Final Rule 20 CFR Part 666

[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 666--PERFORMANCE ACCOUNTABILITY UNDER TITLE I OF THE WORKFORCE

INVESTMENT ACT

Subpart A--State Measures of Performance

Sec.

666.100 What performance indicators must be included in a State's

plan?

666.110 May a Governor require additional indicators of

performance?

666.120 What are the procedures for negotiating annual levels of

performance?

666.130 Under what conditions may a State or DOL request revisions

to the State negotiated levels of performance?

666.140 Which individuals receiving services are included in the

core indicators of performance?

666.150 What responsibility do States have to use quarterly wage

record information for performance accountability?

Subpart B--Incentives and Sanctions for State Performance

666.200 Under what circumstances is a State eligible for an

Incentive Grant?

666.205 What are the time frames under which States submit

performance progress reports and apply for incentive grants?

666.210 How may Incentive Grant funds be used?

666.220 What information must be included in a State Board's

application for an Incentive Grant?

666.230 How does the Department determine the amounts for

Incentive Grant awards?

666.240 Under what circumstances may a sanction be applied to a

State that fails to achieve negotiated levels of performance for

title I?

Subpart C--Local Measures of Performance

666.300 What performance indicators apply to local areas?

666.310 What levels of performance apply to the indicators of

performance in local areas?

Subpart D--Incentives and Sanctions for Local Performance

666.400 Under what circumstances are local areas eligible for

State Incentive Grants?

666.410 How may local incentive awards be used?

666.420 Under what circumstances may a sanction be applied to

local areas for poor performance?

Authority: Sec. 506(c), Pub. L. 105-220; 20 U.S.C. 9276(c).

Subpart A--State Measures of Performance

Sec. 666.100 What performance indicators must be included in a State's

plan?

(a) All States submitting a State Plan under WIA title I, subtitle

B must propose expected levels of performance for each of the core

indicators of performance for the adult, dislocated worker and youth

programs, respectively and the two customer satisfaction indicators.

(1) For the Adult program, these indicators are:

(i) Entry into unsubsidized employment;

(ii) Retention in unsubsidized employment six months after entry

into the employment;

(iii) Earnings received in unsubsidized employment six months after

entry into the employment; and

(iv) Attainment of a recognized credential related to achievement

of educational skills (such as a secondary school diploma or its

recognized equivalent), or occupational skills, by participants who

enter unsubsidized employment.

(2) For the Dislocated Worker program, these indicators are:

(i) Entry into unsubsidized employment;

(ii) Retention in unsubsidized employment six months after entry

into the employment;

(iii) Earnings received in unsubsidized employment six months after

entry into the employment; and

(iv) Attainment of a recognized credential related to achievement

of educational skills (such as a secondary school diploma or its

recognized equivalent), or occupational skills, by participants who

enter unsubsidized employment.

(3) For the Youth program, these indicators are:

(i) For eligible youth aged 14 through 18:

(A) Attainment of basic skills goals, and, as appropriate, work

readiness or occupational skills goals, up to a maximum of three goals

per year;

(B) Attainment of secondary school diplomas and their recognized

equivalents; and

training, military service, employment, or qualified apprenticeships.

(ii) For eligible youth aged 19 through 21:

(A) Entry into unsubsidized employment;

(B) Retention in unsubsidized employment six months after entry

into the employment;

entry into the employment; and

(D) Attainment of a recognized credential related to achievement of

educational skills (such as a secondary school diploma or its

recognized equivalent), or occupational skills, by participants who

enter post-secondary education, advanced training, or unsubsidized

employment.

(4) A single customer satisfaction measure for employers and a

single customer satisfaction indicator for participants must be used

for the WIA title I, subtitle B programs for adults, dislocated workers

and youth. (WIA sec. 136(b)(2).)

(b) After consultation with the representatives identified in WIA

sections 136(i) and 502(b), the Departments of Labor and Education will

issue definitions for the performance indicators established under

title I and title II of WIA. (WIA sec. 136 (b), (f) and (i).)

Sec. 666.110 May a Governor require additional indicators of

performance?

Yes, Governors may develop additional indicators of performance for

adults, youth and dislocated worker activities. These indicators must

be included in the State Plan. (WIA sec. 136(b)(2)(C).)

Sec. 666.120 What are the procedures for negotiating annual levels of

performance?

