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ment to operate such center and to select an-
other entity as a career center in accordance
with the requirements of section 118.
(5) APPEAL.—A substate grantee or career cen-
ter that is the subject of a redesignation under para-
graph (4) may, within thirty days after receiving no-
tice thereof, appeal to the Secretary of Labor to re-
scind such action. The Secretary of Labor shall issue
a decision on the appeal within thirty days of its re-
ceipt.
(d) INCENTIVE GRANTS.—From the funds reserved
pursuant to section 101(c)(1), the Governor of each State
shall award incentive grants to the substate grantees and
career centers in the State exceeding performance stand-
ards established under this section. Such grants shall be
used by the substate grantees and career centers to en-
hance or expand the services provided under this title.
SEC. 153. CUSTOMER FEEDBACK.
(a) METHODS.—Each substate grantee shall estab-
lish methods for obtaining, on a regular basis, information
from eligible individuals and employers who have received
services through a career center regarding the effective-
ness and quality of such services and of service providers.
Such methods may include the use of surveys, interviews,
and focus groups.
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(b) ANALYSIS AND DISSEMINATION.—Each substate
grantee shall analyze the information obtained pursuant
to subsection (a) on a regular basis and provide a sum-
mary of such information accompanied by such analysis
to the career center for use in improving the administra-
tion of the programs under this title and assisting partici-
pants in choosing from among eligible service providers.
SEC. 154. ELIGIBILITY REQUIREMENTS FOR PROVIDERS OF
EDUCATION AND TRAINING SERVICES.
(a) ELIGIBILITY REQUIREMENTS.—A provider of
education and training services shall be eligible to receive
funds under this title if such provider—
(1) is either—
(A) eligible to participate in title IV of the
Higher Education Act of 1965, or
(B) determined to be eligible under the
procedures described in subsection (b); and
(2) provides the performance-based information
required pursuant to subsection (c).
(b) ALTERNATIVE ELIGIBILITY PROCEDURE.—(1)
The Governor shall establish an alternative eligibility pro-
cedure for providers of education and training services in
such State desiring to receive funds under this title but
that are not eligible to participate in title IV of the Higher
Education Act of 1965. Such procedure shall establish
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minimum acceptable levels of performance for such provid-
ers based on factors and guidelines developed by the Sec-
retary, after consultation with the Secretary of Education.
Such factors shall be comparable in rigor and scope to
those provisions of part H of such title of such Act that
are used to determine an institution of higher education’s
eligibility to participate in programs under such title as
are appropriate to the type of provider seeking eligibility
under this subsection and the nature of the education and
training services to be provided.
(2) Notwithstanding paragraph (1), if the participa-
tion of an institution of higher education in any of the
programs under such title of such Act is terminated, such
institution shall not be eligible to receive funds under this
Act for a period of two years.
(c) PERFORMANCE-BASED INFORMATION.—
(1) CONTENTS.—The Secretary, in consultation
with the Secretary of Education, shall identify per-
formance-based information that is to be submitted
by providers of services desiring to be eligible under
this section. Such information may include informa-
tion relating to—
(A) the percentage of students completing
the programs conducted by the provider,
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(B) the rates of licensure of graduates of
the programs conducted by the provider,
(C) the percentage of graduates of the pro-
grams meeting skill standards and certification
requirements endorsed by the National Skill
Standards Board established under the Goals
2000: Educate America Act,
(D) the rates of placement and retention in
employment, and earnings of the graduates of
the programs conducted by the provider,
(E) the percentage of students who ob-
tained employment in an occupation related to
the program conducted by the provider, and
(F) the warranties or guarantees provided
by such provider relating to the skill levels or
employment to be attained by students.
(2) ADDITIONS.—The Governor may, pursuant
to the approval of the Secretary, prescribe additional
performance-based information that shall be submit-
ted by providers pursuant to this subsection.
(d) ADMINISTRATION.—
(1) STATE AGENCY.—The Governor shall des-
ignate a State agency to collect, verify, and dissemi-
nate the performance-based information submitted
pursuant to paragraph (1).
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(2) APPLICATION.—A provider of education and
training services that desires to be eligible to receive
funds under this title shall submit the information
required under subsection (b) to the State agency
designated under paragraph (1) at such time and in
such form as such State agency may require.
(3) LIST OF ELIGIBLE PROVIDERS.—The State
agency shall compile a list of eligible providers, ac-
companied by the performance-based information
submitted, and disseminate such list and informa-
tion to the substate entities and career centers with-
in the State.
(4) ACCURACY OF INFORMATION.—
(A) IN GENERAL.—If the State agency de-
termines that information concerning a provider
is inaccurate, such provider shall be disqualified
from receiving funds under this title for a pe-
riod of two years, unless such provider can
demonstrate to the satisfaction of the Governor
or his or her designee, that the information was
provided in good faith.
(B) APPEAL.—The Governor shall estab-
lish a procedure for a service provider to appeal
a determination by a State agency that results
in a disqualification under subparagraph (A).
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Such procedure shall provide an opportunity for
a hearing and prescribe appropriate time limits
to ensure prompt resolution of the appeal.
(5) ASSISTANCE
IN
DEVELOPING
INFORMA-
TION.—The State agency established pursuant to
paragraph (1) may provide technical assistance to
education and training providers in developing the
information required under subsection (b). Such as-
sistance may include facilitating the utilization of
State administrative records, such as unemployment
compensation wage records, and other appropriate
coordination activities.
(6) CONSULTATION.—The Secretary shall con-
sult with the Secretary of Education regarding the
eligibility of institutions of higher education or other
providers of education and training to participate in
programs under this Act or under title IV of the
Higher Education Act of 1965.
(e) ON-THE-JOB TRAINING EXCEPTION.—
(1) IN
GENERAL.—Providers of on-the-job
training shall not be subject to the requirements of
subsections (a), (b), and (c).
(2) COLLECTION AND DISSEMINATION OF IN-
FORMATION.—The substate grantee shall collect
such performance-based information from on-the-job
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training providers as the Secretary may require, and
shall disseminate such information to the career cen-
ters.
PART D—GENERAL REQUIREMENTS
SEC. 161. GENERAL REQUIREMENTS.
Except as otherwise provided, the following condi-
tions are applicable to all programs under this title:
(a) PROHIBITION ON INDUCING RELOCATION OF
ESTABLISHMENTS.—
(1) No funds provided under this title shall
be used or proposed for use to encourage or in-
duce the relocation, of an establishment or part
thereof, that results in a loss of employment for
any employee of such establishment at the
original location.
(2) No funds provided under this title shall
be used for customized or skill training, on-the-
job training, or company specific assessments of
job applicants or employees, for any establish-
ment or part thereof, that has relocated, until
120 days after the date on which such estab-
lishment commences operations at the new loca-
tion, if the relocation of such establishment or
part thereof, results in a loss of employment for
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any employee of such establishment at the
original location.
(3) If a violation of paragraph (1) or (2)
is alleged, the Secretary shall conduct an inves-
tigation to determine whether a violation has
occurred.
