WIOA transition and workforce board governance

The signed original includes the same letter and attachments. View the signed original.

                                                         CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                WIOA Governance
               ADVISORY SYSTEM                           CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR                       ETA - OWI
             Washington, D.C. 20210                      DATE
                                                          April 15, 2015


ADVISORY:       TRAINING AND EMPLOYMENT GUIDANCE LETTER WIOA NO. 27-14
                OPERATING GUIDANCE for the WORKFORCE INNOVATION AND
                OPPORTUNITY ACT (referred to as WIOA or the Opportunity Act)

TO:             STATE WORKFORCE AGENCIES
                STATE WORKFORCE ADMINISTRATORS
                STATE WORKFORCE LIAISONS
                STATE AND LOCAL WORKFORCE BOARD CHAIRS AND DIRECTORS

FROM:           PORTIA WU /s/
                Assistant Secretary

SUBJECT:        Workforce Innovation and Opportunity Act Transition Authority for Immediate
                Implementation of Governance Provisions

1. Purpose. This guidance clarifies the governance-related activities that States must
   complete by July 1, 2015, which is the beginning of Program Year 2015, in order to ensure
   an orderly transition to the Workforce Innovation and Opportunity Act (WIOA).
   Additionally, this guidance summarizes other governance-related activities that the
   Department encourages States to complete as soon as possible, but are not required by July
   1, 2015.

   WIOA was signed into law on July 22, 2014. WIOA is designed to help job seekers access
   employment, education, training, and support services to succeed in the labor market and to
   match employers with the skilled workers they need to compete in the global economy.
   WIOA supersedes the Workforce Investment Act of 1998 and amends the Adult Education
   and Family Literacy Act, the Wagner-Peyser Act, and the Rehabilitation Act of 1973. In
   general, the Act takes effect on July 1, 2015, the first full program year after enactment,
   unless otherwise noted.

   The Departments of Labor and Education are working to publish a set of regulations
   implementing WIOA. On April 9th, the Federal Register posted five Notices of Proposed
   Rulemaking (NPRMs) implementing the Opportunity Act on its Web site for public
   inspection, https://www.federalregister.gov/public-inspection, which offers a preview of
   documents scheduled to publish soon in the Federal Register. The NPRMs will be formally
   published in the Federal Register on April 16th. Comments should be submitted in
   accordance with the process outlined in the NPRMs, including by visiting
   http://www.regulations.gov. The comment period will be open for 60 days, and will close on
   June 15, 2015.

 RESCISSIONS                                             EXPIRATION DATE
 None                                                    Continuing

   In order to continue implementation prior to the final rule, a series of WIOA Operating
   Guidance documents that provide the needed implementation information will be issued in
   the form of Training and Employment Guidance Letters (TEGLs). These Operating Guidance
   documents on WIOA will inform the workforce system how to begin the important planning
   and reorganization necessary to comply with new WIOA statutory requirements for the
   upcoming Program Year 2015 (beginning July 1, 2015). The Operating Guidance TEGLs
   will provide a framework for program activities until the regulations are finalized. This
   TEGL is one in the ongoing series of Guidance.

2. References.
   • See Attachment I.

3. Application of WIOA Transition Provisions. Section 503 of WIOA provides the Secretary
   of Labor with the authority to take such actions as the Secretary determines to be appropriate
   to provide for the orderly transition from the Workforce Investment Act of 1998 to WIOA. In
   accordance with this authority, the Department will require States to immediately take the
   described actions in this guidance to implement the governance provisions of WIOA. These
   actions will maximize the State's opportunity for more timely and effective transition to
   WIOA.

4. Appointment of WIOA-Compliant State Workforce Development Board. Most
   provisions of WIOA take effect on July 1, 2015, including those related to State and local
   governance of the workforce system. As such, the Department expects Governors to
   immediately constitute a WIOA-compliant State Workforce Development Board (State
   Board) to initiate and oversee critical transition activities, including the designation of local
   workforce development areas, the identification of regions, the development of criteria for
   Local Board appointments, and beginning the State planning process. The establishment of a
   WIOA-compliant State Board will enable the State to initiate these actions critical to
   transition, and position the State for implementation of the provisions that go into effect July
   1, 2015 and beyond.

