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                                                      PRINTER'S NO. 4043

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2915 Session of 1998


        INTRODUCED BY FLICK, OLASZ, PERZEL, SCHULER, BROWNE,
           L. I. COHEN, CORNELL, HARHART, HENNESSEY, HERMAN, SEYFERT AND
           DALLY, NOVEMBER 2, 1998

        REFERRED TO COMMITTEE ON INTERGOVERNMENTAL AFFAIRS,
           NOVEMBER 2, 1998

                                     AN ACT

     1  Establishing a unified workforce investment system;
     2     restructuring certain administrative functions, procedures
     3     and entities; transferring workforce development functions of
     4     Commonwealth agencies; establishing the Pennsylvania Human
     5     Resources Investment Council; and authorizing local workforce
     6     investment boards.

     7                         TABLE OF CONTENTS
     8  Chapter 1.  Preliminary Provisions
     9  Section 101.  Short title.
    10  Section 102.  Declaration of policy.
    11  Section 103.  Definitions.
    12  Section 104.  Conflicts of interest.
    13  Chapter 3.  Council
    14  Section 301.  Establishment.
    15  Section 302.  Membership.
    16  Section 303.  Powers and duties.
    17  Section 304.  State performance measures.
    18  Chapter 5.  Local Workforce Investment Boards
    19  Section 501.  Establishment.

     1  Section 502.  Membership.
     2  Section 503.  Powers and duties.
     3  Section 504.  Local performance measures.
     4  Chapter 7.  Implementation.
     5  Section 701.  Replacement of State Job Training Coordinating
     6                 Council.
     7  Section 702.  Continuation of Pennsylvania Human Resources
     8                 Investment Council.
     9  Chapter 9.  Miscellaneous Provisions
    10  Section 901.  Construction.
    11  Section 902.  Regulations abrogated.
    12  Section 903.  Severability.
    13  Section 904.  Effective date.
    14     The General Assembly of the Commonwealth of Pennsylvania
    15  hereby enacts as follows:
    16                             CHAPTER 1
    17                       PRELIMINARY PROVISIONS
    18  Section 101.  Short title.
    19     This act shall be known and may be cited as the Workforce
    20  Investment Act.
    21  Section 102.  Declaration of policy.
    22     The General Assembly finds and declares as follows:
    23         (1)  It is the intent of this act to address more
    24     effectively the potential of citizens, employers and
    25     communities in this Commonwealth by:
    26             (i)  Recognizing that the skills and knowledge of the
    27         Commonwealth's workforce are the keys to providing
    28         enhanced opportunities for individuals and economic
    29         competitive advantages for businesses and communities.
    30             (ii)  Expanding and providing for more efficient and
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     1         coordinated administration of workforce investment
     2         activities.
     3             (iii)  Effecting the maximum feasible return on
     4         investment for the citizens of this Commonwealth.
     5             (iv)  Promoting the coordination and integration of
     6         workforce investment, economic development and education
     7         policies.
     8         (2)  The express goals of the Pennsylvania Workforce
     9     Investment System are:
    10             (i)  Economic opportunity for all citizens and
    11         businesses.
    12             (ii)  Economic self-sufficiency and individual
    13         responsibility.
    14             (iii)  An educated workforce with relevant skills for
    15         personal growth and economic prosperity.
    16         (3)  These goals are to be attained through fostering a
    17     dynamic world-class workforce in which citizens and
    18     businesses in this Commonwealth possess the knowledge and
    19     skills to succeed and excel in a highly competitive and
    20     rapidly changing world.
    21         (4)  Achievement of a world-class workforce in this
    22     Commonwealth is best accomplished through a unified workforce
    23     investment system that is dedicated to and operates in
    24     adherence with the following basic philosophy and core
    25     values:
    26             (i)  Economic competitiveness based on improvements
    27         in productivity, quality and service.
    28             (ii)  Excellence and informed choice in education,
    29         training opportunities, workplace preparation and career
    30         decision making.
    19980H2915B4043                  - 3 -

