[Federal Register Volume 64, Number 218 (Friday, November 12, 1999)]
[Rules and Regulations]
[Pages 61692-61738]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-28202]



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Part II





Department of Labor





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Office of the Secretary



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29 CFR Part 37



Implementation of the Nondiscrimination and Equal Opportunity 
Provisions of the Workforce Investment Act of 1998; Final Rule

  Federal Register / Vol. 64, No. 218 / Friday, November 12, 1999 / 
Rules and Regulations  

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DEPARTMENT OF LABOR

Office of the Secretary

29 CFR Part 37

RIN 1291-AA29


Implementation of the Nondiscrimination and Equal Opportunity 
Provisions of the Workforce Investment Act of 1998

AGENCY: Office of the Secretary, Labor.

ACTION: Interim final rule; Request for comments.

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SUMMARY: This Interim Final Rule implements Section 188 of the 
Workforce Investment Act of 1998 (WIA), which contains the statute's 
equal opportunity and nondiscrimination provisions. The Workforce 
Investment Act supersedes the Job Training Partnership Act (JTPA) as 
the Department of Labor's primary mechanism for providing financial 
assistance for a comprehensive system of job training and placement 
services for adults and eligible youth. With limited substantive 
changes described in Section III of this preamble, this rule generally 
carries over the policies and procedures found in 29 CFR part 34, which 
implements the nondiscrimination and equal opportunity provisions of 
JTPA. Section 188(e) of WIA mandates that the Department issue 
regulations implementing the section within one year of the passage of 
WIA.

DATES: Effective Date: This Interim Final Rule will become effective on 
November 12, 1999.
    Comment Period: Comments must be received on or before December 13, 
1999.

ADDRESSES: Comments should be sent to Annabelle T. Lockhart, Director 
of the Civil Rights Center (CRC), by regular mail at the US Department 
of Labor, 200 Constitution Avenue NW, Room N-4123, Washington, DC 
20210, or by e-mail at [email protected]. Brief comments (maximum of five 
pages) may be submitted by facsimile machine (FAX) to (202) 219-5658. 
Receipt of submissions, whether by U.S. mail, e-mail, or FAX 
transmittal, will not be acknowledged; however, the sender may request 
confirmation that a submission has been received, by telephoning the 
Civil Rights Center at (202) 219-8927 (VOICE) or (202) 219-6118 or 
(800) 326-2577 (TTY/TDD).
    Comments will be available for public inspection during normal 
business hours at the above address. Persons who need assistance to 
review the comments will be provided with appropriate aids such as 
readers or print magnifiers. Copies of this Interim Final Rule will be 
made available in the following formats: large print, electronic file 
on computer disk, and audio tape. To schedule an appointment to review 
the comments and/or to obtain the Interim Final Rule in an alternate 
format, contact CRC at the telephone numbers and addresses listed 
above.

FOR FURTHER INFORMATION CONTACT: Bud West, Senior Policy Advisor, Civil 
Rights Center, US Department of Labor, 200 Constitution Avenue NW, Room 
N-4123, Washington, DC 20210, [email protected], telephone (202) 219-8927 
(VOICE), or (202) 219-6118 or (800) 326-2577 (TTY/TDD).

SUPPLEMENTARY INFORMATION: The preamble to these regulations is 
organized as follows:

I. Background--provides a brief description of the development of 
these proposed regulations.
II. Authority--cites the statutory provisions supporting these 
regulations, Departmental redelegation authority, and Interagency 
coordination authority.
III. Overview of the Regulations--summarizes pertinent aspects of 
the regulatory text and describes its purposes and application.
IV. Regulatory Procedure--sets forth the applicable regulatory 
requirements and requests comments on specific issues.

