[Federal Register: August 11, 2000 (Volume 65, Number 156)]
[Rules and Regulations]
[Page 49293-49342]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11au00-7]
PART 663--ADULT AND DISLOCATED WORKER ACTIVITIES UNDER TITLE I OF
THE WORKFORCE INVESTMENT ACT
Subpart A-- Delivery of Adult and Dislocated Worker Services through
the One-Stop Delivery System
Sec.
663.100 What is the role of the adult and dislocated worker
programs in the One-Stop delivery system?
663.105 When must adults and dislocated workers be registered?
663.110 What are the eligibility criteria for core services for
adults in the adult and dislocated worker programs?
663.115 What are the eligibility criteria for core services for
dislocated workers in the adult and dislocated worker programs?
663.120 Are displaced homemakers eligible for dislocated worker
activities under WIA?
663.145 What services are WIA title I adult and dislocated workers
formula funds used to provide?
663.150 What core services must be provided to adults and
dislocated workers?
663.155 How are core services delivered?
663.160 Are there particular core services an individual must
receive before receiving intensive services under WIA section
134(d)(3)?
663.165 How long must an individual be in core services in order
to be eligible for intensive services?
Subpart B--Intensive Services
663.200 What are intensive services for adults and dislocated
workers?
663.210 How are intensive services delivered?
663.220 Who may receive intensive services?
663.230 What criteria must be used to determine whether an
employed worker needs intensive services to obtain or retain
employment leading to ``self-sufficiency''?
663.240 Are there particular intensive services an individual must
receive before receiving training services under WIA section
134(d)(4)(A)(i)?
663.245 What is the individual employment plan?
663.250 How long must an individual participant be in intensive
services to be eligible for training services?
Subpart C--Training Services
663.300 What are training services for adults and dislocated
workers?
663.310 Who may receive training services?
663.320 What are the requirements for coordination of WIA training
funds and other grant assistance?
Subpart D--Individual Training Accounts
663.400 How are training services provided?
663.410 What is an Individual Training Account (ITA)?
663.420 Can the duration and amount of ITA's be limited?
663.430 Under what circumstances may mechanisms other than ITA's
be used to provide training services?
663.440 What are the requirements for consumer choice?
Subpart E--Eligible Training Providers
663.500 What is the purpose of this subpart?
663.505 What are eligible providers of training services?
663.508 What is a ``program of training services''?
663.510 Who is responsible for managing the eligible provider
process?
663.515 What is the process for initial determination of provider
eligibility?
663.530 Is there a time limit on the period of initial eligibility
for training providers?
663.535 What is the process for determining the subsequent
eligibility of a provider?
663.540 What kind of performance and cost information is required
for determinations of subsequent eligibility?
663.550 How is eligible provider information developed and
maintained?
663.555 How is the State list disseminated?
663.565 May an eligible training provider lose its eligibility?
663.570 What is the consumer reports system?
663.575 In what ways can a Local Board supplement the information
available from the State list?
663.585 May individuals choose training providers located outside
of the local area?
663.590 May a community-based organization (CBO) be included on an
eligible provider list?
663.595 What requirements apply to providers of OJT and customized
training?
Subpart F--Priority and Special Populations
663.600 What priority must be given to low-income adults and
public assistance recipients served with adult funds under title I?
663.610 Does the statutory priority for use of adult funds also
apply to dislocated worker funds?
663.620 How do the Welfare-to-Work program and the TANF program
relate to the One-Stop delivery system?
663.630 How does a displaced homemaker qualify for services under
title I?
663.640 May an individual with a disability whose family does not
meet income eligibility criteria under the Act be eligible for
priority as a low-income adult?
Subpart G--On-the-Job Training (OJT) and Customized Training
663.700 What are the requirements for on-the-job training (OJT)?
663.705 What are the requirements for OJT contracts for employed
workers?
663.710 What conditions govern OJT payments to employers?
663.715 What is customized training?
663.720 What are the requirements for customized training for
employed workers?
663.730 May funds provided to employers for OJT of customized
training be used to assist, promote, or deter union organizing?
Subpart H--Supportive Services
663.800 What are supportive services for adults and dislocated
workers?
663.805 When may supportive services be provided to participants?
663.810 Are there limits on the amounts or duration of funds for
supportive services?
663.815 What are needs-related payments?
663.820 What are the eligibility requirements for adults to
receive needs-related payments?
663.825 What are the eligibility requirements for dislocated
workers to receive needs-related payments?
663.830 May needs-related payments be paid while a participant is
waiting to start training classes?
663.840 How is the level of needs-related payments determined?
Authority: Section 506(c), Pub. L. 105-220; 20 U.S.C. 9276(c).
Subpart A--Delivery of Adult and Dislocated Worker Services through
the One-Stop Delivery System
Sec. 663.100 What is the role of the adult and dislocated worker
programs in the One-Stop delivery system?
(a) The One-Stop system is the basic delivery system for adult and
dislocated worker services. Through this system, adults and dislocated
workers can access a continuum of services. The services are organized
into three levels: core, intensive, and training.
(b) The chief elected official or his/her designee(s), as the local
grant recipient(s) for the adult and dislocated worker programs, is a
required One-Stop partner and is subject to the provisions relating to
such partners described in 20 CFR part 662. Consistent with those provisions:
(1) Core services for adults and dislocated workers must be made
available in at least one comprehensive One-Stop center in each local
workforce investment area. Services may also be available elsewhere,
either at affiliated sites or at specialized centers. For example,
specialized centers may be established to serve workers being
dislocated from a particular employer or industry, or to serve
residents of public housing.
(2) The One-Stop centers also make intensive services available to
adults and dislocated workers, as needed, either by the One-Stop
operator directly or through contracts with service providers that are
approved by the Local Board.
(3) Through the One-Stop system, adults and dislocated workers
needing training are provided Individual Training Accounts (ITA's) and
access to lists of eligible providers and programs of training. These
lists contain quality consumer information, including cost and
performance information for each of the providers' programs, so that
participants can make informed choices on where to use their ITA's.
(ITA's are more fully discussed in subpart D of this part.)
Sec. 663.105 When must adults and dislocated workers be registered?
