[Excerpt from Federal Register / Vol. 59, No. 170 / Friday, September 2, 1994
/ 45815 (amendments to JTPA regulations)]
6. Part 631 is revised to read as follows:
PART 631--PROGRAMS UNDER TITLE III OF THE JOB TRAINING PARTNERSHIP
ACT
Subpart A--General Provisions
Sec.
631.1 Scope and purpose.
631.2 Definitions.
631.3 Participant eligibility.
631.4 Approved training rule.
Subpart B--Additional Title III Administrative Standards and Procedures
631.11 Allotment and obligation of funds by the Secretary.
631.12 Reallotment of funds by the Secretary.
631.13 Classification of costs at State and substate levels.
631.14 Limitations on certain costs.
631.15 Federal reporting requirements.
631.16 Complaints, investigations, and penalties.
631.17 Federal monitoring and oversight.
631.18 Federal by-pass authority.
631.19 Appeals.
Subpart C--Needs-Related Payments
631.20 Needs-related payments.
Subpart D--State Administration
631.30 Designation or creation and functions of a State dislocated
worker unit or office and rapid response assistance.
631.31 Monitoring and oversight.
631.32 Allocation of funds by the Governor.
631.33 State procedures for identifying funds subject to mandatory
Federal reallotment.
631.34 Designation of substate areas.
631.35 Designation of substate grantees.
631.36 Biennial State plan.
631.37 Coordination activities.
631.38 State by-pass authority.
Subpart E--State Programs
631.40 State program operational plan.
631.41 Allowable State activities.
Subpart F--Substate Programs
631.50 Substate plan.
631.51 Allowable substate program activities.
361.52 Selection of service providers.
631.53 Certificate of continuing eligibility.
Subpart G--Federal Delivery of Dislocated Worker Services through
National Reserve Account Fund
631.60 General.
631.61 Application for funding and selection criteria.
631.62 Cost limitations.
631.63 Reporting.
631.64 General administrative requirements.
631.65 Special Provisions for CAETA and DDP.
Subpart H--[Reserved]
Subpart I--Disaster Relief Employment Assistance
631.80 Scope and purpose.
631.81 Availability of funds.
631.82 Substate allocation.
631.83 Coordination.
631.84 Allowable projects.
631.85 Participant eligibility.
631.86 Limitations on disaster relief employment.
631.87 Definitions.
Authority: 29 U.S.C. 1579(a); Sec. 6305(f), Pub. L. 100-418, 102
Stat 1107; Sec. 631.30(d)(7) also issued under 29 U.S.C. 2107(a);
Sec. 631.37(e) also issued under Sec. 402, Pub. L. 100-689, 102
Stat. 4178-4179 (29 U.S.C. 1751 note).
Subpart A--General Provisions
Sec. 631.1 Scope and purpose.
This part implements Title III of the Act. Title III programs seek
to establish an early readjustment capacity for workers and firms in
each State; to provide comprehensive coverage to workers regardless of
the cause of dislocation; to provide early referral from the
unemployment insurance system to adjustment services as an integral
part of the adjustment process; to foster labor, management and
community partnerships with government in addressing worker
dislocation; to emphasize retraining and reemployment services rather
than income support; to create an on-going substate capacity to deliver
adjustment services; to tailor services to meet the needs of
individuals; to improve accountability by establishing a system of
mandated performance standards; to improve financial management by
monitoring expenditures and reallotting available funds; and to provide
the flexibility to target funds to the most critical dislocation
problems.
Sec. 631.2 Definitions.
In addition to the definitions contained in sections 4, 301, and
303(e) of the Act and Part 626 of this chapter, the following
definitions apply to programs under Title III of the Act and this part:
Substantial layoff (for participant eligibility) means any
reduction-in-force which is not the result of a plant closing and which
results in an employment loss at a single site of employment during any
30 day period for:
(a)(1) At least 33 percent of the employees (excluding employees
regularly working less than 20 hours per week); and
(2) At least 50 employees (excluding employees regularly working
less than 20 hours per week); or
(b) At least 500 employees (excluding employees regularly working
less than 20 hours per week).
Substantial layoff (for rapid response assistance) means any
reduction-in-force which is not the result of a plant closing and which
results in an employment loss at a single site of employment during any
30 day period for at least 50 employees (excluding employees regularly
working less than 20 hours per week) (section 314(b)(4)).
Sec. 631.3 Participant eligibility.
(a) Eligible dislocated workers, as defined in section 301 of the
Act, may participate in programs under this part. For the purposes of
determining eligibility under section 301(a)(1)(A) of the Act, the term
"eligible for" unemployment compensation includes any individual
whose wages from employment would be considered in determining
eligibility for unemployment compensation under Federal or State
unemployment compensation laws.
(b)(1) Except as provided in paragraph (b)(3) of this section,
workers who have not received an individual notice of termination but
who are employed at a facility for which the employer has made a public
announcement of planned closure shall be considered eligible dislocated
workers with respect to the provision of basic readjustment services
specifically identified in section 314(c) of the Act with the exception
of supportive services and relocation assistance.
(2) Individuals identified in paragraph (b)(1) of this section
shall be eligible to receive all services authorized in sections 314 of
the Act after a date which is 180 days prior to the scheduled closure
date of the facility, subject to the provisions of Sec. 631.20 of this
part and other applicable provisions regarding receipt of supportive
services.
(3) Paragraphs (b)(1) and (b)(2) of this section shall not apply to
individuals who are likely to remain employed with the employer or to
retire instead of seeking new employment.
(4) For the purposes of paragraph (b)(1) of this section, the
Governor shall establish criteria for defining public announcement.
Such criteria shall include provisions that the public announcement
shall be made by the employer and shall indicate a planned closure date
for the facility (section 314(h)).
(c) Eligible dislocated workers include individuals who were self-
employed (including farmers and ranchers) and are unemployed:
(1) Because of natural disasters, subject to the provisions of
paragraph (e) of this section; or
(2) As a result of general economic conditions in the community in
which they reside.
(d) For the purposes of paragraph (c) of this section, categories
of economic conditions resulting in the dislocation of a self-employed
individual may include, but are not limited to:
(1) Failure of one or more businesses to which the self-employed
individual supplied a substantial proportion of products or services;
(2) Failure of one or more businesses from which the self-employed
individual obtained a substantial proportion of products or services;
(3) Substantial layoff(s) from, or permanent closure(s) of, one or
more plants or facilities that support a significant portion of the
State or local economy.
(e) The Governor is authorized to establish procedures to determine
the eligibility to participate in programs under this part of the
following categories of individuals:
(1) Self-employed farmers, ranchers, professionals, independent
tradespeople and other business persons formerly self-employed but
presently unemployed.
(2) Self-employed individuals designated in paragraph (d)(1) of
this section who are in the process of going out of business, if the
Governor determines that the farm, ranch, or business operations are
likely to terminate.
(3) Family members and farm or ranch hands of individuals
identified under paragraphs (d)(1) and (2) of this section, to the
extent that their contribution to the farm, ranch, or business meets
minimum requirements as established by the Governor.
(f) The Governor is authorized to establish procedures to identify
individuals permanently dislocated from their occupations or fields of
work, including self-employment, because of natural disasters. For the
purposes of this paragraph (f), categories of natural disasters
include, but are not limited to, any hurricane, tornado, storm, flood,
high water, wind-driven water, tidal wave, tsunami, earthquake,
volcanic eruption, landslide, mudslide, drought, fire, or explosion.
(g) The State may provide services to displaced homemakers (as
defined in section 4 of the Act) under this part only if the Governor
determines that such services may be provided without adversely
affecting the delivery of such services to eligible dislocated workers
(section 311(b)(4)).
