Senior Community Service Employment Program

SUMMARY: The Employment and Training Administration (ETA) of the

Department of Labor (DOL) is amending the regulations for the Senior

Community Service Employment Program (SCSEP) to implement the Older

American Act Amendments of 1984, 1987, and 1992 and to make clarifying

changes. This regulation provides administrative and programmatic

guidance and requirements for the implementation of the SCSEP.

EFFECTIVE DATE: June 30, 1995

FOR FURTHER INFORMATION CONTACT: Mr. Charles L. Atkinson, Chief,

Division of Older Worker Programs. Telephone: (202) 219-4778 (this is

not a toll-free number). Copies of this final rule are available in the

following formats: electronic file on computer disk and audio tape.

They may be obtained at the above office.

SUPPLEMENTARY INFORMATION:

A. Background

As authorized by title V of the Older Americans Act (OAA), as

amended (42 U.S.C. 3056, et seq.), the Senior Community Service

Employment Program (SCSEP) fosters and promotes useful part-time

opportunities in community service activities for persons with low

incomes who are fifty-five years old or older. The Employment and

Training Administration (ETA) of the Department of Labor (DOL or

Department) administers the program by means of grant agreements with

eligible organizations, such as governmental entities and certain

public and private non-profit agencies and organizations. Pursuant to

the OAA, the Department in 1973 established the SCSEP.

The SCSEP regulations were last revised in 1976: 29 CFR part 89, 41

FR 9006 (March 2, 1976). The SCSEP legislation has been amended by the

following laws since the last revision of the regulation: Pub. L. 95-

478, section 105 (October 18, 1978); Pub. L. 97-115, section 12

(December 29, 1981); Pub. L. 98-459, sections 501-05 (October 9, 1984);

Pub. L. 100-175, sections 161-66 (December 7, 1987); and Pub. L. 102-

375, sections 502-11 (September 30, 1992) and Pub. L. 103-171 (December

2, l993). On April 26, 1994, the Department published a notice of

proposed rule making governing the SCSEP in the Federal Register (59 FR

21875) for the purpose of soliciting public comments. The comments made

in response to the April 26, 1994, Federal Register proposed rule have

been considered in drafting this final rule. Also implemented are the

1987 and 1992 amendments contained in Pub. L. 100-175 (December 7,

1987) and Pub. L. 102-375 (September 30, 1992). This document issues

the final rule to conform to the OAA and to make technical changes

based on the Department's experience in administering the SCSEP.

B. Procedural Matters

This final rule is not classified as a ``major rule'' under

Executive Order 12866 concerning Federal regulations because it is not

likely to result in: (1) An annual effect on the economy of $100

million or more; (2) a major increase in cost or prices for consumers,

individual industries, Federal, State, or local government agencies, or

geographic regions; or (3) significant adverse effects on competition,

employment, investment, productivity, innovation, or the ability of

United States-based enterprises to compete in domestic or export

markets. Accordingly, no regulatory impact analysis is required.

The Department of Labor has certified to the Chief Counsel for

Advocacy, Small Business Administration, that pursuant to the

Regulatory Flexibility Act at 5 U.S.C. 605(b), the final rule would not

have a significant economic impact on a substantial number of small

entities. No significant economic impact would be imposed on such

entities by the final rule.

Paperwork Reduction Act

Pursuant to the Paperwork Reduction Act, information collection

requirements which must be imposed as a result of the final rule are

being submitted separately to the Office of Management and Budget.

Catalogue of Federal Domestic Assistance Number

This program is listed in the Catalogue of Federal Domestic

Assistance at No. 17.235 ``Senior Community Service Employment

Program.''

List of Subjects in 20 CFR Part 641

Allotment, Allocation, Coordination, Dual eligibility, Cooperative

relationships, Assessment, Eligibility, Individual development plan,

Over-enrollment, Training, and Administrative requirements.

Format of Final Rule

29 CFR part 89 is redesignated as 20 CFR part 641.

Major Changes

A total of twenty-eight comments were received in response to the

proposed rule. Sources of comments received by the close of the comment

period were as follows: National SCSEP grantees (5); State units on

aging (9); area agencies on aging (4); community-based organizations

(3); public interest group (1); Federal agencies (2),; and State Job

Service (2). In addition, two responses were received after the comment

period from county officials, which were also considered.

Based on the comments the Department has received, the majority

reflect approval of the regulations; however, one public interest group

was displeased with the Department's policy regarding unsubsidized

employment. The comments addressed thirty different sections of the

regulations with the bulk of the comments addressing nine sections. A

number of the comments extended beyond the regulations to pose

operational questions. Each of the comments and the respective

regulatory sections are addressed below.

Sec. 641.101 Scope and purpose.

Consistent with changes made in response to comments on

Sec. 641.301 of this part regarding the purpose of the program, this

section has been reworded to acknowledge that SCSEP provides community

service and promotes transition to unsubsidized employment.

Sec. 641.102 Definitions.

There were a total of fifteen comments that dealt with ten

definitions.

There were three identical comments on ``authorized position''. The

thrust of the comments was to request that the regulation include a

required annual adjustment by the Department concerning the value of

each position. Because Congressional action controls the appropriations

levels which, in turn, determine the amount of funds available for

authorized positions, this unit cost concern will continue to be dealt

with on an administrative basis. Therefore, [[Page 26575]] no change is

made to this regulatory provision.

There were two similar comments on the ``dual eligibility''

definition which requested the Department update the proposed

regulations by including Section 204(d) of the Job Training Partnership

Act (JTPA) so that the regulations will reflect the JTPA amendment to

the OAA. The language at Sec. 641.102 is amended to reflect coverage of

both sections 203 and 204(d) by adding a citation to Title II-A.

One commenter requested that the Department alter the terminology

throughout to use the term ``grantee or subgrantee'' rather than

``recipient or subrecipient''. As a result of this comment, the

definitions for ``recipient and subrecipient'' are replaced by the term

``grantee or subgrantee'' and these terms are used throughout the

regulations.

Three commenters requested the Department to revise the definition

of ``enrollee'' in order to: acknowledge the services provided by

grantees, overcome potential misunderstandings vis-a-vis JTPA, and

address the employee aspect of the enrollee. The Department

acknowledges the need to incorporate additional information regarding

grantee-performed services so a more accurate picture of the services

will be provided. However, the Department does not think that changing

the definition will accomplish this objective. Therefore, the goal of

more accurately reflecting the services will be addressed

administratively via reporting changes, if there is sufficient demand

to do so. Suggestions for reporting changes that would more accurately

reflect what is being accomplished at the project level are welcomed.

The Department has clarified the enrollee/trainee relationship with

JTPA through the issuance of an administrative directive. Furthermore,

the JTPA regulations now clarify this relationship.

The status of an enrollee as an employee is a complex concern that

cannot be addressed easily. While the authorizing legislation is silent

on this matter, for the last two years Congressional intent regarding

the enrollee role has clearly been expressed in the following

appropriations report language: ``they [enrollees] are not employees of

the U.S. Department of Labor, or State or national sponsors

administering the Senior Community Service Program.'' It is likely that

the report language will continue to be used and grantees and

subgrantees can cite the reports when corresponding with other Federal

and State agencies. However, since the appropriations language applies

only to the period of the appropriations, since report language is not

binding and since these regulations apply solely to the OAA, the report

language cannot bind non-Department of Labor regulatory agencies. No

useful propose would be served by incorporating the report language in

the regulations. Consistent with the comments received on Sec. 641.310

which recommended the deletion of the word ``employment'' from the term

``community service employment assignment'', this word is deleted in

the definition of the term ``enrollee'' to avoid misunderstandings

between enrollees and staff.

There was one comment that requested the definition of ``host

agency'' be altered to add the word ``exclusively'' after the word

``used'' and before the phrase ``as a place for sectarian religious

instruction; and substitute the word ``training'' for ``work'' site.

Neither suggestion is incorporated into the definition since the

suggested changes may create further problems of interpretation rather

than clarify the definition. The addition of the word ``exclusively''

as it applies to sectarian religious instruction would extend the

definition beyond its present intent and the use of the word

``training'' instead of ``job'' site would establish an emphasis beyond

community service.

Two commenters requested relief from the requirement to calculate

an applicant's income using either the preceding six-month or twelve-

month period as it applies to the definition of ``low income'' because

they believe elimination of this requirement would permit the grantee

or subgrantee to deal with homeless persons or other emergencies more

expediently. The Department believes that such a change would be

inconsistent with eligibility determinations for other employment and

training programs and create additional linkage problems; therefore,

this change is not incorporated. However, as a result of reviewing this

definition, it was noted that there was no reference to the family's

income. This shortcoming is corrected by adding the phrase ``of the

family'' after the word ``income''.

There were three comments on the definition of ``poor employment

prospects'' which addressed various aspects of this term. Two of the

commenters wanted additional language that would include individuals

living in rural and urban areas. Since the proposed definition

permitted additional categories to be identified and persons living in

isolated areas have special problems in finding employment, this term

is amended by adding the phrase, ``or residing in socially and

economically isolated rural or urban areas where employment

opportunities are limited.''. The remaining comment pointed out the

health problems of older Americans which may prevent them from

performing many jobs. It is true that some older Americans do have

health problems which would prevent them from being employed, but the

objective of the program is to obtain employment for all individuals

who are enrolled; therefore, no change is made to establish any

limitations.

There was a proposal to add a new definition of ``similar public

occupations'' to address possible misunderstandings on enrollee wages.

The addition of such a term may create confusion with the ``maintenance

of effort'' requirements found in Sec. 641.325, rather than solving a

possible misunderstanding on enrollee wages. No position should be

established which in any way would indicate maintenance of effort

violations. Positions established under SCSEP should be designed

specifically for the enrollee and not represent ongoing duties that

have previously been performed by staff of the host agency.

Finally, there was a recommendation to expand the definition of

``residence'' to include the word, ``address'' so as to be able to work

with homeless individuals more easily. Although the present definition

does not preclude working with the homeless, the phrase ``or address''

is added to overcome possible limiting interpretations.

Sec. 641.201 Allocation of funds.

There were two comments regarding language changes to paragraph (c)

of this section, which were: (1) To drop the phrase, ``and the amount

allotted to each project''; and (2) to add the phrase, ``or a project

sponsor designated by the Department''. As a result of these requests,

both changes are made. The suggested deletion more correctly states the

current practice of not requiring the amount allotted to be identified.

The suggestion to add the language on the project sponsor acknowledges

the option available to Governors to relinquish the State share of the

allocations to national grants.

Sec. 641.205 Responsibility review.

There were three comments on this section. Two of the comments

sought relief from the 90-day requirement for the submission of the

final closeout documents in paragraph (c)(5). This requirement is part

of the administrative requirements for closeouts applicable to all DOL

programs which are contained [[Page 26576]] at 29 CFR 95.71 or 29 CFR

97.50, as appropriate; therefore, no change is made to this paragraph.

However, if additional time is needed to prepare the closeout

documents, waivers can be provided administratively. The third comment

suggested strengthening this section by adding several new

``responsibility'' provisions from the Federal Acquisition Regulation

which deal with contracts. This is a grant program, and the present set

of provisions contained in this section provide sufficient authority to

ensure that grantees are responsible entities. Clarifications are

provided for paragraphs (a) and (c)(9). The phrase ``included in (b)

and (c) below'' is added to ensure the reader understands that the 13

responsibility tests consist of both paragraphs. The word ``have'' is

deleted along with the ``ed'' from the word ``maintained'' in paragraph

(c)(9) to maintain parallel sentence structure.

Sec. 641.207 Negotiation.

The phrase ``planned occupational categories of SCSEP'' is removed

and the phrase ``community service'' is substituted to overcome any

misunderstandings in paragraph (b)(1) about the intent of this

paragraph.

Sec. 641.301 Grant operations.

There was one comment relating to the purpose of the program. The

comment recommended expanding the task of the grantees to include the

development of appropriate training, as well as work assignments. Since

the grantees already explore the training needs of the individual as

part of the assessment, this expanded language is unnecessary. The

legislatively-mandated purpose of the program is community service.

This suggested addition may confuse project operators rather than

clarify; therefore, it is not adopted. The word ``dual'' is substituted

for the word ``primary'' in paragraph (b) to acknowledge that there is

more than one program purpose and the phrase, ``and to provide useful

community service'' is deleted since ``community service'' is already

used in the same sentence. As noted in the comments addressed in

Sec. 641.310 and acknowledged in the definition of enrollee, the word

``employment'' is deleted in paragraph (b) to prevent confusion between

the enrollees and the staff about whether the enrollee is assigned to a

community service position or a job. The phrase ``and will promote

unsubsidized employment opportunities'' is added the last sentence in

paragraph (b) consistent with the change to the word ``dual'' above.

Sec. 641.302 Grantee responsibilities.