(a) Registration is the process for collecting information to
support a determination of eligibility. This information may be
collected through methods that include electronic data transfer,
personal interview, or an individual's application.
(b) Adults and dislocated workers who receive services funded under
title I other than self-service or informational activities must be
registered and determined eligible.
(c) EO data must be collected on every individual who is interested
in being considered for WIA title I financially assisted aid, benefits,
services, or training by a recipient, and who has signified that
interest by submitting personal information in response to a request
from the recipient.
Sec. 663.110 What are the eligibility criteria for core services for
adults in the adult and dislocated worker program?
To be eligible to receive core services as an adult in the adult
and dislocated worker programs, an individual must be 18 years of age
or older. To be eligible for the dislocated worker programs, an
eligible adult must meet the criteria of Sec. 663.115. Eligibility
criteria for intensive and training services are found at Secs. 663.220
and 663.310.
663.115 What are the eligibility criteria for core services for
dislocated workers in the adult and dislocated worker programs?
(a) To be eligible to receive core services as a dislocated worker
in the adult and dislocated worker programs, an individual must meet
the definition of ``dislocated worker'' at WIA section 101(9).
Eligibility criteria for intensive and training services are found at
Secs. 663.220 and 663.310.
(b) Governors and Local Boards may establish policies and
procedures for One-Stop operators to use in determining an individual's
eligibility as a dislocated worker, consistent with the definition at
WIA section 101(9). These policies and procedures may address such
conditions as:
(1) What constitutes a ``general announcement'' of plant closing
under WIA section 101(9)(B)(ii) or (iii); and
(2) What constitutes ``unemployed as a result of general economic
conditions in the community in which the individual resides or because
of natural disasters'' for determining the eligibility of self-employed
individuals, including family members and farm or ranch hands, under
WIA section 101(9)(C).
Sec. 663.120 Are displaced homemakers eligible for dislocated worker
activities under WIA?
(a) Yes, there are two significant differences from the eligibility
requirements under the Job Training Partnership Act.
(b) Under the dislocated worker program in JTPA, displaced
homemakers are defined as ``additional dislocated workers'' and are
only eligible to receive services if the Governor determines that
providing such services would not adversely affect the delivery of
services to the other eligible dislocated workers. Under WIA section
101(9), displaced homemakers who meet the definition at WIA section
101(10) are eligible dislocated workers without any additional
determination.
(c) The definition of displaced homemaker under JTPA included
individuals who had been dependent upon public assistance under Aid for
Families with Dependent Children (AFDC) as well as those who had been
dependent on the income of another family member. The definition in WIA
section 101(10) includes only those individuals who were dependent on a
family member's income. Those individuals who have been dependent on
public assistance may be served in the adult program.
Sec. 663.145 What services are WIA title I adult and dislocated
workers formula funds used to provide?
(a) WIA title I formula funds allocated to local areas for adults
and dislocated workers must be used to provide core, intensive and
training services through the One-Stop delivery system. Local Boards
determine the most appropriate mix of these services, but all three
types must be available for both adults and dislocated workers. There
are different eligibility criteria for each of these types of services,
which are described at Secs. 663.110, 663.115, 663.220 and 663.310.
(b) WIA title I funds may also be used to provide the other
services described in WIA section 134(e):
(1) Discretionary One-Stop delivery activities, including:
(i) Customized screening and referral of qualified participants in
training services to employment; and
(ii) Customized employment-related services to employers on a fee-
for-service basis that are in addition to labor exchange services
available to employers under the Wagner-Peyser Act.
(2) Supportive services, including needs-related payments, as
described in subpart H of this part.
Sec. 663.150 What core services must be provided to adults and
dislocated workers?
(a) At a minimum, all of the core services described in WIA section
134(d)(2) and 20 CFR 662.240 must be provided in each local area
through the One-Stop delivery system.
(b) Followup services must be made available, as appropriate, for a
minimum of 12 months following the first day of employment, to
registered participants who are placed in unsubsidized employment.
Sec. 663.155 How are core services delivered?
Core services must be provided through the One-Stop delivery
system. Core services may be provided directly by the One-Stop operator
or through contracts with service providers that are approved by the
Local Board. The Local Board may only be a provider of core services
when approved by the chief elected official and the Governor in
accordance with the requirements of WIA section 117(f)(2) and 20 CFR
661.310.
Sec. 663.160 Are there particular core services an individual must
receive before receiving intensive services under WIA section
134(d)(3)?
(a) Yes, at a minimum, an individual must receive at least one core
service, such as an initial assessment or job
search and placement assistance, before receiving intensive services.
The initial assessment provides preliminary information about the
individual's skill levels, aptitudes, interests, and supportive
services needs. The job search and placement assistance helps the
individual determine whether he or she is unable to obtain employment,
and thus requires more intensive services to obtain employment. The
decision on which core services to provide, and the timing of their
delivery, may be made on a case-by-case basis at the local level
depending upon the needs of the participant.
(b) A determination of the need for intensive services under
Sec. 663.220, as established by the initial assessment or the
individual's inability to obtain employment through the core services
provided, must be contained in the participant's case file.
Sec. 663.165 How long must an individual be in core services in order
to be eligible for intensive services?
There is no Federally-required minimum time period for
participation in core services before receiving intensive services.
(WIA sec. 134(d)(3).)
Sec. 663.200 What are intensive services for adults and dislocated
workers?
(a) Intensive services are listed in WIA section 134(d)(3)(C). The
list in the Act is not all-inclusive and other intensive services, such
as out-of-area job search assistance, literacy activities related to
basic workforce readiness, relocation assistance, internships, and work
experience may be provided, based on an assessment or individual
employment plan.
(b) For the purposes of paragraph (a) of this section, work
experience is a planned, structured learning experience that takes
place in a workplace for a limited period of time. Work experience may
be paid or unpaid, as appropriate. A work experience workplace may be
in the private for profit sector, the non-profit sector, or the public
sector. Labor standards apply in any work experience where an employee/
employer relationship, as defined by the Fair Labor Standards Act,
exists.
Sec. 663.210 How are intensive services delivered?
