[Excerpt from Federal Register / Vol. 59, No. 170 / Friday, September 2, 1994
/ 45815 (amendments to JTPA regulations)]


    2. Part 628 is revised to read as follows:

PART 628--PROGRAMS UNDER TITLE II OF THE JOB TRAINING PARTNERSHIP 
ACT

Subpart A--Scope and Purpose

Sec.
628.100  Scope and purpose of part 628.

Subpart B--State Planning

628.200  Scope and purpose.
628.205  Governor's coordination and special services plan.
628.210  State Job Training Coordinating Council.
628.215  State Human Resource Investment Council.

Subpart C--State Programs

628.300  Scope and purpose.
628.305  State distribution of funds.
628.310  Administration.
628.315  Education coordination and grants.
628.320  Services for older individuals.
628.325  Incentive grants, capacity building and technical 
assistance.

Subpart D--Local Service Delivery System

628.400  Scope and purpose.
628.405  Service delivery areas.
628.410  Private Industry Council.
628.415  Selection of SDA grant recipient and administrative entity.
628.420  Job training plan.
628.425  Review and approval.
628.426  Disapproval or revocation of the plan.
628.430  State SDA submission.

Subpart E--Program Design Requirements for Programs Under Title II of 
the Job Training Partnership Act

628.500  Scope and purpose.
628.505  Eligibility.
628.510  Intake, referrals, and targeting.
628.515  Objective assessment.
628.520  Individual service strategy.
628.525  Limitations.
628.530  Referrals of participants to non-title II programs.
628.535  Limitations on job search assistance.
628.540  Volunteer program.
628.545  Linkages and coordination.
628.550  Transfer of funds.

Subpart F--The Adult Program

628.600  Scope and purpose.
628.605  Eligibility.
628.610  Authorized services.

Subpart G--The Summer Youth Employment and Training Program

628.700  Scope and purpose.
628.701  Program goals and objectives.
628.702  Enriched Educational Component.
628.703  Private Sector Summer Jobs.
628.704  Eligibility.
628.705  SYETP authorized services.
628.710  Period of program operation.

Subpart H--Youth Training Program

628.800  Scope and purpose.
628.803  Eligibility.
628.804  Authorized services.


    Authority: 29 U.S.C. 1579(a).

Subpart A--Scope and Purpose


Sec. 628.100  Scope and purpose of part 628.


    (a) This part sets forth requirements for implementation of 
programs under title II of the Job Training Partnership Act, and 
includes the councils described in subpart B that have responsibilities 
under titles I, II, and III. In this part, the provisions generally 
pertaining to title II are covered in subparts B, C, D, and E. Matters 
specific to titles IIA, II-B, or II-C are addressed in subparts F, G, 
or H, respectively.

    (b) Title II-A Adult Training programs are to prepare adults for 
participation in the labor force by providing job training and other 
services that will result in increased employment and earnings, 
increased occupational and educational skills, reduced welfare 
dependency, and result in improved long-term employability.

    (c) Title II-B Summer Youth Employment and Training programs are to 
provide eligible youth with exposure to the world of work, to enhance 
the basic education skills of youth, to encourage school completion or 
enrollment in supplemental or alternative school programs and to 
enhance the citizenship skills of youth.

    (d) Title II-C Youth Training programs are to improve the long-term 
employability of youth; to enhance the educational, occupational and 
citizenship skills of youth; to encourage school completion or 
enrollment in alternative school programs; to increase the employment 
and earnings of youth; to reduce welfare dependency; and to assist 
youth in addressing problems that impair their ability to make 
successful transition from school to work, to apprenticeship, to the 
military or to postsecondary education and training.

Subpart B--State Planning


Sec. 628.200  Scope and Purpose.


    This subpart provides requirements for the submission of the 
Governor's Coordination and Special Services Plan, as well as the 
procedures for plan review. This subpart also contains requirements for 
the composition and responsibilities of the State Job Training 
Coordinating Council and the State Human Resource Investment Council.
Sec. 628.205  Governor's coordination and special services plan.


     (a)(1) Submittal. By a date established by the Secretary, each 
State seeking financial assistance under the Act shall submit to the 
Secretary, biennially, the Governor's coordination and special services 
plan (GCSSP) encompassing two program years (section 121(a)).

    (2) The GCSSP shall address the requirements of section 121(b) of 
the Act, including a description of the Governor's coordination 
criteria; the measures taken by the State to ensure coordination and 
prevent duplication with the Job Opportunities and Basic Skills (JOBS) 
program; the certification of the implementation of the procurement 
system, as required at section 164(a)(6) of the Act; the technical 
assistance and training plan; goals, and the efforts to accomplish such 
goals, for the training and placement of women in nontraditional 
employment and apprenticeship; the projected use of resources, 
including oversight of program performance; program administration; 
program financial management and audit resolution procedures; capacity 
building; priorities and criteria for State incentive grants; and 
performance goals for State supported programs (section 121(b)).

    (b) GCSSP review. The Secretary shall review the GCSSP for overall 
compliance with the provisions of the Act. If the GCSSP is disapproved, 
the Secretary shall notify the Governor, in writing, within 45 days of 
submission of the reasons for disapproval so that the Governor may 
modify the plan to bring it into compliance with the Act (section 
121(d)).

    (c) Information to SDA's. (1) In the year preceding the program 
years for which the plan is developed, the State shall make available 
to the SDA's in the State information on its plans to undertake State 
activities in program areas including education coordination grants, 
services to older workers, and capacity building.

    (2) The information described in paragraph (c)(1) of this section 
shall be provided to SDA's in sufficient time for SDA's to take it into 
consideration in developing local job training plans.


Sec. 628.210  State Job Training Coordinating Council.


    (a) The Governor shall appoint a State Job Training Coordinating 
Council (SJTCC) pursuant to section 122 of the Act. In lieu of a SJTCC, 
the Governor may establish and utilize a State Human Resource 
Investment Council (HRIC) pursuant to section 701 of the Act and in 
accordance with Sec. 628.215 of this part.

    (b) Consistent with section 122(a)(3) of the Act, the SJTCC shall 
be composed as follows: 30 percent, business and industry 
representatives; 30 percent, State and local government and local 
education agency representatives; 30 percent, organized labor and 
community-based organization representatives; and 10 percent, 
representatives from the general public. The SJTCC shall have the 
specific functions and responsibilities outlined in sections 122, 317, 
and 501 of the Act.

    (c) Funding for the SJTCC shall be provided pursuant to sections 
202(c)(1)(A) and 262(c)(1)(A) of the Act.

    (d) The SJTCC shall:

    (1) Analyze the SDAs' reports made pursuant to section 104(b)(13) 
of the Act and make recommendations for technical assistance and 
corrective action, and

    (2) Prepare a summary of such reports and disseminate them to SDA's 
and service providers in the State and to the Secretary (section 
122(a)(5) and (6)).


Sec. 628.215  State Human Resource Investment Council.


    (a) Establishment and responsibilities. The State may, in 
accordance with sections 701, 702, and 703 of the Act, establish a 
State Human Resource Investment Council (HRIC). The HRIC's 
responsibilities are described at section 701(a) of the Act. The HRIC 
shall carry out the following responsibilities:

    (1) Review the provision of services and the use of funds and 
resources under applicable Federal human resource programs and advise 
the Governor on methods of coordinating such provision of services and 
use of funds and resources consistent with the laws and regulations 
governing such programs;

    (2) Advise the Governor on the development and implementation of 
State and local standards and measures relating to applicable Federal 
human resource programs and coordination of such standards and 
measures; and

    (3) Carry out the duties and functions prescribed for existing 
State councils described under the laws relating to the applicable 
Federal human resource programs, including the responsibilities of the 
State Council on Vocational Education (SCOVE) under Section 112 of the 
Carl D. Perkins Vocational and Applied Technology Education Act.

    (4) Perform other functions as specified by the Governor (section 
701).

    (b) Applicable Programs. For the purposes of this section, the 
programs included are those listed at section 701(b)(2) of the Act. A 
program shall be included only if the Governor and the head of the 
State agency responsible for the administration of the program jointly 
agree to include such program. In addition, programs under the Carl 
Perkins Vocational and Applied Technology Act shall require the 
agreement of the State council on vocational education (section 
701(b)(1)(B)).

