20 C.F.R. Subpart D—State Administration
Title 20 - Employees' Benefits
(a) Designation or creation of State dislocated worker unit or office. The State shall designate or create an identifiable State dislocated worker unit or office with the capabilities and functions identified in paragraph (b) of this section. Such unit or office may be an existing organization or new organization formed for this purpose (section 311(b)(2)). The State dislocated worker unit or office shall: (1) Make appropriate retraining and basic adjustment services available to eligible dislocated workers through substate grantees, and in statewide, regional or industrywide projects; (2) Work with employers and labor organizations in promoting labor-management cooperation to achieve the goals of this part; (3) Operate a monitoring, reporting, and management system to provide adequate information for effective program management, review, and evaluation; (4) Provide technical assistance and advice to substate grantees; (5) Exchange information and coordinate programs with the appropriate economic development agency, State education and training and social services programs; (6) Coordinate with the unemployment insurance system, the Federal-State Employment Service system, the Trade Adjustment Assistance program and other programs under this chapter; (7) Receive advance notice of plant closings and mass layoffs as provided at section 3(a)(2) of the Worker Adjustment and Retraining Notification Act (29 U.S.C. 2102(a)(2) and part 639 of this chapter); (8) Immediately notify (within 48 hours) the appropriate substate grantees following receipt of an employer notice of layoff or plant closing or of any other information that indicates a projected layoff or plant closing by an employer in the grantee's substate area, in order to continue and expand the services initiated by the rapid response team (section 311(b)(3)(D)); (9) Fully consult with labor organizations where substantial numbers of their members are to be served; and (10) Disseminate throughout the State information on the availability of services and activities under Title III of the Act and this part. (b) Rapid response capability. The dislocated worker unit shall have one or more rapid response specialists, and the capability to provide rapid response assistance, on-site, for dislocation events such as permanent closures and substantial layoffs throughout the State. The State shall not transfer the responsibility for the rapid response assistance functions of the State dislocated worker unit to another entity, but the State may contract with another entity to perform rapid response assistance services. Nothing in this paragraph shall remove or diminish the dislocated worker unit's accountability for ensuring the effective delivery of rapid response assistance services throughout the State (section 311(b)(12)). (1) State rapid response specialists should be knowledgeable about the resources available through programs under this part and all other appropriate resources available through public and private sources to assist dislocated workers. The expertise required by this part includes knowledge of the Federal, State, and local training and employment systems; labor-management relations and collective bargaining activities; private industry and labor market trends; programs and services available to veterans; and other fields necessary to carry out the rapid response requirements of the Act. (2) The rapid response specialists should have: (i) The ability to organize a broad-based response to a dislocation event, including the ability to coordinate services provided under this part with other State-administered programs available to assist dislocated workers, and the ability to involve the substate grantee and local service providers in the assistance effort; (ii) The authority to provide limited amounts of immediate financial assistance for rapid response activities, including, where appropriate, financial assistance to labor-management committees formed under paragraph (c)(2) of this section; (iii) Credibility among employers and in the employer community in order to effectively work with employers in difficult situations; and (iv) Credibility among employee groups and in the labor community, including organized labor, in order to effectively work with employees in difficult situations. (3) The dissemination of information on the State dislocated worker unit's services and activities should include efforts to ensure that major employers, organized labor, and groups of employees not represented by organized labor, are aware of the availability of rapid response assistance. The State dislocated worker unit should make equal effort in responding to dislocation events without regard to whether the affected workers are represented by a union. (4) In a situation involving an impending permanent closure or substantial layoff, a State may provide funds, where other public or private resources are not expeditiously available, for a preliminary assessment of the advisability of conducting a comprehensive study exploring the feasibility of having a company or group, including the