(4) If the Secretary determines that a vio-
lation of paragraph (1) or (2) has occurred, the
Secretary shall require the State, substate area,
or substate grantee that has violated paragraph
(1) or (2) to—
(A) repay to the United States an
amount equal to the amount expended in
violation of paragraph (1) or (2), in ac-
cordance with subsections (d) or (e) of sec-
tion 174; and
(B) pay an additional amount equal to
the amount required to be repaid under
subparagraph (A), unless the State or sub-
state grantee demonstrates to the Sec-
retary that it neither knew nor reasonably
could have known (after an inquiry under-
taken with due diligence) provided funds in
violation of paragraph (1) or (2).
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(5) Amounts received under paragraph
(4)(B) shall be deposited in a special account in
the Treasury for use by the Secretary for carry-
ing out this title.
(b) SPECIAL PROGRAMS.—Efforts shall be made
to develop programs under this title which contrib-
ute to occupational development, upward mobility,
development of new careers, and overcoming sex-
stereotyping in occupations traditional for the other
sex.
(c) JOINT SUBSTATE AGREEMENTS.—Any sub-
state grantee may enter into an agreement or con-
tract with another substate grantee to pay or share
the cost of educating, training, or placing individuals
participating in programs assisted under this Act,
including the provision of supportive services.
(d) ON-THE-JOB TRAINING.—(1) Payments to
employers for on-the-job training under this title
shall not, during the period of such training, average
more than 50 percent of the wages paid by the em-
ployer to such participants, and payments in such
amount shall be deemed to be in compensation for
the extraordinary costs associated with training par-
ticipants under this title and in compensation for the
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costs associated with the lower productivity of such
participants.
(2) On-the-job training authorized under this
title for a participant shall be limited in duration to
a period not in excess of that generally required for
acquisition of skills needed for the position within a
particular occupation, but in no event shall exceed 6
months, unless the total number of hours of such
training is less than 500 hours. In determining the
period generally required for acquisition of the skills,
consideration shall be given to recognized reference
material (such as the Dictionary of Occupational Ti-
tles), the content of the training of the participant,
the prior work experience of the participant, and the
reemployment plan of the participant.
(3)(A) 
Each 
on-the-job 
training 
contract
shall—
(i) specify the types and duration of on-
the-job training and the other services to be
provided in sufficient detail to allow for a fair
analysis of the reasonableness of proposed
costs; and
(ii) comply with the applicable require-
ments of section 174.
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(B) Each on-the-job training contract that is
not directly contracted by a substate grantee with an
employer (but instead is contracted through an
intermediary brokering contractor) shall, in addition
to meeting the requirements of subparagraph (A),
specify the outreach, recruitment, participant train-
ing, counseling, placement, monitoring, followup,
and other services to be provided directly by the
brokering contractor within its own organization, the
services to be provided by the employers conducting
the on-the-job training, and the services to be pro-
vided, with or without cost, by other agencies and
subcontractors.
(C) If a brokering contractor enters into a con-
tract with a subcontractor to provide training or
other services, the brokering contractor shall ensure,
through on-site monitoring, compliance with the sub-
contract terms prior to making payment to the sub-
contractor.
(4) In accordance with regulations issued by the
Secretary, on-the-job training contracts under this
title shall not be entered into with employers who
have received payments under previous contracts
and have exhibited a pattern of failing to provide on-
the-job training participants with continued long-
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term employment as regular employees with wages
and employment benefits (including health benefits)
and working conditions at the same level and to the
same extent as other employees working a similar
length of time and doing the same type of work.
(e) PROHIBITION ON FEES.—No person or or-
ganization may charge an individual a fee for the
placement or referral of such individual in or to a
training program under this title.
(f) PROHIBITION
ON
SUBSIDIZED
EMPLOY-
MENT.—No funds may be provided under this Act
for any subsidized employment with any private for-
profit employer.
(g) RETENTION OF PROGRAM INCOME.—
(1) income under any program under this
title administered by a public or private non-
profit entity may be retained by such entity
only if used to continue to carry out the pro-
gram.
(2) Income subject to the requirements of
paragraph (1) shall include—
(A) receipts from goods or services
(including conferences) provided as a result
of activities funded under the title;
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is hereby given to such States to enter into such
compacts and agreements to facilitate such compli-
ance, subject to the approval of the Secretary.
(j) PUBLIC
SERVICE
EMPLOYMENT
PROHIBI-
TION.—Except as provided in section 132, no funds
available under this title may be used for public
service employment.
(k) PROHIBITION ON EMPLOYMENT GENERAT-
ING AND RELATED ACTIVITIES.—Except for funds
available to the Secretary to carry out section 132,
no funds available under this Act shall be used for
employment generating activities, economic develop-
ment activities, investment in revolving loan funds,
capitalization of businesses, investment in contract
bidding resource centers, and similar activities, or
for foreign travel.
(l) PROPERTY.—The Federal requirements gov-
erning the title, use, and disposition of real property,
equipment, and supplies purchased with funds pro-
vided under this Act shall be the Federal require-
ments generally applicable to Federal grants to
States and local governments.
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SEC. 162. BENEFITS.
(a) IN GENERAL.—Except as otherwise provided in
this title, the following provisions shall apply to all activi-
ties financed under this title:
(1) A participant under this title shall receive
no payments for training activities in which the par-
ticipant fails to participate without good cause.
(2) Individuals in on-the-job training shall be
compensated by the employer at the same rates, in-
cluding periodic increases, as similarly situated em-
ployees or trainees and in accordance with applicable
law, but in no event less than the higher of the rate
specified in section 6(a)(1) of the Fair Labor Stand-
ards Act of 1938 or the applicable State or local
minimum wage law.
(3) Individuals employed in activities authorized
under this title shall be paid wages which shall not
be less than the highest of (A) the minimum wage
under section 6(a)(1) of the Fair Labor Standards
Act of 1938, (B) the minimum wage under the ap-
plicable State or local minimum wage law, or (C) the
prevailing rates of pay for individuals employed in
similar occupations by the same employer.
(4) References in paragraphs (2) and (3) to section
6(a)(1) of the Fair Labor Standards Act of 1938 (29
U.S.C. 206(a)(1)—
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(A) shall be deemed to be references to
section 6(c) of that Act for individuals in the
Commonwealth of Puerto Rico;
(B) shall be deemed to be references to
6(a)(3) of that Act for individuals in American
Samoa; and
(C) shall not be applicable for individuals
in other territorial jurisdictions in which section
6 of the Fair Labor Standards Act of 1938
does not apply.
(b) INCOME DISREGARD.—Allowances, earnings and
payments to individuals participating in programs under
this title, except for payments under section 119(e), shall
not be considered as income for the purposes of determin-
ing eligibility for and the amount of income transfer and
in-kind aid furnished under any Federal or federally as-
sisted program based on need, other than as provided
under the Social Security Act.
SEC. 163. LABOR STANDARDS.
(a) IN GENERAL.—
(1) Conditions of employment and training shall
be appropriate and reasonable in light of such fac-
tors as the type of work, geographical region, and
proficiency of the participant.
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(2) Health and safety standards established
under State and Federal law, otherwise applicable to
working conditions of employees, shall be equally ap-
plicable to working conditions of participants. With
respect to any participant in a program conducted
under this title who is engaged in activities which
are not covered by health and safety standards
under the Occupational Safety and Health Act of
1970, the Secretary shall prescribe, by regulation,
such standards as may be necessary to protect the
health and safety of such participants.