    (c) Composition. (1) The Governor shall establish procedures to 
ensure appropriate representation on the HRIC from among the categories 
of representation specified in section 702 of the Act.

    (2) In addition, when the functions and responsibilities of the 
SCOVE are included on the HRIC, the Governor is encouraged to consider 
appointing the State Director for Vocational Education as a 
representative on the HRIC.

    (d) Funding. (1) Funding to carry out the functions of the HRIC 
shall be available pursuant to section 703(a) of the Act.

    (i) The costs associated with the operation of the HRIC should be 
allocated among the various funding sources based on the relationship 
of each funding source or program to total spending of all applicable 
funding sources and programs (section 703(d)).

    (ii) Costs of the HRIC that are in excess of costs paid by funds 
from participating State agencies are, subject to the availability of 
funds from applicable JTPA sources, allowable JTPA costs (section 
703(a) and (d)).

    (2) A HRIC which meets the requirements of title VII and includes 
each of the programs listed at section 701(b)(2)(A) of the Act shall be 
authorized to use JTPA State Education Coordination and Grants funds 
(section 123(a)(2)(D)(ii)).

    (e) Replacement of other councils. A HRIC meeting the requirements 
of title VII of the Act shall replace the councils of the participating 
programs listed at section 701(b)(2)(A) of the Act.

    (f) Expertise. The Governor shall ensure that in the composition of 
the HRIC and the staff of the HRIC there exists the proper expertise to 
carry out the functions of the HRIC and the council(s) it replaces 
(sections 702(c)(2) and 703(b)).

    (g) Certification. Each State, as part of the certification process 
to the Secretary, shall ensure that the council meets the requirements 
of sections 701, 702, and 703. This certification shall be made in 
writing and submitted to the Secretary, with a copy provided to the 
Secretary of Education, at least 90 days before the beginning of each 
period of 2 program years for which a job training plan is submitted 
under the Act.

Subpart C--State Programs


Sec. 628.300  Scope and purpose.


    This subpart provides requirements for the State-operated programs 
including the education coordination and grants, services to older 
workers, and incentive grants to SDA's and grants to SDA's for capacity 
building and technical assistance.


Sec. 628.305  State distribution of funds.

    (a) The funds made available to the Governor under sections 202(c) 
and 262(c) of the Act shall be used to carry out activities and 
services under this subpart.


Sec. 628.310  Administration.


    Funds provided to the Governor under sections 202(c)(1)(A) and 
262(c)(1)(A) of the Act may be used for overall administration, 
management, oversight of program performance; technical assistance to 
SDA's failing to meet performance standards, as described in section 
106(j)(1) of the Act; auditing; and activities under sections 121 and 
122 of the Act.


Sec. 628.315  Education coordination and grants.


    (a) Governor's responsibilities. The Governor shall allocate funds 
available pursuant to sections 202(c)(1)(C) and 262(c)(1)(C) of the Act 
to any State education agency. For the purposes of this section, 
"State education agency" shall not include the State agency which 
administers the JTPA program within the State or other agencies which 
do not have education as a primary and operational function, such as 
correctional agencies, although this limitation shall not preclude such 
an agency from being an ultimate subrecipient of funds (section 
123(a)(1)).

    (b) Agreements. (1) The State education agency to be allocated 
funds under section 123(a)(1) of the Act shall participate in joint 
planning activities with the Governor in order to develop a plan which 
shall be submitted in the GCSSP (section 123(c)).

    (2) The Governor and the State education agency shall jointly agree 
on the plan required in paragraph (b)(1) of this section, which shall 
include a description of the agreements described in paragraph (b)(3) 
of this section (section 123(c)).

    (3) Projects to undertake the activities set forth in section 
123(a)(2) shall be conducted in accordance with agreements between the 
State education agency(ies) and administrative entities in service 
delivery areas in the State. The agreements may include other entities 
such as State agencies, local education agencies and alternative 
service providers (section 123(b)(1)(B)).

    (4)(i) When there is a failure by the State education agency and 
the Governor to develop the joint plan described in paragraph (b)(2) of 
this section, the Governor shall not allocate funds under section 
123(a)(1) to such education agency nor shall such funds be available 
for expenditure by the Governor (section 123(c)).

    (ii) When no State education agency accepts the allocation of funds 
under section 123(a)(1), or when there is a failure to reach the 
agreement(s) specified in paragraph (b)(3) of this section, the funds 
may only be used by the Governor pursuant to section 123(e) and in 
accordance with the GCSSP (section 123(e)).

    (c) Allowable activities. (1) Funds made available for education 
coordination and grants under section 123 of the Act shall be used to 
pay the Federal share of education coordination and grants projects 
(section 123(a)(2)).

    (2) Projects, as defined at section 123(a)(2)(A), (B), and (C) of 
the Act shall be conducted for eligible individuals and should include 
those which:

    (i) Provide school-to-work services of demonstrated effectiveness, 
including youth apprenticeship programs;

    (ii) Provide literacy and lifelong learning opportunities and 
services of demonstrated effectiveness, including basic education and 
occupational skills training; and

    (iii) Provide statewide coordinated approaches to education and 
training services, including model programs, designed to train, place, 
and retain women in nontraditional employment (section 123(a)).

    (3) Projects for coordination of education and training may also be 
conducted which may include support activities pertaining to the HRIC 
which meets the requirements of title VII.

    (d) Expenditure requirements. (1)(i) At least 80 percent of the 
funds allocated under section 202(c)(1)(C) and section 262(c)(1)(C) of 
the Act shall be expended to pay for the Federal share of projects 
described in paragraph (c)(2) of this section (section 123(d)(2)(B)).

    (ii) The Governor shall assure that not less than 75 percent of the 
funds expended for such projects are expended for projects for eligible 
economically disadvantaged participants who experience barriers to 
employment. For purposes of meeting this requirement, participants 
meeting the conditions of section 263(a)(2)(B) and (C) and (g) of the 
Act may be considered economically disadvantaged (section 
123(d)(2)(C)).

    (iii) Priority for funds not expended for the economically 
disadvantaged shall be given to title III participants and persons with 
barriers to employment.

    (iv) The Governor may assure compliance with the requirement to 
serve participants with barriers to employment by targeting projects to 
particular barrier groups (e.g., school dropouts).

    (2) Not more than 20 percent of funds allocated under section 
202(c)(1)(C) of the Act may be expended to:

    (i) Facilitate coordination of education and training services for 
participants in the projects described in section 123(a)(2)(A), (B) and 
(C), or

    (ii)(A) Support activities pertaining to a HRIC that meets the 
requirements of Sec. 628.215 of this part, or

    (B) Support activities pertaining to a State council which carries 
out functions similar to those of a HRIC if such council was 
established prior to July 1, 1992.

    (e) Contribution. (1) Except as provided in paragraph (e)(3) of 
this section, the State shall provide for the contribution of funds, 
other than the funds made available under this Act, of a total amount 
equal to the amounts allotted under Section 123;

    (2) The Governor shall define and assure the provision of adequate 
resources by the State to meet the requirements of paragraph (e)(1) of 
this section. Such amount may include the direct cost of employment and 
training services provided by other Federal programs or agencies if 
such use for matching is in accordance with the applicable Federal law 
governing the use of such funds.

    (3) When there is a failure to reach agreement between the State 
education agency and the administrative entity in the service delivery 
area, as set forth in paragraph (b)(3) of this section, the requirement 
for the contribution of funds shall not apply.

    (f) Eligible youth, age 14 through 15, may be served in the program 
under this section to the extent set forth in the agreements under 
paragraph (b)(3) of this section.


Sec. 628.320  Services for older individuals.


    (a) Consultation. (1) The Governor shall consult with the 
appropriate PIC's and chief elected official(s) prior to entering into 
agreements to provide services under section 204(d) and to assure that 
services provided to participants under section 204(d) are consistent 
with the programs and activities provided in the SDA to eligible older 
participants.

    (2) The GCSSP shall specify the process for accomplishing the 
consultation required by paragraph (a)(2) of this section.