I. Background

    On August 7, 1998, President Clinton signed the Workforce 
Investment Act of 1998 (WIA), comprehensive reform legislation that 
supersedes JTPA. Both WIA and JTPA contain nondiscrimination and equal 
opportunity provisions. The JTPA nondiscrimination provisions are 
contained in Section 167 of that statute, and in its implementing 
regulations codified in 29 CFR part 34. These regulatory provisions 
generally are carried over in the nondiscrimination and equal 
employment opportunity provisions of WIA's implementing regulations. 
The latter regulations are contained in this Interim Final Rule, to be 
codified in 29 CFR part 37.
    This Interim Final Rule prohibits WIA Title I-financially assisted 
grant applicants and recipients, as defined in Section 37.4, from 
discriminating on the basis of race, color, religion, sex, national 
origin, age, disability, or political affiliation or belief. It also 
protects any beneficiary (person intended by Congress to receive WIA 
Title I-financially assisted aid, benefits, services, or training) from 
discrimination based on either that beneficiary's citizenship, or his 
or her participation in any WIA Title I-financially assisted program or 
activity. The rule provides procedures for determining and enforcing 
compliance.
    Although the Department wishes to emphasize that it considers the 
reforms embodied in WIA to be significant, and not ``business as 
usual,'' the nondiscrimination and equal employment opportunity 
principles embodied in this Act are substantially similar to those 
contained in JTPA. Accordingly, there are only limited substantive 
differences between 29 CFR part 34, implementing the nondiscrimination 
and equal opportunity provisions of JTPA, and 29 CFR part 37, 
implementing the similar provisions of WIA. Those substantive changes 
that have been made are based on the experience of the Civil Rights 
Center (CRC), the Departmental agency responsible for administering the 
nondiscrimination provisions of JTPA and WIA, and on feedback provided 
to CRC by grant applicants and recipients regarding their work with the 
nondiscrimination and equal opportunity provisions of JTPA and part 34. 
These substantive changes are described in detail in Section III of 
this preamble.
    Most of the changes the Department has made to the provisions 
contained in part 34 have been structural, stylistic, and phrasing 
changes. The changes have been made to enhance the readability of the 
rule for, and its utility to, recipients who receive financial 
assistance under WIA Title I; grant applicants who wish to receive such 
assistance; individuals who wish to file discrimination complaints 
under WIA Section 188; and other interested parties. The Department 
seeks specific comments on the enhancements to the rule, and 
suggestions for improving the rule.
    The alterations to the rule fall into two categories: (1) Changes 
making the rule's obligations consistent with other regulatory 
obligations WIA Title I recipients might be under; and (2) Changes 
reducing the ``legalese'' of the JTPA regulations. Generally, neither 
type of modification is meant to change the substantive content of the 
underlying rule.
    As an example of the first category, the section of the rule 
regarding recipients' obligations to individuals with disabilities has 
been amended to follow generally the regulations implementing Title II 
of the Americans with Disabilities Act of 1990, as amended (ADA). These 
regulations are found at 28 CFR part 35. This change is not intended to 
provide a substantive change from the regulations implementing JTPA. It 
is intended only to clarify the regulations.

