20 C.F.R. Subpart I—Transition Provisions
Title 20 - Employees' Benefits
(a) Regulations set forth at parts 626, 627, 628, 629, 630, 631, and 637 of 20 CFR chapter V (1993) were amended, effective December 29, 1992, and were published as an interim final rule to provide planning guidance for States and SDA's on the changes made to the JTPA program as a result of the 1992 JTPA amendments (See 57 FR 62004 (December 29, 1992)). The transition provisions of the regulations were amended on June 3, 1992 (see 58 FR 31472, June 3, 1993). Those regulations and the statutory amendments were effective for the program year beginning July 1, 1993 (PY 1993), and succeeding program years. For PY 1992, JTPA programs and activities shall continue under the regulations set forth at 20 CFR parts 626, 627, 628, 629, 630, 631, and 637 (1992). (b) In order to provide for the orderly transition to and implementation of the provisions of JTPA, as amended by the 1992 amendments, this subpart I applies to the use of JTPA title II and title III funds allotted by formula to the States. Additional guidance on transition matters may be provided in administrative issuances. The provisions in this subpart are operational during the transition period for implementing the 1992 JTPA amendments. The transition period ended June 30, 1993 unless otherwise stated. The intent of the transition period is to complete, to the extent possible, activity begun on or before June 30, 1993 under current policy and regulations and to ensure that all requirements mandated by the 1992 JTPA amendments have been implemented. The following are actions required to be taken prior to July 1, 1993: (a) Review current policies, practices, procedures, and delivery systems to ensure that they conform to the requirements of the amendments; (b) Modify the Governor's coordination and special services plan in accordance with instructions issued by the Secretary; (c) Ensure that SDAs modify job training plans as necessary; (d) Execute a new Governor/Secretary agreement and a new grant agreement; (e) Issue procurement standards that comply with the Act and these regulations, as described in §627.420 of this part, Procurement; (f) Issue instructions necessary to implement program year 1993 cost categories pursuant to §627.440 of this part, Classification of costs; (g) Issue instructions necessary for SDAs to report program expenditures by year of appropriation pursuant to §627.455 of this part, Reports required; (h) Certify private industry councils pursuant to §628.410 of this chapter, Private Industry Council. (a) Establish a State Human Resource Investment Council (HRIC); (b) Issue instructions to “grandparent” participants in JTPA programs as of June 30, 1993 for purposes of completing training; (c) Issue instructions for use of PY 1992 and prior year 6 percent performance standards incentive funds to further develop and implement data collection and management information systems to track the program experience of participants. PY 1993 and subsequent performance standards incentive funds may not to be used for this purpose; (d) Of the Title II and Title III unobligated balance of funds available as of June 30, 1993, any amount may be reprogrammed into PY 1993 activity. The Department believes these amounts will be minimal and not represent a significant proportion of the funds available. Such reprogrammed funds will be subject to requirements contained in JTPA regulations effective July 1, 1993. (a) Review. The Governor shall conduct a comprehensive review of the current policies, procedures, and delivery systems relating to programs authorized under the Job Training Partnership Act for the purpose of ensuring the effective implementation of the amendments. Such a review shall include consideration of the appropriateness of current SDA designations, the representation on current State and local councils, the adequacy of current administrative systems, the effectiveness of current outreach, service delivery, and coordination activities, and other relevant matters. (b) Governor's Coordination and Special Services Plan (GCSSP). The GCSSP requires modification to assure conformance to the requirements of the amendments. The plan was to be modified pursuant to instructions issued by the Secretary and shall be submitted to the Secretary for review by May 15, 1993. (c) Job training plans. Service delivery area job training plans will require modification to comply with §628.420 of this chapter, Job training plan. (d) Governor/Secretary agreement and grant agreement. A new Governor/Secretary agreement is required to assure that the State shall comply with JTPA, as amended, and the applicable rules and regulations; the Wagner-Peyser Act, as amended, and the applicable rules and regulations. A new grant agreement is needed to provide the basis for Federal obligation of funds for programs authorized by Titles I, II, and III, and such other funds as the Secretary may award under the grant. (e) Procurement standards. In order to ensure fiscal accountability and prevent waste, fraud, and abuse in programs administered under JTPA, as amended, the Governor shall prescribe and implement procurement standards meeting the requirements of §627.420 of this part, Procurement. All procurements initiated on or after July 1, 1993 shall be governed by and follow the requirements in §627.420 of this part. Initiation of procurement means any sole source or small purchase awarded on or after July 1, 1993 and any Invitation for Bid or Request for Proposal issued on or after July 1, 1993. (f) Participants. In order to have the least possible disruption to program participants, during PY 1993, Governors and SDAs have the flexibility to grandfather participants already enrolled in JTPA programs up to and including June 30, 1993 under existing rules and regulations. All participants in programs on June 30, 1993, will be eligible for transfer to programs operated under the new provisions at any time beginning on July 1, 1993. “Hard to serve” barriers to participation, assessment and Individual Service Strategy provisions of the amendments will not apply to participants enrolled prior to July 1, 1993 or to 1993 Title II-B participants. (g) Cost categories. (1) Cost categories applicable to