     1             (iii)  A strong work ethic, mutual respect, a
     2         commitment to lifelong learning and the valuing of all
     3         workers and their work.
     4             (iv)  Stewardship of public resources; emphasizing
     5         private sector solutions to workforce investment goals
     6         supplemented by limited government involvement when
     7         necessary.
     8             (v)  The highest quality delivery of market-driven
     9         services which are readily identifiable and easily
    10         accessible and which consider the abilities and work-
    11         support needs of a diverse population.
    12             (vi)  Continuous quality improvement through
    13         cooperation and collaboration among all who participate
    14         and are engaged in this endeavor in order for individuals
    15         to earn family-sustaining wages for economic self-
    16         sufficiency.
    17  Section 103.  Definitions.
    18     The following words and phrases when used in this act shall
    19  have the meanings given to them in this section unless the
    20  context clearly indicates otherwise:
    21     "Agreement of mutual responsibility."  A written plan which
    22  assures that each of the parties responsible for achieving
    23  mutually agreed upon workforce investment goals understands the
    24  responsibilities and obligations to be undertaken by the direct
    25  recipient of public funds, the time frames within which each
    26  obligation is to be completed, the consequences or corrective
    27  action which may exist for failure to comply and the actions to
    28  be undertaken to support the efforts of the applicant.
    29     "Certify."  An approval issued by the Pennsylvania Human
    30  Resources Investment Council to a local workforce investment
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     1  board that satisfies the eligibility requirements established by
     2  the Commonwealth.
     3     "Chief elected executive official."  A mayor or elected
     4  executive in a mayor-council form of government in a city
     5  operating under an optional charter form of government pursuant
     6  to the act of July 15, 1957 (P.L.901, No.399), known as the
     7  Optional Third Class City Charter Law, or if no mayor or elected
     8  executive is elected under an optional charter, the president or
     9  chairperson of the legislative policymaking governing body; a
    10  mayor of a city of the third class operating under a commission
    11  form of government pursuant to the act of June 23, 1931
    12  (P.L.932, No.317), known as The Third Class City Code; a mayor
    13  or elected executive in a home rule charter or optional plan
    14  municipality pursuant to 53 Pa.C.S. Pt. III, Subpt. E (relating
    15  to home rule and optional plan government) or if no mayor or
    16  elected executive is elected in the home rule charter or
    17  optional plan municipality, the president or chairperson of the
    18  legislative policymaking governing body; the mayor of a city of
    19  the first class under the act of April 21, 1949 (P.L.665,
    20  No.155), known as the First Class City Home Rule Act; a mayor of
    21  a borough or incorporated town; the chairperson of the board of
    22  county commissioners; the chairperson of the board of township
    23  commissioners; or the chairperson of the board of township
    24  supervisors.
    25     "Council."  The Pennsylvania Human Resources Investment
    26  Council established in section 301.
    27     "Customer."  An employer, job seeker or jobholder who wishes
    28  to engage in workforce investment activities that fall within
    29  the purview of this act. The term does not include a service
    30  provider.
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     1     "Employment."  Work that is employer based or
     2  entrepreneurial.
     3     "Facilitated assistance."  Person-to-person interaction to
     4  assist a customer:
     5         (1)  With using the information access system.
     6         (2)  With securing services such as customer assessment,
     7     employment opportunity development, employment search and
     8     referral, career exploration, postemployment services and
     9     customer case management.
    10         (3)  By enhancing the ability of the customer to become
    11     more self-directed in utilizing the workforce investment
    12     system.
    13         (4)  By holding the customer accountable to an agreement
    14     of mutual responsibility.
    15     "Information access."  An information system which:
    16         (1)  Makes use of a combination of technologies and means
    17     of access.
    18         (2)  Is readily identifiable and easily accessible.
    19         (3)  Enables the sharing of workforce investment
    20     information across all parts of the workforce investment
    21     system and is available to all customers.
    22     "Invest."  To oversee and monitor funds appropriated by the
    23  Federal Government and designated by the Governor or funds
    24  specifically appropriated by State government for workforce
    25  investment purposes according to a strategy established by the
    26  Pennsylvania Human Resources Investment Council to receive an
    27  acceptable return on investment. This term includes evaluating
    28  unified workforce investment plans submitted by local workforce
    29  investment boards and other purposes or programs administered by
    30  the council.
    19980H2915B4043                  - 6 -

     1     "Lifelong learning."  Formal and informal learning and
     2  training activities, as well as work experience, that develop
     3  the knowledge and the learning skills of students and customers
     4  to enhance learning, employability and the quality of life for
     5  each individual in society.
     6     "Local career development marketplace" or "Team Pennsylvania
     7  Career Link."  A collaborative network of service providers
     8  designed to deliver to workforce investment customers high-
     9  quality information access, facilitated assistance, lifelong
    10  learning and transitional or work support services or
    11  activities, combined with economic investment services and
    12  activities, at a county or multicounty level.
    13     "Local workforce investment board."  An entity certified by
    14  the Pennsylvania Human Resources Investment Council and
    15  organized to further the goals and purpose of this act.
    16     "Municipality."  Every county, city, borough, incorporated
    17  town, township and home rule or optional plan or optional
    18  charter municipality.
    19     "Participating agencies."  All of the following:
    20         (1)  The Department of Aging.
    21         (2)  The Department of Community and Economic
    22     Development.
    23         (3)  The Department of Education.
    24         (4)  The Department of Labor and Industry.
    25         (5)  The Department of Public Welfare.
    26         (6)  An agency designated by Executive Order.
    27         (7)  Any agency that oversees and monitors funds
    28     appropriated by the Federal Government and designated by the
    29     Governor or funds specifically appropriated by State
    30     government for workforce investment that falls under the
    19980H2915B4043                  - 7 -