workers, purchase the plant and continue it in operation. (5) Rapid response specialists may use funds available under this part: (i) To establish on-site contact with employer and employee representatives within a short period of time (preferably 48 hours or less) after becoming aware of a current or projected permanent closure or substantial layoff in order to— (A) Provide information on and facilitate access to available public programs and services; and (B) Provide emergency assistance adapted to the particular permanent closure or substantial layoff; such emergency assistance may include financial assistance for appropriate rapid response activities, such as arranging for the provision of early intervention services and other appropriate forms of immediate assistance in response to the dislocation event; (ii) To promote the formation of labor-management committees as provided for in paragraph (c) of this section, by providing: (A) Immediate assistance in the establishment of the labor-management committee, including providing immediate financial assistance to cover the start-up costs of the committee; (B) A list of individuals from which the chairperson of the committee may be selected; (C) Technical advice as well as information on sources of assistance, and liaison with other public and private services and programs; and (D) Assistance in the selection of worker representatives in the event no union is present; (iii) To provide ongoing assistance to labor-management committees described in paragraph (c) of this section by: (A) Maintaining ongoing contact with such committees, either directly or through the committee chairperson; (B) Attending meetings of such committees on an ex officio basis; and (C) Ensuring ongoing liaison between the committee and locally available resources for addressing the dislocation, including the establishment of linkages with the substate grantee or with the service provider designated by the substate grantee to act in such capacity; (iv) To collect information related to: (A) Economic dislocation (including potential closings or layoffs); and (B) All available resources within the State for serving displaced workers, which information shall be made available on a regular basis to the Governor and the State Council to assist in providing an adequate information base for effective program management, review, and evaluation; (v) To provide or obtain appropriate financial and technical advice and liaison with economic development agencies and other organizations to assist in efforts to avert worker dislocations; (vi) To disseminate information throughout the State on the availability of services and activities carried out by the dislocated worker unit or office; and (vii) To assist the local community in developing its own coordinated response and in obtaining access to State economic development assistance. (6) Notwithstanding the definition of “substantial layoff (for rapid response assistance)” at §631.2 of this part; (i) The Governor shall provide rapid response and basic readjustment services to members of a group of workers under the NAFTA Worker Security Act for which the Governor has made a finding under §631.3(j); and (ii) The Governor may, under exceptional circumstances, authorize rapid response assistance provided by a State dislocated worker unit when the layoff is less than 50 or more individuals, is not at a single site of employment, or does not take place during a single 30 day period. For purposes of this provision, exceptional circumstances include those situations which would have a major impact upon the community(ies) in which they occur (section 314(b)). (c) Labor-management committees. As provided in sections 301(b)(1) and 314(b)(1)(B) of the Act, labor-management committees are a form of rapid response assistance which may be voluntarily established to respond to actual or prospective worker dislocation. (1) Labor management committees ordinarily include (but are not limited to) the following: (i) Shared and equal participation by workers and management, with members often selected in an informal fashion; (ii) Shared financial participation between the company and the State, using funds provided under Title III of the Act, in paying for the operating expenses of the committee; in some instances, labor union funds may help to pay committee expenses; (iii) A chairperson, to oversee and guide the activities of the committee who— (A) Shall be jointly selected by the labor and management members of the committee; (B) Is not employed by or under contract with labor or management at the site; and (C) Shall provide advice and leadership to the committee and prepare a report on its activities; (iv) The ability to respond flexibly to the needs of affected workers by devising and implementing a strategy for assessing the employment and training needs of each dislocated worker and for obtaining the services and assistance necessary to meet those needs; (v) A formal agreement, terminable at will by the workers or the company management, and terminable for cause by the Governor; and (vi) Local job identification activities by the chairperson and members of the