PY 1992 and earlier funds will be subject to prior regulations either until the funds have been exhausted or program activity has been completed. In order to assist the orderly transition to and implementation of the new requirements of the 1992 JTPA amendments, an increase is allowed in the administrative cost limitation for PY 1992 funds from 15 percent to 20 percent, with a corresponding adjustment to cost limitations for training and participant support. Specifically, not less than 80 percent of the title II-A funds shall be expended for training and participant support, and not less than 65 percent shall be expended for training. (2) Any prior year's carryover funds made available for use in PY 1993 will be subject to the reporting requirements and cost categories applicable to PY 1993 funds. (3) In determining compliance with the JTPA cost limitations for PY 1992, Governors may either: (i) Determine cost limitation compliance separately for funds expended in accordance with paragraphs (g)(1) and (g)(2) of this section; or (ii) Determine compliance for each cost category against the total PY 1992 funds, whether expended in accordance with the Act and regulations in effect prior to the 1992 amendments to JTPA or in accordance with the amended Act and these regulations. Using this option, the total combined funds expended for training and direct training should be at least 65 percent of PY 1992 SDA allocations. (4) In addition to the institutions specified in §627.440(d)(1)(vi)(B), the costs of tuition and entrance fees of a postsecondary vocational institution specified at section 481(c) of the Higher Education Act (20 U.S.C. 1088(c)) may be charged to direct training services through June 30, 1995, when such tuition charges or entrance fees are not more than the educational institution's catalog price, are necessary to receive specific training, are charged to the general public to receive such training, and are for the training of participants. (h) Financial reporting. Notwithstanding reprogramming, expenditures must be recorded separately by year of appropriation. (i) Private Industry Council. The private industry councils shall be certified pursuant to §628.410 of this chapter, Private Industry Council. (j) Grievances, investigations, and hearings. Generally, all grievances, investigations and hearings pending on or before June 30, 1993 should be resolved and settled under prior rules and procedures. Grievances, investigations, and hearings occurring on or after July 1, 1993 will be governed by the procedures described in subparts E, F, and H of this part 627. (k) Summer program. (1) The Title II-B Summer Youth Employment Program for 1993 shall be governed by the Act and regulations in effect prior to the Amendments (prior to September 7, 1992). (2) Up to 10 percent of the 1993 title II-B funds available may be transferred to the title II-C program. (l) SDA designation. At the Governor's discretion, SDA's designated prior to July 1, 1992 need not be subject to the provisions of §628.405, Service delivery areas. (m) Program implementation. The implementation by the States and SDA's of certain new program design requirements, particularly objective assessment and development of individual service strategies (ISS), may require additional time to fully implement beyond July 1, 1993. Reasonable efforts to implement the provisions of §§628.515, 628.520, and 628.530. as soon as possible after July 1, 1993, are expected to be made. However, it is not expected that every new participant will initially receive objective assessment, ISS, and referral to non-title II services for a period of 6 months, or until January 1, 1994. (n) Out-of-school youth ratio. The 50-percent out-of-school participants requirement for title II-C will be phased in during PY 1993 and will not be the subject of compliance review until PY 1994, beginning July 1, 1994. During PY 1993, however, SDA's must show significant improvement in the proportion of out-of-school youth being served and performance in increasing the service ratio will be monitored by the States and DOL during this implementation period. (o) Administrative issuances. Other implementation issues may be handled by administrative issuance. ETA will transmit such guidance directly to all Governors via a Training and Employment Guidance Letter (TEGL). Such TEGL's will be published as Notices in the The Department does not intend for contracts, agreements, inter-agency agreements, retainers, and similar arrangements to be negotiated and/or entered into for the sole purpose of applying previously existing rules and regulations. The 1992 JTPA amendments were effective July 1, 1993. The Department intends that contracts, awards and agreements entered into on or before June 30, 1993 are to be used to serve and/or train participants enrolled on or before June 30, 1993, unless the contracts and agreements are modified to comply with the new amendments and regulations. (a) The Department expects that the States and SDA's will fully implement the provisions of the Act and these regulations regarding procurement, cost principles, cost categories, cost limitations, participant service requirements and eligibility beginning July 1, 1993. (b) The Department expects that the implementation by the States and SDA's of the program design features in these regulations, particularly objective assessment and development of the ISS, may require additional time beyond July 1, 1993 to fully implement. (c) In deciding to allow or disallow questioned costs related to the implementation of the provisions described in paragraph (b) of this section, the Grant Officer will consider the extent to which the State's and SDA's have made good faith efforts in properly implementing such provisions in the period July 1, 1993 through June 30, 1994.
Title 20: Employees' Benefits
PART 627—GENERAL PROVISIONS GOVERNING PROGRAMS UNDER TITLES I, II, AND III OF THE ACT
Subpart I—Transition Provisions
§ 627.900 Scope and purpose.
§ 627.901 Transition period.
§ 627.902 Governor's actions.
§ 627.903 Actions which are at the discretion of the Governor.
§ 627.904 Transition and implementation.
§ 627.905 Guidance on contracts and other agreements.
§ 627.906 Determinations on State and SDA implementation.
