PART 668--INDIAN AND NATIVE AMERICAN PROGRAMS UNDER TITLE I OF THE

WORKFORCE INVESTMENT ACT

Subpart A--Purposes and Policies

Sec.

668.100 What is the purpose of the programs established to serve

Native American peoples (INA programs) under section166 of the

Workforce Investment Act?

668.120 How must INA programs be administered?

668.130 What obligation do we have to consult with the INA grantee

community in developing rules, regulations, and standards of

accountability for INA programs?

668.140 What WIA regulations apply to the INA program?

668.150 What definitions apply to terms used in the regulations in

this part?

Subpart B--Service Delivery Systems Applicable to Section 166 Programs

668.200 What are the requirements for designation as an ``Indian

or Native American (INA) grantee''?

668.210 What priority for designation is given to eligible

organizations?

668.220 What is meant by the ``ability to administer funds'' for

designation purposes?

668.230 How will we determine an entity's ``ability to administer

funds''?

668.240 What is the process for applying for designation as an INA

grantee?

668.250 What happens if two or more entities apply for the same

area?

668.260 How are INA grantees designated?

668.270 What appeal rights are available to entities that are

denied designation?

668.280 Are there any other ways in which an entity may be

designated as an INA grantee?

668.290 Can an INA grantee's designation be terminated?

668.292 How does a designated entity become an INA grantee?

668.294 Do we have to designate an INA grantee for every part of

the country?

668.296 How are WIA funds allocated to INA grantees?

Subpart C--Services to Customers

668.300 Who is eligible to receive services under the INA program?

668.340 What are INA grantee allowable activities?

668.350 Are there any restrictions on allowable activities?

668.360 What is the role of INA grantees in the One-Stop system?

668.370 What policies govern payments to participants, including

wages, training allowances or stipends, or direct payments for

supportive services?

668.380 What will we do to strengthen the capacity of INA grantees

to deliver effective services?

Subpart D--Supplemental Youth Services

668.400 What is the purpose of the supplemental youth services

program?

668.410 What entities are eligible to receive supplemental youth

services funding?

668.420 What are the planning requirements for receiving

supplemental youth services funding?

668.430 What individuals are eligible to receive supplemental youth

services?

668.440 How is funding for supplemental youth services determined?

668.450 How will supplemental youth services be provided?

668.460 Are there performance measures and standards applicable to

the supplemental youth services program?

Subpart E--Services to Communities

668.500 What services may INA grantees provide to or for employers

under section 166?

668.510 What services may INA grantees provide to the community at

large under section 166?

668.520 Must INA grantees give preference to Indian/Native American

entities in the selection of contractors or service providers?

668.530 What rules govern the issuance of contracts and/or

subgrants?

Subpart F--Accountability for Services and Expenditures

668.600 To whom is the INA grantee accountable for the provision of

services and the expenditure of INA funds?

668.610 How is this accountability documented and fulfilled?

668.620 What performance measures are in place for the INA program?

668.630 What are the requirements for preventing fraud and abuse

under section 166?

668.640 What grievance systems must a section 166 program provide?

668.650 Can INA grantees exclude segments of the eligible

population?

Subpart G--Section 166 Planning/Funding Process

668.700 What process must an INA grantee use to plan its employment

and training services?

668.710 What planning documents must an INA grantee submit?

668.720 What information must these planning documents contain?

668.730 When must these plans be submitted?

668.740 How will we review and approve such plans?

668.750 Under what circumstances can we or the INA grantee modify

the terms of the grantee's plan(s)?

Subpart H--Administrative Requirements

668.800 What systems must an INA grantee have in place to

administer an INA program?

668.810 What types of costs are allowable expenditures under the

INA program?

668.820 What rules apply to administrative costs under the INA

program?

668.825 Does the WIA administrative cost limit for States and local

areas apply to section 166 grants?

668.830 How should INA program grantees classify costs?

668.840 What cost principles apply to INA funds?

668.850 What audit requirements apply to INA grants?

668.860 What cash management procedures apply to INA grant funds?

668.870 What is ``program income'' and how is it regulated in the

INA program?

Subpart I--Miscellaneous Program Provisions

668.900 Does WIA provide regulatory and/or statutory waiver

authority?

668.910 What information is required to document a requested

waiver?

668.920 What provisions of law or regulations may not be waived?

668.930 May INA grantees combine or consolidate their employment

and training funds?

668.940 What is the role of the Native American Employment and

Training Council?

Authority: Secs. 506(c) and 166(h)(2), Pub. L. 105-220; 20

U.S.C. 9276(c); 29 U.S.C. 2911(h)(2).

Subpart A--Purposes and Policies

Sec. 668.100 What is the purpose of the programs established to serve

Native American peoples (INA programs) under section 166 of the

Workforce Investment Act?

(a) The purpose of WIA INA programs is to support comprehensive

employment and training activities for Indian, Alaska Native and Native

Hawaiian individuals in order to:

(1) Develop more fully their academic, occupational, and literacy

skills;

(2) Make them more competitive in the workforce;

(3) Promote the economic and social development of Indian, Alaska

Native, and Native Hawaiian communities according to the goals and

values of such communities; and

(4) Help them achieve personal and economic self-sufficiency.

(b) The principal means of accomplishing these purposes is to

enable tribes and Native American organizations to provide employment

and training services to Native American peoples and their communities.

Services should be provided in a culturally appropriate manner,

consistent with the principles of Indian self-determination. (WIA sec.

166(a)(1).)

Sec. 668.120 How must INA programs be administered?

(a) We will administer INA programs to maximize the Federal

commitment to support the growth and development of Native American

people and communities as determined by representatives of such

communities.

(b) In administering these programs, we will observe the

Congressional declaration of policy set forth in the Indian Self-

Determination and Education Assistance Act, at 25 U.S.C. section 450a,

as well as the Department of Labor's ``American Indian and Alaska

Native Policy,'' dated July 29, 1998.

(c) The regulations in this part are not intended to abrogate the

trust responsibilities of the Federal Government to Native American

bands, tribes, or groups in any way.

(d) We will administer INA programs through a single organizational

unit and consistent with the requirements in section 166(h) of the Act.

We have designated the Division of Indian and Native American Programs

(DINAP) within the Employment and Training Administration (ETA) as this

single organizational unit required by WIA section 166(h)(1).

(e) We will establish and maintain administrative procedures for

the selection, administration, monitoring, and evaluation of Native

American employment and training programs authorized under this Act.

We will utilize staff who have a particular competence in this field

to administer these programs. (WIA sec. 166(h).)

Sec. 668.130 What obligation do we have to consult with the INA

grantee community in developing rules, regulations, and standards of

accountability for INA programs?