(a) Intensive services must be provided through the One-Stop
delivery system, including specialized One-Stop centers. Intensive
services may be provided directly by the One-Stop operator or through
contracts with service providers, which may include contracts with
public, private for-profit, and private non-profit service providers
(including specialized service providers), that are approved by the
Local Board. (WIA secs. 117(d)(2)(D) and 134(d)(3)(B).)
(b) The Local Board may only be a provider of intensive services
when approved by the chief elected official and the Governor in
accordance with WIA section 117(f)(2) and 20 CFR 661.310.
Sec. 663.220 Who may receive intensive services?
There are two categories of adults and dislocated workers who may
receive intensive services:
(a) Adults and dislocated workers who are unemployed, have received
at least one core service and are unable to obtain employment through
core services, and are determined by a One-Stop operator to be in need
of more intensive services to obtain employment; and
(b) Adults and dislocated workers who are employed, have received
at least one core service, and are determined by a One-Stop operator to
be in need of intensive services to obtain or retain employment that
leads to self-sufficiency, as described in Sec. 663.230.
Sec. 663.230 What criteria must be used to determine whether an
employed worker needs intensive services to obtain or retain employment
leading to ``self-sufficiency''?
State Boards or Local Boards must set the criteria for determining
whether employment leads to self-sufficiency. At a minimum, such
criteria must provide that self-sufficiency means employment that pays
at least the lower living standard income level, as defined in WIA
section 101(24). Self-sufficiency for a dislocated worker may be
defined in relation to a percentage of the layoff wage. The special
needs of individuals with disabilities or other barriers to employment
should be taken into account when setting criteria to determine self-
sufficiency.
Sec. 663.240 Are there particular intensive services an individual
must receive before receiving training services under WIA section
134(d)(4)(A)(i)?
(a) Yes, at a minimum, an individual must receive at least one
intensive service, such as development of an individual employment plan
with a case manager or individual counseling and career planning,
before the individual may receive training services.
(b) The case file must contain a determination of need for training
services under Sec. 663.310, as identified in the individual employment
plan, comprehensive assessment, or through any other intensive service
received.
Sec. 663.245 What is the individual employment plan?
The individual employment plan is an ongoing strategy jointly
developed by the participant and the case manager that identifies the
participant's employment goals, the appropriate achievement objectives,
and the appropriate combination of services for the participant to
achieve the employment goals.
Sec. 663.250 How long must an individual participant be in intensive
services to be eligible for training services?
There is no Federally-required minimum time period for
participation in intensive services before receiving training services.
The period of time an individual spends in intensive services should be
sufficient to prepare the individual for training or employment. (WIA
sec. 134(d)(4)(A)(i).)
Sec. 663.300 What are training services for adults and dislocated
workers?
Training services are listed in WIA section 134(d)(4)(D). The list
in the Act is not all-inclusive and additional training services may be
provided.
Sec. 663.310 Who may receive training services?
Training services may be made available to employed and unemployed
adults and dislocated workers who:
(a) Have met the eligibility requirements for intensive services,
have received at least one intensive service under Sec. 663.240, and
have been determined to be unable to obtain or retain employment
through such services;
(b) After an interview, evaluation, or assessment, and case
management, have been determined by a One-Stop operator or One-Stop
partner, to be in need of training services and to have the skills and
qualifications to successfully complete the selected training program;
(c) Select a program of training services that is directly linked
to the employment opportunities either in the local area or in another
area to which the individual is willing to relocate;
(d) Are unable to obtain grant assistance from other sources to pay
the costs of such training, including such sources as Welfare-to-Work,
State-funded training funds, Trade Adjustment Assistance and Federal
Pell Grants established under title IV of the Higher Education Act of
1965, or require WIA assistance in addition to other sources of grant
assistance, including Federal Pell Grants (provisions relating to fund
coordination are found at Sec. 663.320 and WIA section 134(d)(4)(B)); and
(e) For individuals whose services are provided through the adult
funding stream, are determined eligible in accordance with the State
and local priority system, if any, in effect for adults under WIA
section 134(d)(4)(E) and Sec. 663.600. (WIA sec. 134(d)(4)(A).)
Sec. 663.320 What are the requirements for coordination of WIA
training funds and other grant assistance?
(a) WIA funding for training is limited to participants who:
(1) Are unable to obtain grant assistance from other sources to pay
the costs of their training; or
(2) Require assistance beyond that available under grant assistance
from other sources to pay the costs of such training. Program operators
and training providers must coordinate funds available to pay for
training as described in paragraphs (b) and (c) of this section.
(b) Program operators must coordinate training funds available and
make funding arrangements with One-Stop partners and other entities to
apply the provisions of paragraph (a) of this section. Training
providers must consider the availability of other sources of grants to
pay for training costs such as Welfare-to-Work, State-funded training
funds, and Federal Pell Grants, so that WIA funds supplement other
sources of training grants.
(c) A WIA participant may enroll in WIA-funded training while his/
her application for a Pell Grant is pending as long as the One-Stop
operator has made arrangements with the training provider and the WIA
participant regarding allocation of the Pell Grant, if it is
subsequently awarded. In that case, the training provider must
reimburse the One-Stop operator the WIA funds used to underwrite the
training for the amount the Pell Grant covers. Reimbursement is not
required from the portion of Pell Grant assistance disbursed to the WIA
participant for education-related expenses. (WIA sec. 134(d)(4)(B).)
Subpart D--Individual Training Accounts
Sec. 663.400 How are training services provided?
Except under the three conditions described in WIA section
134(d)(4)(G)(ii) and Sec. 663.430(a), the Individual Training Account
(ITA) is established for eligible individuals to finance training
services. Local Boards may only provide training services under
Sec. 663.430 if they receive a waiver from the Governor and meet the
requirements of 20 CFR 661.310 and WIA section 117(f)(1). (WIA sec.
134(d)(4)(G).)
Sec. 663.410 What is an Individual Training Account (ITA)?
The ITA is established on behalf of a participant. WIA title I
adult and dislocated workers purchase training services from eligible
providers they select in consultation with the case manager. Payments
from ITA's may be made in a variety of ways, including the electronic
transfer of funds through financial institutions, vouchers, or other
appropriate methods. Payments may also be made incrementally; through
payment of a portion of the costs at different points in the training
course. (WIA sec. 134(d)(4)(G).)