     1     authority of the Pennsylvania Human Resources Investment
     2     Council.
     3     "Return on investment."  The economic or social impact of
     4  public workforce investments evaluated according to cost benefit
     5  criteria determined by the Pennsylvania Human Resources
     6  Investment Council to measure and maximize the beneficial
     7  results in the advancement of the goals and purposes of this
     8  act. The criteria include the components of cost, time and
     9  opportunities. Opportunities may include social and economic
    10  benefits of job preparation and placement that enable people to
    11  obtain and retain employment, thereby eliminating dependency on
    12  assistance and freeing funds for reinvestment in people and
    13  developing capacity to improve a region's ability to attract and
    14  retain business and industry. The replacement of private
    15  investments in workforce development with public funds shall be
    16  applied in the negative in evaluating return on investment.
    17     "Service provider."  Any individual, partnership or
    18  corporation, whether for profit or nonprofit, including the
    19  principals thereof, or secondary or postsecondary educational
    20  institution or intermediate unit or any public agency, whose
    21  business, in whole or in part, is to provide workforce
    22  investment services and activities, based upon agreement or
    23  contract, for monetary remuneration.
    24     "System."  The unified system for the delivery of workforce
    25  investment programs to assure a well-educated highly skilled
    26  workforce for the Commonwealth.
    27     "Transitional support."  Wage loss or subsistence programs,
    28  such as public assistance, unemployment compensation and
    29  workers' compensation, that are designed to provide temporary
    30  income during a defined interim period to enable a customer to
    19980H2915B4043                  - 8 -

     1  pursue employment opportunities and obtain and engage in
     2  employment.
     3     "Work support."  Assistance that helps a customer secure and
     4  maintain employment, such as assistance in securing child care,
     5  transportation, vocational rehabilitation goods or services or
     6  case management.
     7     "Workforce development" or "workforce investment."
     8  Information access, facilitated assistance, lifelong learning
     9  activities, including, but not limited to, vocational education
    10  programs, programs in community colleges, postsecondary
    11  education institutions authorized to grant associate,
    12  baccalaureate and advanced degrees and transitional support and
    13  work support services or activities which enable customers to
    14  engage in or prepare for employment opportunities.
    15  Section 104.  Conflicts of interest.
    16     (a)  Voting.--A member of the Human Resources Investment
    17  Council or a member of a local workforce investment board may
    18  not vote on any substantive or financial decision that affects
    19  the member's organization directly or indirectly through
    20  organizational partnerships.
    21     (b)  Lobbying.--An individual who is registered as a lobbyist
    22  under the act of September 30, 1961 (P.L.1778, No.712), known as
    23  the Lobbying Registration and Regulation Act, may not serve as a
    24  member of the Human Resources Investment Council or a member of
    25  a local workforce investment board.
    26     (c)  Policy.--The council shall adopt a conflict of interest
    27  policy designed to preclude any material conflict of interest or
    28  impropriety with respect to the duties and activities of members
    29  of the Human Resources Investment Council or members of local
    30  workforce investment boards or their officers, employees and
    19980H2915B4043                  - 9 -

     1  members of their immediate families.
     2                             CHAPTER 3
     3                              COUNCIL
     4  Section 301.  Establishment.
     5     The Pennsylvania Human Resources Investment Council is
     6  established to implement a unified system for the delivery of
     7  workforce investment programs to assure a well educated, highly
     8  skilled workforce. The council is vested with the authority to
     9  coordinate the Commonwealth's existing Federal and State
    10  workforce investment programs into an integrated system, which
    11  directs Federal, State and local resources to existing programs
    12  with track records of success and new programs of recognized
    13  potential.
    14  Section 302.  Membership.
    15     (a)  General rule.--The council shall be established in
    16  accordance with the compositional requirements for state human
    17  resource investment councils set forth in the Workforce
    18  Investment Act (Public Law 105-220, 112 Stat. 936) or a
    19  federally permissible alternative. A majority of the membership
    20  of the council shall be private sector employer representatives.
    21  In addition, the following persons shall serve on the council:
    22         (1)  The Governor.
    23         (2)  The Secretary of Aging.
    24         (3)  The Secretary of Community and Economic Development.
    25         (4)  The Secretary of Education.
    26         (5)  The Secretary of Labor and Industry.
    27         (6)  The Secretary of Public Welfare.
    28         (7)  Four members of the General Assembly. Two members
    29     shall be appointed by the President pro tempore of the
    30     Senate, one of whom shall be recommended by the Minority
    19980H2915B4043                 - 10 -