committee on behalf of the affected workers. (2) Because they include employee representatives, labor-management committees typically provide a channel whereby the needs of eligible dislocated workers can be assessed, and programs of assistance developed and implemented, in an atmosphere supportive to each affected worker. As such, committees must be perceived to be representative and fair in order to be most effective. The Governor is responsible for monitoring and oversight of all State and substate grantee activities under this part. In such monitoring and oversight of substate grantees, the Governor shall ensure that expenditures and activities are in accordance with the substate plan or modification thereof, and with the cost limitations described in §631.14 of this part. Of the funds allotted to the Governor by the Secretary under §§631.11 and 631.12 of this part: (a) The Governor shall issue allocations to substate grantees, the sum of which shall be no less than 50 percent of the State's allotment (section 302(d)). (b)(1) The Governor shall prescribe the formula to be used in issuing substate allocations required under paragraph (a) of this section to substate grantees. (2) The formula prescribed pursuant to paragraph (b)(1) of this section shall utilize the most appropriate information available to the Governor. In prescribing the formula, the Governor shall include (but need not be limited to) the following information: (i) Insured unemployment data; (ii) Unemployment concentrations; (iii) Plant closing and mass layoff data; (iv) Declining industries data; (v) Farmer-rancher economic hardship data; and (vi) Long-term unemployment data. (3) The Governor may allow for an appropriate weight for each of the formula factors set forth in paragraph (b)(2) of this section. A weight of zero for any of the factors required in section 302(d) of the Act and identified in paragraph (b)(2) of this section shall only be made when a review of available data indicates that the factor is not relevant to determining the incidence of need for worker dislocation assistance within the State. The formula may be amended no more frequently than once each program year (section 302(d)). (c) The Governor may reserve an amount equal to not more than 40 percent of the funds allotted to the State under §631.11 and §631.12 of this part for State activities and for discretionary allocations to substate grantees (section 302(c)(1)). (d) The Governor may reserve an additional amount equal to not more than 10 percent of the funds allotted to the State under §631.11 of this part. The Governor shall allocate such funds, subject to the SJTCC or HRIC review and comment, during the first three quarters of the program year among substate grantees on the basis of need. Such funds shall be allocated to substate grantees and shall not be used for statewide activities. Such funds shall be included in each substate grantee's allocation for purposes of cost limitations, as described in §631.14 of this part (sections 302(c)(2) and 317(1)(B)). The Governor shall establish procedures to assure the equitable identification of funds required to be reallotted pursuant to section 303(b) of the Act. Funds so identified may be funds reserved by the State pursuant to section 302(c)(1)(A) through (D) of the Act and/or allocated to substate grantees pursuant to section 302(c)(1)(E), (c)(2) and/or (d) of the Act (section 303(d)). Such procedures may not exempt either State or substate funds from reallotment. (a) The Governor, after receiving recommendations from the SJTCC or HRIC, shall designate substate areas for the State (section 312(a)). (b) In designating substate areas, the Governor shall: (1) Ensure that each service delivery area within the State is included within a substate area and that no SDA is divided among two or more substate areas; and (2) Consider the availability of services throughout the State, the capability to coordinate the delivery of services with other human services and economic development programs, and the geographic boundaries of labor market areas within the State. (c) Subject to paragraph (b) of this section, the Governor shall designate as a substate area: (1) Any single SDA that has a population of 200,000 or more; (2) Any two or more contiguous SDA's that: (i) In the aggregate have a population of 200,000 or more; and (ii) Request such designation; and (3) Any concentrated employment program grantee for a rural area as described in section 101(a)(4)(A)(iii) of the Act. (d) In addition to the entities identified in paragraph (c) of this section, the Governor may, without regard to the 200,000 population requirement, designate SDAs with smaller populations as substate areas. (e) The Governor may deny a request for substate area designation from a consortium of two or more SDAs that meets the requirements of paragraph (c)(2) of this section only upon a determination that the request is not consistent with the effective delivery of services to eligible dislocated workers in the relevant labor market area, or would otherwise not be appropriate to carry out the purposes of title III. The Governor will give good faith