[Federal Register Volume 59, Number 98 (Monday, May 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12318]
[[Page Unknown]]
[Federal Register: May 23, 1994]
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DEPARTMENT OF LABOR
Employment and Training Administration
20 CFR Part 626
Office of the Assistant Secretary for Veterans' Employment and Training
20 CFR Part 1005
Job Training Partnership Act: Veterans' Employment Programs Under
Title IV, Part C; Removal of Regulations
AGENCY: The Employment and Training Administration and the Office of
the Assistant Secretary for Veterans' Employment and Training, Labor.
ACTION: Final rule.
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SUMMARY: The Department of Labor is removing regulations for Veterans'
Employment Programs authorized under title IV, part C, of the Job
Training Partnership Act, administered by the Office of the Assistant
Secretary for Veterans' Employment and Training. This action is
necessitated by the diminishing number of states applying for state
formula-allocated monies, and the need to improve the delivery of
services. This action allows for the establishment of a more
competitive process to increase the effectiveness and efficiency of the
program.
EFFECTIVE DATE: May 23, 1994.
FOR FURTHER INFORMATION CONTACT:
Mr. Jeffrey C. Crandall at (202) 219-9105 (this is not a toll-free
number).
SUPPLEMENTARY INFORMATION: Pursuant to title IV, part C, of JTPA, the
Secretary of Labor conducts programs to meet the employment and
training needs of service-connected disabled veterans, veterans of the
Vietnam era, and veterans who are recently separated from military
service. The programs are administered through the Assistant Secretary
of Labor for Veterans' Employment and Training, who conducts the
programs through grants, contracts, and cooperative agreements with
public agencies and private non-profit organizations.
The Department of Labor (DOL) originally issued regulations at 20
CFR part 1005 to define specifically the manner in which the funds from
this program would be disbursed. See 54 FR 39354 (September 26, 1980);
and 48 FR 49198 (October 24, 1983). They provided for formula-based
grants to States and required matching funds. However, the number of
States applying for title IV-C formula grants has diminished and the
Department has determined that a competitive methodology would more
efficiently meet the needs of program participants. Program
administration will be greatly enhanced as the result of the
elimination of those regulations, by increasing competition and
lowering administrative costs through larger grant awards. However,
while this action removes those regulations, all specifications,
special conditions, etc., that were in effect with the award of
existing grants are binding until completion of the grant activity,
including information collection.
Part 1005 (1993 ed.) identified the process used to provide grant
funds to states for Federal training programs for veterans. A
Solicitation for Grant Applications (SGA) will be developed and
disseminated to eligible applicants for the title IV-C program. The
formula-based annual grants process is replaced by a multi-year
competitive grants process. This will result in fewer grants of greater
dollar value, and will enable recipients of the grants to provide
expanded services to eligible veterans. By having larger, competitive
grants, services can be targeted to those eligible veterans most in
need in areas of high impact, with greater customer satisfaction
realized.
It is now possible for JTPA title IV-C programs to be created to
better enhance and complement other JTPA programs that do not focus on
veterans' services, while continuing efforts to improve the targeting
of employment and training services to eligible veterans who face
serious barriers to employment. Larger multi-year grants allow for
enhancement of the quality of services provided and the outcomes
attained by strengthening program activity through increased efficiency
in program scope and grant management, improving the linkages between
services provided and local labor market needs, and ensuring the
provision of a coherent system of outcome-oriented human resource
services through changes in the direction and focus of the Veteran's
Employment Programs to eligible veterans.
Immediate results will manifest themselves in the form of:
eliminated regulations; fewer, but larger grants; establishment of a
system of awards through SGA's that can be renewed, modified or changed
as deemed necessary. In addition, these SGA's can be drawn to
incorporate by reference the essential parts and requirements of the
JTPA and the Departmental JTPA regulations. See, e.g., 20 CFR parts 627
and 636; and 29 CFR parts 96-98. For further information regarding the
SGA or for copies, please contact Mr. Jeffrey C. Crandall at the number
provided above. A copy of the SGA will be published in the Federal
Register in the immediate future.
This rulemaking supersedes that portion of the rulemaking announced
at 56 FR 5124 (February 7, 1991) that related to JTPA title IV-C
programs.
