§1551. General program requirements

Except as otherwise provided, the following conditions are applicable to all programs under this chapter:

(a) Useful, needed, and equitable opportunity distribution

Each job training plan shall provide employment and training opportunities to those who can benefit from, and who are most in need of, such opportunities and shall make efforts to provide equitable services among substantial segments of the eligible population.

(b) No duplication of services

Funds provided under this chapter shall only be used for activities which are in addition to those which would otherwise be available in the area in the absence of such funds.

(c) Establishment relocation limitation; investigations; penalties for violations

(1) No funds provided under this chapter shall be used or proposed for use to encourage or induce the relocation, of an establishment or part thereof, that results in a loss of employment for any employee of such establishment at the original location.

(2) No funds provided under this chapter shall be used for customized or skill training, on-the-job training, or company specific assessments of job applicants or employees, for any establishment or part thereof, that has relocated, until 120 days after the date on which such establishment commences operations at the new location, if the relocation of such establishment or part thereof, results in a loss of employment for any employee of such establishment at the original location.

(3) If a violation of paragraph (1) or (2) is alleged, the Secretary shall conduct an investigation to determine whether a violation has occurred.

(4) If the Secretary determines that a violation of paragraph (1) or (2) has occurred, the Secretary shall require the State, service delivery area, or substate grantee that has violated paragraph (1) or (2) to-

(A) repay to the United States an amount equal to the amount expended in violation of paragraph (1) or (2), in accordance with subsection (d) or (e) of section 1574 of this title; and

(B) pay an additional amount equal to the amount required to be repaid under subparagraph (A), unless the State, service delivery area, or substate grantee demonstrates to the Secretary that it neither knew nor reasonably could have known (after an inquiry undertaken with due diligence) that it provided funds in violation of paragraph (1) or (2).

(5) Amounts received under paragraph (4)(B) shall be deposited in a special account in the Treasury for use by the Secretary for carrying out subchapter III of this chapter.

(d) Employment opportunity-directed training; competitive purchases of training packages; tuition charges; administrative costs limitation; placements

(1) Training provided with funds made available under this chapter shall be only for occupations for which there is a demand in the area served or in another area to which the participant is willing to relocate, and consideration in the selection of training programs may be given to training in occupations determined to be in sectors of the economy which have a high potential for sustained demand or growth.

(2) Efforts shall be made to develop programs which contribute to occupational development, upward mobility, development of new careers, and overcoming sex-stereotyping in occupations traditional for the other sex.

(3)(A) Commercially available training packages, including advanced learning technology, may be purchased for off-the-shelf prices and without requiring a breakdown of the cost components of the package if such packages are purchased competitively and include performance criteria.

(B) Tuition charges for training or education provided by an institution of higher education (as defined in section 1141(a) ¹ of title 20) or a proprietary institution of higher education (as defined in section 1088(b) ¹ of title 20), that are not more than the charges for such training or education made available to the general public, do not require a breakdown of cost components.

(C) With respect to funds provided from the allocation to a service delivery area for any program year that are expended by any community-based organization or nonprofit organization for the cost of administration under part A or C of subchapter II of this chapter, the service delivery area shall not be subject to the limitation contained in section 1518(b)(4)(A) of this title if-

(i) such funds are expended pursuant to an agreement under which not less than 90 percent of the funds provided to the community-based organization or nonprofit organization are to be expended for the costs of direct training and training-related and supportive services;

(ii) the expenditures of such funds are charged by the service delivery area to the appropriate cost category;

(iii) the expenditure of such funds does not result in the service delivery area exceeding the limitation contained in section 1518(b)(4)(A) of this title by more than 25 percent of such limitation; and

(iv) the service delivery area is in compliance with the limitation contained in section 1518(b)(4)(B) of this title for such program year, except that such limitation shall be reduced by a percentage equal to one-half of the percentage by which the expenditures of the service delivery area under this subparagraph exceed the limitation under section 1518(b)(4)(A) of this title.

(4) Placements made in unsubsidized employment shall be, to the extent practicable, in occupational areas related to the training provided to the participant.

