[113th Congress Public Law 128]
[From the U.S. Government Publishing Office]

[[Page 128 STAT. 1425]]

Public Law 113-128
113th Congress

                                 An Act

 To amend the Workforce Investment Act of 1998 to strengthen the United 
States workforce development system through innovation in, and alignment 
and improvement of, employment, training, and education programs in the 
 United States, and to promote individual and national economic growth, 
     and for other purposes. <<NOTE: July 22, 2014 -  [H.R. 803]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Workforce 
Innovation and Opportunity Act.>> 

    (a) <<NOTE: 29 USC 3101 note.>>  Short Title.--This Act may be cited 
as the ``Workforce Innovation and Opportunity Act''.

    (b) Table of Contents.--The table of contents for this Act is as 

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.


                      Subtitle A--System Alignment

                       Chapter 1--State Provisions

Sec. 101. State workforce development boards.
Sec. 102. Unified State plan.
Sec. 103. Combined State plan.

                       Chapter 2--Local Provisions

Sec. 106. Workforce development areas.
Sec. 107. Local workforce development boards.
Sec. 108. Local plan.

                       Chapter 3--Board Provisions

Sec. 111. Funding of State and local boards.

                  Chapter 4--Performance Accountability

Sec. 116. Performance accountability system.

        Subtitle B--Workforce Investment Activities and Providers

        Chapter 1--Workforce Investment Activities and Providers

Sec. 121. Establishment of one-stop delivery systems.
Sec. 122. Identification of eligible providers of training services.
Sec. 123. Eligible providers of youth workforce investment activities.

            Chapter 2--Youth Workforce Investment Activities

Sec. 126. General authorization.
Sec. 127. State allotments.
Sec. 128. Within State allocations.
Sec. 129. Use of funds for youth workforce investment activities.

     Chapter 3--Adult and Dislocated Worker Employment and Training 

Sec. 131. General authorization.

[[Page 128 STAT. 1426]]

Sec. 132. State allotments.
Sec. 133. Within State allocations.
Sec. 134. Use of funds for employment and training activities.

           Chapter 4--General Workforce Investment Provisions

Sec. 136. Authorization of appropriations.

                          Subtitle C--Job Corps

Sec. 141. Purposes.
Sec. 142. Definitions.
Sec. 143. Establishment.
Sec. 144. Individuals eligible for the Job Corps.
Sec. 145. Recruitment, screening, selection, and assignment of 
Sec. 146. Enrollment.
Sec. 147. Job Corps centers.
Sec. 148. Program activities.
Sec. 149. Counseling and job placement.
Sec. 150. Support.
Sec. 151. Operations.
Sec. 152. Standards of conduct.
Sec. 153. Community participation.
Sec. 154. Workforce councils.
Sec. 155. Advisory committees.
Sec. 156. Experimental projects and technical assistance.
Sec. 157. Application of provisions of Federal law.
Sec. 158. Special provisions.
Sec. 159. Management information.
Sec. 160. General provisions.
Sec. 161. Job Corps oversight and reporting.
Sec. 162. Authorization of appropriations.

                      Subtitle D--National Programs

Sec. 166. Native American programs.
Sec. 167. Migrant and seasonal farmworker programs.
Sec. 168. Technical assistance.
Sec. 169. Evaluations and research.
Sec. 170. National dislocated worker grants.
Sec. 171. YouthBuild program.
Sec. 172. Authorization of appropriations.

                       Subtitle E--Administration

Sec. 181. Requirements and restrictions.
Sec. 182. Prompt allocation of funds.
Sec. 183. Monitoring.
Sec. 184. Fiscal controls; sanctions.
Sec. 185. Reports; recordkeeping; investigations.
Sec. 186. Administrative adjudication.
Sec. 187. Judicial review.
Sec. 188. Nondiscrimination.
Sec. 189. Secretarial administrative authorities and responsibilities.
Sec. 190. Workforce flexibility plans.
Sec. 191. State legislative authority.
Sec. 192. Transfer of Federal equity in State employment security agency 
           real property to the States.
Sec. 193. Continuation of State activities and policies.
Sec. 194. General program requirements.
Sec. 195. Restrictions on lobbying activities.


Sec. 201. Short title.
Sec. 202. Purpose.
Sec. 203. Definitions.
Sec. 204. Home schools.
Sec. 205. Rule of construction regarding postsecondary transition and 
           concurrent enrollment activities.
Sec. 206. Authorization of appropriations.

                     Subtitle A--Federal Provisions

Sec. 211. Reservation of funds; grants to eligible agencies; allotments.
Sec. 212. Performance accountability system.

[[Page 128 STAT. 1427]]

                      Subtitle B--State Provisions

Sec. 221. State administration.
Sec. 222. State distribution of funds; matching requirement.
Sec. 223. State leadership activities.
Sec. 224. State plan.
Sec. 225. Programs for corrections education and other institutionalized 

                      Subtitle C--Local Provisions

Sec. 231. Grants and contracts for eligible providers.
Sec. 232. Local application.
Sec. 233. Local administrative cost limits.

                     Subtitle D--General Provisions

Sec. 241. Administrative provisions.
Sec. 242. National leadership activities.
Sec. 243. Integrated English literacy and civics education.


Sec. 301. Employment service offices.
Sec. 302. Definitions.
Sec. 303. Federal and State employment service offices.
Sec. 304. Allotment of sums.
Sec. 305. Use of sums.
Sec. 306. State plan.
Sec. 307. Performance measures.
Sec. 308. Workforce and labor market information system.


