB)’’; and 
(II) in the third sentence, by 
striking ‘‘incorporated into the State 
plan’’ and inserting ‘‘included in the 
State plan, as described in clause 
(iii)(II)(cc),’’; and 
(ii) in subclause (II)— 
(I) in the second sentence, by 
striking ‘‘the factors described in 
clause (v)’’ and inserting ‘‘the factors 
described in clause (v) and any coun-
terproposal, and the analysis provided 
by the State with such counter-
proposal, 
described 
in 
clause 
(iii)(II)(bb)(BB)’’; and 
(II) in the third sentence, by 
striking ‘‘incorporated into the State 
plan’’ and inserting ‘‘included in the 
State plan, as described in clause 
(iii)(II)(cc),’’; and 
(C) in clause (v)(II)— 
(i) in the matter preceding item (aa), 
by striking ‘‘based on’’ and inserting 
‘‘based on each consideration that is found 
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to be predictive of performance on an indi-
cator for a program and consists of’’; and 
(ii) in item (bb), by striking ‘‘ex-of-
fender status, and welfare dependency’’ 
and inserting ‘‘justice-involved individual 
status, foster care status, school status, 
education level, highest grade level com-
pleted, low-income status, and receipt of 
public assistance’’. 
(b) PERFORMANCE REPORTS.—Section 116(d) of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 
3141(d)) is amended— 
(1) by amending paragraph (1) to read as fol-
lows: 
‘‘(1) IN GENERAL.— 
‘‘(A) TEMPLATES FOR PERFORMANCE RE-
PORTS.—Not later than 12 months after the 
date of enactment of the A Stronger Workforce 
for America Act, the Secretary of Labor, in 
conjunction with the Secretary of Education, 
shall develop, or review and modify, as appro-
priate, to comply with the requirements of this 
subsection, the templates for performance re-
ports that shall be used by States (including by 
States on behalf of eligible providers of training 
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services under section 122) and local areas to 
produce a report on outcomes achieved by the 
core programs. In developing, or reviewing and 
modifying, such templates, the Secretary of 
Labor, in conjunction with the Secretary of 
Education, shall take into account the need to 
maximize the value of the templates for work-
ers, jobseekers, employers, local elected officials, 
State officials, Federal policymakers, and other 
key stakeholders. 
‘‘(B) STANDARDIZED REPORTING.—In de-
veloping, or reviewing and modifying, the tem-
plates under subparagraph (A), the Secretary of 
Labor, in conjunction with the Secretary of 
Education, shall ensure that States and local 
areas, in producing performance reports for 
core programs and eligible providers of training 
services, collect and report information on com-
mon data elements— 
‘‘(i) in a comparable and uniform for-
mat; and 
‘‘(ii) using terms that are assigned 
identical meanings across all such reports. 
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‘‘(C) ADDITIONAL REPORTING.—The Sec-
retary of Labor, in conjunction with the Sec-
retary of Education— 
‘‘(i) in addition to the information on 
the common data elements, may require 
additional information with respect to any 
core program as necessary for effective re-
porting; and 
‘‘(ii) shall periodically review any such 
requirement for additional information to 
ensure the requirement is necessary and 
does not impose an undue reporting bur-
den. 
‘‘(D) PRIVACY.—The Secretary of Labor, 
in conjunction with the Secretary of Education, 
shall ensure subparagraph (B) is carried out in 
a manner that protects and promotes individual 
privacy and data security, in accordance with 
applicable Federal privacy laws. 
‘‘(E) ACCESS TO WAGE RECORDS.— 
‘‘(i) ACCESS.—A State may facilitate 
for a local area that meets the require-
ments of clause (ii), for the sole purpose of 
fulfilling the reporting requirements under 
this subsection, access to the quarterly 
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wage records (excluding such records made 
available by any other State) of program 
participants in the local area. 