(e) Area eligibility; limited exceptions; agreements

(1) Only eligible individuals residing in the service delivery area may be served by employment and training activities funded under subchapter II of this chapter, except that the job training plan may provide for limited exceptions to this requirement, including exceptions necessary to permit services to homeless individuals who cannot prove residence within the service delivery area.

(2) Any service delivery area may enter into an agreement or contract with another service delivery area (including a service delivery area that is a city or county within the same labor market) to pay or share the cost of educating, training, or placing individuals participating in programs assisted under this chapter, including the provision of supportive services. Such agreement or contract shall be approved by each private industry council providing guidance to the service delivery area and shall be described in the job training plan under section 1514 of this title.

(f) Council member conflict of interest

No member of any council under this chapter shall cast a vote on the provision of services by that member (or any organization which that member directly represents) or vote on any matter which would provide direct financial benefit to that member.

(g) Payments to employers: proportion and characterization; limitations; contracts; failure to provide long-term employment

(1) Payments to employers for on-the-job training shall not, during the period of such training, average more than 50 percent of the wages paid by the employer to such participants, and payments in such amount shall be deemed to be in compensation for the extraordinary costs associated with training participants under this chapter and in compensation for the costs associated with the lower productivity of such participants.

(2) On-the-job training authorized under the ² chapter for a participant shall be limited in duration to a period not in excess of that generally required for acquisition of skills needed for the position within a particular occupation, but in no event shall exceed 6 months, unless the total number of hours of such training is less than 500 hours. In determining the period generally required for acquisition of the skills, consideration shall be given to recognized reference material (such as the Dictionary of Occupational Titles), the content of the training of the participant, the prior work experience of the participant, and the service strategy of the participant.

(3)(A) Each on-the-job training contract shall-

(i) specify the types and duration of on-the-job training and the other services to be provided in sufficient detail to allow for a fair analysis of the reasonableness of proposed costs; and

(ii) comply with the applicable requirements of section 1574 of this title.

(B) Each on-the-job training contract that is not directly contracted by a service delivery area with an employer (but instead is contracted through an intermediary brokering contractor) shall, in addition to meeting the requirements of subparagraph (A), specify the outreach, recruitment, participant training, counseling, placement, monitoring, followup, and other services to be provided directly by the brokering contractor within its own organization, the services to be provided by the employers conducting the on-the-job training, and the services to be provided, with or without cost, by other agencies and subcontractors.

(C) If a brokering contractor enters into a contract with a subcontractor to provide training or other services, the brokering contractor shall ensure, through on-site monitoring, compliance with subcontract terms prior to making payment to the subcontractor.

(4) In accordance with regulations issued by the Secretary, on-the-job training contracts under this chapter shall not be entered into with employers who have received payments under previous contracts and have exhibited a pattern of failing to provide on-the-job training participants with continued long-term employment as regular employees with wages and employment benefits (including health benefits) and working conditions at the same level and to the same extent as other employees working a similar length of time and doing the same type of work.

(h) No needless duplication of governmental facilities or services

Funds provided under this chapter shall not be used to duplicate facilities or services available in the area (with or without reimbursement) from Federal, State, or local sources, unless the plan establishes that alternative services or facilities would be more effective or more likely to achieve performance goals.

(i) Responsibility of administrative entity for oversight

Each administrative entity shall be responsible for the allocation of funds and the eligibility of those enrolled in its programs and shall have responsibility to take action against its subcontractors, subgrantees, and other recipients to eliminate abuses in the programs they are carrying out, and to prevent any misuse of funds by such subcontractors, subgrantees, and other recipients. Administrative entities may delegate the responsibility for determination of eligibility under reasonable safeguards, including provisions for reimbursement of cost incurred because of erroneous determinations made with insufficient care, if such an arrangement is included in an approved job training plan.

(j) Free training program placement requirement

No person or organization may charge an individual a fee for the placement or referral of such individual in or to a training program under this chapter.

(k) Requirements for subsidized youth employment

No funds may be provided under this chapter for any subsidized employment with any private for-profit employer unless the individual employed is a youth aged 16 to 21, inclusive, who is economically disadvantaged and the employment is provided in accordance with subparagraphs (F) and (H) of section 1644(c)(1) of this title.