                   Subtitle A--Introductory Provisions

Sec. 401. References.
Sec. 402. Findings, purpose, policy.
Sec. 403. Rehabilitation Services Administration.
Sec. 404. Definitions.
Sec. 405. Administration of the Act.
Sec. 406. Reports.
Sec. 407. Evaluation and information.
Sec. 408. Carryover.
Sec. 409. Traditionally underserved populations.

             Subtitle B--Vocational Rehabilitation Services

Sec. 411. Declaration of policy; authorization of appropriations.
Sec. 412. State plans.
Sec. 413. Eligibility and individualized plan for employment.
Sec. 414. Vocational rehabilitation services.
Sec. 415. State Rehabilitation Council.
Sec. 416. Evaluation standards and performance indicators.
Sec. 417. Monitoring and review.
Sec. 418. Training and services for employers.
Sec. 419. State allotments.
Sec. 420. Payments to States.
Sec. 421. Client assistance program.
Sec. 422. Pre-employment transition services.
Sec. 423. American Indian vocational rehabilitation services.
Sec. 424. Vocational rehabilitation services client information.

                    Subtitle C--Research and Training

Sec. 431. Purpose.
Sec. 432. Authorization of appropriations.
Sec. 433. National Institute on Disability, Independent Living, and 
           Rehabilitation Research.
Sec. 434. Interagency committee.
Sec. 435. Research and other covered activities.
Sec. 436. Disability, Independent Living, and Rehabilitation Research 
           Advisory Council.
Sec. 437. Definition of covered school.

     Subtitle D--Professional Development and Special Projects and 

Sec. 441. Purpose; training.

[[Page 128 STAT. 1428]]

Sec. 442. Demonstration, training, and technical assistance programs.
Sec. 443. Migrant and seasonal farmworkers; recreational programs.

               Subtitle E--National Council on Disability

Sec. 451. Establishment.
Sec. 452. Report.
Sec. 453. Authorization of appropriations.

                     Subtitle F--Rights and Advocacy

Sec. 456. Interagency Committee, Board, and Council.
Sec. 457. Protection and advocacy of individual rights.
Sec. 458. Limitations on use of subminimum wage.

 Subtitle G--Employment Opportunities for Individuals With Disabilities

Sec. 461. Employment opportunities for individuals with disabilities.

  Subtitle H--Independent Living Services and Centers for Independent 

          Chapter 1--Individuals With Significant Disabilities

                    subchapter a--general provisions

Sec. 471. Purpose.
Sec. 472. Administration of the independent living program.
Sec. 473. Definitions.
Sec. 474. State plan.
Sec. 475. Statewide Independent Living Council.
Sec. 475A. Responsibilities of the Administrator.

                subchapter b--independent living services

Sec. 476. Administration.

              subchapter c--centers for independent living

Sec. 481. Program authorization.
Sec. 482. Centers.
Sec. 483. Standards and assurances.
Sec. 484. Authorization of appropriations.

  Chapter 2--Independent Living Services for Older Individuals Who Are 

Sec. 486. Independent living services for older individuals who are 
Sec. 487. Program of grants.
Sec. 488. Independent living services for older individuals who are 
           blind authorization of appropriations.

                     Subtitle I--General Provisions

Sec. 491. Transfer of functions regarding independent living to 
           Department of Health and Human Services, and savings 
Sec. 492. Table of contents.

                       TITLE V--GENERAL PROVISIONS

                    Subtitle A--Workforce Investment

Sec. 501. Privacy.
Sec. 502. Buy-American requirements.
Sec. 503. Transition provisions.
Sec. 504. Reduction of reporting burdens and requirements.
Sec. 505. Report on data capability of Federal and State databases and 
           data exchange agreements.
Sec. 506. Effective dates.

                  Subtitle B--Amendments to Other Laws

Sec. 511. Repeal of the Workforce Investment Act of 1998.
Sec. 512. Conforming amendments.
Sec. 513. References.

SEC. 2. <<NOTE: 29 USC 3101.>>  PURPOSES.

    The purposes of this Act are the following:
            (1) To increase, for individuals in the United States, 
        particularly those individuals with barriers to employment,

[[Page 128 STAT. 1429]]

        access to and opportunities for the employment, education, 
        training, and support services they need to succeed in the labor 
            (2) To support the alignment of workforce investment, 
        education, and economic development systems in support of a 
        comprehensive, accessible, and high-quality workforce 
        development system in the United States.
            (3) To improve the quality and labor market relevance of 
        workforce investment, education, and economic development 
        efforts to provide America's workers with the skills and 
        credentials necessary to secure and advance in employment with 
        family-sustaining wages and to provide America's employers with 
        the skilled workers the employers need to succeed in a global 
            (4) To promote improvement in the structure of and delivery 
        of services through the United States workforce development 
        system to better address the employment and skill needs of 
        workers, jobseekers, and employers.
            (5) To increase the prosperity of workers and employers in 
        the United States, the economic growth of communities, regions, 
        and States, and the global competitiveness of the United States.
            (6) For purposes of subtitle A and B of title I, to provide 
        workforce investment activities, through statewide and local 
        workforce development systems, that increase the employment, 
        retention, and earnings of participants, and increase attainment 
        of recognized postsecondary credentials by participants, and as 
        a result, improve the quality of the workforce, reduce welfare 
        dependency, increase economic self-sufficiency, meet the skill 
        requirements of employers, and enhance the productivity and 
        competitiveness of the Nation.
SEC. 3. <<NOTE: 29 USC 3102.>>  DEFINITIONS.