We will consult with the Native American grantee community as a

full partner in developing policies for the INA programs. We will

actively seek and consider the views of all INA grantees, and will

discuss options with the grantee community prior to establishing

policies and program regulations. The primary consultation vehicle is

the Native American Employment and Training Council. (WIA sec.

166(h)(2).)

Sec. 668.140 What WIA regulations apply to the INA program?

(a) The regulations found in this subpart.

(b) The general administrative requirements found in 20 CFR part

667, including the regulations concerning Complaints, Investigations

and Hearings found at 20 CFR part 667, subpart E through subpart H.

(c) The Department's regulations codifying the common rules

implementing Office of Management and Budget (OMB) Circulars which

generally apply to Federal programs carried out by Indian tribal

governments and nonprofit organizations, at 29 CFR parts 95, 96, 97,

and 99 as applicable.

(d) The Department's regulations at 29 CFR part 37, which implement

the nondiscrimination provisions of WIA section 188, apply to

recipients of financial assistance under WIA section 166.

Sec. 668.150 What definitions apply to terms used in the regulations

in this part?

In addition to the definitions found in WIA sections 101 and 166

and 20 CFR 660.300, the following definitions apply:

DINAP means the Division of Indian and Native American Programs

within the Employment and Training Administration of the Department.

Governing body means a body of representatives who are duly

elected, appointed by duly elected officials, or selected according to

traditional tribal means. A governing body must have the authority to

provide services to and to enter into grants on behalf of the

organization that selected or designated it.

Grant Officer means a Department of Labor official authorized to

obligate Federal funds. Indian or Native American (INA) Grantee means

an entity which is formally designated under subpart B of this part to

operate an INA program and which has a grant agreement under

Sec. 668.292.

NEW means the Native Employment Works Program, the tribal work

program authorized under section 412(a)(2) of the Social Security Act,

as amended by the Personal Responsibility and Work Opportunity

Reconciliation Act (Public Law 104-193).

Underemployed means an individual who is working part time but

desires full time employment, or who is working in employment not

commensurate with the individual's demonstrated level of educational

and/or skill achievement.

Subpart B--Service Delivery Systems Applicable to Section 166

Programs

Sec. 668.200 What are the requirements for designation as an ``Indian

or Native American (INA) grantee''?

(a) To be designated as an INA grantee, an entity must have:

(1) A legal status as a government or as an agency of a government,

private non-profit corporation, or a consortium which contains at least

one of these entities;

(2) The ability to administer INA program funds, as defined at

Sec. 668.220; and

(3) A new (non-incumbent) entity must have a population within the

designated geographic service area which would provide funding under

the funding formula found at Sec. 668.296(b) in the amount of at least

$100,000, including any amounts received for supplemental youth

services under the funding formula at Sec. 668.440(a). Incumbent

grantees which do not meet this dollar threshold for Program Year (PY)

2000 and beyond will be grandfathered in. We will make an exception for

grantees wishing to participate in the demonstration program under

Public Law 102-477 if all resources to be consolidated under the Public

Law 102-477 plan total at least $100,000, with at least $20,000 derived

from section 166 funds as determined by the most recent Census data.

Exceptions to this $20,000 limit may be made for those entities which

are close to the limit and which have demonstrated the capacity to

administer Federal funds and operate a successful employment and

training program.

(b) To be designated as a Native American grantee, a consortium or

its members must meet the requirements of paragraph (a) of this section

and must:

(1) Be in close proximity to one another, but they may operate in

more than one State;

(2) Have an administrative unit legally authorized to run the

program and to commit the other members to contracts, grants, and other

legally-binding agreements; and

(3) Be jointly and individually responsible for the actions and

obligations of the consortium, including debts.

(c) Entities potentially eligible for designation under paragraph

(a)(1) or (b)(1) of this section are:

(1) Federally-recognized Indian tribes;

(2) Tribal organizations, as defined in 25 U.S.C. 450b;

(3) Alaska Native-controlled organizations representing regional or

village areas, as defined in the Alaska Native Claims Settlement Act;

(4) Native Hawaiian-controlled entities;

(5) Native American-controlled organizations serving Indians; and

(6) Consortia of eligible entities which individually meets the

legal requirements for a consortium described in paragraph (c) of this

section.

(d) Under WIA section 166(d)(2)(B), individuals who were eligible

to participate under section 401 of JTPA on August 6, 1998, remain

eligible to participate under section 166 of WIA. State-recognized

tribal organizations serving such individuals are considered to be

``Native American controlled'' for WIA section 166 purposes.

Sec. 668.210 What priority for designation is given to eligible

organizations?

(a) Federally-recognized Indian tribes, Alaska Native entities, or

consortia that include a tribe or entity will have the highest priority

for designation. To be designated, the organizations must meet the

requirements in this subpart. These organizations will be designated

for those geographic areas and/or populations over which they have

legal jurisdiction. (WIA sec. 166(c)(1).)

(b) If we decide not to designate Indian tribes or Alaska Native

entities to serve their service areas, we will enter into arrangements

to provide services with entities which the tribes or Alaska Native

entities involved approve.

(c) In geographic areas not served by Indian tribes or Alaska

Native entities, entities with a Native American-controlled governing

body and which are representative of the Native American community or

communities involved will have priority for designation.

Sec. 668.220 What is meant by the ``ability to administer funds'' for

designation purposes?

An organization has the ``ability to administer funds'' if it:

(a) Is in compliance with Departmental debt management procedures,

if applicable;

(b) Has not been found guilty of fraud or criminal activity which

would affect the entity's ability to safeguard Federal funds or deliver

program services;

(c) Can demonstrate that it has or can acquire the necessary

program and financial management personnel to safeguard Federal funds

and effectively deliver program services; and

(d) Can demonstrate that it has successfully carried out, or has

the capacity to successfully carry out activities that will strengthen

the ability of the individuals served to obtain or retain unsubsidized

employment.

Sec. 668.230 How will we determine an entity's ``ability to administer

funds''?

(a) Before determining which entity to designate for a particular

service area, we will conduct a review of the entity's ability to

administer funds.

(b) The review for an entity that has served as a grantee in either

of the two designation periods before the one under consideration, also

will consider the extent of compliance with the WIA regulations or the

JTPA regulations at 20 CFR part 632. Evidence of the ability to

administer funds may be established by a satisfactory Federal audit

record. It may also be established by a recent record showing

substantial compliance with Federal record keeping, reporting, program

performance standards, or similar standards imposed on grantees by this

or other public sector supported programs.

(c) For other entities, the review includes the experience of the

entity's management in administering funds for services to Native

American people. This review also includes an assessment of the

relationship between the entity and the Native American community or

communities to be served.

Sec. 668.240 What is the process for applying for designation as an

INA grantee?