(l) Political activity exclusion

The Secretary shall not provide financial assistance for any program under this chapter which involves political activities.

(m) Program income

(1) Income under any program administered by a public or private nonprofit entity may be retained by such entity only if used to continue to carry out the program.

(2) Income subject to the requirements of paragraph (1) shall include-

(A) receipts from goods or services (including conferences) provided as a result of activities funded under the ³ chapter;

(B) funds provided to a service provider under the ³ chapter that are in excess of the costs associated with the services provided; and

(C) interest income earned on funds received under this chapter.

(3) For the purposes of this subsection, each entity receiving financial assistance under this chapter shall maintain records sufficient to determine the amount of income received and the purposes for which such income is expended.

(n) Notification of service delivery area activity

The Secretary shall notify the Governor and the appropriate private industry councils and chief elected officials of, and consult with the Governor and such councils and officials concerning, any activity to be funded by the Secretary under this chapter within the State or service delivery area; and the Governor shall notify the appropriate private industry councils and chief elected officials of, and consult with such concerning, any activity to be funded by the Governor under this chapter within the service delivery area.

(o) State and local education standards applicable

(1) All education programs for youth supported with funds provided under subchapter II of this chapter shall be consistent with applicable State and local educational standards.

(2) Standards and procedures with respect to the awarding of academic credit and certifying educational attainment in programs conducted under subchapter II of this chapter shall be consistent with the requirements of applicable State and local law and regulation.

(p) Public service employment exclusion

No funds available under part B of this subchapter or part A or C of subchapter II of this chapter may be used for public service employment.

(q) Investment activities exclusion

No funds available under this chapter shall be used for employment generating activities, economic development activities, investment in revolving loan funds, capitalization of businesses, investment in contract bidding resource centers, and similar activities. No funds under subchapter II or III of this chapter shall be used for foreign travel.

(r) Federal requirements governing real property, equipment, and supplies

The Federal requirements governing the title, use, and disposition of real property, equipment, and supplies purchased with funds provided under this chapter shall be the Federal requirements generally applicable to Federal grants to States and local governments.

(s) Transfer of unused Department of Defense property

(1) Notwithstanding title II of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 481 et seq.) and any other provision of law, the Secretary and the Secretary of Education shall receive priority by the Secretary of Defense for the direct transfer, on a nonreimbursable basis, of the property described in paragraph (2) for use in carrying out programs under this chapter or under any other Act.

(2) The property described in this paragraph is both real and personal property under the control of the Department of Defense that is not used by such Department, including property that the Secretary of Defense determines is in excess of current and projected requirements of such Department.

( Pub. L. 97–300, title I, §141, Oct. 13, 1982, 96 Stat. 1343 ; Pub. L. 97–404, §1(f), Dec. 31, 1982, 96 Stat. 2026 ; Pub. L. 100–77, title VII, §740(b), July 22, 1987, 101 Stat. 531 ; Pub. L. 102–367, title I, §131, Sept. 7, 1992, 106 Stat. 1042 ; Pub. L. 102–484, div. D, title XLIV, §4467(f), Oct. 23, 1992, 106 Stat. 2751 ; Pub. L. 103–160, div. A, title XIII, §1336, Nov. 30, 1993, 107 Stat. 1805 .)

Repeal of Section

Pub. L. 105–220, title I, §199(b)(2), (c)(2)(B), Aug. 7, 1998, 112 Stat. 1059 , provided that this section is repealed effective July 1, 2000.

References in Text

Section 1141(a) of title 20, referred to in subsec. (d)(3)(B), was repealed by Pub. L. 105–244, §3, title I, §101(b), title VII, §702, Oct. 7, 1998, 112 Stat. 1585 , 1616, 1803, effective Oct. 1, 1998. However, the term "institution of higher education" is defined in section 1001 of Title 20, Education.