    In this Act, and the core program provisions that are not in this 
Act, except as otherwise expressly provided:
            (1) Administrative costs.--The term ``administrative costs'' 
        means expenditures incurred by State boards and local boards, 
        direct recipients (including State grant recipients under 
        subtitle B of title I and recipients of awards under subtitles C 
        and D of title I), local grant recipients, local fiscal agents 
        or local grant subrecipients, and one-stop operators in the 
        performance of administrative functions and in carrying out 
        activities under title I that are not related to the direct 
        provision of workforce investment services (including services 
        to participants and employers). Such costs include both 
        personnel and nonpersonnel costs and both direct and indirect 
            (2) Adult.--Except as otherwise specified in section 132, 
        the term ``adult'' means an individual who is age 18 or older.
            (3) Adult education; adult education and literacy 
        activities.--The terms ``adult education'' and ``adult education 
        and literacy activities'' have the meanings given the terms in 
        section 203.
            (4) Area career and technical education school.--The term 
        ``area career and technical education school'' has the meaning 
        given the term in section 3 of the Carl D. Perkins Career and 
        Technical Education Act of 2006 (20 U.S.C. 2302).

[[Page 128 STAT. 1430]]

            (5) Basic skills deficient.--The term ``basic skills 
        deficient'' means, with respect to an individual--
                    (A) who is a youth, that the individual has English 
                reading, writing, or computing skills at or below the 
                8th grade level on a generally accepted standardized 
                test; or
                    (B) who is a youth or adult, that the individual is 
                unable to compute or solve problems, or read, write, or 
                speak English, at a level necessary to function on the 
                job, in the individual's family, or in society.
            (6) Career and technical education.--The term ``career and 
        technical education'' has the meaning given the term in section 
        3 of the Carl D. Perkins Career and Technical Education Act of 
        2006 (20 U.S.C. 2302).
            (7) Career pathway.--The term ``career pathway'' means a 
        combination of rigorous and high-quality education, training, 
        and other services that--
                    (A) aligns with the skill needs of industries in the 
                economy of the State or regional economy involved;
                    (B) prepares an individual to be successful in any 
                of a full range of secondary or postsecondary education 
                options, including apprenticeships registered under the 
                Act of August 16, 1937 (commonly known as the ``National 
                Apprenticeship Act''; 50 Stat. 664, chapter 663; 29 
                U.S.C. 50 et seq.) (referred to individually in this Act 
                as an ``apprenticeship'', except in section 171);
                    (C) includes counseling to support an individual in 
                achieving the individual's education and career goals;
                    (D) includes, as appropriate, education offered 
                concurrently with and in the same context as workforce 
                preparation activities and training for a specific 
                occupation or occupational cluster;
                    (E) organizes education, training, and other 
                services to meet the particular needs of an individual 
                in a manner that accelerates the educational and career 
                advancement of the individual to the extent practicable;
                    (F) enables an individual to attain a secondary 
                school diploma or its recognized equivalent, and at 
                least 1 recognized postsecondary credential; and
                    (G) helps an individual enter or advance within a 
                specific occupation or occupational cluster.
            (8) Career planning.--The term ``career planning'' means the 
        provision of a client-centered approach in the delivery of 
        services, designed--
                    (A) to prepare and coordinate comprehensive 
                employment plans, such as service strategies, for 
                participants to ensure access to necessary workforce 
                investment activities and supportive services, using, 
                where feasible, computer-based technologies; and
                    (B) to provide job, education, and career 
                counseling, as appropriate during program participation 
                and after job placement.
            (9) Chief elected official.--The term ``chief elected 
        official'' means--
                    (A) the chief elected executive officer of a unit of 
                general local government in a local area; and
                    (B) in a case in which a local area includes more 
                than 1 unit of general local government, the individuals

[[Page 128 STAT. 1431]]

                designated under the agreement described in section 
            (10) Community-based organization.--The term ``community-
        based organization'' means a private nonprofit organization 
        (which may include a faith-based organization), that is 
        representative of a community or a significant segment of a 
        community and that has demonstrated expertise and effectiveness 
        in the field of workforce development.
            (11) Competitive integrated employment.--The term 
        ``competitive integrated employment'' has the meaning given the 
        term in section 7 of the Rehabilitation Act of 1973 (29 U.S.C. 
        705), for individuals with disabilities.
            (12) Core program.--The term ``core programs'' means a 
        program authorized under a core program provision.
            (13) Core program provision.--The term ``core program 
        provision'' means--
                    (A) chapters 2 and 3 of subtitle B of title I 
                (relating to youth workforce investment activities and 
                adult and dislocated worker employment and training 
                    (B) title II (relating to adult education and 
                literacy activities);
                    (C) sections 1 through 13 of the Wagner-Peyser Act 
                (29 U.S.C. 49 et seq.) (relating to employment 
                services); and
                    (D) title I of the Rehabilitation Act of 1973 (29 
                U.S.C. 720 et seq.), other than section 112 or part C of 
                that title (29 U.S.C. 732, 741) (relating to vocational 
                rehabilitation services).
            (14) Customized training.--The term ``customized training'' 
        means training--
                    (A) that is designed to meet the specific 
                requirements of an employer (including a group of 
                    (B) that is conducted with a commitment by the 
                employer to employ an individual upon successful 
                completion of the training; and
                    (C) for which the employer pays--
                          (i) a significant portion of the cost of 
                      training, as determined by the local board 
                      involved, taking into account the size of the 
                      employer and such other factors as the local board 
                      determines to be appropriate, which may include 
                      the number of employees participating in training, 
                      wage and benefit levels of those employees (at 
                      present and anticipated upon completion of the 
                      training), relation of the training to the 
                      competitiveness of a participant, and other 
                      employer-provided training and advancement 
                      opportunities; and
                          (ii) in the case of customized training (as 
                      defined in subparagraphs (A) and (B)) involving an 
                      employer located in multiple local areas in the 
                      State, a significant portion of the cost of the 
                      training, as determined by the Governor of the 
                      State, taking into account the size of the 
                      employer and such other factors as the Governor 
                      determines to be appropriate.
            (15) Dislocated worker.--The term ``dislocated worker'' 
        means an individual who--
                    (A)(i) has been terminated or laid off, or who has 
                received a notice of termination or layoff, from 