(3) To the extent that a State workers’ com-
pensation law is applicable, workers’ compensation
benefits in accordance with such law shall be avail-
able with respect to injuries suffered by participants.
To the extent that such law is not applicable, each
recipient of funds under this Act shall secure insur-
ance coverage for injuries suffered by such partici-
pants, in accordance with regulations prescribed by
the Secretary.
(4) All individuals employed in subsidized jobs
shall be provided benefits and working conditions at
the same level and to the same extent as other em-
ployees working a similar length of time and doing
the same type of work.
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(5) No funds available under this title may be
used for contributions on behalf of any participant
to retirement systems or plans.
(b) DISPLACEMENT.—
(1) No currently employed worker shall be dis-
placed by any participant (including partial displace-
ment such as a reduction in the hours of non-
overtime work, wages, or employment benefits).
(2) No program under this title shall impair—
(A) existing contracts for services; or
(B) existing collective bargaining agree-
ments, unless the employer and the labor orga-
nization concur in writing with respect to any
elements of the proposed activities which affect
such agreement, or either such party fails to re-
spond to written notification requesting its con-
currence within 30 days of receipt thereof.
(3) No participant shall be employed or job
opening filled (A) when any other individual is on
layoff from the same or any substantially equivalent
job, or (B) when the employer has terminated the
employment of any regular employee or otherwise re-
duced its workforce with the intention of filling the
vacancy so created by hiring a participant whose
wages are subsidized under this title.
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(4) No jobs shall be created in a promotional
line that will infringe in any way upon the pro-
motional opportunities of currently employed individ-
uals.
(c) ORGANIZED LABOR.—
(1) Each recipient of funds under this title shall
provide to the Secretary assurances that none of
such funds will be used to assist, promote, or deter
union organizing.
(2) Any program conducted with funds made
available under this title which will provide services
to members of a labor organization will be estab-
lished only after full consultation with such organi-
zation.
(3) Where a labor organization represents a
substantial number of employees who are engaged in
similar work or training in the same area as that
proposed to be funded under this title, an oppor-
tunity shall be provided for such organization to
submit comments with respect to such proposal.
(d) PREVAILING WAGES.—All laborers and mechan-
ics employed by contractors or subcontractors in any con-
struction, alteration, or repair, including painting and
decorating, of project, buildings, and works which are fed-
erally assisted under this title shall be paid wages at rates
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not less than those prevailing or similar construction in
the locality as determined by the Secretary in accordance
with the Act of March 3, 1921 (40 U.S.C. 276a–276a–
5), commonly known as the Davis-Bacon Act. The Sec-
retary shall have, with respect to such labor standards,
the authority and functions set forth in Reorganization
Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 1267)
and section 2 of the Act of June 1, 1934, as amended
(48 Stat. 948, as amended; 40 U.S.C. 276(c)). The provi-
sions of this subsection shall not apply to a bona fide par-
ticipant in a training program under this title. The provi-
sions of section 177(a)(4) shall apply to such trainees.
SEC. 164. GRIEVANCE PROCEDURE
(a) IN GENERAL.—Each substate grantee, career
center, contractor, and grantee under this Act shall estab-
lish and maintain a grievance procedure for grievances or
complaints about its programs and activities from partici-
pants, subgrantees, subcontractors, and other interested
persons. Hearings on any grievance shall be conducted
within 30 days of filing of a grievance and decisions shall
be made not later than 60 days after the filing of a griev-
ance. Except for complaints alleging fraud or criminal ac-
tivity, complaints shall be made within one year of the al-
leged occurrence.
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(b) GRIEVANCE PROCEDURE FOR EMPLOYEES OF
PARTICIPANTS.—Each recipient of financial assistance
under this title which is an employer of participants under
this title shall continue to operate or establish and main-
tain a grievance procedure relating to the terms and condi-
tions of employment.
(c) EXHAUSTION
OF GRIEVANCE PROCEDURE.—
Upon exhaustion of the recipient’s grievance procedure
without decision, or where the Secretary has reason to be-
lieve that the recipient is failing to comply with the re-
quirements of this title, the Secretary shall investigate the
allegation or belief and determine within 120 days after
receiving the complaint whether such allegation or com-
plaint is true.
(d) INVESTIGATION BY SECRETARY.—
(1) If a person alleges a violation of section 163
and such person exhausts the recipient’s grievance
procedure or the 60-day time period described in
subsection (a) has elapsed without a decision, either
party to such procedure may submit the grievance to
the Secretary. The Secretary shall investigate the al-
legations contained in the grievance and make a de-
termination as to whether a violation of section 163
has occurred.
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(2) If the results of the investigation conducted
pursuant to paragraph (1) indicate that a modifica-
tion or reversal of the decision issued pursuant to
the recipient’s grievance procedure is warranted, or
the 60-day time period described in subsection (a)
has elapsed without a decision, the Secretary may
modify or reverse the decision, or issue a decision if
no decision has been issued, as the case may be,
after an opportunity for a hearing in accordance
with the procedures under section 176.
(3) If the Secretary determines that the deci-
sion issued pursuant to the recipient’s grievance pro-
cedure is appropriate, the determination shall be-
come the final decision of the Secretary.
(e) BINDING GRIEVANCE PROCEDURE.—
(1) A person alleging a violation of section 163
may, as an alternative to the procedures described in
this section, submit the grievance involving such vio-
lation to a binding grievance procedure if a collective
bargaining agreement covering the parties to the
grievance so provides.
(2) The remedies available under paragraph (1)
shall be limited to the remedies available under sub-
section (f)(1)(C) and subsection (f)(2).
(f) REMEDIES AVAILABLE TO GRIEVANTS.—
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(1) Except as provided in paragraph (2), rem-
edies available to grievants under this section for
violations of section 163 shall be limited to—
(A) suspension or termination of payments
under this Act;
(B) prohibition of placement of a partici-
pant, for an appropriate period of time, in a
program under this Act with an employer that
has violated section 163, as determined under
subsection (d) or (e); and
(C) appropriate equitable relief (other than
back pay).
(2) In addition to the remedies available under
paragraph (1), remedies available under this section
for violations of subsection (a)(4), paragraphs (1)
and (3) of subsection (b), and subsection (d) of sec-
tion 163 may include—
(A) reinstatement of the grievant to the
position held by such grievant prior to displace-
ment;
(B) payment of lost wages and benefits;
and
(C) reestablishment of other relevant
terms, conditions, and privileges of employment.
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(g) REMEDIES UNDER OTHER LAWS.—Nothing in
subsection (f) shall be construed to prohibit a grievant
from pursuing a remedy authorized under another Fed-
eral, State, or local law for a violation of section 163.
PART E—FISCAL ADMINISTRATIVE PROVISIONS
SEC. 171. PROGRAM YEAR.
(a) OBLIGATION OF FUNDS.—Beginning with fiscal
year 1995 and thereafter, appropriations for any fiscal
year for programs and activities under this title shall be
available for obligation only on the basis of a program
year. The program year shall begin on July 1 in the fiscal
year for which the appropriation is made.