(a) Every entity seeking designation must submit a Notice of Intent

(NOI) which complies with the requirements of the Solicitation for

Grant Application (SGA). An SGA will be issued every two years,

covering all areas except for those for which competition is waived for

the incumbent grantee under WIA section 166(c)(2).

(b) NOI's must be submitted to the Chief of DINAP, bearing a U.S.

Postal Service postmark indicating its submission no later than October

1st of the year which precedes the first year of a new designation

cycle (unless the SGA provides a later date). For NOI's received after

October 1, only a timely official U.S. Postal Service postmark is

acceptable as proof of timely submission. Dates indicating submission

by private express delivery services or metered mail are unacceptable

as proof of the timely submission of designation documents.

(c) NOI's must include the following:

(1) Documentation of the legal status of the entity, as described

in Sec. 668.200(a)(1);

(2) A Standard Form (SF) 424b;

(3) The assurances required by 29 CFR 37.20;

(4) A specific description, by State, county, reservation or

similar area, or service population, of the geographic area for which

the entity requests designation;

(5) A brief summary of the employment and training or human

resource development programs serving Native Americans that the entity

currently operates or has operated within the previous two-year period;

(6) A description of the planning process used by the entity,

including the involvement of the governing body and local employers;

(7) Evidence to establish an entity's ability to administer funds

under Secs. 668.220 through 668.230.

Sec. 668.250 What happens if two or more entities apply for the same

area?

(a) Every two years, unless there has been a waiver of competition

for the area, we issue a Solicitation for Grant Application (SGA)

seeking applicants for INA program grants.

(b) If two or more entities apply for grants for the same service

area, or for overlapping service areas, and a waiver of competition

under WIA section 166(c)(2) is not granted to the incumbent grantee,

the following additional procedures apply:

(1) The Grant Officer will follow the regulations for priority

designation at Sec. 668.210.

(2) If no applicant is entitled to priority designation, DINAP will

inform each entity which submitted a NOI, including the incumbent

grantee, in writing, of all the competing Notices of Intent no later

than November 15 of the year the NOI's are received.

(3) Each entity will have an opportunity to describe its service

plan, and may submit additional information addressing the requirements

of Sec. 668.240(c) or such other information as the applicant

determines is appropriate. Revised Notices must be received or contain

an official U.S. Postal Service postmark, no later than January 5th

(unless a later date is provided in DINAP's information notice).

(4) The Grant Officer selects the entity that demonstrates the

ability to produce the best outcomes for its customers.

Sec. 668.260 How are INA grantees designated?

(a) On March 1 of each designation year, we designate or

conditionally designate Native American grantees for the coming two

program years. The Grant Officer informs, in writing, each entity which

submitted a Notice of Intent that the entity has been:

(1) Designated;

(2) Conditionally designated;

(3) Designated for only a portion of its requested area or

population; or

(4) Denied designation.

(b) Designated Native American entities must ensure and provide

evidence to DOL that a system is in place to afford all members of the

eligible population within their service area an equitable opportunity

to receive employment and training activities and services.

Sec. 668.270 What appeal rights are available to entities that are

denied designation?

Any entity that is denied designation in whole or in part for the

area or population that it requested may appeal the denial to the

Office of the Administrative Law Judges using the procedures at 20 CFR

667.800 or the alternative dispute resolution procedures at 20 CFR

667.840. The Grant Officer will provide an entity whose request for

designation was denied, in whole or in part, with a copy of the appeal

procedures.

Sec. 668.280 Are there any other ways in which an entity may be

designated as an INA grantee?

Yes, for an area which would otherwise go unserved. The Grant

Officer may designate an entity, which has not submitted an NOI, but

which meets the qualifications for designation, to serve the particular

geographic area. Under such circumstances, DINAP will seek the views of

Native American leaders in the area involved about the decision to

designate the entity to serve that community. DINAP will inform the

Grant Officer of their views. The Grant Officer will accommodate their

views to the extent possible.

Sec. 668.290 Can an INA grantee's designation be terminated?

(a) Yes, the Grant Officer can terminate a grantee's designation

for cause, or the Secretary or another DOL

official confirmed by the Senate can terminate a grantee's designation

in emergency circumstances where termination is necessary to protect

the integrity of Federal funds or ensure the proper operation of the

program. (WIA sec. 184(e).)

(b) The Grant Officer may terminate a grantee's designation for

cause only if there is a substantial or persistent violation of the

requirements in the Act or the WIA regulations. The grantee must be

provided with written notice 60 days before termination, stating the

specific reasons why termination is proposed. The appeal procedures at

20 CFR 667.800 apply.

(c) The Secretary must give a grantee terminated in emergency

circumstances prompt notice of the termination and an opportunity for a

hearing within 30 days of the termination.

Sec. 668.292 How does a designated entity become an INA grantee?

A designated entity becomes a grantee on the effective date of an

executed grant agreement, signed by the authorized official of the

grantee organization and the Grant Officer. The grant agreement

includes a set of certifications and assurances that the grantee will

comply with the terms of the Act, the WIA regulations, and other

appropriate requirements. Funds are released to the grantee upon

approval of the required planning documents, as described in

Secs. 668.710 through 668.740.

Sec. 668.294 Do we have to designate an INA grantee for every part of

the country?

No, beginning with the PY 2000 grant awards, if there are no

entities meeting the requirements for designation in a particular area,

or willing to serve that area, we will not allocate funds for that

service area. The funds allocated to that area will be distributed to

the remaining INA grantees, or used for other program purposes such as

technical assistance and training (TAT). Unawarded funds used for

technical assistance and training are in addition to, and not subject

to the limitations on, amounts reserved under Sec. 668.296(e). Areas

which are unserved by the INA program may be restored during a

subsequent designation cycle, when and if a current grantee or other

eligible entity applies for and is designated to serve that area.

Sec. 668.296 How are WIA funds allocated to INA grantees?

(a) Except for reserved funds described in paragraph (e) of this

section and funds used for program purposes under Sec. 668.294, all

funds available for WIA section 166(d)(2)(A)(i) comprehensive workforce

investment services program at the beginning of a Program Year will be

allocated to Native American grantees for their designated geographic

service areas.

(b) Each INA grantee will receive the sum of the funds calculated

under the following formula:

(1) One-quarter of the funds available will be allocated on the

basis of the number of unemployed Native American persons in the

grantee's designated INA service area(s) compared to all such persons

in all such areas in the United States.

(2) Three-quarters of the funds available will be allocated on the

basis of the number of Native American persons in poverty in the

grantee's designated INA service area(s) as compared to all such

persons in all such areas in the United States.

(3) The data and definitions used to implement these formulas is

provided by the U.S. Bureau of the Census.