[[Page 128 STAT. 1432]]

                    (ii)(I) is eligible for or has exhausted entitlement 
                to unemployment compensation; or
                    (II) has been employed for a duration sufficient to 
                demonstrate, to the appropriate entity at a one-stop 
                center referred to in section 121(e), attachment to the 
                workforce, but is not eligible for unemployment 
                compensation due to insufficient earnings or having 
                performed services for an employer that were not covered 
                under a State unemployment compensation law; and
                    (iii) is unlikely to return to a previous industry 
                or occupation;
                    (B)(i) has been terminated or laid off, or has 
                received a notice of termination or layoff, from 
                employment as a result of any permanent closure of, or 
                any substantial layoff at, a plant, facility, or 
                    (ii) is employed at a facility at which the employer 
                has made a general announcement that such facility will 
                close within 180 days; or
                    (iii) for purposes of eligibility to receive 
                services other than training services described in 
                section 134(c)(3), career services described in section 
                134(c)(2)(A)(xii), or supportive services, is employed 
                at a facility at which the employer has made a general 
                announcement that such facility will close;
                    (C) was self-employed (including employment as a 
                farmer, a rancher, or a fisherman) but is unemployed as 
                a result of general economic conditions in the community 
                in which the individual resides or because of natural 
                    (D) is a displaced homemaker; or
                    (E)(i) is the spouse of a member of the Armed Forces 
                on active duty (as defined in section 101(d)(1) of title 
                10, United States Code), and who has experienced a loss 
                of employment as a direct result of relocation to 
                accommodate a permanent change in duty station of such 
                member; or
                    (ii) is the spouse of a member of the Armed Forces 
                on active duty and who meets the criteria described in 
                paragraph (16)(B).
            (16) Displaced homemaker.--The term ``displaced homemaker'' 
        means an individual who has been providing unpaid services to 
        family members in the home and who--
                    (A)(i) has been dependent on the income of another 
                family member but is no longer supported by that income; 
                    (ii) is the dependent spouse of a member of the 
                Armed Forces on active duty (as defined in section 
                101(d)(1) of title 10, United States Code) and whose 
                family income is significantly reduced because of a 
                deployment (as defined in section 991(b) of title 10, 
                United States Code, or pursuant to paragraph (4) of such 
                section), a call or order to active duty pursuant to a 
                provision of law referred to in section 101(a)(13)(B) of 
                title 10, United States Code, a permanent change of 
                station, or the service-connected (as defined in section 
                101(16) of title 38, United States Code) death or 
                disability of the member; and
                    (B) is unemployed or underemployed and is 
                experiencing difficulty in obtaining or upgrading 

[[Page 128 STAT. 1433]]

            (17) Economic development agency.--The term ``economic 
        development agency'' includes a local planning or zoning 
        commission or board, a community development agency, or another 
        local agency or institution responsible for regulating, 
        promoting, or assisting in local economic development.
            (18) Eligible youth.--Except as provided in subtitles C and 
        D of title I, the term ``eligible youth'' means an in-school 
        youth or out-of-school youth.
            (19) Employment and training activity.--The term 
        ``employment and training activity'' means an activity described 
        in section 134 that is carried out for an adult or dislocated 
            (20) English language acquisition program.--The term 
        ``English language acquisition program'' has the meaning given 
        the term in section 203.
            (21) English language learner.--The term ``English language 
        learner'' has the meaning given the term in section 203.
            (22) Governor.--The term ``Governor'' means the chief 
        executive of a State or an outlying area.
            (23) In-demand industry sector or occupation.--
                    (A) In general.--The term ``in-demand industry 
                sector or occupation'' means--
                          (i) an industry sector that has a substantial 
                      current or potential impact (including through 
                      jobs that lead to economic self-sufficiency and 
                      opportunities for advancement) on the State, 
                      regional, or local economy, as appropriate, and 
                      that contributes to the growth or stability of 
                      other supporting businesses, or the growth of 
                      other industry sectors; or
                          (ii) an occupation that currently has or is 
                      projected to have a number of positions (including 
                      positions that lead to economic self-sufficiency 
                      and opportunities for advancement) in an industry 
                      sector so as to have a significant impact on the 
                      State, regional, or local economy, as appropriate.
                    (B) Determination.--The determination of whether an 
                industry sector or occupation is in-demand under this 
                paragraph shall be made by the State board or local 
                board, as appropriate, using State and regional business 
                and labor market projections, including the use of labor 
                market information.
            (24) Individual with a barrier to employment.--The term 
        ``individual with a barrier to employment'' means a member of 1 
        or more of the following populations:
                    (A) Displaced homemakers.
                    (B) Low-income individuals.
                    (C) Indians, Alaska Natives, and Native Hawaiians, 
                as such terms are defined in section 166.
                    (D) Individuals with disabilities, including youth 
                who are individuals with disabilities.
                    (E) Older individuals.
                    (F) Ex-offenders.
                    (G) Homeless individuals (as defined in section 
                41403(6) of the Violence Against Women Act of 1994 (42 
                U.S.C. 14043e-2(6))), or homeless children and youths 

