(a) A recipient may request a waiver of liability as described in
section 164(e)(2) of the Act.
(b)(1) When the debt for which a waiver of liability is desired was
established in a non-Federal resolution, such requests shall be
accompanied by a resolution report.
(2) When the ETA Grant Officer is resolving the finding(s) for which
a waiver of liability is desired, such request shall be made no later
than the informal resolution period described in Sec. 627.606(c) of this
part.
(c) A waiver of the recipient's liability can only be considered by
the Grant Officer when the misexpenditure of JTPA funds:
(1) Occurred at a subrecipient level;
(2) Was not a violation of section 164(e)(1) of the Act, or did not
constitute fraud; or
(3) If fraud did exist, it was perpetrated against the recipient/
subrecipient; and:
(i) The recipient/subrecipient discovered, investigated, reported,
and prosecuted the perpetrator of said fraud; and
(ii) After aggressive debt collection action, it can be documented
that there is no likelihood of collection from the perpetrator of the
fraud.
(4) The recipient has issued a final determination which disallows
the misexpenditure, the recipient's appeal process has been exhausted,
and a debt has been established; and
(5) The recipient requests such a waiver and provides documentation
to demonstrate that it has substantially complied with the requirements
of section 164(e)(2)(A), (B), (C), and (D) of the Act.
(d) The recipient shall not be released from liability for misspent
funds under the determination required by section 164(e) of the Act
unless the Grant Officer determines that further collection action,
either by the recipient or subrecipient, would be inappropriate or would
prove futile.