(b) EXPENDITURE OF OBLIGATED FUNDS.—Funds
obligated for any program year may be expended by each
recipient during that program year and the two succeeding
program years.
SEC. 172. PROMPT ALLOCATION OF FUNDS.
(a) PUBLICATION OF FORMULA ALLOCATIONS AND
ALLOTMENTS.—Whenever the Secretary allots and allo-
cates funds required to be allotted or allocated by formula
under this title, the Secretary shall publish in a timely
fashion in the Federal Register the proposed amount to
be distributed to each recipient.
(b) PUBLICATION OF DISCRETIONARY ALLOCATION
FORMULA.—Whenever the Secretary utilizes a formula to
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allot or allocate funds made available for distribution at
the Secretary’s discretion under this Act, the Secretary
shall, not later than 30 days prior to such allotment or
allocation, publish such formula in the Federal Register
for comments along with the rationale for the formula and
the proposed amounts to be distributed to each State and
area. After consideration of any comments received, the
Secretary shall publish final allotments and allocations in
the Federal Register.
SEC. 173. MONITORING.
(a) IN GENERAL.—The Secretary is authorized to
monitor all recipients of financial assistance under this
title to determine whether they are complying with the
provisions of this title and the regulations issued under
this title.
(b) INVESTIGATIONS.—The Secretary may inves-
tigate any matter the Secretary deems necessary to deter-
mine compliance with this title and regulations issued
under this title. The investigations authorized by this sub-
section may include examining records (including making
certified copies thereof), questioning employees, and enter-
ing any premises or onto any site in which any part of
a program of a recipient is conducted or in which any of
the records of the recipient are kept.
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(c) WITNESSES AND DOCUMENTS.—For the purpose
of any investigation or hearing under this Act, the provi-
sions of section 9 of the Federal Trade Commission Act
(15 U.S.C. 49) (relating to the attendance of witnesses
and the production of books, papers, and documents) are
made applicable to the Secretary.
SEC. 174. FISCAL CONTROLS; SANCTIONS.
(a) IN GENERAL.—
(1) Each State shall establish such fiscal con-
trol and fund accounting procedures as may be nec-
essary to assure the proper disbursal of, and ac-
counting for, Federal funds paid to the recipient
under this title. Such procedures shall ensure that
all financial transactions are conducted and records
maintained in accordance with generally accepted ac-
counting principles applicable in each State.
(2) The Secretary shall prescribe regulations es-
tablishing uniform cost principles substantially
equivalent to such principles generally applicable to
recipients of Federal grants funds. At a minimum,
such standard shall provide that, to be allowable,
costs must—
(A) be necessary and reasonable for proper
and efficient administration of the program
under this title;
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(B) be allocable to the program under this
title; and
(C) not be a general expense required to
carry out the overall responsibilities of State or
local governments except as specifically pro-
vided by this title.
(3) The governor, in accordance with minimum
requirements established by the Secretary in regula-
tions, shall prescribe and implement procurement
standards to ensure fiscal accountability and prevent
fraud and abuse in programs administered under
this title. The Secretary, in establishing such mini-
mum requirements, shall consult with the Inspector
General of the Department of Labor and take into
consideration relevant aspects of the circulars issued
by the Director of the Office of Management and
Budget. Such minimum requirements shall include
provisions to ensure that for States, substate areas,
and career centers—
(A) procurements shall be conducted in a
manner providing full and open competition;
(B) the use of sole source procurements
shall be minimized to the extent practicable, but
in every case shall be justified;
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(C) procurements shall include an appro-
priate analysis of the reasonableness of costs
and prices;
(D) procurements shall not provide excess
program income (for nonprofit and government
entities) or excess profit (for private for-profit
entities), and that appropriate factors shall be
utilized in determining whether such income or
profit is excessive, such as—
(i) the complexity of the work to be
performed;
(ii) the risk borne by the contractor;
and
(iii) market conditions in the sur-
rounding geographical area;
(E) procurements shall clearly specify de-
liverable and the basis for payment;
(F) written procedures shall be established
for procurement transactions;
(G) no grantee, contractor, subgrantee, or
subcontractor shall engage in any conflict of in-
terest, actual or apparent, in the selection,
award, or administration of a contract or grant
under this title;
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(H) all grantees and subgrantees shall con-
duct oversight to ensure compliance with pro-
curement standards; and
(I) procurement transactions between units
of State or local governments, shall be con-
ducted on a cost reimbursable basis.
(4) The Governor shall annually conduct on-site
monitoring of each substate grantee within the State
to ensure compliance with the procurement stand-
ards established pursuant to paragraph (3).
(5) If the Governor determines that a substate
grantee area is not in compliance with the procure-
ment standards established pursuant to paragraph
(3), the Governor shall—
(A) require corrective action to secure
prompt compliance; and
(B) impose the sanctions provided under
subsection (b) in the event of failure to take the
required corrective action.
(6) The Governor shall biennially certify to the
Secretary that—
(A) the State has implemented the pro-
curement standards established under para-
graph (3);
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(B) the State has monitored substate
grantees to ensure compliance with the procure-
ment standards as required under paragraph
(4); and
(C) the State has taken appropriate action
to secure compliance pursuant to paragraph
(5).
(7) If the Secretary determines that the Gov-
ernor has not fulfilled the requirements of this sub-
section, the Secretary shall—
(A) require corrective action to secure
prompt compliance; and
(B) impose the sanctions provided under
subsection (f) in the event of failure of the Gov-
ernor to take the required corrective action.
(b) SUBSTANTIAL VIOLATIONS.—
(1) If, as a result of financial and compliance
audits or otherwise, the Governor determines that
there is a substantial violation of a specific provision
of this title or the regulations under this title, and
corrective action has not been taken, the Governor
shall impose a reorganization plan, which may in-
clude—
(A) redesignating the substate grantee;
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(B) prohibiting the use of designated serv-
ice providers;
(C) merging the substate area into 1 or
more other existing substate areas; or
(D) other such changes as the Secretary or
Governor determines necessary to secure com-
pliance.
(2)(A) The actions taken by the Governor pur-
suant to paragraph (1)(A) may be appealed to the
Secretary and shall not become effective until—
(i) the time for appeal has expired; or
(ii) the Secretary has issued a decision.
(B) The actions taken by the Governor pursu-
ant to paragraph (1)(B) may be appealed to the
Secretary, who shall make a final decision not later
than 60 days of the receipt of the appeal.
(3) If the Governor fails to promptly take the
actions required under paragraph (1), the Secretary
shall take such actions.
(c) REPAYMENT OF FUNDS.—Every recipient shall
repay to the United States amounts found not to have
been expended in accordance with this title. The Secretary
may offset such amounts against any other amount to
which the recipient is or may be entitled under this Act
unless the Secretary determines that such recipient should
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be held liable pursuant to subsection (d). No such action
shall be taken except after notice and opportunity for a
hearing have been given to the recipient.
(d) LIABILITY FOR REPAYMENT OF FUNDS.—
(1) Each recipient shall be liable to repay such
amounts, from funds other than funds received
under this title, upon a determination that the
misexpenditures of funds was due to willful dis-
regard of the requirements of this title, gross neg-
ligence, or failure to observe accepted standards of
administration. No such finding shall be made ex-
cept after notice and opportunity for a fair hearing.
