EXECUTIVE ORDER No.2004 - 36

DEPARTMENT OF LABOR AND ECONOMIC GROWTH
COUNCIL FOR LABOR AND ECONOMIC GROWTH

WHEREAS, Section 1 of Article V of the Michigan Constitution of 1963 vests the executive power of the State of Michigan in the Governor;

WHEREAS, under Section 8 of Article V of the Michigan Constitution of 1963, the Governor is responsible for taking care that the laws be faithfully executed;

WHEREAS, the State of Michigan is committed to preparing both current and future workers for highly-skilled and high-wage jobs;

WHEREAS, the State of Michigan has the responsibility to afford all Michigan citizens the chance to participate in quality employment and training programs;

WHEREAS, the State of Michigan has the responsibility to streamline workforce development programs and to develop a citizen-friendly, performance-oriented delivery system;

WHEREAS, Executive Order 1983-1 established the Michigan Job Training Coordinating Council and was amended by Executive Order 1985-15;

WHEREAS, under Executive Order 1993-3, the Michigan Job Training Coordinating Council was abolished, Executive Orders 1983-1 and 1985-15 were rescinded, and the Governor’s Workforce Commission was established;

WHEREAS, under Executive Order 1994-26 a new Governor’s Workforce Commission was established and the Governor’s Workforce Commission created under Executive Order 1993-3 was abolished;

WHEREAS, the federal Workforce Investment Act of 1998, Public Law 105-220, 29 USC 2801 to 9201, was enacted to provide workforce investment activities that increase the employment, retention, and earnings of participants, and increase occupational skill attainment by participants to improve the quality of the workforce, reduce welfare dependency, and enhance the productivity and competitiveness of the Nation;

WHEREAS, under Section 111 of the federal Workforce Investment Act of 1998, Public Law 105-220, as amended, 29 USC 2821, the Governor must establish a state workforce investment board;

WHEREAS, under Executive Order 2002-5, the Michigan Workforce Investment Board was established and the Governor’s Workforce Commission created under Executive Order 1994-26 was abolished;

WHEREAS, changes in the structure of the Michigan Workforce Investment Board created under Executive Order 2002-5 are necessary to reflect the current organizational structure of state government and to comply with federal law;

WHEREAS, changes in the structure of the Michigan Workforce Investment Board will facilitate a statewide policy dialogue involving local workforce boards, universities, community colleges, K-12 schools, and other key stakeholders;

NOW, THEREFORE, I, Jennifer M. Granholm, Governor of the State of Michigan, by virtue of the power and authority vested in me by the Michigan Constitution of 1963, and under Michigan and federal law, order the following:

  1. DEFINITIONS

    As used in this Order:

    1. “Adult” means that term as defined under Section 101(1) of the federal Workforce Investment Act of 1998, 29 USC 2801(1).

    2. “Chief Elected Official” means a chief elected executive officer of a Unit of General Local Government in a Local Area, or when the Local Area includes more than one Unit of General Local Government, the individuals designated under a Local Board agreement required under Section 117(c)(1)(B) of the federal Workforce Investment Act of 1998, 29 USC 2832(c)(1)(B).

    3. “Civil Service Commission” means the commission required under Section 5 of Article XI of the Michigan Constitution of 1963.

    4. “Community Based Organization” means a nonprofit organization that is representative of a community or a significant segment of a community and that has demonstrated expertise and effectiveness in the field of workforce investment.

    5. “Council” means the Council for Labor and Economic Growth created under this Order.

    6. “Department of Labor and Economic Growth” means the principal department of state government created as the Department of Commerce under Section 225 of the Executive Organization Act of 1965, 1965 PA 380, MCL 16.325, renamed the Department of Consumer and Industry Services under Executive Order 1996-2, MCL 445.2001, and renamed the Department of Labor and Economic Growth under Executive Order 2003-18, MCL 445.2011.

    7. “Department of Community Health” means the principal department of state government created as the Department of Mental Health under Section 400 of the Executive Organization Act of 1965, 1965 PA 380, MCL 16.500, and renamed the “Department of Community Health” under Executive Order 1996-1, MCL 330.3101.

    8. “Department of Management and Budget” means the principal department of state government created under Section 121 of The Management and Budget Act, 1984 PA 431, MCL 18.1121.

    9. “Dislocated Worker” means that term as defined under Section 101(9) of the federal Workforce Investment Act of 1998, 29 USC 2801(9).

    10. “Employment and Training Activity” means an activity described in Section 134 of the federal Workforce Investment Act of 1998, 29 USC 2864, that is carried out for an Adult or Dislocated Worker.