(a) We issue instructions on the specific information that must

accompany the State Plan and that is used to review the State's

expected levels of performance. The instructions may require that

levels of performance for years two and three be expressed as a

percentage improvement over the immediately preceding year's

performance, consistent with the objective of continuous improvement.

(b) States must submit expected levels of performance for the

required indicators for each of the first three program years covered

by the Plan.

of performance for each core indicator and the customer satisfaction

indicators. In negotiating these levels, the following must be taken

into account:

(1) The expected levels of performance identified in the State

Plan;

(2) The extent to which the levels of performance for each core

indicator assist in achieving high customer satisfaction;

(3) The extent to which the levels of performance promote

continuous improvement and ensure optimal return on the investment of

Federal funds; and

(4) How the levels compare with those of other States, taking into

account factors including differences in economic conditions,

participant characteristics, and the proposed service mix and

strategies.

(d) The levels of performance agreed to under paragraph (c) of this

section will be the State's negotiated levels of performance for the

first three years of the State Plan. These levels will be used to

determine whether sanctions will be applied or incentive grant funds

will be awarded.

(e) Before the fourth year of the State Plan, the Secretary and the

Governor must reach agreement on levels of performance for each core

indicator and the customer satisfaction indicators for the fourth and

fifth years covered by the plan. In negotiating these levels, the

factors listed in paragraph (c) of this section must be taken into

account.

(f) The levels of performance agreed to under paragraph (e) of this

section will be the State negotiated levels of performance for the

fourth and fifth years of the plan and must be incorporated into the

State Plan.

(g) Levels of performance for the additional indicators developed

by the Governor, including additional indicators to demonstrate and

measure continuous improvement toward goals identified by the State,

are not part of the negotiations described in paragraphs (c) and (e) of

this section. (WIA sec. 136(b)(3).)

(h) State negotiated levels of performance may be revised in

accordance with Sec. 666.130.

Sec. 666.130 Under what conditions may a State or DOL request

revisions to the State negotiated levels of performance?

(a) The DOL guidelines describe when and under what circumstances a

Governor may request revisions to negotiated levels. These

circumstances include significant changes in economic conditions, in

the characteristics of participants entering the program, or in the

services to be provided from when the initial plan was submitted and

approved. (WIA sec. 136(b)(3)(A)(vi).)

(b) The guidelines will establish the circumstances under which a

State will be required to submit revisions under specified

circumstances.

Sec. 666.140 Which individuals receiving services are included in the

core indicators of performance?

(a)(1) The core indicators of performance apply to all individuals

who are registered under 20 CFR 663.105 and 664.215 for the adult,

dislocated worker and youth programs, except for those adults and

dislocated workers who participate exclusively in self-service or

informational activities. (WIA sec. 136(b)(2)(A).)

(2) Self-service and informational activities are those core

services that are made available and accessible to the general public,

that are designed to inform and educate individuals about the labor

market and their employment strengths, weaknesses, and the range of

services appropriate to their situation, and that do not require

significant staff involvement with the individual in terms of resources

or time.

(b) For registered participants, a standardized record that

includes appropriate performance information must be maintained in

accordance with WIA section 185(a)(3).

by registered participants, and will reflect services provided under

WIA title I, subtitle B programs for adults, dislocated workers and

youth. Performance may also take into account services provided to

participants by other One-Stop partner programs and activities, to the

extent that the local MOU provides for the sharing of participant

information.

Sec. 666.150 What responsibility do States have to use quarterly wage

record information for performance accountability?

(a) States must, consistent with State laws, use quarterly wage

record information in measuring the progress on State and local

performance measures. In order to meet this requirement the use of

social security numbers from registered participants and such other

information as is necessary to measure the progress of those

participants through quarterly wage record information is authorized.

(b) The State must include in the State Plan a description of the

State's performance accountability system, and a description of the

State's strategy for using quarterly wage record information to measure

the progress on State and local performance measures. The description

must identify the entities that may have access to quarterly wage

record information for this purpose.

regarding wages paid to an individual, the social security account

number (or numbers, if more than one) of the individual and the name,

address, State, and (when known) the Federal employer identification

number of the employer paying the wages to the individual. (WIA sec.

136(f)(2).)

Subpart B--Incentives and Sanctions for State Performance

Sec. 666.200 Under what circumstances is a State eligible for an

Incentive Grant?