(2) In determining whether to impose any sanc-
tion authorized by this section against a recipient for
violations by a subgrantee of such recipient under
this title or the regulations under this title, the Sec-
retary shall first determine whether such recipient
has adequately demonstrated that it has—
(A) established and adhered to an appro-
priate system for the award and monitoring of
contracts with subgrantees which contains ac-
ceptable standards for ensuring accountability;
(B) entered into a written contract with
such subgrantee which established clear goals
and obligations in unambiguous terms;
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(C) acted with due diligence to monitor the
implementation of the subgrantee contract, in-
cluding the carrying out of the appropriate
monitoring activities (including audits) at rea-
sonable intervals; and
(D) taken prompt and appropriate correc-
tive action upon becoming aware of any evi-
dence of a violation of this Act or the regula-
tions under this Act by such subgrantee.
(3) If the Secretary determines that the recipi-
ent has demonstrated substantial compliance with
the requirements of paragraph (2), the Secretary
may waive the imposition of sanctions authorized by
this section upon such recipient. The Secretary is
authorized to impose any sanction consistent with
the provisions of this title and any applicable Fed-
eral or State law directly against any subgrantee for
violation of this Act or the regulations under this
Act.
(e) EMERGENCY TERMINATION OF FINANCIAL AS-
SISTANCE.—In emergency situations, if the Secretary de-
termines it is necessary to protect the integrity of the
funds or ensure the proper operation of the program, the
Secretary may immediately terminate or suspend financial
assistance, in whole or in part, if the recipient is given
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prompt notice and the opportunity for a subsequent hear-
ing within 30 days after such termination or suspension.
The Secretary shall not delegate any of the functions spec-
ified in this subsection, other than to an officer whose ap-
pointment was required to be made by and with the advice
and consent of the Senate.
(f) CORRECTIVE MEASURES.—If the Secretary deter-
mines that any recipient under this title has discharged
or in any other manner discriminated against a partici-
pant or against any individual in connection with the ad-
ministration of the program involved, or against any indi-
vidual because such individual has filed any complaint or
instituted or caused to be instituted any proceeding under
or related to this title, or has testified or is about to testify
in any such proceeding or investigation under or related
to this title, or otherwise unlawfully denied to any individ-
ual a benefit under the provisions of this title, or the Sec-
retary’s regulations, the Secretary shall, within thirty
days, take such action or order such corrective measures,
as necessary, with respect to the recipient or the aggrieved
individual, or both.
(g) REMEDIES
NOT
EXCLUSIVE.—The remedies
under this section shall not be construed to be exclusive
remedies.
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SEC. 175. REPORTS, RECORDKEEPING, AND INVESTIGA-
TIONS.
(a) RECORDS.—
(1) Recipients shall keep records that are suffi-
cient to permit the preparation of reports required
by this title and to permit the tracing of funds to
a level of expenditure adequate to insure that the
funds have not been spent unlawfully.
(2) Every recipient shall maintain such records
and submit such reports, in such form and contain-
ing such information, as the Secretary requires re-
garding the performance of its programs. Such
records and reports shall be submitted to the Sec-
retary but shall not be required to be submitted
more than once each quarter unless specifically re-
quested by the Congress or a committee thereof.
(3) In order to allow for the preparation of na-
tional estimates necessary to meet the requirements
of subsection (c), recipients shall maintain standard-
ized records for all individual participants and pro-
vide to the Secretary a sufficient number of such
records to provide for an adequate analysis.
(4)(A) Except as provided in subparagraph (B),
records maintained by recipients pursuant to this
subsection shall be made available to the public upon
request.
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(B) Subparagraph (A) shall not apply to—
(i) information, the disclosure of which
would constitute a clearly unwarranted invasion
of personal privacy; and
(ii) trade secrets, or commercial or finan-
cial information, obtained from a person and
privileged or confidential.
(C) Recipients may charge fees sufficient to re-
cover costs applicable to the processing of requests
for records under subparagraph (A).
(b) INVESTIGATIONS.—
(1)(A) In order to evaluate compliance with the
provisions of this title, the Secretary shall conduct,
in several States, in each fiscal year investigations of
the use of funds received by recipients under this
title.
(B) In order to insure compliance with the pro-
visions of this title, the Comptroller General of the
United States may conduct investigations of the use
of funds received under this title by any recipient.
(2) In conducting any investigation under this
title, the Secretary or the Comptroller General of the
United States may not request the compilation of
any new information not readily available to such re-
cipient.
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(3)(A) In carrying out any audit under this title
(other than any initial audit survey or any audit in-
vestigating possible criminal or fraudulent conduct),
either directly or through grant or contract, the Sec-
retary, the Inspector General, or the Comptroller
General shall furnish to the State, substate grantee,
recipient, or other entity to be audited, advance noti-
fication of the overall objectives and purposes of the
audit, and any extensive recordkeeping or data re-
quirements to be met, not fewer than 14 days (or as
soon as practicable), prior to the commencement of
the audit.
(B) If the scope, objectives, or purposes of the
audit change substantially during the course of the
audit, the entity being audited shall be notified of
the change as soon as practicable.
(C) The reports on the results of such audits
shall cite the law, regulation, policy, or other criteria
applicable to any finding.
(D) Nothing contained in this title shall be con-
strued so as to be inconsistent with the Inspector
General Act of 1978 (5 U.S.C. App.) or government
auditing standards issued by the Comptroller Gen-
eral.
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(c) RESPONSIBILITIES OF FUND RECIPIENTS.—Each
State, each substate grantee, each career center, and each
recipient (other than a subrecipient, grantee or contractor
of a recipient) receiving funds under this title shall—
(1) make readily accessible reports concerning
its operations and expenditures as shall be pre-
scribed by the Secretary;
(2) prescribe and maintain comparable manage-
ment information systems, in accordance with guide-
lines that shall be prescribed by the Secretary, de-
signed to facilitate the uniform compilation, cross
tabulation, and analysis of programmatic, partici-
pant, and financial data, on statewide and substate
area bases, necessary for reporting, monitoring, and
evaluating purposes, including data necessary to
comply with section 177; and
(3) monitor the performance of service provid-
ers in complying with the terms of grants, contracts,
or other agreements made pursuant to this Act.
(d) RETENTION OF RECORDS.—The Governor shall
ensure that requirements are established for retention of
all records pertinent to all grants awarded, and contracts
and agreements entered into, under this title, including
financial, statistical, property and participant records and
supporting documentation. For funds allotted to a State
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for any program year, records shall be retained for 2 years
following the date on which the annual expenditure report
containing the final expenditures charged to such program
year’s allotment is submitted to the Secretary. Records for
nonexpendable property shall be retained for a period of
3 years after final disposition of the property.
(e) FINANCIAL RECORDS.—Each State, substate
grantee, and career center shall maintain records with re-
spect to programs under this title that identify—
(1) any program income or profits earned, in-
cluding 
such 
income 
or 
profits 
earned 
by
subrecipients; and
(2) any costs incurred (such as stand-in costs)
that are otherwise allowable except for funding limi-
tations.
SEC. 176. ADMINISTRATIVE ADJUDICATION.