    11. “Family Independence Agency” means the principal department of state government created as the Department of Social Services under Section 450 of the Executive Organization Act of 1965, 1965 PA 380, MCL 16.550, and renamed the Family Independence Agency under Section 1 of the Social Welfare Act, 1939 PA 280, MCL 400.1.

    12. “Labor Federation” means an alliance of 2 or more organized labor unions for the purpose of mutual support and action, including, but not limited to the AFL-CIO state federation, state building and construction trade councils, AFL-CIO central labor councils, and local building and construction trade councils.

    13. “Local Area” means a local workforce investment area designated under Section 116 of the federal Workforce Investment Act of 1998, 29 USC 2831.

    14. “Local Board” means a local workforce investment board established under Section 117 of the federal Workforce Investment Act of 1998, 29 USC 2832.

    15. “State Adjusted Level of Performance” means a level described in clause (iii) or (v) of Section 136(b)(3)(A) of the federal Workforce Investment Act of 1998, 29 USC 2871(b)(3)(A).

    16. “State Performance Measure” means a performance measure established under Section 136(b) of the federal Workforce Investment Act of 1998, 29 USC 2871(b).

    17. “Statewide Workforce Investment System” means a system of activities funded under Subtitle B of Title I of the federal Workforce Investment Act of 1998, 29 USC 2801 to 2872, or carried out through a one-stop delivery system described under Section 134(c) of the federal Workforce Investment Act of 1998, 29 USC 2864(c), that receives funding under Subtitle B of Title I of the federal Workforce Investment Act of 1998, 29 USC 2801 to 2872. A “Statewide Workforce Investment System” includes both of the following:

      1. Development of linkages in order to assure coordination and non-duplication among the programs and activities described in Section 121(b) of the federal Workforce Investment Act of 1998, 29 USC 2841(b).

      2. Review of local plans under the federal Workforce Investment Act of 1998, 29 USC 2801 to 9201.

    18. “Michigan Economic Development Corporation” means the public body corporate created under Section 28 of Article VII of the Michigan Constitution of 1963 and the Urban Cooperation Act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to 124.512, by a contractual interlocal agreement effective April 5, 1999, and subsequently amended, between local participating economic development corporations formed under the Economic Development Corporations Act, 1974 PA 338, MCL 125.1601 to 125.1636, and the Michigan Strategic Fund.

    19. “Michigan Strategic Fund” means the public body corporate and politic created under Section 5 of the Michigan Strategic Fund Act, 1984 PA 270, MCL 125.2005, transferred to the Department of Management and Budget under Executive Order 1999-1, and transferred to the Department of Labor and Economic Growth under Executive Order 2003-18, MCL 445.2011.

    20. “One Stop Partner” means an entity that meets both of the following:

      1. Is an entity described under Section 121(b)(1) of the federal Workforce Investment Act of 1998, 29 USC 2941(b)(1).

      2. Is an entity participating, with the approval of the Local Board and Chief Elected Official, in the operation of a one-stop delivery system under the federal Workforce Investment Act of 1998, 29 USC 2801 to 9201.

    21. “Unit of General Local Government” means a general purpose political subdivision of this state that has the power to levy taxes and spend funds, and that has general corporate and police powers.

    22. “Workforce Investment Activity” means the array of activities permitted under Title I of the federal Workforce Investment Act of 1998, 29 USC 2801 to 2940, including Employment and Training Activities and Youth Activities.

    23. “Youth Activity” means an activity described under Section 129 of the federal Workforce Investment Act of 1998, 29 USC 2854.

  2. CREATION OF COUNCIL FOR LABOR AND ECONOMIC GROWTH

    1. The Council for Labor and Economic Growth is created as an advisory body within the Department of Labor and Economic Growth and shall be the state workforce investment board required for this state under Section 111 of the federal Workforce Investment Act of 1998, 29 USC 2821.

    2. The Council shall consist of the members described under Sections II.C to II.G.

    3. The Governor shall be a member of the Council, as required under Section 111(b)(1)(A) of the Workforce Investment Act of 1998, 29 USC 2821(b)(1)(A).

    4. As required under Section 111(b)(1)(B) of the Workforce Investment Act of 1998, 29 USC 2821(b)(1)(B), 2 members of the Michigan House of Representatives shall be appointed members of the Council by the Speaker of the House of Representatives, who serves as the presiding officer of the House of Representatives under Rule 5 of the Rules of the Michigan House of Representatives. A member appointed under this Section II.D shall serve only while a member of the Michigan House of Representatives.