There were a total of eight comments which addressed three separate

areas of this section. Four of the comments questioned the need to

provide documentation on an individual's eligibility for the program.

While this concern is valid, the need to ensure that only eligible

persons are served outweighs this concern. The operating guidance on

documentation will be widely circulated for comment prior to the

implementation of this provision. The remaining four comments sought

language clarifications. The commenters asked the DOL to clarify that

wages are to be paid for community service. As a result of the request,

the word ``remit'' in the opening paragraph is substituted for the word

``provide'' and the phrase ``for community service assignments and

provide'' is added while the phrase ``skill acquisition or'' is

deleted. One commenter suggested the regulations directly quote the OAA

rather than paraphrasing it in paragraph (a)(3) to clearly state the

legislative intent of whom is to be served. For consistency, a portion

of the language from section 502(b)(1)(M) of the OAA is quoted rather

than paraphrased. Lastly, a commenter suggested that a specific number

of monitoring trips be inserted in paragraph (b). Rather than establish

a regulatory numerical requirement for monitoring visits for grantees,

that concern will continue to be dealt with administratively.

Sec. 641.303 Cooperative relationships.

In order to avoid any potential confusion regarding local

consultations, the specific wording from 502(d)(1) of the OAA is

inserted in paragraph (b)(5).

Sec. 641.304 Recruitment and selection of enrollees.

There were five comments on this section. Three of the commenters

asked that the requirement for listing vacancies with the Job Service

be altered to a requirement to notify the Job Service of vacancies so

there is no confusion about the intent. Another commenter wanted all

private sector jobs listed with the Job Service. The remaining

commenter did not want to be hindered by having to notify the Job

Service. The language is altered by omitting the phrase ``listing of

vacancies with'' and inserting in its place the term, ``notifying'' and

adding the phrase ``when vacancies occur'' in the first paragraph of

this section. This is to notify the Job Service of SCSEP vacancies only

when they occur since SCSEP grantees cannot control internal State

employment security agencies' procedures to list positions.

Sec. 641.305 Enrollment eligibility.

There were a total of eleven comments on this section. In addition,

in order to clarify eligibility, a change is made to paragraph (a)(2)

to clarify that re-enrollment is appropriate when an enrollee leaves

the SCSEP or unsubsidized employment through no fault of the enrollee,

for example, if the enrollee becomes ill. Two commenters asked that

section 204(d)(2)(A) of the JTPA be cited to reflect consistency with

the technical amendments to the OAA. As a result of the 1994 technical

amendments to the OAA which impact on the JTPA, paragraph (d)(2) of

this section is altered to broaden the reference to include a citation

to Title II-A of the JTPA so it is clear that it applies to both

section 203 and 204(d). Two commenters asked that the regulations

acknowledge that the enrollment eligibility requirements could be

changed by other Federal laws. Paragraph (c) of this section is altered

by adding the phrase ``unless required by Federal law''. In paragraph

(b)(2), one commenter identified an incorrect citation to Sec. 641.103

which is corrected to read Sec. 641.102. Also in paragraph (b)(2), a

second sentence is added to permit disabled persons to be considered as

a family of one for income eligibility purposes. Two commenters asked

that the twelve-month recertification requirement be dropped. It is the

Department's intent that re-certifications be conducted every twelve

months if an enrollee continues in the program; therefore, the

requirement is retained. One commenter expressed concern about the

eligibility documentation requirement previously addressed under

Sec. 641.302(c), Grantee responsibility, above. As previously

indicated, specific administrative requirements will be widely

circulated for comment in order to limit, to the extent possible,

burdens being placed on grantees. One commenter asked for a

clarification on the meaning of the term ``permanent address''. To

overcome any limiting reference, the word ``permanent'' is removed from

the definition for residence, as previously noted.

Sec. 641.306 Enrollment priorities.

There were five comments relating to this section. Two commenters

indicated support for the changes. One commenter pointed out a

grammatical error in paragraph (a)(3) which is amended to read ``seek''

rather than ``seeks''. There were two requests for clarification of

paragraph (a)(3) regarding who may return to the program. In response,

individuals may potentially return to the program if they are not at

fault in [[Page 26577]] losing their unsubsidized job or if they have

become ill and are forced to leave their unsubsidized employment.

Paragraph (a)(3) is amended to reflect this clarification with the

addition of the phrase, ``through no fault of their own''. The

provision on vacant positions in paragraph (c) is clarified by adding

the sentence ``[T]he priorities do not apply to the experimental

private sector projects.'' to prevent any misunderstanding about the

non-application of enrollment priorities to the experimental project

positions that are authorized in Sec. 641.326. Also, the phrase

``community service'' is added before the word ``position'' to be

consistent with the addition of the new sentence. Also, in this

paragraph, the word ``and'' replaces the word ``but'' to more clearly

state the intent.

Sec. 641.308 Orientation.

Paragraph (a) of this section is amended by adding language to

acknowledge that orientation cannot always be conducted prior to the

commencement of a community service assignment. The word ``for''

replaces the word ``to'' in paragraph (a) to improve readability.

Paragraph (b) is amended by substituting the word ``an'' for the word

``the'', and adding the phrase, ``similar to the one'', for clarity.

Paragraph (c) is amended to read ``[T]he grantee or subgrantee shall

ensure that host agencies provide adequate supervision and adequate

orientation and instruction regarding, among, other things, job duties

and safe working procedures''.

Sec. 641.309 Assessment and reassessment.

There were six comments on this section requesting clarifications

of paragraphs (a), (b), (d), (e), and (g). Paragraph (a) is revised by

inserting the phrase, ``and community service objectives'' in addition

to ``employment'' and ``training'' to ensure that the community service

aspect of the program is highlighted. The phrase ``for each

individual'' is shifted to the end of the sentence so it is clear that

it applies to both the assignment and objectives. A new paragraph (b)

is added to address the assessment of physical capabilities and the

remaining paragraphs are renumbered (c)-(h). An assessment of physical

ability is a pre-employment medical inquiry and, therefore, must

conform to the prescriptions of Section 504 of the Rehabilitation Act

of 1973, as amended (section 504), the Americans with Disabilities Act

of 1990 (ADA) and their respective implementing regulations. See, e.g.,

29 CFR 32.15, the section of the Department's section 504 regulations

that addresses pre-employment inquiries. Prior to the offer of a

particular community service assignment, disability-related inquiries

may not be made. Generally, the assessment of physical ability is

limited to an inquiry as to whether the enrollee is capable, with or

without a reasonable accommodation, of performing the functions of the

job (essential and/or marginal). Enrollees may also be asked to

describe or demonstrate how they would perform these functions. Once a

bona fide community service assignment offer has been made, medical

inquiries, including medical examinations, may be made. However, these

inquiries are subject to section 504 of the Rehabilitation Act, the

ADA, and their implementing regulations. For example, with respect to

medical examinations, 29 CFR 32.15 provides that the examination must

be a routine part of the host agency's selection process for the job in

question and must be performed by a physician qualified to make

functional assessments. If a particular medical test is a prerequisite

to placement into a community service assignment, including a medical

test that is required by a local ordinance or State law, it is

recommended that it be conducted at the same time as the physical

examination described in paragraph (b)(4) of this section.

The former paragraph (b) (now paragraph (c)) is not altered to

incorporate suggested language on other appropriate employment and

training opportunities since this is a community service program. In

the new paragraph (e) (formerly paragraph (d)), the acronym ``IDP''

replaces the phrase, ``service strategy'', in order to avoid confusion

with the term, ``individual service strategy'', used under JTPA. Also

the phrase ``program year'' is deleted from the new paragraph (e) and

replaced by the phrase ``a 12-month period'' to overcome situations

where an enrollee may be in the program for only brief periods. In the

new paragraph (f), (formerly paragraph (e)) the phrase ``upon

completion of the review'' is deleted to ensure that grantees

understand that alternative assignments may be permitted at any point

while working with an enrollee. The new paragraph (h) (formerly

paragraph (g)) is amended by adding language to clarify that the

phrase, ``recent assessment'' means an assessment done within the last

year.

Sec. 641.310 Community service assignments.

There were five comments on this section. Two commenters requested

the deletion of the word ``employment'' from the title, the text of

this section and elsewhere in the final rule. The word ``employment''

is removed from the title and this section, as well as elsewhere in the

final rule, to emphasize that the community service assignment does not

constitute an enrollee's job. The term ``community service assignment''

is used throughout the regulation. In a similar manner, the word

``placed'' is substituted for the word ``employed'' in paragraph (a)(1)

in order to ensure parallel construction. One commenter requested that

the phrase ``as soon as possible'' in Sec. 641.310(a) be deleted since

it is not always possible to refer an enrollee to a community service

assignment. This provision is retained since this is consistent with

the Department's intent that there be no lengthy delays in enrollment

after receipt of orientation. Two commenters requested clarifying the

provision in Sec. 641.310(a)(1) by stating that project sponsors may

provide enrollees with opportunities to assist in the administration of

the SCSEP. This change is incorporated into paragraph (a)(1) in lieu of

the last two sentences of the paragraph since the revised sentence more

accurately communicates Departmental policy. The phrase, ``if

appropriate according to the IDP'' is added to ensure consistency with

Sec. 641.308. The last two sentences of paragraph (a)(1) are deleted.

The 1300 hour provision in paragraph (b) is also retained. The second

sentence in paragraph (b)(2) is moved to become the second sentence in

paragraph (b)(3) since both paragraphs refer to periods of less than 20

hours. There were two comments on Sec. 641.310(d). There was one

suggestion to permit the use of SCSEP funds for reasonable

accommodations. This suggestion is incorporated into Sec. 641.403 since

that section deals with allowable costs, but it is recognized that due

to limited availability of administrative funds, it may not be

practical to do this except in limited situations. There also was a

suggestion that Sec. 641.310(d) be amended by inserting a sentence on

work place conditions to address ergonomically sound conditions to

prevent repetitive motion injuries such as carpal tunnel syndrome. This

suggestion is not adopted since the comment is limited primarily to

office occupations and the work place is much broader for the title V

program. However, a bulletin will be issued on the broader issue of

workplace safety and sound ergonomic design concerns as suggested by

the commenter. [[Page 26578]]

Sec. 641.311 Enrollee wages and fringe benefits.

There were eleven comments on this section. Five addressed concerns

regarding the use of physical examinations given in order to assess an

enrollee's physical ability and need for any supportive service(s). The

assessment of an enrollee's physical ability and the physical

examination provided to enrollees as a program benefit are two separate

activities. As a result, assessment of an enrollee's physical ability

is moved to Sec. 641.309 in order to group all activities on assessment

in a single section. Since physical examinations are a fringe benefit,

they are addressed in this section. Therefore, paragraph (b)(3) is

amended to reflect this change and it is numbered as (i) for the

examination and (ii) for the waiver.

Paragraph (b)(3) of this section addresses the physical examination

that is provided to enrollees as a fringe benefit. The physical

examination must be offered within 60 working days after commencement

of the community service assignment instead of before the first day of

compensated participation. It is not an eligibility criterion, nor

should the results of the examination be taken into consideration when

determining a community service assignment. The physician who conducts

the examination should only give a copy directly to the enrollee rather

than to program staff. An enrollee should not have to request a copy,

as suggested by one commenter. One commenter indicated that the impact

of the physical examinations upon the administrative budget category

needs to be considered. Since the regulation is changed to authorize

charging the cost of the physical examination to the enrollee wages and

fringe cost category, the regulations provide additional flexibility,

rather than limiting flexibility, and no further change is made.

Another commenter suggested SCSEP funds could be used to insure

reasonable accommodation for participants at the host agency. As

indicated above, such expenditures will be deemed allowable, within

funding limitations.

The Department was also asked to consider additional regulatory

changes that would exempt the SCSEP program from payment of

unemployment compensation taxes to States. In addition, the Department

was asked to substitute the phrase ``host work site'' for the word

``employer'' at Sec. 641.311 (a)(3) and include a new definition at

Sec. 641.102 for similar public occupations. Neither of these

suggestions are implemented for two reasons. First, with regard to

unemployment compensation, these regulations cannot alter the federal

or State unemployment compensation laws that regulate this area of

concern since such determinations must be made individually by State

employment security agencies. (Since the issuance of a directive on the

SCSEP by the Unemployment Insurance Service, the underlying question of

unemployment compensation legislation has been virtually eliminated).

Second, as indicated in response to the comments on definitions,

community service assignments for enrollees must be free from any

potential charges of non-maintenance of effort which could be inferred

by limiting the application of prevailing rates of pay to a single work

site of the host work site.

Finally, a typographical error on the word ``waiver'' is corrected

in paragraph (b)(2).

Sec. 641.312 Enrollee supportive services.