[[Page 128 STAT. 1434]]

                defined in section 725(2) of the McKinney-Vento Homeless 
                Assistance Act (42 U.S.C. 11434a(2))).
                    (H) Youth who are in or have aged out of the foster 
                care system.
                    (I) Individuals who are English language learners, 
                individuals who have low levels of literacy, and 
                individuals facing substantial cultural barriers.
                    (J) Eligible migrant and seasonal farmworkers, as 
                defined in section 167(i).
                    (K) Individuals within 2 years of exhausting 
                lifetime eligibility under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.).
                    (L) Single parents (including single pregnant 
                    (M) Long-term unemployed individuals.
                    (N) Such other groups as the Governor involved 
                determines to have barriers to employment.
            (25) Individual with a disability.--
                    (A) In general.--The term ``individual with a 
                disability'' means an individual with a disability as 
                defined in section 3 of the Americans with Disabilities 
                Act of 1990 (42 U.S.C. 12102).
                    (B) Individuals with disabilities.--The term 
                ``individuals with disabilities'' means more than 1 
                individual with a disability.
            (26) Industry or sector partnership.--The term ``industry or 
        sector partnership'' means a workforce collaborative, convened 
        by or acting in partnership with a State board or local board, 
                    (A) organizes key stakeholders in an industry 
                cluster into a working group that focuses on the shared 
                goals and human resources needs of the industry cluster 
                and that includes, at the appropriate stage of 
                development of the partnership--
                          (i) representatives of multiple businesses or 
                      other employers in the industry cluster, including 
                      small and medium-sized employers when practicable;
                          (ii) 1 or more representatives of a recognized 
                      State labor organization or central labor council, 
                      or another labor representative, as appropriate; 
                          (iii) 1 or more representatives of an 
                      institution of higher education with, or another 
                      provider of, education or training programs that 
                      support the industry cluster; and
                    (B) may include representatives of--
                          (i) State or local government;
                          (ii) State or local economic development 
                          (iii) State boards or local boards, as 
                          (iv) a State workforce agency or other entity 
                      providing employment services;
                          (v) other State or local agencies;
                          (vi) business or trade associations;
                          (vii) economic development organizations;
                          (viii) nonprofit organizations, community-
                      based organizations, or intermediaries;
                          (ix) philanthropic organizations;
                          (x) industry associations; and

[[Page 128 STAT. 1435]]

                          (xi) other organizations, as determined to be 
                      necessary by the members comprising the industry 
                      or sector partnership.
            (27) In-school youth.--The term ``in-school youth'' means a 
        youth described in section 129(a)(1)(C).
            (28) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101, and subparagraphs (A) and (B) of section 
        102(a)(1), of the Higher Education Act of 1965 (20 U.S.C. 1001, 
            (29) Integrated education and training.--The term 
        ``integrated education and training'' has the meaning given the 
        term in section 203.
            (30) Labor market area.--The term ``labor market area'' 
        means an economically integrated geographic area within which 
        individuals can reside and find employment within a reasonable 
        distance or can readily change employment without changing their 
        place of residence. Such an area shall be identified in 
        accordance with criteria used by the Bureau of Labor Statistics 
        of the Department of Labor in defining such areas or similar 
        criteria established by a Governor.
            (31) Literacy.--The term ``literacy'' has the meaning given 
        the term in section 203.
            (32) Local area.--The term ``local area'' means a local 
        workforce investment area designated under section 106, subject 
        to sections 106(c)(3)(A), 107(c)(4)(B)(i), and 189(i).
            (33) Local board.--The term ``local board'' means a local 
        workforce development board established under section 107, 
        subject to section 107(c)(4)(B)(i).
            (34) Local educational agency.--The term ``local educational 
        agency'' has the meaning given the term in section 9101 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).
            (35) Local plan.--The term ``local plan'' means a plan 
        submitted under section 108, subject to section 106(c)(3)(B).
            (36) Low-income individual.--
                    (A) In general.--The term ``low-income individual'' 
                means an individual who--
                          (i) receives, or in the past 6 months has 
                      received, or is a member of a family that is 
                      receiving or in the past 6 months has received, 
                      assistance through the supplemental nutrition 
                      assistance program established under the Food and 
                      Nutrition Act of 2008 (7 U.S.C. 2011 et seq.), the 
                      program of block grants to States for temporary 
                      assistance for needy families program under part A 
                      of title IV of the Social Security Act (42 U.S.C. 
                      601 et seq.), or the supplemental security income 
                      program established under title XVI of the Social 
                      Security Act (42 U.S.C. 1381 et seq.), or State or 
                      local income-based public assistance;
                          (ii) is in a family with total family income 
                      that does not exceed the higher of--
                                    (I) the poverty line; or
                                    (II) 70 percent of the lower living 
                                standard income level;
                          (iii) is a homeless individual (as defined in 
                      section 41403(6) of the Violence Against Women Act 
                      of 1994

[[Page 128 STAT. 1436]]

