(a) If a State agency fails to correct violations as determined
pursuant to Sec. 658.702, the Regional Administrator shall apply one or
more of the following remedial actions to the State agency:
(1) Imposition of special reporting requirements for a specified
period of time;
(2) Restrictions of obligational authority within one or more
expense classifications;
(3) Implementation of specific operating systems or procedures for a
specified time;
(4) Requirement of special training for State agency personnel;
(5) With the approval of the Assistant Secretary and after affording
the State Administrator the opportunity to request a conference with the
Assistant Secretary, the elevation of specific decision-making functions
from the State Administrator to the Regional Administrator;
(6) With the approval of the Assistant Secretary and after affording
the State Administrator the opportunity to request a conference with the
Assistant Secretary, the imposition of Federal staff in key State agency
positions;
(7) With the approval of the Assistant Secretary and after affording
the State Administrator the opportunity to request a conference with the
Assistant Secretary, funding of the State agency on a short-term basis
or partial withholding of funds for a specific function or for a
specific geographical area;
(8) Holding of public hearings in the State on the State agency's
deficiencies;
(9) Disallowance of funds pursuant to Sec. 658.702(g); or
(10) If the matter involves a serious or continual violation, the
initiation of decertification procedures against the State agency, as
set forth in paragraph (e) of this section.
(b) The Regional Administrator shall send, by registered mail, a
Notice of Remedial Action to the State agency. The Notice of Remedial
Action shall set forth the reasons for the remedial action. When such a
notice is the result of violations of regulations governing services to
MSFWs (20 CFR 653.100 et seq.) or the JS complaint system (20 CFR
658.400 et seq.), a copy of said notice shall be sent to the USES
Administrator, who shall publish the notice promptly in the Federal
Register.
(c) If the remedial action is other than decertification, the notice
shall state that the remedial action shall take effect immediately. The
notice shall also state that the State agency may request a hearing
pursuant to Sec. 658.707 by filing a request in writing with the
Regional Administrator pursuant to Sec. 658.707 within 20 working days
of the State agency's receipt of the notice. The offer of hearing, or
the acceptance thereof, however, shall not stay the implementation of
remedial action.
(d) Within 60 working days after the initial application of remedial
action, the Regional Administrator shall conduct a review of the State
agency's compliance with JS regulations unless the Regional
Administrator determines that a longer time period is necessary. In such
cases, the Regional Administrator shall notify the USES Administrator in
writing of the circumstances which necessitate a longer time period, and
specify that time period. If necessary, ETA staff shall conduct a
follow-up visit as part of this review. If the State agency is in
compliance with the JS regulations, the Regional Administrator shall
fully document these facts and shall terminate the remedial actions. The
Regional Administrator shall notify the State agency of his/her
findings. When the case involves violations of regulations governing
services to MSFWs or the JS complaint system, a copy of said notice
shall be sent to the USES Administrator, who shall promptly publish the
notice in the Federal Register. The Regional Administrator shall
conduct, within a reasonable time after terminating the remedial
actions, a review of the State agency's compliance to determine whether
any remedial actions should be reapplied.
(e) If, upon conducting the on-site review referred to in paragraph
(c) of this section, the Regional Administrator
finds that the State agency remains in noncompliance, the Regional
Administrator shall continue the remedial action and/or impose different
additional remedial actions. The Regional Administrator shall fully
document all such decisions and, when the case involves violations of
regulations governing services to MSFWs or the JS complaint system,
shall send copies to the USES Administrator, who shall promptly publish
the notice in the Federal Register.
(f) (1) If the State agency has not brought itself into compliance
with JS regulations within 120 working days of the initial application
of remedial action, the Regional Administrator shall initiate
decertification unless the Regional Administrator determines that
circumstances necessitate continuing remedial action for a longer period
of time. In such cases, the Regional Administrator shall notify the USES
Administrator in writing of the circumstances which necessitate the
longer time period, and specify the time period.
(2) The Regional Administrator shall notify the State agency by
registered mail of the decertification proceedings, and shall state the
reasons therefor. Whenever such a notice is sent to a State agency, the
Regional Administrator shall prepare five indexed copies containing, in
chronological order, all the documents pertinent to the case along with
a request for decertification stating the grounds therefor. One copy
shall be retained. Two shall be sent to the ETA national office, one
shall be sent to the Solicitor of Labor, Attention: Associate Solicitor
for Employment and Training, and, if the case involves violations of
regulations governing services to MSFWs or the complaint system, one
copy shall be sent to the National MSFW Monitor Advocate. The notice
sent by the Regional Administrator shall be published promptly in the
Federal Register.