   The State Board represents a wide variety of individuals, businesses, and organizations
   throughout the State. WIOA is designed to help job seekers and workers access employment,
   education, training, and support services needed to succeed in the labor market and to match
   employers with the skilled workers needed to compete in the global economy. Further, the
   State Board must take a leadership role to ensure that the one-stop system in each State is
   customer driven, for both job seekers and employers. This effort includes aligning federal
   investments in job training, integrating service delivery across programs, and ensuring that
   the workforce system is job-driven and matches employers with skilled individuals.
   The State Board will serve as a convener of State, regional, and local workforce system
   partners to enhance the capacity and performance of the workforce development system;
   align and improve employment, training, and education programs, and through these efforts,
   promote economic growth. As a strategic convener, the State Board promotes partnerships
   and engages key stakeholders. This role can only be accomplished if each State Board

member is an active participant in the business of the board. State Board members must
actively participate and collaborate closely with the partners of the workforce development
system, including public and private organizations. This engagement is crucial in the State
Board's role to help integrate and align a more effective job-driven workforce investment
system that invests in the connection between education and the career preparation
development system.

A. Criteria for Selection and Appointment of State Board Members. Attachment II provides
   the specific State Board membership requirements and Governors must appoint board
   members in accordance with Attachment II. While similar to WIA, the new statute does
   introduce changes to several membership requirements and criteria for the selection of
   board members. When appointing a WIOA-compliant Board, the Governor must follow
   the criteria provided in this guidance until the final regulations take effect.

   The State Board composition consists of: a majority of business representatives, who are
   appointed from among individuals nominated by State business organizations and
   business trade associations; at least 20 percent of representatives of the workforce,
   including two or more representatives of labor organizations nominated by State labor
   federations and at least one representative of a joint labor-management apprenticeship
   program; and government representatives constituting the remainder. The membership of
   the State Board must meet the requirements of WIOA 101(b)(1)(described in Attachment
   II) and must represent diverse geographic areas of the State, including urban, rural, and
   suburban areas. WIOA section 101(b)(2) also states that the chairperson of the State
   Board must be selected by the Governor from among the business representatives. As a
   general condition of State Board membership, all representatives must have optimum
   policy-making authority. Because WIOA sec. 101(d) adds State Board functions that were
   not included in the Workforce Investment Act (WIA), such as identifying and
   disseminating information on best practices and developing and reviewing statewide
   policies affecting the coordinated provision of services through the State's one-stop
   delivery system, all members, not just those representing the business community, must
   have optimum policy-making authority to accomplish the purposes of WIOA, and to
   conduct the State Board required functions. Additionally, representatives appointed from
   the optional membership categories including representatives of community based
   organizations addressing the employment, training, or education needs of individuals with
   barriers to employment including organizations that serve veterans, individuals with
   disabilities, and eligible youth, including organizations that serve out of school youth
   (OSY) must demonstrate "experience and expertise" in these fields.

   The Department considers an individual that can reasonably be expected to speak
   affirmatively on behalf of the entity they represent and to commit that entity to a chosen
   course of action to have "optimum policy-making authority." Additionally, the
   Department considers an individual to have "demonstrated experience and expertise" if
   they have documented leadership in developing or implementing workforce development,
   human resources, training and development, or a core program function.

   The Department encourages the Governor to take a broad and strategic view when
   appointing members of the State Board, and also in establishing processes that it will use
   to include necessary perspectives in carrying out State Board functions. For example,
   alignment of required one-stop partner investments is essential to achieving strategic and
   programmatic alignment at the State, regional, and local level. One method for expanding
   the diversity of perspectives on the board is through the appointment of board members
   from the optional membership categories. Including representatives from one-stop partner
   programs and economic development or juvenile justice programs, individuals who
   represent an Indian tribe or tribal organizations, and State agency officials responsible for
   education programs may serve to expand the perspective and experience of the board.
   Governors may also consider appointing representatives of community- based
   organizations that have experience addressing the employment, training, or education
   needs of individuals with barriers to employment, including organizations that serve
   veterans, individuals with disabilities, and youth. Establishing committees comprised of
   such groups may also effectively expand opportunities for stakeholders to participate in
   board decision-making, particularly for representatives of organizations that may no
   longer sit on the State Board.