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    The second category of changes was prompted by the June 1, 1998, 
Presidential Memorandum on Plain Language, which instructed Federal 
Departments and Agencies to write new regulations in language 
understandable to most people. The Department has met the intent of the 
President's memorandum by incorporating stylistic changes into the 
language and format of these regulations to facilitate their 
readability without changing their substantive content. An example of 
such a change is the rewording of subsection topic header statements 
into the form of questions.
    Other examples:
     Some sections have been subdivided, to make the content of 
individual sections more homogeneous.
     Some sections have been more logically reordered.
     Terminology has been adjusted to use plain language terms. 
As a result, the term ``shall'' has been replaced in this rule by the 
terms ``must,'' ``will,'' ``is/are,'' or similar terms, as appropriate. 
The term ``must'' connotes an obligation, while the term ``will'' 
indicates a future action. Similarly, the term ``prior to'' has been 
replaced by the term ``before''; ``pursuant to'' has been replaced, as 
appropriate, by ``under,'' ``by,'' or ``authorized by''; and ``is 
deemed'' or ``will be deemed'' has been replaced, as appropriate, by 
``is/are considered'' or ``become(s).''
    Again, these changes are not intended to alter the meaning of the 
regulations. Rather, the changes are intended to create a more readable 
document.
    CRC maintains a close relationship and regular contact with the 
regulated community. The agency holds an annual national conference on 
equal opportunity, attended by several hundred officials and staff of 
the State and local agencies that are responsible for ensuring 
nondiscrimination in the programs receiving financial assistance under 
JTPA and/or WIA Title I. At this conference, and through other in-
person and telephone contacts with CRC, these officials and staff have 
discussed directly with CRC staff members the effect that the JTPA 
nondiscrimination regulations have had upon their agencies' operations. 
Many of the changes, both substantive and stylistic, that were 
incorporated in this Interim Final Rule resulted from this input. For 
example, because some of these officials told CRC that the 60-day 
period provided in the JTPA regulations for recipients to process 
discrimination complaints was insufficient, the rule extends the 
relevant time period to 90 days.
    The Department is particularly interested in receiving comments 
regarding any aspects of the Rule that affect the relationship between 
the Federal government and the States.

II. Authority

A. Statutory Authority

    The statutory authorities for this Interim Final Rule are: Sections 
134(b), 136(d)(2)(F), 136(e), 172(a), 183(c), 185(c)(2), 185(d)(1)(E), 
186, 187 and 188 of the Workforce Investment Act of 1998, Pub. L. 105-
220, 12 Stat. 936 (29 U.S.C. 2801 et seq.); Title VI of the Civil 
Rights Act of 1964, as amended, Pub. L. 88-352, 78 Stat. 252 (42 U.S.C. 
2000d, et seq.); Section 504 of the Rehabilitation Act of 1973, as 
amended, Pub. L. 93-112, 87 Stat. 390 (29 U.S.C. 794); the Age 
Discrimination Act of 1975, as amended, Pub. L. 94-135, 89 Stat. 728 
(42 U.S.C. 6101); and Title IX of the Education Amendments of 1972, as 
amended, Pub. L. 92-318, 86 Stat. 373 (20 U.S.C. 1681).

B. Departmental Authorization

    Secretary's Order 2-81, Section 5a(2), authorized the Assistant 
Secretary for Administration and Management, working through the 
Director, Office of Civil Rights, to establish and formulate all 
policies, standards, and procedures for, as well as to issue rules and 
regulations governing, the enforcement of statutes applying 
nondiscrimination and equal opportunity requirements to programs and 
activities receiving financial assistance from DOL. On October 12, 
1986, the Office of Civil Rights was redesignated the Directorate of 
Civil Rights by the Assistant Secretary. Effective December 12, 1995, 
the Assistant Secretary redesignated the Directorate of Civil Rights as 
the Civil Rights Center (CRC). CRC is authorized to monitor and enforce 
all nondiscrimination and equal opportunity regulations regarding 
programs receiving financial assistance from DOL, including Section 188 
of WIA.

C. Interagency Coordination

    The Department of Justice (DOJ), under Section 1-201 of Executive 
Order 12250 (45 FR 72995, November 4, 1980), is responsible for 
coordinating Federal enforcement of most nondiscrimination laws that 
apply to federally-assisted programs and activities. Executive Order 
12067 (43 FR 28967, July 5, 1978) requires consultation with the Equal 
Employment Opportunity Commission (EEOC) about regulations that involve 
equal employment opportunity. The Age Discrimination Act of 1975, as 
amended, assigns the Secretary of Health and Human Services the 
responsibility for coordinating the Federal enforcement effort of that 
Act. This Interim Final Rule has been coordinated with the Department 
of Justice and the Equal Employment Opportunity Commission, as well as 
the Department of Health and Human Services.
    In addition, the Rule has been coordinated with other appropriate 
Federal grantmaking agencies, including the Departments of Education 
and Housing and Urban Development.