     1     Leader of the Senate; two members shall be appointed by the
     2     Speaker of the House of Representatives, one of whom shall be
     3     recommended by the Minority Leader of the House of
     4     Representatives.
     5         (8)  The following shall be appointed by the Governor for
     6     a term of at least two years:
     7             (i)  Private sector employer representatives from
     8         various regions of this Commonwealth.
     9             (ii)  Chief elected executive officials representing
    10         both cities and counties.
    11             (iii)  Representatives of individuals and
    12         organizations that have experience with youth activities.
    13             (iv)  Representatives of individuals and
    14         organizations that have expertise in the delivery of
    15         workforce investment activities, including chief
    16         executive officers of community colleges and community-
    17         based organizations.
    18             (v)  Representatives of organized labor.
    19             (vi)  Other individuals or representatives of
    20         entities as may be deemed appropriate by the Governor.
    21     (b)  Chairperson.--The Governor shall designate, to serve at
    22  the Governor's pleasure, a member from the private sector to
    23  serve as chairperson of the council. The chairperson shall be
    24  authorized to designate another member to preside at meetings in
    25  the chairperson's absence.
    26     (c)  Designees.--Each member may designate an individual to
    27  represent the member at a specified meeting. A designee may not
    28  vote but may otherwise act on behalf of the member. The
    29  designation must be in writing and be delivered to the
    30  chairperson and shall be in effect only for the meeting date
    19980H2915B4043                 - 11 -

     1  specified.
     2     (d)  Staff.--The council may employ a limited staff to
     3  implement the decisions of the council.
     4     (e)  Meetings.--The council shall meet quarterly and
     5  additionally at such time and places as it shall determine.
     6  Special meetings may be called by the chairperson or at the
     7  request of a majority of the members.
     8     (f)  Executive committee.--An executive committee that
     9  includes representation from the private sector may be
    10  established and authorized under the council to oversee and
    11  monitor the Commonwealth's unified workforce investment system.
    12  The organization framework may utilize existing staff structure
    13  or develop its own staffing arrangement.
    14     (g)  Subcommittees.--The chairperson may establish
    15  subcommittees, appoint members and delegate duties to
    16  subcommittees as the chairperson deems necessary to fulfill the
    17  council's responsibilities. A subcommittee shall be chaired by a
    18  member of the council.
    19     (h)  Compensation.--Members shall receive no compensation,
    20  but shall be entitled to receive an allowance for expenses
    21  incurred in the performance of duties.
    22     (i)  Personnel, equipment, resources.--The policy and program
    23  offices of the Department of Aging, the Department of Community
    24  and Economic Development, the Department of Education, the
    25  Department of Labor and Industry and the Department of Public
    26  Welfare shall provide such personnel, equipment and resources as
    27  are required for the functioning of the council.
    28  Section.  303.  Powers and duties.
    29     The council, in furtherance of sections 102 and 104, shall
    30  have the following powers and duties:
    19980H2915B4043                 - 12 -

     1         (1)  To develop, adopt and assure adherence to systemwide
     2     standards, principles, policies, goals, financial resource
     3     investment priorities and strategies for workforce investment
     4     and workforce investment return on investment criteria to
     5     maintain continuously a competitive advantage for this
     6     Commonwealth.
     7         (2)  To monitor and assure collaboration of the
     8     investment of all funds specifically appropriated by the
     9     Federal Government and designated by the Governor or funds
    10     specifically appropriated by State government, for workforce
    11     investment, under any of the following:
    12             (i)  The Adult Education Act (Public Law 89-750, 20
    13         U.S.C. § 1201 et seq.).
    14             (ii)  The Carl D. Perkins Vocational and Applied
    15         Technology Education Act (Public Law 88-210, 20 U.S.C. §
    16         2301 et seq.).
    17             (iii)  The Community Services Block Grant Act (Public
    18         Law 97-35, 95 Stat. 511).
    19             (iv)  The Food Stamp Act of 1977 (Public Law 88-525,
    20         7 U.S.C. § 2011 et seq.).
    21             (v)  The Job Training Partnership Act (Public Law 97-
    22         300, 29 U.S.C. § 1501 et seq.).
    23             (vi)  The National and Community Service Trust Act of
    24         1993 (Public Law 103-82, 107 Stat. 785).
    25             (vii)  Title V of the Older Americans Act of 1965
    26         (Public Law 89-73, 42 U.S.C. § 3056 et seq.).
    27             (viii)  The Personal Responsibility and Work
    28         Opportunity Reconciliation Act of 1996 (Public Law 104-
    29         193, 110 Stat. 2105).
    30             (ix)  The School-to-Work Opportunities Act of 1994
    19980H2915B4043                 - 13 -