(h) An eligible dislocated worker issued a certificate of
continuing eligibility, as provided in Sec. 631.53 of this part, shall
remain eligible for assistance under this part for the period specified
in the certificate, not to exceed 104 weeks. The 45-day enrollment
provisions described in subpart B of part 627 of this chapter shall be
waived for eligible individuals who possess a valid certificate under
this paragraph and it is not required that a new application be taken
prior to participation.
(i) An eligible dislocated worker who does not possess a valid
certificate shall remain eligible if such individual:
(1) Remains unemployed, or
(2) Accepts temporary employment for the purpose of income
maintenance prior to and/or during participation in a training program
under this part with the intention of ending such temporary employment
at the completion of the training and entry into permanent unsubsidized
employment as a result of the training. Such temporary employment must
be with an employer other than that from which the individual was
dislocated. This provision applies to eligible individuals both prior
to and subsequent to enrollment.
(j) The Governor shall ensure that rapid response and basic
readjustment services under Title III of JTPA are made available to
workers who, under the NAFTA Worker Security Act (Pub. L. 103-182), are
members of a group of workers (including workers in any agricultural
firm or subdivision of an agricultural firm) for which the Governor has
made a finding that (1) the sales or production, or both, of such firm
or subdivision have decreased absolutely, and (2) imports from Mexico
or Canada of articles like or directly competitive with articles
produced by such firm or subdivision have increased; or (3) there has
been a shift in production by such workers' firm or subdivision to
exico or Canada of articles which are produced by the firm or
subdivision.
Sec. 631.4 Approved training rule.
An eligible dislocated worker who is participating in any
retraining activity, except on-the-job training, under Title III of the
Act or this part shall be deemed to be in training with the approval of
the State agency for purposes of section 3304(a)(8) of the Internal
Revenue Code of 1986. Participation in the approved training shall not
disqualify the individual from receipt of unemployment benefits to
which the individual is otherwise entitled (section 314(f)(2)).
Subpart B--Additional Title III Administrative Standards and
Procedures
Sec. 631.11 Allotment and obligation of funds by the Secretary.
(a) Funds shall be allotted among the various States in accordance
with section 302(b)(1) of the Act, subject to paragraph (b) of this
section.
(b) Funds shall be allotted among the various States in accordance
with section 302(b)(2)(A) and (B) of the Act as soon as satisfactory
data are available under section 462(e) of the Act.
(c) Allotments for the Commonwealth of the Northern Mariana Islands
and other territories and possessions of the United States shall be
made by the Secretary in accordance with the provisions of section
302(e) of the Act.
Sec. 631.12 Reallotment of funds by the Secretary.
(a) Based upon reports submitted by States pursuant to Sec. 631.15
of this part, the Secretary shall make determinations regarding total
expenditures of funds within the State with reference to the amount
required to be reallotted pursuant to section 303(b) of the Act. For
purposes of this paragraph (a)--
(1) The funds to be reallotted will be an amount equal to the sum
of:
(i) Unexpended funds in excess of 20 percent of the prior program
year's formula allotment to the State, and
(ii) All unexpended funds from the formula allotment for the
program year preceding the prior program year.
(2)(i) The current program year is the year in which the
determination is made; and
(ii) The prior program year is the year immediately preceding the
current program year.
(3) Unexpended funds shall mean the remainder of the total funds
made available by formula that were available to the State for the
prior program year minus total accrued expenditures at the end of the
prior program year.
(4) Reallotted funds will be made available from current year
allotments made available by formula.
(b) Based upon the most current and satisfactory data available,
the Secretary shall identify eligible States, pursuant to the
definitions in section 303(e) of the Act.
(c) The Secretary shall recapture funds from States identified in
paragraph (a) of this section and reallot and reobligate such funds by
a Notice of Obligation (NOO) adjustment to current year funds to
eligible States as identified in paragraph (b) of this section, as set
forth in section 303(a), (b), and (c) of the Act.
(d) Reallotted funds shall be subject to allocation pursuant to
Sec. 631.32 of this part, and to the cost limitations at Sec. 631.14 of
this part.
Sec. 631.13 Classification of costs at State and substate levels.
(a)(1) Allowable costs under Title III shall be planned,
controlled, and charged by either the State or the substate grantee
against the following cost categories: rapid response services, basic
readjustment services, retraining services, needs-related payments and
supportive services, and administration. Costs shall be reported to the
Secretary of Labor in accordance with the reporting requirements
established pursuant to Sec. 631.15 of this part.
(2) All costs shall be allocable to a particular cost category to
the extent that benefits are received by such category; and no costs
shall be chargeable to a cost category except to the extent that
benefits are received by such category.
(b) Rapid response services shall include the cost of rapid
response activities identified at section 314(b) of the Act.
(1) Staff salary and benefit costs are chargeable to the rapid
response services cost category only for that portion of staff time
actually spent on rapid response activities.
(2) All other costs are chargeable to the rapid response services
cost category only to the extent that they are for rapid response
purposes.
(c) Basic readjustment services shall include the cost of basic
readjustment services identified at section 314(c) of the Act, except
that the cost of supportive services under section 314(c)(15) of the
Act shall be charged to the needs-related payments and supportive
services cost category, as provided in paragraph (e) of this section.
(d) Retraining services shall include the cost of retraining
services identified at section 314(d) of the Act.
(e) Needs-related payments and supportive services shall include
the cost of needs-related payments identified in section 314(e) of the
Act, and supportive services identified in section 4(24) of the Act and
provided for in section 314(c)(15) of the Act.
(f)(1) Administration shall include the costs incurred by
recipients and subrecipients in the administration of programs under
Title III of the Act, and shall be that portion of necessary and
allowable costs which is not directly related to the provision of
services and otherwise allocable to the cost categories in paragraphs
(b) through (e) of this section. The description of administrative
costs in subpart D of part 627 of this chapter shall be used by States
and substate grantees as guidance in charging administration costs to
Title III programs.
(2) Administration does not include the costs of activities under
section 314(b) of the Act and which are provided for in paragraph (b)
of this section.
(3) Administration shall include Title III funds used for
coordination of worker adjustment programs with the Federal-State
unemployment compensation system and with Chapter 2 of Title II of the
Trade Act of 1974 (19 U.S.C. 2271, et seq.) and part 617 of this
chapter (sections 311(b)(10) and 314(f)).
Sec. 631.14 Limitations on certain costs.
(a) Retraining services. Of the funds allocated to a substate
grantee under part A of Title III for any program year, not less than
50 percent shall be expended for retraining services specified under
section 314(d) of the Act, unless a waiver of this requirement is
granted by the Governor. The Governor shall prescribe criteria that
will allow substate grantees to apply in advance for a waiver of this
requirement, pursuant to section 315(a)(2) of the Act. The Governor
shall prescribe the time and form for the submission of an application
for such a waiver, as provided for at section 315(a)(3) of the Act. The
Governor shall not grant a waiver that allows less than 30 percent of
the funds expended by a substate grantee to be expended for retraining
activities.
(b) Needs-related payments and supportive services. Of the funds
allocated to the Governor, or allocated to any substate grantee, under
part A of Title III for any program year, not more than 25 percent may
be expended to provide needs-related payments and other supportive
services.
(c) Administrative cost. Of the funds allocated to the Governor, or
allocated to any substate grantee, under part A of Title III for any
program year, not more than 15 percent may be expended to cover the
administrative cost of programs.
(d) Reallotted funds are subject to the cost limitations in
paragraphs (a), (b) and (c) of this section.
(e) Funds allocated (or distributed) to substate areas under the
provisions of section 302(c)(1)(E) of the Act shall be considered funds
allocated to a substate grantee for the program year of the funds'
initial allotment to the State, and included in the cost limitations in
paragraphs (a), (b) and (c) of this section.