    (b) Funds available under section 204(d) shall be used by the 
Governor to provide services on an equitable basis throughout the 
State, taking into account the relative share of the population of 
eligible older individuals residing in each SDA and the participation 
of such older individuals in the labor force.

    (c) Delivery of services. (1) Services to participants eligible 
under section 204(d) shall be delivered through agreements with SDA's, 
private industry councils, public agencies, private nonprofit 
organizations (including veterans organizations) and private-for-profit 
organizations.

    (2) Priority for delivery of services under this section shall be 
given to agencies and organizations which have a demonstrated 
effectiveness in providing training and employment services to such 
older individuals.

    (d) Eligibility. (1) Individuals provided services under section 
204(d) of the Act shall be economically disadvantaged, based on 
criteria applicable in the SDA in which they reside, and shall be age 
55 or older. However, each program year not more than 10 percent of 
participants enrolled under section 204(d) may be individuals who are 
not economically disadvantaged but have serious barriers to employment 
as identified by the Governor and have been determined within the last 
12 months to meet the income eligibility requirements for title V of 
the Older Americans Act of 1965 (section 204(d)(5)(B)(i)).

    (2) The following criteria shall apply to joint programs for older 
workers.

    (i) In order to carry out a joint program with operators of 
programs under title V of the Older Americans Act, there shall be a 
written financial or non-financial agreement, or written joint program 
description when the entity which operates the JTPA and title V program 
are the same.

    (ii) Joint programs under this paragraph (d)(2) may include 
referrals between programs, co-enrollment and provision of services.

    (iii) Under agreements pursuant to this paragraph (d)(2), 
individuals eligible under title V of the Older Americans Act shall be 
deemed to satisfy the requirements of section 203(a)(2) of the Act 
(Older Americans Act, Pub. L. 103-171, section 510).

    (e) Applicable requirements. Except as provided in the Act, the 
provisions of title II-A shall apply to programs conducted under 
section 204(d) (section 204(d)(6)).

    (f) The Governor shall make efforts to coordinate the delivery of 
services under section 204(d) with the delivery of services under title 
V of the Older Americans Act of 1965. Such coordination may include 
coenrollment, coordination of a continuum of services between this 
section and title V of the Older Americans Act and other appropriate 
linkages.

    (g) The Governor shall give consideration to assisting programs 
involving training for jobs in growth industries and jobs reflecting 
the use of new technological skills (section 204(d)(3)).


Sec. 628.325  Incentive grants, capacity building, and technical 
assistance.


    (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.

Subpart D--Local Service Delivery System


Sec. 628.400  Scope and purpose.


    This subpart sets forth requirements for the selection of service 
delivery areas, the establishment and responsibilities of the private 
industry council, and the selection of the SDA grant recipient and 
administrative entity. This subpart also contains the requirements for 
the local job training plan as well as the procedures for its review 
and approval by the State.


Sec. 628.405  Service delivery areas.


    (a)(1) The Governor, after receiving recommendations from the 
SJTCC, shall designate SDA's within the State in accordance with the 
provisions of section 101 of the Act.

    (2) SDA's may not be designated by the Governor more frequently 
than once every two years, and such designations shall be made to 
coincide with the two-year plan cycle for the GCSSP and local job 
training plans (i.e., the designation cannot be made for an off-year in 
this cycle).

    (3) Each request for designation as an SDA shall be submitted in a 
form and by a date established by the Governor. The procedures 
established by the Governor shall provide for the treatment of existing 
SDA's for the purposes of submitting SDA designation requests.

    (b)(1) The Governor shall approve SDA designation requests from 
entities with a population of 200,000 or more that satisfy the criteria 
specified in section 101(a)(4)(A) of the Act.

    (2) When there are competing applications under paragraph (b)(1) of 
this section for the same geographic area, the Governor shall designate 
the entity with the population closest to 200,000, if the remaining 
reduced area also continues to satisfy the criteria specified in 
section 101(a)(4)(A) of the Act. The Governor shall offer to designate 
the remaining reduced area as an SDA as well.

    (3) When there are competing applications under paragraph (b)(1) of 
this section for the same geographic area and the designation of the 
entity with the population closest to 200,000 would have the effect of 
reducing the population of the competing entity to below a population 
of 200,000, the Governor has the discretion to determine which request 
to honor.

    (d) The Governor may, in accordance with section 101(a)(4)(B) of 
the Act, approve a request to be a SDA from any unit, or contiguous 
units, of general local government, without regard to population, which 
serves a substantial portion of a labor market area. In making such 
designations, the Governor shall evaluate the degree to which a 
proposed service delivery area meets criteria established by the 
Governor which, at a minimum, shall include:

    (1) The capability to effectively deliver job training services;

    (2) The capacity to administer the job training program in 
accordance with the Act, applicable rules and regulations and State 
standards; and

    (3) The portion of a labor market to be served.

    (e) For the purposes of SDA designations under section 101(a)(4)(A) 
and (B) of the Act, the term "substantial part" and "substantial 
portion" of a labor market area shall be defined by the Governor, but 
shall not be less than 10% of the population of a labor market area.

    (f) All areas within the State shall be covered by designated 
SDA's. After honoring all requests for designation from eligible 
entities under section 101(a)(4)(A) of the Act, and making any 
qualified discretionary designations under section 101(a)(4)(B) of the 
Act, the Governor shall include uncovered areas in the State within 
other designated SDA's willing to accept them or within a State 
administered SDA.

    (g) Appeals. (1) Only an entity which meets the requirements of 
section 101(a)(4)(A) of the Act for designation as a service delivery 
area, but which has had its request to be an SDA denied, may appeal the 
Governor's denial of service delivery area designation to the Secretary 
of Labor.

    (2) Appeals made pursuant to paragraph (g)(1) of this section shall 
be submitted by certified mail, return receipt requested, to the 
Secretary, U.S. Department of Labor, Washington, DC 20210, Attention: 
ASET. A copy of the appeal shall simultaneously be provided to the 
Governor.

    (3) The Secretary shall not accept an appeal dated later than 30 
days after receipt of written notification of the denial from the 
Governor.

    (4) The appealing party shall explain why it believes the denial is 
contrary to the provisions of section 101 of the Act.

    (5) The Secretary shall accept the appeal and make a decision only 
with regard to whether or not the denial is inconsistent with section 
101 of the Act. The Secretary may consider any comments submitted by 
the Governor. The Secretary shall make a final decision within 30 days 
after receipt of the appeal (section 101(a)(4)(C)).

    (6) The Secretary shall notify the Governor and the appellant in 
writing of the Secretary's decision.


Sec. 628.410  Private Industry Council.


    (a) Certification of the PIC. (1) The chief elected official(s) of 
the SDA shall establish and the Governor shall certify the private 
industry council (PIC) pursuant to section 102 of the Act.

    (2) The Governor shall review the certification of the PIC 
biennially, one year prior to the effective date of the 2-year SDA job 
training plan to the Governor. The Governor's review shall include:

    (i) The PIC composition, which shall be consistent with section 
102(a), (b), (c), and (d) of the Act and shall include the names of 
individuals nominated and their qualifications;

    (ii) The nomination process;

    (iii) The written agreement(s) among the appropriate chief elected 
official(s) and the PIC, including procedures for the development of 
the SDA job training plan and the selection of the grant recipient and 
administrative entity.

    (3) The chief elected official shall select labor representatives 
for the PIC from individuals recommended by recognized State and local 
labor federations. For purposes of this section, a labor federation is 
an alliance of two or more organized labor unions for the purpose of 
mutual support and action. An example of a recognized labor federation 
is the AFL-CIO.