‘‘(ii) PRIVACY PROTECTIONS.—To re-
ceive access to such quarterly wage 
records, the local area shall have dem-
onstrated to the State the ability to com-
ply, and agree to comply, with all applica-
ble Federal and State requirements relat-
ing to the access and use of such quarterly 
wage records, including requirements relat-
ing to data privacy and cybersecurity.’’; 
(2) in paragraph (2)— 
(A) in subparagraph (B), by inserting ‘‘, 
and aggregated to compare those levels of per-
formance for all individuals with barriers to em-
ployment with those levels of performance for 
all other individuals’’ before the semicolon at 
the end; 
(B) in subparagraphs (D) and (F), by 
striking ‘‘career and training services, respec-
tively’’ and inserting ‘‘career services, training 
services, and supportive services, respectively’’; 
(C) by redesignating subparagraphs (J) 
through (L) as subparagraphs (K) through (M), 
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respectively and inserting after subparagraph 
(I) the following: 
‘‘(J) the median earnings gain of partici-
pants who received training services, calculated 
as the median value of the difference between— 
‘‘(i) participant earnings in unsub-
sidized employment during the 4 quarters 
after program exit; and 
‘‘(ii) participant earnings in the 4 
quarters prior to entering the program;’’; 
and 
(D) in subparagraph (L), as so redesig-
nated— 
(i) by striking clause (ii); and 
(ii) by striking ‘‘strategies for pro-
grams’’ and all that follows through ‘‘the 
performance’’, and inserting ‘‘strategies for 
programs, the performance’’; 
(3) in paragraph (3)— 
(A) in subparagraph (A), by striking ‘‘(L)’’ 
and inserting ‘‘(M)’’; 
(B) in subparagraph (B), by striking 
‘‘and’’ at the end; 
(C) by redesignating subparagraph (C) as 
subparagraph (F); and 
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(D) by inserting after subparagraph (B) 
the following: 
‘‘(C) the percentage of the local area’s allo-
cation under section 133(b) that the local area 
spent on services paid for through an individual 
training 
account 
described 
in 
section 
134(c)(3)(F)(iii) or a training contract de-
scribed in section 134(c)(3)(G)(ii); 
‘‘(D) the percentage of the local area’s al-
location under section 133(b) that the local 
area spent on supportive services; 
‘‘(E) the percentage of the local area’s al-
location under section 133(b), if any, that is 
spent 
on 
incumbent 
worker 
training, 
disaggregated by whether the amount so spent 
was spent on the provision of incumbent worker 
training through contracts or through incum-
bent worker upskilling accounts described in 
section 134(d)(4)(E); and’’; 
(4) by amending paragraph (4) to read as fol-
lows: 
‘‘(4) CONTENTS OF ELIGIBLE TRAINING PRO-
VIDERS PERFORMANCE REPORT.— 
‘‘(A) IN GENERAL.—The State shall use 
the information submitted by the eligible pro-
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viders of training services under section 122 
and administrative records, including quarterly 
wage records, of the participants of the pro-
grams offered by the providers to produce a 
performance report on the eligible providers of 
training services in the State, which shall in-
clude, subject to paragraph (6)(C)— 
‘‘(i) with respect to each program of 
study (or the equivalent) of a provider on 
the list described in section 122(d)— 
‘‘(I) information specifying the 
levels of performance achieved with 
respect to the primary indicators of 
performance described in subclauses 
(I) 
through 
(IV) 
of 
subsection 
(b)(2)(A)(i) with respect to all individ-
uals engaging in the program of study 
(or the equivalent); and 
‘‘(II) the total number of individ-
uals exiting from the program of 
study 
(or 
the 
equivalent), 
disaggregated by whether such indi-
viduals completed the program of 
study (or equivalent); and 
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‘‘(ii) with respect to all eligible pro-
viders of training services under section 
122— 
‘‘(I) the total number of partici-
pants who received training services 
through each adult and dislocated 
worker program authorized under 
chapter 3 of subtitle B, disaggregated 
by the type of entity that provided the 
training services, during the most re-
cent program year and the 3 pre-
ceding program years; 
‘‘(II) the total number of partici-
pants who exited from training serv-
ices, disaggregated by the type of en-
tity that provided the training serv-
ices, and by whether such participants 
completed the training services, dur-
ing the most recent program year and 
the 3 preceding program years; 
‘‘(III) the average cost per par-
ticipant for the participants who re-
ceived training services, disaggregated 
by the type of entity that provided the 