(f) Funds reserved by the Governor under the provisions of Section
302(c)(1) of the Act, other than funds distributed to substate grantees
under the provisions of JTPA section 302(c)(1)(E), shall be considered
funds allocated to the Governor for the program year of the funds'
initial allotment to the State and included in the cost limitations
applicable to the Governor.
(g) States and substate grantees shall have the full period of time
that the funds are available to them to comply with the cost
limitations described in JTPA section 315 and paragraphs (a), (b), and
(c) of this section.
(h) Combination of funds. (1) Substate grantees within a State may
combine funds allocated under part A of Title III for provision of
services to eligible dislocated workers from two or more substate
areas. Funds contributed by the substate grantees under this section
remain subject to the cost limitations which apply to each substate
grantee's total allocation (section 315(d)).
(2) To combine funds under this provision, substate grantees must
be in contiguous substate areas or part of the same labor market area.
(i) For the purposes of this section:
(1) Allotment to the State means allotted by the formula described
in section 302(b) of the Act, as adjusted by reallotments among the
States, in accordance with section 303 of the Act. For purposes of
determining availability and of applying cost limitations, funds will
retain the identity of the program year in which they were initially
allotted to a State, irrespective of subsequent reallotments.
(2) Allocated to the substate grantee means allocated by the
formula prescribed by the Governor under section 302(b) of the Act, and
allocated (or distributed) under the provisions of section
302(c)(1)(E), as adjusted by within State reallocations implemented by
the Governor through procedures established pursuant to section 303(d)
of the Act. For purposes of determining availability and of applying
cost limitations, funds will retain the identity of the program year in
which they were initially allotted to the State.
(3) Allocated to the Governor refers to funds reserved by the
Governor for use in accordance with the provisions of section 302(c)(1)
of the Act, exclusive of any such funds which are distributed or
allocated to substate grantees pursuant to section 302(c)(1)(E).
(j) The cost limitations described in this section do not apply to
any designated substate grantee which served as a concentrated
employment program grantee for a rural area under the Comprehensive
Employment and Training Act (section 108(d)).
Sec. 631.15 Federal reporting requirements.
Notwithstanding the requirements in subpart D of part 627 of this
chapter, the Governor shall report to the Secretary pursuant to
instructions issued by the Secretary for programs and activities funded
under this part. Such reports shall include a cost breakdown of all
funds made available under this part used by the State Dislocated
Worker Unit for administrative expenditures. Reports shall be provided
to the Secretary within 45 calendar days after the end of the report
period (sections 165(a)(2) and 311(b)(11)).
Sec. 631.16 Complaints, investigations, and penalties.
The provisions of this section apply in addition to the sanctions
provisions in subpart G of part 627 of this chapter.
(a) The Secretary shall investigate a complaint or report received
from an aggrieved party or a public official which alleges that a State
is not complying with the provisions of the State plan required under
section 311(a) of the Act (section 311(e)(1)).
(b) Where the Secretary determines that a State has failed to
comply with its State plan, and that other remedies under the Act and
part 627 of this chapter are not available or are not adequate to
achieve compliance, the Secretary may withhold an amount not to exceed
10 percent of the allotment to the State for the program year in which
the determination is made for each such violation (section
311(e)(2)(A)).
(c) The Secretary will not impose the penalty provided for under
paragraph (b) of this section until all other remedies under the Act
and part 627 of this chapter for achieving compliance have been
exhausted or are determined to be unavailable or inadequate to achieve
State compliance with the terms of the State plan.
(d) The Secretary will make no determination under this section
until the affected State has been afforded adequate written notice and
an opportunity to request and to receive a hearing before an
administrative law judge pursuant to the provisions of subpart H of
part 627 of this chapter (section 311(e)(2)(B)).
Sec. 631.17 Federal monitoring and oversight.
The Secretary shall conduct oversight of State administration of
programs under this part, including the administration by each State of
the rapid response assistance services provided in such State. The
Secretary shall take the appropriate actions to ensure the
effectiveness, efficiency and timeliness of services conducted by the
State in accordance with Sec. 631.30(b) of this part (section
314(b)(3)).
Sec. 631.18 Federal by-pass authority.
(a) In the event that a State fails to submit a biennial State plan
that is approved under Sec. 631.36 of this part, the Secretary shall
make arrangements to use the amount that would be allotted to that
State for the delivery in that State of the programs, activities, and
services authorized under Title III of the Act and this part.
(b) No determination may be made by the Secretary under this
section until the affected State is afforded written notification of
the Secretary's intent to exercise by-pass authority and an opportunity
to request and to receive a hearing before an administrative law judge
pursuant to the provisions of subpart H of part 627 of this chapter.
(c) The Secretary will exercise by-pass authority only until such
time as the affected State has an approved plan under the provisions of
Sec. 631.36 of this part (section 321(b)).
Sec. 631.19 Appeals.
Except as provided in this part, disputes arising in programs under
this part shall be adjudicated under the appropriate State or local
grievance procedures required by subpart E of part 627 of this chapter
or other applicable law. Complaints alleging violations of the Act or
this part may be filed with the Secretary, pursuant to subpart F of
part 627 of this chapter. Paragraphs (a) through (e) of this section
refer to appeal rights set forth in this part.
(a) Section 628.405(g) of this chapter (appeals of denial of SDA
designation) shall apply to denial of substate area designations under
Sec. 631.34(c)(1) and (3) of this part.
(b) Section 628.426(e) of this chapter (appeals of final
disapproval of SDA job training plans or modifications) shall apply to
final disapproval of substate plans under Sec. 631.50(f) of this part.
(c) Section 628.426(f) of this chapter (appeals of a Governor's
notice of intent to revoke approval of all or part of a plan) shall
apply to a Governor's notice of intent to exercise by-pass authority
under Sec. 631.38 of this part.
(d) Section 628.430(b) of this chapter (appeals of the Secretary's
disapproval of a plan when the SDA is the State) shall apply to plan
disapproval when the substate area is the State, as set forth in
Sec. 631.50(g) and (h) of this part.
(e) Decisions pertaining to designations of substate grantees under
Sec. 631.35 of this part are not appealable to the Secretary.
Subpart C--Needs-related payments
Sec. 631.20 Needs-related payments.
(a) Title III funds available to States and substate grantees may
be used to provide needs-related payments to participants in accordance
with the approved State or substate plan, as appropriate.
(b) In accordance with the approved substate plan, needs-related
payments shall be provided to an eligible dislocated worker only in
order to enable such worker to participate in training or education
programs under this part. To be eligible for needs-related payments:
(1) An eligible worker who has ceased to qualify for unemployment
compensation must have been enrolled in a training or education program
by the end of the thirteenth week of the worker's initial unemployment
compensation benefit period, or, if later, by the end of the eighth
week after an employee is informed that a short-term layoff will in
fact exceed 6 months.
(2) For purposes of paragraph (b)(1) of this section, the term
enrolled in a training or education program means that the worker's
application for training has been approved and the training institution
has furnished written notice that the worker has been accepted in the
approved training program beginning within 30 calendar days.
(3) An eligible worker who does not qualify for unemployment
compensation must be participating in a training or education program
(section 314(e)(1)).
(c) Needs-related payments shall not be provided to any participant
for the period that such individual is employed, enrolled in, or
receiving on-the-job training, out-of-area job search, or basic
readjustment services in programs under the Act, nor to any participant
receiving trade readjustment allowances, on-the-job training, out-of-
area job search allowances, or relocation allowances under Chapter 2 of
Title II of the Trade Act of 1974 (19 U.S.C. 2271, et seq.) or part 617
of this chapter (section 314(e)(1)).
