(1) Local workforce development areas shall be designated by the Governor through consultation with the board and after consultation with chief elected officials and local workforce development boards and consideration of comments received through the public comment process. The Governor shall base the designations on considerations specified in section 106(b)(1)(B) of the Workforce Innovation and Opportunity Act.¹

(1.1) The term “local workforce development area” includes a planning region for purposes of implementation of that provision by the corresponding local workforce development areas in the region except if the board assists the Governor in the development of discretionary allocation formulas for the distribution of funds for employment and training activities for adults and youth workforce development activities to local workforce development areas as permitted under sections 128(b)(3)² and 133(b)(3)³ of the Workforce Innovation and Opportunity Act.

(2) A local workforce development board shall be established and certified by the Governor in each local workforce development area to carry out the functions described in section 504⁴ and any functions specified for the local workforce development board under the Workforce Innovation and Opportunity Act or Federal provisions establishing a core program for the local area.

(3) No local workforce development board may conduct business unless it is certified by the Governor under paragraph (2).

(1) The chief elected official in a local workforce development area shall serve as the local grant recipient for and shall be liable for any misuse of the grant funds allocated to the local workforce development area under Federal law or this act, unless the chief elected official reaches an agreement with the Governor for the Governor to act as the local grant recipient and the Commonwealth assumes the liability.

(2) In order to assist in administration of the grant funds, the chief elected official or the Governor, if the Governor serves as the local grant recipient for a local workforce development area, may designate an entity to serve as a local grant subrecipient for such funds or as a local fiscal agent. Such designation shall not relieve the chief elected official or the Governor of liability for any misuse of grant funds as described in paragraph (1).

(3) The local grant recipient or an entity designated under paragraph (2) shall disburse such funds for workforce investment activities at the direction of the local board, pursuant to the requirements of this act and the Workforce Innovation and Opportunity Act. The local grant recipient or entity shall disburse the funds immediately on receiving the direction from the local board.