training, during the most recent pro-
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gram year and the 3 preceding pro-
gram years; 
‘‘(IV) the average of the per-pro-
gram ratios of median earnings in-
crease for a participant to the total 
cost of the provider’s program, as de-
scribed in section 122(b)(5)(B)(i)(III) 
for the participant; and 
‘‘(V) the number of individuals 
with barriers to employment served by 
each adult and dislocated worker pro-
gram authorized under chapter 3 of 
subtitle B, disaggregated by each sub-
population of such individuals, and by 
race, ethnicity, sex, and age; and 
‘‘(iii) to the extent practicable, with 
respect to each recognized postsecondary 
credential on the list of credentials award-
ed by eligible providers in the State de-
scribed in section 122(d)(2)— 
‘‘(I) information specifying the 
levels of performance achieved with 
respect to the primary indicators of 
performance described in subclauses 
(I) 
through 
(IV) 
of 
subsection 
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(b)(2)(A)(i) for all participants in the 
State receiving such credential; and 
‘‘(II) information specifying the 
levels of performance achieved with 
respect to the primary indicators of 
performance described in subclauses 
(I) 
through 
(IV) 
of 
subsection 
(b)(2)(A)(i) for participants in the 
State receiving such credential who 
are individuals with barriers to em-
ployment, disaggregated by each sub-
population of such individuals, and by 
race, ethnicity, sex, and age.’’; and 
(5) in paragraph (6)— 
(A) by amending subparagraph (A) to read 
as follows: 
‘‘(A) STATE
PERFORMANCE
REPORTS.— 
The Secretary of Labor and the Secretary of 
Education shall annually make available the 
performance reports for States containing the 
information described in paragraph (2), which 
shall include making such reports available— 
‘‘(i) 
digitally 
using 
transparent, 
linked, open, and interoperable data for-
mats that are human readable and ma-
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chine actionable such that the data from 
these reports— 
‘‘(I) are easily understandable; 
and 
‘‘(II) can be easily included in 
web-based tools and services sup-
porting search, discovery, comparison, 
analysis, navigation, and guidance; 
‘‘(ii) in a printable format; and 
‘‘(iii) in multiple languages, to the ex-
tent practicable.’’; 
(B) in subparagraph (B)— 
(i) by striking ‘‘(including by elec-
tronic means), in an easily understandable 
format,’’; and 
(ii) by adding at the end the fol-
lowing: ‘‘The Secretary of Labor and the 
Secretary of Education shall include, on 
the website where the State performance 
reports are required under subparagraph 
(A) to be made available, a link to local 
area performance reports and the eligible 
provider of training services report for 
each State. Such reports shall be made 
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available in each of the formats described 
in subparagraph (A).’’; and 
(C) by adding at the end the following: 
‘‘(E) RULE OF CONSTRUCTION.—Nothing 
in this subsection shall be construed to require 
the retroactive collection of information, from 
program years prior to the effective date de-
scribed in section 502(a)(1) of the A Stronger 
Workforce for America Act, that was not re-
quired under this subsection prior to that effec-
tive date.’’. 
(c) EVALUATION
OF STATE PROGRAMS.—Section 
116(e) of the Workforce Innovation and Opportunity Act 
(29 U.S.C. 3141(e)) is amended— 
(1) in paragraph (1)— 
(A) in the first sentence, by striking ‘‘shall 
conduct ongoing’’ and inserting ‘‘shall use data 
to conduct analyses and ongoing’’; and 
(B) in the second sentence, by striking 
‘‘conduct the’’ and inserting ‘‘conduct such 
analyses and’’; and 
(2) in paragraph (2), by adding ‘‘A State may 
use various forms of analysis, such as machine 
learning or other advanced analytics, to improve pro-
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gram operations and outcomes and to identify areas 
for further evaluation.’’ at the end. 
(d) SANCTIONS
FOR STATE FAILURE TO MEET 
STATE PERFORMANCE ACCOUNTABILITY MEASURES.— 
Section 116(f) of the Workforce Innovation and Oppor-
tunity Act (29 U.S.C. 3141(f)) is amended to read as fol-
lows: 
‘‘(f) SANCTIONS
FOR STATE FAILURE TO MEET 
STATE PERFORMANCE ACCOUNTABILITY MEASURES.— 
‘‘(1) TARGETED SUPPORT AND ASSISTANCE.— 
‘‘(A) IN
GENERAL.—If a State fails to 
meet 80 percent of the State adjusted level of 
performance for an indicator described in sub-
section (b)(2)(A) (referred to in the regulations 
carrying out this section as an ‘individual indi-
cator score’) for a core program for any pro-
gram year, the Secretary of Labor and the Sec-
retary of Education shall provide technical as-
sistance. 