(d) The level of needs-related payments to an eligible dislocated
worker in programs under this part shall not exceed the higher of:
(1) The applicable level of unemployment compensation; or
(2) The poverty level (as by the published by the Secretary of
Health and Human Services) (section 314(e)(2)).
Subpart D--State Administration
Sec. 631.30 Designation or creation and functions of a State
dislocated worker unit or office, and rapid response assistance.
(a) Designation or creation of State dislocated worker unit or
office. The State shall designate or create an identifiable State
dislocated worker unit or office with the capabilities and functions
identified in paragraph (b) of this section. Such unit or office may be
an existing organization or new organization formed for this purpose
(section 311(b)(2)). The State dislocated worker unit or office shall:
(1) Make appropriate retraining and basic adjustment services
available to eligible dislocated workers through substate grantees, and
in statewide, regional or industrywide projects;
(2) Work with employers and labor organizations in promoting labor-
management cooperation to achieve the goals of this part;
(3) Operate a monitoring, reporting, and management system to
provide adequate information for effective program management, review,
and evaluation;
(4) Provide technical assistance and advice to substate grantees;
(5) Exchange information and coordinate programs with the
appropriate economic development agency, State education and training
and social services programs;
(6) Coordinate with the unemployment insurance system, the Federal-
State Employment Service system, the Trade Adjustment Assistance
program and other programs under this chapter;
(7) Receive advance notice of plant closings and mass layoffs as
provided at section 3(a)(2) of the Worker Adjustment and Retraining
Notification Act (29 U.S.C. 2102(a)(2) and part 639 of this chapter);
(8) Immediately notify (within 48 hours) the appropriate substate
grantees following receipt of an employer notice of layoff or plant
closing or of any other information that indicates a projected layoff
or plant closing by an employer in the grantee's substate area, in
order to continue and expand the services initiated by the rapid
response team (section 311(b)(3)(D));
(9) Fully consult with labor organizations where substantial
numbers of their members are to be served; and
(10) Disseminate throughout the State information on the
availability of services and activities under Title III of the Act and
this part.
(b) Rapid response capability. The dislocated worker unit shall
have one or more rapid response specialists, and the capability to
provide rapid response assistance, on-site, for dislocation events such
as permanent closures and substantial layoffs throughout the State. The
State shall not transfer the responsibility for the rapid response
assistance functions of the State dislocated worker unit to another
entity, but the State may contract with another entity to perform rapid
response assistance services. Nothing in this paragraph shall remove or
diminish the dislocated worker unit's accountability for ensuring the
effective delivery of rapid response assistance services throughout the
State (section 311(b)(12)).
(1) State rapid response specialists should be knowledgeable about
the resources available through programs under this part and all other
appropriate resources available through public and private sources to
assist dislocated workers. The expertise required by this part includes
knowledge of the Federal, State, and local training and employment
systems; labor-management relations and collective bargaining
activities; private industry and labor market trends; programs and
services available to veterans; and other fields necessary to carry out
the rapid response requirements of the Act.
(2) The rapid response specialists should have:
(i) The ability to organize a broad-based response to a dislocation
event, including the ability to coordinate services provided under this
part with other State-administered programs available to assist
dislocated workers, and the ability to involve the substate grantee and
local service providers in the assistance effort;
(ii) The authority to provide limited amounts of immediate
financial assistance for rapid response activities, including, where
appropriate, financial assistance to labor-management committees formed
under paragraph (c)(2) of this section;
(iii) Credibility among employers and in the employer community in
order to effectively work with employers in difficult situations; and
(iv) Credibility among employee groups and in the labor community,
including organized labor, in order to effectively work with employees
in difficult situations.
(3) The dissemination of information on the State dislocated worker
unit's services and activities should include efforts to ensure that
major employers, organized labor, and groups of employees not
represented by organized labor, are aware of the availability of rapid
response assistance. The State dislocated worker unit should make equal
effort in responding to dislocation events without regard to whether
the affected workers are represented by a union.
(4) In a situation involving an impending permanent closure or
substantial layoff, a State may provide funds, where other public or
private resources are not expeditiously available, for a preliminary
assessment of the advisability of conducting a comprehensive study
exploring the feasibility of having a company or group, including the
workers, purchase the plant and continue it in operation.
(5) Rapid response specialists may use funds available under this
part:
(i) To establish on-site contact with employer and employee
representatives within a short period of time (preferably 48 hours or
less) after becoming aware of a current or projected permanent closure
or substantial layoff in order to--
(A) Provide information on and facilitate access to available
public programs and services; and
(B) Provide emergency assistance adapted to the particular
permanent closure or substantial layoff; such emergency assistance may
include financial assistance for appropriate rapid response activities,
such as arranging for the provision of early intervention services and
other appropriate forms of immediate assistance in response to the
dislocation event;
(ii) To promote the formation of labor-management committees as
provided for in paragraph (c) of this section, by providing:
(A) Immediate assistance in the establishment of the labor-
management committee, including providing immediate financial
assistance to cover the start-up costs of the committee;
(B) A list of individuals from which the chairperson of the
committee may be selected;
(C) Technical advice as well as information on sources of
assistance, and liaison with other public and private services and
programs; and
(D) Assistance in the selection of worker representatives in the
event no union is present;
(iii) To provide ongoing assistance to labor-management committees
described in paragraph (c) of this section by:
(A) Maintaining ongoing contact with such committees, either
directly or through the committee chairperson;
(B) Attending meetings of such committees on an ex officio basis;
and
(C) Ensuring ongoing liaison between the committee and locally
available resources for addressing the dislocation, including the
establishment of linkages with the substate grantee or with the service
provider designated by the substate grantee to act in such capacity;
(iv) To collect information related to:
(A) Economic dislocation (including potential closings or layoffs);
and
(B) All available resources within the State for serving displaced
workers, which information shall be made available on a regular basis
to the Governor and the State Council to assist in providing an
adequate information base for effective program management, review, and
evaluation;
(v) To provide or obtain appropriate financial and technical advice
and liaison with economic development agencies and other organizations
to assist in efforts to avert worker dislocations;
(vi) To disseminate information throughout the State on the
availability of services and activities carried out by the dislocated
worker unit or office; and
(vii) To assist the local community in developing its own
coordinated response and in obtaining access to State economic
development assistance.
(6) Notwithstanding the definition of "substantial layoff (for
rapid response assistance)" at Sec. 631.2 of this part;
(i) The Governor shall provide rapid response and basic
readjustment services to members of a group of workers under the NAFTA
Worker Security Act for which the Governor has made a finding under
Sec. 631.3(j); and
(ii) The Governor may, under exceptional circumstances, authorize
rapid response assistance provided by a State dislocated worker unit
when the layoff is less than 50 or more individuals, is not at a single
site of employment, or does not take place during a single 30 day
period. For purposes of this provision, exceptional circumstances
include those situations which would have a major impact upon the
community(ies) in which they occur (section 314(b)).
(c) Labor-management committees. As provided in sections 301(b)(1)
and 314(b)(1)(B) of the Act, labor-management committees are a form of
rapid response assistance which may be voluntarily established to
respond to actual or prospective worker dislocation.
(1) Labor management committees ordinarily include (but are not
limited to) the following:
(i) Shared and equal participation by workers and management, with
members often selected in an informal fashion;
(ii) Shared financial participation between the company and the
State, using funds provided under Title III of the Act, in paying for
the operating expenses of the committee; in some instances, labor union
funds may help to pay committee expenses;
(iii) A chairperson, to oversee and guide the activities of the
committee who--
(A) Shall be jointly selected by the labor and management members
of the committee;
(B) Is not employed by or under contract with labor or management
at the site; and
(C) Shall provide advice and leadership to the committee and
prepare a report on its activities;
(iv) The ability to respond flexibly to the needs of affected
workers by devising and implementing a strategy for assessing the
employment and training needs of each dislocated worker and for
obtaining the services and assistance necessary to meet those needs;
(v) A formal agreement, terminable at will by the workers or the
company management, and terminable for cause by the Governor; and
(vi) Local job identification activities by the chairperson and
members of the committee on behalf of the affected workers.
