Job Training Partnership Act: Veterans' Employment Programs Under Title IV, Part C; Removal of Regulations

DEPARTMENT OF LABOR

Employment and Training Administration

20 CFR Part 626

Office of the Assistant Secretary for Veterans' Employment and Training

20 CFR Part 1005

Job Training Partnership Act: Veterans' Employment Programs Under

Title IV, Part C; Removal of Regulations

AGENCY: The Employment and Training Administration and the Office of

the Assistant Secretary for Veterans' Employment and Training, Labor.

ACTION: Final rule.

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SUMMARY: The Department of Labor is removing regulations for Veterans'

Employment Programs authorized under title IV, part C, of the Job

Training Partnership Act, administered by the Office of the Assistant

Secretary for Veterans' Employment and Training. This action is

necessitated by the diminishing number of states applying for state

formula-allocated monies, and the need to improve the delivery of

services. This action allows for the establishment of a more

competitive process to increase the effectiveness and efficiency of the

program.

EFFECTIVE DATE: May 23, 1994.

FOR FURTHER INFORMATION CONTACT:

Mr. Jeffrey C. Crandall at (202) 219-9105 (this is not a toll-free

number).

SUPPLEMENTARY INFORMATION: Pursuant to title IV, part C, of JTPA, the

Secretary of Labor conducts programs to meet the employment and

training needs of service-connected disabled veterans, veterans of the

Vietnam era, and veterans who are recently separated from military

service. The programs are administered through the Assistant Secretary

of Labor for Veterans' Employment and Training, who conducts the

programs through grants, contracts, and cooperative agreements with

public agencies and private non-profit organizations.

The Department of Labor (DOL) originally issued regulations at 20

CFR part 1005 to define specifically the manner in which the funds from

this program would be disbursed. See 54 FR 39354 (September 26, 1980);

and 48 FR 49198 (October 24, 1983). They provided for formula-based

grants to States and required matching funds. However, the number of

States applying for title IV-C formula grants has diminished and the

Department has determined that a competitive methodology would more

efficiently meet the needs of program participants. Program

administration will be greatly enhanced as the result of the

elimination of those regulations, by increasing competition and

lowering administrative costs through larger grant awards. However,

while this action removes those regulations, all specifications,

special conditions, etc., that were in effect with the award of

existing grants are binding until completion of the grant activity,

including information collection.

Part 1005 (1993 ed.) identified the process used to provide grant

funds to states for Federal training programs for veterans. A

Solicitation for Grant Applications (SGA) will be developed and

disseminated to eligible applicants for the title IV-C program. The

formula-based annual grants process is replaced by a multi-year

competitive grants process. This will result in fewer grants of greater

dollar value, and will enable recipients of the grants to provide

expanded services to eligible veterans. By having larger, competitive

grants, services can be targeted to those eligible veterans most in

need in areas of high impact, with greater customer satisfaction

realized.

It is now possible for JTPA title IV-C programs to be created to

better enhance and complement other JTPA programs that do not focus on

veterans' services, while continuing efforts to improve the targeting

of employment and training services to eligible veterans who face

serious barriers to employment. Larger multi-year grants allow for

enhancement of the quality of services provided and the outcomes

attained by strengthening program activity through increased efficiency

in program scope and grant management, improving the linkages between

services provided and local labor market needs, and ensuring the

provision of a coherent system of outcome-oriented human resource

services through changes in the direction and focus of the Veteran's

Employment Programs to eligible veterans.

Immediate results will manifest themselves in the form of:

eliminated regulations; fewer, but larger grants; establishment of a

system of awards through SGA's that can be renewed, modified or changed

as deemed necessary. In addition, these SGA's can be drawn to

incorporate by reference the essential parts and requirements of the

JTPA and the Departmental JTPA regulations. See, e.g., 20 CFR parts 627

and 636; and 29 CFR parts 96-98. For further information regarding the

SGA or for copies, please contact Mr. Jeffrey C. Crandall at the number

provided above. A copy of the SGA will be published in the Federal

Register in the immediate future.

This rulemaking supersedes that portion of the rulemaking announced

at 56 FR 5124 (February 7, 1991) that related to JTPA title IV-C

programs.