‘‘(B) SANCTIONS.— 
‘‘(i) IN GENERAL.—If the State fails 
in the manner described in subclause (I) or 
(II) of clause (ii) with respect to the pro-
gram year specified in that subclause, the 
percentage of each amount that could (in 
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the absence of this subsection) be reserved 
by the Governor under section 128(a)(1) 
for the immediately succeeding program 
year shall be reduced by 5 percent and an 
amount equivalent to the amount reduced 
shall be returned to the Secretary of Labor 
until such date as the Secretary of Labor 
or the Secretary of Education, as appro-
priate, determines that the State meets the 
State adjusted level of performance, in the 
case of a failure described in clause (ii)(II), 
or has submitted the reports for the appro-
priate program years, in the case of a fail-
ure described in clause (ii)(I). 
‘‘(ii) FAILURES.—A State shall be 
subject to clause (i)— 
‘‘(I) if (except in the case of ex-
ceptional circumstances as determined 
by the Secretary of Labor or the Sec-
retary of Education, as appropriate), 
such State fails to submit a report 
under subsection (d) for any program 
year; or 
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‘‘(II) for a failure under subpara-
graph (A) that has continued for a 
second consecutive program year. 
‘‘(2) COMPREHENSIVE
SUPPORT
AND
ASSIST-
ANCE.— 
‘‘(A) IN
GENERAL.—If a State fails to 
meet an average of 90 percent of the State ad-
justed levels of performance for a single core 
program across all indicators of performance 
(referred to in the regulations carrying out this 
section as an ‘overall State program score’) for 
any program year, or if a State fails to meet an 
average of 90 percent of the State adjusted lev-
els of performance for a single indicator of per-
formance across all core programs (referred to 
in the regulations carrying out this section as 
an ‘overall State indicator score’) for any pro-
gram year, the Secretary of Labor and the Sec-
retary of Education shall provide technical as-
sistance, as described and authorized under sec-
tion 168(b), including assistance in the develop-
ment of a comprehensive performance improve-
ment plan. 
‘‘(B) SECOND
CONSECUTIVE
YEAR
FAIL-
URE.—If such failure under subparagraph (A) 
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continues for a second consecutive program 
year, the percentage of each amount that could 
(in the absence of this subsection) be reserved 
by the Governor under section 128(a)(1) for the 
immediately succeeding program year shall be 
reduced by 8 percent and an amount equivalent 
to the amount reduced shall be returned to the 
Secretary of Labor until such date as the Sec-
retary of Labor or the Secretary of Education, 
as appropriate, determines that the State meets 
such State adjusted levels of performance. 
‘‘(3) LIMITATION.—The total reduction under 
this subsection to the percentage of each amount 
that could (in the absence of this subsection) be re-
served by the Governor under section 128(a)(1) may 
not exceed 10 percent for a program year. 
‘‘(4) REALLOTMENT OF REDUCTIONS.— 
‘‘(A) IN GENERAL.—The amounts available 
for reallotment for a program year shall be re-
allotted to a State (in this paragraph referred 
to as an ‘eligible State’) that— 
‘‘(i) was not subject to a reduction of 
funds under paragraph (1)(B) or para-
graph (2)(B) of this subsection for such 
program year; 
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‘‘(ii) in the case of amounts available 
under section 127(b)(1)(C), was 1 of the 5 
States that achieved, in the most recent 
program year, the greatest increase from 
the prior year to the average of the State’s 
adjusted levels of performance across all 
indicators of performance for the youth 
program under chapter 2 of subtitle B; 
‘‘(iii) in the case of amounts available 
under section 132(b)(1)(B), was 1 of the 5 
States that achieved, in the most recent 
program year, the greatest increase from 
the prior year to the average of the State’s 
adjusted levels of performance across all 
indicators of performance for the adult 
program under chapter 3 of subtitle B; 
and 
‘‘(iv) in the case of amounts available 
under section 132(b)(2)(B), was 1 of the 5 
States that achieved, in the most recent 
program year, the greatest increase from 
the prior year to the average of the State’s 
adjusted levels of performance across all 
indicators of performance for the dis-
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located worker program under chapter 3 of 
subtitle B. 
