Congress' passage of the Workforce Investment Act in August 1998 resulted in a transformation of job training and employment services, effectively replacing the Job Training Partnership Act system. The purpose of the Act, as provided in 29 USC 2821, is to "provide workforce investment activities, through statewide and local workforce investment systems, that increase the employment, retention, and earnings of participants, and increase occupational skill attainment by participants, and, as a result, improve the quality of the workforce, reduce welfare dependency, and enhance the productivity and competitiveness of the Nation." the Act further states that the "Governor of a State shall establish a State workforce investment board to assist in the development of the state plan" and to carry out other functions.
Each state board must include the Governor, members of the legislature, and gubernatorial appointees who are business owners, business executives, elected officials, representatives of labor organizations, individuals with experience in youth activities, state agency officials, and any other appropriate representatives, as determined by the Governor.