B. New Multi-entity Representation Limitations. While WIA permitted a single board
   member to satisfy multiple category requirements, WIOA places restrictions on multiple-
   entity representation for State Board members. WIOA section 101(b)(3) prohibits
   members from representing an entity in more than one of the three required categories:
   business representatives, workforce representatives, or government representatives.
   Additionally, a State board member may generally not represent more than one entity
   within a category. For example, a single representative within the workforce category
   could not satisfy the membership requirements for both a Labor representative and a
   Registered Apprenticeship representative, even if they would otherwise satisfy the criteria
   for each category individually.

   However, where a single government agency is responsible for multiple required
   programs, the head of the agency may represent each of the required programs. In some
   instances, it would be appropriate and beneficial for one representative to represent
   multiple programs on the State Board. In other instances, such arrangements may limit
   the voice of important partner programs or entities. For example, the head of a State
   Workforce Agency might represent both the WIOA Title I and Wagner-Peyser programs.
   This arrangement could serve to improve integration of these two programs and/or help
   the State Board better achieve the colocation requirements at WIOA 121(e)(3). In other
   cases, the individual and direct representation of State offices for each core program may
   be more beneficial in helping the State Board achieve its functions, such as those related
   to integration of services, the development of career pathways, and the evaluation of core
   programs to achieve continuous improvement. In States where vocational rehabilitation
   services or adult education services fall under the State Workforce Agency, appointing a
   single representative to satisfy the membership requirements of WIOA Title I, Wagner-
   Peyser, adult education, and vocational rehabilitation services may limit the voice and
   influence of a core program partner. Governors have discretion when appointing board

         members to represent government and should ensure appropriate perspectives are
         represented on the Board.

     C. Hire Staff if Desired. The State Board may hire a director (in accordance with the
        qualifications established under section 108(h)(2) of WIOA) and other staff to assist in
        carrying out the functions described in WIOA section 101(d) using the funds available for
        State administrative activities under the Youth or Adult and Dislocated Worker formula
        programs (WIOA sections 129(b)(3) and 134(a)(3)(B)(i)). The director and staff must be
        subject to the limitations on the payment of salary and bonuses described in WIOA Sec.
        194(15).

     D. Exception for Alternative Entities. The State may use any State entity that meets the
        requirements of WIOA section 101(e) to perform the functions of the State Board as long
        as the State's first Unified or Combined State Plan demonstrates that the alternative entity
        meets all of the requirements of WIOA section 101(e)(1). Specifically, the alternative
        entity was in existence on the day before the date of enactment of the Workforce
        Investment Act of 1998, is substantially similar to the State Board described in WIOA
        section 101(a) (relating to establishment by the Governor), (b) (relating to membership),
        and (c) (relating to the chair), and includes representatives of business and labor
        organizations in the State. States that wish to continue using an entity that meets these
        requirements as an alternative State Board must notify their respective ETA Regional
        Office prior to July 1, 2015.

     E. Sunshine Provisions. As under WIA, the State Board must conduct business in an open
        manner as required by WIOA section 101(g). Therefore, the State Board must make
        available to the public on a regular basis, through electronic means and open meetings,
        information about State Board activities such as the State Plan, modifications to the State
        Plan, board membership, the State Board's by-laws, and minutes of State Board's
        meetings.

5.       Designation of Local Areas.

     A. Identifying Regions and Designating Local Areas.

       i.   Timing for Identification of Regions and Designation of Local Areas. By March 2016,
            States must describe the designation of local areas and identify regions in their
            Unified or Combined State Plan. While recognizing that the timelines for the
            identification of regions and designation of local areas may vary, the Department
            strongly encourages States and local areas to undertake both regional and local area
            designation as concurrent and related processes and to consider the designation of
            local areas in the context of regions to the extent possible.

      ii.   The Context of Regions. The statute permits currently designated local areas to
            request initial designation under WIOA in PY 2015 or PY 2016. Designations of
            newly formed local areas, such as those wishing to merge, may occur at any time. The

          strategic configuration of a local area(s) within regions facilitates alignment of
          workforce development activities with regional economic development activities, and
          better supports the execution and implementation of sector strategies and career
          pathways. Where an identified region consists of two or more designated local areas,
          those local areas engage in a regional planning process that includes regional service
          strategies and cooperative service delivery agreements.

 iii.     Further Instructions Regarding Regions. The processes for local area designation are
          described in more detail below. The Department will issue further guidance on the
          identification of regions in the near future.