There were ten comments received that dealt with the need to

clarify the unallowability of enrollee transportation costs. Two of

these expressed a concern, that the unallowability of such costs would

be a hardship for host agencies. Another commenter wanted the option to

pay transportation costs eliminated since it could serve as a

disincentive to enrollees seeking unsubsidized employment. The

remaining seven commenters requested a clarification of the regulations

to make it clear that SCSEP funds can be used to pay for enrollee

travel when they are working in a SCSEP administrative capacity. Since

section 502(b)(1)(L) of the OAA only authorizes the payment of

necessary transportation costs of eligible individuals which may be

incurred in the employment in any project funded under this title, the

Department amends Sec. 641.312(5)(ii) to read ``[G]rant funds may not

be expended to support the transportation costs of host agencies or

programs funded other than under title V of the OAA, except where

provided by federal law''. Because federal appropriations law prevents

funds from one grant being used to defray the expenses incurred under a

separate grant, this provision clarifies that SCSEP funds cannot be

used for certain host-agency travel costs which are to be met under

another federal grant or local program. However, enrollee travel to and

from the work site, in selected cases, is necessary in isolated

settings where no transportation is available and that option is

retained. There was one comment received that suggested the regulations

should require grantees and subgrantees to make reasonable

accommodations for enrollees with disabilities at host agencies. The

Department fully supports efforts to accommodate individuals with

disabilities. However, in order to protect the limited funds available

for this program, the regulation requires that the expenditure be made

with ``administrative'' funds to the extent that funding permits.

Sec. 641.313 Training.

There were a total of ten comments on this section. As suggested by

two commenters, the ``prior to and in preparation for actual community

service assignment'' phrase in paragraph (a) is removed since training

before commencement of a community service assignment is not always

practical or possible. In addition, paragraph (a) is amended by adding

language that states a grantee is to provide ``or arrange for training

that is specific to an enrollee's community service assignment''. Three

of the commenters requested an increase in training hours. Paragraph

(b) is amended to now provide up to 500 hours of training for enrollees

``per grant year'' and the word ``orientation'' is deleted to overcome

potential confusion with Sec. 641.308, Orientation. Also, as suggested

by a commenter, the original paragraph (c) is deleted since it is a

duplication of paragraph (a) and the remaining paragraphs are

renumbered to (c)-(h). The new paragraph (f) (formerly paragraph (g))

is prefaced by deleting the phrase, ``at no cost to the project'' and

adding the phrase, ``whenever possible'' to acknowledge it is not

always possible. In addition this paragraph is amended by deleting the

phrase, ``at no cost to title V'' to more clearly state the intent of

the OAA. There were two comments dealing with training costs under

SCSEP. Since it is not encouraged for grantees and subgrantees to use

SCSEP funds for training, due to the limited funding available,

paragraph (f) is amended to read that grantees and subgrantees shall

seek training ``whenever possible at reduced or no costs to title V''.

Paragraph (g) is amended to remove the ``al'' from the word ``self-

development'' to improve the readability. Two commenters suggested

rewording paragraph (h) to more positively state this provision. The

Department agrees with the suggestion and paragraph (h) is amended to

read: ``Joint programming, including co-enrollment, when appropriate,

between title V programs and programs authorized under the Job Training

Partnership Act, the Community Services Block Grant Act, or the Carl D.

Perkins Act is strongly encouraged''. [[Page 26579]]

Sec. 641.314 Placement into unsubsidized employment.

There were three comments on this section. Two of those comments

dealt with an unsubsidized employment goal of the program. The first

commenter raised a question about whether the increased emphasis on the

unsubsidized employment goal would detract from the original intention

of the SCSEP being a community service program. The second commenter

suggested that individual goals be established for each grantee

depending upon specific local situations. Since the unsubsidized

employment goal remains unchanged and continues as a goal, rather than

a firm requirement, it is retained as a single measure. The other

comment sought a change on enrollee placement ``follow-up'', set forth

in paragraph (d), that would reduce the follow-up time frame to one

month from the current 90 days as a means to reinforce successful

placement of the former enrollee. This suggestion is an excellent

operational procedure and would assist grantees in working with

employers by identifying enrollee employment-related problems, as well

as areas where the grantee can better assist the employer.

Nevertheless, the Department is not including such a numerical

requirement in the regulations since a one-month follow-up requirement

may not be possible in all instances. Paragraph (b) is revised to

insert the word ``project's'' before the word ``annual'' to clarify

that the goal applies to the total grant period as opposed to a monthly

or quarterly requirement. Also, the phrase, ``within the project year''

is deleted from paragraph (b) to prevent a misinterpretation.

Sec. 641.315 Maximum duration of enrollment.

There were nine comments on this section with seven supporting this

provision. However, one commenter requested that this section be

omitted since, in the commenter's opinion, it is contrary to the

original goals of the program. The Department thinks that since this

section will provide grantees with additional flexibility, it is in the

best interest of the program to retain this provision. To prevent

misinterpretation, another commenter suggested the following language

be added to this section: ``Time limits on enrollment shall be

reasonable and IDP's shall provide for transition to unsubsidized

employment or other assistance before the maximum enrollment duration

has expired.'' This change is incorporated since it is the intent of

the regulations to retain a customer focus which should be consistent

with the enrollee's IDP.

Sec. 641.316 Individual development plan-related terminations.

Eight comments were received on this section with seven supporting

the provision. The remaining comment expressed concerns about

implementation of the IDP requirement that will have to be addressed

once the regulations are effective. This comment deals with issues

beyond the scope of the regulations which will be addressed in an

administrative issuance. As with the other administrative issuances,

the Department plans to widely circulate drafts for comment prior to

issuing operational guidance.

Sec. 641.317 Status of enrollees.

Four commenters requested clarification of the employment status of

enrollees when they are working at community service assignments. They

suggested that in addition to enrollees not being considered federal

employees, they should also not be considered employees of the grantees

or their subgrantees. As explained earlier, in the definitions section,

the Department would like to clarify this through regulations since it

would overcome many misunderstandings and would also eliminate the need

for administrative interpretations regarding employee/enrollee status

by various governmental units. However, without specific language in

the program legislation, regulatory guidance binding on other agencies

administering other statutes cannot be issued in these regulations.

Also, the language used by the appropriations committee for the past

two years in the passage of these appropriations bills has the effect

of implementing these suggestions on a year-to-year basis. Of course,

subsequent authorizing legislation could statutorily clarify employee/

enrollee employment status.

Sec. 641.318 Over-enrollment.

There was one comment received regarding this section. It suggested

substituting the word ``temporary'' for ``short-term'' to overcome any

misunderstandings on the intent of the term. The Department agrees and

this section is amended to reflect this clarification. The citation in

paragraph (b)(2) is corrected to read section 502(b)(1)(P) instead of

502(b)(1)(O).

Sec. 641.321 Political activities.

Paragraph (a)(1) is amended by substituting the phrase ``they are''

for the phrase ``enrollee is'' since this provision applies to both

enrollees and staff, as stated at the beginning of this provision.

Paragraph (b)(1) is amended by substituting ``Special Counsel (OSC)''

for ``Personnel Management (OSC)'' to clarify which office has current

responsibility for interpreting the Hatch Act; the U.S. Office of the

Special Counsel (OSC) is located at 1730 M Street, NW., Suite 300,

Washington, DC 20036-4505. Paragraph (b)(2) is amended by substituting

the word ``have'' for the phrase, ``be submitted for approval to'' to

overcome any potential misunderstandings about the need to seek

individual approvals of the notice to be displayed and provided to the

enrollees.

Sec. 641.323 Nepotism.

There was one comment requesting the Department extend the waiver

provision set forth in paragraph (a) to isolated rural areas. The

Department thinks that rural areas are similar enough in population

density to Native American reservations to justify extending the

provision to rural areas; thus, this provision is added to paragraph

(a). Also, paragraph (a) is amended by inserting the phrase, ``who

works'' to clarify the person referenced in this paragraph. The phrase,

``the total service population is 2,000 or less and is isolated, or

where there is a history of dependence on public assistance'' is

deleted since these factors do not apply directly to the SCSEP program.

Sec. 641.324 Enrollee and applicant complaint resolution.

There was one comment questioning whether this section applied to

host agencies. This section does not apply to host agencies. Because

this is not a consideration requiring regulatory guidance, there is no

change to the regulations.

Sec. 641.326 Experimental private sector training projects.

Paragraph (g) is amended by substituting a citation to title II-A

of the JTPA for the old citation to section 204(d). Paragraph (h) is

amended by adding the word ``national'' before the word ``grantee'' to

ensure that it is understood that this provision applies only to

national grantees; and by deleting the word ``formulas'' to eliminate

any possible misunderstandings on the distribution of the State

allocation for experimental private sector training projects. A new

paragraph (i) is added to acknowledge that non-federal matching is not

required specifically for projects under this section.

Sec. 641.402 Administrative requirements.

Paragraph (a) is amended by providing the present citation for the

Department's administrative requirements. The former citation was

[[Page 26580]] 41 CFR part 29-70 and the present citation is 29 CFR

part 95.

Sec. 641.403 Allowable costs.

There were three comments on this section. Two identified incorrect

citations. The paragraph addressing ``allowable fringe benefits costs''

is incorrectly cited as ``(d)(3)''. This paragraph is amended to

reflect that the proper citation is paragraph (e). Under the same

paragraph, the term ``workers'' is substituted for the term

``workman's'' in order to use the correct term. The remaining comment

expresses a concern that listing fringe benefits deemed allowable in

paragraph (e) might result in enrollee disincentives to leave the

program for unsubsidized employment. The listing does not establish

enrollee entitlements. However, it is the Department's judgment that it

is more helpful than it is harmful to list the types of allowable

fringe benefits; therefore, this listing is retained. Paragraphs

(b)(2)(iii) and (4) are amended by deleting the phrase ``as not subject

to OMB Circular A-122'' to eliminate potential misinterpretations of

this confusing phrase. A new Sec. 641.403(d)(4) is added to provide

that grantee funds may be used to provide physical and programmatic

accessibility and reasonable accommodation, as required by section 504

of the Rehabilitation Act of 1973, as amended, and the Americans with

Disabilities Act of 1990.

Sec. 641.404 Classification of cost.

There were three comments on this section. One commenter questioned

permitting enrollees to perform administrative functions, since these

are not reflected in the administrative costs. The Department is

retaining the provision permitting the use of enrollees to perform

administrative functions. It has been a longstanding practice for

grantees to maximize the number of enrollees by exposing them to

administrative functions. This has been a win-win practice for both the

grantee and the enrollees. To acknowledge existing policy, new language

is added in Sec. 641.310(a)(1) of the regulations to reflect that the

use of enrollees to perform administrative functions is an allowable

activity.

Another commenter requested that those training costs incurred to

train sub-grantees not be counted against the administrative cost

category. Since such expenditures cannot be applied against another

cost category, the current provision is retained. The last comment

sought inclusion of enrollee training costs as an enrollee wage and

fringe benefit. Since the program is focused on community service,

enrollee training outside of SCSEP is sought only when appropriate to

meet the needs of the enrollee. Paragraph (b) is amended by inserting

the phrase, ``including hours of'' before the word ``training'' to

clarify that this phrase applies to both community service and

training. Paragraph (c)(6) is amended to add the phase ``such as

tuition'' to ensure that there is no misunderstanding regarding the use

of the word ``training'', as used under paragraph (b).

Sec. 641.405 Limitations on federal funds.

The citation in paragraph (a) is corrected to read (b) instead of

(6). Also, in this paragraph, the phrase ``and periods during which

limitation'' is deleted since this phrase was intended as transitional

language intended to apply to the 1985 draft proposed regulations and

does not currently apply. In paragraph (b)(1), the word ``grant'' is

altered to read ``project'', consistent with the legislative language.

The sole comment received was on paragraph (b)(2) of this section. The

commenter pointed out that the ``75 percent rule'' regarding

expenditure of funds on enrollee wages and fringe benefits limited the

flexibility to utilize resources for the section 502(e) experimental

programs. The 75 percent limitation is retained since the basic program

objective is to put as much of the funds as possible into the hands of

the enrollee rather than divert funds to administrative functions.

Sec. 641.406 Administrative cost waiver.

The word ``and'' is substituted for the word ``the'' in the last

sentence of the initial paragraph since there is a series of items. To

improve reading of the regulation, the initial three sections are

designated as paragraph (a) and the remaining information on waivers is

designated as paragraph (b). Therefore, paragraphs (a)-(e) are

renumbered as (1)-(5).

Sec. 641.407 Non-federal share of project costs.

This section is amended to provide the present citation for the

calculation of the non-federal share. The regulations now are found at

29 CFR 97.24 or 29 CFR 95.23 instead of 41 CFR 29-70.206 (1984). In

addition, this section is revised to assign each item on the list of

exceptions to the matching requirement to a separately designated

clause. Also the reference to the 502(e) projects is moved to

Sec. 641.326(i) so all items on this topic are in a single section.

Sec. 641.408 Budget changes.

