(a) Non-designation of local areas. (1) The State must establish,
and include in its State Plan, due process procedures which provide
expeditious appeal to the State Board for a unit or combination of
units of general local government or a rural concentrated employment
program grant recipient (as described at WIA section 116(a)(2)(B)) that
requests, but is not granted, automatic or temporary and subsequent
designation as a local workforce investment area under WIA section
116(a)(2) or 116(a)(3).
(2) These procedures must provide an opportunity for a hearing and
prescribe appropriate time limits to ensure prompt resolution of the
appeal.
(3) If the appeal to the State Board does not result in
designation, the appellant may request review by the Secretary under
Sec. 667.645.
(4) If the Secretary determines that the appellant was not accorded
procedural rights under the appeal process established in paragraph
(a)(1) of this section, or that the area meets the requirements for
designation at WIA section 116(a)(2) or 116(a)(3), the Secretary may
require that the area be designated as a workforce investment area.
(b) Denial or termination of eligibility as a training provider.
(1) A State must establish procedures which allow providers of training
services the opportunity to appeal:
(i) Denial of eligibility by a Local Board or the designated State
agency under WIA section 122(b), (c) or (e);
(ii) Termination of eligibility or other action by a Local Board or
State agency under section 122(f); or
(iii) Denial of eligibility as a provider of on-the-job training
(OJT) or customized training by a One-Stop operator under WIA section
122(h).
(2) Such procedures must provide an opportunity for a hearing and
prescribe appropriate time limits to ensure prompt resolution of the
appeal.
(3) A decision under this State appeal process may not be appealed
to the Secretary.
(c) Testing and sanctioning for use of controlled substances. (1) A
State must establish due process procedures which provide expeditious
appeal for:
(i) WIA participants subject to testing for use of controlled
substances, imposed under a State policy established under WIA section
181(f); and
(ii) WIA participants who are sanctioned after testing positive for
the use of controlled substances, under the policy described in
paragraph (c)(i) of this section.
(2) A decision under this State appeal process may not be appealed
to the Secretary.