     1         (Public Law 103-239, 108 Stat. 568).
     2             (x)  The Trade Act of 1974 (Public Law 93-618, 19
     3         U.S.C. § 2101 et seq.).
     4             (xi)  The Vocational Rehabilitation Act (41 Stat.
     5         735, 29 U.S.C. § 31 et seq.).
     6             (xii)  The Wagner-Peyser Act (48 Stat. 113, 29 U.S.C.
     7         § 49 et seq.).
     8             (xiii)  The act of June 2, 1915 (P.L.736, No.338),
     9         known as the Workers' Compensation Act.
    10             (xiv)  The act of December 5, 1936 (2nd Sp.Sess.,
    11         1937 P.L.2897, No.1), known as the Unemployment
    12         Compensation Law.
    13             (xv)  Article XIX-A of the act of March 10, 1949
    14         (P.L.30, No.14), known as the Public School Code of 1949.
    15             (xvi)  The act of December 20, 1985 (P.L.492,
    16         No.116), known as the Customized Job Training Act.
    17             (xvii)  The act of October 22, 1986 (P.L.1452,
    18         No.143), known as the Pennsylvania Adult Basic and
    19         Literacy Education Act.
    20             (xviii)  Any other Federal or State statute of
    21         similar intent and purpose.
    22         (3)  To examine Federal and State statutes and
    23     regulations in order to assess whether they present barriers
    24     to achieving the provisions of this act and to recommend to
    25     the Federal Government, the Governor and the General Assembly
    26     amendments to statutes and regulations and waivers for
    27     regulations to eliminate barriers and to promote the
    28     provisions of this act.
    29         (4)  To develop and disseminate appropriate and necessary
    30     research and statistical information, to set the requisite
    19980H2915B4043                 - 14 -

     1     protocols and standards for common data reference, to engage
     2     in or sponsor studies to identify workforce investment system
     3     needs and to gather and disseminate information.
     4         (5)  To establish and assure adherence to performance-
     5     based quality assurance metrics and standards designed to
     6     optimize system function, performance and effectiveness.
     7         (6)  To evaluate the five-year unified workforce
     8     investment plans and investment proposals submitted by local
     9     workforce investment boards and to make recommendations for
    10     the investment of public money in plans or parts of plans
    11     which meet the objectives established by the council.
    12         (7)  To implement mechanisms to secure appropriate input
    13     from service providers in the development of polices, local
    14     performance measures or investment strategies.
    15         (8)  To establish and maintain a universally accessible
    16     information access system which enables the system to
    17     function and serve its customers effectively.
    18         (9)  To contract or develop written agreements or
    19     memoranda of understanding with participating agencies for
    20     the administration and management of workforce investment
    21     programs and activities under the responsibility of the
    22     council.
    23         (10)  To provide technical assistance to local workforce
    24     investment boards to assist them in maximizing the return on
    25     investment of public money.
    26         (11)  To set the criteria for local career development
    27     market places and service provider participation, to adopt an
    28     official system logo designation and to develop a systemwide
    29     marketing program.
    30         (12)  To certify local workforce investment boards, by
    19980H2915B4043                 - 15 -

     1     giving consideration to:
     2             (i)  The proposed board's capability to effectively
     3         monitor and assure collaboration of workforce investment
     4         programs.
     5             (ii)  The proposed board's capacity to monitor and
     6         assure collaboration of the workforce investment programs
     7         in accordance with the Workforce Investment Act (Public
     8         Law 105-220, 112 Stat. 936).
     9             (iii)  The portion of the labor market or
    10         geographical area to be served by the proposed board.
    11         (13)  To recommend necessary action when a local
    12     workforce investment board fails to act, acts improperly or
    13     fails to meet the conditions of its unified local workforce
    14     investment plan in which Federal or State funds have been
    15     invested.
    16         (14)  To recognize the potential of citizens, employers
    17     and communities in this Commonwealth by affirming the
    18     continued existence and independence of all current funding
    19     streams and programs for persons with disabilities while
    20     ensuring that employment-related programs for individuals
    21     with disabilities operate efficiently.
    22         (15)  To assess the economic and workforce needs of this
    23     Commonwealth and to develop a unified workforce investment
    24     system that builds on available services and resources to
    25     effectively meet these Statewide needs.
    26         (16)  To establish cooperative and collaborative
    27     relationships with other states' workforce investment system
    28     governing bodies.
    29         (17)  To assure the implementation of Federal and State
    30     statutory mandates that fall within the purview of the
    19980H2915B4043                 - 16 -