This section is amended to provide the present citation for

revision of budget and program plans. The present cite at 29 CFR 95.25,

Revision of budget and program plans, is added and the previous cite at

41 CFR 29-70.211 (1984), Modifications and Budget Revisions Procedure,

is deleted.

Sec. 641.409 Grantee fiscal and performance reporting requirements.

There were two comments on this section. One commenter suggested

clarifying language at paragraph (c) in order to acknowledge that

several Governors currently provide their State funding to national

grantees for operation of the SCSEP program. The Department agrees with

this clarification and amends paragraph (c) by adding ``or another

project sponsor designated by the Department''. The second commenter

asked if the Cash Transaction Report referred to in paragraph (b)(3)

was necessary. Based on a review of other methods for obtaining

information for draw downs of funds, the Department thinks that

existing reports will suffice. Therefore, this report is discontinued

upon the effective date of these regulations. Paragraphs (a) and (b)

are amended to provide the new citation for reporting requirements and

waivers for late reports are acknowledged, consistent with present

practice. The present citations for paragraph (a) can be found at 29

CFR 95.91 and the previous citation of 41 CFR 29-70.209 3 (1984) is

deleted. The present citation for paragraph (b) can be found at 29 CFR

95.52 and the previous cites of 41 CFR-29 70.207 2(a) (1984) and 41 CFR

29-70.208 (1984) are deleted.

Sec. 641.410 Subgrant agreements.

Paragraph (c) is amended to provide the present citation for

grantee procurement. The present citation can be found at 29 CFR 95.40

through 95.48 and the previous citation of 41 CFR 29-70.216 (1984) is

deleted.

Sec. 641.411 Program income.

This section is amended to provide the present citation for program

income. The present citation can be found at 29 CFR 95.24 and the

previous citation of 41 CFR 29-70.205 (1984) is deleted.

Sec. 641.414 Grant closeout procedures.

This section is amended to provide the present citation for grant

closeout procedures. The present citation can be found at 29 CFR 97.50

or 29 CFR 95.71, as appropriate, and the previous citation of CFR part

97 is deleted.

[[Page 26581]]

Other

There were other comments that did not fall within any section.

They are as follows:

1. Residential Health Positions. It was suggested that priority in

the distribution of eligible slots be given to individuals in

residential health care facilities. Since there is no legislative basis

for providing such a priority, in the interest in local flexibility, we

have chosen not to adopt an additional priority.

2. Administrative Costs. It was pointed out by two commenters that

the 13.5 percent administrative cost limitation has remained static,

while additional administrative responsibilities have been added.

Congress recognized the administrative burdens they were creating in

the passage of the 1992 amendments. The House report acknowledged that

if additional administrative requirements, such as assessment and

coordination, forced grantees to seek a waiver from the 13.5 percent

level to the 15 percent ceiling, such a request should be accommodated.

3. Paperwork Reduction Act. A question was raised about why the

older worker programs cannot use the same administrative forms as other

employment and training programs. The regulations mandate the

submission of necessary information. However, they do not mandate any

particular forms. Since the Department encourages closer cooperation

and coordination between programs within a State, such an approach

within a State represents a goal the Department supports.

4. Social Security Eligibility. A suggestion was made that SCSEP

income should not count in calculating eligibility for Supplemental

Security Income under the Social Security program. Since the SCSEP

regulations cannot impact on the legislation of other programs, this

suggestion is not incorporated into these regulations.

5. Eligibility Criteria. A suggestion was made that the

Department's guidelines on the SCSEP program's eligibility criteria

need to be updated. The Department concurs with this observation and

commits itself to issuing updated guidelines to replace an existing

bulletin. Since these criteria are of an administrative nature, they

are not incorporated into the regulations.

6. Congressional Intent. One comment was received which questioned

the Department's implementation of the 1992 amendments' emphasis on

placing individuals in unsubsidized employment. The unsubsidized

employment goal of the program has remained the same for the last nine

years and these regulations do not alter this goal. Furthermore, the

program can only serve a small percentage of all persons who

potentially qualify for the program. Without turnover of the enrollees,

no additional persons could be served beyond those currently enrolled.

On a practical basis, many of those individuals who are served by the

program need more than 20 hours a week of employment at the minimum

wage to maintain themselves. Therefore, the modest placement goal

encouraging projects to seek unsubsidized positions for such

participants is retained. This option must be available to serve

individuals who require unsubsidized employment.

List of Subjects 20 CFR Part 641

Aged, employment and grant programs--Labor.

20 CFR Part 89

Aged, employment and grant programs--Labor.

Final Rule

Under the Secretary's authority, 5 U.S.C. 301 and Reorganization

Plan No. 14 of 1950, 5 U.S.C. appendix, 29 CFR part 89 is redesignated

as 20 CFR part 641 and revised to read as follows:

PART 641--SENIOR COMMUNITY SERVICE EMPLOYMENT PROGRAM

Subpart A--Introductory Provisions

641.101 Scope and purpose.

641.102 Definitions.

Subpart B--Grant Planning and Application Procedures

641.201 Allocation and allotment of title V funds.

641.202 Eligibility for title V funds.

641.203 Soliciting applications for title V funds.

641.204 Grant application requirements.

641.205 Responsibility review.

641.206 Grant application review.

641.207 Negotiation.

641.208 Rejection of grant application or project components.

641.209 Award of funds.

Subpart C--Grant Operations

641.301 General.

641.302 Grantee responsibilities.

641.303 Cooperative relationships.

641.304 Recruitment and selection of enrollees.

641.305 Enrollment eligibility.

641.306 Enrollment priorities.

641.307 [Reserved]

641.308 Orientation.

641.309 Assessment and reassessment of enrollees.

641.310 Community service assignments.

641.311 Enrollee wages and fringe benefits.

641.312 Enrollee supportive services.

641.313 Training.

641.314 Placement into unsubsidized employment.

641.315 Maximum duration of enrollment.

641.316 Individual development plan-related terminations.

641.317 Status of enrollees.

641.318 Over-enrollment.

641.319 [Reserved]

641.320 Political patronage.

641.321 Political activities.

641.322 Unionization.

641.323 Nepotism.

641.324 Enrollee and applicant complaint resolution.

641.325 Maintenance of effort.

641.326 Experimental private sector training projects.

Subpart D--Administrative Standards and Procedures for Grantees and

Limitations on Federal Funds

641.401 General.

641.402 Administrative requirements.

641.403 Allowable costs.

641.404 Classification of costs.

641.405 Limitations on federal funds.

641.406 Administrative cost waiver.

641.407 Non-federal share of project costs.

641.408 Budget changes.

641.409 Grantee fiscal and performance reporting requirements.

641.410 Subgrant agreements.

641.411 Program income accountability.

641.412 Equipment.

641.413 Audits.

641.414 Grant closeout procedures.

641.415 Department of Labor appeals procedures for grantees.

Subpart E--Interagency Agreements

641.501 Administration.

Subpart F--Assessment and Evaluation

641.601 General.

641.602 Limitation.

Authority: 42 U.S.C. 3056(b)(2).

Subpart A--Introductory Provisions

Sec. 641.101 Scope and purpose.

Part 641 contains the regulations of the Department of Labor for

the Senior Community Service Employment Program (SCSEP) under title V

of the OAA. The dual purposes of a SCSEP project are to provide useful

part-time community service assignments for persons with low incomes

who are 55 years old or older while promoting transition to

unsubsidized employment. This part, and other pertinent regulations

expressly incorporated by reference, set forth all regulations

applicable to the SCSEP.

Sec. 641.102 Definitions.

The following definitions apply to this part:

OAA means the Older Americans Act of 1965, as amended (42 U.S.C.

3001 et seq.).

Area agency on aging means an area agency on aging designated under

section 305(a)(2)(A) of the OAA or a [[Page 26582]] State agency

performing the functions of an area agency on aging under section

305(b)(5) of the OAA.

Authorized position means an enrollment opportunity during a

program year. The number of authorized positions is derived by dividing

the total amount of funds appropriated during a program year by the

national average unit cost per enrollee for that program year as

determined by the Department. The national average unit cost includes

all administration costs, other enrollee costs, and enrollee wage and

fringe benefit costs. An allotment of the total dollars for the grantee

is divided by the national unit cost to determine the total number of

authorized positions for each grant agreement.

Community service means social, health, welfare, and educational

services (particularly literacy tutoring); legal assistance, and other

counseling services, including tax counseling and assistance and

financial counseling; library, recreational, day care and other similar

services; conservation, maintenance, or restoration of natural

resources; community betterment or beautification; pollution control

and environmental quality efforts; weatherization activities; and

includes inter-generational projects; but is not limited to the above.

It excludes building and highway construction (except that which

normally is performed by the project sponsor) and work which primarily

benefits private, profitmaking organizations. [Section 507(2) of the

OAA.]

Department and DOL mean the United States Department of Labor,

including its agencies and organizational units.

Disability means a physical or mental impairment of an individual

that substantially limits one or more major life activities; a record

of such impairment; or being regarded as having such an impairment. [29

CFR parts 32 and 34.]

Dual eligibility means individuals eligible under title V who are

enrolled in a joint program established under a written financial or

non-financial agreement to jointly operate programs with JTPA are

deemed to satisfy the requirements of all JTPA programs funded under

Title II-A of the JTPA.

Eligible individual means a person who is 55 years of age, or

older, and who has a low income as defined in this section. [Section

507(1) of the OAA.]

Eligible organization means an organization which is legally

capable of receiving and using Federal funds under the OAA and entering

into a grant or other agreement with the Department to carry out the

provisions of title V of the OAA. [Section 502(b)(1) of the OAA.]

Employment and training program(s) means publicly funded efforts

designed to offer employment, training and/or placement services which

enhance an individual's employability. The term is used in this part to

include, but is not limited to, the JTPA or similar legislation and

State or local programs of a similar nature.

Enrollee means an individual who is eligible, receives services,

and is paid wages for engaging in community service assignments under a

project.

Grantee means an eligible organization which has entered into a

grant agreement with the Department under this part.

Greatest economic need means the need resulting from an income

level at or below the poverty line based on guidelines provided by the

Department.

Greatest social need, as defined at section 102(a)(30) of the OAA,

means the need caused by noneconomic factors which include:

(1) Physical and mental disabilities;

(2) Language barriers; and

(3) Cultural, social, or geographical isolation, including

isolation caused by racial or ethnic status.

Host agency means a public agency or a private non-profit

organization, other than a political party or any facility used or to

be used as a place for sectarian religious instruction or worship,

exempt from taxation under the provisions of section 501(c)(3) of the

Internal Revenue Code of 1986, which provides a work site and

supervision for an enrollee.

Individual development plan means a plan for an enrollee which

shall include an employment goal, achievement objectives, and

appropriate sequence of services for the enrollee based on an

assessment conducted by the grantee or subgrantee and jointly agreed

upon by the enrollee.

JTPA means the Job Training Partnership Act (29 U.S.C. 1501 et

seq.).

Low income means an income of the family which, during the

preceding six months on an annualized basis or the actual income during

the preceding 12 months, whichever is more beneficial to the applicant,

is not more than 125 percent of the poverty levels established and

periodically updated by the U.S. Department of Health and Human

Services. In addition, an individual who receives, or is a member of a

family which receives, regular cash welfare payments shall be deemed to

have a low income for purposes of this part.

Poor employment prospects means the unlikelihood of an otherwise

eligible individual obtaining employment without the assistance of this

or other employment and training programs. Persons with poor employment

prospects include, but are not limited to, those without a substantial

employment history, basic skills, English-language proficiency, or

displaced homemakers, school dropouts, disabled veterans, homeless or

residing in socially and economically isolated rural or urban areas

where employment opportunities are limited.

Program year means the one-year period covered by a grant agreement

beginning July 1 and ending on June 30.

Project means an undertaking by a grantee or subgrantee, pursuant

to a grant agreement between the Department and the grantee, which

provides for community service opportunities for eligible individuals

and the delivery of associated services.

Reallocation means a redistribution of funds by a grantee.

Reallotment means the redistribution of allotted title V funds by

the Department from one State to another State(s) or from one grantee

to another grantee.

Residence means an individual's declared dwelling place or address.

No requirement pertaining to length of residency prior to enrollment

shall be imposed.

SCSEP means the Senior Community Service Employment Program as

authorized under title V of the OAA.

State agency on aging means the sole agency designated by the

State, in accordance with regulations of the Assistant Secretary on

Aging, pursuant to section 305(a)(1) of the 0AA.

Subgrantee means the legal entity to which a subgrant is awarded by

a grantee and which is accountable to the grantee (or higher tier

subgrantee) for the use of the funds provided.

Title V of the OAA means 42 U.S.C. 3056 et seq.

Subpart B--Grant Planning and Application Procedures

Sec. 641.201 Allotment and allocation of title V funds.

(a) Allotment. The Secretary shall allot funds for projects in each

State in accordance with the distribution requirements contained in

section 506(a) of the OAA.