B. The Governor must develop a policy for designation of local workforce development
   areas. The purpose of a local area is to serve as a jurisdiction for the administration of
   workforce development activities using Adult, Dislocated Worker, and Youth funds
   allocated by the State and to coordinate efforts related to the other core programs at a
   local community level. WIOA Section 106(b) establishes that the Governor must
   designate local workforce development areas (local areas) in order for the State to receive
   Adult, Dislocated Worker, and Youth funding under Title I, subtitle B. This guidance
   describes the steps that the Governor and other State and local entities must complete in
   order to designate local areas in the State. The Governor must follow the requirements
   provided in this guidance until the final regulations take effect.

     i.      By July 1, 2015, the Governor, in consultation with the State Board, must develop
             a policy and procedure for the designation of all local areas, as well as a policy for
             the designation of new local areas. For all types of designation described in 5.D.
             and E. of this guidance, the policy must include:

             a.      Consultation with the State Board;

             b.      Consultation with the chief elected officials and affected Local
                     Boards; and

             c.      Consideration of comments received through a public comment process.
                     The public comment period must offer adequate time for public comment
                     prior to designation of the local workforce development area and provide
                     an opportunity for representatives of interested business, education, and
                     labor organizations to have input into the development of the formation of
                     the local area.

    ii.      For new local areas, the policy must include, at a minimum, consideration of the
             extent to which the proposed area:

              a.     Is consistent with local labor market areas;

              b.     Has a common economic development area; and

            c.     Has the federal and non-federal resources, including appropriate
                   education and training institutions, to administer activities under the
                   Youth, Adult and Dislocated Worker formula programs under WIOA
                   subtitle B.

C. Requirements for initial designation of local areas that had been designated under
   WIA and want to continue as WIOA local areas.

   i.   Requesting Initial Designation. Chief elected officials and local boards of local
        areas that currently operate under WIA have the option of requesting local area
        designation status under WIOA. The Department encourages such requests to be
        completed prior to the onset of PY 15; however, such requests may be made after
        July 1, 2015. The Governor may establish a procedure for accepting such requests
        from local areas. If the chief elected official and local board in a local area submits
        a request for initial designation, the Governor must approve the request if the entity
        was designated as a local area for purposes of WIA, performed successfully, and
        sustained fiscal integrity for the two years preceding the enactment of WIOA. If a
        local area is approved for initial designation, the period of initial designation
        applies to program years 2015 and 2016.

   ii. “Performed Successfully” Definition: For the purpose of initial local area
        designation, the term "performed successfully" means that the local area met or
        exceeded the levels of performance the Governor negotiated with the Local Board
        and chief elected official and the local area has not failed any individual measure
        for the last 2 consecutive program years before the enactment of WIOA. The terms
        "met or exceeded" and "failure" must be defined by the Governor in the State's
        policy consistent with how those terms were defined at the time the performance
        levels were negotiated. When designating local areas, the Governor may not
        retroactively apply any higher WIOA threshold to performance negotiated and
        achieved under WIA.

   iii. “Sustained Fiscal Integrity” Definition: For the purpose of determining initial local
        area designation, the term "sustained fiscal integrity" means that the Secretary has
        not made a formal determination that either the grant recipient or the administrative
        entity of the area misexpended funds due to willful disregard of the requirements of
        the provision involved, gross negligence, or failure to comply with accepted
        standards of administration for the two-year period preceding the determination.


   iv. Appeals: In order to facilitate the orderly designation of local areas under WIOA,
        the State Board must develop a formal appeals policy for units of local government
        that request but are denied initial designation status. In addition to the State's
        criteria, the policy must include the provision that if a decision on the appeal is not
        rendered in a timely manner or if the appeal to the State Board does not result in

             designation, the entity may request review by the Secretary of Labor. The Secretary
             may require that the area be designated as a workforce development area, if the
             Secretary determines that the entity was not accorded procedural rights under the
             State appeals process or if the area meets the initial designation requirements at
             WIOA sec. 106(b)(2).

  D. Requirements for designation of new local areas. At any time, the Chief Local Elected
        Official (CLEO) and Local Board from any unit of general local government or
        combination of units may submit a request for designation as a workforce development
        area. The State Board must determine if the new local area meets the Governor's policy
        criteria established in section 5.C. of this guidance and recommend designation. The
        Governor may approve or deny the request for designation, in accordance with established
        policy.