(a) IN GENERAL.—Whenever any applicant for finan-
cial assistance under this title is dissatisfied because the
Secretary has made a determination not to award financial
assistance in whole or in part to such applicant, the appli-
cant may request a hearing before an administrative law
judge of the Department of Labor. A similar hearing may
also be requested by any recipient upon whom a corrective
action or a sanction has been imposed by the Secretary.
Except to the extent provided for in section 161(b), sub-
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sections (d) and (e) of section 164, or section 177, all
other disputes arising under this title shall be adjudicated
under grievance procedures established by the recipient or
under applicable law other than this title.
(b) FINAL DECISIONS.—The decision of the adminis-
trative law judge shall constitute final action by the Sec-
retary unless, within 20 days after receipt of the decision
of the administrative law judge, a party dissatisfied with
the decision or any part thereof has filed exceptions with
the Secretary specifically identifying the procedure, fact,
law, or policy to which exception is taken. Any exception
not specifically urged shall be deemed to have been waived.
Thereafter the decision of the administrative law judge
shall become the final decision of the Secretary unless the
Secretary, within 30 days of such filing, has notified the
parties that the case has been accepted for review.
(c) DEADLINE FOR REVIEW.—Any case accepted for
review by the Secretary shall be decided within one hun-
dred and eighty days of such acceptance. If not so decided,
the decision of the administrative law judge shall become
the final decision of the Secretary.
(d) APPLICABLE PROVISIONS.—The provisions of
section 178 shall apply to any final action of the Secretary
under this section.
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SEC. 177. NONDISCRIMINATION.
(a) IN GENERAL.—
(1) For the purpose of applying the prohibitions
against discrimination on the basis of age under the
Age Discrimination Act of 1975, on the basis of dis-
ability under section 504 of the Rehabilitation Act,
on the basis of sex under title IX of the Education
Amendments of 1972, or on the basis of race, color,
or national origin under title VI of the Civil Rights
Act of 1964, programs and activities funded or oth-
erwise financially assisted in whole or in part under
this title are considered to be programs and activi-
ties receiving Federal financial assistance.
(2) No individual shall be excluded from partici-
pation in, denied the benefits of, subjected to dis-
crimination under, or denied employment in the ad-
ministration of or in connection with any such pro-
gram because of race, color, religion, sex, national
origin, age, political affiliation or belief, or status as
a qualified individual with disabilities.
(3) Participants shall not be employed on the
construction, operation, or maintenance of so much
of any facility as is used or to be used for sectarian
instruction or as a place for religious worship.
(4) With respect to terms and conditions affect-
ing, or rights provided to, individuals who are par-
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ticipants in activities supported by funds provided
under this title, such individuals shall not be dis-
criminated against solely because of their status as
such participants.
(5) Participation in programs and activities fi-
nancially assisted in whole or in part under this title
shall be open to citizens and nationals of the United
States, lawfully admitted permanent resident aliens,
lawfully admitted refugees and parolees, and other
individuals authorized by the Attorney General to
work in the United States.
(b) FAILURE TO COMPLY.—Whenever the Secretary
finds that a State or other recipient has failed to comply
with a provision of law referred to in subsection (a)(1),
with paragraph (2), (3), (4), or (5) of subsection (a), or
with an applicable regulation prescribed to carry out such
paragraphs, the Secretary shall notify such State or recipi-
ent and shall request it to comply. If within a reasonable
period of time, not to exceed sixty days, the State or recip-
ient fails or refuses to comply, the Secretary may—
(1) refer the matter to the Attorney General
with a recommendation that an appropriate civil ac-
tion be instituted;
(2) exercise the powers and functions provided
by title VI of the Civil Rights Act of 1964, the Age
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Discrimination Act of 1975, or section 504 of the
Rehabilitation Act, as may be applicable; or
(3) take such other action as may be provided
by law.
(c) REFERRAL TO ATTORNEY GENERAL.—When a
matter is referred to the Attorney General pursuant to
subsection (b)(1), or whenever the Attorney General has
reason to believe that a State or other recipient is engaged
in a pattern or practice in violation of a provision of law
referred to in subsection (a)(1) or in violation of para-
graph (2), (3), (4), or (5) of subsection (a), the Attorney
General may bring a civil action in any appropriate district
court of the United States for such relief as may be appro-
priate, including injunctive relief.
SEC. 178. JUDICIAL REVIEW.
(a) IN GENERAL.—
(1) With respect to any final order by the Sec-
retary under section 176 whereby the Secretary de-
termines to award, to not award, or to only condi-
tionally award, financial assistance, with respect to
any final order of the Secretary under section 176,
with respect to a corrective action or sanction im-
posed under section 174, any party to a proceeding
which resulted in such final order may obtain review
of such final order in the United States Court of Ap-
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peals having jurisdiction over the applicant or recipi-
ent of funds, by filing a review petition within 30
days of such final order.
(2) The clerk of the court shall transmit a copy
of the review petition to the Secretary, who shall file
the record upon which the final order was entered as
provided in section 2112 of title 28, United States
Code. Review petitions, unless ordered by the court,
shall not stay the Secretary’s order. Petitions under
this title shall be heard expeditiously, if possible
within ten days of the filing of a reply brief.
(3) No objection to the order of the Secretary
shall be considered by the court unless the objection
shall have been specifically and timely urged before
the Secretary. Review shall be limited to questions
of law and the Secretary’s findings of fact shall be
conclusive if supported by substantial evidence.
(b) JURISDICTION OF THE COURT.—The court shall
have jurisdiction to make and enter a decree affirming,
modifying, or setting aside the order of the Secretary in
whole or in part. The court’s judgment shall be final, sub-
ject to certiorari review by the Supreme Court of the
United States as provided in section 1254(1) of title 28,
United States Code.
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SEC. 179. ADMINISTRATIVE PROVISIONS.
(a) RULES AND REGULATIONS.—The Secretary may,
in accordance with chapter 5 of title 5, United States
Code, prescribe such rules and regulations (including per-
formance standards) as the Secretary deems necessary.
Such rules and regulations may include adjustments au-
thorized by section 204 of the Intergovernmental Coopera-
tion Act of 1968. All such rules and regulations shall be
published in the Federal Register at least thirty days prior
to their effective date. Copies of all such rules and regula-
tions shall be transmitted to the appropriate committees
of the Congress at the same time and shall contain, with
respect to each material provision of such rules and regu-
lations, citations to the particular substantive section of
law which is the basis therefor.
(b) GIFTS.—The Secretary is authorized, in carrying
out this title, to accept, purchase, or lease in the name
of the department, and employ or dispose of in furtherance
of the purposes of this title, any money or property, real,
personal, or mixed, tangible or intangible, received by gift,
devise, bequest, or otherwise, and to accept voluntary and
uncompensated services notwithstanding the provisions of
section 1342 of title 31, United States Code.
(c) AUTHORITY TO EXPEND FUNDS.—The Secretary
may make such grants, contracts, or agreements, establish
such procedures and make such payments, in installments
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and in advance or by way of reimbursement, or otherwise
allocate or expend funds under this title as necessary to
carry out this title, including (without regard to the provi-
sions of section 4774(d) of title 10, United States Code)
expenditures for construction, repairs, and capital im-
provements, and including necessary adjustments in pay-
ments on account of overpayments of underpayments.