(b) Within-State apportionment. The amount allotted for projects

within a State shall be apportioned among areas within the State in an

equitable manner, taking into consideration:

(1) The proportion which eligible individuals in each such area

bears to the total number of such persons, respectively, in that State;

[[Page 26583]]

(2) The relative distribution of such individuals residing in rural

and urban areas within the State; and

(3) The relative distribution of such individuals who are

individuals with the greatest economic need, such individuals who are

minority individuals, and such individuals with greatest social need.

(c) Annual report of funds allocated by state. The State agency for

each State receiving funds or a sponsor designated by the Department

shall report at the beginning of each fiscal year on such State's

status relative to section 506(c) of the OAA. Each State's report shall

include names and geographic locations of all projects receiving title

V funds for projects in the State. All grantees and subgrantees

operating in a State shall provide information necessary to compile the

report. [Section 506(d) of the OAA.]

Sec. 641.202 Eligibility for title V funds.

Agencies and organizations eligible to receive title V funds shall

be those specified in sections 502(b) and 506(a) of the OAA.

Sec. 641.203 Soliciting applications for title V funds.

The Department may solicit or request organizations to submit

applications for funds.

Sec. 641.204 Grant application requirements.

(a) Schedules. The Department shall establish, by administrative

directive, schedules for submittal of grant preapplications and

applications; the contents of grant applications, including goals and

objectives; amounts of grants; and grant budget and narrative formats.

(b) Intergovernmental reviews. Grant applicants shall comply with

the requirements of the Department's regulation, at 29 CFR part 17,

which implements the intergovernmental review of Department programs

and activities. A Preapplication for Federal Assistance form (SF-424)

filed as a result of the intergovernment review system shall contain an

attachment which, at a minimum, lists the proposed number of authorized

community service positions in each county, or other appropriate

jurisdiction within the affected State. Whenever a national

organization or other program grantee or subgrantee proposes to conduct

projects within a planning and service area in a State, such

organization or program grantee is responsible for sharing their

applications with area agencies on aging and other SCSEP sponsors in

the area prior to the award of the funds in accord with guidelines

issued by the Department.

(c) Subgrants. A grant applicant planning to award funds by

subgrant shall:

(1) Outline the nature and extent of the planned use of such funds;

and

(2) Assure that in the event that a subgrant agreement is canceled

in whole or in part, the grantee will provide continuity of services to

enrollees.

Sec. 641.205 Responsibility review.

(a) In order to enter into and continue a grant relationship with

DOL, an organization (applicant) shall be responsible. To determine

responsibility, DOL conducts a preaward review of all grant applicants.

As part of this review, DOL applies 13 basic responsibility tests to

each applicant, included in paragraphs (b) and (c) of this section.

(b) If a grant applicant fails either of the following two

responsibility tests, it shall not be designated as a grantee:

(1) The Department's efforts to recover debts from the applicant

(for which three demand letters have been sent) established by final

Department action have been unsuccessful, or the applicant has failed

to comply with an approved repayment plan.

(2) Fraud or criminal activity has been determined to exist within

the organization.

(c) Eleven additional basic responsibility tests are applied to

each grant applicant. Failure to meet any one of these tests does not

establish that the applicant is not responsible, unless the failure is

substantial or persistent. These tests are as follows:

(1) Serious administrative deficiencies have been identified, such

as failure to maintain a financial management system as required by

Federal regulations.

(2) Willful obstruction of the monitoring process.

(3) Failure to meet performance requirements.

(4) Failure to correct deficiencies brought to the grantee's

attention in writing as a result of monitoring activities, reviews,

assessments, etc.

(5) Failure to submit correct grant closeout documents within 90

days after expiration of the grant, unless an extension has been

requested and granted.

(6) Failure to return outstanding cash advances within 90 days of

the expiration date of the grant, unless an extension has been

requested and granted, or the funds have been authorized to be retained

for use on other grants.

(7) Failure to submit correct required reports by established due

dates.

(8) Failure to properly report and dispose of government property

as instructed by DOL.

(9) Failure to maintain cost controls resulting in excess cash on

hand.

(10) Failure to timely comply with the audit requirements of 29 CFR

part 96.

(11) Final disallowed costs in excess of five percent of the grant

award.

Sec. 641.206 Grant application review.

(a) The Department shall review each timely grant application

submitted by an eligible organization.

(b) In reviewing and considering an application, the Department

shall determine the following:

(1) The availability of funds for the proposed grant;

(2) Whether the application is in accordance with the Department's

instructions;

(3) Whether the application complies with the requirements of the

OAA and this part;

(4) Whether the application offers the best prospect of serving

appropriate geographic areas; and

(5) Whether the application demonstrates the effective use of

funds.

Sec. 641.207 Negotiation.

(a) The Department may negotiate with an eligible organization to

arrive at a grant agreement if the application generally meets

requirements set forth in this part.

(b) The subjects of negotiation may include, but are not limited

to, the following:

(1) Project components, including community service assignments and

geographic locations of authorized positions;

(2) Subproject(s), if any;

(3) Funding level, including all budget line items; and

(4) Performance goals.

Sec. 641.208 Rejection of grant application or project components.

(a) The Department may question any proposed project component if

it believes that the component will not serve the purposes of the OAA;

if negotiation does not produce a mutually acceptable conclusion, it

may reject this grant application.

(b) If the Department rejects an application, as set forth in

paragraph (a) of this section, the Department may solicit applications

from other eligible organizations in order to arrive at a grant

agreement.

(c) When an application is not approved, the Department shall

notify the applicant within a reasonable time in writing and state the

reason(s) for rejection. [[Page 26584]]

(d) Rejection of a proposal or application is a final Departmental

action which is not subject to further administrative review. Rejection

will not affect future consideration of the applicant for other

projects as long as the organization meets the eligibility criteria.

Sec. 641.209 Award of funds.

When the applicant is a unit of State government or a public or

private non-profit organization, the award of funds to a grantee shall

be accomplished through the execution of a grant agreement prepared by

the Department. When the applicant is a unit of the Federal Government,

other than the Department, the award of funds shall be accomplished

through an interagency agreement.

Subpart C--Grant Operations

Sec. 641.301 General.

(a) This subpart establishes basic grant operation standards and

procedures to be followed by all organizations receiving title V funds

for the purpose of operating SCSEP grant agreements and projects.

(b) The dual purposes of an SCSEP project are to provide useful

part-time community service assignments for persons with low incomes

who are 55 years old or older while promoting transition to

unsubsidized employment. Grantees and subgrantees shall develop

appropriate work assignments for eligible individuals which will result

in the provision of community services as defined in sections 502(b)

and 507(2) of the OAA, and Sec. 641.102 and will promote unsubsidized

employment opportunities.

Sec. 641.302 Grantee responsibilities.

The grantee shall remit to eligible individuals wages, for

community service assignments, and provide skill enhancement

opportunities, periodic physical examinations, personal and employment-

related counseling, assistance in transition to unsubsidized employment

where feasible, and other benefits as approved by the Department.

(a) grantees are responsible for:

(1) Following and enforcing the requirements set forth in the OAA

and this part;

(2) Implementing and carrying out projects in accordance with the

provisions of the grant agreement; and

(3) Assuring that, to the extent feasible, such projects will serve

the needs of minority, limited English-speaking, and Indian eligible

individuals, and eligible individuals who have the greatest economic

need, at least in proportion to their numbers in the State, and take

into consideration their rates of poverty and unemployment based on the

best available information.

(b) The grantee periodically shall monitor the performance of

grant-supported activities to assure that project goals are being

achieved and that the requirements of the OAA and this part are being

met.

(c) The grantee or subgrantee shall obtain and record the personal

information necessary for a proper determination of eligibility for

each individual and maintain documentation supporting the eligibility

of enrollees.

(d) Each grantee or subgrantee shall make efforts to provide

equitable services among substantial segments of the population

eligible for participation in SCSEP. Such efforts shall include, but

not be limited to: outreach efforts to broaden the composition of the

pool of those considered for participation, to include members of both

sexes, various race/ethnic groups and individuals with disabilities.

Sec. 641.303 Cooperative relationships.

(a) Each grantee or subgrantee shall, to the maximum extent

feasible, cooperate with other agencies, including agencies conducting

programs under the JTPA, to provide services to elderly persons, to

persons with low incomes, and with agencies providing employment and

training services.

(b) The cooperation described in paragraph (a) of this section

shall include, but not be limited to:

(1) Selection of community service assignment occupational

categories, work assignments, and host agencies to provide a variety of

community service opportunities for enrollees and to produce a variety

of federally funded services which respond to the community's total

needs and initiatives.

(2) Establishment of cooperative relations with the State agency on

aging designated under section 305(a)(1) of the OAA and with area

agencies on aging designated under section 305(a)(2) of the OAA for the

purpose of obtaining services as authorized under titles III, IV, and

VI of the OAA to increase the likelihood of receipt of unsubsidized

employment opportunities and supportive services that are available.

Existing services provided under the authority of section 321(a) of the

OAA shall be used first by grantee or subgrantee.

(3) Establishment of cooperative relations with other employment

and training organizations including the State and local JTPA and the

Carl D. Perkins Act programs to insure that project enrollees can

benefit from such cooperative activities as dual eligibility, shared

assessments, training and referral.

(4) Establishment of cooperative relations with State employment

security agencies to insure that enrollees are made aware of services

available from these agencies.

(c) Whenever a national organization or other program sponsor

conducts a project within a planning and service area in a State, such

an organization or program sponsor shall conduct such a project in

consultation with the area agency on aging of the planning and service

area and shall submit to the State agency and the area agency on aging

a description of such project to be conducted in the State including

the location of the project, 30 days prior to undertaking the project,

for review and comment to assure efficient and effective coordination

of programs under this part.

Sec. 641.304 Recruitment and selection of enrollees.

Grantees and subgrantees shall use methods of recruitment and

selection (including notifying the State employment security agency

when vacancies occur) which will assure that the maximum number of

eligible individuals will have an opportunity to participate in the

program. Recruitment efforts shall be designed, to the extent feasible,

to assure equitable distribution of services to groups described in

Sec. 641.302(e). [Section 502(b)(1)(H) of the OAA.]

Sec. 641.305 Enrollment eligibility.

(a) General. Eligibility criteria set forth in this section apply

to all SCSEP applicants and enrollees, including the following

individuals:

(1) Each individual seeking initial enrollment;

(2) Each individual seeking reenrollment after termination from the

SCSEP because of loss of unsubsidized employment through no fault of

their own, including illness; and

(3) Each enrollee seeking recertification for continued enrollment.

(b) Eligibility criteria. To be eligible for initial enrollment,

each individual shall meet the following criteria for age, income, and

place of residence:

(1) Age. Each individual shall be no less than 55 years of age. No

person whose age is 55 years or more shall be determined ineligible

because of age, and no upper age limit shall be imposed for initial or

continued enrollment. [Section 502 of the OAA.]

(2) Income. The income of the family of which the individual is a

member [[Page 26585]] shall not exceed the low-income standards defined

in Sec. 641.102 and issued by the Department. In addition, a disabled

person may be treated as a ``family of one'' for income eligibility

purposes.

(3) Residence. Each individual, upon initial enrollment, shall

reside in the State in which the project is authorized.

(c) No additional eligibility requirement. Grantees and subgrantees

shall not impose any additional condition or requirement for enrollment

eligibility unless required by Federal law.

(d) Dual Eligibility. Individuals eligible under title V of the OAA

who are enrolled in a joint program established under a written

financial or non-financial agreement to jointly operate programs with

JTPA shall be deemed to satisfy the requirements of JTPA Title II-A.

(e) Special responsibilities of the grantees and subgrantee(s)

relating to eligibility.

(1) Each grantee or subgrantee shall recertify the income of each

enrollee under its grant or subgrant, respectively, once each project

year, according to the schedule set forth in the grant agreement and

shall maintain documentation to support the recertification. Enrollees

found to be ineligible for continued enrollment because of income shall

be given, by the grantee or subgrantee, a written notice of termination

and shall be terminated 30 days after the notice. No enrollee shall

participate in a community service position for more than 12 months

without having his or her income recertified.

(2) If, at any time, the grantee or a subgrantee determines that an

enrollee was incorrectly declared eligible as a direct result of false

information given by that individual, the individual shall be given a

written notice explaining the reason or reasons for the determination

and shall be terminated immediately.

(3) If, at any time, the grantee or subgrantee determines that an

enrollee was incorrectly declared eligible through no fault of the

enrollee, the grantee or subgrantee shall give the enrollee immediate

written notice explaining the reason or reasons for termination, and

the enrollee shall be terminated 30 days after the notice.

(4) When a grantee or subgrantee makes an unfavorable determination

on continued eligibility, it shall explain in writing to the enrollee

the reason(s) for the determination and shall provide notice of the

right of appeal in accordance with the required procedures set forth in

Sec. 641.324.