    5. As required under Section 111(b)(1)(B) of the Workforce Investment Act of 1998, 29 USC 2821(b)(1)(B), 2 members of the Michigan Senate shall be appointed members of the Council by the Lieutenant Governor, who serves as the presiding officer of the Michigan Senate under Section 25 of Article V of the Michigan Constitution of 1963 and under Rule 1.101 of the Rules of the Michigan Senate. A member appointed under this Section II.E shall serve only while a member of the Michigan Senate.

    6. The following members appointed by the Governor:

      1. Not less than 19 individuals representing business in this state, appointed from a list of individuals nominated by state business organizations or business trade associations, and meeting both of the following criteria:

        1. The individual is an owner of a business, a chief executive of a business, a chief operating officer of a business, or other business executive or employer with optimum policy making authority or hiring authority, including a member of a Local Board representing business in the Local Area for that board.

        2. The individual represents businesses with employment opportunities that reflect the employment opportunities of this state.

      2. Not less than 2 Chief Elected Officials.

      3. Not less than 4 individuals representing labor organizations who have been nominated by a Labor Federation in this state.

      4. Not less than 2 individuals representing individuals and organizations that have experience with respect to Youth Activities.

      5. Not less than 2 individuals representing individuals and organizations that have experience and expertise in the delivery of Workforce Investment Activities, including chief executive officers of community colleges and Community Based Organizations within this state. An individual with “expertise in the delivery of Workforce Investment Activities” includes an individual who is an official with a One Stop Partner program and a person with documented expertise relating to the One Stop Partner program.

      6. The Governor may appoint additional members to the Council, including, but not limited to, representatives of a One Stop Partner program where no lead state agency has responsibility for the program or state agency officials responsible for economic development, child support, juvenile justice, or rehabilitation programs in this state.

    7. The following state officers shall be ex officio, voting members of the Council:

      1. The Director of the Department of Community Health.

      2. The Director of the Department of Labor and Economic Growth.

      3. The Director of the Family Independence Agency.

      4. The Superintendent of Public Instruction.

    8. As required under Section 111(b)(2) of the federal Workforce Investment Act, 29 USC 2821(b)(2), members of the Council appointed under Sections II.C to II.G that represent organizations, agencies, or other entities shall be individuals with optimum policy making authority within the organizations, agencies, or entities. For purposes of this Section II, an individual with “optimum policy making authority” is an individual who can reasonably be expected to speak affirmatively on behalf of the entity he or represents and to commit that entity to a chosen course of action.

    9. As required under Section 111(b)(2) of the federal Workforce Investment Act, 29 USC 2821(b)(2), members of the Council appointed under Sections II.C to II.G shall also represent diverse regions of this state, including urban, rural, and suburban areas.

    10. As required under Section 111(b)(3) of the federal Workforce Investment Act, 29 USC 2821(b)(3), a majority of the members of the Council shall be members appointed under Section II.F.1.

    11. Of the 2 Council members initially appointed by the Speaker of the House of Representatives under Section II.D, 1 member shall be appointed for a term expiring on April 30, 2005, and 1 member shall be appointed for a term expiring on April 30, 2006. Of the 2 Council members initially appointed by the Lieutenant Governor under Section II.E, 1 member shall be appointed for a term expiring on April 30, 2007, and 1 member shall be appointed for a term expiring on April 30, 2008. Of the Council members initially appointed by the Governor under Section II.F, approximately 25% of the members shall be appointed for a term expiring on April 30, 2005, approximately 25% of the members shall be appointed for a term expiring on April 30, 2006, approximately 25% of the members shall be appointed for a term expiring on April 30, 2007, and approximately 25% of the members shall be appointed for a term expiring on April 30, 2008. After the expiration of the initial terms under this Section II.J, Council members shall be appointed for four-year terms expiring on April 30.

    12. To encourage coordination and cooperation between the Council and the Michigan Economic Development Corporation, and the more effective alignment of workforce and economic development efforts in this state, not less than 2 of members appointed under Sections II.F.1 to II.F.6 shall also be members of the Executive Committee of the Board of Directors of the Michigan Economic Development Corporation.

    13. As required under Section 111(c) of the federal Workforce Investment Act, 29 USC 2821(c), the Governor shall designate from among the members appointed under Section II.F.1 a Chairperson for the Council. The Chairperson shall serve as Chairperson at the pleasure of the Governor.