(c) In years immediately following the use of new data in the

formula described in paragraph (b) of this section, based upon criteria

to be described in the SGA, we may utilize a hold harmless factor to

reduce the disruption in grantee services which would otherwise result

from changes in funding levels. This factor will be determined in

consultation with the grantee community and the Native American

Employment and Training Council.

(d) We may reallocate funds from one INA grantee to another if a

grantee is unable to serve its area for any reason, such as audit or

debt problems, criminal activity, internal (political) strife, or lack

of ability or interest. Funds may also be reallocated if a grantee has

carry-in excess of 20 percent of the total funds available to it.

Carry-in amounts greater than 20 percent but less than 25 percent of

total funds available may be allowed under an approved waiver issued by

DINAP.

(e) We may reserve up to one percent (1 percent) of the funds

appropriated under WIA section 166(d)(2)(A)(i) for any Program Year for

TAT purposes. Technical assistance will be provided in consultation

with the Native American Employment and Training Council.

Subpart C--Services to Customers

Sec. 668.300 Who is eligible to receive services under the INA

program?

(a) A person is eligible to receive services under the INA program

if that person is:

(1) An Indian, as determined by a policy of the Native American

grantee. The grantee's definition must at least include anyone who is a

member of a Federally-recognized tribe; or

(2) An Alaska Native, as defined in section 3(b) of the Alaska

Native Claims Settlement Act (ANCSA), 43 U.S.C. 1602(b); or

(3) A Native Hawaiian, as defined in WIA section 166(b)(3).

(b) The person must also be any one of the following:

(1) Unemployed; or

(2) Underemployed, as defined in Sec. 668.150; or

(3) A low-income individual, as defined in WIA section 101(25); or

(4) The recipient of a bona fide lay-off notice which has taken

effect in the last six months or will take effect in the following six

month period, who is unlikely to return to a previous industry or

occupation, and who is in need of retraining for either employment with

another employer or for job retention with the current employer; or

(5) An individual who is employed, but is determined by the grantee

to be in need of employment and training services to obtain or retain

employment that allows for self-sufficiency.

(c) If applicable, male applicants must also register or be

registered for the Selective Service.

(d) For purposes of determining whether a person is a low-income

individual under paragraph (b)(3) of this section, we will issue

guidance for the determination of family income. (WIA sec. 189(h).)

Sec. 668.340 What are INA grantee allowable activities?

(a) The INA grantee may provide any services consistent with the

purposes of this section that are necessary to meet the needs of Native

Americans preparing to enter, reenter, or retain unsubsidized

employment. (WIA sec. 166(d)(1)(B).) Comprehensive workforce investment

activities authorized under WIA section 166(d)(2) include:

(b) Core services, which must be delivered in partnership with the

One-Stop delivery system, include:

(1) Outreach;

(2) Intake;

(3) Orientation to services available;

(4) Initial assessment of skill levels, aptitudes, abilities and

supportive service needs;

(5) Eligibility certification;

(6) Job Search and placement assistance;

(7) Career counseling;

(8) Provision of employment statistics information and local,

regional, and national Labor Market Information;

(9) Provision of information about filing of Unemployment Insurance

claims;

(10) Assistance in establishing eligibility for Welfare-to-Work

programs;

(11) Assistance in establishing eligibility for financial

assistance for training;

(12) Provision of information about supportive services;

(13) Provision of performance and cost information relating to

training providers and training services; and

(14) Follow-up services.

(c) Allowable intensive services which include:

(1) Comprehensive and specialized testing and assessment;

(2) Development of an individual employment plan;

(3) Group counseling;

(4) Individual counseling and career planning;

(5) Case Management for seeking training services;

(6) Short term pre-vocational services;

(7) Work experience in the public or private sector;

(8) Tryout employment;

(9) Dropout prevention activities;

(10) Supportive services; and

(11) Other services identified in the approved Two Year Plan.

(d) Allowable training services which include:

(1) Occupational skill training;

(2) On-the-job training;

(3) Programs that combine workplace training with related

instruction, which may include cooperative education programs;

(4) Training programs operated by the private sector;

(5) Skill upgrading and retraining;

(6) Entrepreneurial and small business development technical

assistance and training;

(7) Job readiness training;

(8) Adult basic education, GED attainment, literacy training, and

English language training, provided alone or in combination with

training or intensive services described paragraphs (c)(1) through (11)

and (d)(1) through (10) of this section;

(9) Customized training conducted with a commitment by an employer

or group of employers to employ an individual upon successful

completion of training; and

(10) Educational and tuition assistance.

(e) Allowable activities specifically designed for youth are

identified in section 129 of the Act and include:

(1) Improving educational and skill competencies;

(2) Adult mentoring;

(3) Training opportunities;

(4) Supportive services, as defined in WIA section 101(46);

(5) Incentive programs for recognition and achievement;

(6) Opportunities for leadership development, decision-making,

citizenship and community service;

(7) Preparation for postsecondary education, academic and

occupational learning, unsubsidized employment opportunities, and other

effective connections to intermediaries with strong links to the job

market and local and regional employers;

(8) Tutoring, study skills training, and other drop-out prevention

strategies;

(9) Alternative secondary school services;

(10) Summer employment opportunities that are directly linked to

academic and occupational learning;

(11) Paid and unpaid work experiences, including internships and

job shadowing;

(12) Occupational skill training;

(13) Leadership development opportunities, as defined in 20 CFR

664.420;

(14) Follow-up services, as defined in 20 CFR 664.450;

(15) Comprehensive guidance and counseling, which may include drug

and alcohol abuse counseling and referral; and

(16) Information and referral.

(f) In addition, allowable activities include job development and

employment outreach, including:

(1) Support of the Tribal Employment Rights Office (TERO) program;

(2) Negotiation with employers to encourage them to train and hire

participants;

(3) Establishment of linkages with other service providers to aid

program participants;

(4) Establishment of management training programs to support tribal

administration or enterprises; and

(5) Establishment of linkages with remedial education, such as

Adult Basic Education (ABE), basic literacy training, and English-as-a-

second-language (ESL) training programs, as necessary.

(g) Participants may be enrolled in more than one activity at a

time and may be sequentially enrolled in multiple activities.

(h) INA grantees may provide any services which may be carried out

by fund recipients under any provisions of the Act. (WIA sec. 166(d).)

(i) In addition, INA grantees must develop programs which

contribute to occupational development, upward mobility, development of

new careers, and opportunities for nontraditional employment. (WIA sec.

195(1).)

Sec. 668.350 Are there any restrictions on allowable activities?

(a) All occupational training must be for occupations for which

there are employment opportunities in the local area or another area to

which the participant is willing to relocate. (WIA sec.

134(d)(4)(A)(iii).)