(5) When a grantee or subgrantee terminates an enrollee for cause,

it shall inform the enrollee, in writing, of the reason(s) for

termination and of the right of appeal in accordance with the required

procedures set forth in Sec. 641.324.

(6) When a grantee or subgrantee makes an unfavorable determination

of enrollment eligibility pursuant to paragraph (e) (1) or (3) of this

section, it should assure that the individual is given a reason for

non-enrollment and, when feasible, should refer the individual to other

potential sources of assistance.

Sec. 641.306 Enrollment priorities.

(a) As set forth in sections 502(b)(1)(M) and 507(1) of the OAA,

enrollment priorities for filling all positions shall be as follows:

(1) Eligible individuals with the greatest economic need;

(2) Eligible individuals who are 60 years old or older; and

(3) Eligible individuals who seek re-enrollment following

termination of an unsubsidized job through no fault of their own or due

to illness, provided that re-enrollment is sought within one year of

termination.

(b) Within all enrollment priorities, those persons with poor

employment prospects shall be given preference.

(c) Enrollment priorities established in this section shall apply

to all vacant community service positions, but shall not be interpreted

to require the termination of any eligible enrollee. The priorities do

not apply to the experimental private sector projects authorized by

section 502(e) of the OAA.

Sec. 641.307 [Reserved]

Sec. 641.308 Orientation.

(a) Enrollee. The grantee or subgrantee shall provide orientation

to eligible individuals who are enrolled as soon as practicable after a

determination of eligibility. The orientation shall provide, as

appropriate, information related to: project objectives; community

service assignments; training; supportive services; responsibilities,

rights, and duties of the enrollee; permitted and prohibited political

activities; plans for transition to unsubsidized employment and a

discussion of safe working conditions at the host agencies.

(b) Host agency. The grantee or a subgrantee shall provide to those

individuals who will supervise enrollees at the host agencies, an

orientation similar to the one described in paragraph (a) of this

section. This is to assure that enrollees will receive adequate

supervision and opportunities for transitioning to the host agency

staff or other unsubsidized employment.

(c) Supervision. The grantee or subgrantee shall ensure that host

agencies provide adequate supervision, adequate orientation and

instruction regarding, among other things, job duties and safe working

procedures.

Sec. 641.309 Assessment and reassessment of enrollees.

(a) General. The grantee or subgrantee shall assess each enrollee

under the grant or subgrant, respectively, to determine the most

suitable community service assignment and to identify appropriate

employment, training, and community service objectives for each

individual. The assessment shall be made in partnership with the new

enrollee and should consider the individual's preference of

occupational category, work history, skills, interests, talents,

physical capabilities, need for supportive services, aptitudes,

potential for performing proposed community service assignment duties,

and potential for transition to unsubsidized employment.

(b) Assessment of physical capabilities. The assessment of each

enrollee shall take into consideration his or her physical

capabilities. Assessments of physical ability shall be consistent with

section 504 of the Rehabilitation Act of 1973, as amended (section

504), and the Americans with Disabilities Act of 1990 (ADA).

(c) Assignment. The grantee or subgrantee shall seek a community

service assignment which will permit the most effective use of each

enrollee's skills, interests, and aptitudes.

(d) Individual development plans. The grantee and subgrantee shall

use the assessment or reassessment as a basis for developing or

amending an individual development plan (IDP). The IDP shall be

developed in partnership with the enrollee to reflect the needs of the

enrollee as indicated by the assessment, as well as the expressed

interests and desires of the enrollee.

(e) Review of IDP plan. The grantee and subgrantee shall review the

IDP at least once in a 12 month period for the following purposes: to

evaluate the progress of each enrollee in meeting the objectives of the

IDP; to determine each enrollee's potential for transition to

unsubsidized employment; to determine the appropriateness of each

enrollee's current community service assignment; and to review progress

made toward meeting their training and employment objectives.

[[Page 26586]]

(f) Alternative assignment. The sponsor may develop an alternative

assignment for an enrollee, when feasible, should there be one of the

following determinations:

(1) That a different community service assignment will provide

greater opportunity for the use of an enrollee's skills and aptitudes;

(2) That an alternative assignment will provide work experience

which will enhance the potential for unsubsidized employment; or

(3) That an alternative assignment will otherwise serve the best

interests of the enrollee.

(g) Minimum requirements. The assessments and reassessments

required by this section shall meet minimum requirements issued by the

Department on assessment, and subsequent determinations are to be

recorded in the enrollee's IDP, to become a part of each enrollee's

permanent record.

(h) Recent assessments. Assessments of an enrollee, prepared by

another employment or training program (such as a program under the

JTPA or the Carl D. Perkins Vocational and Applied Technology Act) may

be substituted for one prepared by the grantee or subgrantee if the

training program prepared the assessment within the last year prior to

applying for SCSEP. [section 502(b)(1)(M) of the OAA.]

Sec. 641.310 Community service assignments.

(a) Assignment to community service. After the completion of an

enrollee's orientation and initial training, if any, the grantee or

subgrantee shall refer the enrollee, as soon as possible, to a useful

part-time community service assignment, if appropriate, according to

the IDP.

(1) Each enrollee shall be placed in a community service assignment

which contributes to the general welfare of the community and provides

services related to publicly-owned and operated facilities and

projects, or projects sponsored by organizations other than political

parties, exempt from taxation under the provisions of section 501(c)(3)

of the Internal Revenue Code of 1986. Project sponsors may provide

enrollees with opportunities to assist in the administration of the

SCSEP.

(2) The enrollee shall not be assigned to work involving the

construction, operation, or maintenance of any facility used or to be

used as a place for sectarian religious instruction or worship, or to

work which primarily benefits private, profit-making organizations.

[Sections 502(b)(1)(A), (C), and (D) and 507(2) of the OAA.]

(b) Hours of community service assignments.

(1) Each enrollee's community service assignment shall not exceed

1,300 hours during a 12-month period specified in the grantee's

agreement. The 1,300 hours includes paid hours of orientation,

training, sick leave, and vacation and hours of enrollment provided by

all grantees and subgrantees. No enrollee shall be paid for more than

1,300 hours in any 12-month period. [Section 508(a)(2) of the OAA.]

(2) The grantee or subgrantee shall not require an enrollee to

participate more than 20 hours during one week; however, hours may be

extended with the consent of the enrollee.

(3) The grantee or subgrantee shall not offer an enrollee an

average of fewer than 20 hours of paid participation per week. Shorter

periods may be authorized by the grant agreement, in writing by the

Department, or by written agreement between an enrollee and a grantee

or subgrantee. [Section 508(a)(2) of the OAA.]

(4) The grantee or subgrantee shall, to the extent possible, ensure

that the enrollee works during normal business hours, if the enrollee

so desires.

(c) Location. The enrollee shall be employed at work sites in or

near the community where the enrollee resides. [Section 502(b)(1)(B) of

the OAA.]

(d) Working conditions for enrollees. Enrollees shall not be

permitted to work in a building or surroundings or under conditions

which are unsanitary, hazardous, or dangerous to the enrollees' health

or safety. The grantee or subgrantee shall make periodic visits to the

enrollees' work site(s) to assure that the working conditions and

treatment of the enrollee are consistent with the OAA and this part.

[Section 502(b)(1)(J) of the OAA.]

Sec. 641.311 Enrollee wages and fringe benefits.

(a) Wages. Upon engaging in part-time community service

assignments, including orientation and training in preparation for

community service assignments, each enrollee shall receive wages at a

rate no less than the highest applicable rate:

(1) The minimum wage which would be applicable to the enrollee

under the Fair Labor Standards Act of 1938;

(2) The State or local minimum wage for the most nearly comparable

covered employment; or

(3) The prevailing rates of pay for persons employed in similar

public occupations by the same employer.

(b) Fringe benefits.

(1) The grantee or subgrantee shall ensure that enrollees receive

all fringe benefits required by law.

(2) Within a project or subproject, fringe benefits shall be

provided uniformly to all enrollees, unless the Department agrees to

waive this provision due to a determination that such a waiver is in

the best interests of applicants, enrollees, and the project

administration.

(3) Physical examination.

(i) Each enrollee shall be offered the opportunity to take a

physical examination annually. A physical is a fringe benefit, and is

not an eligibility criterion. The examining physician shall provide, to

the enrollee only, a written report of the results of the examination.

The enrollee may, at his or her option, provide the grantee or

subgrantee a copy of the report. The results of the physical

examination shall not be taken into consideration in determining

placement into a community service assignment.

(ii) An enrollee may refuse the physical examination offered. In

such a case, the grantee or subgrantee should document this refusal,

through a signed waiver or other means, within 60 work days after

commencement of the community service assignment. Thereafter, grantees

or subgrantees shall document an enrollee's refusal of the annual

physical examination.

(c) Retirement. Expenditures of grant funds for contributions into

a retirement system or plan are prohibited, unless the grantee has

documentation on hand showing that:

(1) The costs are allowable under the appropriate cost principles

indicated at Sec. 641.403(b); and

(2) Such contributions bear a reasonable relationship to the cost

of providing such benefits to enrollees because:

(i) the benefits vest at the time contributions are made on behalf

of the enrollees; or

(ii) the charges to SCSEP funds are for contributions on behalf of

enrollees to a ``defined benefit'' type of plan which do not exceed the

amounts reasonably necessary to provide the specified benefit to

enrollees, as determined under a separate actuarial determination.

(d) Workers' compensation. Where an enrollee is not covered by the

State workers' compensation law, the grantee or subgrantee shall

provide the enrollee with workers' compensation benefits equal to that

provided by law for covered employment. [Section 504(b) of the OAA.]

(e) Unemployment compensation. The grantee is authorized to pay the

cost of unemployment insurance for covered [[Page 26587]] enrollees,

where required by law. [Section 502(b)(1)(O) of the OAA.]

Sec. 641.312 Enrollee supportive services.

(a) The grantee or subgrantee shall provide supportive services

designed to assist the enrollee in participating successfully in

community service assignments and, where appropriate, to prepare and

assist the enrollee in obtaining unsubsidized employment. To the extent

feasible, the grantee or subgrantee shall utilize supportive services

available from other titles of the OAA, particularly those administered

by area agencies on aging and other funding sources.

(b) Supportive services may include, but need not be limited to,

all or some of the following:

(1) Counseling or instruction designed to assist the enrollee to

participate successfully in community service assignments or to obtain

unsubsidized employment.

(2) Counseling designed to assist the enrollee personally in areas

such as health, nutrition, social security benefits, Medicare benefits,

and retirement laws.

(3) Incidentals, including, but not limited to: work shoes, badges,

uniforms, safety glasses, eyeglasses, and hand tools, may be provided

if necessary for successful participation in community service

assignments and if not available from other sources.

(4) Periodic meetings on topics of general interest, including

matters related to health, job seeking skills, safety, and consumer

affairs.

(5) Enrollee transportation.

(i) Enrollee transportation may be paid if transportation from

other sources at no cost to the project is unavailable and such

unavailability is documented. When authorized in the grant agreement,

transportation may be provided for enrollees from home to work, to

training or to supportive services. [Section 502(b)(1)(L) of the OAA.]

(ii) Grant funds may not be expended to support the transportation

costs of host agencies or programs funded by other than title V of the

OAA, except where provided by Federal law.

Sec. 641.313 Training.

(a) The grantee or subgrantee shall provide or arrange for training

specific to an enrollee's community service assignment. Training may be

provided through lectures, seminars, classroom instruction, individual

instruction or other arrangements including, but not limited to,

arrangements with employment and training programs. The grantee or the

subgrantee is encouraged to obtain such services through locally

available resources, including employment and training programs, as

defined in Sec. 641.103, and through host agencies, at no cost or

reduced cost to the project. [Section 502(b)(1)(I) of the OAA.]

(b) Training shall consist of up to 500 hours per grant year and

shall be consistent with the enrollee's IDP. Such training may cover

all aspects of training; e.g., skill, job search, etc. Enrollees shall

not be enrolled solely for the purpose of receiving job search and job

referral services. Waivers for additional hours of training will be

considered on an exception basis.

(c) In addition to training in preparation for community service

assignments, as described in this section, a grantee or subgrantee is

encouraged to arrange for, or directly provide, skills-training

opportunities beyond the SCSEP community service training activities

which will permit the enrollee to acquire or improve skills, including

literacy training, applicable in community service assignment or for

unsubsidized employment.

(d) A grantee or subgrantee, to the extent feasible, shall arrange

skill-training for the enrollee which is realistic and consistent with

his or her IDP. A grantee or subgrantee shall place major emphasis on

the training available through on-the-job experience at SCSEP work

sites, thereby retaining the community service focus of the SCSEP.

(e) An enrollee engaging in skills-related training, as described

in paragraphs (c) and (d) of this section, may be reimbursed for the

documented travel costs and room and board necessary to engage in such

training. [Section 502(b)(1)(I) of the OAA.]