     1     system.
     2         (18)  To promulgate regulations that are reasonable,
     3     necessary and suitable to carry out this act.
     4         (19)  To compile an annual report that shall be submitted
     5     to each member to the General Assembly by March 1 of each
     6     year and that the report shall include:
     7             (i)  An explanation of the process used to negotiate
     8         the level of State performance.
     9             (ii)  The level of State performance achieved by
    10         referring to the State performance measures set forth in
    11         section 304.
    12             (iii)  The anticipated course of actions to be taken
    13         by the council to encourage continuous improvement in the
    14         system.
    15             (iv)  A list of the membership of the council,
    16         including name, affiliation, address, telephone number,
    17         fax number and e-mail address.
    18             (v)  An explanation of the process used to negotiate
    19         levels of local performance.
    20             (vi)  A list of all certified local workforce
    21         investment boards in this Commonwealth, including each
    22         board's negotiated level of local performance, each
    23         board's level of performance attained and the action
    24         taken with respect to any board that failed to meet its
    25         negotiated level of local performance.
    26             (vii)  A copy of the annual report submitted by each
    27         local workforce investment board to the council.
    28  Section 304.  State performance measures.
    29     (a)  General rule.--State performance measures for the
    30  Commonwealth shall consist of the indicators set forth in this
    19980H2915B4043                 - 17 -

     1  section, and the council shall have a duty to monitor compliance
     2  with the State performance measures.
     3     (b)  Core indicators of performance.--The core indicators of
     4  performance for employment and training activities shall consist
     5  of:
     6         (1)  Entry into unsubsidized employment.
     7         (2)  Retention in unsubsidized employment six months
     8     after entry into the employment.
     9         (3)  Earnings received in unsubsidized employment six
    10     months after entry into the employment.
    11         (4)  Attainment of a recognized credential relating to
    12     achievement of educational skills, that may include
    13     attainment of a secondary school diploma or its recognized
    14     equivalent, or occupational skills, by participants who enter
    15     unsubsidized employment or by participants who are eligible
    16     youth between the ages of 19 years old and 21 years old and
    17     who enter postsecondary education, advanced training or
    18     unsubsidized employment.
    19     (c)  Customer satisfaction indicator of performance.--The
    20  customer satisfaction indicator of performance shall consist of
    21  customer satisfaction of employers and participants services
    22  received from workforce investment activities and may be
    23  measured through surveys conducted after the conclusion of
    24  participation in workforce investment activities. Customer
    25  satisfaction may be measured through surveys conducted after the
    26  conclusion of participation in the workforce investment
    27  activities.
    28                             CHAPTER 5
    29                 LOCAL WORKFORCE INVESTMENT BOARDS
    30  Section 501.  Establishment.
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     1     (a)  Approval by Governor.--
     2         (1)  The Governor shall automatically approve any request
     3     for designation as a local area:
     4             (i)  From any unit of local government with a
     5         population of 500,000 or more.
     6             (ii)  Of the area served by a rural concentrated
     7         employment program grant recipient of demonstrated
     8         effectiveness that served as a service delivery area or
     9         substate area under the Job Training Partnership Act
    10         (Public Law 97-300, 29 U.S.C. § 1501 et seq.), if the
    11         grant recipient has submitted the request.
    12         (2)  The Governor shall approve any request, made not
    13     later than the date of submission of the initial State plan,
    14     for temporary designation as a local area from any unit of
    15     general local government, including a combination of such
    16     units, with a population of 200,000 or more and that was a
    17     service delivery area under the Job Training Partnership Act
    18     on the effective date of the Workforce Investment Act (Public
    19     Law 105-220, 112 Stat. 936), if the Governor determines that
    20     the local area:
    21             (i)  Performed successfully, in each of the last two
    22         years prior to the request for which data are available,
    23         in the delivery of services to participants under Part A
    24         or Title II and Title III of the Job Training Partnership
    25         Act.
    26             (ii)  Has sustained the fiscal integrity of the funds
    27         used by the local area to carry out activities.
    28         (3)  A temporary designation period under paragraph (2)
    29     shall be not more than two years. The temporary designation
    30     period shall be extended for an additional three years, if
    19980H2915B4043                 - 19 -