A State is eligible to apply for an Incentive Grant if its

performance for the immediately preceding year exceeds:

(a) The State's negotiated levels of performance for the required

core indicators for the adult, dislocated worker and youth programs

under title I of WIA as well as the customer satisfaction indicators

for WIA title I programs;

(b) The adjusted levels of performance for title II Adult Education

and Family Literacy programs; and

Carl D. Perkins Vocational and Technical Education Act (20 U.S.C. 2301

et seq.). (WIA sec. 503.)

Sec. 666.205 What are the time frames under which States submit

performance progress reports and apply for incentive grants?

(a) State performance progress reports must be filed by the due

date established in reporting instructions issued by the Department.

(b) Based upon the reports filed under paragraph (a) of this

section, we will determine the amount of funds available, under WIA

title I, to each eligible State for incentive grants, in accordance

with the criteria of Sec. 666.230. We will publish the award amounts

for each eligible State, after consultation with the Secretary of

Education, within ninety (90) days after the due date for performance

progress reports established under paragraph (a) of this section.

under paragraph (b) of this section, States may apply for incentive

grants in accordance with the requirements of Sec. 666.220.

Sec. 666.210 How may Incentive Grant funds be used?

Incentive grant funds are awarded to States to carry out any one or

more innovative programs under titles I or II of WIA or the Carl D.

Perkins Vocational and Technical Education Act, regardless of which Act

is the source of the incentive funds. (WIA sec. 503(a).)

Sec. 666.220 What information must be included in a State Board's

application for an Incentive Grant?

(a) After consultation with the Secretary of Education, we will

issue instructions annually which will include the amount of funds

available to be awarded for each State and provide instructions for

submitting applications for an Incentive Grant.

(b) Each State desiring an incentive grant must submit to the

Secretary an application, developed by the State Board, containing the

following assurances:

(1) The State legislature was consulted regarding the development

of the application.

(2) The application was approved by the Governor, the eligible

agency (as defined in WIA section 203), and the State agency

responsible for vocational and technical programs under the Carl D.

Perkins Vocational and Technical Education Act.

(3) The State exceeded the State negotiated levels of performance

for title I, the levels of performance under title II and the levels

for vocational and technical programs under the Carl D. Perkins

Vocational and Technical Education Act. (WIA sec. 503(b).)

Sec. 666.230 How does the Department determine the amounts for

Incentive Grant awards?

(a) We determine the total amount to be allocated from funds

available under WIA section 174(b) for Incentive Grants taking into

consideration such factors as:

(1) The availability of funds under section 174(b) for technical

assistance, demonstration and pilot projects, evaluations, and

Incentive Grants and the needs for these activities;

(2) The number of States that are eligible for Incentive Grants and

their relative program formula allocations under title I;

(3) The availability of funds under WIA section 136(g)(2) resulting

from funds withheld for poor performance by States; and

(4) The range of awards established in WIA section 503(c).

(b) We will publish the award amount for eligible States, after

consultation with the Secretary of Education, within 90 days after the

due date, established under Sec. 666.205(a), for the latest State

performance progress report providing the annual information needed to

determine State eligibility.

Secretary, with the Secretary of Education, may consider such factors

as:

(1) The relative allocations of the eligible State compared to

other States;

(2) The extent to which the negotiated levels of performance were

exceeded;

(3) Performance improvement relative to previous years;

(4) Changes in economic conditions, participant characteristics and

proposed service design since the negotiated levels of performance were

agreed to;

(5) The eligible State's relative performance for each of the

indicators compared to other States; and

(6) The performance on those indicators considered most important

in terms of accomplishing national goals established by each of the

respective Secretaries.

Sec. 666.240 Under what circumstances may a sanction be applied to a

State that fails to achieve negotiated levels of performance for title

(a) If a State fails to meet the negotiated levels of performance

agreed to under Sec. 666.120 for core indicators of performance or

customer satisfaction indicators for the adult, dislocated worker or

youth programs under title I of WIA, the Secretary must, upon request,

provide technical assistance, as authorized under WIA sections 136(g)

and 170.