‘‘(B) AMOUNTS AVAILABLE FOR REALLOT-
MENT.—In this paragraph, the term ‘amounts 
available for reallotment for a program year’ 
means the amounts available under section 
127(b)(1)(C) and paragraphs (1)(B) and (2)(B) 
of section 132(b) for such program year which 
could (in the absence of the requirements to re-
turn funds of paragraph (1)(B) or paragraph 
(2)(B) of this subsection) have otherwise been 
reserved under section 128(a)(1) by a Governor 
of a State for such program year. 
‘‘(C) REALLOTMENT AMOUNTS.—In mak-
ing reallotments under subparagraph (A) for a 
program year to eligible States, the Secretary 
shall allot to each eligible State— 
‘‘(i) in the case of amounts available 
under section 127(b)(1)(C), an amount 
based on the relative amount of the allot-
ment made (before the reallotments under 
this paragraph are made) to such eligible 
State under section 127(b)(1)(C) for such 
program year, compared to the total allot-
ments made (before the reallotments under 
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this paragraph are made) to all eligible 
States under section 127(b)(1)(C) for such 
program year; 
‘‘(ii) in the case of amounts available 
under paragraph (1)(B) of section 132(b), 
an amount based on the relative amount of 
the allotment made (before the reallot-
ments under this paragraph are made) to 
such eligible State under paragraph (1)(B) 
of section 132(b) for such program year, 
compared to the total allotments made (be-
fore the reallotments under this paragraph 
are made) to all eligible States under para-
graph (1)(B) of section 132(b) for such 
program year; and 
‘‘(iii) in the case of amounts available 
under paragraph (2)(B) of section 132(b), 
an amount based on the relative amount of 
the allotment made (before the reallot-
ments under this paragraph are made) to 
such eligible State under paragraph (2)(B) 
of section 132(b) for such program year, 
compared to the total allotments made (be-
fore the reallotments under this paragraph 
are made) to all eligible States under para-
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graph (2)(B) of section 132(b) for such 
program year.’’. 
(e) SANCTIONS FOR LOCAL AREA FAILURE TO MEET 
LOCAL PERFORMANCE ACCOUNTABILITY MEASURES.— 
Section 116(g) of the Workforce Innovation and Oppor-
tunity Act (29 U.S.C. 3141(g)) is amended— 
(1) in paragraph (1)— 
(A) by inserting ‘‘80 percent of the’’ before 
‘‘local performance’’; and 
(B) by striking ‘‘local performance ac-
countability measures established under sub-
section (c)’’ and inserting ‘‘local level of per-
formance established under subsection (c) for 
an indicator of performance described in sub-
section (b)(2)(A) for a single program, an aver-
age of 90 percent of the local levels of perform-
ance across all such indicators for a single pro-
gram, or an average of 90 percent of the local 
levels of performance for a single such indicator 
across all programs,’’; and 
(2) in paragraph (2)— 
(A) by amending subparagraph (A) to read 
as follows: 
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‘‘(A) IN GENERAL.—If such failure con-
tinues, the Governor shall take corrective ac-
tions, which shall include— 
‘‘(i) in the case of such failure, as de-
scribed in paragraph (1), for a second con-
secutive year, on any single indicator, 
across indicators for a single program, or 
on a single indicator across programs, a 5- 
percent reduction in the amount that 
would (in the absence of this clause) be al-
located to the local area for the imme-
diately succeeding program year under 
chapter 2 or 3 of subtitle B for the pro-
gram subject to the performance failure; 
‘‘(ii) in the case of such failure, as de-
scribed in paragraph (1), for a third con-
secutive year, the development of a reorga-
nization plan through which the Governor 
shall— 
‘‘(I) require the appointment and 
certification of a new local board, con-
sistent with the criteria established 
under section 107(b); 
‘‘(II) prohibit the use of one-stop 
delivery system contractors or service 
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providers identified as achieving a 
poor level of performance; and 
‘‘(III) redesignate a local area 
(which may include merging a local 
area with another local area), if the 
Governor determines that the likely 
cause of such continued performance 
failure of a local area is due to such 
local area’s designation being granted 
without the appropriate consideration 
of parameters described under section 
106(b)(1)(B); or 
‘‘(iii) taking another significant action 
determined appropriate by the Governor.’’; 
(B) in subparagraph (B)(i), by inserting 
‘‘(ii)’’ after ‘‘subparagraph (A)’’; and 
(C) by adding at the end the following: 
‘‘(D) REALLOCATION
OF
REDUCTIONS.— 
With respect to any amounts available to carry 
out section 128(b), paragraph (2)(A) or (3) of 
section 133(b), and section 133(b)(2)(B) to a 
Governor for a program year which would (in 
the absence of subparagraph (A)(i)) have other-
wise been allocated by such Governor to a local 
area (referred to individually in this subpara-
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graph as an ‘unallocated amount’) for such pro-
gram year— 
‘‘(i) 10 percent of those 3 unallocated 
amounts shall be reserved by the Governor 
to provide technical assistance to local 
areas within the State that were subject to 
a reduction of allocation amounts pursuant 
to subparagraph (A)(i) for such program 
year; and 
‘‘(ii) the amounts remaining after the 
reservations under clause (i) shall be re-
allocated by the Governor, to the local 
areas within the State that were not sub-
ject to a reduction of allocation amounts 
pursuant to subparagraph (A)(i) for such 
program year, in a manner determined by 
the Governor, which may take into consid-
eration the extent to which local areas 
serve a significant number, as determined 
by the Governor, of individuals with bar-
riers to employment.’’. 