     E. Special Provisions for Single- State Local Areas Under WIA. The Governor of any State
        that was a single State local area under WIA as in effect on July 1, 2013 may designate
        the State as a single State local area under WIOA. The Governor of a single State local
        area under WIA who seeks to designate the State as a single State local area under WIOA
        must identify the State as a single State local area in the Unified or Combined State Plan
        and include the local plan for approval as part of the Unified or Combined State Plan. The
        State Board must also carry out the functions of the Local Board, except that the State is
        not required to meet and report on a set of local performance accountability measures.

        States that were not single State local areas under WIA may not designate themselves as a
        single State local area under WIOA.

6.        State Activities Required to Transition to a WIOA-compliant Local Board.

 A.      Composition of Local Boards. The Local Board represents a wide variety of individuals,
         businesses, and organizations throughout the local area. The Local Board serves as a
         strategic convener to promote and broker effective relationships between the Chief
         Local Elected Officials and economic, education, and workforce partners throughout
         the local area. The Local Board is responsible for developing a strategy to continuously
         improve and strengthen the workforce development system through innovation in, and
         alignment and improvement of, employment, training, and education programs to
         promote economic growth. Local Board members must actively participate and
         collaborate closely with the required and other partners of the workforce development
         system, including public and private organizations. This is crucial to the Local Board's
         role to integrate and align a more effective, job-driven workforce development system.
         The Local Board must work to develop a comprehensive and high-quality workforce
         development system by collaborating with its workforce, education, and economic
         development partners to improve and align employment, training, and education
         programs under WIOA.

In addition to taking immediate action to appoint a WIOA-compliant State Board, the
Governor and State Board must establish criteria prior to July 1, 2015 that the CLEO
must follow for the appointment of a WIOA-compliant Local Board. Development of
the State criteria will enable CLEOs to make necessary appointments so that Local
Boards can proceed with necessary local implementation activities.

   i.   Minimum criteria that must be contained in State policy for Local Board
        appointments. Criteria established by the State for Local Board membership
        appointments must, at minimum, meet the requirements provided in
        Attachment III and this guidance.

        For each local area in the State, the members of Local Board must be selected
        by the CLEO consistent with criteria established by the Governor and State
        Board pursuant to WIOA section 107(b)(1) and must meet the composition
        requirements of WIOA section 107(b)(2). Additionally, the Local Board must
        elect a chairperson from among the business representatives on the Local
        Board as required by WIOA section 107(b)(3).

        The Local Board must include representatives from four categories.

        First, a majority of members must be business representatives who are owners,
        chief executive or operating officers, or other business executives, or
        employers with optimum policymaking or hiring authority. They are to be
        representatives of businesses, including small businesses, or organizations
        representing businesses, that provide employment opportunities in the local
        area in in-demand industry sectors or occupations (as defined in WIOA section
        3(23)). These representatives are uniquely suited to communicate the emerging
        workforce needs of employers in high-growth, in-demand sectors to the Local
        Board.

        Second, not less than 20 percent of the members of the Local Board must be
        workforce representatives. Such representatives must include: two or more
        representatives of labor organizations (or other employee representatives if
        there are no labor organizations operating in the local area) and one or more
        representatives of a joint-labor management registered apprenticeship program
        (or other registered apprenticeship program if there is no joint labor-
        management program in the local area). In areas with joint apprenticeship
        programs, the apprenticeship representative must be a member of a labor
        organization or a training director.

        In addition, the workforce representatives may include one or more
        representatives of community based organizations (CBOs) with demonstrated
        experience and expertise in addressing the employment needs of individual
        barriers to employment (including organizations that serve veterans or that
        provide or support competitive integrated employment for individuals with

      disabilities), and one or more representative of organizations with
      demonstrated experience and expertise in addressing the employment,
      training, or education needs of WIOA-eligible youth, including organizations
      serving out- of- school youth (OSY).

      Third, the members must include representatives of entities administering
      education and training activities in the local area. At least one of these
      members must be a representative of providers of adult education and literacy
      activities under Title II of WIOA, and at least one of these members must be a
      representative of higher education institutions that provide workforce training
      (including community colleges). These members may include representatives
      of local education agencies and CBOs with demonstrated expertise and
      experience in addressing the education or training needs of individuals with
      barriers to employment.

