June 1, 2006, Introduced by Senators GARCIA, EMERSON, BIRKHOLZ, STAMAS, GOSCHKA, CROPSEY, PRUSI, BARCIA, THOMAS, ALLEN, TOY, McMANUS, VAN WOERKOM, HAMMERSTROM, JELINEK, BASHAM, KUIPERS, BISHOP and CASSIS and referred to the Committee on Commerce and Labor.
A bill to codify the workforce development system to deliver
workforce development programs and services tailored to local
needs; to provide for Michigan works areas; to provide for local
workforce development boards; to provide for education advisory
groups; to provide for consolidated access to employment and
retention programs in one-stop service centers; and to prescribe
the powers and duties of certain state and local governmental
officers and agencies.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"Michigan works one-stop service center system act".
Sec. 3. As used in this act:
(a) "Chief elected official" means a chief elected executive
officer of a unit of general local government.
(b) "Department" means the department of labor and economic
growth.
(c) "Education advisory group" means an education advisory
group described in section 23.
(d) "Michigan works agency" means an agency designated to be
the primary administrator for workforce development activities in a
local Michigan works area under the guidance of the local workforce
development board.
(e) "Michigan works area" means a geographic area that the
governor designates as a local workforce investment area under
section 116 of the workforce investment act, 29 USC 2831, including
an area designated before the effective date of this act.
(f) "Michigan works one-stop service center" means a facility
designated to provide access to services delivered under the
Michigan works system.
(g) "Michigan works system" means the integrated and
coordinated system of local boards, agencies, service centers, and
advisory groups described in section 5 to deliver workforce
development services and implement federal and state law.
(h) "Local workforce development board" means a local
workforce investment board established as provided in section 9.
(i) "Workforce investment act" means the workforce investment
act of 1998, 29 USC 2801 to 2945.
Sec. 5. (1) The Michigan workforce development system is
created to provide an integrated and coordinated system for
delivery of workforce development programs and services tailored to
local needs, including, but not limited to, services and programs
regulated or funded under all of the following state and federal
laws:
(a) Title I of the workforce investment act, Public Law 105-
220.
(b) The Wagner-Peyser act, 29 USC 49 to 49c and 49d to 49l-2.
(c) Section 221 of the trade act of 1974, 19 USC 2271.
(d) Section 57f of the social welfare act, 1939 PA 280, MCL
400.57f.
(e) Section 6(d)(4) of the food stamp act of 1977, 7 USC 2015.
(f) Reed act transfers under 42 USC 1101 to 1110.
(2) The system consists of the workforce development board in
each Michigan works area working cooperatively with the chief
elected local official, Michigan works agencies, Michigan works
one-stop service centers, and education advisory groups.
(3) The system is under the general supervision of the
department, which shall provide the system with statewide career
guidance, labor market and labor exchange information, and a
management information system that supports the Michigan works one-
stop service centers.
Sec. 7. The governor shall designate Michigan works areas in
the state in accordance with section 116 of the workforce
investment act, 29 USC 2831.
Sec. 9. The chief elected official in each Michigan works area
shall appoint and the governor shall certify a local workforce
development board for that Michigan works area in accordance with
section 117 of the workforce investment act, 29 USC 2832.
Sec. 11. All of the following apply to a local workforce
development board:
(a) A majority of the members of a local workforce development
board shall be representatives of the private sector appointed from
a list of individuals nominated by local business organizations and
business trade associations.
(b) A local workforce development board shall include
representatives of education, the department of human services, the
department of labor and economic growth, vocational rehabilitation
providers, organized labor, economic development organizations, and
community-based organizations. Representatives of government
agencies shall be nominated by the department.
(c) Members of a local workforce development board shall be
appointed for fixed and staggered terms.
(d) The chairperson of the local workforce development board
shall be an individual from the private sector elected by the
board.
Sec. 13. A local workforce development board shall do all of
the following in cooperation with the chief elected officials in
the workforce development area:
(a) Develop and submit to the governor a plan for coordinating
local workforce development services for employers and job seekers
in the area. The plan shall provide for access to designated core
services with no fees or charges and shall provide services beyond
the core services based on eligibility criteria.
(b) Identify providers eligible to provide youth services,
training services for adults and dislocated workers, and intensive
services.
(c) Award competitive grants or contracts to eligible
providers.
(d) Develop a budget.
(e) Employ staff necessary to carry out the duties of the
board.
(f) Solicit and accept grants and donations.
(g) Oversee the operation of the one-stop delivery of services
through the Michigan works system.