Sec. 663.420 Can the duration and amount of ITA's be limited?
(a) Yes, the State or Local Board may impose limits on ITA's, such
as limitations on the dollar amount and/or duration.
(b) Limits to ITA's may be established in different ways:
(1) There may be a limit for an individual participant that is
based on the needs identified in the individual employment plan; or
(2) There may be a policy decision by the State Board or Local
Board to establish a range of amounts and/or a maximum amount
applicable to all ITA's.
(c) Limitations established by State or Local Board policies must
be described in the State or Local Plan, respectively, but should not
be implemented in a manner that undermines the Act's requirement that
training services are provided in a manner that maximizes customer
choice in the selection of an eligible training provider. ITA
limitations may provide for exceptions to the limitations in individual
cases.
(d) An individual may select training that costs more than the
maximum amount available for ITAs under a State or local policy when
other sources of funds are available to supplement the ITA. These other
sources may include: Pell Grants; scholarships; severance pay; and
other sources.
Sec. 663.430 Under what circumstances may mechanisms other than ITA's
be used to provide training services?
(a) Contracts for services may be used instead of ITA's only when
one of the following three exceptions applies:
(1) When the services provided are on-the-job training (OJT) or
customized training;
(2) When the Local Board determines that there are an insufficient
number of eligible providers in the local area to accomplish the
purpose of a system of ITA's. The Local Plan must describe the process
to be used in selecting the providers under a contract for services.
This process must include a public comment period for interested
providers of at least 30 days;
(3) When the Local Board determines that there is a training
services program of demonstrated effectiveness offered in the area by a
community-based organization (CBO) or another private organization to
serve special participant populations that face multiple barriers to
employment, as described in paragraph (b) in this section. The Local
Board must develop criteria to be used in determining demonstrated
effectiveness, particularly as it applies to the special participant
population to be served. The criteria may include:
(i) Financial stability of the organization;
(ii) Demonstrated performance in the delivery of services to hard
to serve participant populations through such means as program
completion rate; attainment of the skills, certificates or degrees the
program is designed to provide; placement after training in
unsubsidized employment; and retention in employment; and
(iii) How the specific program relates to the workforce investment
needs identified in the local plan.
(b) Under paragraph (a)(3) of this section, special participant
populations that face multiple barriers to employment are populations
of low-income individuals that are included in one or more of the
following categories:
(1) Individuals with substantial language or cultural barriers;
(2) Offenders;
(3) Homeless individuals; and
(4) Other hard-to-serve populations as defined by the Governor.
Sec. 663.440 What are the requirements for consumer choice?
(a) Training services, whether under ITA's or under contract, must
be provided in a manner that maximizes informed consumer choice in
selecting an eligible provider.
(b) Each Local Board, through the One-Stop center, must make
available to customers the State list of eligible providers required in
WIA section 122(e). The list includes a description of the programs
through which the providers may offer the training services, the
information identifying eligible providers of on-the-job training and
customized training required under WIA section 122(h) (where
applicable), and the performance and cost information about eligible
providers of training services described in WIA sections 122 (e) and
(h).
(c) An individual who has been determined eligible for training
services under Sec. 663.310 may select a provider described in
paragraph (b) of this section after consultation with a case manager.
Unless the program has exhausted training funds for the program year,
the operator must refer the individual to the selected provider, and
establish an ITA for the individual to pay for training. For purposes
of this paragraph, a referral may be carried out by providing a voucher
or certificate to the individual to obtain the training.
(d) The cost of referral of an individual with an ITA to a training
provider is paid by the applicable adult or dislocated worker program
under title I of WIA.
Subpart E--Eligible Training Providers
Sec. 663.500 What is the purpose of this subpart?
The workforce investment system established under WIA emphasizes
informed customer choice, system performance, and continuous
improvement. The eligible provider process is part of the strategy for
achieving these goals. Local Boards, in partnership with the State,
identify training providers and programs whose performance qualifies
them to receive WIA funds to train adults and dislocated workers. In
order to maximize customer choice and assure that all significant
population groups are served, States and local areas should administer
the eligible provider process in a manner to assure that significant
numbers of competent providers, offering a wide variety of training
programs and occupational choices, are available to customers. After
receiving core and intensive services and in consultation with case
managers, eligible participants who need training use the list of these
eligible providers to make an informed choice. The ability of providers
to successfully perform, the procedures State and Local Boards use to
establish eligibility, and the degree to which information, including
performance information, on those providers is made available to
customers eligible for training services, are key factors affecting the
successful implementation of the Statewide workforce investment system.
This subpart describes the process for determining eligible training
providers.
Sec. 663.505 What are eligible providers of training services?
(a) Eligible providers of training services are described in WIA
section 122. They are those entities eligible to receive WIA title I-B
funds to provide training services to eligible adult and dislocated
worker customers.
(b) In order to provide training services under WIA title I-B, a
provider must meet the requirements of this subpart and WIA section
122.
(1) These requirements apply to the use of WIA title I adult and
dislocated worker funds to provide training:
(i) To individuals using ITA's to access training through the
eligible provider list; and
(ii) To individuals for training provided through the exceptions to
ITA's described at Sec. 663.430 (a)(2) and (a)(3).
(2) These requirements apply to all organizations providing
training to adult and dislocated workers, including:
(i) Postsecondary educational institutions providing a program
described in WIA section 122(a)(2)(A)(ii);
(ii) Entities that carry out programs under the National
Apprenticeship Act (29 U.S.C. 50 et seq.);
(iii) Other public or private providers of a program of training
services described in WIA section 122(a)(2)(C);
(iv) Local Boards, if they meet the conditions of WIA section
117(f)(1); and
(v) Community-based organizations and other private organizations
providing training under Sec. 663.430.
(c) Provider eligibility procedures must be established by the
Governor, as required by this subpart. Different procedures are
described in WIA for determinations of ``initial'' and ``subsequent''
eligibility. Because the processes are different, they are discussed
separately.
Sec. 663.508 What is a ``program of training services''?