(b) If a State fails to meet the negotiated levels of performance

for core indicators of performance or customer satisfaction indicators

for the same program in two successive years, the amount of the

succeeding year's allocation for the applicable program may be reduced

by up to five percent.

the degree of failure to meet the negotiated levels of performance for

core indicators. In making a determination of the amount, if any, of

such a sanction, we may consider factors such as:

(1) The State's performance relative to other States;

(2) Improvement efforts underway;

(3) Incremental improvement on the performance measures;

(4) Technical assistance previously provided;

(5) Changes in economic conditions and program design;

(6) The characteristics of participants served compared to the

participant characteristics described in the State Plan; and

(7) Performance on other core indicators of performance and

customer satisfaction indicators for that program. (WIA sec. 136(g).)

(d) Only performance that is less than 80 percent of the negotiated

levels will be deemed to be a failure to achieve negotiated levels of

performance.

(e) In accordance with 20 CFR 667.300(e), a State grant may be

reduced for failure to submit an annual performance progress report.

(f) A State may request review of a sanction we impose in

accordance with the provisions of 20 CFR 667.800.

Subpart C--Local Measures of Performance

Sec. 666.300 What performance indicators apply to local areas?

(a) Each local workforce investment area in a State is subject to

the same core indicators of performance and the customer satisfaction

indicators that apply to the State under Sec. 666.100(a).

(b) In addition to the indicators described in paragraph (a) of

this section, under Sec. 666.110, the Governor may apply additional

indicators of performance to local areas in the State. (WIA sec.

136(c)(1).)

Sec. 666.310 What levels of performance apply to the indicators of

performance in local areas?

(a) The Local Board and the chief elected official must negotiate

with the Governor and reach agreement on the local levels of

performance for each indicator identified under Sec. 666.300. The

levels must be based on the State negotiated levels of performance

established under Sec. 666.120 and take into account the factors

described in paragraph (b) of this section.

(b) In determining the appropriate local levels of performance, the

Governor, Local Board and chief elected official must take into account

specific economic, demographic and other characteristics of the

populations to be served in the local area.

section must be incorporated in the local plan. (WIA secs. 118(b)(3)

and 136(c).)

Subpart D--Incentives and Sanctions for Local Performance

Sec. 666.400 Under what circumstances are local areas eligible for

State Incentive Grants?

(a) States must use a portion of the funds reserved for Statewide

workforce investment activities under WIA sections 128(a) and 133(a)(1)

to provide Incentive Grants to local areas for regional cooperation

among local boards (including local boards for a designated region, as

described in WIA section 116(c)), for local coordination of activities

carried out under this Act, and for exemplary performance on the local

performance measures established under subpart C of this part.

(b) The amount of funds used for Incentive Grants under paragraph

(a) of this section and the criteria used for determining exemplary

local performance levels to qualify for the incentive grants are

determined by the Governor. (WIA sec. 134(a)(2)(B)(iii).)

Sec. 666.410 How may local incentive awards be used?

The local incentive grant funds may be used for any activities

allowed under WIA title I-B.

Sec. 666.420 Under what circumstances may a sanction be applied to

local areas for poor performance?

(a) If a local area fails to meet the levels of performance agreed

to under Sec. 666.310 for the core indicators of performance or

customer satisfaction indicators for a program in any program year,

technical assistance must be provided. The technical assistance must be

provided by the Governor with funds reserved for Statewide workforce

investment activities under WIA sections 128(a) and 133(a)(1), or, upon

the Governor's request, by the Secretary. The technical assistance may

include the development of a performance improvement plan, a modified

local plan, or other actions designed to assist the local area in

improving performance.

(b) If a local area fails to meet the levels of performance agreed

to under Sec. 666.310 for the core indicators of performance or customer

satisfaction indicators for a program for two consecutive program

years, the Governor must take corrective actions. The corrective

actions may include the development of a reorganization plan under

which the Governor:

(1) Requires the appointment and certification of a new Local

Board;

(2) Prohibits the use of particular service providers or One-Stop

partners that have been identified as achieving poor levels of

performance; or

(3) Requires other appropriate measures designed to improve the

performance of the local area.

reorganization plan imposed under paragraph (b) of this section not

later than thirty (30) days after receiving notice of the plan. The

Governor must make a final decision within 30 days after receipt of the

appeal. The Governor's final decision may be appealed by the Local

Board to the Secretary under 20 CFR 667.650(b) not later than thirty

(30) days after the local area receives the decision. The decision by

the Governor to impose a reorganization plan becomes effective at the

time it is issued, and remains effective unless the Secretary rescinds

or revises the reorganization plan. Upon receipt of the appeal from the

local area, the Secretary must make a final decision within thirty (30)

days. (WIA sec. 136(h).)