(f) ESTABLISHING
PAY-FOR-PERFORMANCE
CON-
TRACT STRATEGY INCENTIVES.—Section 116(h) of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 
3141(h)) is amended by striking ‘‘non-Federal funds’’ and 
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inserting ‘‘not more than 5 percent of the funds reserved 
under section 128(a)(1)’’. 
(g) INFORMATION AND TECHNICAL ASSISTANCE.— 
Section 116 of the Workforce Innovation and Opportunity 
Act (29 U.S.C. 3141) is amended— 
(1) by redesignating subsection (i) as subsection 
(j); and 
(2) by inserting after subsection (h) the fol-
lowing: 
‘‘(i) INFORMATION AND TECHNICAL ASSISTANCE.— 
Beginning not later than 12 months after the date of en-
actment of the A Stronger Workforce for America Act, 
the Secretary of Labor shall hold meetings with each State 
board and State agency that administers a core program, 
and that requests such a meeting, to provide information 
and technical assistance concerning the performance ac-
countability measures established in accordance with sub-
section (b), and related requirements for States under this 
section.’’. 
(h) FISCAL AND MANAGEMENT ACCOUNTABILITY IN-
FORMATION SYSTEMS.—Section 116(j) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3141(j)), as 
so redesignated, is amended— 
(1) in the first sentence of paragraph (2), by 
inserting ‘‘, and may use information provided from 
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the National Directory of New Hires in accordance 
with section 453(j)(8) of the Social Security Act (42 
U.S.C. 653(j)(8))’’ after ‘‘State law’’; 
(2) by redesignating paragraph (3) as para-
graph (4); and 
(3) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) DESIGNATED
ENTITY.—The Governor 
shall designate a State agency (or appropriate State 
entity) to assist in carrying out the performance re-
porting requirements of this section for core pro-
grams and eligible providers of training services. 
The designated State agency (or appropriate State 
entity) shall be responsible for— 
‘‘(A) facilitating data matches using quar-
terly wage record information, including wage 
record information made available by other 
States, to measure employment and earnings 
outcomes; 
‘‘(B) notifying State agencies that admin-
ister core programs and eligible providers of 
training services of the State’s procedures for 
data validation and reliability, as described in 
subsection (d)(5); and 
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‘‘(C) protection against disaggregation that 
would violate applicable privacy standards, as 
described in subsection (d)(6)(C).’’. 
(i) IMPLEMENTATION OF PERFORMANCE ACCOUNT-
ABILITY MEASURES.—Section 116 of the Workforce Inno-
vation and Opportunity Act (29 U.S.C. 3141) is amended 
by adding at the end the following: 
‘‘(k) IMPLEMENTATION OF PERFORMANCE ACCOUNT-
ABILITY MEASURES.—Not later than 12 months after the 
date of enactment of the A Stronger Workforce for Amer-
ica Act, the Secretary of Labor and the Secretary of Edu-
cation shall fully implement the requirements of this sec-
tion for programs described in subsection (b)(3)(A)(iv), in-
cluding— 
‘‘(1) developing and disseminating the objective 
statistical adjustment model described in subsection 
(b)(3)(A)(viii) and using the model as described in 
subsection (b)(3)(A)(viii) for each program; and 
‘‘(2) notifying the State agencies carrying out 
such programs of the performance accountability 
measures established under this section, of the re-
porting and evaluation requirements for such pro-
grams, and of the sanctions requirements for pro-
grams that fail to meet State adjusted levels of per-
formance under subsection (b)(3)(A)(iv).’’. 
