(a) Governor's responsibilities. The Governor shall allocate funds
available pursuant to sections 202(c)(1)(C) and 262(c)(1)(C) of the Act
to any State education agency. For the purposes of this section, ``State
education agency'' shall not include the State agency which administers
the JTPA program within the State or other agencies which do not have
education as a primary and operational function, such as correctional
agencies, although this limitation shall not preclude such an agency
from being an ultimate subrecipient of funds (section 123(a)(1)).
(b) Agreements. (1) The State education agency to be allocated funds
under section 123(a)(1) of the Act shall participate in joint planning
activities with the Governor in order to develop a plan which shall be
submitted in the GCSSP (section 123(c)).
(2) The Governor and the State education agency shall jointly agree
on the plan required in paragraph (b)(1) of this section, which shall
include a description of the agreements described in paragraph (b)(3) of
this section (section 123(c)).
(3) Projects to undertake the activities set forth in section
123(a)(2) shall be conducted in accordance with agreements between the
State education agency(ies) and administrative entities
in service delivery areas in the State. The agreements may include other
entities such as State agencies, local education agencies and
alternative service providers (section 123(b)(1)(B)).
(4)(i) When there is a failure by the State education agency and the
Governor to develop the joint plan described in paragraph (b)(2) of this
section, the Governor shall not allocate funds under section 123(a)(1)
to such education agency nor shall such funds be available for
expenditure by the Governor (section 123(c)).
(ii) When no State education agency accepts the allocation of funds
under section 123(a)(1), or when there is a failure to reach the
agreement(s) specified in paragraph (b)(3) of this section, the funds
may only be used by the Governor pursuant to section 123(e) and in
accordance with the GCSSP (section 123(e)).
(c) Allowable activities. (1) Funds made available for education
coordination and grants under section 123 of the Act shall be used to
pay the Federal share of education coordination and grants projects
(section 123(a)(2)).
(2) Projects, as defined at section 123(a)(2)(A), (B), and (C) of
the Act shall be conducted for eligible individuals and should include
those which:
(i) Provide school-to-work services of demonstrated effectiveness,
including youth apprenticeship programs;
(ii) Provide literacy and lifelong learning opportunities and
services of demonstrated effectiveness, including basic education and
occupational skills training; and
(iii) Provide statewide coordinated approaches to education and
training services, including model programs, designed to train, place,
and retain women in nontraditional employment (section 123(a)).
(3) Projects for coordination of education and training may also be
conducted which may include support activities pertaining to the HRIC
which meets the requirements of title VII.
(d) Expenditure requirements. (1)(i) At least 80 percent of the
funds allocated under section 202(c)(1)(C) and section 262(c)(1)(C) of
the Act shall be expended to pay for the Federal share of projects
described in paragraph (c)(2) of this section (section 123(d)(2)(B)).
(ii) The Governor shall assure that not less than 75 percent of the
funds expended for such projects are expended for projects for eligible
economically disadvantaged participants who experience barriers to
employment. For purposes of meeting this requirement, participants
meeting the conditions of section 263(a)(2)(B) and (C) and (g) of the
Act may be considered economically disadvantaged (section 123(d)(2)(C)).
(iii) Priority for funds not expended for the economically
disadvantaged shall be given to title III participants and persons with
barriers to employment.
(iv) The Governor may assure compliance with the requirement to
serve participants with barriers to employment by targeting projects to
particular barrier groups (e.g., school dropouts).
(2) Not more than 20 percent of funds allocated under section
202(c)(1)(C) of the Act may be expended to:
(i) Facilitate coordination of education and training services for
participants in the projects described in section 123(a)(2)(A), (B) and
(C), or
(ii)(A) Support activities pertaining to a HRIC that meets the
requirements of Sec. 628.215 of this part, or
(B) Support activities pertaining to a State council which carries
out functions similar to those of a HRIC if such council was established
prior to July 1, 1992.
(e) Contribution. (1) Except as provided in paragraph (e)(3) of this
section, the State shall provide for the contribution of funds, other
than the funds made available under this Act, of a total amount equal to
the amounts allotted under Section 123;
(2) The Governor shall define and assure the provision of adequate
resources by the State to meet the requirements of paragraph (e)(1) of
this section. Such amount may include the direct cost of employment and
training services provided by other Federal programs or agencies if such
use for matching is in accordance with the applicable Federal law
governing the use of such funds.
(3) When there is a failure to reach agreement between the State
education agency and the administrative
entity in the service delivery area, as set forth in paragraph (b)(3) of
this section, the requirement for the contribution of funds shall not
apply.
(f) Eligible youth, age 14 through 15, may be served in the program
under this section to the extent set forth in the agreements under
paragraph (b)(3) of this section.
