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)).