    (b) Responsibilities of the PIC. Pursuant to section 103 of the 
Act, the PIC shall:

    (1) Provide policy and program guidance for all activities under 
the job training plan for the SDA;

    (2) In accordance with agreements negotiated with the appropriate 
chief elected official(s), determine the procedures for development of 
the job training plan and select the grant recipient and administrative 
entity for the SDA;

    (3) Independent oversight. As specified in subpart D of part 627 of 
this chapter, the PIC shall exercise independent oversight over 
programs and activities under the job training plan, which oversight 
shall not be circumscribed by agreements with the appropriate chief 
elected official(s) of the SDA;

    (4) Be a party to the designation of substate grantees under title 
III, as set forth in Sec. 631.35 of this chapter;

    (5) Establish guidelines for the level of skills to be provided in 
occupational skills training programs funded by the administrative 
entity;

    (6) Consult with the Governor on agreements to provide services for 
older individuals under section 204(d) of the Act;

    (7) Establish youth and adult competency levels consistent with 
performance standards established by the Secretary, based on such 
factors as entry level skills and other hiring requirements, in 
consultation with educational agencies and, where appropriate, with 
representatives of business, organized labor and community-based 
organizations pursuant to section 106(b)(5) and 107(d); and

    (8) Identify occupations for which there is a demand in the area 
served.

    (c) Substate plan. The PIC shall be provided the opportunity to 
review and comment on a substate grantee plan under title III of the 
Act prior to the submission of such plan to the Governor (section 
313(a)).

    (e) The State Employment Service agency shall develop jointly with 
each appropriate PIC and chief elected official(s) for the SDA those 
components of the plans required under the Wagner-Peyser Act which are 
applicable to the SDA. (See part 652 of this chapter).

    (f) Single SDA States. (1) In any case in which the service 
delivery area is a State, the SJTCC or a portion of the SJTCC may be 
reconstituted as a PIC if the PIC meets the requirements of section 
102(a) of the Act.

    (2) When the service delivery area is a State and the functions of 
the SJTCC are embodied in the HRIC, the HRIC or a portion of the HRIC 
may be reconstituted as a PIC if the requirements for private sector 
business representation at section 102(a)(1) of the Act are met 
(section 102(h)).


Sec. 628.415  Selection of SDA grant recipient and administrative 
entity.


    (a) Selection of SDA grant recipient. (1) The SDA grant recipient 
and the entity to administer the SDA's job training plan for title II, 
developed pursuant to section 104 of the Act, shall be selected by 
agreement of the PIC and chief elected official(s) of the SDA. These 
may be the same or different entities.

    (2) The specific functions and responsibilities of the entities 
described in paragraph (a)(1) of this section shall be spelled out in 
the agreement between the PIC and the chief elected official(s), and 
shall specifically address the provisions of section 141(i) of the Act 
(section 103(b)(1)).

    (b) Subrecipient requirements. (1) The Governor may establish 
requirements pertaining to subrecipient, including SDA grant recipient, 
responsibility for JTPA funds.

    (2) The requirements of paragraph (b)(1) of this section shall not 
preclude the selection of any entity identified in section 103(b) of 
the Act as SDA grant recipient.


Sec. 628.420  Job training plan.


    (a) The Governor shall issue instructions and schedules to assure 
that job training plans and plan modifications for SDA's within the 
State conform to all requirements of the Act.

    (b) The Governor's instructions for development of the SDA's job 
training plan shall require that the plan contain the following 
information:

    (1) A complete and detailed discussion of the elements found in 
section 104(b) of the Act, including goals for the training and 
training related placement of women in nontraditional employment and 
apprenticeships;

    (2) A discussion of the SDA's compliance with the Secretary's 
program goals, as outlined in the planning guidance provided to the 
Governor; and

    (3) An oversight plan for the SDA which includes: (i) A description 
of the oversight activities of the PIC and the chief elected 
official(s), and (ii) the SDA administrative entity's monitoring plan 
which includes the Governor's monitoring requirements for service 
providers.

    (c) The Governor may also require that the SDA job training plan 
contain a capacity building and technical assistance strategy that 
includes plans for designating capacity building as a staff function, 
assessing local capacity building needs, and developing and 
participating in computerized communication mechanisms.

    (d) The SDA job training plan shall be jointly approved and jointly 
submitted to the Governor by the PIC and the chief elected official(s) 
(section 103(d)).

    (e) Modifications. (1) Any major modification to the SDA job 
training plan shall be jointly approved and jointly submitted by the 
PIC and chief elected official(s) of the SDA to the Governor for 
approval.

    (2) For the purposes of this section, the circumstances which 
constitute a "major" modification shall be specified by the Governor.


Sec. 628.425  Review and approval.


    (a) Standards and procedures. The Governor shall establish 
standards and procedures for the review and approval or disapproval of 
the SDA job training plan and plan modifications that shall be provided 
to the SDA's at the same time as the instructions and schedules for 
preparation of the plans are provided.

    (b) Plan approval. Except when the Governor makes a finding under 
the provisions of section 105(b)(1) of the Act, the Governor shall 
approve the SDA job training plan or plan modification. The notice of 
approval shall be provided in writing to the chief elected official(s) 
and to the private industry council.


Sec. 628.426  Disapproval or revocation of the plan.


    (a) If the Governor disapproves the SDA job training plan or plan 
modification for any reason, the Governor shall notify the PIC and 
chief elected official(s) for the SDA in writing as provided in section 
105(b)(2) of the Act.

    (b) If the Governor disapproves the SDA job training plan or plan 
modification, the Governor shall provide the PIC and the chief elected 
official(s) for the SDA 30 days to correct the deficiencies and 
resubmit the plan or plan modification. Within 15 days after the plan 
or plan modification is resubmitted, the Governor shall make a final 
decision and shall notify the PIC and the appropriate chief elected 
official(s) of the SDA in writing of the final disapproval or approval.

    (c) Governor mediation. If the PIC and the appropriate chief 
elected official(s) of an SDA are unable to reach an agreement under 
the provisions of section 103 (b)(1) or (d) of the Act, any such party 
may request the Governor to mediate.

    (d) Failure to reach agreement. If the PIC and the chief elected 
official(s) fail to reach the required agreements in section 103 (b)(1) 
or (d) of the Act, funds may not be made available to an SDA under 
section 104 of the Act and the Governor shall merge the affected area 
into one or more other existing service delivery areas (section 
105(c)(1)).

    (e) Appeals. (1) In accordance with section 105(b)(2) of the Act, 
any final disapproval by the Governor of the SDA job training plan or 
modification may be appealed by the PIC and chief elected official(s) 
of the SDA to the Secretary.

    (2) The Secretary shall not accept an appeal dated later than 30 
days after receipt by the PIC and chief elected official(s) of the 
final disapproval of the SDA job training plan or modification from the 
Governor.

    (3) The Secretary shall accept an appeal under paragraph (e)(1) of 
this section and shall determine only whether the disapproval is 
clearly erroneous under section 105(b)(1) of the Act. The Secretary may 
consider any comments submitted by the Governor. In accordance with 
section 105(b)(2) of the Act, the Secretary shall make a final decision 
within 45 days after the appeal is received by the Secretary.

    (4) The Secretary shall notify the Governor and the appellant in 
writing of the Secretary's decision.

    (f) Appeals of plan revocations. Pursuant to section 164(b)(1) of 
the Act, a notice of intent to revoke approval of all or part of a plan 
may be appealed to the Secretary. Such appeals shall be treated as a 
disapproval under paragraphs (c) and (e) of this section, except that 
the revocation shall not become effective until the later of:

    (1) The time for appeal under paragraph (e) of this section has 
expired; or

    (2) The date on which the Secretary issues a decision affirming the 
revocation.

    (g) In the event that a plan is disapproved and the Governor's 
decision is upheld upon appeal, the Governor shall merge the affected 
area into other designated SDA's willing to accept it or include it in 
another SDA within the State.


Sec. 628.430  State SDA Submission.


    (a) Pursuant to section 105(d) of the Act, when the SDA is the 
State, the Governor shall submit to the Secretary, not less that 60 
days before the beginning of the first of the two program years covered 
by the job training plan and in accordance with instructions issued by 
the Secretary, an SDA job training plan covering two program years. 
When the SDA is the State, modifications to the plan shall be submitted 
to the Secretary for approval.

    (b) When a State submits an SDA job training plan or plan 
modification pursuant to paragraph (a) of this section, the Secretary 
shall review the plan or plan modification for overall compliance with 
the provisions of the Act. The State's plan shall be considered 
approved unless, within 45 days of receipt of the submission described 
in paragraph (a) of this section, the Secretary notifies the Governor 
in writing of inconsistencies between the submission and requirements 
of specific provisions of the Act. If the plan or plan modification is 
disapproved, the Governor may appeal the decision by requesting a 
hearing before an administrative law judge pursuant to subpart H of 
part 627 of this chapter.