(h) Establish local performance standards through negotiation
with the governor for evaluating and improving the workforce
development system.
(i) Coordinate workforce development activities with other
economic development activities and strategies in the Michigan
works area.
(j) Promote private sector employer participation in the
Michigan works system.
(k) Make available connecting, brokering, and coaching
activities through intermediaries to help meet employer hiring
needs.
(l) Appoint an education advisory group and its chair.
(m) Conduct business at public meetings held in compliance
with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275, and
make information concerning performance of its duties available to
the public.
(n) Any other duties, functions, or responsibilities required
of the board to implement the workforce investment act or state or
federal law.
Sec. 15. (1) A local workforce development board and each
member of the board shall avoid a conflict of interest with duties
of the board. Except as provided in subsection (2), an individual
shall not be appointed to or serve on a local workforce development
board if he or she has an ownership interest in or is employed by
an organization that receives money under the direct control of the
board or if the individual engages in any other activity that
creates a conflict of interest or what would appear to a reasonable
person to be a conflict of interest.
(2) An individual who has an interest in or is employed by an
entity that receives money under the partial or complete control of
the local workforce development board may be appointed to or
continue to serve on the board if the individual does not hold a
policy-making position with the entity and would not receive other
than a remote or incidental benefit from the board's decisions.
This exception to the strict conflict of interest policy applies to
allow local workforce development board representation from
entities such as a school that enrolls students with tuition paid
from funds under the control of the board, a government agency from
which representation is required, and an employer that accepts
compensation for extraordinary costs of providing on-the-job
training from funds under the board's control.
Sec. 17. The governor shall certify a Michigan works agency in
each Michigan works area from agencies designated by the local
workforce development board in cooperation with chief elected
officials. A Michigan works agency shall be 1 of the following:
(a) A public office or agency of a local unit of government
within the Michigan works area.
(b) A private nonprofit agency servicing 1 or more units of
local government within the Michigan works area.
(c) A nonprofit organization exempt from tax under section
501(c)(3) of the internal revenue code, 26 USC 501.
Sec. 19. (1) A Michigan works agency shall serve as the
primary administrator for state and federally funded workforce
development services and activities in its Michigan works area.
Subject to subsection (2), a local agency may engage in any
activity necessary to fulfill the intent of this act, including,
but not limited to, the following:
(a) Informing the state, units of local government, private
agencies and organizations, and the general public of the nature
and extent of the need for workforce development services for
businesses and individuals within the Michigan works area.
(b) Developing and administering local workforce development
programs within the Michigan works area.
(c) Conducting pilot and demonstration projects with
innovative approaches to reduce unemployment, improve services, and
utilize resources.
(d) Providing and advocating for training and technical
assistance to public and private agencies, community groups, and
local units of government to better define problems, improve
services, and facilitate citizen participation.
(e) Increasing interagency coordination and cooperation in
serving businesses and individuals.
(f) Entering into agreements with federal, state, and local
public and private agencies and organizations if necessary to carry
out the purposes of this act.
(g) Receiving and accepting grants or gifts to support or
promote the activities authorized by this act.
(h) Implementing and operating a Michigan works one-stop
service center.
(i) Engaging in any other activity necessary to fulfill the
intent of this act.
(2) Except for incumbent worker training and business
services, a Michigan works agency shall not provide workforce
development services directly to job seekers and individual
trainees without the agreement of the governor.
Sec. 21. (1) Except as provided in subsection (2), a local
workforce development board or Michigan works agency shall provide
state or federally funded workforce development services to program
applicants and participants only through service providers selected
by a competitive procurement process established by the department
or that meets any applicable federal law or regulations.
(2) A local workforce development board or a Michigan works
agency may provide state or federally funded services directly to
program applicants and participants without contracting with a
service provider, if the governor determines after a competitive
procurement process that no other provider is capable of providing
the required services at a reasonable cost.
(3) Except as otherwise provided in this section, a local
workforce development board or Michigan works agency may enter any
agreement necessary to deliver services under this act.
Sec. 23. (1) A local workforce development board shall appoint
an education advisory group to operate in the Michigan works area
and serve in an advisory capacity to the board on educational
issues. The board shall appoint the chairperson of that group.
(2) An education advisory group appointed under this section
shall include local workforce development board members and
representatives of employers, labor representatives, local school
districts, postsecondary institutions, intermediate school
districts, career and technical educators, public school parents,
and academic educators. An education advisory group member shall be
employed in the sector he or she represents.
(3) The conflict of interest provisions in section 15 do not
apply to the members of an education advisory group appointed under
this section.