A program of training services is one or more courses or classes,
or a structured regimen, that upon successful completion, leads to:
(a) A certificate, an associate degree, baccalaureate degree, or
(b) The skills or competencies needed for a specific job or jobs,
an occupation, occupational group, or generally, for many types of jobs
or occupations, as recognized by employers and determined prior to
training.
Sec. 663.510 Who is responsible for managing the eligible provider
process?
(a) The State and the Local Boards each have responsibilities for
managing the eligible provider process.
(b) The Governor must establish eligibility criteria for certain
providers to become initially eligible and must set minimum levels of
performance for all providers to remain subsequently eligible.
(c) The Governor must designate a State agency (called the
``designated State agency'') to assist in carrying out WIA section 122.
The designated State agency is responsible for:
(1) Developing and maintaining the State list of eligible providers
and programs, which is comprised of lists submitted by Local Boards;
(2) Determining if programs meet performance levels, including
verifying the accuracy of the information on the State list in
consultation with the Local Boards, removing programs that do not meet
program performance levels, and taking appropriate enforcement actions,
against providers in the case of the intentional provision of
inaccurate information, as described in WIA section 122(f)(1), and in
the case of a substantial violation of the requirements of WIA, as
described in WIA section 122(f)(2);
(3) Disseminating the State list, accompanied by performance and
cost information relating to each provider, to One-Stop operators
throughout the State.
(d) The Local Board must:
(1) Accept applications for initial eligibility from certain
postsecondary institutions and entities providing apprenticeship
training;
(2) Carry out procedures prescribed by the Governor to assist in
determining the initial eligibility of other providers;
(3) Carry out procedures prescribed by the Governor to assist in
determining the subsequent eligibility of all providers;
(4) Compile a local list of eligible providers, collect the
performance and cost information and any other required information
relating to providers;
(5) Submit the local list and information to the designated State
agency;
(6) Ensure the dissemination and appropriate use of the State list
through the local One-Stop system;
(7) Consult with the designated State agency in cases where
termination of an eligible provider is contemplated because inaccurate
information has been provided; and
(8) Work with the designated State agency in cases where the
termination of an eligible provider is contemplated because of
violations of the Act.
(e) The Local Board may:
(1) Make recommendations to the Governor on the procedures to be
used in determining initial eligibility of certain providers;
(2) Increase the levels of performance required by the State for
local providers to maintain subsequent eligibility;
(3) Require additional verifiable program-specific information from
local providers to maintain subsequent eligibility.
Sec. 663.515 What is the process for initial determination of provider
eligibility?
(a) To be eligible to receive adult or dislocated worker training
funds under title I of WIA, all providers must submit applications to
the Local Boards in the areas in which they wish to provide services.
The application must describe each program of training services to be
offered.
(b) For programs eligible under title IV of the Higher Education
Act and apprenticeship programs registered under the National
Apprenticeship Act (NAA), and the providers or such programs, Local
Boards determine the procedures to use in making an application. The
procedures established by the Local Board must specify the timing,
manner, and contents of the required application.
(c) For programs not eligible under title IV of the HEA or
registered under the NAA, and for providers not eligible under title IV
of the HEA or carrying out apprenticeship programs under NAA:
(1) The Governor must develop a procedure for use by Local Boards
for determining the eligibility of other providers, after
(i) Soliciting and taking into consideration recommendations from
Local Boards and providers of training services within the State;
(ii) Providing an opportunity for interested members of the public,
including representatives of business and labor organizations, to
submit comments on the procedure; and
(iii) Designating a specific time period for soliciting and
considering the recommendations of Local Boards and provider, and for
providing an opportunity for public comment.
(2) The procedure must be described in the State Plan.
(3)(i) The procedure must require that the provider must submit an
application to the Local Board at such time and in such manner as may
be required, which contains a description of the program of training
services;
(ii) If the provider provides a program of training services on the
date of application, the procedure must require that the application
include an appropriate portion of the performance information and
program cost information described in Sec. 663.540, and that the
program meet appropriate levels of performance;
(iii) If the provider does not provide a program of training
services on that date, the procedure must require that the provider
meet appropriate requirements specified in the procedure. (WIA sec.
122(b)(2)(D).)
(d) The Local Board must include providers that meet the
requirements of paragraphs (b) and (c) of this section on a local list
and submit the list to the designated State agency. The State agency
has 30 days to determine that the provider or its programs do not meet
the requirements relating to the providers under paragraph (c) of this
section. After the agency determines that the provider and its programs
meet(s) the criteria for initial eligibility, or 30 days have elapsed,
whichever occurs first, the provider and its programs are initially
eligible. The programs and providers submitted under paragraph (b) of
this section are initially eligible without State agency review. (WIA
sec. 122(e).)
Sec. 663.530 Is there a time limit on the period of initial
eligibility for training providers?
Yes, under WIA section 122(c)(5), the Governor must require
training providers to submit performance information and meet
performance levels annually in order to remain eligible providers.
States may require that these performance requirements be met one year
from the date that initial eligibility was determined, or may require
all eligible providers to submit performance information by the same
date each year. If the latter approach is adopted, the Governor may
exempt eligible providers whose determination of initial eligibility
occurs within six months of the date of submissions. The effect of this
requirement is that no training provider may have a period of initial
eligibility that exceeds eighteen months. In the limited circumstance
when insufficient data is available, initial eligibility may be
extended for a period of up to six additional months, if the Governor's
procedures provide for such an extension.
Sec. 663.535 What is the process for determining of the subsequent
eligibility of a provider?
(a) The Governor must develop a procedure for the Local Board to
use in determining the subsequent eligibility of all eligible training
providers determined initially eligible under Sec. 663.515 (b) and (c),
after:
(1) Soliciting and taking into consideration recommendations from
Local Boards and providers of training services within the State;
(2) Providing an opportunity for interested members of the public,
including representatives of business and labor organizations, to
submit comments on such procedure; and
(3) Designating a specific time period for soliciting and
considering the recommendations of Local Boards and providers, and for
providing an opportunity for public comment.
(b) The procedure must be described in the State Plan.