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Subtitle C—Workforce Investment 
Activities and Providers 
CHAPTER 1—WORKFORCE INVESTMENT 
ACTIVITIES AND PROVIDERS 
SEC. 121. ESTABLISHMENT OF ONE-STOP DELIVERY SYS-
TEMS. 
(a) ONE-STOP PARTNERS.—Section 121(b) of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 
3151(b)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (B)— 
(i) in clause (xi), by inserting ‘‘and’’ 
at the end; 
(ii) by striking clause (xii); and 
(iii) by redesignating clause (xiii) as 
clause (xii); and 
(B) in subparagraph (C), by striking ‘‘sub-
paragraph (B)(xiii)’’ and inserting ‘‘subpara-
graph (B)(xii)’’; and 
(2) in paragraph (2)— 
(A) in subparagraph (A), by striking 
‘‘With’’ and inserting ‘‘At the direction of the 
Governor or with’’; and 
(B) in subparagraph (B)— 
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(i) in clause (vi), by striking ‘‘and’’ at 
the end; 
(ii) by redesignating clause (vii) as 
clause (viii); 
(iii) by inserting after clause (vi) the 
following: 
‘‘(vii) any applicable economic devel-
opment and workforce development pro-
grams carried out in the State— 
‘‘(I) by the Economic Develop-
ment Administration; 
‘‘(II) under Public Law 117–167 
(commonly known as the ‘CHIPS and 
Science Act of 2022’); 
‘‘(III) under the Infrastructure 
Investment and Jobs Act (Public Law 
117–58); or 
‘‘(IV) under Public Law 117–168 
(commonly known as the ‘Inflation 
Reduction Act of 2022’); and’’; and 
(iv) in clause (viii), as so redesig-
nated— 
(I) by inserting ‘‘opportunity 
youth services,’’ after ‘‘education,’’; 
and 
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(II) by inserting ‘‘, by commu-
nity-based organizations,’’ after ‘‘li-
braries’’. 
(b) MEMORANDUM
OF UNDERSTANDING.—Section 
121(c)(2)(A)(iv) of the Workforce Innovation and Oppor-
tunity Act (29 U.S.C. 3151(c)(2)(A)(iv)) is amended by 
striking ‘‘access to services, including access to technology 
and materials, made’’ and inserting ‘‘access or referral to 
services, including access or referral to technology, mate-
rials, and other supportive services, made’’. 
(c) ONE-STOP OPERATORS.—Section 121(d) of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 
3151(d)) is amended— 
(1) in paragraph (1), by striking ‘‘paragraphs 
(2) and (3)’’ and inserting ‘‘paragraphs (2) and 
(5)’’; 
(2) in paragraph (2)(B)— 
(A) in the matter preceding clause (i), by 
inserting ‘‘(including effectiveness in serving in-
dividuals with barriers to employment)’’ after 
‘‘demonstrated effectiveness’’; 
(B) in clause (i), by inserting after ‘‘edu-
cation’’ the following: ‘‘or an area career and 
technical education school’’; 
(C) in clause (v), by striking ‘‘and’’; 
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(D) by redesignating clause (vi) as clause 
(viii); 
(E) by inserting after clause (v) the fol-
lowing: 
‘‘(vi) a public library; 
‘‘(vii) a local board that meets the re-
quirements of paragraph (4); and’’; and 
(F) in clause (viii), as so redesignated, by 
inserting after ‘‘labor organization’’ the fol-
lowing: ‘‘or joint labor-management organiza-
tion’’; 
(3) by redesignating paragraphs (3) and (4) as 
paragraphs (5) and (6), respectively; and 
(4) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) RESPONSIBILITIES.— 
‘‘(A) IN GENERAL.—In operating a one- 
stop delivery system referred to in subsection 
(e), a one-stop operator— 
‘‘(i) shall— 
‘‘(I) manage the physical and vir-
tual infrastructure and operations of 
the one-stop delivery system in the 
local area; 
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‘‘(II) 
facilitate 
coordination 
among the one-stop partners in such 
one-stop delivery system; and 
‘‘(III) take the necessary steps to 
ensure efficient and effective service 
delivery for individuals served by the 
one-stop delivery system, including in-
dividuals with barriers to employment; 
and 
‘‘(ii) may, subject to the requirements 
under subparagraph (B), directly provide 
services to job seekers and employers. 
