What The Law Requires: In general, training services shall be provided through the use of individual training accounts to eligible individuals through the "one-stop" delivery system. Training services are to be provided in a manner that maximizes consumer choice in the selection of an eligible training provider. The use of Individual Training Accounts (ITAs), help accomplish this purpose.

Process: State and local workforce investment boards are to establish performance-based criteria for certification of training providers. Boards will develop "consumer reports" containing verifiable information on provider costs and about how well each provider performs. The one-stop system will provide eligible individuals (its customers) with: a list of eligible training providers, their performance information and program cost so that individuals will be able to make informed training choices. An individual who seeks training services and is eligible may, in consultation a case manager, select a training provider from the list of eligible providers of training services. Upon such selection, the one-stop operator included shall, to the extent practicable, refer such individual to the eligible provider of training services, and arrange for payment for such services through the establishment of an individualized training account. ITAs enable the individual to select the kind of training he or she wants and where they want to get it.

Procedure: Payment for training services will be arranged through the Individual Training Accounts. States and local boards will determine how to structure these account systems in their local areas. For example, ITAs could take a variety of forms; they may include a voucher, purchase order, ATM-style debit card, a checkbook style ledger or an invoice. The Act does not prescribe a limit on the amount that may be provided to assist an individual in obtaining training. State and local workforce investment boards establish such limits.

Exceptions: Training services may be provided pursuant to a contract for services in lieu of an individual training account if:

• such services are on-the-job training provided by an employer or customized training

• the local board determines there are an insufficient number of eligible providers of training services in the local area involved (such as in a rural area) to accomplish the purposes of a system of individual training accounts

• the local board determines that there is a training services program of demonstrated effectiveness offered in the local area by a community-based organization or another private organization to serve special participant populations that face multiple barriers to employment, e.g. individuals with substantial language or cultural barriers, homeless individuals, offenders, other hard-to-serve populations as defined by the governor.

Labor’s Perspective: Individual training accounts will serve as the primary mechanism to provide workers with the skill training they need to gain self-sufficiency. The following principles should apply to ITAs:

• all workers should receive personalized counseling prior to selecting a training provider

• the amount of the ITA should cover the full costs of tuition and fees needed to accomplish the worker’s training goals

• workers should be provided with opportunities to leave training if it is not appropriate and to receive additional training with other providers

• workers should receive the necessary income support and other support needed to enroll and remain in training

• workers should be periodically contacted during training to determine their level of satisfaction with the training provider