(a) The ETA Regional Administrator shall be responsible for ensuring
that all State agencies in his/her region are in compliance with JS
regulations.
(b) Wherever a Regional Administrator discovers or is apprised of
possible State agency violations of JS regulations by the review and
assessment activities under subpart G of this part, or through required
reports or written complaints from individuals, organizations or
employers which are elevated to ETA after the exhaustion of State agency
administrative remedies, the Regional Administrator shall conduct an
investigation. Within 10 days after receipt of the report or other
information, the Regional Administrator shall make a determination
whether there is probable cause to believe that a State agency has
violated JS regulations.
(c) The Regional Administrator shall accept complaints regarding
possible State agency violations of JS regulations from employee
organizations, employers or other groups, without exhaustion of the
complaint process described at subpart E, if the Regional Administrator
determines that the nature and scope of the complaint are such that the
time required to exhaust the administrative procedures at the State
level would adversely affect a significant number of applicants. In such
cases, the Regional Administrator shall investigate the matter within 10
working days, may provide the State agency 10 working days for comment,
and shall make a determination within an additional 10 working days
whether there is probable cause to believe that the State agency has
violated JS regulations.
(d) If the Regional Administrator determines that there is no
probable cause to believe that a State agency has violated JS
regulations, he/she
shall retain all reports and supporting information in ETA files. In all
cases where the Regional Administrator has insufficient information to
make a probable cause determination, he/she shall so notify the
Administrator in writing and the time for the investigation shall be
extended 20 additional working days.
(e) If the Regional Administrator determines that there is probable
cause to believe that a State agency has violated JS regulations, he/she
shall issue a Notice of Initial Findings of Non-compliance by registered
mail to the offending State agency. The Notice will specify the nature
of the violation, cite the regulations involved, and indicate corrective
action which may be imposed in accordance with paragraphs (g) and (h) of
this section. If the non-compliance involves services to MSFWs or the JS
complaint system, a copy of said notice shall be sent to the National
MSFW Monitor Advocate.
(f)(1) The State agency shall have 20 working days to comment on the
findings, or a longer period, up to 20 additional days, if the Regional
Administrator determines that such a longer period is appropriate. The
State agency's comments shall include agreement or disagreement with the
findings and suggested corrective actions, where appropriate.
(2) After the period elapses, the Regional Administrator shall
prepare within 20 working days, written final findings which specify
whether or not the State agency has violated JS regulations. If in the
final findings the Regional Administrator determines that the State
agency has not violated JS regulations, the Regional Administrator shall
notify the State Administrator of this finding and retain supporting
documents in his/her files. If the final finding involves services to
MSFWs or the JS complaint system, the Regional Administrator shall also
notify the National Monitor Advocate. If the Regional Administrator
determines that a State agency has violated JS regulations, the Regional
Administrator shall prepare a Final Notice of Noncompliance which shall
specify the violation(s) and cite the regulations involved. The Final
Notice of Noncompliance shall be sent to the State agency by registered
mail. If the noncompliance involves services to MSFWs or the JS
complaint system, a copy of the Final Notice shall be sent to the
National MSFW Monitor Advocate.
(g) If the violation involves the misspending of grant funds, the
Regional Administrator may order in the Final Notice of Noncompliance a
disallowance of the expenditure and may either demand repayment or
withhold future funds in the amount in question. If the Regional
Administrator disallows costs, the Regional Administrator shall give the
reasons for the disallowance, inform the State agency that the
disallowance is effective immediately and that no more funds may be
spent in the unallowed manner, and offer the State agency the
opportunity to request a hearing pursuant to Sec. 658.707. The offer, or
the acceptance of an offer of a hearing, however, shall not stay the
effectiveness of the disallowance. The Regional Administrator shall keep
complete records of the disallowance.
(h) If the violation does not involve misspending of grant funds or
the Regional Administrator determines that the circumstances warrant
other action:
(1) The Final Notice of Noncompliance shall direct the State agency
to implement a specific corrective action plan to correct all
violations. If the State agency's comment demonstrates with supporting
evidence (except where inappropriate) that all violations have already
been corrected, the Regional Administrator need not impose a corrective
action plan and instead may cite the violations and accept their
resolution, subject to follow-up review, if necessary. If the Regional
Administrator determines that the violation(s) cited had been found
previously and that the corrective action(s) taken had not corrected the
violation(s) contrary to the findings of previous follow-up reviews, the
Regional Administrator shall apply remedial actions to the State agency
pursuant to Sec. 658.704.
(2) The Final Notice of Noncompliance shall specify the time by
which each corrective action must be taken. This period shall not exceed
40 working
days unless the Regional Administrator determines that exceptional
circumstances necessitate corrective actions requiring a longer time
period. In such cases, and if the violations involve services to MSFWs
or the JS complaint system, the Regional Administrator shall notify the
Administrator in writing of the exceptional circumstances which
necessitate a longer time period, and shall specify that time period.
The specified time period shall commence with the date of signature on
the registered mail receipt.
(3) When the time period provided for in paragraph (h)(2) of this
section elapses, ETA staff shall review the State agency's efforts as
documented by the State agency to determine if the corrective action(s)
has been taken and if the State agency has achieved compliance with JS
regulations. If necessary, ETA staff shall conduct a follow-up visit as
part of this review.
(4) If, as a result of this review, the Regional Administrator
determines that the State agency has corrected the violation(s), the
Regional Administrator shall record the basis for this determination,
notify the State agency, send a copy to the Administrator, and retain a
copy in ETA files.
(5) If, as a result of this review, the Regional Administrator
determines that the State has taken corrective action but is unable to
determine if the violation has been corrected due to seasonality or
other factors, the Regional Administrator shall notify in writing the
State agency and the Administrator of his/her findings. The Regional
Administrator shall conduct further follow-up at an appropriate time to
make a final determination if the violation has been corrected. If the
Regional Administrator's further follow-up reveals that violations have
not been corrected, the Regional Administrator shall apply remedial
actions to the State agency pursuant to Sec. 658.704.
(6) If, as a result of the review the Regional Administrator
determines that the State agency has not corrected the violations and
has not made good faith efforts and adequate progress toward the
correction of the violations, the Regional Administrator shall apply
remedial actions to the State agency pursuant to Sec. 658.704.
(7) If, as a result of the review, the Regional Administrator
determines that the State agency has made good faith efforts and
adequate progress toward the correction of the violation and it appears
that the violation will be fully corrected within a reasonable time
period, the State agency shall be advised by registered mail (with a
copy sent to the Administrator) of this conclusion, of remaining
differences, of further needed corrective action, and that all
deficiencies must be corrected within a specified time period. This
period shall not exceed 40 working days unless the Regional
Administrator determines that exceptional circumstances necessitate
corrective action requiring a longer time period. In such cases, the
Regional Administrator shall notify the Administrator in writing of the
exceptional circumstances which necessitate a longer time period, and
shall specify that time period. The specified time period shall commence
with the date of signature on the registered mail receipt.
(8) (i) If the State agency has been given an additional time period
pursuant to paragraph (b)(7) of this section, ETA staff shall review the
State agency's efforts as documented by the State agency at the end of
the time period. If necessary, ETA shall conduct a follow-up visit as
part of this review.
(ii) If the State agency has corrected the violation(s), the
Regional Administrator shall document that finding, notify in writing
the State agency and the Administrator, and retain supporting documents
in ETA files. If the State agency has not corrected the violation(s),
the Regional Administrator shall apply remedial actions pursuant to
Sec. 658.704.