Section 1088(b) of title 20, referred to in subsec. (d)(3)(B), was repealed and section 1088(e) was redesignated section 1088(b), by Pub. L. 105–244, title I, §101(c), Oct. 7, 1998, 112 Stat. 1617 . However, the term "proprietary institution of higher education" is defined in section 1002(b) of Title 20, Education.

The Federal Property and Administrative Services Act of 1949, referred to in subsec. (s), is act June 30, 1949, ch. 288, 63 Stat. 377 , as amended. Title II of that Act, is classified principally to subchapter II (§481 et seq.) of chapter 10 of Title 40, Public Buildings, Property, and Works. For complete classification of this Act to the Code, see Short Title note set out under section 471 of Title 40 and Tables.

Amendments

1993-Subsec. (s). Pub. L. 103–160 amended subsec. (s) generally. Prior to amendment, subsec. (s) read as follows: "Notwithstanding any other provision of law, a job training program under this chapter or an education program shall receive priority consideration for the transfer of Federal property and equipment that the Secretary of Defense determines are in excess of current and projected requirements of the Department of Defense. Such property and equipment shall be transferred at no cost to such program."

1992-Subsec. (c). Pub. L. 102–367, §131(a), amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: "No funds may be used to assist in relocating establishments, or parts thereof, from one area to another unless the Secretary determines that such relocation will not result in an increase in unemployment in the area of original location or in any other area."

Subsec. (d)(3). Pub. L. 102–367, §131(b), designated existing provisions as subpar. (A) and added subpars. (B) and (C).

Subsec. (d)(4). Pub. L. 102–367, §131(c), added par. (4).

Subsec. (e). Pub. L. 102–367, §131(d), designated existing provisions as par. (1) and added par. (2).

Subsec. (g). Pub. L. 102–367, §131(e), designated existing provisions as par. (1) and added pars. (2) to (4).

Subsec. (k). Pub. L. 102–367, §131(f), substituted "subparagraphs (F) and (H) of section 1644(c)(1)" for "section 1605(d)(3)(B)".

Subsec. (m). Pub. L. 102–367, §131(g), amended subsec. (m) generally. Prior to amendment, subsec. (m) read as follows: "Pursuant to regulations of the Secretary, income generated under any program may be retained by the recipient to continue to carry out the program, notwithstanding the expiration of financial assistance for that program."

Subsec. (p). Pub. L. 102–367, §131(h), substituted "part A or C of subchapter II" for "part A of subchapter II".

Subsecs. (q), (r). Pub. L. 102–367, §131(i), as amended by Pub. L. 102–484, §4467(f)(2), added subsecs. (q) and (r).

Subsec. (s). Pub. L. 102–484, §4467(f)(1), added subsec. (s).

1987-Subsec. (e). Pub. L. 100–77 inserted before period at end ", including exceptions necessary to permit services to homeless individuals who cannot prove residence within the service delivery area".

1982-Subsec. (c). Pub. L. 97–404, §1(f)(1), inserted "the Secretary determines that" after "unless".

Subsec. (g). Pub. L. 97–404, §1(f)(2), struck out "which" after "on-the-job training" and substituted reference to this chapter for reference to this subchapter.

Effective Date of 1992 Amendment

Amendment by Pub. L. 102–367 effective July 1, 1993, see section 701(a) of Pub. L. 102–367, set out as an Effective Date of 1992 Amendment; Transition Provisions note under section 1501 of this title.

Job Training Regulations

Pub. L. 98–524, §7, Oct. 19, 1984, 98 Stat. 2491 , provided that payment for training packages purchased competitively pursuant to section 1536(d)(3) of this title in the case of youth were to include payment for full unit price if training resulted in either placement in unsubsidized employment or attainment of outcome specified in section 1516(b)(2) of this title, prior to repeal by Pub. L. 105–277, div. A, §101(f) [title VIII, §405(d)(23)], Oct. 21, 1998, 112 Stat. 2681–337 , 2681-423.

Section Referred to in Other Sections

This section is referred to in sections 1514, 1518, 1576, 1604, 1644, 1733, 1783 of this title.

¹ See References in Text note below.

² So in original. Probably should be "this".

³ So in original. Probably should be "this".