Subpart E--Program Design Requirements for Programs Under Title II 
of the Job Training Partnership Act


Sec. 628.500  Scope and purpose.


    This subpart contains the regulations pertaining to the program 
design requirements common to all programs conducted under titles I 
(i.e., sections 121 and 123) and II of the Act. Regulations 
specifically pertaining to the Adult Program can be found in subpart F 
of this part. Regulations pertaining to the Summer Youth Employment and 
Training Program can be found in subpart G of this part. Regulations 
pertaining to the Youth Training Program can be found in subpart H of 
this part.


Sec. 628.505  Eligibility.


    (a) Eligibility criteria. (1) Individuals who apply to participate 
in a program under title II shall be evaluated for eligibility based on 
age and economic disadvantage. Specific eligibility criteria for 
programs under title II, parts A, B, and C are described in this part.

    (2) Individuals served under title II shall be residents of the 
SDA, as determined by local government policy, except for the limited 
exceptions described in the job training plan, including joint programs 
operated by SDA's (section 141(e)).

    (b) Eligibility documentation. (1) In order to promote the uniform 
and standard application of eligibility criteria for participation in 
the JTPA program, the Department has issued an Eligibility 
Documentation TAG that provides guidance on acceptable documentation.

    (2) SDA utilization of eligibility guidance. When it is determined 
that the SDA or service provider has followed the guidance contained in 
the Eligibility Documentation TAG, the Grant Officer will not disallow 
questioned costs related to the required documentation concerning an 
individual's eligibility.


Sec. 628.510  Intake, referrals and targeting.


    (a) Collection of personal data. In addition to determining an 
applicant's eligibility, the intake process shall include a preliminary 
review of information relating to whether an applicant is included in 
one or more of the categories listed in section 203(b) of the Act.

    (b) Information on services. Upon application, an eligible 
individual shall be provided information by the SDA or its service 
providers on the full array of services available through the SDA and 
its service providers, including information for women about the 
opportunities for nontraditional training and employment.

    (c) Assessment during intake. Some limited assessment activities 
may be conducted during the intake process in order to determine an 
eligible applicant's suitability for title II program services. This 
assessment should be a method, in difficult cases, to finalize 
determinations for enrollment. The amount of assessment provided during 
intake is not restricted, however, assessment during intake shall be 
charged in accordance with Sec. 627.440(d)(3).

    (d) Referral of eligible applicants. During the intake process, 
determinations may be made prior to enrollment to refer an eligible 
applicant to another human service, training or education program 
deemed more suitable for the individual, including the Job Corps 
program. In these cases, information on the full array of services 
available in the SDA may be provided in written form with 
recommendations and written referrals to other appropriate programs. 
Copies of or notations of referrals will be maintained as documentation 
and may be recorded in an incomplete ISS. Further tracking or follow-up 
of referrals out of title II is not required.

    (e) Referrals from service providers to service delivery areas for 
additional assessment. (1) Each service provider shall ensure that an 
eligible applicant who cannot be served by its particular program shall 
be referred to the SDA for assessment, as necessary, and suitable 
referral to other appropriate programs. Each service provider shall 
also ensure that a participant who cannot be served by its particular 
program shall be referred to the SDA for further assessment, as 
necessary, and suitable referral to other appropriate programs, 
consistent with Sec. 628.515.

    (2) Each SDA shall take the appropriate steps (e.g., contract 
provisions, local administrative issuances, and/or PIC policies) to 
ensure that its service providers adhere to the provisions of this 
section and that they maintain documentation of referrals.

    (3) Each SDA shall develop an appropriate mechanism to ensure 
suitability screening for eligible applicants or to apply the 
provisions of Sec. 628.530 for participants referred by service 
providers and describe such mechanism in its SDA job training plan.

    (f)(1) "Most in need." SDA's that satisfy the requirements of 
sections 203(b) and 263 (b) and (d) pertaining to hard to serve 
individuals shall be deemed to meet the "most in need" criteria at 
section 141(a) of the Act.

    (2) The requirements referred to in paragraph (h)(1) of this 
section shall be calculated on the basis of new participants for whom 
services or training have been provided subsequent to the objective 
assessment.

    (g) The SDA's method of meeting the requirements of sections 203(b) 
and 263(b) pertaining to hard to serve individuals shall be implemented 
consistent with the equal opportunity provisions of 29 CFR part 34.


Sec. 628.515  Objective assessment.


    (a) General. The requirements of this section shall apply to 
programs conducted under title I (i.e., sections 121 and 123) and title 
II, parts A, B, and C.

    (b) Definition. (1) For purposes of this part, an objective 
assessment means an examination of the capabilities, needs, and 
vocational potential of a participant and is to be used to develop an 
individual service strategy and employment goal. Such assessment is 
customer-centered and a diagnostic evaluation of a participant's 
employment barriers taking into account the participant's family 
situation, work history, education, basic and occupational skills, 
interests, aptitudes (including interests and aptitudes for 
nontraditional occupations), attitude towards work, motivation, 
behavior patterns affecting employment potential, financial resources 
and needs, supportive service needs, and personal employment 
information as it relates to the local labor market.

    (2) For the program under title II-B, the objective assessment 
shall include an examination of the basic skills and supportive service 
needs of each participant and may include the other areas listed in 
paragraph (b)(1) of this section (sections 204(a)(1)(A), 253(c)(1) and 
264(b)(1)(A)).

    (c) Methods of objective assessment. (1) The SDA shall choose the 
most appropriate means to measure skills, abilities, attitudes, and 
interests of the participants. The methods used in conducting the 
objective assessment may include, but are not limited to, structured 
interviews, paper and pencil tests, performance tests (e.g., skills, 
and/or work samples, including those that measure interest and 
capability to train in nontraditional employment), behavioral 
observations, interest and/or attitude inventories, career guidance 
instruments, aptitude tests, and basic skills tests.

    (2) Instruments used for objective assessment may be developed at 
the local level; however, any formalized instruments nationally 
available should be used only for the specific populations for which 
they are normed.

    (d) Updating of assessments. Objective assessment should be treated 
as an ongoing process. As additional relevant information relating to a 
participant becomes available, it should be reviewed and considered for 
inclusion in the individual service strategy.

    (e) Other sources of objective assessment. Other non-JTPA 
assessments (e.g., through the Job Opportunities and Basic Skills 
(JOBS) program under title IV of the Social Security Act, or through 
schools) which have been completed within one year of application for 
services, and which meet the requirements of this section, may be used 
to comply with the requirement to assess each participant.


Sec. 628.520  Individual service strategy.


    (a) General. The requirements of this section shall apply to 
programs conducted under title I (i.e., sections 121 and 123) and title 
II, parts A, B and C.

    (b) Definition.--(1) Individual service strategy (ISS) means an 
individual plan for a participant, which shall include an employment 
goal (including, for women, consideration of nontraditional 
employment), appropriate achievement objectives, and the appropriate 
combination of services for the participant based on the objective 
assessment conducted pursuant to Sec. 628.515 of this part, Objective 
assessment. In developing the ISS, the participant shall be counseled 
regarding required loan repayments if the participant chooses to incur 
personal indebtedness to participate in an education program. The 
participant shall also be apprised of the requirements for self-
sufficiency and the occupational demands within the labor market.

    (2) Decisions concerning appropriate services shall be customer-
centered, and ensure that the participant is not excluded from training 
or career options consistent with the provisions of 29 CFR part 34 
concerning nondiscrimination and equal opportunity.

    (3) For the title II-B program, the ISS may include the components 
specified in paragraph (b)(1) of this section (sections 204(a)(1)(B), 
253(c)(2) and 264(b)(1)(B)). For purposes of titles II-B and II-C, the 
employment goal may be interpreted broadly and based on long-term 
career guidance.

    (c) Joint Development of ISS. The ISS shall be developed in 
partnership with the participant and reflect the needs indicated by the 
objective assessment and the expressed interests and desires of the 
participant. It is not a formal contract and signatures are not a 
requirement.