      Fourth, the members must include representatives of governmental and
      economic and community development entities in the local area, including at
      least one representative of each of the following: economic or community
      development entities, the State Employment Service Office under Wagner-
      Peyser serving the local area, and programs carried out under Title I of the
      Rehabilitation Act of 1973.

      In addition to these four categories, the CLEO may appoint other individuals to
      the Local Board at his or her discretion, such as local agencies or entities
      administering transportation, housing and public assistance, and philanthropic
      organizations.

      These provisions allow the CLEO the flexibility to assemble a Local Board that
      connects all key resources and stakeholders.

ii.   Policy for the Nomination of Business, Labor, Adult Education and Institutions
      of Higher Education. As with WIA, WIOA requires that the business
      representatives be appointed from among individuals nominated by local
      business organizations and business trade associations and that the
      representatives from labor organizations be appointed from among individuals
      who have been nominated from local labor federations. The CLEO must
      establish a formal policy to facilitate these nominations.

      When there is more than one local area provider of adult education and literacy
      activities under Title II, or multiple institutions of higher education providing
      workforce investment activities the CLEO must solicit nominations from those
      providers and institutions, respectively, in appointing the required
      representatives. This requirement provides for a representative selection process
      for these membership categories.

iii. Additional Selection Requirements. The representatives appointed to local
     workforce development boards must have "optimum policy-making authority",
     that is the individual may reasonably be expected to speak affirmatively on behalf
     of the entity he or she represents and to commit that entity to a chosen course of
     action.

   The members who are representatives of organizations with "demonstrated
   experience and expertise" described in subcategories under the workforce
   representatives and the education and training representatives means an individual
   who is a workplace learning advisor as defined in WIOA sec. 3 (70); contributes
   to the field of workforce development, human resources, training and
   development, or a core program function; or the Local Board recognizes for
   valuable contributions in education or workforce development related fields.

iv. Multiple entity representation. Unlike the State Board, members of the Local
    Board may be appointed as a representative of more than one entity if the
    individual meets all the criteria for representation, including the criteria described
    in 6.A.i. of this guidance (Local Board membership requirements), for each entity
    represented.

v. Standing Committees. WIOA authorizes Local Boards to establish to standing
   committees to assist the Local Board in carrying out its responsibilities. The
   Department encourages the use of standing committees to expand opportunities
   for stakeholders to participate in board decision-making, particularly for
   representatives of organizations that may no longer sit on the Local Board but
   continue to have a stake in the success of board decisions. Such committees also
   expand the capacity of the board in meeting required functions

   Local Boards may establish standing committees that include individuals who
   are not formal members of the board, but who have expertise to advise on issues
   that support the board's ability to attain the goals of the State, local and regional
   plans, and the objective of providing customer focused services to individuals
   and businesses. Standing committees must be chaired by a member of the Local
   Board.

   Youth Standing Committees - Under WIA, Youth Councils were mandated to
   fulfill this function for the Board. (For the current national list of Youth Councils,
   please visit http://www.servicelocator.org/youthcouncil.asp.) While WIOA
   eliminates the requirement for Local Boards to establish a Youth Council, the
   Department encourages Local Boards to establish, "a standing committee to
   provide information and to assist with planning, operational, and other issues
   relating to the provision of services to youth, which shall include community-
   based organizations with a demonstrated record of success in serving eligible
   youth," as permitted by Sec. 107(b)(4)(A)(ii) of WIOA. Existing Youth Councils
   can serve a critical role in helping local youth programs transition to WIOA. The

            Department suggests Local Boards consider taking advantage of the flexibility
            under WIOA to design standing youth committee membership to meet the local
            area's needs.

            WIOA further permits a Local Board to designate an existing Youth Council as a
            youth standing committee if the Youth Council fulfills the requirements of a
            standing committee (WIOA section 107(b)(4)(C)). While the Department
            encourages Local Boards to designate their high performing Youth Councils as
            standing youth committees, WIOA does not require it. Local Boards may create a
            new standing youth committee that has different membership than the Youth
            Council under WIA in order to design standing youth committee membership to
            meet the local area's needs. A Local Board may also choose not to establish a
            standing youth committee at all. If so, the Local Board is still responsible for
            conducting oversight of youth workforce investment activities under WIOA
            section 129(c) and identifying eligible providers of youth workforce investment
            activities in the local area by awarding grants or contracts on a competitive basis.