‘‘(B) INTERNAL CONTROLS.—In a case in 
which a one-stop operator seeks to operate as a 
service provider pursuant to subparagraph 
(A)(ii), the local board shall establish internal 
controls (which shall include written policies 
and procedures)— 
‘‘(i) with respect to the competition in 
which the one-stop operator will compete to 
be selected as such service provider, and 
the subsequent oversight, monitoring, and 
evaluation of the performance of such one- 
stop operator as such service provider; and 
‘‘(ii) which— 
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‘‘(I) require compliance with— 
‘‘(aa) 
relevant 
Office 
of 
Management and Budget circu-
lars relating to conflicts of inter-
est; and 
‘‘(bb) any applicable State 
conflict of interest policy; and 
‘‘(II) prohibit a one-stop operator 
from developing, managing, or con-
ducting the competition in which the 
operator intends to compete to be se-
lected as a service provider. 
‘‘(4) LOCAL
BOARDS
AS
ONE-STOP
OPERA-
TORS.—Subject to approval from the chief elected 
official and Governor and in accordance with any 
other eligibility criteria established by the State, a 
local board may serve as a one-stop operator, if the 
local board— 
‘‘(A) enters into a written agreement with 
the chief elected official that clarifies how the 
local board will carry out the functions and re-
sponsibilities as a one-stop operator in a man-
ner that complies with the appropriate internal 
controls to prevent any conflicts of interest, 
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which shall include how the local board, while 
serving as a one-stop operator, will— 
‘‘(i) comply with the relevant Office of 
Management and Budget circulars relating 
to conflicts of interest; and 
‘‘(ii) any applicable State conflict of 
interest policy; and 
‘‘(B) complies with the other applicable re-
quirements of this subsection.’’. 
(d) ONE-STOP DELIVERY.—Section 121(e) of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 
3151(e)) is amended— 
(1) in paragraph (1)— 
(A) by redesignating subparagraphs (D) 
and (E) as subparagraphs (E) and (F), respec-
tively; and 
(B) by inserting after subparagraph (C) 
the following: 
‘‘(D) provide referrals to supportive serv-
ices, to the extent practicable;’’; 
(2) in paragraph (2)— 
(A) in subparagraph (A), to read as fol-
lows: 
‘‘(A) shall make each of the programs, 
services (meaning a referral in the case of sup-
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portive services, for the purposes of this para-
graph), and activities described in paragraph 
(1) available— 
‘‘(i) at not less than 1 physical or vir-
tual center for each local area of the State, 
except that, in the case of 1 or more local 
areas that share at least 1 common border, 
each such local area may share— 
‘‘(I) a virtual center if the local 
area complies with subparagraph (E); 
or 
‘‘(II) a physical center, if such 
center is located in a location that 
promotes accessibility to services for 
individuals residing in all such local 
areas served by the center; and 
‘‘(ii) in a manner that is designed to 
promote efficiency, coordination, quality, 
and accessibility for individuals with bar-
riers to employment, as determined by the 
local board, in the delivery of such pro-
grams, services, and activities;’’; 
(B) in subparagraph (B)(i), by inserting 
after ‘‘affiliated sites’’ the following: ‘‘(such as 
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a site of any of the entities described in sub-
section (d)(2)(B))’’; 
(C) in subparagraph (C)— 
(i) by inserting after ‘‘centers’’ the 
following: ‘‘(which may be virtual or phys-
ical centers)’’; and 
(ii) by striking ‘‘and’’ at the end; 
(D) in subparagraph (D)— 
(i) by striking ‘‘as applicable and 
practicable, shall’’ and inserting ‘‘in the 
case of a one-stop delivery system that is 
making each of the programs, services, and 
activities described in paragraph (1) acces-
sible at not less than 1 physical center, as 
described in subparagraph (A)(i)(II), shall, 
as applicable and practicable,’’; and 
(ii) by striking the period at the end 
and inserting ‘‘, and local areas that share 
at least 1 common border may coordinate 
in making such programs, services, and ac-
tivities accessible through electronic means 
through such a one-stop delivery system; 
and’’; and 
(E) by inserting after subparagraph (D) 
the following: 
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