consideration to all such requests by a consortium of SDAs to be a substate area. In denying a consortium's request for substate area designation, the Governor shall set forth the basis and rationale for the denial (section 312(a)(5)). (f) In the case where the service delivery area is the State, the entire State shall be designated as a single substate area. (g)(1) Entities described in paragraphs (c)(1) and (3) of this section may appeal the Governor's denial of substate area designation to the Secretary of Labor. The procedures that apply to such appeals shall be those set forth at §628.405(g) for appeals of the Governor's denial of SDA designation. (2) An entity described in paragraph (c)(2) of this section that has been denied substate area designation may utilize the State-level grievance procedures required by section 144(a) of the Act and subpart E of part 627 of this chapter for the resolution of disputes arising from such a denial. (h) Designation of substate areas shall not be revised more frequently than once every two years. All such designations must be completed no later than four months prior to the beginning of any program year (section 312(a)(6)). The Governor may establish procedures for the designation of substate grantees. (a) Designation of the substate grantee for each substate area shall be made on a biennial basis. (b) Entities eligible for designation as substate grantees include: (1) Private industry councils in the substate area; (2) Service delivery area grant recipients or administrative entities designated under Title II of the Act; (3) Private non-profit organizations; (4) Units of general local government in the substate area, or agencies thereof; (5) Local offices of State agencies; and (6) Other public agencies, such as community colleges and area vocational schools. (c) Substate grantees shall be designated in accordance with an agreement among the Governor, the local elected official or officials of such area, and the private industry council or councils of such area. Whenever a substate area is represented by more than one such official or council, the respective officials and councils shall each designate representatives, in accordance with procedures established by the Governor (after consultation with the SJTCC or HRIC), to negotiate such agreement. (d) The agreement specified in paragraph (c) of this section shall set forth the conditions, considerations, and other factors related to the selection of substate grantees in accordance with section 312(b) of the Act. (e) The Governor shall negotiate in good faith with the parties identified in paragraph (c) of this section and shall make a good faith effort to reach agreement. In the event agreement cannot be reached on the selection of a substate grantee, the Governor shall select the substate grantee. (f) Decisions under paragraphs (c), (d), and (e) of this section are not appealable to the Secretary (section 312(b) and (c)). (a) In order to receive an allotment of funds under §§631.11 and 631.12 of this part, the State shall submit to the Secretary, in accordance with instructions issued by the Secretary, on a biennial basis, a biennial State plan (section 311). Such plan shall include: (1) Assurances that— (i) The State will comply with the requirements of Title III of the Act and this part; (ii) Services will be provided only to eligible displaced workers, except as provided in paragraph (a)(2) of this section; (iii) Services will not be denied on the basis of State of residence to eligible dislocated workers displaced by a permanent closure or substantial layoff within the State; and may be provided to other eligible dislocated workers regardless of the State of residence of such workers; (2) Provision that the State will provide services under this part to displaced homemakers only if the Governor determines that the services may be provided to such workers without adversely affecting the delivery of services to eligible dislocated workers; (3) A description of the substate allotment and reallotment procedures and assurance that they meet the requirements of the Act and this part; (4) A description of the State procurement system and procedures to be used under Title III of the Act and this part which are consistent with the provisions in subpart D of part 627 of this chapter; and (5) Assurance that the State will not prescribe any performance standard which is inconsistent with §627.470 of this chapter. (b) The State biennial plan shall be submitted to the Secretary on or before the May 1 immediately preceding the first of the two program years for which the funds are to be made available. (c) Any plan submitted under paragraph (a) of this section may be modified to describe changes in or additions to the programs and activities set forth in the plan. No plan modification shall be effective unless reviewed pursuant to paragraph (d) of this section and approved pursuant to paragraph (e) of this section. (d) The Secretary shall review State biennial plans and plan modifications, including any comments thereon submitted by the SJTCC or HRIC, for overall compliance with the provisions of the Act, this part, and