Few comments were received in response to the publication of the

proposed rule at 59 FR 10769 (March 8, 1994). One commenter expressed

total support for the action. Five commenters expressed concern that

the action would have an adverse affect upon small states, especially

those small states with effective programs and proven track records

although they operated with the minimal amount of $55,000 under the

formula-based funding process. In response, the competitive process is

to be structured to ensure that emphasis will be on the technical

merits of the proposal and cost efficiency. Thus, small states with

effective programs should not be adversely affected.

One commenter expressed support for efforts to lower the program's

administrative costs through larger grant amounts and longer grant

periods, but believed that a competitive bidding process is not as

effective as an allocation formula in ensuring that the dollars serve

the intended clientele. He believed that an allocation component must

be kept in place that ensures that the bulk of the funding continues to

go to those states in which the majority of veterans needing service

reside. In response, as stated above, due to funding limitations, the

change from formula-based state allocated funds to a nationwide

competition was instituted to maximize service delivery and to target

veterans most in need. Other factors such as the technical merit of the

proposal and cost efficiency will also be considered.

Publication in Final

For the reasons described above, and in accordance with 5 U.S.C.

553(d)(3), this rule is effective on the publication date of this

document. In light of the agency's desire to have an effective and

efficient program, and in keeping with mandates of the President to

remove unnecessary and restrictive rules, it is in the public interest

to eliminate those regulations and establish a new system of grant

administration for the title IV-C program. Given the impending start of

the program year, it is unnecessary and impracticable to delay the

effective date.

Executive Order 12866

This rule is not deemed to be ``significant'' under section 3(f) of

Executive Order 12866.

Regulatory Flexibility Act

As Assistant Secretaries of Labor, we certify under the Regulatory

Flexibility Act (5 U.S.C. Chapter 6) that this regulation will not have

a significant economic impact on a substantial number of small

entities. We have notified the Small Business Administration of this

finding.

Paperwork Reduction Act

As Assistant Secretaries of Labor, we have determined that the

Paperwork Reduction Act (44 U.S.C. chapter 35) does not apply because

this regulation does not contain any additional information collection

requirements that require the approval of the Office of Management and

Budget.

List of Subjects in 20 CFR Part 626

Grant programs--labor, Manpower training programs.

Final Rule

Accordingly, title 20, Code of Federal Regulations, is amended as

follows:

CHAPTER V--EMPLOYMENT AND TRAINING ADMINISTRATION, DEPARTMENT OF LABOR

PART 626--INTRODUCTION TO THE REGULATIONS UNDER THE JOB TRAINING

PARTNERSHIP ACT

1. The authority citation for part 626 continues as follows:

Authority: 29 U.S.C. 1579(a); sec. 6305(f), Pub. L. 100-418, 102

Stat. 1107; 29 U.S.C. 1791i(e).

Sec. 626.2 [Amended]

2. Section 626.2 is amended by removing from paragraph (a) the

phrase ``, with the exception of the veterans' employment program's

chapter IX regulations of the Office of the Assistant Secretary for

Veterans' Employment and Training, which are set forth at part 1005 of

title 20''.

Sec. 626.3 [Amended]

3. Section 626.3 is amended by removing from paragraph (a) the

phrase ``and part 1005 of chapter IX (Veterans' employment programs

under title IV, part C of the Job Training Partnership Act)''.

Sec. 626.4 [Amended]

4. Section 626.4 is amended:

a. By removing from the introductory text the citation ``and

1005''; and

b. By removing from the consolidated table of contents the entry

for part 1005 of chapter IX.

CHAPTER IX--OFFICE OF THE ASSISTANT SECRETARY FOR VETERANS' EMPLOYMENT

AND TRAINING, DEPARTMENT OF LABOR

PART 1005--VETERANS' EMPLOYMENT PROGRAMS UNDER TITLE IV, PART C OF

THE JOB TRAINING PARTNERSHIP ACT [REMOVED]

5. Part 1005 of chapter IX is removed.

Signed at Washington, DC, this 16th day of May 1994.

Doug Ross,

Assistant Secretary for Employment and Training.

Preston M. Taylor, Jr.,

Assistant Secretary for Veterans' Employment and Training.

[FR Doc. 94-12318 Filed 5-20-94; 8:45 am]

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