            Other Standing Committees - Additional standing committees may include:

            (1) A standing committee to provide information and assist with operational and
                other issues relating to the one-stop delivery system, which may include
                representatives of the one-stop partners;

            (2) A standing committee to provide information and to assist with operational
                and other issues relating to the provision of services to individuals with
                disabilities, including issues relating to compliance with WIOA sec. 188, if
                applicable, and applicable provisions of the Americans with Disabilities Act
                of 1990 regarding providing programmatic and physical access to the services,
                programs, and activities of the one-stop delivery system, as well as appropriate
                training for staff on providing supports for or accommodations to, and finding
                employment opportunities for individuals with disabilities; or

            (3) Other standing committees identified and appointed by the CLEO.

7.   Timeframe for Implementing Governance Activities. The following summary
     distinguishes which activities are required by July 1, 2015 and those activities that may
     be completed after July, 1 2015.

     The following activities must be completed by July 1, 2015:
      • The Governor must appoint a WIOA-compliant State Board;
      • States that meet the requirements of alternate entities under 4.D. of this guidance
          and wish to continue to operate as an alternative State Board entity must notify their
          respective ETA Regional Office;

       •       The Governor, in consultation with the State Board, must develop a policy for
               designation of local workforce development areas; and
       •       The Governor must establish criteria for the selection and appointment of
               Local Board members.

      The following activities may be completed after July 1, 2015:

        •      The Governor, in consultation with the State Board, must designate local areas.
               For existing WIA local areas that wish to request initial designation under
               WIOA, the Department encourages States to approve all requests for initial
               designation of local areas by July 1, 2015;
        • The Governor, in consultation with the State Board must identify regions in
          the submission of their WIOA Unified or Combined State Plan; and
        • The CLEO must appoint a WIOA-compliant Local Board. The Department
          strongly encourages CLEOs to appoint a WIOA-compliant Local Board within
          the first quarter of PY 2015. The Department is allowing this additional time to
          ensure a more orderly transition to WIOA (section 503).

8.    Requested Action. States must proceed with the actions outlined in Sections 4, 5, and
      6 of this guidance.

9.    Inquiries. Please direct any questions about WIOA implementation to the
      appropriate ETA regional office.

10.   Attachments.

           •    Attachment I: References
           •    Attachment II: State Board Membership Requirements
           •    Attachment III: Local Board Membership Requirements

Attachment I: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2015/TEGL_27-14_Attachment_I_Acc.pdf

ATTACHMENT I

                      WIOA Operating Guidance TEGL References


    •    WIOA (Pub. L. 113-128) Title I, Sections 101, 106, and 107;
    •    TEGL No. 19-14, Vision for the Workforce System and Initial Implementation of the
         Workforce Innovation and Opportunity Act; and
    •    WIA (Pub. L. 105-220), Title I.

Attachment II: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2015/TEGL_27-14_Attachment_II_Acc.pdf

ATTACHMENT II
                                State Board Membership Requirements

 Required SWDB Members                            Who May Satisfy The Requirement
        The Governor             The Governor.
 (WIOA Section 101(b)(1)(A))
      Representatives of         One member of each chamber of the State legislature (to the extent
      State Legislature          consistent with State law), appointed by the appropriate presiding
 (WIOA Section 101(b)(1)(B))     officers of such chamber.
  Representatives of Business    The majority of the board must consist of representatives of business
        (WIOA Section            who:
       101(b)(1)(C)(i))             •    are owners of businesses, chief executives or operating officers
                                         of businesses, or other business executives or employers with
                                         optimum policy-making or hiring authority, and who, in
                                         addition, may be members of a Local Board described in
                                         section 107(b)(2)(A)(i);
                                    •    represent businesses (including at least on representative of
                                         small business), or organizations representing businesses and
                                         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
                                    • are appointed from among individuals nominated by State
                                         business organizations and business trade associations.
     Representatives of          Not less than 20 percent shall be representatives of the workforce
        Workforce                within the State, who must include:
      (WIOA Section                 • Two or more representatives of labor organizations, who have
      101(b)(1)(C)(ii))                  been nominated by State labor federations;
                                    • One or more representative, who must be a member of a labor
                                         organization or a training director, from a joint labor-
                                         management registered apprenticeship program, or if no such
                                         joint program exists in the State, such a representative of a
                                         registered apprenticeship program in the State;

                                 In addition to the representatives enumerated above, the Governor
                                 may appoint one or more representatives of the following
                                 organizations to contribute to the 20 percent requirement:
                                     • 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

                             training, or education needs of eligible youth, including
                             representatives of organizations that serve out-of-school youth.