    (d) Review of ISS. The ISS shall be reviewed periodically to 
evaluate the progress of each participant in meeting the objectives of 
the service strategy, including an evaluation of the participant's 
progress in acquiring basic skills, and occupational skills, as 
appropriate, and the adequacy of the supportive services provided.

    (e) Provision of services. If JTPA resources are not sufficient to 
provide the full range of training or supportive services which might 
be identified in the ISS, the SDA shall make every reasonable effort to 
arrange for, through other community resources, basic and occupational 
skills training and supportive services identified as needed in the ISS 
for participants under titles II-A and II-C and, in addition, 
preemployment and work maturity skills training and work experience 
combined with skills training for participants under title II-C 
(sections 204(a)(1)(D) and 264(b)(1)(D).

    (f) SDA review of objective assessment and ISS. (1) The objective 
assessment and development of the ISS may be conducted by service 
providers.

    (2) The SDA administrative entity shall ensure that development of 
the ISS and the services provided, respond to the individual needs of 
the participant and that the combination of services to the participant 
is indicated by the results of the objective assessment.

    (g) ISS record of decisions. The ISS shall be used as the basic 
instrument for the SDA to record the results of decisions made about 
the combination and sequence of services for the participant based on 
the objective assessment. Justification for decisions may be referenced 
but need not be recorded in the ISS. These decisions shall include, but 
are not limited to, the employment goal and/or career cluster; 
referrals to other programs for specified activities; the provision and 
amount of supportive services; and the delivery agents and schedules 
for training and supportive services activities. The decisions for time 
and duration of OJT (Sec. 627.240 of this chapter) shall be briefly 
recorded in the ISS and may not reference other documents.

    (h) The ISS is a customer-centered case management tool and shall 
not be used as a compliance document.


Sec. 628.525  Limitations.


    Neither eligibility for nor participation in a JTPA program creates 
an entitlement to services, and nothing in the Act or this part shall 
be construed to establish a private right of action for a participant 
to obtain services described in the objective assessment or ISS.


Sec. 628.530  Referrals of participants to non-title II programs.


    (a) When it is determined, through the objective assessment and the 
ISS, that a participant would be better served by a program other than 
one under title II (e.g., Job Corps, Vocational Rehabilitation, State 
or local education, substance abuse treatment center, and/or dislocated 
worker programs), the participant shall be referred to the appropriate 
program. Such referral shall be recorded in the ISS.

    (b) In cases where there will be a continuing relationship with a 
participant, a referral to another program(s) for specific services 
will be part of the participant's title II program strategy and will be 
recorded in the ISS.

    (c) When there will not be a continuing relationship with a 
participant as the result of a referral to a program other than title 
II, and an assessment but no training component has been provided, the 
referral should be recorded in a partial ISS and the individual shall 
not be counted for purposes of calculating performance against the 
SDA's performance standards. Further tracking or follow-up of referrals 
out of title II is not required.


Sec. 628.535  Limitations on job search assistance.


    (a) General. Job search assistance is designed to give a 
participant skills in acquiring full time employment. (See Sec. 626.5 
of this chapter, Definitions.)

    (b) Conditions. Job search activities may be conducted only:

    (1) For participants when specified as appropriate in the ISS; and

    (2) When delivered in conjunction with other training or 
educational services designed to increase the participant's ability to 
acquire employment. Additional services which may be provided in 
conjunction with job search include the direct training services listed 
in JTPA section 204(b)(1) of the Act, excluding standalone skill 
assessment, counseling, work experience and case management and the 
direct training services listed in 264(b) of the Act excluding 
tutoring, standalone skill assessment, counseling, work experience and 
case management. (See Sec. 627.245 of this chapter, "Work 
Experience," especially Sec. 627.245(d) regarding combination of other 
services.)

    (c) Exceptions. (1) Job search assistance activities, including job 
search skills, training, and job clubs may be provided without the 
accompanying services specified in paragraph (b) of this section only 
when:

    (i) The objective assessment and the ISS indicate that the 
additional services are not appropriate; and

    (ii) The activities are not available or accessible through other 
public agencies, including the Employment Service.

    (2) The exceptions in paragraph (c)(1) of this section apply to 
Title II-A and II-B and are not applicable to Title II-C programs (see 
Sec. 628.804 (d) and (e)).

    (d) Determination of job search availability. For purposes of this 
section, a determination of the availability of the job search 
assistance activity will be made by the SDA, in consultation with the 
employment service and documented in the local job training plan.

    (e) Older individuals. For purposes of this section, when an 
individual aged 55 or older indicates in the assessment a preference 
for immediate job placement, job search assistance may be provided on a 
stand-alone basis. The individual's preference shall be recorded in the 
ISS.


Sec. 628.540  Volunteer program.


    Pursuant to sections 204(c)(6) and 264(d)(7) of the Act, the SDA 
shall make opportunities available for individuals who have 
successfully participated in programs under this part to volunteer 
assistance, in the form of mentoring, tutoring, and other activities.


Sec. 628.545  Linkages and coordination.


    (a) General requirements. (1) To the extent practicable, and as 
permitted by law and regulations, the Governor shall, at the State 
level, facilitate coordination among the programs set forth at section 
205(a) and 265(b) of the Act, including, but not limited to, the 
establishment of State-level coordination agreements. The Governor may 
focus coordination through the SJTCC or the HRIC.

    (2) The SDA, in conducting programs under this part, shall 
establish appropriate linkages and coordination procedures with other 
Federal programs and appropriate State and local educational, social 
service, and public housing agencies, including with CBO's, business 
and labor organizations, volunteer groups and others, such as women and 
older worker organizations, and with appropriate education and training 
agencies, such as local JOBS programs, Employment Service offices which 
provide services for JTPA participants, and the local agencies on 
aging, to avoid duplication and to enhance the delivery of services, 
which shall be described in the SDA job training plan. Where a local 
agency declines to complete such a linkage with an SDA, the SDA shall 
reflect this information in its job training plan (section 104(b)).

    (b) SDA's are encouraged to facilitate effective "one stop shop 
career centers" and "single point of contact" delivery systems which 
may include:

    (1) The development of individual service strategy plans and of a 
common program application; and

    (2) A unified job development effort and comprehensive programmatic 
design (sections 104(b) (3) and (4), 205 (a) and (b) and 265).

    (c) Requirements for youth. For the youth programs under this part, 
formal agreements shall be established with appropriate local 
educational agencies which participate in JTPA programs which, at a 
minimum, shall specify:

    (1) The procedures for referring and serving in-school youth;

    (2) The methods of assessment of in-school youth; and

    (3) Procedures for notifying the SDA when a youth drops out of the 
school system.

    (d) Schoolwide projects. (1) In conducting a schoolwide project for 
low income individuals under sections 263(g) and 265(d) of the Act, the 
SDA shall establish a cooperative agreement with the appropriate local 
educational agency.

    (2) In addition to the requirements listed in paragraphs (a) and 
(b) of this section, the cooperative agreement shall include:

    (i) A description of the ways in which the JTPA schoolwide project 
will supplement the educational program of the school;

    (ii) Identification of measurable goals to be achieved by the 
schoolwide project and a provision for assessing the extent to which 
such goals are met;

    (iii) A description of the ways in which the program will use 
available JTPA and other education program resources;

    (iv) A description of the number of individuals to be served by the 
schoolwide project; and

    (v) Assurances that JTPA resources shall be used in coordination 
with existing sources of funds to supplement and not supplant them 
(section 107(b)).

    (3) In areas where there is more than one local educational agency, 
cooperative agreements for schoolwide projects are required only with 
those local education agencies that will participate in programs under 
schoolwide projects (section 263(g)).


Sec. 628.550  Transfer of funds.


    If described in the job training plan and approved by the Governor:

    (a) An amount up to 10 percent of the funds allocated to the SDA 
under section 202(b) of the Act for title II-A may be transferred to 
the program under title II-C of the Act;

    (b) An amount up to 20 percent of the funds allocated to the SDA 
under section 252(b) of the Act for title II-B may be transferred to 
the program under title II-C of the Act; and

    (c) An amount up to 10 percent of the funds allocated to the SDA 
under section 262(b) of the Act for title II-C may be transferred to 
the program under title II-A of the Act.
Subpart F--The Adult Program


Sec. 628.600  Scope and purpose.