(d) USE OF SERVICES AND FACILITIES.—The Sec-
retary is authorized, in carrying out this title, under the
same conditions applicable under section 179(c) or to the
extent permitted by law other than this title, to accept
and use the services and facilities of departments, agen-
cies, and establishments of the United States. The Sec-
retary is also authorized to accept and use the services
and facilities of the agencies of any State or political sub-
division of a State, with its consent.
(e) POLITICAL ACTIVITIES.—The Secretary shall not
provide financial assistance for any program under this
title which involves political activities.
SEC. 180. OBLIGATIONAL AUTHORITY.
Notwithstanding any other provision of this title, no
authority to enter into contracts or financial assistance
agreements under this title shall be effective except to
such extent or in such amount as are provided in advance
in appropriation Acts.
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SEC. 181. CRIMINAL PROVISIONS.
Section 665 of title 18, United States Code, is
amended by striking ‘‘or the Job Training Partnership
Act’’ each place it appears and inserting ’’, the Job Train-
ing Partnership Act, or title I of the Reemployment Act
of 1994.’’
SEC. 182. REFERENCES.
Effective on the date of enactment of this title, all
references in any other statute other than this Act, and
other than in section 665 of title 18, United States Code,
to the Job Training Partnership Act shall be deemed to
also refer to title I of the Reemployment Act of 1994.
PART F—MISCELLANEOUS PROVISIONS
SEC. 191. EFFECTIVE DATE.
This title shall take effect on July 1, 1995.
SEC. 192. REPEALERS.
(a) IN GENERAL.—The following programs shall ter-
minate on July 1, 1995:
(1) The program authorized pursuant to sec-
tions 301–324 of the Job Training Partnership Act,
commonly referred to as EDWAA.
(2) The program authorized under section 325
of such Act, commonly referred to as the Defense
Conversion Adjustment Program.
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(3) The program authorized under section
325A of such Act, commonly referred to as the De-
fense Diversification Program.
(4) The program authorized under section 326
of such Act, commonly referred to as the Clean Air
Employment Transition Assistance Program.
(b) ADDITIONAL PROGRAM.—Part J of title IV and
section 462(e) of the Job Training Partnership Act shall
terminate on July 1, 1995.
SEC. 193. TRANSITION.
The Secretary may establish such rules and proce-
dures as may be necessary to provide for the orderly tran-
sition from the programs described in section 192(a) to
the program authorized under this title.
TITLE II—ONE-STOP CAREER CENTER
SYSTEM
SEC. 201. STATEMENT OF PURPOSE.
It is the purpose of this title to—
(1) establish a national program of grants and
waivers of Federal statutory and regulatory require-
ments to provide the States with the opportunity, on
a voluntary basis, to develop and implement net-
works of one-stop career centers;
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(2) provide seed money to encourage the devel-
opment of a flexible, nationwide system of One-Stop
Career Centers;
(3) promote universal access, by individuals and
employers, to a comprehensive menu of quality em-
ployment, education and training information and
services;
(4) encourage a customer-centered approach to
the provision of services, including features to en-
hance customer choice and ensure that the satisfac-
tion of individuals with services received is a primary
consideration in the administration of the program;
(5) establish a governance structure composed
of State, local and Federal partners to ensure com-
mon goals, effective planning, service coordination
and oversight of Statewide One-Stop Career Center
networks; and
(6) provide the States and local areas with in-
creased flexibility in the administration of employ-
ment and training programs in exchange for greater
accountability for outcomes.
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PART A—COMPONENTS OF VOLUNTARY ONE-
STOP CAREER CENTER SYSTEM
SEC. 211. GENERAL REQUIREMENTS.
For purposes of receiving a grant or waiver under
this title (except as provided in section 233(b)(1)(A)), a
one-stop career center system shall include—
(1) the establishment and operation of a
workforce investment board in accordance with sec-
tion 212;
(2) the establishment of one-stop career centers
in accordance with the procedures described in sec-
tion 213;
(3) the provision of services through the one-
stop career centers in accordance with section 214;
(4) the participation of federal programs in ac-
cordance with section 215;
(5) agreements concerning the operation of the
one-stop career centers in accordance with section
216;
(6) quality assurance systems in accordance
with section 217; and
(7) the establishment and operation of a State
Human Resource Investment Council in accordance
with section 218.
SEC. 212. WORKFORCE INVESTMENT BOARDS.
(a) DESIGNATION OF ONE-STOP SERVICE AREAS.—
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(1) The Governor shall, after consultation with
the State Human Resource Investment Council, des-
ignate one-stop service areas within the State.
(2) The one-stop service areas designated pur-
suant to paragraph (1) shall be—
(A) the geographic boundaries of the labor
market areas within the State, except that no
service delivery area or substate area may be
divided among two or more areas;
(B) the substate areas or consortium of
such areas; or
(C) the service delivery areas or consor-
tium of such areas.
(3) The Governor may not redesignate one-stop
service areas more frequently than once every four
years.
(b) ESTABLISHMENT OF BOARDS.—
(1) IN
GENERAL.—For each one-stop service
area designated under subsection (a), the local elect-
ed officials from such area shall establish a
workforce investment board that meets the require-
ments of this subsection.
(2) COMPOSITION.—Each workforce investment
board shall consist of—
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(A) representatives of private sector em-
ployers, who shall constitute a majority of the
board and who shall be owners of business con-
cerns, chief executives or chief operating offi-
cers of businesses, or the chief manager of a
plant or subdivision of a firm;
(B) representatives of organized labor and
community-based organizations, who shall con-
stitute not less than 25 percent of the member-
ship of the board and who shall be officers of
such organizations;
(C) representatives of educational institu-
tions;
(D) appropriate community leaders, such
as leaders of economic development agencies,
human service agencies and institutions, veter-
ans organizations, and entities providing job
training; and
(E) a local elected official, who shall be a
non-voting member.
(3) NOMINATIONS.—
(A) EMPLOYER
REPRESENTATIVES.—(i)
The representatives of employers under para-
graph (2)(A) shall be selected from among indi-
viduals nominated by general purpose business
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organizations after consulting with, and receiv-
ing recommendations from, other business orga-
nizations in the one-stop service area.
(ii) For the purposes of this subparagraph,
the term ‘‘general purpose business organiza-
tions’’ means organizations which admit to
membership any for-profit business operating
within the one-stop service area.
(B) LABOR REPRESENTATIVES.—The rep-
resentatives of organized labor under paragraph
(2)(B) shall be selected from individuals rec-
ommended by recognized State and local labor
federations. If the State or local labor federa-
tion fails to nominate a sufficient number of in-
dividuals to be appointed for such category, in-
dividual workers may be included on the board
as labor representatives.
(C) ELECTED OFFICIAL.—In any case in
which there are two or more units of general
local government in the one-stop service area,
the local elected officials of such units shall de-
termine which official shall be appointed to the
board.
(D) OTHER MEMBERS.—The members of
the board appointed to represent community-
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based organizations under paragraph (2)(B),
educational 
institutions 
under 
paragraph
(2)(C), and the community leaders appointed
under paragraph (2)(D) shall be selected from
individuals recommended by interested organi-
zations.