III. Overview of the Rule

Subpart A--(a) outlines the purpose and application of part 37; (b) 
provides definitions; (c) outlines prohibited grounds for and forms of 
discrimination; and (d) establishes enforcement authority and 
obligations.
Subpart B--sets forth the affirmative obligations of recipients of, and 
grant applicants for, financial assistance under WIA Title I.
Subpart C--describes a Governor's responsibilities to implement the 
nondiscrimination and equal opportunity provisions of WIA and this 
part.
Subpart D--describes procedures for compliance reviews and complaint 
processing.
Subpart E--describes the procedures for effecting compliance, including 
(a) actions the Department will take upon making a finding of 
noncompliance for which voluntary compliance cannot be achieved; (b) 
the rights of parties upon such a finding; and (c) hearing procedures, 
sanctions, and post-termination procedures.

Subpart A--General Provisions

    The individual sections in this subpart are largely identical to 
their corresponding sections within the same subpart in part 34. 
Consistent with plain-language guidelines, one section has been 
subdivided into separate sections treating different topics. These 
changes are not intended to alter the overall meaning of this subpart, 
or the meaning of any of its component sections.

Section 37.1  What is the purpose of this part?

    This section is identical to 29 CFR 34.1(a), except that references 
to JTPA, and to its Section 167, have been changed to refer to WIA and 
its Section 188.

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Section 37.2  To whom does this part apply, and what is the scope of 
this part?

    This section contains requirements similar to those in 29 CFR 
34.1(b) and (d). The references to other regulatory sections within 
part 34 have been changed to reflect the numbering of this Interim 
Final Rule, and references to JTPA have been changed to refer to WIA. 
Also, some of the material has been presented in outline form to 
improve its readability. None of these changes is intended to alter the 
meaning of the section.
    Language has been added to paragraph 37.2(a) to clarify that the 
requirements in this part apply to programs and activities that are 
part of the One-Stop delivery system and that are operated by One-Stop 
partners listed in WIA Section 121(b), including those partners 
financially assisted by grantmaking agencies other than the Department 
of Labor, to the extent that the programs and activities are being 
conducted as part of the One-Stop delivery system. The requirements in 
29 CFR part 34 continue to apply to programs and activities that are 
implemented under and authorized by JTPA.
    In those cases in which States that have opted to implement WIA 
before July 1, 2000, are operating WIA Title I programs and activities 
simultaneously with programs and activities under JTPA, the WIA Title I 
programs and activities must comply with the requirements in this part, 
while the JTPA programs and activities must comply with the 
requirements in 29 CFR part 34.

Section 37.3  How does this part affect a recipient's other 
obligations?