(2) Because they include employee representatives, labor-management
committees typically provide a channel whereby the needs of eligible
dislocated workers can be assessed, and programs of assistance
developed and implemented, in an atmosphere supportive to each affected
worker. As such, committees must be perceived to be representative and
fair in order to be most effective.
Sec. 631.31 Monitoring and oversight.
The Governor is responsible for monitoring and oversight of all
State and substate grantee activities under this part. In such
monitoring and oversight of substate grantees, the Governor shall
ensure that expenditures and activities are in accordance with the
substate plan or modification thereof, and with the cost limitations
described in Sec. 631.14 of this part.
Sec. 631.32 Allocation of funds by the Governor.
Of the funds allotted to the Governor by the Secretary under
Sec. Sec. 631.11 and 631.12 of this part:
(a) The Governor shall issue allocations to substate grantees, the
sum of which shall be no less than 50 percent of the State's allotment
(section 302(d)).
(b)(1) The Governor shall prescribe the formula to be used in
issuing substate allocations required under paragraph (a) of this
section to substate grantees.
(2) The formula prescribed pursuant to paragraph (b)(1) of this
section shall utilize the most appropriate information available to the
Governor. In prescribing the formula, the Governor shall include (but
need not be limited to) the following information:
(i) Insured unemployment data;
(ii) Unemployment concentrations;
(iii) Plant closing and mass layoff data;
(iv) Declining industries data;
(v) Farmer-rancher economic hardship data; and
(vi) Long-term unemployment data.
(3) The Governor may allow for an appropriate weight for each of
the formula factors set forth in paragraph (b)(2) of this section. A
weight of zero for any of the factors required in section 302(d) of the
Act and identified in paragraph (b)(2) of this section shall only be
made when a review of available data indicates that the factor is not
relevant to determining the incidence of need for worker dislocation
assistance within the State. The formula may be amended no more
frequently than once each program year (section 302(d)).
(c) The Governor may reserve an amount equal to not more than 40
percent of the funds allotted to the State under Sec. 631.11 and
Sec. 631.12 of this part for State activities and for discretionary
allocations to substate grantees (section 302(c)(1)).
(d) The Governor may reserve an additional amount equal to not more
than 10 percent of the funds allotted to the State under Sec. 631.11 of
this part. The Governor shall allocate such funds, subject to the SJTCC
or HRIC review and comment, during the first three quarters of the
program year among substate grantees on the basis of need. Such funds
shall be allocated to substate grantees and shall not be used for
statewide activities. Such funds shall be included in each substate
grantee's allocation for purposes of cost limitations, as described in
Sec. 631.14 of this part (sections 302(c)(2) and 317(1)(B)).
Sec. 631.33 State procedures for identifying funds subject to
mandatory Federal reallotment.
The Governor shall establish procedures to assure the equitable
identification of funds required to be reallotted pursuant to section
303(b) of the Act. Funds so identified may be funds reserved by the
State pursuant to section 302(c)(1)(A) through (D) of the Act and/or
allocated to substate grantees pursuant to section 302(c)(1)(E), (c)(2)
and/or (d) of the Act (section 303(d)). Such procedures may not exempt
either State or substate funds from reallotment.
Sec. 631.34 Designation of substate areas.
(a) The Governor, after receiving recommendations from the SJTCC or
HRIC, shall designate substate areas for the State (section 312(a)).
(b) In designating substate areas, the Governor shall:
(1) Ensure that each service delivery area within the State is
included within a substate area and that no SDA is divided among two or
more substate areas; and
(2) Consider the availability of services throughout the State, the
capability to coordinate the delivery of services with other human
services and economic development programs, and the geographic
boundaries of labor market areas within the State.
(c) Subject to paragraph (b) of this section, the Governor shall
designate as a substate area:
(1) Any single SDA that has a population of 200,000 or more;
(2) Any two or more contiguous SDA's that:
(i) In the aggregate have a population of 200,000 or more; and
(ii) Request such designation; and
(3) Any concentrated employment program grantee for a rural area as
described in section 101(a)(4)(A)(iii) of the Act.
(d) In addition to the entities identified in paragraph (c) of this
section, the Governor may, without regard to the 200,000 population
requirement, designate SDAs with smaller populations as substate areas.
(e) The Governor may deny a request for substate area designation
from a consortium of two or more SDAs that meets the requirements of
paragraph (c)(2) of this section only upon a determination that the
request is not consistent with the effective delivery of services to
eligible dislocated workers in the relevant labor market area, or would
otherwise not be appropriate to carry out the purposes of title III.
The Governor will give good faith consideration to all such requests by
a consortium of SDAs to be a substate area. In denying a consortium's
request for substate area designation, the Governor shall set forth the
basis and rationale for the denial (section 312(a)(5)).
(f) In the case where the service delivery area is the State, the
entire State shall be designated as a single substate area.
(g)(1) Entities described in paragraphs (c)(1) and (3) of this
section may appeal the Governor's denial of substate area designation
to the Secretary of Labor. The procedures that apply to such appeals
shall be those set forth at Sec. 628.405(g) for appeals of the
Governor's denial of SDA designation.
(2) An entity described in paragraph (c)(2) of this section that
has been denied substate area designation may utilize the State-level
grievance procedures required by section 144(a) of the Act and subpart
E of part 627 of this chapter for the resolution of disputes arising
from such a denial.
(h) Designation of substate areas shall not be revised more
frequently than once every two years. All such designations must be
completed no later than four months prior to the beginning of any
program year (section 312(a)(6)).
Sec. 631.35 Designation of substate grantees.
The Governor may establish procedures for the designation of
substate grantees.
(a) Designation of the substate grantee for each substate area
shall be made on a biennial basis.
(b) Entities eligible for designation as substate grantees include:
(1) Private industry councils in the substate area;
(2) Service delivery area grant recipients or administrative
entities designated under Title II of the Act;
(3) Private non-profit organizations;
(4) Units of general local government in the substate area, or
agencies thereof;
(5) Local offices of State agencies; and
(6) Other public agencies, such as community colleges and area
vocational schools.
(c) Substate grantees shall be designated in accordance with an
agreement among the Governor, the local elected official or officials
of such area, and the private industry council or councils of such
area. Whenever a substate area is represented by more than one such
official or council, the respective officials and councils shall each
designate representatives, in accordance with procedures established by
the Governor (after consultation with the SJTCC or HRIC), to negotiate
such agreement.
(d) The agreement specified in paragraph (c) of this section shall
set forth the conditions, considerations, and other factors related to
the selection of substate grantees in accordance with section 312(b) of
the Act.
(e) The Governor shall negotiate in good faith with the parties
identified in paragraph (c) of this section and shall make a good faith
effort to reach agreement. In the event agreement cannot be reached on
the selection of a substate grantee, the Governor shall select the
substate grantee.
(f) Decisions under paragraphs (c), (d), and (e) of this section
are not appealable to the Secretary (section 312(b) and (c)).
Sec. 631.36 Biennial State plan.
