(1) In general
(A) Process Except as provided in subsection (b) of this section, and consistent with paragraphs (2), (3), and (4), in order for a State to receive an allotment under section
2852 or
2862 of this title, the Governor of the State shall designate local workforce investment areas within the State
(i) through consultation with the State board; and
(ii) after consultation with chief elected officials and after consideration of comments received through the public comment process as described in section
2822 (b)(9) of this title.
(B) Considerations In making the designation of local areas, the Governor shall take into consideration the following:
(i) Geographic areas served by local educational agencies and intermediate educational agencies.
(ii) Geographic areas served by postsecondary educational institutions and area vocational education schools.
(iii) The extent to which such local areas are consistent with labor market areas.
(iv) The distance that individuals will need to travel to receive services provided in such local areas.
(v) The resources of such local areas that are available to effectively administer the activities carried out under this subchapter.
(2) Automatic designation The Governor shall approve any request for designation as a local area
(A) from any unit of general local government with a population of 500,000 or more;
(B) of the area served by a rural concentrated employment program grant recipient of demonstrated effectiveness that served as a service delivery area or substate area under the Job Training Partnership Act, if the grant recipient has submitted the request; and
(C) of an area that served as a service delivery area under section 101(a)(4)(A)(ii) of the Job Training Partnership Act (as in effect on the day before August 7, 1998) in a State that has a population of not more than 1,100,000 and a population density greater than 900 persons per square mile.
(3) Temporary and subsequent designation
(A) Criteria Notwithstanding paragraph (2)(A), the Governor shall approve any request, made not later than the date of submission of the initial State plan under this subchapter, for temporary designation as a local area from any unit of general local government (including a combination of such units) with a population of 200,000 or more that was a service delivery area under the Job Training Partnership Act on the day before August 7, 1998, if the Governor determines that the area
(i) performed successfully, in each of the last 2 years prior to the request for which data are available, in the delivery of services to participants under part A of title II and title III of the Job Training Partnership Act (as in effect on such day); and
(ii) has sustained the fiscal integrity of the funds used by the area to carry out activities under such part and title.
(B) Duration and subsequent designation
A temporary designation under this paragraph shall be for a period of not more than 2 years, after which the designation shall be extended until the end of the period covered by the State plan if the Governor determines that, during the temporary designation period, the area substantially met (as defined by the State board) the local performance measures for the local area and sustained the fiscal integrity of the funds used by the area to carry out activities under this subchapter.
(C) Technical assistance
The Secretary shall provide the States with technical assistance in making the determinations required by this paragraph. The Secretary shall not issue regulations governing determinations to be made under this paragraph.
(D) Performed successfully In this paragraph, the term performed successfully means that the area involved met or exceeded the performance standards for activities administered in the area that
(i) are established by the Secretary for each year and modified by the adjustment methodology of the State (used to account for differences in economic conditions, participant characteristics, and combination of services provided from the combination assumed for purposes of the established standards of the Secretary); and
(ii)
(I) if the area was designated as both a service delivery area and a substate area under the Job Training Partnership Act (as in effect on the day before August 7, 1998)
(aa) relate to job retention and earnings, with respect to activities carried out under part A of title II of such Act (as in effect on such day); and
(bb) relate to entry into employment, with respect to activities carried out under title III of such Act (as in effect on such day);
(II) if the area was designated only as a service delivery area under such Act (as in effect on such day), relate to the standards described in subclause (I)(aa); or
(III) if the area was only designated as a substate area under such Act (as in effect on such day), relate to the standards described in subclause (I)(bb).
(E) Sustained the fiscal integrity
In this paragraph, the term sustained the fiscal integrity, used with respect to funds used by a service delivery area or local area, means that the Secretary has not made a final determination during any of the last 3 years for which data are available, prior to the date of the designation request involved, that either the grant recipient or the administrative entity of the area misexpended the funds due to willful disregard of the requirements of the Act involved, gross negligence, or failure to observe accepted standards of administration.