[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