    This section generally contains the same requirements as 29 CFR 
34.1(c). The language of 29 CFR 34.1(c)(6), which dealt with 
retroactivity, is inapplicable to this Interim Final Rule, and has been 
omitted; in addition, references to JTPA have been changed to refer to 
WIA. Other differences between this section and the corresponding 
paragraphs of the JTPA regulations are listed below.
    Paragraph 37.3(b): This paragraph has been amended to incorporate 
by reference the provisions of Subparts B and C and Appendix A of 29 
CFR part 32, which implement the requirements of Section 504 pertaining 
to employment practices, employment-related training, program 
accessibility, and accommodations. As a result, the language from 29 
CFR 34.1(c)(2) that stated that part 34 did not affect recipients' 
obligations to comply with those provisions has been omitted.
    It is important to understand the distinction between the concept 
of ``program accessibility,'' referred to in this paragraph, and the 
separate concept of architectural accessibility, both of which a 
recipient is required to provide under Subpart C.
    The requirement of program accessibility means that when viewed in 
its entirety, the program or activity provided by the recipient must be 
readily accessible to qualified individuals with disabilities. 29 CFR 
32.27. The recipient must ensure that participants with various 
physical and mental disabilities will have access to the program or 
activity. This obligation to make the program or activity accessible in 
advance exists independent of a request for a particular accommodation 
by a specific individual. Therefore, even if an individual with a 
disability requests an accommodation that would impose an undue 
hardship on the recipient, the recipient still has an overall 
obligation to make the program or activity accessible.
    Architectural accessibility, by contrast, relates to the 
construction and design of facilities. 29 CFR 32.28. Architectural 
accessibility standards are similar to building codes. A recipient must 
comply with the architectural accessibility standards whether or not a 
particular individual with a disability has requested a reasonable 
accommodation. 29 CFR 32.13(d). A recipient's obligation to comply with 
the architectural accessibility standards is also independent of its 
program accessibility obligations.
    Paragraph 37.3(d): This paragraph has been added to parallel 
Paragraph 37.3(c), and to emphasize that recipients that are also 
employers, employment agencies, or other entities covered by Title I of 
the ADA have additional obligations imposed by that title.
    Paragraph 37.3(e)(9): This paragraph, which refers to the anti-
discrimination provision of the Immigration and Nationality Act, has 
been added at the request of the Department of Justice. This provision 
prohibits: (a) Discrimination on the basis of citizenship status and 
national origin with respect to hiring, firing, or recruitment or 
referral for employment for a fee; and (b) unfair documentary practices 
with respect to verification of employment eligibility.

Section 37.4  What definitions apply to this part?

    To the extent possible, the definitions contained in this section 
are consistent with similar terms used in regulations implementing 
other civil rights legislation that applies to recipients of Federal 
financial assistance. Similarly, where feasible, this Interim Final 
Rule uses the terms contained in the proposed WIA program regulations 
issued by the Department's Employment and Training Administration 
(ETA). However, because this regulation must be compatible with civil 
rights enforcement on a broad scale as well as with ETA's WIA program, 
this rule defines and uses certain terms, such as ``qualified 
interpreter,'' ``recipient,'' ``registrant,'' and ``applicant,'' as 
terms of art, not necessarily identical to the definitions that are 
used elsewhere for the same terms.
    The following list explains the definitions that differ in 
substantive ways, either from their counterparts in 29 CFR 34.2, from 
ETA's program regulations, or from regulations that implement the 
nondiscrimination provisions of other legislation providing Federal 
financial assistance. It also lists definitions that have been borrowed 
from other civil rights regulations, and explains certain definitions 
that might appear to differ substantively from their counterparts in 29 
CFR 34.2, but that have not been substantively changed. Definitions 
that obviously would not be substantively different from those in 
Section 34.2, but that simply would substitute references to WIA for 
references to JTPA, are not listed.
    This list also contains definitions of terms that are not defined 
in the regulations implementing other civil rights legislation that 
applies to recipients of Federal financial assistance, or in WIA's 
program regulations. Generally, these terms either are used solely 
within this part, or have greater significance within this part than 
they do within other regulatory systems. With regard to these terms, 
the list explains the reason each term has been defined, and/or the 
source of the definition.
    Aid, benefits, services, or training: In 29 CFR 34.5, this phrase 
is used to convey to the reader the comprehensive nature of the areas 
in which a JTPA-assisted program or activity could not discriminate on 
the basis of disability. For consistency, the phrase has been adopted 
throughout part 37; generally, it replaces the phrase ``financial aid, 
service, or benefit,'' which was used intermittently in part 34, and 
which has a similar meaning. No substantive change is intended by the 
use of the phrase.
    Section (1) of this definition uses the phrase ``core and intensive 
services.'' These terms are used in WIA to describe