(f) Whenever possible a grantee or subgrantee shall seek to obtain

all training for enrollees reduced or no cost to title V from such

sources as the JTPA and the Carl D. Perkins Vocational and Applied

Technology Education Act. Where training is not available from other

sources, title V funds may be used for training.

(g) Nothing in this section shall be interpreted to prevent or

limit an enrollee from engaging in self-development training available

from sources other than title V of the OAA during hours other than

hours of community service assignment.

(h) Joint programming, including co-enrollment when appropriate,

between title V programs and programs authorized by the Job Training

Partnership Act, the Community Services Block Grant Act, or the Carl D.

Perkins Act is strongly encouraged.

Sec. 641.314 Placement into unsubsidized employment.

(a) In order to ensure that the maximum number of eligible

individuals have an opportunity to participate in community service

assignments, the grantee or subgrantee shall employ reasonable means to

place each enrollee into unsubsidized employment.

(b) To encourage the placement of the enrollee into an unsubsidized

job, the Department has established a goal of placing into unsubsidized

employment the number of enrollees which equals at least 20 percent of

the project's annual authorized positions. Whenever this goal is not

achieved, the grantee shall develop and submit a plan of action for

addressing this shortfall.

(c) The grantee or subgrantee may contact private and public

employers directly or through the State employment security agencies to

develop or identify suitable unsubsidized employment opportunities; and

should encourage host agencies to employ enrollees in their regular

work forces.

(d) The grantee or subgrantee shall follow-up on each enrollee who

is placed into unsubsidized employment and shall document such follow-

up at least once within 3 months of unsubsidized placement.

Sec. 641.315 Maximum duration of enrollment.

A maximum duration of enrollment may be established by the grantee

in the grant agreement, when authorized by the Department. Time limits

on enrollment shall be reasonable and IDPs shall provide for transition

to unsubsidized employment or other assistance before the maximum

enrollment duration has expired.

Sec. 641.316 Individual development plan-related terminations.

When an enrollee refuses to accept a reasonable number of referrals

or job offers to unsubsidized employment consistent with his or her IDP

and there are no extenuating circumstances, the enrollee may be

terminated from the SCSEP. Such a termination shall be consistent with

administrative guidelines issued by the Department and the termination

shall be subject to the applicable appeal rights and procedures

described in Sec. 641.324.

Sec. 641.317 Status of enrollees.

Enrollees who are employed in any project funded under the OAA are

not deemed to be Federal employees as a result of such employment.

[Section 504(a) of the OAA.] [[Page 26588]]

Sec. 641.318 Over-enrollment.

Should attrition or funding adjustments prevent a portion of

project funds from being fully utilized, the grantee may use those

funds during the period of the agreement to over-enroll additional

eligible individuals. The number over-enrolled may not exceed 20

percent of the total number of authorized positions established under

the grant agreement without the written approval of the Department.

Payments to or on behalf of enrollees in such positions shall not

exceed the amount of the unused funds available. Each individual

enrolled in such a position shall be informed in writing that the

assignment is temporary in nature and may be terminated. The grantee

shall first seek to maintain full enrollment in authorized positions

and shall seek to schedule all enrollments and terminations to avoid

excessive terminations at the end of the grant period.

Sec. 6541.319 [Reserved]

Sec. 641.320 Political patronage.

(a) No grantee may select, reject, promote, or terminate an

individual based on that individual's political affiliations or

beliefs. The selection or advancement of enrollees as a reward for

political services, or as a form of political patronage, is prohibited.

(b) There shall be no selection of subgrantees or host agencies

based on political affiliation.

Sec. 641.321 Political activities.

(a) General. No project under title V of the OAA or this part may

involve political activities.

(1) No enrollee or staff person may be permitted to engage in

partisan or nonpartisan political activities during hours for which

they are paid with SCSEP funds.

(2) No enrollee or staff person, at any time, may be permitted to

engage in partisan political activities in which such enrollee or staff

person represents himself or herself as a spokesperson of the SCSEP

program.

(3) No enrollee may be employed or out-stationed in the office of a

Member of Congress, a State or local legislator, or on any staff of a

legislative committee.

(4) No enrollee may be employed or out-stationed in the immediate

office of any elected chief executive officer(s) of a State or unit of

general government, except that:

(i) Units of local government may serve as host-agencies for

enrollees in such positions, provided that such assignments are

nonpolitical; and

(ii) Where assignments are technically in such offices, such

assignments actually are program activities not in any way involved in

political functions.

(5) No enrollee may be assigned to perform political activities in

the offices of other elected officials. However, placement of enrollees

in such nonpolitical assignments within the offices of such elected

officials is permissible, provided that grantees develop safeguards to

ensure that enrollees placed in these assignments are not involved in

political activities. These safeguards shall be described in the grant

agreement and shall be subject to review and monitoring by the grantee

and the Department.

(b) Hatch Act.

(1) State and local employees governed by 5 U.S.C. chapter 15 shall

comply with the Hatch Act provisions as interpreted and applied by the

Office of the Special Counsel.

(2) Each project subject to 5 U.S.C. chapter 15 shall display a

notice and shall make available to each person associated with such

project a written explanation, clarifying the law with respect to

allowable and unallowable political activities under 5 U.S.C. chapter

15 which are applicable to the project and each category of individuals

associated with such project. This notice, which shall have the

approval of the Department, shall contain the telephone number and

address of the DOL Inspector General. [Section 502(b)(1)(P) of the

OAA.] Enforcement of the Hatch Act shall be as provided at 5 U.S.C.

chapter 15.

Sec. 641.322 Unionization.

No funds provided under title V of the OAA or this part may be used

in any way to assist, promote, or deter union organizing.

Sec. 641.323 Nepotism.

(a) No grantee or subgrantee may hire, and no host agency may be a

work site for a person who works in an administrative capacity, staff

position, or community service position funded under title V of the OAA

or this part if a member of that person's immediate family is engaged

in a decision-making capacity (whether compensated or not) for that

project, subproject, grantee, subgrantee or host agency. This provision

may be waived by the Department at work sites on Native American

reservations and rural areas provided that adequate justification can

be documented, such as that no other persons are eligible for

participation.

(b) To the extent that an applicable State or local legal

requirement regarding nepotism is more restrictive than this provision,

that requirement shall be followed.

(c) For purposes of this section:

(1) Immediate family means wife, husband, son, daughter, mother,

father, brother, sister, son-in-law, daughter-in-law, mother-in-law,

father-in-law, brother-in-law, sister-in-law, aunt, uncle, niece,

nephew, stepparent, stepchild, grandparent, and grandchild.

(2) Engaged in an administrative capacity includes those persons

who, in the administration of projects, or host agencies, have

responsibility for, or authority over those with responsibility for,

the selection of enrollees from among eligible applicants.

Sec. 641.324 Enrollee and applicant complaint resolution.

(a) Each grantee shall establish and describe in the grant

agreement procedures for resolving complaints, other than those

described by paragraph (c) of this section, arising between the grantee

and an enrollee.

(b) Allegations of violations of federal law, other than those

described in paragraph (c) of this section, which cannot be resolved

within 60 days as a result of the grantee's procedures, may be filed

with the Chief, Division of Older Worker Programs, Employment and

Training Administration, U.S. Department of Labor, Washington, DC

20210.

(c) Grantees that do not receive any funds under the JTPA shall

process complaints of discrimination in accordance with 29 CFR parts 31

and 32. Grantees that receive any funds under JTPA shall process

complaints of discrimination in accordance with 29 CFR part 34.

(d) Except for complaints described in paragraphs (b) and (c) of

this section, the Department shall limit its review to determining

whether the grantee's appeal procedures were followed.

Sec. 641.325 Maintenance of effort.

(a) Employment of an enrollee funded under title V of the OAA or

this part shall be only in addition to budgeted employment which would

otherwise be funded by the grantee, subgrantee and the host agency(ies)

without assistance under the OAA. [Section 502(b)(1)(F) of the OAA.]

(b) Each project funded under title V of the OAA or this part:

(1) Should result in an increase in employment opportunities in

addition to those which would otherwise be available;

(2) Shall not result in the displacement of currently employed

workers, including partial displacement such as a reduction in hours of

non- [[Page 26589]] overtime work, wages, or employment benefits;

(3) Shall not impair existing contracts for service or result in

the substitution of Federal funds for other funds in connection with

work that would otherwise be performed;

(4) Shall not substitute project jobs for existing federally-

assisted jobs; and

(5) Shall not employ or continue to employ any enrollee to perform

work which is the same or substantially the same as that performed by

any other person who is on layoff. [Section 502(b)(1)(G) of the OAA.]

Sec. 641.326 Experimental private sector training projects.

(a) The Department may authorize a grantee to develop an

experimental job training project(s) designed to provide second career

training and the placement of eligible individuals in employment

opportunities with private business concerns. [Section 502(e) of the

OAA.]

(b) Experimental project agreements for training may be with

States, public agencies, non-profit private organizations, and private

business concerns.

(c) The geographic location of these projects shall be determined

by the Department to insure an equitable distribution of such projects.

(d) To the extent feasible, experimental projects shall emphasize

second-career training, and innovative work modes, including those with

reduced physical exertion, and placement into growth industries and

jobs reflecting new technologies.

(e) The Department shall establish by administrative guidelines the

application schedule, content, format, allocation levels and reporting

requirements for experimental projects.

(f) Current title V eligibility standards shall be used for

experimental projects unless the Department permits, in writing, the

use of another approved income index.

(g) Projects funded under section 502(e) of the OAA shall seek to

be coordinated with projects carried out under title II-A of the JTPA

to the extent feasible.

(h) National grantees shall distribute funds for experimental

projects in accordance with the State allocation in their title V

grant.

(i) A grantee may exclude a project, permitted under section 502(e)

of the OAA, from meeting the non-federal share requirement set forth in

Sec. 641.407; however, this exclusion does not relieve the grantee from

the matching requirement, under Sec. 641.407, which applies to the

entire grant.

Subpart D--Administrative Standards and Procedures for Grantees and

Limitations on Federal Funds

Sec. 641.401 General.

This subpart establishes limitations on title V funds to be used

for community service activities and describes, or incorporates by

reference, requirements for the administration of grants by the SCSEP

grantee.

Sec. 641.402 Administrative requirements.

(a) Except as otherwise provided in this part, title V funds shall

be administered in accordance with, and subject to, the Department's

regulations at 29 CFR parts 31, 32, 34, 93, 96, and 98. In addition,

projects and activities administered by State, local or Indian tribal

governments are also subject to the Department's administrative

requirements regulations at 29 CFR part 97; projects and activities

administered by institutions of higher education, hospitals, or other

non-profit organizations are subject to the Department's administrative

requirements regulations at 29 CFR part 95. Grantees of title V funds

shall be subject to any revisions of any implementing regulations cited

in this paragraph (a) on the effective date of such revisions.

(b) The administration of interagency agreements set forth in

subpart E of this part is not subject to paragraph (a) of this section.

Sec. 641.403 Allowable costs.

(a) General. The allowability of costs shall be determined in

accordance with the cost principles indicated in paragraph (b) of this

section, except as otherwise provided in this part.

(b) Applicable Cost Principles.

(1) The cost principles set forth in paragraphs (b)(1) through (4)

of this section apply to the organization incurring the costs:

(i) OMB Circular A-87--State, local or Indian tribal government;

(ii) OMB Circular A-122--Private, non-profit organization other

than:

(A) Institutions of higher education;

(B) Hospitals; or

(C) Other organizations named in OMB Circular A-122 (see sections

4.a. (Definitions) and 5 (Exclusions) of OMB Circular A-122);

(iii) OMB Circular A-21--Educational institution; or

(iv) 48 CFR part 31, subpart 31.2--Commercial organization (for-

profit organization, other than a hospital or other organizations named

in OMB Circular A-122).

(2) The OMB Circulars are available by writing to the Office of

Management and Budget, Office of Administration, Publications Unit,

Room G-236, New Executive Office Building, Washington, DC 20503, or by

calling 202-395-7332.

(c) Lobbying costs. In addition to the prohibition contained in 29

CFR part 93 and in accordance with limitations on the use of

appropriated funds in Department of Labor Appropriation Acts, title V

funds shall not be used to pay any salaries or expenses related to any

activity designed to influence legislation or appropriations pending

before the Congress of the United States.

(d) Building repairs and acquisition costs. No federal grant funds

provided to a grantee or subgrantee under title V of the OAA or this

part may be expended directly or indirectly for the purchase, erection,

or repair of any building except for the labor involved in:

(1) Minor remodeling of a public building necessary to make it

suitable for use by project administrators;

(2) Minor repair and rehabilitation of publicly used facilities for

the general benefit of the community; and

(3) Minor repair and rehabilitation by enrollees of housing

occupied by persons with low incomes who are declared eligible for such

services by authorized local agencies.