(b) INA grantees must provide OJT services consistent with the

definition provided in WIA section 101(31) and other limitations in the

Act. Individuals in OJT must:

(1) Be compensated at the same rates, including periodic increases,

as trainees or employees who are similarly situated in similar

occupations by the same employer and who have similar training,

experience, and skills (WIA sec. 181(a)(1)); and

(2) Be provided benefits and working conditions at the same level

and to the same extent as other trainees or employees working a similar

length of time and doing the same type of work. (WIA sec. 181(b)(5).)

(c) In addition, OJT contracts under this title must not be entered

into with employers who have:

(1) Received payments under previous contracts and have exhibited a

pattern of failing to provide OJT participants with continued, long-

term employment as regular employees with wages and employment benefits

and working conditions at the same level and to the same extent as

other employees working a similar length of time and doing the same

work; or

(2) Who have violated paragraphs (b)(1) and/or (2) of this section.

(WIA sec. 195(4).)

(d) INA grantees are prohibited from using funds to encourage the

relocation of a business, as described in WIA section 181(d) and 20 CFR

667.268.

(e) INA grantees must only use WIA funds for activities which are

in addition to those that would otherwise be available to the Native

American population in the area in the absence of such funds. (WIA sec.

195(2).)

(f) INA grantees must not spend funds on activities that displace

currently employed individuals, impair existing contracts for services,

or in any way affect union organizing.

(g) Under 20 CFR 667.266, sectarian activities involving WIA

financial assistance or participants are limited in accordance with the

provisions of 29 CFR 37.6(f). (WIA sec. 181(b).)

Sec. 668.360 What is the role of INA grantees in the One-Stop system?

(a) In those local workforce investment areas where an INA grantee

conducts field operations or provides substantial services, the INA

grantee is a required partner in the local One-Stop delivery system and

is subject to the provisions relating to such partners described in 20

CFR part 662. Consistent with those provisions, a Memorandum of

Understanding (MOU) between the INA grantee and the Local Board over

the operation of the One-Stop Center(s) in the Local Board's workforce

investment area also must

be executed. Where the Local Board is an alternative entity under 20

CFR 661.330, the INA grantee must negotiate with the alternative entity

on the terms of its MOU and the scope of its on-going role in the local

workforce investment system, as specified in 20 CFR 661.310(b)(2). In

local areas with a large concentration of potentially eligible INA

participants, which are in an INA grantee's service area but in which

the grantee does not conduct operations or provide substantial

services, the INA grantee should encourage such individuals to

participate in the One-Stop system in that area in order to receive WIA

services.

(b) At a minimum, the MOU must contain provisions related to:

(1) The services to be provided through the One-Stop Service

System;

(2) The methods for referral of individuals between the One-Stop

operator and the INA grantee which take into account the services

provided by the INA grantee and the other One-Stop partners;

(3) The exchange of information on the services available and

accessible through the One-Stop system and the INA program;

(4) As necessary to provide referrals and case management services,

the exchange of information on Native American participants in the One-

Stop system and the INA program;

(5) Arrangements for the funding of services provided by the One-

Stop(s), consistent with the requirements at 20 CFR 662.280 that no

expenditures may be made with INA program funds for individuals who are

not eligible or for services not authorized under this part.

(c) The INA grantee's Two Year Plan must describe the efforts the

grantee has made to negotiate MOU's consistent with paragraph (b) of

this section, for each planning cycle during which Local Boards are

operating under the terms of WIA.

Sec. 668.370 What policies govern payments to participants, including

wages, training allowances or stipends, or direct payments for

supportive services?

(a) INA grantees may pay training allowances or stipends to

participants for their successful participation in and completion of

education or training services (except such allowance may not be

provided to participants in OJT). Allowances or stipends may not exceed

the Federal or State minimum wage, whichever is higher.

(b) INA grantees may not pay a participant in a training activity

when the person fails to participate without good cause.

(c) If a participant in a WIA-funded activity, including

participants in OJT, is involved in an employer-employee relationship,

that participant must be paid wages and fringe benefits at the same

rates as trainees or employees who have similar training, experience

and skills and which are not less than the higher of the applicable

Federal, State or local minimum wage. (WIA sec. 181(a)(1).)

(d) In accordance with the policy described in the two-year plan,

INA grantees may pay incentive bonuses to participants who meet or

exceed individual employability or training goals established in

writing in the individual employment plan.

(e) INA grantees must comply with other restrictions listed in WIA

sections 181 through 199, which apply to all programs funded under

title I of WIA.

(f) INA grantees must comply with the provisions on labor standards

in WIA section 181(b).

Sec. 668.380 What will we do to strengthen the capacity of INA

grantees to deliver effective services?

We will provide appropriate TAT, as necessary, to INA grantees.

This TAT will assist INA grantees to improve program performance and

enhance services to the target population(s), as resources permit. (WIA

sec. 166(h)(5).)

Subpart D--Supplemental Youth Services

Sec. 668.400 What is the purpose of the supplemental youth services

program?

The purpose of this program is to provide supplemental employment

and training and related services to Native American youth on or near

Indian reservations, or in Oklahoma, Alaska, and Hawaii. (WIA sec.

166(d)(2)(A)(ii).)

Sec. 668.410 What entities are eligible to receive supplemental youth

services funding?

Eligible recipients for supplemental youth services funding are

limited to those tribal, Alaska Native, Native Hawaiian and Oklahoma

tribal grantees funded under WIA section 166(d)(2)(A)(i), or other

grantees serving those areas and/or populations specified in

Sec. 668.400, that received funding under title II-B of the Job

Training Partnership Act, or that are designated to serve an eligible

area as specified in WIA section 166(d)(2)(A)(ii).

Sec. 668.420 What are the planning requirements for receiving

supplemental youth services funding?

Beginning with PY 2000, eligible INA grantees must describe the

supplemental youth services which they intend to provide in their Two

Year Plan (described more fully in Secs. 668.710 and 668.720). This

Plan includes the target population the grantee intends to serve, for

example, drop-outs, juvenile offenders, and/or college students. It

also includes the performance measures/standards to be utilized to

measure program progress.

Sec. 668.430 What individuals are eligible to receive supplemental

youth services?

(a) Participants in supplemental youth services activities must be

Native Americans, as determined by the INA grantee according to

Sec. 668.300(a), and must meet the definition of Eligible Youth, as

defined in WIA section 101(13).

(b)Youth participants must be low-income individuals, except that

not more than five percent (5%) who do not meet the minimum income

criteria, may be considered eligible youth if they meet one or more of

the following categories:

(1) School dropouts;

(2) Basic skills deficient as defined in WIA section 101(4);

(3) Have educational attainment that is one or more grade levels

below the grade level appropriate to their age group;

(4) Pregnant or parenting;

(5) Have disabilities, including learning disabilities;

(6) Homeless or runaway youth;

(7) Offenders; or

(8) Other eligible youth who face serious barriers to employment as

identified by the grantee in its Plan. (WIA sec. 129(c)(5).)