                      (42 U.S.C. 14043e-2(6))), or a homeless child or 
                      youth (as defined under section 725(2) of the 
                      McKinney-Vento Homeless Assistance Act (42 U.S.C. 
                          (iv) receives or is eligible to receive a free 
                      or reduced price lunch under the Richard B. 
                      Russell National School Lunch Act (42 U.S.C. 1751 
                      et seq.);
                          (v) is a foster child on behalf of whom State 
                      or local government payments are made; or
                          (vi) is an individual with a disability whose 
                      own income meets the income requirement of clause 
                      (ii), but who is a member of a family whose income 
                      does not meet this requirement.
                    (B) Lower living standard income level.--The term 
                ``lower living standard income level'' means that income 
                level (adjusted for regional, metropolitan, urban, and 
                rural differences and family size) determined annually 
                by the Secretary of Labor based on the most recent lower 
                living family budget issued by the Secretary.
            (37) Nontraditional employment.--The term ``nontraditional 
        employment'' refers to occupations or fields of work, for which 
        individuals from the gender involved comprise less than 25 
        percent of the individuals employed in each such occupation or 
        field of work.
            (38) Offender.--The term ``offender'' means an adult or 
                    (A) who is or has been subject to any stage of the 
                criminal justice process, and for whom services under 
                this Act may be beneficial; or
                    (B) who requires assistance in overcoming artificial 
                barriers to employment resulting from a record of arrest 
                or conviction.
            (39) Older individual.--The term ``older individual'' means 
        an individual age 55 or older.
            (40) One-stop center.--The term ``one-stop center'' means a 
        site described in section 121(e)(2).
            (41) One-stop operator.--The term ``one-stop operator'' 
        means 1 or more entities designated or certified under section 
            (42) One-stop partner.--The term ``one-stop partner'' 
                    (A) an entity described in section 121(b)(1); and
                    (B) an entity described in section 121(b)(2) that is 
                participating, with the approval of the local board and 
                chief elected official, in the operation of a one-stop 
                delivery system.
            (43) One-stop partner program.--The term ``one-stop partner 
        program'' means a program or activities described in section 
        121(b) of a one-stop partner.
            (44) On-the-job training.--The term ``on-the-job training'' 
        means training by an employer that is provided to a paid 
        participant while engaged in productive work in a job that--
                    (A) provides knowledge or skills essential to the 
                full and adequate performance of the job;
                    (B) is made available through a program that 
                provides reimbursement to the employer of up to 50 
                percent of the wage rate of the participant, except as 
                provided in section 134(c)(3)(H), for the extraordinary 
                costs of providing

[[Page 128 STAT. 1437]]

                the training and additional supervision related to the 
                training; and
                    (C) is limited in duration as appropriate to the 
                occupation for which the participant is being trained, 
                taking into account the content of the training, the 
                prior work experience of the participant, and the 
                service strategy of the participant, as appropriate.
            (45) Outlying area.--The term ``outlying area'' means--
                    (A) American Samoa, Guam, the Commonwealth of the 
                Northern Mariana Islands, and the United States Virgin 
                Islands; and
                    (B) the Republic of Palau, except during any period 
                for which the Secretary of Labor and the Secretary of 
                Education determine that a Compact of Free Association 
                is in effect and contains provisions for training and 
                education assistance prohibiting the assistance provided 
                under this Act.
            (46) Out-of-school youth.--The term ``out-of-school youth'' 
        means a youth described in section 129(a)(1)(B).
            (47) Pay-for-performance contract strategy.--The term ``pay-
        for-performance contract strategy'' means a procurement strategy 
        that uses pay-for-performance contracts in the provision of 
        training services described in section 134(c)(3) or activities 
        described in section 129(c)(2), and includes--
                    (A) contracts, each of which shall specify a fixed 
                amount that will be paid to an eligible service provider 
                (which may include a local or national community-based 
                organization or intermediary, community college, or 
                other training provider, that is eligible under section 
                122 or 123, as appropriate) based on the achievement of 
                specified levels of performance on the primary 
                indicators of performance described in section 
                116(b)(2)(A) for target populations as identified by the 
                local board (including individuals with barriers to 
                employment), within a defined timetable, and which may 
                provide for bonus payments to such service provider to 
                expand capacity to provide effective training;
                    (B) a strategy for independently validating the 
                achievement of the performance described in subparagraph 
                (A); and
                    (C) a description of how the State or local area 
                will reallocate funds not paid to a provider because the 
                achievement of the performance described in subparagraph 
                (A) did not occur, for further activities related to 
                such a procurement strategy, subject to section 
            (48) Planning region.--The term ``planning region'' means a 
        region described in subparagraph (B) or (C) of section 
        106(a)(2), subject to section 107(c)(4)(B)(i).
            (49) Poverty line.--The term ``poverty line'' means the 
        poverty line (as defined by the Office of Management and Budget, 
        and revised annually in accordance with section 673(2) of the 
        Community Services Block Grant Act (42 U.S.C. 9902(2))) 
        applicable to a family of the size involved.
            (50) Public assistance.--The term ``public assistance'' 
        means Federal, State, or local government cash payments for 
        which eligibility is determined by a needs or income test.
            (51) Rapid response activity.--The term ``rapid response 
        activity'' means an activity provided by a State, or by an 