Representatives of    The balance of State Board membership must include:
  Government            • the lead State officials with primary responsibility for the core
 ((WIOA Section              programs; and
 101(b)(1)(C)(iii))     • two or more chief elected officials (collectively representing
                             both cities and counties, where appropriate).

                      In addition to the representatives enumerated above, the
                      Governor may appoint such other representatives such as:
                         • the State agency officials from agencies that are one-stop
                             partners (including additional one-stop partners whose
                             programs are covered by the State plan, if any);
                         •    State agency officials responsible for economic development
                              or juvenile justice programs in the State;
                         •    individuals who represent an Indian tribe or tribal organization,
                              as such terms are defined in section 166(b); and
                         •    State agency officials responsible for education programs in
                              the State, including chief executive officers of community
                              colleges and other institutions of higher education.

Attachment III: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2015/TEGL_27-14_Attachment_III_Acc.pdf

ATTACHMENT III
                            Local Board Membership Requirements

   LWDB Members                           Who May Satisfy The Requirement
   Representatives of   The majority of the members of the Local Board must be representatives
       Business         of business in the local area. At a minimum, two members must
    (WIOA Section       represent small business as defined by the U.S. Small Business
     107(b)(2)(A))      Administration. Business representatives serving on Local Boards may
                        also serve on the State Board. Each business representative must meet the
                        following criteria:
                            • be an owner, chief executive officer, chief operating officer, or
                                 other individual with optimum policymaking or hiring authority;
                            • provide employment opportunities in in-demand industry sectors
                                 or occupations, as those terms are defined in WIOA section 3(23);
                                 and provide high-quality, work-relevant training and development
                                 opportunities to its workforce or the workforce of others (in the
                                 case of organizations representing business as per WIOA Sec.
                                107(b)(2)(A)(ii); and
                            • are appointed from among individuals nominated by local
                                 business organizations and business trade associations.
   Representatives of   Not less than 20 percent of the members of the Local Board must be
      Workforce         workforce representatives. These representatives:
    (WIOA Section           • must include two or more representatives of labor
      107(b)(2)(B))             organizations, where such organizations exist in the local area.
                                Where labor organizations do not exist, representatives must be
                                selected from other employee representatives;
                            • must include one or more representatives of a joint labor-
                                 management, or union affiliated, registered apprenticeship
                                 program within the area who must be a training director or a
                                 member of a labor organization. If no union affiliated registered
                                 apprenticeship programs exist in the area, a representative of a
                                 registered apprenticeship program with no union affiliation
                                 must be appointed, if one exists; and may include:

                        In addition to the representatives enumerated above, the Board may
                        include the following to contribute to the 20 percent requirement:

                           •     one or more 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 provide or support competitive integrated
                                 employment for individuals with disabilities; and
                               • one or more representatives of organizations that

                                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.

  Representatives of     The balance of Local Board membership must include:
Education and Training      • At least one eligible provider administering adult education and
    (WIOA Section               literacy activities under WIOA title II;
     107(b)(2)(C))          • At least one representative from an institution of higher
                                 education providing workforce investment activities, including
                                 community colleges; and
                            • At least one representative from each of the following
                                 governmental and economic and community development
                                 entities:
                                     o Economic and community development entities;
                                     o The state Employment Service Office under the Wagner-
                                         Peyser Act (29 U.S.C. 49 et seq.) serving the local area;
                                         and
                                     o The programs carried out under title I of the Rehabilitation
                                         Act of 1973, other than sec. 112 or Part C of that title.

                         In addition to the representatives enumerated above, the CLEO may
                         appoint other appropriate entities in the local area, including:
                            •   Entities administering education and training activities who
                                represent local educational agencies or community-based
                                organizations with demonstrated expertise in addressing the
                                education or training needs for individuals with barriers to
                                employment;
                            •   Governmental and economic and community development
                                entities who represent transportation, housing, and public
                                assistance programs;
                            •   Philanthropic organizations serving the local area; and
                            •    Other appropriate individuals as determined by the chief elected
                                 official.