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EXHIBIT 1 <br />• Title 2 CFR Part 2900: Uniform Administrative Requirements, Cost Principles, and Audit <br />Requirements for Federal Awards. [Department of Labor (DOL) Exceptions] <br />• Training and Employment Guidance Letter (TEGL) 11-19, Negotiations and Sanctions <br />Guidance for the W10A Core Programs (February 6, 2020) <br />• California Unemployment Insurance Code (CUIC) Section 14202 <br />• Workforce Services Directive WSD20-02, Calculating Local Area Performance and <br />Nonperformance (September 18, 2020) <br />• WSD14-10, Initial Local Area Designation and Local Board Certification Under W10A <br />(February 20, 2015) <br />BACKGROUND <br />W10A Sections 106 and 107 provide criteria for subsequent designation of Local Areas and <br />recertification of Local Boards. Specifically, W10A Section 106 requires the Governor to <br />designate Local Areas within the state, and W10A Section 107 requires the Governor to certify <br />one Local Board for each Local Area. <br />According to W10A Section 106, a Local Area must have performed successfully, sustained fiscal <br />integrity, and engaged in the regional planning process to receive subsequent designation. <br />According to W10A Section 107, a Local Board must have performed successfully, sustained <br />fiscal integrity, and met membership requirements to receive recertification. <br />The applications for the Local Area subsequent designation and Local Board recertification have <br />been combined into one application. Approved applications will be effective July 1, 2023 — June <br />30, 2025. <br />POLICY AND PROCEDURES <br />The long-term economic impact of the COVID-19 pandemic and related statewide shutdowns <br />has resulted in the need to provide ongoing state -imposed flexibility when establishing <br />guidelines for this round of Local Area subsequent designation and Local Board recertification. <br />As California continues to recover from the pandemic, the California Workforce Development <br />Board (CWDB) is prioritizing ways to better align the workforce development system with <br />industry and labor needs in order to address future skills gaps by investing in training that leads <br />to meaningful employment. <br />Definitions <br />Membership —The Local Board is in compliance with the membership requirements outlined <br />under W10A Section 107(b). <br />Page 2of5 <br />City Council 7-4 6/20/2023 <br />