[[Page 128 STAT. 1438]]

        designated by a State, with funds provided by the State under 
        section 134(a)(1)(A), in the case of a permanent closure or mass 
        layoff at a plant, facility, or enterprise, or a natural or 
        other disaster, that results in mass job dislocation, in order 
        to assist dislocated workers in obtaining reemployment as soon 
        as possible, with services including--
                    (A) the establishment of onsite contact with 
                employers and employee representatives--
                          (i) immediately after the State is notified of 
                      a current or projected permanent closure or mass 
                      layoff; or
                          (ii) in the case of a disaster, immediately 
                      after the State is made aware of mass job 
                      dislocation as a result of such disaster;
                    (B) the provision of information on and access to 
                available employment and training activities;
                    (C) assistance in establishing a labor-management 
                committee, voluntarily agreed to by labor and 
                management, with the ability to devise and implement a 
                strategy for assessing the employment and training needs 
                of dislocated workers and obtaining services to meet 
                such needs;
                    (D) the provision of emergency assistance adapted to 
                the particular closure, layoff, or disaster; and
                    (E) the provision of assistance to the local 
                community in developing a coordinated response and in 
                obtaining access to State economic development 
            (52) Recognized postsecondary credential.--The term 
        ``recognized postsecondary credential'' means a credential 
        consisting of an industry-recognized certificate or 
        certification, a certificate of completion of an apprenticeship, 
        a license recognized by the State involved or Federal 
        Government, or an associate or baccalaureate degree.
            (53) Region.--The term ``region'', used without further 
        description, means a region identified under section 106(a), 
        subject to section 107(c)(4)(B)(i) and except as provided in 
        section 106(b)(1)(B)(ii).
            (54) School dropout.--The term ``school dropout'' means an 
        individual who is no longer attending any school and who has not 
        received a secondary school diploma or its recognized 
            (55) Secondary school.--The term ``secondary school'' has 
        the meaning given the term in section 9101 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7801).
            (56) State.--The term ``State'' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.
            (57) State board.--The term ``State board'' means a State 
        workforce development board established under section 101.
            (58) State plan.--The term ``State plan'', used without 
        further description, means a unified State plan under section 
        102 or a combined State plan under section 103.
            (59) Supportive services.--The term ``supportive services'' 
        means services such as transportation, child care, dependent 
        care, housing, and needs-related payments, that are necessary to 
        enable an individual to participate in activities authorized 
        under this Act.

[[Page 128 STAT. 1439]]

            (60) Training services.--The term ``training services'' 
        means services described in section 134(c)(3).
            (61) Unemployed individual.--The term ``unemployed 
        individual'' means an individual who is without a job and who 
        wants and is available for work. The determination of whether an 
        individual is without a job, for purposes of this paragraph, 
        shall be made in accordance with the criteria used by the Bureau 
        of Labor Statistics of the Department of Labor in defining 
        individuals as unemployed.
            (62) Unit of general local government.--The term ``unit of 
        general local government'' means any general purpose political 
        subdivision of a State that has the power to levy taxes and 
        spend funds, as well as general corporate and police powers.
            (63) Veteran; related definition.--
                    (A) Veteran.--The term ``veteran'' has the meaning 
                given the term in section 101 of title 38, United States 
                    (B) Recently separated veteran.--The term ``recently 
                separated veteran'' means any veteran who applies for 
                participation under this Act within 48 months after the 
                discharge or release from active military, naval, or air 
            (64) Vocational rehabilitation program.--The term 
        ``vocational rehabilitation program'' means a program authorized 
        under a provision covered under paragraph (13)(D).
            (65) Workforce development activity.--The term ``workforce 
        development activity'' means an activity carried out through a 
        workforce development program.
            (66) Workforce development program.--The term ``workforce 
        development program'' means a program made available through a 
        workforce development system.
            (67) Workforce development system.--The term ``workforce 
        development system'' means a system that makes available the 
        core programs, the other one-stop partner programs, and any 
        other programs providing employment and training services as 
        identified by a State board or local board.
            (68) Workforce investment activity.--The term ``workforce 
        investment activity'' means an employment and training activity, 
        and a youth workforce investment activity.
            (69) Workforce preparation activities.--The term ``workforce 
        preparation activities'' has the meaning given the term in 
        section 203.
            (70) Workplace learning advisor.--The term ``workplace 
        learning advisor'' means an individual employed by an 
        organization who has the knowledge and skills necessary to 
        advise other employees of that organization about the education, 
        skill development, job training, career counseling services, and 
        credentials, including services provided through the workforce 
        development system, required to progress toward career goals of 
        such employees in order to meet employer requirements related to 
        job openings and career advancements that support economic self-
            (71) Youth workforce investment activity.--The term ``youth 
        workforce investment activity'' means an activity described in 
        section 129 that is carried out for eligible youth (or as 
        described in section 129(a)(3)(A)).

[[Page 128 STAT. 1440]]