     1     the local area substantially met the local performance
     2     measures for the local area and sustained the fiscal
     3     integrity of the funds used by the area to carry out
     4     activities.
     5         (4)  No local workforce investment board shall operate
     6     unless and until a written request is submitted to the
     7     council and is certified under section 303(12).
     8     (b)  Purpose.--The purpose of each local workforce investment
     9  board shall be to promote effective workforce investment
    10  programs in a geographic area consistent with labor market or
    11  standard metropolitan statistical areas and areas in which
    12  related services are provided under Federal and State programs.
    13     (c)  Accountability.--Each local workforce investment board
    14  shall be accountable for the proper administration of any
    15  workforce investment funds it receives.
    16  Section 502.  Membership.
    17     (a)  Composition.--
    18         (1)  Each local workforce investment board shall be made
    19     up of at least a majority of private sector representatives
    20     and shall include representatives from employers in the
    21     regions with key industry clusters or economic sectors, both
    22     critical and emerging, and an appropriate mix of small,
    23     medium and large firms adequately representing, to the extent
    24     possible, urban, suburban and rural interests. Each local
    25     workforce investment board shall also include representatives
    26     from organized labor or other representatives of employees,
    27     representatives of local educational entities,
    28     representatives of economic development agencies,
    29     representatives of the Team Pennsylvania Career Link center
    30     and individuals representing community groups or
    19980H2915B4043                 - 20 -

     1     organizations and may also include other individuals or
     2     representatives of entities as may be deemed appropriate.
     3         (2)  The membership shall select a chairperson from the
     4     private sector representatives.
     5         (3)  Each local workforce investment board may hire
     6     limited staff for the management of the Commonwealth's
     7     investment in the local workforce investment board.
     8     (b)  Manner of appointment.--Each member of a local workforce
     9  investment board shall be appointed by the county or counties
    10  that participate in the board as follows:
    11         (1)  If only one county participates on the board, the
    12     chief elected executive official shall appoint the members.
    13         (2)  If two or more counties participate on the board,
    14     the chief elected executive official of each county shall
    15     appoint members in accordance with a written agreement of the
    16     counties in the local area.
    17  Section 503.  Powers and duties.
    18     (a)  General rule.--A local workforce investment board shall,
    19  in order to develop and implement a unified workforce investment
    20  plan for the investment and utilization of private and public
    21  resources to meet the current and future workforce investment
    22  needs of its region in furtherance of sections 102 and 104, have
    23  the following powers and duties:
    24         (1)  To organize and elect a chairperson.
    25         (2)  To assess the economic and workforce needs of the
    26     area and to develop a unified plan that builds on available
    27     services and resources to effectively meet the workforce and
    28     economic needs of the area.
    29         (3)  To implement mechanisms to secure appropriate input
    30     from providers in the development of policies, performance
    19980H2915B4043                 - 21 -

     1     standards or investment strategies.
     2         (4)  To assist in the development of and collaborate with
     3     local career development marketplaces.
     4         (5)  To develop, adopt and assure adherence to local
     5     performance standards, quality assurance metrics and
     6     standards and applied operating principles, which are
     7     consistent with systemwide criteria.
     8         (6)  To establish cooperative and collaborative
     9     relationships with other local workforce investment boards
    10     and with workforce investment system governing bodies of
    11     other states.
    12         (7)  To use local workforce investment funds to purchase
    13     for customers, under an agreement of mutual responsibility,
    14     any of the following services:
    15             (i)  Facilitated assistance.
    16             (ii)  Lifelong learning.
    17             (iii)  Work support services or activities.
    18         (8)  To invest local workforce investment funds in
    19     customers, who are eligible to receive the funds under
    20     applicable law or regulation, for the purchase of facilitated
    21     assistance, lifelong learning or work support services or
    22     activities under an agreement of mutual responsibility.
    23     (b)  Unified workforce investment plan.--Each local workforce
    24  investment board shall submit for approval a five-year unified
    25  workforce investment plan to the chief elected executive officer
    26  in the county or counties served by the board, and after that
    27  approval is obtained the board shall submit the plan to the
    28  council for its approval. The unified workforce investment plan
    29  shall be developed through a process that includes the
    30  opportunity for participation by current and potential customers
    19980H2915B4043                 - 22 -