    This subpart contains the regulations for the Adult Program under 
part A of Title II of the Act. The regulations in part 627 of this 
chapter and subpart E of this part apply to the Adult Program to the 
extent that they do not conflict with the provisions of this subpart.


Sec. 628.605  Eligibility.


    (a) Age and economic disadvantage. Except as provided in paragraph 
(b) of this section, an individual shall be eligible to participate 
under this part only if he or she is economically disadvantaged and 22 
years of age or older. There is no maximum age for eligibility.

    (b) Non-economically disadvantaged individuals. Up to 10 percent of 
the individuals served under this subpart in each SDA may be 
individuals who are not economically disadvantaged, if such individuals 
face serious barriers to employment in accordance with section 203(c) 
of the Act.

    (c) Requirement to assist hard-to-serve individuals. (1) Not less 
than 65 percent of adults who participate in the program under this 
subpart, including those who are not economically disadvantaged, shall 
have one or more of the additional barriers to employment as described 
in section 203(b) of the Act.

    (2) The 65 percent barrier requirement in paragraph (c)(1) of this 
section shall be calculated on the basis of participants for whom 
services or training have been provided subsequent to an objective 
assessment on July 1, 1993 or later.

    (d) Addition of barrier. An SDA may identify and add one additional 
serious barrier to employment to the categories listed at section 
203(b) of the Act, in accordance with the specific procedures and 
requirements in section 203(d) of the Act.

    (e) Criteria for older workers under joint programs. (1) The SDA 
may establish written financial or non-financial agreements with 
sponsors of programs under title V of the Older Americans Act to carry 
out joint programs.

    (2) Joint programs under this paragraph (e) may include referrals 
between programs, co-enrollment and provision of services.

    (3) Under agreements entered into pursuant to this paragraph (e), 
individuals eligible under title V of the Older Americans Act shall be 
deemed to satisfy the requirements of section 203(a)(2) of the JTPA 
(Older Americans Act, Pub. L. 102-375, section 510).


Sec. 628.610  Authorized services.


    (a) The services that may be provided under this subpart are those 
described at section 204(b) of the Act.

    (b) Counseling and supportive services. Counseling and supportive 
services provided under this subpart may be provided to a participant 
for a period of up to 1 year after the date on which the participant 
completes the program.

Subpart G--The Summer Youth Employment and Training Program


Sec. 628.700  Scope and purpose.


    This subpart contains the regulations for the Summer Youth 
Employment and Training Program (SYETP) under part B of title II of the 
Act. The regulations in part 627 of this chapter and subpart E of this 
part apply to the SYETP to the extent that they do not conflict with 
the provisions of this subpart.


Sec. 628.701  Program Goals and Objectives.


    (a) Each SDA shall establish written goals and objectives that 
shall be used in evaluating the effectiveness of its SYETP activities. 
Such goals and objectives may include enhancement of basic educational 
skills through improvement in school retention or academic performance 
(including mathematics and reading comprehension); encouragement of 
school completion or enrollment in supplementary or alternative school 
programs; improvement of employability skills, including provision of 
vocational exploration opportunities and exposure to the world of work; 
enhancement of youth citizenship skills; and demonstrated coordination 
with other appropriate community organizations.

    (b) Each SDA shall ensure that the activities and services offered 
under the SYETP are consistent with and will contribute to the 
achievement of the goals and objectives developed pursuant to paragraph 
(a) of this section.


Sec. 628.702  Eligibility.


    (a) Age and economic disadvantage. An individual is eligible to 
participate in programs funded under title II-B of the Act, if such 
individual is

    (1) Age 14 through 21; and

    (2)(i) Economically disadvantaged; or

    (ii) Has been determined to meet the eligibility requirements for 
free meals under the National School Lunch Act during the most recent 
school year. Most recent school year means the current school year 
unless the eligibility determination is made during an interim period 
between school terms, in which case the term means the preceding school 
year; or

    (iii) Is participating in a compensatory education program under 
Chapter I of title I of the Elementary and Secondary Education Act of 
1965; or

    (iv) Is participating in a schoolwide project as set forth at 
section 263(g) of the Act.

    (b) Eligibility determination verification. The SDA may accept the 
same documentation utilized by the local educational agency for 
approving free lunch meals or an assurance by school officials 
concerning the students' participation in the free school lunch program 
under the National School Lunch Act.


Sec. 628.705  SYETP Authorized services.


    (a) The services that may be provided under this subpart are those 
described at section 253 of the Act.

    (b) Basic and remedial education and preemployment and work 
maturity skills training. The SDA shall ensure the availability of 
basic or remedial education and preemployment and work maturity skills 
training for SYETP participants pursuant to the assessment process 
described in Sec. 628.515 of this part from funds available to the SDA 
or by other education and training programs, including, but not limited 
to, the Job Corps, the JOBS program, youth corps programs or 
alternative or secondary schools.

    (c) Work experience. (1) Work experience shall be conducted 
consistent with the provisions of Sec. 627.245 of this chapter.

    (2) Work experience provided under this subpart, to the extent 
feasible, shall include contextual learning opportunities which 
integrate the development of general competencies with the development 
of academic skills.

    (d) Concurrent enrollment. (1) Youth being served under the SYETP 
or the Youth Training Program authorized under title II-C of the Act 
(see subpart H of this part) are not required to be terminated from 
participation in one program to enroll in the other. The SDA may enroll 
such youth concurrently in programs under this subpart and subpart H of 
this part, pursuant to guidance to be issued by the Secretary, in order 
to promote continuity and coordination of services.

    (2) The requirement that not less than 65 percent of the total 
number of title II-C participants shall have one or more barriers to 
employment pursuant to section 263(c) and (d) of the Act shall apply to 
youth who are concurrently enrolled and will participate in the program 
under title II-C.

    (e) Followup services. (1) The SDA shall make followup services 
available for participants if the ISS indicates that such services are 
appropriate (section 253(d)).

    (2) Title II-B funds may be used for such followup services for one 
year after program participation, which may be concurrent with a period 
of any subsequent participation in the Title II-C program.

    (3) Followup services include the full array of supportive services 
described in section 4(24) of the Act, except for financial assistance, 
and may include such followup services as counseling, mentoring, or 
tutoring.

    (f) Classroom training. Classroom training provided under this 
subpart shall, to the extent feasible, include opportunities to apply 
knowledge and skills relating to academic subjects to the world of 
work.

    (g) Educational linkages. (1) In conducting the program assisted 
under this subpart, service delivery areas shall establish linkages 
with the appropriate educational agencies responsible for service to 
participants.

    (2) Such linkages shall include arrangements to ensure that there 
is a regular exchange of information relating to the progress, problems 
and needs of participants, including the results of assessments of the 
skill levels of participants.


Sec. 628.710  Period of program operation.


    (a) Except as provided under paragraph (b) of this section, the 
SYETP shall be conducted during the school vacation period occurring 
during the summer months.

    (b) An SDA operating within the jurisdiction of one or more local 
educational agencies that operate schools on a year-round full-time 
basis may offer SYETP activities to participants in such a jurisdiction 
during the school vacation period(s) treated as the period(s) 
equivalent to a school summer vacation.

Subpart H--Youth Training Program


Sec. 628.800  Scope and purpose.


    This subpart contains the regulations for the Year-round Youth 
Program under part C of title II of the Act. The regulations in part 
627 of this chapter and subpart E of this part apply to the Year-round 
Youth program to the extent that they do not conflict with the 
provisions of this subpart.


Sec. 628.803  Eligibility.


    (a) Out-of-school youth. An out of school youth is a youth who does 
not meet the definition of in-school youth as set forth in paragraph 
(b) of this section. An out-of-school youth shall be eligible to 
participate in programs under this subpart, if such individual is:

    (1) Age 16 through 21, and

    (2) Economically disadvantaged.