(a) In order to receive an allotment of funds under Secs. 631.11
and 631.12 of this part, the State shall submit to the Secretary, in
accordance with instructions issued by the Secretary, on a biennial
basis, a biennial State plan (section 311). Such plan shall include:
(1) Assurances that--
(i) The State will comply with the requirements of Title III of the
Act and this part;
(ii) Services will be provided only to eligible displaced workers,
except as provided in paragraph (a)(2) of this section;
(iii) Services will not be denied on the basis of State of
residence to eligible dislocated workers displaced by a permanent
closure or substantial layoff within the State; and may be provided to
other eligible dislocated workers regardless of the State of residence
of such workers;
(2) Provision that the State will provide services under this part
to displaced homemakers only if the Governor determines that the
services may be provided to such workers without adversely affecting
the delivery of services to eligible dislocated workers;
(3) A description of the substate allotment and reallotment
procedures and assurance that they meet the requirements of the Act and
this part;
(4) A description of the State procurement system and procedures to
be used under Title III of the Act and this part which are consistent
with the provisions in subpart D of part 627 of this chapter; and
(5) Assurance that the State will not prescribe any performance
standard which is inconsistent with Sec. 627.470 of this chapter.
(b) The State biennial plan shall be submitted to the Secretary on
or before the May 1 immediately preceding the first of the two program
years for which the funds are to be made available.
(c) Any plan submitted under paragraph (a) of this section may be
modified to describe changes in or additions to the programs and
activities set forth in the plan. No plan modification shall be
effective unless reviewed pursuant to paragraph (d) of this section and
approved pursuant to paragraph (e) of this section.
(d) The Secretary shall review State biennial plans and plan
modifications, including any comments thereon submitted by the SJTCC or
HRIC, for overall compliance with the provisions of the Act, this part,
and the instructions issued by the Secretary.
(e) A State biennial plan or plan modification is submitted on the
date of its receipt by the Secretary. The Secretary shall approve a
plan or plan modification within 45 days of submission unless, within
30 days of submission, the Secretary notifies the Governor in writing
of any deficiencies in such plan or plan modification.
(f) The Secretary shall not finally disapprove the State biennial
plan or plan modification of any State except after written notice and
an opportunity to request and to receive a hearing before an
administrative law judge pursuant to the provisions of subpart H of
part 627 of this chapter.
Sec. 631.37 Coordination activities.
(a) Services under this part shall be integrated or coordinated
with services and payments made available under Chapter 2 of Title II
of the Trade Act of 1974 (19 U.S.C. 2271, et seq.) and part 617 of this
chapter and programs provided by any State or local agencies designated
under section 239 of the Trade Act of 1974 (19 U.S.C. 2311) or part 617
of this chapter (section 311(b)(10)). Such coordination shall be
effected under provisions of an interagency agreement when the State
agency responsible for administering programs under this part is
different from the State agency administering Trade Act programs.
(b) States may use funds allotted under Secs. 631.11 and 631.12 of
this part for coordination of worker readjustment programs, (i.e.,
programs under this part and trade adjustment assistance under part 617
of this chapter) and the unemployment compensation system consistent
with the limitation on administrative expenses (see Sec. 631.14(a)(1)
of this part). Each State shall be responsible for coordinating the
unemployment compensation system and worker readjustment programs
(section 314(f)).
(c) Services under this part shall be coordinated with dislocated
worker services under Title III of the Carl D. Perkins Vocational
Education Act (20 U.S.C. 2351, et seq.) (section 311(b)(5)).
(d) In promoting labor management cooperation, including the
formation of labor-management committees under this part, the
dislocated worker unit shall consider cooperation and coordination with
labor-management committees established under other authorities
(section 311(b)(3)(B)).
(e) In accordance with section 402 of the Veterans' Benefits and
Programs Improvement Act of 1988 (29 U.S.C. 1751 note) services under
this part shall be coordinated with programs administered by the
Department of Veterans Affairs and with other veterans' programs such
as the Veterans' Job Training Act (29 U.S.C. 1721 note), title IV-C of
the Job Training Partnership Act (29 U.S.C. 1721, et seq.), part 635 of
this chapter, and the Transition Assistance Program.
Sec. 631.38 State by-pass authority.
(a)(1) In the event that a substate grantee fails to submit a plan,
or submits a plan which is not approved by the Governor (see
Sec. 631.50(f) of this part), the Governor may direct the expenditure
of funds allocated to the substate area.
(2) The Governor's authority under this paragraph (a) to direct the
expenditure of funds remains in effect only until such time as a plan
is submitted and approved, or a new substate grantee is designated
(section 313(c)).
(3) The Governor shall not direct the expenditure of funds under
this paragraph (a) until after the affected substate grantee has been
afforded advance written notice of the Governor's intent to exercise
such authority and an opportunity to appeal to the Secretary pursuant
to the provisions of Sec. 628.426(e) of this chapter.
(b)(1) If a substate grantee fails to expend funds allocated to it
in accordance with its plan, the Governor, subject to appropriate
notice and opportunity for comment in the manner required by section
105(b)(1), (2), and (3) of the Act, may direct the expenditure of funds
only in accordance with the substate plan.
(2) The Governor's authority under this paragraph (b) to direct the
expenditure of funds shall remain in effect only until:
(i) The substate grantee corrects the failure;
(ii) The substate grantee submits an acceptable modification; or
(iii) A new substate grantee is designated (section 313(a) and
(d)).
(3) The Governor shall not direct the expenditure of funds under
this paragraph (b) until after the affected substate grantee has been
afforded advance written notice of the Governor's intent to exercise
such authority and an opportunity to appeal to the Secretary pursuant
to the provisions of Sec. 628.426(e) of this chapter.
(c) When the substate area is the State, the Secretary shall have
the same authority as the Governor under paragraphs (a) and (b) of this
section.
Subpart E--State Programs
Sec. 631.40 State program operational plan.
(a) The Governor shall submit to the Secretary biennially, in
accordance with instructions issued by the Secretary, a State program
operational plan describing the specific activities, programs and
projects to be undertaken with the funds reserved by the Governor under
Sec. 631.32(c) of this part.
(b) The State program operational plan shall include a description
of the mechanisms established between the Federal-State Unemployment
Compensation System, the Trade Adjustment Assistance Program, the State
Employment service and programs authorized under title III of the Act
and this part to coordinate the identification and referral of
dislocated workers and the exchange of information.
Sec. 631.41 Allowable State activities.
(a) States may use funds reserved under Sec. 631.32(c) of this
part, subject to the provisions of the State biennial and program
operational plans, for:
(1) Rapid response assistance;
(2) Basic readjustment services when undertaken in Statewide,
regional or industrywide projects, or, initially, as part of rapid
response assistance;
(3) Retraining services, including (but not limited to) those in
section 314(d) of the Act when undertaken in Statewide, industrywide
and regional programs;
(4) Coordination with the unemployment compensation system, in
accordance with Sec. 631.37(b) of this part;
(5) Discretionary allocation for basic readjustment and retraining
services to provide additional assistance to substate areas that
experience substantial increases in the number of dislocated workers,
to be expended in accordance with the substate plan or a modification
thereof;
(6) Incentives to provide training of greater duration for those
who require it; and
(7) Needs-related payments in accordance with section 315(b) of the
Act.
(b) Activities shall be coordinated with other programs serving
dislocated workers, including training under Chapter 2 of Title II of
the Trade Act of 1974 (19 U.S.C. 2271, et seq.) and part 617 of this
chapter.
(c) Where appropriate, State-level activities should be coordinated
with activities and services provided by substate grantees.
(d) Retraining services provided to individuals with funds
available to a State should be limited to those individuals who can
most benefit from and are in need of such services.
(e) Other than basic and remedial education, literacy and English
for non-English speakers training, retraining services provided with
funds available to a State shall be limited to those for occupations in
demand in the area or another area to which the participant is willing
to relocate, or in sectors of the economy with a high potential for
sustained demand or growth.