the instructions issued by the Secretary. (e) A State biennial plan or plan modification is submitted on the date of its receipt by the Secretary. The Secretary shall approve a plan or plan modification within 45 days of submission unless, within 30 days of submission, the Secretary notifies the Governor in writing of any deficiencies in such plan or plan modification. (f) The Secretary shall not finally disapprove the State biennial plan or plan modification of any State except after written notice and an opportunity to request and to receive a hearing before an administrative law judge pursuant to the provisions of subpart H of part 627 of this chapter. (a) Services under this part shall be integrated or coordinated with services and payments made available under Chapter 2 of Title II of the Trade Act of 1974 (19 U.S.C. 2271, et seq.) and part 617 of this chapter and programs provided by any State or local agencies designated under section 239 of the Trade Act of 1974 (19 U.S.C. 2311) or part 617 of this chapter (section 311(b)(10)). Such coordination shall be effected under provisions of an interagency agreement when the State agency responsible for administering programs under this part is different from the State agency administering Trade Act programs. (b) States may use funds allotted under §§631.11 and 631.12 of this part for coordination of worker readjustment programs, (i.e., programs under this part and trade adjustment assistance under part 617 of this chapter) and the unemployment compensation system consistent with the limitation on administrative expenses (see §631.14(a)(1) of this part). Each State shall be responsible for coordinating the unemployment compensation system and worker readjustment programs (section 314(f)). (c) Services under this part shall be coordinated with dislocated worker services under Title III of the Carl D. Perkins Vocational Education Act (20 U.S.C. 2351, et seq.) (section 311(b)(5)). (d) In promoting labor management cooperation, including the formation of labor-management committees under this part, the dislocated worker unit shall consider cooperation and coordination with labor-management committees established under other authorities (section 311(b)(3)(B)). (e) In accordance with section 402 of the Veterans' Benefits and Programs Improvement Act of 1988 (29 U.S.C. 1751 note) services under this part shall be coordinated with programs administered by the Department of Veterans Affairs and with other veterans' programs such as the Veterans' Job Training Act (29 U.S.C. 1721 note), title IV-C of the Job Training Partnership Act (29 U.S.C. 1721, et seq.), part 635 of this chapter, and the Transition Assistance Program. (a)(1) In the event that a substate grantee fails to submit a plan, or submits a plan which is not approved by the Governor (see §631.50(f) of this part), the Governor may direct the expenditure of funds allocated to the substate area. (2) The Governor's authority under this paragraph (a) to direct the expenditure of funds remains in effect only until such time as a plan is submitted and approved, or a new substate grantee is designated (section 313(c)). (3) The Governor shall not direct the expenditure of funds under this paragraph (a) until after the affected substate grantee has been afforded advance written notice of the Governor's intent to exercise such authority and an opportunity to appeal to the Secretary pursuant to the provisions of §628.426(e) of this chapter. (b)(1) If a substate grantee fails to expend funds allocated to it in accordance with its plan, the Governor, subject to appropriate notice and opportunity for comment in the manner required by section 105(b)(1), (2), and (3) of the Act, may direct the expenditure of funds only in accordance with the substate plan. (2) The Governor's authority under this paragraph (b) to direct the expenditure of funds shall remain in effect only until: (i) The substate grantee corrects the failure; (ii) The substate grantee submits an acceptable modification; or (iii) A new substate grantee is designated (section 313(a) and (d)). (3) The Governor shall not direct the expenditure of funds under this paragraph (b) until after the affected substate grantee has been afforded advance written notice of the Governor's intent to exercise such authority and an opportunity to appeal to the Secretary pursuant to the provisions of §628.426(e) of this chapter. (c) When the substate area is the State, the Secretary shall have the same authority as the Governor under paragraphs (a) and (b) of this section.
Title 20: Employees' Benefits
PART 631—PROGRAMS UNDER TITLE III OF THE JOB TRAINING PARTNERSHIP ACT
Subpart D—State Administration
§ 631.30 Designation or creation and functions of a State dislocated worker unit or office, and rapid response assistance.
§ 631.31 Monitoring and oversight.
§ 631.32 Allocation of funds by the Governor.
§ 631.33 State procedures for identifying funds subject to mandatory Federal reallotment.
§ 631.34 Designation of substate areas.
§ 631.35 Designation of substate grantees.
§ 631.36 Biennial State plan.
§ 631.37 Coordination activities.
§ 631.38 State by-pass authority.