    14. The Governor shall designate from among the members of the Council a Vice-Chairperson who shall serve as Vice Chairperson at the pleasure of the Governor and act as Chairperson of the Council in the absence of the Chairperson.

    15. A vacancy on the Council created other than by the expiration of the term of a member of the Council shall be filled in the same manner as the original appointment, for the remainder of the unexpired term. A member may be reappointed for additional terms.

  3. CHARGE TO THE COUNCIL

    1. The Council is advisory in nature and shall advise and assist the Governor regarding compliance with the federal Workforce Investment Act of 1998, 29 USC 2801 to 9201 (“Act”) and any regulations issued pursuant to the Act, including, but not limited to, each of the following:

      1. The development of a state plan outlining a 5-year strategy for the Statewide Workforce Investment System for this state, as required under Section 112 of the federal Workforce Investment Act of 1998, 29 USC 2822.

      2. The development and continuous improvement of a Statewide Workforce Investment System.

      3. To the extent required under federal law, commenting at least once annually on any measures taken under Section 113(b)(14) of the federal Carl D. Perkins Vocational and Applied Technology Education Act, 20 USC 2323(b)(14), or any successor statute.

      4. Designation of Local Areas as required under Section 116 of the federal Workforce Investment Act of 1998, 29 USC 2831.

      5. Development of allocation formulas for the distribution of funds for Adult Employment and Training Activities and Youth Activities to Local Areas as permitted under Sections 128(b)(3)(B) and 133(b)(3)(B) of the federal Workforce Investment Act of 1998, 29 USC 2853(b)(3)(B) and 2863(b)(3)(B).

      6. Development and continuous improvement of comprehensive State Performance Measures, including State Adjusted Levels of Performance to assess the effectiveness of Workforce Investment Activities in this state as required under Section 136(b) of the federal Workforce Investment Act of 1998, 29 USC 2871(b).

      7. Preparation of an annual report to the Secretary of the United States Department of Labor, as described in Section 136(d) of the federal Workforce Investment Act of 1998, 29 USC 2871(d).

      8. Development of the statewide employment statistics system described under section 15(e) of the federal Wagner-Peyser Act, 20 USC 49l-2(e).

      9. Development of an application and application process for an incentive grant under Section 503 of the federal Workforce Investment Act of 1998, 20 USC 9273.

    2. In addition to complying with the requirements of Section III.A, the Council shall also advise the Governor on broader standards to assess the effectiveness of the broader workforce development efforts that include Michigan universities, community colleges, and K-12 schools, as well as state- and federally-funded workforce development programs.

    3. The Council also shall advise the Governor and the Director of the Department of Labor and Economic Growth on the operation of the following programs:

      1. The Work First Program, authorized under Section 57f of The Social Welfare Act, 1939 PA 280, MCL 400.57f, or any successor statute.

      2. The Food Stamp Employment and Training Program authorized under the Section 6(d) of the federal Food Stamp Act of 1977, 7 USC 2015(d).

      3. The North American Free Trade Agreement (NAFTA) Transitional Adjustment Assistance Program authorized under Chapter 2 of Title II of the federal Trade Act of 1974, 19 USC 2271 to 2331.

      4. Adult Education Programs and Adult Learning Systems under Sections 107 and 107b of The State School Aid Act of 1979, 1979 PA 94, MCL 388.1707 and MCL 388.1707b, to the extent the programs are authorized under Michigan law.

    4. In exercising its duties under this Order, the Council may provide policy advice across workforce areas, including traditional adult workforce development, community colleges, career and technical education, and workforce elements of economic development.

    5. As requested by the Governor, the Council shall also advise the Governor and the Department of Labor and Economic Growth regarding policies in workforce development, adult education, career and technical education, community colleges, and the workforce elements of economic development. In exercising its duties under this Order, the Council shall endeavor to develop a unified state policy dialogue involving local workforce boards, universities, community colleges, K-12 schools, and other key stakeholders.

    6. The Council shall provide other information, advice, or assistance as requested by the Governor.

  4. OPERATIONS OF THE COUNCIL

    1. The Council may promulgate bylaws, not inconsistent with federal law, Michigan law, or this Order, governing its organization, operation, and procedures.

    2. The Council shall be staffed by personnel from and assisted by the Department of Labor and Economic Growth. The Michigan Economic Development Corporation may assist the Council in performing its functions if authorized under an agreement between the Michigan Economic Development Corporation and the Department of Labor and Economic Growth or the Michigan Strategic Fund.

