(a) Funds available to the Governor under sections 202(c)(1)(B) and
262(c)(1)(B) of the Act shall be used to provide incentive grants to
SDA's and for capacity building and technical assistance.
(b) Incentive grants. (1) Not less than 67 percent of the funds
available under sections 202(c)(1)(B) and 262(c)(1)(B) of
the Act shall be used by the Governor to provide incentive grants for
programs, except programs under section 204(d) of the Act, exceeding
title II performance standards (section 106(b)(7)).
(2) Incentive grant funds under this section shall be distributed by
the Governor among SDA's within the State pursuant to section 106(b)(7)
of the Act.
(3) The Governor shall, as part of the annual statement of goals and
objectives required by section 121(a)(1) of the Act, provide SDA's with
the specific policies and procedures to implement section 106(b)(7) of
the Act.
(4) In a State which is the service delivery area, incentive grant
funds shall be distributed in a manner determined by the Governor and
described in the GCSSP. The Governor shall give consideration to
recognizing the performance of service providers within the State.
(5) SDA's should use incentive grant funds for capacity building and
technical assistance activities and/or for the conduct of allowable
Title II activities for eligible youth, eligible adults, or both, at the
discretion of the SDA.
(c) Capacity building and technical assistance. (1) Up to 33 percent
of the funds available under sections 202(c)(1)(B) and 262(c)(1)(B) of
the Act may be used by the Governor to provide capacity building and
technical assistance efforts aimed at improving the competencies of the
personnel who staff and administer JTPA including SDA's, service
providers, State staff, private industry councils, other job training
councils and related human service systems provided for in section
205(a) of the Act.
(2) In providing capacity building and technical assistance
activities, the Governor shall:
(i) Consult with SDA's concerning capacity building and technical
assistance activities consistent with the process specified in the
GCSSP;
(ii) Ensure that the use of funds will assist front line staff
providing services to participants by directing resources to SDA and
service provider staff for capacity building efforts, building a
statewide capacity building strategy based on an assessment of local
capacity building needs developed in cooperation with the SDA's, and/or
delivering training and technical assistance directly to the local
level;
(iii) Ensure that expenditures for the purchase of hardware/software
are only for the development of Statewide communications and training
mechanisms involving computer-based communication technologies that
directly facilitate interaction with the National Capacity Building and
Information Dissemination Network (National Network) described in
section 453 of the Act and that facilitate the use of computer-based
training techniques in capacity building and technical assistance
activities;
(iv) Ensure that State and local capacity building efforts are
coordinated and integrated with the National Network, pursuant to
sections 202(c)(3)(B) and 262(c)(3)(B) of the Act, and that materials
developed with funds under this section are made available to be shared
with other States, SDA's and the National Network. States and SDA's
retain the flexibility to tailor Network products to their own needs
and/or to produce and train on similar or related products when local
circumstances so dictate and;
(v) Provide technical assistance to service delivery areas failing
to meet performance standards pursuant to section 106(j)(2) of the Act.
(d) Cost sharing. (1) Cost sharing approaches are encouraged among
States, SDA's and/or among other Federal, State, and local human service
programs, including those listed in section 205(a) of the Act, in
developing electronic communications, training mechanisms and/or
contributing to the National Network.
(2) All shared costs shall be allocated among the contributing
funding sources on the basis of benefits received.