(f) Services provided to displaced homemakers should be part of
ongoing programs and activities under Title III and this part and not
separate and discrete programs.
(g) Basic readjustment services described in Sec. 631.3(b)(1),
provided to individuals who have not received a specific notice of
termination or layoff and who work at a facility at which the employer
has made a public announcement that such facility will close shall, to
the extent practicable be funded by the State with funds reserved under
Sec. 631.32(c) (section 314(h)).
(h) The provisions of section 107(a), (b) and (e) of the Act (but
not subsections (c) and (d) of section 107) and Sec. 627.422 of this
chapter apply to State selection of service providers for funded
activities authorized in Sec. 631.32(c) of this part.
Subpart F--Substate Programs
Sec. 631.50 Substate plan.
(a) In order to receive an allocation of funds under Sec. 631.32
of this part, the substate grantee shall submit to the Governor a
substate plan, in accordance with instructions issued by the Governor.
Such plan shall meet the requirements of this section and shall be
approved by the Governor prior to funds being allocated to a substate
grantee.
(b) The Governor shall issue instructions and schedules that assure
that substate plans and plan modifications conform to all requirements
of the Act and this part and contain the statement required by section
313(b) of the Act.
(c) Substate plans shall provide for compliance with the cost
limitation provisions of Sec. 631.14 of this part.
(d) The SJTCC or HRIC shall review and submit to the Governor
written comments on substate plans.
(e) Prior to the submission of the substate plan to the Governor,
the substate grantee shall submit the plan to the parties to the
agreement described in Sec. 631.35(c) of this part for review and
comment (section 313(a)).
(f) The Governor's review and approval (or disapproval) of a
substate plan or plan modification, and appeals to the Secretary from
disapprovals thereof, shall be conducted according to the provisions of
section 105 of the Act and Sec. 628.426 of this chapter (section
313(c)).
(g) If a substate grantee fails to meet the requirements for plan
submission and approval found in this section, the Governor may
exercise the by-pass authority set forth at Sec. 631.38 of this part.
(h) When the substate area is the State, the substate plan (and
plan modification(s)) shall be submitted by the Governor to the
Secretary. The dates for submission and consideration and the
Secretary's review and approval (or disapproval) of the plan or plan
modification, and appeals to administrative law judges from disapproval
thereof, shall be conducted according to the provisions of Sec. 628.430
of this chapter.
Sec. 631.51 Allowable substate program activities.
(a) The substate grantee may use JTPA section 302(c)(1), (c)(2),
and (d) funds allocated by the Governor under Sec. 631.32 of this part
for basic readjustment services, retraining services, supportive
services and needs-related payments.
(b) The provisions of Secs. 627.420 and 627.435 of this chapter
(Procurement, Cost principles and allowable costs) apply to funds
allocated to substate grantees under this part unless otherwise
specifically provided for.
(c) Other than basic and remedial education, literacy and English
for non-English speakers training, retraining services provided with
funds available to a substate area shall be limited to those for
occupations in demand in the area or another area to which the
participant is willing to relocate, or in sectors of the economy with a
high potential for sustained demand or growth.
(d) Retraining services provided to individuals with funds
available to a substate area should be limited to those individuals who
can most benefit from and are in need of such services (sections 312(e)
and 141(a)).
Sec. 631.52 Selection of service providers.
(a) The substate grantee shall provide authorized JTPA Title III
services within the substate area, pursuant to an agreement with the
Governor and in accordance with the approved State plan and substate
plan, including the selection of service providers.
(b) The substate grantee may provide authorized JTPA Title III
services directly or through contract, grant, or agreement with service
providers (section 312(d)).
(c) Services provided to displaced homemakers should be part of
ongoing programs and activities under Title III of the Act and this
part and not separate and discrete programs.
(d) The provisions of section 107(a), (b), (c) and (e) of the Act
and Sec. 627.422 of this chapter apply to substate grantee selection of
service providers as specified in this section.
Sec. 631.53 Certificates of continuing eligibility.
(a) A substate grantee may issue to any eligible dislocated worker
who has applied for the program authorized in this part a certificate
of continuing eligibility. Such a certificate of continuing
eligibility:
(1) May be effective for periods not to exceed 104 weeks;
(2) Shall not include any reference to any specific amount of
funds;
(3) Shall state that it is subject to the availability of funds at
the time any such training services are to be provided; and
(4) Shall be non-transferable.
(b) Acceptance of a certificate of continuing eligibility shall not
be deemed to be enrollment in training.
(c) Certificates of continuing eligibility may be used, subject to
the conditions included on the face of the certificate, in two distinct
ways:
(1) To defer the beginning of retraining: any individual to whom a
certificate of continuing eligibility has been issued under paragraph
(a) of this section shall remain eligible for retraining and education
services authorized under this part for the period specified in the
certificate, notwithstanding the definition of "eligible dislocated
worker" in section 301(a) of the Act or the participant eligibility
provisions in Sec. 631.3 of this part, and may use the certificate in
order to receive retraining services, subject to the limitations
contained in the certificate; or
(2) To permit eligible dislocated workers to seek out and arrange
their own retraining with service providers approved by the substate
grantee; retraining provided pursuant to the certificate shall be in
accord with requirements and procedures established by the substate
grantee and shall be conducted under a grant, contract, or other
arrangement between the substate grantee and the service provider.
(d) Substate grantees shall ensure that records are maintained
showing to whom such certificates of continuing eligibility have been
issued, the dates of issuance, and the number redeemed by substate
grantees.
Subpart G--Federal Delivery of Dislocated Worker Services Through
National Reserve Account Funds
Sec. 631.60 General.
This subpart provides for the use of funds reserved to the
Secretary for use under part B of title III of the Act. These funds may
be used for the allowable activities, described in section 323 of the
Act; demonstration programs, described in section 324 of the Act; the
Defense Conversion Adjustment Program (DCAP), described in section 325
of the Act; the Defense Diversification Program (DDP), described in
section 325A of the Act; Clean Air Employment Transition Assistance
(CAETA), described in section 326 of the Act; and similar uses and
programs which may be added to part B of title III of the Act.
Sec. 631.61 Application for funding and selection criteria.
To qualify for consideration for funds reserved by the Secretary
for activities under section 323 of the Act, applications shall be
submitted to the Secretary pursuant to instructions issued by the
Secretary specifying application procedures, selection criteria, and
approval process. Separate instructions will be issued for each
category of grant awards, as determined by the Secretary.
Sec. 631.62 Cost limitations.
The expenditure of funds provided to grantees under this subpart
shall be consistent with the cost limitations specified in the grant.
Applicants for grants under this subpart may propose, in their grant
applications, reasonable costs to be incorporated into the grant. The
Grant Officer may accept or modify such proposals at his/her
discretion. Where proposals do not adequately justify to the Grant
Officer's satisfaction the costs to be incorporated into the grant, the
cost limitations that shall be applied shall be those specified in
section 315 of the Act and described in paragraphs (a), (b) and (c) of
Sec. 631.14 of this part.
Sec. 631.63 Reporting.
(a) Grantees under part B of title III of the Act shall submit
reports as prescribed by the Secretary.
(b) Significant developments. Grantees shall notify the Secretary
of developments that have a significant impact on the grant or subgrant
supported activities, including problems, delays, or adverse conditions
which may materially impair the ability to meet the objectives of the
project. This notification shall include a statement of the action
taken, or contemplated, and any assistance needed to resolve the
situation.
Sec. 631.64 General administrative requirements.
(a) Activities under this subpart may be carried out and funding
provided directly to grantees other than States.
(b) All grantees and subgrantees under this subpart that are
States or substate grantees are subject to the provisions in part 627
of this chapter.