                      Subtitle A--System Alignment

                       CHAPTER 1--STATE PROVISIONS


    (a) In General.--The Governor of a State shall establish a State 
workforce development board to carry out the functions described in 
subsection (d).
    (b) Membership.--
            (1) In general.--The State board shall include--
                    (A) the Governor;
                    (B) a member of each chamber of the State 
                legislature (to the extent consistent with State law), 
                appointed by the appropriate presiding officers of such 
                chamber; and
                    (C) members appointed by the Governor, of which--
                          (i) a majority shall be representatives of 
                      businesses in the State, who--
                                    (I) are owners of businesses, chief 
                                executives or operating officers of 
                                businesses, or other business executives 
                                or employers with optimum policymaking 
                                or hiring authority, and who, in 
                                addition, may be members of a local 
                                board described in section 
                                    (II) represent businesses (including 
                                small businesses), or organizations 
                                representing businesses described in 
                                this subclause, that provide employment 
                                opportunities that, at a minimum, 
                                include high-quality, work-relevant 
                                training and development in in-demand 
                                industry sectors or occupations in the 
                                State; and
                                    (III) are appointed from among 
                                individuals nominated by State business 
                                organizations and business trade 
                          (ii) not less than 20 percent shall be 
                      representatives of the workforce within the State, 
                                    (I) shall include representatives of 
                                labor organizations, who have been 
                                nominated by State labor federations;
                                    (II) shall include a representative, 
                                who shall be a member of a labor 
                                organization or a training director, 
                                from a joint labor-management 
                                apprenticeship program, or if no such 
                                joint program exists in the State, such 
                                a representative of an apprenticeship 
                                program in the State;
                                    (III) may include representatives of 
                                community-based organizations that have 
                                demonstrated experience and expertise in 
                                addressing the employment, training, or 
                                education needs of individuals with 
                                barriers to employment, including 
                                organizations that serve veterans or 
                                that provide or support competitive, 
                                integrated employment for individuals 
                                with disabilities; and

[[Page 128 STAT. 1441]]

                                    (IV) may include representatives of 
                                organizations that have demonstrated 
                                experience and expertise in addressing 
                                the employment, training, or education 
                                needs of eligible youth, including 
                                representatives of organizations that 
                                serve out-of-school youth; and
                          (iii) the balance--
                                    (I) shall include representatives of 
                                government, who--
                                            (aa) shall include the lead 
                                        State officials with primary 
                                        responsibility for the core 
                                        programs; and
                                            (bb) shall include chief 
                                        elected officials (collectively 
                                        representing both cities and 
                                        counties, where appropriate); 
                                    (II) may include such other 
                                representatives and officials as the 
                                Governor may designate, such as--
                                            (aa) the State agency 
                                        officials from agencies that are 
                                        one-stop partners not specified 
                                        in subclause (I) (including 
                                        additional one-stop partners 
                                        whose programs are covered by 
                                        the State plan, if any);
                                            (bb) State agency officials 
                                        responsible for economic 
                                        development or juvenile justice 
                                        programs in the State;
                                            (cc) individuals who 
                                        represent an Indian tribe or 
                                        tribal organization, as such 
                                        terms are defined in section 
                                        166(b); and
                                            (dd) State agency officials 
                                        responsible for education 
                                        programs in the State, including 
                                        chief executive officers of 
                                        community colleges and other 
                                        institutions of higher 
            (2) Diverse and distinct representation.--The members of the 
        State board shall represent diverse geographic areas of the 
        State, including urban, rural, and suburban areas.
            (3) No representation of multiple categories.--No person 
        shall serve as a member for more than 1 of--
                    (A) the category described in paragraph (1)(C)(i); 
                    (B) 1 category described in a subclause of clause 
                (ii) or (iii) of paragraph (1)(C).

    (c) Chairperson.--The Governor shall select a chairperson for the 
State board from among the representatives described in subsection 
    (d) Functions.--The State board shall assist the Governor in--
            (1) the development, implementation, and modification of the 
        State plan;
            (2) consistent with paragraph (1), the review of statewide 
        policies, of statewide programs, and of recommendations on 
        actions that should be taken by the State to align workforce 
        development programs in the State in a manner that supports a 
        comprehensive and streamlined workforce development system in 
        the State, including the review and provision of comments on the 
        State plans, if any, for programs and activities of one-stop 
        partners that are not core programs;

[[Page 128 STAT. 1442]]

            (3) the development and continuous improvement of the 
        workforce development system in the State, including--
                    (A) the identification of barriers and means for 
                removing barriers to better coordinate, align, and avoid 
                duplication among the programs and activities carried 
                out through the system;
                    (B) the development of strategies to support the use 
                of career pathways for the purpose of providing 
                individuals, including low-skilled adults, youth, and 
                individuals with barriers to employment (including 
                individuals with disabilities), with workforce 
                investment activities, education, and supportive 
                services to enter or retain employment;
                    (C) the development of strategies for providing 
                effective outreach to and improved access for 
                individuals and employers who could benefit from 
                services provided through the workforce development 
                    (D) the development and expansion of strategies for 
                meeting the needs of employers, workers, and jobseekers, 
                particularly through industry or sector partnerships 
                related to in-demand industry sectors and occupations;
                    (E) the identification of regions, including 
                planning regions, for the purposes of section 106(a), 
                and the designation of local areas under section 106, 
                after consultation with local boards and chief elected 
                    (F) the development and continuous improvement of 
                the one-stop delivery system in local areas, including 
                providing assistance to local boards, one-stop 
                operators, one-stop partners, and providers with 
                planning and delivering services, including training 
                services and supportive services, to support effective 
                delivery of services to workers, jobseekers, and 
                employers; and
                    (G) the development of strategies to support staff 
                training and awareness across programs supported under 
                the workforce development system;
            (4) the development and updating of comprehensive State 
        performance accountability measures, including State adjusted 
        levels of performance, to assess the effectiveness of the core 
        programs in the State as required under section 116(b);
            (5) the identification and dissemination of information on 
        best practices, including best practices for--
                    (A) the effective operation of one-stop centers, 
                relating to the use of business outreach, partnerships, 
                and service delivery strategies, including strategies 
                for serving individuals with barriers to employment;
                    (B) the development of effective local boards, which 
                may include information on factors that contribute to 
                enabling local boards to exceed negotiated local levels 
                of performance, sustain fiscal in