Few comments were received in response to the publication of the
proposed rule at 59 FR 10769 (March 8, 1994). One commenter expressed
total support for the action. Five commenters expressed concern that
the action would have an adverse affect upon small states, especially
those small states with effective programs and proven track records
although they operated with the minimal amount of $55,000 under the
formula-based funding process. In response, the competitive process is
to be structured to ensure that emphasis will be on the technical
merits of the proposal and cost efficiency. Thus, small states with
effective programs should not be adversely affected.
One commenter expressed support for efforts to lower the program's
administrative costs through larger grant amounts and longer grant
periods, but believed that a competitive bidding process is not as
effective as an allocation formula in ensuring that the dollars serve
the intended clientele. He believed that an allocation component must
be kept in place that ensures that the bulk of the funding continues to
go to those states in which the majority of veterans needing service
reside. In response, as stated above, due to funding limitations, the
change from formula-based state allocated funds to a nationwide
competition was instituted to maximize service delivery and to target
veterans most in need. Other factors such as the technical merit of the
proposal and cost efficiency will also be considered.
Publication in Final
For the reasons described above, and in accordance with 5 U.S.C.
553(d)(3), this rule is effective on the publication date of this
document. In light of the agency's desire to have an effective and
efficient program, and in keeping with mandates of the President to
remove unnecessary and restrictive rules, it is in the public interest
to eliminate those regulations and establish a new system of grant
administration for the title IV-C program. Given the impending start of
the program year, it is unnecessary and impracticable to delay the
effective date.
Executive Order 12866
This rule is not deemed to be ``significant'' under section 3(f) of
Executive Order 12866.
Regulatory Flexibility Act
As Assistant Secretaries of Labor, we certify under the Regulatory
Flexibility Act (5 U.S.C. Chapter 6) that this regulation will not have
a significant economic impact on a substantial number of small
entities. We have notified the Small Business Administration of this
finding.
Paperwork Reduction Act
As Assistant Secretaries of Labor, we have determined that the
Paperwork Reduction Act (44 U.S.C. chapter 35) does not apply because
this regulation does not contain any additional information collection
requirements that require the approval of the Office of Management and
Budget.
List of Subjects in 20 CFR Part 626
Grant programs--labor, Manpower training programs.
Final Rule
Accordingly, title 20, Code of Federal Regulations, is amended as
follows:
CHAPTER V--EMPLOYMENT AND TRAINING ADMINISTRATION, DEPARTMENT OF LABOR
PART 626--INTRODUCTION TO THE REGULATIONS UNDER THE JOB TRAINING
PARTNERSHIP ACT
1. The authority citation for part 626 continues as follows:
Authority: 29 U.S.C. 1579(a); sec. 6305(f), Pub. L. 100-418, 102
Stat. 1107; 29 U.S.C. 1791i(e).
Sec. 626.2 [Amended]
2. Section 626.2 is amended by removing from paragraph (a) the
phrase ``, with the exception of the veterans' employment program's
chapter IX regulations of the Office of the Assistant Secretary for
Veterans' Employment and Training, which are set forth at part 1005 of
title 20''.
Sec. 626.3 [Amended]
3. Section 626.3 is amended by removing from paragraph (a) the
phrase ``and part 1005 of chapter IX (Veterans' employment programs
under title IV, part C of the Job Training Partnership Act)''.
Sec. 626.4 [Amended]
4. Section 626.4 is amended:
a. By removing from the introductory text the citation ``and
1005''; and
b. By removing from the consolidated table of contents the entry
for part 1005 of chapter IX.
CHAPTER IX--OFFICE OF THE ASSISTANT SECRETARY FOR VETERANS' EMPLOYMENT
AND TRAINING, DEPARTMENT OF LABOR
PART 1005--VETERANS' EMPLOYMENT PROGRAMS UNDER TITLE IV, PART C OF
THE JOB TRAINING PARTNERSHIP ACT [REMOVED]
5. Part 1005 of chapter IX is removed.
Signed at Washington, DC, this 16th day of May 1994.
Doug Ross,
Assistant Secretary for Employment and Training.
Preston M. Taylor, Jr.,
Assistant Secretary for Veterans' Employment and Training.
[FR Doc. 94-12318 Filed 5-20-94; 8:45 am]
BILLING CODE 4510-79-M