Sec. 668.440 How is funding for supplemental youth services

determined?

(a) Beginning with PY 2000, supplemental youth funding will be

allocated to eligible INA grantees on the basis of the relative number

of Native American youth between the ages of 14 and 21, inclusive, in

the grantee's designated INA service area as compared to the number of

Native American youth in other eligible INA service areas. We reserve

the right to redetermine this youth funding stream in future program

years, in consultation with the Native American Employment and Training

Council, as program experience warrants and as appropriate data become

available.

(b) The data used to implement this formula is provided by the U.S.

Bureau of the Census.

(c) The hold harmless factor described in Sec. 668.296(c) also

applies to supplemental youth services funding. This factor also will

be determined in consultation with the grantee

community and the Native American Employment and Training Council.

(d) The reallocation provisions of Sec. 668.296(d) also apply to

supplemental youth services funding.

(e) Any supplemental youth services funds not allotted to a grantee

or refused by a grantee may be used for the purposes outlined in

Sec. 668.296(e), as described in Sec. 668.294. Any such funds are in

addition to, and not subject to the limitations on, amounts reserved

under Sec. 668.296(e).

Sec. 668.450 How will supplemental youth services be provided?

(a) INA grantees may offer supplemental services to youth

throughout the school year, during the summer vacation, and/or during

other breaks during the school year at their discretion;

(b) We encourage INA grantees to work with Local Educational

Agencies to provide academic credit for youth activities whenever

possible;

(c) INA grantees may provide participating youth with the

activities listed in 20 CFR 668.340(e).

Sec. 668.460 Are there performance measures and standards applicable

to the supplemental youth services program?

Yes, WIA section 166(e)(5) requires that the program plan contain a

description of the performance measures to be used to assess the

performance of grantees in carrying out the activities assisted under

this section. We will develop specific indicators of performance and

levels of performance for supplemental youth services activities in

partnership with the Native American Employment and Training Council,

and will transmit them to INA grantees as an administrative issuance.

Subpart E--Services to Communities

Sec. 668.500 What services may INA grantees provide to or for

employers under section 166?

(a) INA grantees may provide a variety of services to employers in

their areas. These services may include:

(1) Workforce planning which involves the recruitment of current or

potential program participants, including job restructuring services;

(2) Recruitment and assessment of potential employees, with

priority given to potential employees who are or who might become

eligible for program services;

(3) Pre-employment training;

(4) Customized training;

(5) On-the-Job training (OJT);

(6) Post-employment services, including training and support

services to encourage job retention and upgrading;

(7) Work experience for public or private sector work sites;

(8) Other innovative forms of worksite training.

(b) In addition to the services listed in paragraph (a) of this

section, other grantee-determined services (as described in the

grantee's Two Year Plan) which are intended to assist eligible

participants to obtain or retain employment may also be provided to or

for employers.

Sec. 668.510 What services may INA grantees provide to the community

at large under section 166?

(a) INA grantees may provide services to the Native American

communities in their designated service areas by engaging in program

development and service delivery activities which:

(1) Strengthen the capacity of Native American-controlled

institutions to provide education and work-based learning services to

Native American youth and adults, whether directly or through other

Native American institutions such as tribal colleges;

(2) Increase the community's capacity to deliver supportive

services, such as child care, transportation, housing, health, and

similar services needed by clients to obtain and retain employment;

(3) Use program participants engaged in education, training, work

experience, or similar activities to further the economic and social

development of Native American communities in accordance with the goals

and values of those communities; and

(4) Engage in other community-building activities described in the

INA grantee's Two Year Plan.

(b) INA grantees should develop their Two Year Plan in conjunction

with, and in support of, strategic tribal planning and community

development goals.

Sec. 668.520 Must INA grantees give preference to Indian/Native

American entities in the selection of contractors or service providers?

Yes, INA grantees must give as much preference as possible to

Indian organizations and to Indian-owned economic enterprises, as

defined in section 3 of the Indian Financing Act of 1974 (25 U.S.C.

1452), when awarding any contract or subgrant.

Sec. 668.530 What rules govern the issuance of contracts and/or

subgrants?

In general, INA grantees must follow the rules of OMB Circulars A-

102 (for tribes) or A-110 (for private non-profits) when awarding

contracts and/or subgrants under WIA section 166. The common rules

implementing those circulars are codified for DOL-funded programs at 29

CFR part 97 (A-102) or 29 CFR part 95 (A-110), and covered in the WIA

regulations at 20 CFR 667.200. These rules do not apply to OJT contract

awards.

Subpart F--Accountability for Services and Expenditures

Sec. 668.600 To whom is the INA grantee accountable for the provision

of services and the expenditure of INA funds?

(a) The INA grantee is responsible to the Native American community

to be served by INA funds.

(b) The INA grantee is also responsible to the Department of Labor,

which is charged by law with ensuring that all WIA funds are expended:

(1) According to applicable laws and regulations;

(2) For the benefit of the identified Native American client group;

and

(3) For the purposes approved in the grantee's plan and signed

grant document.

Sec. 668.610 How is this accountability documented and fulfilled?

(a) Each INA grantee must establish its own internal policies and

procedures to ensure accountability to the INA grantee's governing

body, as the representative of the Native American community(ies)

served by the INA program. At a minimum, these policies and procedures

must provide a system for governing body review and oversight of

program plans and measures and standards for program performance.

(b) Accountability to the Department is accomplished in part

through on-site program reviews (monitoring), which strengthen the INA

grantee's capability to deliver effective services and protect the

integrity of Federal funds.

(c) In addition to audit information, as described at Sec. 668.850

and program reviews, accountability to the Department is documented and

fulfilled by the submission of reports. For the purposes of report

submission, a postmark or date indicating receipt by a private express

delivery service is acceptable proof of timely submission. These report

requirements are as follows:

(1) Each INA grantee must submit an annual report on program

participants and activities. This report must be received no later than

90 days after the end of the Program Year, and may be combined with the

report on program expenditures. The reporting format is developed by

DINAP, in consultation with the Native American Advisory Council, and

published in the Federal Register.

(2) Each INA grantee must submit an annual report on program

expenditures. This report must be received no later than 90 days after

the end of the Program Year, and may be combined

with the report on program participants and activities.

(3) INA grantees are encouraged, but not required, to submit a

descriptive narrative with their annual reports describing the barriers

to successful plan implementation they have encountered. This narrative

should also discuss program successes and other notable occurrences

that effected the INA grantee's overall performance that year.

(4) Each INA grantee may be required to submit interim reports on

program participants and activities and/or program expenditures during

the Program Year. Interim reports must be received no later than 45

days after the end of the reporting period.