    (b) In-school youth. Definition. In-school youth means a youth who 
has not yet attained a high school diploma and is attending school full 
time. An in-school youth shall be eligible to participate in programs 
under this subpart, if such individual is:

    (1)(i) Age 16 through 21, or

    (ii) If provided in the job training plan, age 14 through 21 
inclusive; and

    (2)(i) Economically disadvantaged; or

    (ii) Participating in a compensatory education program under 
Chapter I of title I of the Elementary and Secondary Education Act of 
1965; or

    (iii) Has been determined to meet the eligibility requirements for 
free meals under the National School Lunch Act during the most recent 
school year. Most recent school year means the current school year 
unless the eligibility determination is made during an interim period 
between school terms, in which case the term means the preceding school 
year.

    (c) Eligibility determination verification. The SDA may accept the 
same documentation utilized by the local educational agency for 
approving free lunch meals or an assurance by school officials 
concerning the students' participation in the free school lunch program 
under the National School Lunch Act. The Department shall provide 
guidance on this verification separate from these regulations.

    (d) Requirement to serve hard-to-serve individuals. (1) Not less 
than 65 percent of the in-school youth who participate in the program 
under this subpart, including those who are not economically 
disadvantaged, shall have one or more additional barriers to 
employment, as described in section 263(b) of the Act.

    (2)(i) Not less than 65 percent of the out-of-school youth who 
participate in the program under this subpart, including those who are 
not economically disadvantaged, shall have one or more barriers to 
employment, as described in section 263(d) of the Act, in addition to 
any criterion listed in paragraph (b)(2) of this section.

    (ii) All Job Corps participants shall be considered out-of-school 
and as having a barrier to employment.

    (3) The requirement of paragraphs (d)(1) and (2) of this section 
shall be calculated on the basis of participants for whom services or 
training have been provided subsequent to the objective assessment on 
July 1, 1993 or later.

    (e) Addition of barrier. An SDA may identify and add one additional 
serious barrier to employment to the categories listed at sections 
263(b) and (d) of the Act in accordance with the specific procedures 
and requirements in section 263(h) of the Act.

    (f) Services to non-economically disadvantaged individuals. Up to 
10 percent of the youth served by an SDA under this subpart may be 
individuals who are not economically disadvantaged, but such 
individuals shall face one or more serious barriers to employment in 
accordance with section 263(e) of the Act.

    (g) Eligibility based on schoolwide project participation. (1) In 
addition to the individuals who meet the conditions described in 
Sec. 628.803 of this part, individuals who are not economically 
disadvantaged may participate in programs under this subpart if they 
are enrolled in a schoolwide project pursuant to section 263(g) of the 
Act.

    (2) For purposes of paragraph (g)(1) of this section, the term 
school means an individual building, facility, campus or a portion of 
the school such as the 11th or 12th grade.

    (3) A schoolwide project may be operated in a public school located 
in an urban census tract or non-metropolitan county with a poverty rate 
of 30 percent or above, and in which 70 percent or more of the students 
have at least one barrier to employment. The school shall make the 
determination on whether its students meet the barrier requirements.

    (4) The SDA shall determine which will be its schoolwide projects. 
Examples of schoolwide projects include, but are not limited to, 
school-to-work programs; college awareness and application assistance 
programs; school restructuring to make the schools career academies or 
magnet schools; mentoring programs; business-education compacts; 
integration of work and learning; year-round extensions of summer STEP 
programs; community service programs, including linkages with youth 
service corps; programs to encourage teen parents to stay in school, 
including establishing child care centers; and work experience slots 
provided as incentives to stay in school.

    (h)(1) Out-of-school ratio. Not less than 50 percent of the total 
title II-C participants in each SDA shall be out-of-school youth 
(section 263(f)(1) of the Act). The Governor shall be responsible for 
determining the period for which the 50 percent requirement will be 
calculated based either on the period covered by the job training plan 
or on a program year basis.

    (2) For purposes of paragraph (h)(1) of this section, a youth who 
has attained a high school diploma or an equivalency, is habitually 
truant, as defined by State law, or is attending an alternative school 
program may be considered out of school. An alternative school program 
includes an alternative high school, an alternative course of study 
approved by the local educational agency, or a high school equivalency 
program. Such programs may be operated either within or outside of the 
local public school system, and can offer either a high school diploma 
or equivalency.

    (3) Schoolwide project ratios. Those in-school participants who are 
served under a schoolwide project shall not be counted in determining 
the ratio of in-school to out-of-school youth in paragraph (h)(1) of 
this section.


Sec. 628.804  Authorized services.

    (a) The SDA and the PIC shall take into consideration exemplary 
program strategies and services, including those selected for 
replication pursuant to section 453(c) of the Act concerning capacity 
building, in the development of services for programs under this 
subpart.

    (b) Except as provided in paragraph (c) of this section, in order 
to participate in programs under this part an individual who is under 
the age of 18 and a school dropout, as defined in section 4(38) of the 
Act, shall enroll in and attend a school, course or program described 
in section 264(d)(2)(B)(ii) and (iii). An alternative course of study 
shall be approved by the LEA and may include educational programs 
provided by community-based organizations.

    (c) An individual who is a school dropout, as defined in section 
4(38) of the Act, and under the age of 18 may participate in programs 
under this part without meeting the requirements of paragraph (b) of 
this section for a limited interim period which may be during the 
summer months, during periods between school terms, or when a course of 
study is not immediately available.

    (d) The provision of preemployment and work maturity skills 
training shall be accompanied either by work experience or by other 
additional services which are designed to increase the basic education 
or occupational skills of the participant (section 264(d)(3)(A)).

    (e) The provision of work experience, job search assistance, job 
search skills training, and job club activities under programs 
conducted under this subpart shall be accompanied by other additional 
services which are designed to increase the basic education or 
occupational skills of the participant (section 264(d)(3)(B)).

    (f) The additional services offered pursuant to paragraphs (d) and 
(e) of this section may be provided concurrently or sequentially with 
services provided under other education and training programs (e.g., 
Job Opportunities and Basic Skills programs under title IV of the 
Social Security Act, Job Corps (see part 638 of this chapter), or 
schools).

    (g) Schoolwide projects for low-income schools shall meet the 
conditions in sections 263(g)(1) and (2) of the Act.

    (h) Entry employment experience is a training activity which may be 
conducted in public or private agencies. In all cases, this training 
activity shall increase or develop the long term employability of 
eligible in-school and out-of-school youth. Entry employment 
experiences may include, but are not limited to:

    (1) Work experience as described in Sec. 627.245 of this chapter; 
and

    (2) Cooperative education programs that coordinate educational 
programs with work in the private sector. Subsidized wages are not 
permitted in cooperative education programs.

    (i) Limited internships in the private sector under this subpart 
shall be designed to enhance the long-term employability of youth.

    (1) A limited internship shall be conducted pursuant to an 
agreement with an employer to provide structured on-site private sector 
exposure to work and the requirements for successful job retention.

    (2) A limited internship should be combined with classroom 
instruction relating to a particular position, occupation, industry or 
the basic skills and abilities to successfully compete in the local 
labor market.

    (j)(1) On-the-job (OJT) training activities approved under this 
subpart shall be consistent with the provisions of subpart B of part 
627 of this chapter and shall:

    (i) Be for positions that pay the participant a wage that equals or 
exceeds on the average wage at placement based on the most recent 
available data in the SDA for participants under title II-A;

    (ii) Be for positions that have career advancement potential; and

    (iii) Include a formal, written program of structured job training 
that will provide the participant with an orderly combination of 
instruction in work maturity skills, general employment competencies, 
and occupational specific skills.

    (2) In those cases where the OJT participant is a school dropout, 
the participant shall participate in an education program in accordance 
with paragraph (b) of this section.

    (k) Counseling and supportive services provided under this subpart 
may be provided to a participant for a period of up to 1 year after the 
date on which the participant completes the program. These include the 
full array of supportive services described in section 4(24) of the Act 
except for financial assistance.

    (l) Year-round operations. Programs for youth under this subpart 
shall:

    (1) Provide for a year-round education and training program that is 
coordinated with the appropriate local educational agencies, service 
providers, and other programs; and

    (2) As appropriate, ensure services for youth are available on a 
multiyear basis, consistent with the determined needs and goals of the 
youth served.

    (3) The year-round program delivery requirement of this paragraph 
does not prohibit schools on a 9-month operations schedule from 
providing services for programs under this part.

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