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two of the three general types of employment and training services that 
are provided to participants under the WIA program (the third type is 
training services). The terms are defined at length in the WIA statute: 
a list of ``core services'' is provided in Section 134(d)(2), and a 
similar list of ``intensive services'' is provided in Section 
134(d)(3)(C). Briefly, ``core services'' are those services available 
at a baseline level to all participants, while ``intensive services'' 
are those services available to individuals who are assessed as needing 
additional assistance in order to find or retain employment. Compare 
Section 134(d)(2) with Section 134(d)(3)(A).
    Section (4) of this definition refers to ``work opportunities.'' 
This term is intended to encompass On-the-Job Training, subsidized 
work, internships, or work experience that a participant obtains 
through a WIA Title I-financially assisted program or activity. See the 
discussion of the definition of ``On-the-Job Training'' later in this 
section.
    Applicant: The passage of WIA has altered the method by which 
individuals seeking federally-assisted aid, benefits, services, or 
training enter the system. The definition of the term ``applicant'' has 
been changed accordingly, to signify that, for purposes of this part, 
an individual is considered an ``applicant'' at the point at which s/he 
submits personal information in response to a request by the recipient 
for such information. Because ETA's program regulations that implement 
other provisions of WIA refer to the ``registration'' process, rather 
than the application process, this part uses the term ``registrant'' 
interchangeably with ``applicant.'' CRC is particularly interested in 
receiving comments on this definition and its effect, if any, on the 
data collection obligations of recipients.
    Departmental grantmaking agency: This definition was added in order 
to help readers distinguish between the meaning of this term and of the 
terms ``grantmaking agency'' and ``Federal grantmaking agency'' as used 
in this part. See the discussion of the definitions of the latter terms 
elsewhere in this section of the preamble.
    Discrimination on the ground of citizenship: This definition is 
identical to the definition of the same term in Section 34.2, except 
that the term ``asylee'' has been inserted into the list of immigration 
statuses that are protected against discrimination. In addition, the 
phrase ``other individuals authorized by the Attorney General to work 
in the United States'' has been amended to ``other immigrants 
authorized * * *.'' These changes have been made for consistency with 
the language of Section 188(a)(5) of WIA.
    These regulations are concerned with nondiscrimination and equal 
opportunity only. They do not limit eligibility or impose preferences 
for services on the basis of citizenship.
    Employment practices: This definition has been moved to the 
definition section from 29 CFR 34.7(a). Consistent with plain-language 
guidelines, the definition also has been slightly rewritten, and has 
been presented in outline form to improve its readability. None of 
these changes is intended to alter the meaning of the definition.
    Employment-related training: This definition has been included in 
response to questions from a number of recipients who were familiar 
with the term as it was defined under the Comprehensive Employment and 
Training Act (CETA), the predecessor statute to JTPA. Under WIA, the 
term is defined more broadly than it was under CETA.
    Entity: This definition is expanded from the definition in 29 CFR 
34.2, to encompass current and potential changes in business 
structures, and to emphasize that such entities as Indian tribes or 
tribal organizations and Native Hawaiian organizations, all of which 
are eligible to receive financial assistance under WIA Title I, are 
included within the definition. See WIA Section 166, ``Native American 
Programs.''
    Facility: This definition is expanded from the definition in 29 CFR 
34.2, in order to follow generally the definition of the same term set 
forth in 28 CFR 35.104, in the regulations implementing Subtitle A of 
Title II of the ADA. That subtitle prohibits discrimination on the 
basis of disability by public entities.
    The reference to ``indoor constructs'' such as office cubicles and 
computer kiosks has been added in order to clarify that recipients may 
be required to alter such constructs to make them accessible to and 
usable by individuals with disabilities. See paragraph (2)(i) of the 
definition of ``reasonable accommodation'' in Section 37.4.
    Federal grantmaking agency: This definition was added in order to 
help readers distinguish between the meaning of this term and of the 
terms ``grantmaking agency'' and ``Departmental grantmaking agency'' as 
used in this part. See the discussion of the definitions of the latter 
terms elsewhere in this section of the preamble.
    Financial assistance and Financial assistance under Title I of WIA: 
As with the term ``applicant,'' the passage of WIA has altered the type 
of financial assistance that will be provided under the WIA program, 
and the way in which that assistance will be provided. The definitions 
of ``financial assistance'' and ``financial assistance under WIA Title 
I'' have been drafted accordingly. The Department is particularly 
interested in receiving comments on these new definitions.
    The new definitions have been modeled on the definitions of the 
term ``financial assistance'' provided in various Federal regulations 
that also deal with nondiscrimination in programs and activities 
receiving Federal financial assistance. Examples include the Office of 
Personnel Management regulations at 5 CFR 900.403(c); the Department of 
Justice regulations at 28 CFR 42.613(e); and the Department of Health 
and Human Services regulations at 45 CFR 86.2(g) and 1203.3(c).
    Paragraph (5) of the definition of ``financial assistance under WIA 
Title I'' includes ``[a]ny other agreement, arrangement, contract, or 
subcontract * * * or other instrument that has as one of its purposes 
the provision of assistance or benefits under WIA Title I.'' Under this 
paragraph, ``financial assistance under WIA Title I'' includes such 
``agreements or arrangements'' as the Memoranda of Understanding (MOUs) 
required by Section 121(c) of WIA, and inclusion on a list of eligible 
training providers. See the discussion of the definition of 
``recipient'' later in this section.
    Fundamental alteration: This definition is derived from the Supreme 
Court's interpretation of the term in the ADA Title II case of Olmstead 
v. Zimring, 119 S.Ct. 2176, 67 USLW 3683, 67 USLW 4567, 1999 WL 407380 
(U.S., June 22, 1999), at 12-13 and n.16.
    Grantmaking agency: This term replaces the term ``granting agency'' 
that was used in 29 CFR part 34. See the discussion of the definitions 
of ``Departmental grantmaking agency'' and ``Federal grantmaking 
agency'' elsewhere in this section.
    Individual with a disability: The definition of this term is 
identical to the definition of the same term in Section 34.2, with the 
following exceptions:
    (1) The reference to homosexuality or bisexuality has been deleted. 
This change is not a substantive change, since Section 1(ii) of the 
definition of the term ``disability'' retains the explanation that the 
term ``impairment'' does not include homosexuality or bisexuality. The 
deletion was made merely to eliminate unnecessary redundancy in the 
rule.