(c) The procedure must require that:
(1) Providers annually submit performance and cost information as
described at WIA section 122(d)(1) and (2), for each program of
training services for which the provider has been determined to be
eligible, in a time and manner determined by the Local Board;
(2) Providers and programs annually meet minimum performance levels
described at WIA section 122(c)(6), as demonstrated utilizing UI
quarterly wage records where appropriate.
(d) The program's performance information must meet the minimum
acceptable levels established under paragraph (c)(2) of this section to
remain eligible;
(e) Local Boards may require higher levels of performance for local
programs than the levels specified in the procedures established by the
Governor. (WIA sec.122(c)(5) and (c)(6).)
(f) The State procedure must require Local Boards to take into
consideration:
(1) The specific economic, geographic and demographic factors in
the local areas in which providers seeking eligibility are located, and
(2) The characteristics of the populations served by programs
seeking eligibility, including the demonstrated difficulties in serving
these populations, where applicable.
(g) The Local Board retains those programs on the local list that
meet the required performance levels and other elements of the State
procedures and submits the list, accompanied by the performance and
cost information, and any additional required information, to the
designated State agency. If the designated State agency determines
within 30 days from the receipt of the information that the program
does not meet the performance levels established under paragraph (c)(2)
of this section, the program may be removed from the list. A program
retained on the local list and not removed by the designated State
agency is considered an eligible program of training services.
Sec. 663.540 What kind of performance and cost information is required
for determinations of subsequent eligibility?
(a) Eligible providers of training services must submit, at least
annually, under procedures established by the Governor under
Sec. 663.535(c):
(1) Verifiable program-specific performance information, including:
(i) The information described in WIA section 122(d)(1)(A)(i) for
all individuals participating in the programs of training services,
including individuals who are not receiving assistance under WIA
section 134 and individuals who are receiving such assistance; and
(ii) The information described in WIA section 122(d)(1)(A)(ii)
relating only to individuals receiving assistance under the WIA adult
and dislocated worker program who are participating in the applicable
program of training services; and
(2) Information on program costs (such as tuition and fees) for WIA
participants in the program.
(b) Governors may require any additional verifiable performance
information (such as the information described at WIA section
122(d)(2)) that the Governor determines to be appropriate to obtain
subsequent eligibility, including information regarding all
participating individuals as well as individuals receiving assistance
under the WIA adult and dislocated worker program.
(c) Governors must establish procedures by which providers can
demonstrate if the additional information required under paragraph (b)
of this section imposes extraordinary costs on providers, or if
providers experience extraordinary costs in the collection of
information. If, through these procedures, providers demonstrate that
they experience such extraordinary costs:
(1) The Governor or Local Board must provide access to cost-
effective methods for the collection of the information; or
(2) The Governor must provide additional resources to assist
providers in the collection of the information from funds for Statewide
workforce investment activities reserved under WIA sections 128(a) and
133(a)(1).
(d) The Local Board and the designated State agency may accept
program-specific performance information consistent with the
requirements for eligibility under title IV of the Higher Education Act
of 1965 from a provider for purposes of enabling the provider to
fulfill the applicable requirements of this section, if the information
is substantially similar to the information otherwise required under
this section.
Sec. 663.550 How is eligible provider information developed and
maintained?
(a) The designated State agency must maintain a list of all
eligible training programs and providers in the State (the ``State
list'').
(b) The State list is a compilation of the eligible programs and
providers identified or retained by local areas and that have not been
removed under Secs. 663.535(g) and 663.565.
(c) The State list must be accompanied by the performance and cost
information contained in the local lists as required by
Sec. 663.535(e). (WIA sec. 122(e)(4)(A).)
Sec. 663.555 How is the State list disseminated?
(a) The designated State agency must disseminate the State list and
accompanying performance and cost information to the One-Stop delivery
systems within the State.
(b) The State list and information must be updated at least
annually.
(c) The State list and accompanying information form the primary
basis of the One-Stop consumer reports system that provides for
informed customer choice. The list and information must be widely
available, through the One-Stop delivery system, to customers seeking
information on training outcomes, as well as participants in employment
and training activities funded under WIA and other programs.
(1) The State list must be made available to individuals who have
been determined eligible for training services under Sec. 663.310.
(2) The State list must also be made available to customers whose
training is supported by other One-Stop partners.
Sec. 663.565 May an eligible training provider lose its eligibility?
(a) Yes. A training provider must deliver results and provide
accurate information in order to retain its status as an eligible
training provider.
(b) If the provider's programs do not meet the established
performance levels, the programs will be removed from the eligible
provider list.
(1) A Local Board must determine, during the subsequent eligibility
determination process, whether a provider's programs meet performance
levels. If the program fails to meet such levels, the program must be
removed from the local list. If all of the provider's programs fail to
meet such levels, the provider must be removed from the local list.
(2) The designated State agency upon receipt of the performance
information accompanying the local list, may remove programs from the
State list if the agency determines the program failed to meet the
levels of performance prescribed under Sec. 663.535(c). If all of the
provider's programs are determined to have failed to meet the levels,
the designated State agency may remove the provider from the State
list.
(3) Providers determined to have intentionally supplied inaccurate
information or to have subsequently violated any provision of title I
of WIA or the WIA regulations, including 29 CFR part 37, may be removed
from the list in accordance with the enforcement provisions of WIA
section 122(f). A provider whose eligibility is terminated under these
conditions is liable to repay all adult and dislocated worker training
funds it received during the period of noncompliance.
(4) The Governor must establish appeal procedures for providers of
training to appeal a denial of eligibility under this subpart according
to the requirements of 20 CFR 667.640(b).
Sec. 663.570 What is the consumer reports system?
The consumer reports system, referred to in WIA as performance
information, is the vehicle for informing the customers of the One-Stop
delivery system about the performance of training providers and
programs in the local area. It is built upon the State list of eligible
providers and programs developed through the procedures described in
WIA section 122 and this subpart. The consumer reports system must
contain the information necessary for an adult or dislocated worker
customer to fully understand the options available to him or her in
choosing a program of training services. Such program-specific factors
may include overall performance, performance for significant customer
groups (including wage replacement rates for dislocated workers),
performance of specific provider sites, current information on
employment and wage trends and projections, and duration of training
programs.
Sec. 663.575 In what ways can a Local Board supplement the information
available from the State list?