(c) For grantees other than States and substate grantees, the
following provisions shall apply to grants under this subpart.
(1) Grievance procedures. (i) Each grantee shall establish and
maintain a grievance procedure for grievances or complaints about its
programs and activities from participants, subgrantees, subcontractors,
and other interested persons. Hearings on any grievance shall be
conducted within 30 days of filing of a grievance and decisions shall
be made not later than 60 days after the filing of a grievance. Except
for complaints alleging fraud or criminal activity, complaints shall be
made within one year of the alleged occurrence.
(ii) Grantees shall be subject to the provisions of section 144 of
the Act, and 29 CFR part 95 or 97, as appropriate.
(iii) If the grantee is already subject to the grievance procedure
process and requirements established by the Governor (i.e., through
another JTPA grant, subgrant, or contract), its adherence to that
procedure shall meet the requirements of this paragraph (c)(1).
(2) Uniform Administrative Standards. Grantees shall be subject to
the standards and requirements described in 29 CFR part 95 or 97, as
appropriate, as well as any additional standards prescribed in grant
documents or Secretarial guidelines. If the grantee/ subgrantee is
already subject to additional standards established by the Governor
(i.e., through another JTPA grant, subgrant, or contract), its
adherence to those standards shall meet the requirements of this
paragraph (c)(2).
Sec. 631.65 Special provisions for CAETA and DDP.
(a) Allowances for Job Search Outside the Commuting Area under
CAETA. Allowances for job search outside the commuting area shall be an
allowable activity under CAETA, only where it has been determined that
the dislocated worker cannot reasonably be expected to secure suitable
employment within the commuting area in which the worker resides.
Procedures for determining whether a dislocated worker cannot
reasonably be expected to secure suitable employment within the
commuting area in which the dislocated worker resides shall be
described in the grant application and shall be subject to approval by
the Grant Officer. The cost of job search outside the commuting area
shall be an allowable cost, but shall not provide for more than 90
percent of the cost of necessary job search expenses, and may not
exceed a total of $800, unless the need for a greater amount is
justified in the grant application and approved by the Grant Officer.
(b) Relocation Allowances under CAETA. Relocation allowances under
CAETA shall be allowable only where the eligible dislocated worker
cannot reasonably be expected to secure suitable employment in the
commuting area in which the worker resides and has obtained suitable
employment affording a reasonable expectation of long-term duration in
the area in which the worker wishes to relocate, or has obtained a bona
fide offer of such employment, provided that the worker is totally
separated from employment at the time relocation commences. The cost of
relocation for an eligible dislocated worker shall not exceed an amount
which is equal to the sum of the reasonable and necessary expenses
incurred in transporting the dislocated worker and the dislocated
worker's family, if any, and household effects, and a lump sum
relocation allowance, equivalent to three times such worker's average
weekly wage. The maximum relocation allowance, however, shall not
exceed $800, unless a greater amount is justified in the grant
application and approved by the Grant Officer. Necessary expenses shall
be travel expenses for the dislocated worker and the dislocated
worker's family and for the transfer of household effects. Reasonable
costs for such travel and transfer expenses shall be by the least
expensive, most reasonable form of transportation.
(c) Needs-related payments under CAETA and DDP. Funds from grants
for CAETA and DDP shall be available for needs-related payments to
enable participants to participate in and complete training or
education programs under those grants, subject to the following:
(1) Needs-related payments shall be provided to the participant
only if the participant:
(i) Does not qualify or has ceased to qualify for unemployment
compensation;
(ii) Has been enrolled in training programs by the end of the 13th
week of an individual's initial unemployment benefit period following
the layoff or termination, or, if later, the end of the 8th week after
an individual is informed that a short-term layoff will exceed six
months;
(iii) Is making satisfactory progress in training or education
programs under this section, except that an individual shall not be
disqualified pursuant to this clause for a failure to participate that
is not the fault of the individual; and
(iv) Currently receives, or is a member of a family which currently
receives, a total family income (exclusive of unemployment
compensation, child support payments, and welfare payments) which, in
relation to family size, is not in excess of the lower living standard
income level.
(2) Needs-related payments shall be equal to the higher of:
(i) The applicable level of unemployment compensation; or
(ii) The poverty level determined in accordance with the criteria
established by the Director of the Office of Management and Budget.
(3) Total family income shall be reviewed periodically, based upon
information obtained from participants with respect to such income and
changes therein, to determine continued eligibility, or to begin
payments to individuals previously found ineligible for needs-related
payments under this section.
Subpart H--[Reserved]
Subpart I--Disaster Relief Employment Assistance
Sec. 631.80 Scope and purpose.
This subpart establishes a Disaster Relief Employment Assistance
program under title IV, part J of JTPA which shall be administered in
conjunction with the title III National Reserve Grants Programs.
Sec. 631.81 Availability of funds.
Funds appropriated to carry out this subpart may be made available
by grant to the Governor of any State within which is located an area
that has suffered an emergency or a major disaster as defined in
paragraphs (1) and (2), respectively, of section 102 of the Disaster
Relief Act of 1974 (42 U.S.C. 5122(1) and (2)) (referred to in this
subpart as the "disaster area"). The Secretary shall prescribe
procedures for applying for funds.
Sec. 631.82 Substate allocation.
(a) Not less than 80 percent of the grant funds available to any
Governor under Sec. 631.81 of this part shall be allocated by the
Governor to units of general local government located, in whole or in
part, within such disaster areas. The remainder of such funds may be
reserved by the Governor for use, in concert with State agencies, in
cleanup, rescue, repair, renovation, and rebuilding activities
associated with such major disaster.
(b) The JTPA title III program substate grantee for the disaster
area shall be the designated local entity for administration of the
grant funds under this subpart.
Sec. 631.83 Coordination.
Funds made available under this subpart to Governors and units of
general local government shall be expended in consultation with--
(a) Agencies administering programs for disaster relief provided
under the Disaster Relief Act of 1974; and
(b) The JTPA title II administrative entity and the private
industry council in each service delivery area within which disaster
employment programs will be conducted under this subpart.
Sec. 631.84 Allowable projects.
Funds made available under this subpart to any unit of general
local government in a disaster area--
(a) Shall be used exclusively to provide employment on projects
that provide food, clothing, shelter and other humanitarian assistance
for disaster victims; and on projects involving demolition, cleanup,
repair, renovation, and reconstruction of damaged and destroyed
structures, facilities, and lands located within the disaster area; and
(b) May be expended through public and private non-profit agencies
and organizations engaged in such projects.
Sec. 631.85 Participant eligibility.
An individual shall be eligible for disaster employment under this
subpart if such individual is--
(a)(1) Eligible to participate or enroll, or is a participant or
enrolled, under Title III of the Act, other than an individual who is
actively engaged in a training program; or
(2) Eligible to participate in programs or activities assisted
under Native American and Migrant Programs; and
(3) Unemployed as a consequence of the disaster.
(b) [Reserved].
Sec. 631.86 Limitations on disaster relief employment.
No individual shall be employed under this subpart for more than 6
months for work related to recovery from a single natural disaster
(described in Sec. 631.3(f) of this part).
Sec. 631.87 Definitions.
As used in this subpart, the term unit of general local government
includes:
(a) In the case of a community conducting a project in an Indian
reservation or Alaska Native village, the grantee designated under the
JTPA section 401 Indian and Native American Program (see part 632 of
this chapter), or a consortium of such grantees and the State; and
(b) In the case of a community conducting a project in a migrant or
seasonal farmworker community, the grantee designated under the JTPA
section 402 Migrant and Seasonal Farmworker Program (see part 633 of
this chapter), or a consortium of such grantees and the State.
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