    3. The Council shall meet at the call of the Chairperson and as may be provided in procedures adopted by the Council. Meetings of the Council shall be held within the State of Michigan. A member of the Council appointed under Section II.F failing to comply with attendance requirements adopted by the Council shall resign or may be removed from office by the Governor prior to the expiration of his or her term for failure to meet the responsibilities and perform the duties of his or her office.

    4. A majority of the members of the Council constitutes a quorum for the transaction of business. The Council shall act by majority vote of serving members participating in a meeting. To the extent authorized by Michigan law, the Council may authorize members to participate in a Council meeting by the use or telephonic or video equipment. Members participating in a meeting via telephonic or video equipment shall be deemed present at the meeting. Voting shall be conducted in person or by use of telephonic or video equipment.

    5. The Council may establish committees and subcommittees and request public participation on advisory panels as it deems necessary. The Council may adopt, reject, or modify recommendations made by committees, subcommittees, or advisory panels.

    6. The Council may, as appropriate, make inquiries, studies, investigations, hold hearings, and receive comments from the public.

    7. Members of the Council shall serve without compensation. Members of the Council may receive reimbursement for necessary travel and expenses according to relevant statutes and the rules and procedures of the Civil Service Commission and the Department of Management and Budget, subject to available appropriations.

    8. As required under Section 111(f) of the federal Workforce Investment Act of 1998, 29 USC 2821(f), a member of the Council may not do any of the following:

      1. Vote on a matter under consideration by the Council regarding the provision of services by the member or an entity the member represents.

      2. Vote on a matter under consideration by the Council that would provide direct financial benefit to the member or the immediate family of the member. As used in this paragraph, “family” means that term as defined under Section 101(15) of the federal Workforce Investment Act of 1998, 29 USC 2801(15).

      3. Engage in any other activity determined by the Governor to constitute a conflict of interest, as specified in the state plan outlining a 5-year strategy for the Statewide Workforce Investment System for this state, as required under Section 112 of the federal Workforce Investment Act of 1998, 29 USC 2822.

    9. To assure full compliance with the sunshine requirements under Section 111(g) of the federal Workforce Investment Act of 1998, 29 USC 2821(g), meetings of the Council shall be held according to procedures established under the Open Meetings Act, 1976 PA 267, MCL 15.261 to 15.275.

    10. To assure full compliance with the sunshine requirements under Section 111(g) of the federal Workforce Investment Act of 1998, 29 USC 2821(g), the Council is a public body under, and shall comply with, the Freedom of Information Act, 1976 PA 442, MCL 15.231 to 15.246.

    11. The Council shall adopt bylaws, policies, or procedures necessary for the implementation and enforcement of the requirements under Section IV.H, IV.I, and IV.J.

    12. The Council may hire or retain contractors, sub-contractors, advisors, consultants and agents, and may make and enter into contracts necessary or incidental to the exercise of the powers of the Council and the performance of its duties, as the Director of the Department of Labor and Economic Growth deems advisable and necessary in accordance with the relevant statutes, rules, and procedures of the Civil Service Commission and the Department of Management and Budget.

    13. The Council may accept donations of labor, services, or other things of value from any public or private agency or person.

    14. Members of the Council shall refer all legal, legislative, and media contacts to the Department of Labor and Economic Growth.

  5. RESCISSIONS

    1. The Governor’s Workforce Investment Board established under Executive Order 2002-5, MCL 408.101, is abolished. Executive Order 2002-5 is rescinded in its entirety.

    2. The Governor’s Workforce Commission established under Executive Order 1994-26, MCL 408.48, is abolished.

  6. MISCELLANEOUS

    1. All departments, committees, commissioners, or officers of this state or of any political subdivision of this state shall give to the Council, or to any member or representative of the Council, any necessary assistance required by the Council, or any member or representative of the Council, in the performance of the duties of the Council so far as is compatible with its, his, or her duties. Free access shall also be given to any books, records, or documents in its, his, or her custody, relating to matters within the scope of inquiry, study, or investigation of the Council.

    2. Any suit, action, or other proceeding lawfully commenced by, against, or before any entity affected by this Order shall not abate by reason of the taking effect of this Order. Any suit, action, or other proceeding may be maintained by, against, or before any appropriate successor of an entity affected by this Order.

    3. The invalidity of any portion of this Order shall not affect the validity of the remainder the order.

This Order is effective upon filing.

Given under my hand and the Great Seal of the State of Michigan this 6th day of December in the year of our Lord, two thousand and four.

__________________________________________
JENNIFER M. GRANHOLM
GOVERNOR

BY THE GOVERNOR:

__________________________________________
SECRETARY OF STATE