Sec. 668.620 What performance measures are in place for the INA

program?

Indicators of performance measures and levels of performance in use

for INA program will be those indicators and standards proposed in

individual grantee plans and approved by us, in accordance with

guidelines we will develop in consultation with INA grantees under WIA

section 166(h)(2)(A).

Sec. 668.630 What are the requirements for preventing fraud and abuse

under section 166?

(a) Each INA grantee must implement program and financial

management procedures to prevent fraud and abuse. Such procedures must

include a process which enables the grantee to take action against

contractors or subgrantees to prevent any misuse of funds. (WIA sec.

184.)

(b) Each INA grantee must have rules to prevent conflict of

interest by its governing body. These conflict of interest rules must

include a rule prohibiting any member of any governing body or council

associated with the INA grantee from voting on any matter which would

provide a direct financial benefit to that member, or to a member of

his or her immediate family, in accordance with 20 CFR 667.200(a)(4)

and 29 CFR 97.36(b) or 29 CFR 95.42.

(c) Officers or agents of the INA grantee must not solicit or

personally accept gratuities, favors, or anything of monetary value

from any actual or potential contractor, subgrantee, vendor or

participant. This rule must also apply to officers or agents of the

grantee's contractors and/or subgrantees. This prohibition does not

apply to:

(1) Any rebate, discount or similar incentive provided by a vendor

to its customers as a regular feature of its business;

(2) Items of nominal monetary value distributed consistent with the

cultural practices of the Native American community served by the

grantee.

(d) No person who selects program participants or authorizes the

services provided to them may select or authorize services to any

participant who is such a person's husband, wife, father, mother,

brother, sister, son, or daughter unless:

(1)(i) The participant involved is a low income individual; or

(ii) The community in which the participant resides has a

population of less than 1,000 Native American people; and

(2) The INA grantee has adopted and implemented the policy

described in the Two Year Plan to prevent favoritism on behalf of such

relatives.

(e) INA grantees are subject to the provisions of 41 U.S.C. 53

relating to kickbacks.

(f) No assistance provided under this Act may involve political

activities. (WIA sec. 195(6).)

(g) INA grantees may not use funds under this Act for lobbying, as

provided in 29 CFR part 93.

(h) The provisions of 18 U.S.C. 665 and 666 prohibiting

embezzlement apply to programs under WIA.

(i) Recipients of financial assistance under WIA section 168 are

prohibited from discriminatory practices as outlined at WIA section

188, and the regulations implementing WIA section 188, at 29 CFR part

37. However, this does not affect the legal requirement that all INA

participants be Native American. Also, INA grantees are not obligated

to serve populations other than those for which they were designated.

Sec. 668.640 What grievance systems must a section 166 program

provide?

INA grantees must establish grievance procedures consistent with

the requirements of WIA section 181(c) and 20 CFR 667.600.

Sec. 668.650 Can INA grantees exclude segments of the eligible

population?

(a) No, INA grantees cannot exclude segments of the eligible

population. INA grantees must document in their Two Year Plan that a

system is in place to afford all members of the eligible population

within the service area for which the grantee was designated an

equitable opportunity to receive WIA services and activities.

(b) Nothing in this section restricts the ability of INA grantees

to target subgroups of the eligible population (for example, the

disabled, substance abusers, TANF recipients, or similar categories),

as outlined in an approved Two Year Plan. However, it is unlawful to

target services to subgroups on grounds prohibited by WIA section 188

and 29 CFR part 37, including tribal affilitation (which is considered

national origin). Outreach efforts, on the other hand, may be targeted

to any subgroups.

Subpart G--Section 166 Planning/Funding Process

Sec. 668.700 What process must an INA grantee use to plan its

employment and training services?

(a) An INA grantee may utilize the planning procedures it uses to

plan other activities and services.

(b) However, in the process of preparing its Two Year Plan for

Native American WIA services, the INA grantee must consult with:

(1) Customers or prospective customers of such services;

(2) Prospective employers of program participants or their

representatives;

(3) Service providers, including local educational agencies, which

can provide services which support or are complementary to the

grantee's own services; and

(4) Tribal or other community officials responsible for the

development and administration of strategic community development

efforts.

Sec. 668.710 What planning documents must an INA grantee submit?

Each grantee receiving funds under WIA section 166 must submit to

DINAP a comprehensive services plan and a projection of participant

services and expenditures covering the two-year planning cycle. We

will, in consultation with the Native American Advisory Council, issue

budget and planning instructions which grantees must use when preparing

their plan.

Sec. 668.720 What information must these planning documents contain?

(a) The comprehensive services plan must cover the two Program

Years included within a designation cycle. According to planning

instructions issued by the Department, the comprehensive services plan

must describe in narrative form:

(1) The specific goals of the INA grantee's program for the two

Program Years involved;

(2) The method the INA grantee will use to target its services to

specific segments of its service population;

(3) The array of services which the INA grantee intends to make

available;

(4) The system the INA grantee will use to be accountable for the

results of its program services. Such results must be judged in terms

of the outcomes for individual participants and/or the benefits the

program provides to the Native American community(ies) which the INA

grantee serves. Plans must include the performance information required

by Sec. 668.620;

(5) The ways in which the INA grantee will seek to integrate or

coordinate and ensure nonduplication of its employment and training

services with:

(i) The One-Stop delivery system in its local workforce investment

area, including a description of any MOU's which affect the grantee's

participation;

(ii) Other services provided by Local Workforce Investment Boards;

(iii) Other program operators;

(iv) Other services available within the grantee organization; and

(v) Other services which are available to Native Americans in the

community, including planned participation in the One-Stop system.

(b) Eligible INA grantees must include in their plan narratives a

description of activities planned under the supplemental youth program,

including items described in paragraphs (a)(1) through (5) of this

section.

(c) INA grantees must be prepared to justify the amount of proposed

Administrative Costs, utilizing the definition at 20 CFR 667.220.

(d) INA grantees' plans must contain a projection of participant

services and expenditures for each Program Year, consistent with

guidance issued by the Department.

Sec. 668.730 When must these plans be submitted?

(a) The two-year plans are due at a date specified by DINAP in the

year in which the two-year designation cycle begins. We will announce

exact submission dates in the biennial planning instructions.

(b) Plans from INA grantees who are eligible for supplemental youth

services funds must include their supplemental youth plans as part of

their regular Two Year Plan.

(c) INA grantees must submit modifications for the second year

reflecting exact funding amounts, after the individual allotments have

been determined. We will announce the time for their submission, which

will be no later than June 1 prior to the beginning of the second year

of the designation cycle.

Sec. 668.740 How will we review and approve such plans?