     1  and service providers and shall include the following:
     2             (i)  An explanation of how the investment of public
     3         funds complements and is not a substitute for the
     4         investment of private funds.
     5             (ii)  A description of how the plan supports and
     6         seeks to accomplish the objectives established by the
     7         council and by the local workforce investment board.
     8             (iii)  A description of how the plan will further the
     9         Commonwealth's work placement requirements for Federal
    10         and State transition support programs.
    11             (iv)  An explanation of how the plan meets the
    12         current and future workforce and economic needs of the
    13         local area, including the following:
    14                 (A)  Employment and training priorities and
    15             objectives based on an analysis of local labor market
    16             needs and critical success factors.
    17                 (B)  Needs of job seekers and employers.
    18                 (C)  Potential for utilizing workplaces as
    19             locations for education and training.
    20                 (D)  Incentives or motivation to encourage job
    21             seekers and employees to obtain needed skills and
    22             knowledge.
    23                 (E)  Work-placement requirements for Federal and
    24             State welfare programs.
    25                 (F)  Furthering the region's economic development
    26             strategy.
    27             (v)  An accounting of the return on investment and
    28         other local performance standards and criteria.
    29             (vi)  An accounting of the types of products or
    30         services to be purchased and the process used to secure
    19980H2915B4043                 - 23 -

     1         those products or services. This subparagraph includes
     2         assessment, testing, education, training, job
     3         development, job placement, transitional or work support
     4         services, acquired through the use of direct purchase,
     5         vouchers, performance-based contracting or other
     6         effective methods.
     7             (vii)  A description of eligible service providers
     8         and the types of services to be provided.
     9             (viii)  The total amount of Federal, State and local
    10         funds for which the board is responsible.
    11             (ix)  The submission of an annual report to the
    12         council by a deadline to be determined by the council.
    13         The report shall include a list of the membership of the
    14         local workforce investment board including the name,
    15         affiliation, address, telephone number, fax number and e-
    16         mail address, the negotiated local level of performance,
    17         the level of performance achieved, including an analysis
    18         of its strengths and weaknesses, programs participated in
    19         and a list of the local eligible service providers.
    20  Section 504.  Local performance measures.
    21     (a)  General.--Local performance measures shall consist of
    22  the indicators set forth in this section.
    23     (b)  Core indicators of performance.--The core indicators of
    24  performance for employment and training activities shall consist
    25  of:
    26         (1)  Entry into unsubsidized employment.
    27         (2)  Retention in unsubsidized employment six months
    28     after entry into the employment.
    29         (3)  Earnings received in unsubsidized employment six
    30     months after entry into the employment.
    19980H2915B4043                 - 24 -

     1         (4)  Attainment of a recognized credential relating to
     2     achievement of educational skills, that may include
     3     attainment of a secondary school diploma or its recognized
     4     equivalent, or occupational skills, by participants who enter
     5     unsubsidized employment or by participants who are eligible
     6     youth between the ages 19 years old and 21 years old who
     7     enter postsecondary education, advanced training or
     8     unsubsidized employment.
     9     (c)  Customer satisfaction indicator of performance.--The
    10  customer satisfaction indicator of performance shall consist of
    11  customer satisfaction of employers and participants services
    12  received from workforce investment activities and may be
    13  measured through surveys conducted after the conclusion of
    14  participation in workforce investment activities. Customer
    15  satisfaction may be measured through surveys conducted after the
    16  conclusion of participation in the workforce investment
    17  activities.
    18                             CHAPTER 7
    19                           IMPLEMENTATION
    20  Section 701.  Replacement of State Job Training Coordinating
    21                 Council.
    22     The Pennsylvania Human Resources Investment Council shall
    23  replace the State Job Training Coordinating Council.
    24  Section 702.  Continuation of Pennsylvania Human Resources
    25                 Investment Council.
    26     The Pennsylvania Human Resources Investment Council
    27  established by this act shall be deemed a continuation of the
    28  Pennsylvania Human Resources Investment Council, as part of Team
    29  Pennsylvania, established by Executive Order No. 1997-7
    30  (relating to Pennsylvania Human Resources Investment Council).
    19980H2915B4043                 - 25 -

     1                             CHAPTER 9
     2                      MISCELLANEOUS PROVISIONS
     3  Section 901.  Construction.
     4     This act, being necessary for the welfare of this
     5  Commonwealth and its citizens, shall be liberally construed to
     6  effect its purposes.
     7  Section 902.  Regulations abrogated.
     8     As much of the appendix to 4 Pa. Code Ch. 9 Subch. B
     9  (relating to organizational charts) as relates to the State Job
    10  Training Coordinating Council is abrogated.
    11  Section 903.  Severability.
    12     The provisions of this act are severable. If any provision of
    13  this act or its application to any person or circumstance is
    14  held invalid, the invalidity shall not affect other provisions
    15  or applications of this act which can be given effect without
    16  the invalid provision or application.
    17  Section 904.  Effective date.
    18     This act shall take effect in 60 days.








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