(a) Local Boards may supplement the information available from the
State list by providing customers with additional information to assist
in supporting informed customer choice and the achievement of local
performance measures (as described in WIA section 136).
(b) This additional information may include:
(1) Information on programs of training services that are linked to
occupations in demand in the local area;
(2) Performance and cost information, including program-specific
performance and cost information, for the local outlet(s) of multi-site
eligible providers; and
(3) Other appropriate information related to the objectives of WIA,
which may include the information described in Sec. 663.570.
Sec. 663.585 May individuals choose training providers located outside
of the local area?
Yes, individuals may choose any of the eligible providers and
programs on the State list. A State may also establish a reciprocal
agreement with another State(s) to permit providers of eligible
training programs in each State to accept individual training accounts
provided by the other State. (WIA secs. 122(e)(4) and (e)(5).)
Sec. 663.590 May a community-based organization (CBO) be included on
an eligible provider list?
Yes, CBO's may apply and they and their programs may be determined
eligible providers of training services, under WIA section 122 and this
subpart. As eligible providers, CBO's provide training through ITA's
and may also receive contracts for training special participant
populations when the requirements of Sec. 663.430 are met.
Sec. 663.595 What requirements apply to providers of OJT and
customized training?
For OJT and customized training providers, One-Stop operators in a
local area must collect such performance information as the Governor
may require, determine whether the providers meet such performance
criteria as the Governor may require, and disseminate a list of
providers that have met such criteria, along with the relevant
performance information about them, through the One-Stop delivery
system. Providers determined to meet the criteria are considered to be
identified as eligible providers of training services. These providers
are not subject to the other requirements of WIA section 122 or this
subpart.
Subpart F--Priority and Special Populations
Sec. 663.600 What priority must be given to low-income adults and
public assistance recipients served with adult funds under title I?
(a) WIA states, in section 134(d)(4)(E), that in the event that
funds allocated to a local area for adult employment and training
activities are limited, priority for intensive and training services
funded with title I adult funds must be given to recipients of public
assistance and other low-income individuals in the local area.
(b) Since funding is generally limited, States and local areas must
establish criteria by which local areas can determine the availability
of funds and the process by which any priority will be applied under
WIA section 134(d)(2)(E). Such criteria may include the availability of
other funds for providing employment and training-related services in
the local area, the needs of the specific groups within the local area,
and other appropriate factors.
(c) States and local areas must give priority for adult intensive
and training services to recipients of public assistance and other low-
income individuals, unless the local area has determined that funds are
not limited under the criteria established under paragraph (b) of this
section.
(d) The process for determining whether to apply the priority
established under paragraph (b) of this section does not necessarily
mean that only the recipients of public assistance and other low income
individuals may receive WIA adult funded intensive and training
services when funds are determined to be limited in a local area. The
Local Board and the Governor may establish a process that gives
priority for services to the recipients of public assistance and other
low income individuals and that also serves other individuals meeting
eligibility requirements.
Sec. 663.610 Does the statutory priority for use of adult funds also
apply to dislocated worker funds?
No, the statutory priority applies to adult funds for intensive and
training services only. Funds allocated for dislocated workers are not
subject to this requirement.
Sec. 663.620 How do the Welfare-to-Work program and the TANF program
relate to the One-Stop delivery system?
(a) The local Welfare-to-Work (WtW) program operator is a required
partner in the One-Stop delivery system. 20 CFR part 662 describes the
roles of such partners in the One-Stop delivery system and applies to
the Welfare-to-Work program operator. WtW programs serve individuals
who may also be served by the WIA programs and, through appropriate
linkages and referrals, these customers will have access to a broader
range of services through the cooperation of the WtW program in the
One-Stop system. WtW participants, who are determined to be WIA
eligible, and who need occupational skills training may be referred
through the One-Stop system to receive WIA training, when WtW grant and
other grant funds are not available in accordance with Sec. 663.320(a).
WIA participants who are also determined WtW eligible, may be referred
to the WtW operator for job placement and other WtW assistance.
(b) The local TANF agency is specifically suggested under WIA as an
additional partner in the One-Stop system. TANF recipients will have
access to more information about employment opportunities and services
when the TANF agency participates in the One-Stop delivery system. The
Governor and Local Board should encourage the TANF agency to become a
One-Stop partner to improve the quality of services to the WtW and
TANF-eligible populations. In addition, becoming a One-Stop partner
will ensure that the TANF agency is represented on the Local Board and
participates in developing workforce investment strategies that help
cash assistance recipients secure lasting employment.
Sec. 663.630 How does a displaced homemaker qualify for services under
title I?
Displaced homemakers may be eligible to receive assistance under
title I in a variety of ways, including:
(a) Core services provided by the One-Stop partners through the
One-Stop delivery system;
(b) Intensive or training services for which an individual
qualifies as a dislocated worker/displaced homemaker if the
requirements of this part are met;
(c) Intensive or training services for which an individual is
eligible if the requirements of this part are met;
(d) Statewide employment and training projects conducted with
reserve funds for innovative programs for displaced homemakers, as
described in 20 CFR 665.210(f).
Sec. 663.640 May an individual with a disability whose family does not
meet income eligibility criteria under the Act be eligible for priority
as a low-income adult?
Yes, even if the family of an individual with a disability does not
meet the income eligibility criteria, the individual with a disability
is to be considered a low-income individual if the individual's own
income:
(a) Meets the income criteria established in WIA section
101(25)(B); or
(b) Meets the income eligibility criteria for cash payments under
any Federal, State or local public assistance program. (WIA sec.
101(25)(F).)
Subpart G--On-the-Job Training (OJT) and Customized Training
Sec. 663.700 What are the requirements for on-the-job training (OJT)?
(a) On-the-job training (OJT) is defined at WIA section 101(31).
OJT is provided under a contract with an employer in the public,
private non-profit, or private sector. Through the OJT contract,
occupational training is provided for the WIA participant in
exchange for the reimbursement of up to 50 percent of the wage rate to
compensate for the employer's extraordinary costs. (WIA sec.
101(31)(B).)