(a) We will approve a grantee's planning documents before the date

on which funds for the program become available unless:

(1) The planning documents do not contain the information specified

in the regulations in this part and Departmental planning guidance; or

(2) The services which the INA grantee proposes are not permitted

under WIA or applicable regulations.

(b) We may approve a portion of the plan, and disapprove other

portions. The grantee also has the right to appeal the decision to the

Office of the Administrative Law Judges under the procedures at 20 CFR

667.800 or 667.840. While the INA grantee exercises its right to

appeal, the grantee must implement the approved portions of the plan.

(c) If we disapprove all or part of an INA grantee's plan, and that

disapproval is sustained in the appeal process, the INA grantee will be

given the opportunity to amend its plan so that it can be approved.

(d) If an INA grantee's plan is amended but is still disapproved,

the grantee will have the right to appeal the decision to the Offices

of the Administrative Law Judges under the procedures at 20 CFR 667.800

or 667.840.

Sec. 668.750 Under what circumstances can we or the INA grantee modify

the terms of the grantee's plan(s)?

(a) We may unilaterally modify the INA grantee's plan to add funds

or, if required by Congressional action, to reduce the amount of funds

available for expenditure.

(b) The INA grantee may request approval to modify its plan to add,

expand, delete, or diminish any service allowable under the regulations

in this part. The INA grantee may modify its plan without our approval,

unless the modification reduces the total number of participants to be

served annually under the grantee's program by a number which exceeds

25 percent of the participants previously proposed to be served, or by

25 participants, whichever is larger.

(c) We will act upon any modification within thirty (30) calendar

days of receipt of the proposed modification. In the event that further

clarification or modification is required, we may extend the thirty

(30) day time frame to conclude appropriate negotiations.

Subpart H--Administrative Requirements

Sec. 668.800 What systems must an INA grantee have in place to

administer an INA program?

(a) Each INA grantee must have a written system describing the

procedures the grantee uses for:

(1) The hiring and management of personnel paid with program funds;

(2) The acquisition and management of property purchased with

program funds;

(3) Financial management practices;

(4) A participant grievance system which meets the requirements in

section 181(c) of WIA and 20 CFR 667.600; and

(5) A participant records system.

(b) Participant records systems must include:

(1) A written or computerized record containing all the information

used to determine the person's eligibility to receive program services;

(2) The participant's signature certifying that all the eligibility

information he or she provided is true to the best of his/her

knowledge; and

(3) The information necessary to comply with all program reporting

requirements.

Sec. 668.810 What types of costs are allowable expenditures under the

INA program?

Rules relating to allowable costs under WIA are covered in 20 CFR

667.200 through 667.220.

Sec. 668.820 What rules apply to administrative costs under the INA

program?

The definition and treatment of administrative costs are covered in

20 CFR 667.210(b) and 667.220.

Sec. 668.825 Does the WIA administrative cost limit for States and

local areas apply to section 166 grants?

No, under 20 CFR 667.210(b), limits on administrative costs for

section 166 grants will be negotiated with the grantee and identified

in the grant award document.

Sec. 668.830 How should INA program grantees classify costs?

Cost classification is covered in the WIA regulations at 20 CFR

667.200 through 667.220. For purposes of the INA program, program costs

also include costs associated with other activities such as Tribal

Employment Rights Office (TERO), and supportive services, as defined in

WIA section 101(46).

Sec. 668.840 What cost principles apply to INA funds?

The cost principles described in OMB Circulars A-87 (for tribal

governments),

A-122 (for private non-profits), and A-21 (for educational

institutions), and the regulations at 20 CFR 667.200(c), apply to INA

grantees, depending on the nature of the grantee organization.

Sec. 668.850 What audit requirements apply to INA grants?

The audit requirements established under the Department's

regulations at 29 CFR part 99, which implement OMB Circular A-133,

apply to all Native American WIA grants. These regulations, for all of

WIA title I, are cited at 20 CFR 667.200(b). Audit resolution

procedures are covered at 20 CFR 667.500 and 667.510.

Sec. 668.860 What cash management procedures apply to INA grant funds?

INA grantees must draw down funds only as they actually need them.

The U.S. Department of Treasury regulations which implement the Cash

Management Improvement Act, found at 31 CFR part 205, apply by law to

most recipients of Federal funds. Special rules may apply to those

grantees required to keep their funds in interest-bearing accounts, and

to grantees participating in the demonstration under Public Law 102-

477.

Sec. 668.870 What is ``program income'' and how is it regulated in the

INA program?

(a) Program income is defined and regulated by WIA section 195(7),

20 CFR 667.200(a)(5) and the applicable rules in 29 CFR parts 95 and

97.

(b) For grants made under this part, program income does not

include income generated by the work of a work experience participant

in an enterprise, including an enterprise owned by an Indian tribe or

Alaska Native entity, whether in the public or private sector.

(c) Program income does not include income generated by the work of

an OJT participant in an establishment under paragraph (b) of this

section.

Subpart I--Miscellaneous Program Provisions

Sec. 668.900 Does WIA provide regulatory and/or statutory waiver

authority?

Yes, WIA section 166(h)(3) permits waivers of any statutory or

regulatory requirement imposed upon INA grantees (except for the areas

cited in Sec. 668.920). Such waivers may include those necessary to

facilitate WIA support of long term community development goals.

Sec. 668.910 What information is required to document a requested

waiver?

To request a waiver, an INA grantee must submit a plan indicating

how the waiver will improve the grantee's WIA program activities. We

will provide further guidance on the waiver process, consistent with

the provisions of WIA section 166(h)(3).

Sec. 668.920 What provisions of law or regulations may not be waived?

Requirements relating to:

(a) Wage and labor standards;

(b) Worker rights;

(c) Participation and protection of workers and participants;

(d) Grievance procedures;

(e) Judicial review; and

(f) Non-discrimination may not be waived. (WIA sec. 166(h)(3)(A).)

Sec. 668.930 May INA grantees combine or consolidate their employment

and training funds?

Yes, INA grantees may consolidate their employment and training

funds under WIA with assistance received from related programs in

accordance with the provisions of the Indian Employment, Training and

Related Services Demonstration Act of 1992 (Public Law 102-477) (25

U.S.C. 3401 et seq.). Also, Federally-recognized tribes that administer

INA funds and funds provided by more than one State under other

sections of WIA title I may enter into an agreement with the Governors

to transfer the State funds to the INA program. (WIA sec. 166(f) and

(h)(6).)

Sec. 668.940 What is the role of the Native American Employment and

Training Council?

The Native American Employment and Training Council is a body

composed of representatives of the grantee community which advises the

Secretary on all aspects of Native American employment and training

program implementation. WIA section 166(h)(4) continues the Council

essentially as it is currently constituted, with the exception that all

the Council members no longer have to be Native American. However, the

nature of the consultative process remains essentially unchanged. We

continue to support the Council.