20 C.F.R. PART 631—PROGRAMS UNDER TITLE III OF THE JOB TRAINING PARTNERSHIP ACT
Title 20 - Employees' Benefits
Authority: 29 U.S.C. 1579(a); Sec. 6305(f), Pub. L. 100–418, 102 Stat 1107; §631.30(d)(7) also issued under 29 U.S.C. 2107(a); §631.37(e) also issued under Sec. 402, Pub. L. 100–689, 102 Stat. 4178–4179 (29 U.S.C. 1751 note).
Source: 59 FR 45857, Sept. 2, 1994, unless otherwise noted.
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. 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)). (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 §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 §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 Mexico or Canada of articles which are produced by the firm or subdivision. 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)). (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. (a) Based upon reports submitted by States pursuant to §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 §631.32 of this part, and to the cost limitations at §631.14 of this part. (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 §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)). (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)). 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)). 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)). 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 §631.30(b) of this part (section 314(b)(3)). (a) In the event that a State fails to submit a biennial State plan that is approved under §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 §631.36 of this part (section 321(b)). 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 §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 §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 §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 §631.50(g) and (h) of this part. (e) Decisions pertaining to designations of substate grantees under §631.35 of this part are not appealable to the Secretary. (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)). (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 §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 §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. 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 §631.14 of this part. Of the funds allotted to the Governor by the Secretary under §§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 §631.11 and §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 §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 §631.14 of this part (sections 302(c)(2) and 317(1)(B)). 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. (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 §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)). 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)). (a) In order to receive an allotment of funds under §§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 §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. (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 §§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 §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. (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 §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 §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 §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. (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 §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. (a) States may use funds reserved under §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 §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 §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 §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 §627.422 of this chapter apply to State selection of service providers for funded activities authorized in §631.32(c) of this part. (a) In order to receive an allocation of funds under §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 §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 §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 §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 §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 §628.430 of this chapter. (a) The substate grantee may use JTPA section 302(c)(1), (c)(2), and (d) funds allocated by the Governor under §631.32 of this part for basic readjustment services, retraining services, supportive services and needs-related payments. (b) The provisions of §§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)). (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 §627.422 of this chapter apply to substate grantee selection of service providers as specified in this section. (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 §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. 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. 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. 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 §631.14 of this part. (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. (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). (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. 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. 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. (a) Not less than 80 percent of the grant funds available to any Governor under §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. 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. 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. 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] 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 §631.3(f) of this part). 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.
Title 20: Employees' Benefits
PART 631—PROGRAMS UNDER TITLE III OF THE JOB TRAINING PARTNERSHIP ACT
Section Contents
§ 631.1 Scope and purpose.
§ 631.2 Definitions.
§ 631.3 Participant eligibility.
§ 631.4 Approved training rule.
§ 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.
§ 631.20 Needs-related payments.
§ 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.
§ 631.40 State program operational plan.
§ 631.41 Allowable State activities.
§ 631.50 Substate plan.
§ 631.51 Allowable substate program activities.
§ 631.52 Selection of service providers.
§ 631.53 Certificates of continuing eligibility.
§ 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.
§ 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.
Subpart A—General Provisions
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§ 631.1 Scope and purpose.
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§ 631.2 Definitions.
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§ 631.3 Participant eligibility.
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§ 631.4 Approved training rule.
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Subpart B—Additional Title III Administrative Standards and Procedures
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§ 631.11 Allotment and obligation of funds by the Secretary.
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§ 631.12 Reallotment of funds by the Secretary.
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§ 631.13 Classification of costs at State and substate levels.
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§ 631.14 Limitations on certain costs.
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§ 631.15 Federal reporting requirements.
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§ 631.16 Complaints, investigations, and penalties.
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§ 631.17 Federal monitoring and oversight.
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§ 631.18 Federal by-pass authority.
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§ 631.19 Appeals.
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Subpart C—Needs-related payments
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§ 631.20 Needs-related payments.
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Subpart D—State Administration
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§ 631.30 Designation or creation and functions of a State dislocated worker unit or office, and rapid response assistance.
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§ 631.31 Monitoring and oversight.
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§ 631.32 Allocation of funds by the Governor.
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§ 631.33 State procedures for identifying funds subject to mandatory Federal reallotment.
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§ 631.34 Designation of substate areas.
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§ 631.35 Designation of substate grantees.
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§ 631.36 Biennial State plan.
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§ 631.37 Coordination activities.
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§ 631.38 State by-pass authority.
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Subpart E—State Programs
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§ 631.40 State program operational plan.
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§ 631.41 Allowable State activities.
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Subpart F—Substate Programs
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§ 631.50 Substate plan.
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§ 631.51 Allowable substate program activities.
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§ 631.52 Selection of service providers.
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§ 631.53 Certificates of continuing eligibility.
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Subpart G—Federal Delivery of Dislocated Worker Services Through National Reserve Account Funds
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§ 631.60 General.
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§ 631.61 Application for funding and selection criteria.
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§ 631.62 Cost limitations.
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§ 631.63 Reporting.
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§ 631.64 General administrative requirements.
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§ 631.65 Special provisions for CAETA and DDP.
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Subpart H [Reserved]
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Subpart I—Disaster Relief Employment Assistance
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§ 631.80 Scope and purpose.
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§ 631.81 Availability of funds.
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§ 631.82 Substate allocation.
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§ 631.83 Coordination.
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§ 631.84 Allowable projects.
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§ 631.85 Participant eligibility.
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§ 631.86 Limitations on disaster relief employment.
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§ 631.87 Definitions.
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