(b) The local program must not contract with an employer who has
previously exhibited a pattern of failing to provide OJT participants
with continued long-term employment with wages, benefits, and working
conditions that are equal to those provided to regular employees who
have worked a similar length of time and are doing the same type of
work. (WIA sec. 195(4).)
(c) An OJT contract must be limited to the period of time required
for a participant to become proficient in the occupation for which the
training is being provided. In determining the appropriate length of
the contract, consideration should be given to the skill requirements
of the occupation, the academic and occupational skill level of the
participant, prior work experience, and the participant's individual
employment plan. (WIA sec. 101(31)(C).)
Sec. 663.705 What are the requirements for OJT contracts for employed
workers?
OJT contracts may be written for eligible employed workers when:
(a) The employee is not earning a self-sufficient wage as
determined by Local Board policy;
(b) The requirements in Sec. 663.700 are met; and
(c) The OJT relates to the introduction of new technologies,
introduction to new production or service procedures, upgrading to new
jobs that require additional skills, workplace literacy, or other
appropriate purposes identified by the Local Board.
Sec. 663.710 What conditions govern OJT payments to employers?
(a) On-the-job training payments to employers are deemed to be
compensation for the extraordinary costs associated with training
participants and the costs associated with the lower productivity of
the participants.
(b) Employers may be reimbursed up to 50 percent of the wage rate
of an OJT participant for the extraordinary costs of providing the
training and additional supervision related to the OJT. (WIA sec.
101(31)(B).)
(c) Employers are not required to document such extraordinary
costs.
Sec. 663.715 What is customized training?
Customized training is training:
(a) That is designed to meet the special requirements of an
employer (including a group of employers);
(b) That is conducted with a commitment by the employer to employ,
or in the case of incumbent workers, continue to employ, an individual
on successful completion of the training; and
(c) For which the employer pays for not less than 50 percent of the
cost of the training. (WIA sec. 101(8).)
Sec. 663.720 What are the requirements for customized training for
employed workers?
Customized training of an eligible employed individual may be
provided for an employer or a group of employers when:
(a) The employee is not earning a self-sufficient wage as
determined by Local Board policy;
(b) The requirements in Sec. 663.715 are met; and
(c) The customized training relates to the purposes described in
Sec. 663.705(c) or other appropriate purposes identified by the Local
Board.
Sec. 663.730 May funds provided to employers for OJT of customized
training be used to assist, promote, or deter union organizing?
No, funds provided to employers for OJT or customized training must
not be used to directly or indirectly assist, promote or deter union
organizing.
Subpart H--Supportive Services
Sec. 663.800 What are supportive services for adults and dislocated
workers?
Supportive services for adults and dislocated workers are defined
at WIA sections 101(46) and 134(e)(2) and (3). They include services
such as transportation, child care, dependent care, housing, and needs-
related payments, that are necessary to enable an individual to
participate in activities authorized under WIA title I. Local Boards,
in consultation with the One-Stop partners and other community service
providers, must develop a policy on supportive services that ensures
resource and service coordination in the local area. Such policy should
address procedures for referral to such services, including how such
services will be funded when they are not otherwise available from
other sources. The provision of accurate information about the
availability of supportive services in the local area, as well as
referral to such activities, is one of the core services that must be
available to adults and dislocated workers through the One-Stop
delivery system. (WIA sec. 134(d)(2)(H).)
Sec. 663.805 When may supportive services be provided to participants?
(a) Supportive services may only be provided to individuals who
are:
(1) Participating in core, intensive or training services; and
(2) Unable to obtain supportive services through other programs
providing such services. (WIA sec. 134(e)(2)(A) and (B).)
(b) Supportive services may only be provided when they are
necessary to enable individuals to participate in title I activities.
(WIA sec. 101(46).)
Sec. 663.810 Are there limits on the amounts or duration of funds for
supportive services?
(a) Local Boards may establish limits on the provision of
supportive services or provide the One-Stop operator with the authority
to establish such limits, including a maximum amount of funding and
maximum length of time for supportive services to be available to
participants.
(b) Procedures may also be established to allow One-Stop operators
to grant exceptions to the limits established under paragraph (a) of
this section.
Sec. 663.815 What are needs-related payments?
Needs-related payments provide financial assistance to participants
for the purpose of enabling individuals to participate in training and
are one of the supportive services authorized by WIA section 134(e)(3).
Sec. 663.820 What are the eligibility requirements for adults to
receive needs-related payments?
Adults must:
(a) Be unemployed,
(b) Not qualify for, or have ceased qualifying for, unemployment
compensation; and
(c) Be enrolled in a program of training services under WIA section
134(d)(4).
Sec. 663.825 What are the eligibility requirements for dislocated
workers to receive needs-related payments?
To receive needs related payments, a dislocated worker must:
(a) Be unemployed, and:
(1) Have ceased to qualify for unemployment compensation or trade
readjustment allowance under TAA or NAFTA-TAA; and
(2) Be enrolled in a program of training services under WIA section
134(d)(4) by the end of the 13th week after the most recent layoff that
resulted in a determination of the worker's eligibility as a dislocated
worker, or, if later, by the end of the 8th week after the worker is
informed that a short-term layoff will exceed 6 months; or
(b) Be unemployed and did not qualify for unemployment
compensation or trade readjustment assistance under TAA or NAFTA-TAA.
Sec. 663.830 May needs-related payments be paid while a participant is
waiting to start training classes?
Yes, payments may be provided if the participant has been accepted
in a training program that will begin within 30 calender days. The
Governor may authorize local areas to extend the 30 day period to
address appropriate circumstances.
Sec. 663.840 How is the level of needs-related payments determined?
(a) The payment level for adults must be established by the Local
Board.
(b) For dislocated workers, payments must not exceed the greater of
either of the following levels:
(1) For participants who were eligible for unemployment
compensation as a result of the qualifying dislocation, the payment may
not exceed the applicable weekly level of the unemployment compensation
benefit; or
(2) For participants who did not qualify for unemployment
compensation as a result of the qualifying layoff, the weekly payment
may not exceed the poverty level for an equivalent period. The weekly
payment level must be adjusted to reflect changes in total family
income as determined by Local Board policies. (WIA sec. 134(e)(3)(C).)