(4) Accessibility and Reasonable Accommodation. Funds may be used

to meet a grantee or subgrantee's obligations to provide physical and

programmatic accessibility and reasonable accommodation as required by

section 504 of the Rehabilitation Act of 1973, as amended, and the

Americans with Disabilities Act of 1990.

(e) Allowable fringe benefit costs. The cost of the following

fringe benefits are allowable: initial and annual physical assessments,

annual leave, sick leave, holidays, health insurance, social security,

worker's compensation and any other fringe benefits approved in the

grant agreement and permitted by the appropriate Federal cost

principles found in OMB Circulars A-87 and A-122, except as limited for

retirement costs by Sec. 641.311(c).

Sec. 641.404 Classification of costs.

All costs must be charged to one of the following three cost

categories:

(a) Administration. The cost category of Administration shall

include, but need not be limited to, the direct and indirect costs of

providing:

(1) Administration, management, and direction of a program or

project;

(2) Reports on evaluation, management, community benefits, and

other aspects of project activity;

(3) Assistance of an advisory council, if any; [[Page 26590]]

(4) Accounting and management information systems;

(5) Training and technical assistance for grantee or subgrantee

staff;

(6) Bonding; and

(7) Audits.

(b) Enrollee wages and fringe benefits. The cost category of

Enrollee Wages and Fringe Benefits shall include wages paid to

enrollees for hours of community service assignments, as described in

Sec. 641.311, including hours of training related to a community

service assignment, and the costs of fringe benefits provided in

accordance with Sec. 641.311.

(c) Other enrollee costs. The cost category of Other enrollee costs

shall include all costs of functions, services, and benefits not

categorized as administration or enrollee wages and fringe benefits.

Other enrollee costs shall include, but shall not be limited to, the

direct and indirect costs of providing:

(1) Recruitment and selection of eligible enrollees as provided in

Secs. 641.304 and 641.305;

(2) Orientation of enrollees and host agencies as provided in

Sec. 641.308;

(3) Assessment of enrollees for participation in community service

assignments and evaluation of enrollees for continued participation or

transition to unsubsidized employment as provided in Sec. 641.309;

(4) Development of appropriate community service assignments as

provided in Sec. 641.310;

(5) Supportive services for enrollees, including transportation, as

provided in Sec. 641.312;

(6) Training for enrollees, including tuition; and

(7) Development of unsubsidized employment opportunities for

enrollees as provided in Sec. 641.314.

(d) Cost reductions. Grantees may lower administration costs or

other enrollee costs by assigning enrollees to activities which

normally would be charged to either of these cost categories. In such

instances, the costs of enrollees' wages and fringe benefits shall be

charged to the cost category of enrollee wages and fringe benefits.

[Section 502(b)(1)(A) of the OAA.]

Sec. 641.405 Limitations on federal funds.

(a) The limitations on federal funds set forth in this section

shall apply to SCSEP funds allotted to grantees for community service

activities. Cost categories, limitations, and periods during which

different limitations shall apply are set forth in paragraph (b) of

this section.

(b) The cost categories and the limitations which apply to them

shall be:

(1) Administration. The amount of federal funds expended for the

cost of administration during the program year shall be no more than

13.5 percent of the grant. The Department may increase the amount

available for the cost of administration to no more than 15 percent of

the project in accordance with section 502(c)(3) of the OAA.

(2) Enrollee wages and fringe benefits. The amount of federal funds

budgeted for enrollee wages and fringe benefits shall be no less than

75 percent of the grant.

Sec. 641.406 Administrative cost waiver.

(a) Based upon information submitted by a public or private

nonprofit agency or organization with which the Department has or

proposes to have an agreement, as set forth under section 502(b) of the

OAA, the Department may waive Sec. 641.405(b)(1) and increase the

amount available for paying the costs of administration to an amount

not to exceed 15 percent of the proposed federal costs of the grant.

Each waiver shall be in writing. The Department shall administer this

section in accordance with section 502(c)(3) (A) and (B) of the OAA.

(b) The waiver may be provided to grantees that demonstrate and

document reasonable and necessary:

(1) Major administrative cost increases;

(2) Operational requirements imposed by the Department;

(3) Increased costs associated with unsubsidized placement;

(4) Increased costs of providing specialized services to minority

groups; and

(5) The minimum amount necessary to administer the grant relative

to the available funds.

Sec. 641.407 Non-federal share of project costs.

The non-federal share of costs may be in cash or in-kind, or a

combination of the two, and shall be calculated in accordance with 29

CFR 97.24 or 29 CFR 95.23, as appropriate. The Department shall pay not

more than 90 percent of the cost of any project which is the subject of

an agreement entered into under the OAA, except that the Department is

authorized to pay all of the costs of any such project which is:

(a) An emergency or disaster project;

(b) A project located in an economically depressed area as

determined by the Secretary of Labor in consultation with the Secretary

of Commerce and the Director of the Office of Community Services of the

Department of Health and Human Services;

(c) A project which is exempted by law; or

(d) A project serving an Indian reservation that can demonstrate it

cannot provide adequate non-federal resources. [Sections 502(c) and

502(e) of the OAA.]

Sec. 641.408 Budget changes.

As an exception to 29 CFR 97.30(c)(1), Budget changes, 29 CFR

95.25, Revision of budget and program plans, the movement of Enrollee

wages and fringe benefits to any other budget category shall not be

permitted without prior written approval of the awarding agency. The

Department shall not approve any budget change which would result in

non-compliance with Sec. 641.405(b)(2).

Sec. 641.409 Grantee fiscal and performance reporting requirements.

(a) In accordance with 29 CFR 97.40 or 29 CFR 95.51, as

appropriate, each grantee shall submit a Senior Community Service

Employment Program Quarterly Progress Report (QPR). This report shall

be prepared to coincide with the ending dates for Federal fiscal year

quarters and shall be submitted to the Department no later than 30 days

after the end of the quarterly reporting period unless a waiver is

provided. If the grant period ends on a date other than the last day of

a federal fiscal year quarter, the last quarterly report covering the

entire grant period shall be submitted no later than 30 days after the

ending date unless a waiver is provided. The Department shall provide

instructions for the preparation of this report.

(b) In accordance with 29 CFR 97.41 or 29 CFR 95.52, as

appropriate, the following financial reporting requirements apply to

title V grants:

(1) An SF-269, Financial Status Report (FSR), shall be submitted to

the Department within 30 days after the ending of each quarter of the

program year unless a waiver is provided. A final FSR shall be

submitted within 90 days after the end of the grant unless a waiver is

provided.

(2) All FSR's shall be prepared on an accrual basis.

(c) In accordance with Departmental instructions, an equitable

distribution report of SCSEP positions by all grantees in each State

shall be submitted annually by the State agency receiving title V funds

or another project sponsor designated by the Department. (Approved

under the Office of Management and Budget Control No. 1205-0040)

[[Page 26591]]

Sec. 641.410 Subgrant agreements.

(a) The grantee is responsible for the performance of all

activities implemented under subgrant agreements and for compliance by

the subgrantee with the OAA and this part.

(b) No subgrant or other subagreement may provide for any

expenditure of funds beyond the ending date of the grant agreement.

(c) For purposes of this part, procurement, as described in 29 CFR

part 97 and 29 CFR 95.40 through 95.48, does not include the award or

administration of subgrant agreements.

Sec. 641.411 Program income accountability.

Any of the methods described at 29 CFR 97.25 or 29 CFR 95.24, as

appropriate, may be used to account for program income.

Sec. 641.412 Equipment.

Equipment purchased by a State grantee with title V funds prior to

July 1, 1989, shall be subject to 29 CFR 97.32.

Sec. 641.413 Audits.

Each grantee is responsible for complying with the Single Audit Act

of 1984 (31 U.S.C. 7501 et seq.) and 29 CFR part 96, the Department of

Labor regulation which implements Office of Management and Budget

Circular A-128, ``Audits of State and Local Governments''; or OMB

Circular 133, ``Audits of Institutions of Higher Education and Other

Nonprofit Institutions'', as appropriate.

Sec. 641.414 Grant closeout procedures.

Grantees shall follow the grant closeout procedures at 29 CFR 97.50

or 29 CFR 95.71, as appropriate. As necessary, the Department shall

issue supplementary closeout instructions for all title V grantees.

Sec. 641.415 Department of Labor appeals procedures for grantees.

(a) This section sets forth the procedures by which the grantee may

appeal a SCSEP final determination by the Department relating to costs,

payments, notices of suspension, and notices of termination other than

those resulting from an audit. Appeals of suspensions and terminations

for discrimination shall be processed under 29 CFR part 31, 32, or 34,

as appropriate.

(b) Appeals from a final disallowance of cost as a result of an

audit shall be made pursuant to 29 CFR part 96, subpart 96.6.

(c) Upon a grantee's receipt of the Department's final

determination relating to costs (except final disallowance of cost as a

result of an audit), payments, suspension or termination, the grantee

may appeal the final determination to the Department's Office of

Administrative Law Judges, as follows:

(1) Within 21 days of receipt of the Department's final

determination, the grantee may transmit by certified mail, return

receipt requested, a request for a hearing to the Chief Administrative

Law Judge, United States Department of Labor, 800 K Street, NW., room

400 N, Washington, DC 20001 with a copy to the Department official who

signed the final determination. The Chief Administrative Law Judge

shall designate an administrative law judge to hear the appeal.

(2) The request for hearing shall be accompanied by a copy of the

final determination, if issued, and shall state specifically those

issues of the determination upon which review is requested. Those

provisions of the determination not specified for review, or the entire

determination when no hearing has been requested, shall be considered

resolved and not subject to further review.

(3) The Rules of Practice and Procedures for Administrative

Hearings Before the Office of Administrative Law Judges, set forth at

29 CFR part 18, shall govern the conduct of hearings under this

section, except that:

(i) The appeal shall not be considered a complaint; and

(ii) Technical rules of evidence, such as the Federal Rules of

Evidence and subpart B of 29 CFR part 18, shall not apply to any

hearing conducted pursuant to this section. However, rules designed to

assure production of the most credible evidence available and to

subject testimony to test by cross-examination shall be applied where

reasonably necessary by the administrative law judge conducting the

hearing. The certified copy of the administrative file transmitted to

the administrative law judge by the official issuing the final

determination shall be part of the evidentiary record of the case and

need not be moved into evidence.

(4) The administrative law judge should render a written decision

no later than 90 days after the closing of the record.

(5) The decision of the administrative law judge shall constitute

final action by the Secretary of Labor unless, within 21 days after

receipt of the decision of the administrative law judge, a party

dissatisfied with the decision, or any part thereof, has filed

exceptions with the Secretary of Labor specifically identifying the

procedures, fact, law, or policy to which exception is taken. Any

exception not specifically urged shall be deemed to have been waived.

Thereafter, the decision of the administrative law judge shall become

the decision of the Secretary unless the Secretary of Labor, within 30

days of such filing, has notified the parties that the case has been

accepted for review.

(6) Any case accepted for review by the Secretary of Labor shall be

decided within 180 days of such acceptance. If not so decided, the

decision of the administrative law judge shall become the final

decision of the Secretary of Labor.

Subpart E--Interagency Agreements

Sec. 641.501 Administration.

(a) Federal establishments other than the Department of Labor which

receive and use funds under title V of the OAA or this part shall

submit to DOL project fiscal and progress reports as described in

Sec. 641.409.

(b) Non-DOL federal establishments which receive and use funds

under title V shall maintain the standard records on individual

enrollees and enrollee activities, in accordance with this part.

(c) The Department may provide title V funds to another federal

agency by a non-expenditure transfer authorization or by payments on an

advance or reimbursement basis.

(d) In aspects of project administration other than those described

in paragraphs (a) and (b) of this section, federal establishments which

receive and use funds under title V of the OAA may use their normal

administrative procedures.

Subpart F--Assessment and Evaluation

Sec. 641.601 General.

The Department shall assess each grantee and subgrantee to

determine whether it is carrying out the purposes and provisions of

title V of the OAA and this part in accordance with the OAA, this part

and the grant or other agreements. The Department also shall evaluate

the overall program conducted under title V of the OAA or this part to

aid in the administration of the SCSEP. The Department and individuals

designated by the Department may make site visits and conduct such

other monitoring activities as determined by SCSEP needs.

Sec. 641.602 Limitation.

In arranging for the assessment of a grantee, or the evaluation of

a subgrantee, or the evaluation of the overall program under title V of

the OAA or this part, the Department shall not use any individual,

institution, or [[Page 26592]] organization associated with any project

under title V of the OAA.

Signed at Washington, DC, this 5th day of May, 1995.

Robert B. Reich,

Secretary of Labor.

[FR Doc. 95-11949 Filed 5-16-95; 8:45 am]

BILLING CODE 4510-30-P