(4) APPOINTMENT
PROCESS.—(A)(i) In any
case in which there is only one unit of general local
government within the one-stop service area, the
chief elected official of that unit shall appoint mem-
bers to the Board from the individuals nominated or
recommended under paragraph (3).
(ii) In any case in which there are two or more
such units of general local government in the one-
stop service area, the chief elected officials of such
units shall appoint members to the Board from the
individuals so nominated or recommended in accord-
ance with an agreement entered into by such units
of general local government. In the absence of such
an agreement, the appointments shall be made by
the Governor from the individuals so nominated or
recommended.
(B) The number of members of the Board shall
be initially determined—
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(i) by the chief elected official in the case
described in subparagraph (A)(i),
(ii) by the chief elected officials in accord-
ance with the agreement in the case described
in subparagraph (A)(ii), or
(iii) by the Governor in the absence of such
agreement.
Thereafter, the number of members of the Board
shall be determined by the Board.
(C) Members shall be appointed for fixed and
staggered terms and may serve until their successors
are appointed. Any vacancy in the membership of
the Board shall be filled in the same manner as the
original appointment. Any member of the board may
be removed for cause in accordance with procedures
established by the Board.
(5) CHAIRPERSON.—Each workforce investment
board shall elect a chairperson, by a majority vote
of the members of the Board, from among members
of the Board who are not the local elected official or
heads of public agencies. The term of the chair-
person shall be determined by the board.
(6) 
STAFF.—The 
Chairperson 
of 
each
workforce investment board shall appoint staff, who
are not concurrently on the staff of any participating
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program, to assist such Board in carrying out the
functions prescribed in this section. Such staff may
include an executive director.
(7) CONFLICT OF INTEREST.—No member of a
workforce investment board shall cast a vote on the
provision of services by that member (or any organi-
zation which that member directly represents) or
vote on any matter which would provide direct finan-
cial benefit to that member.
(8) PRIVATE INDUSTRY COUNCILS.—A private
industry council may become a workforce investment
board if the local elected official or officials deter-
mine such council is appropriate and such council—
(A) meets the requirements of this sub-
section, or
(B) is reconstituted to meet the require-
ments of this subsection.
(9) STATE
HUMAN
RESOURCE
INVESTMENT
COUNCIL.—In any case in which the one-stop service
area is a State, the State human resource invest-
ment council or a portion of such council may be re-
constituted to meet the requirements of this sub-
section.
(10) CERTIFICATION.—The Governor shall cer-
tify a workforce investment board if the Governor
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determines that its composition and appointments
are consistent with the provisions of this subsection.
Such certification shall be made or denied within 30
days after the date on which the list of members and
necessary supporting documentation are submitted
to the Governor. When the Governor certifies the
board, it shall be convened within 30 days by the of-
ficial or officials who made the appointments under
paragraph (4).
(c) FUNCTIONS OF BOARD.—
(1) STRATEGIC PLANNING.—Each workforce in-
vestment board shall develop a strategic plan and
provide policy guidance with respect to the workforce
development programs that are administered in the
one-stop service area. Such strategic plan shall be
consistent with the statewide strategic plan devel-
oped by the State Human Resource Investment
Council pursuant to section 218 and shall include—
(A) measurable objectives for improving
the quality and effectiveness of workforce prep-
aration, development and training in the one-
stop service area; and
(B) 
methods 
for 
coordinating 
the
workforce development programs conducted in
the one-stop service area to enhance the deliv-
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ery of services, including methods to maximize
the coverage of such workforce and appropriate
population subgroups, and ensure equitable ac-
cess to services by such subgroups.
(2) IDENTIFICATION OF OCCUPATIONS IN DE-
MAND AND TRAINING NEEDS.—In carrying out this
subsection, the workforce investment board shall uti-
lize available labor market information and other ap-
propriate methods in order to identify the jobs cur-
rently available, the occupations currently in de-
mand, and the occupations likely to be in demand in
the future in the one-stop service area; the skill re-
quirements relating to such jobs and occupations;
and education and training services in the one-stop
service area that are available to assist individuals in
acquiring such skills. Such information shall be used
in developing the goals of, and activities to be pro-
vided by, the workforce development programs in the
labor market area and disseminated to the public
through the one-stop career centers established in
such area.
(3) 
BUDGETS.—The 
workforce 
investment
board shall review and approve the budgets of the
participating programs described in subparagraphs
(A)–(E) of section 215(a), and the budgets for the
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one-stop career centers pursuant to section 216(c),
and review and provide recommendations regarding
the budgets of other participating programs de-
scribed in section 215(b) to encourage coordination
and enhance the delivery of services.
(4) ASSUMPTION OF FUNCTIONS.—
(A) IN GENERAL.—The workforce invest-
ment board shall assume the functions of the
private industry council described in section
103 of the Job Training Partnership Act and of
the Job Service Employer Committees.
(B) LIMITATION.—The workforce invest-
ment board shall not be the administrative en-
tity for programs under title II of the Job
Training Partnership Act and shall not operate
any other programs.
(5) OVERSIGHT.—The workforce investment
board shall conduct oversight of the implementation
of the strategic plan and the overall performance of
the participating programs described in section 215.
(6) 
CHARTERING
OF
CENTERS.—Each
workforce investment board shall administer the pro-
cedures for the chartering of one-stop career centers
described in section 214(c).
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SEC. 213. ESTABLISHMENT OF ONE-STOP CAREER CEN-
TERS.
(a) IN GENERAL.—The Governor and local elected of-
ficial or officials shall jointly select either the option de-
scribed in subsection (b) or the option described in sub-
section (c) as the method for establishing one-stop career
centers for each one-stop service area.
(b) CONSORTIUM OPTION.—
(1) CONSORTIUM
MEMBERS.—One-stop career
centers in the one-stop service area shall be adminis-
tered by a consortium that consists of—
(A) the Employment Service;
(B) the substate grantee or grantees for
title I of this Act;
(C) the administrative entity or entities for
title II of the Job Training Partnership Act;
(D) the State agency charged with the ad-
ministration of the State unemployment com-
pensation law, unless such agency chooses not
to participate; and
(E) one or more additional entities that
shall be—
(i) any unit of government,
(ii) any public or private provider of
reemployment, education and training or
social services, or
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(iii) a consortium of the entities de-
scribed in clauses (i) and (ii).
(2) ESTABLISHMENT CRITERIA.—In order to be
designated to operate the one-stop career center sys-
tem, the consortium established in accordance with
paragraph (1) shall demonstrate to the satisfaction
of the workforce investment board the ability of such
consortium to—
(A) meet the criteria described in clauses
(i)-(vi) of subsection (c)(6)(B),
(B) provide for customer choice in obtain-
ing the basic services described in section
214(a) by—
(i) operating two or more centers, and
(ii) administering budget resources to
reflect, at least in part, the extent to which
each center is used by the public, and
(C) provide equitable access to centers by
segments of the population within the one-stop
service area.
(3) INTEGRATION
OF
PROGRAM
ADMINISTRA-
TION.—Consortia established in accordance with
paragraph (1) shall, in addition to meeting the es-
tablishment criteria described in paragraph (2),
identify to the workforce investment board proce-