[[Page 61696]]

    (2) The list of the individuals to whom the term ``individual with 
a disability'' does not apply has been expanded to clarify that with 
regard to employment, there would exist two circumstances under which 
the term would not apply to an individual who has a currently 
contagious disease or infection. Such an individual would not be an 
``individual with a disability'' either if that disease or infection 
prevents him or her from performing the duties of the job in question, 
or if his or her employment, because of that disease or infection, 
would constitute a direct threat to the health and safety of others. 
This change has been made for consistency with the definition of 
``individual with a disability'' enacted by Congress in Title IV, 
Section 403 of WIA, the Rehabilitation Act Amendments of 1998, 29 
U.S.C. 701, Pub.L. 105-220, Title IV, Section 401 et seq., Aug. 7, 
1998, 112 Stat. 1092.
    Labor market area: The definition of this term, which appears in 
the definition of ``population eligible to be served,'' is taken 
directly from Section 101(18) of WIA.
    Local Workforce Investment Area (LWIA) grant recipient: This term 
is new under WIA. The term describes the entity that receives WIA Title 
I financial assistance from a Governor. It replaces the terms ``SDA 
grant recipient'' and ``substate grantee'' that were used under JTPA.
    National Programs: This definition has been rewritten to encompass 
entities receiving financial assistance under Title I, Subtitle D of 
WIA, and to clarify that Job Corps is a National Program under the 
definition.
    On-the-Job Training: This definition is taken directly from Section 
101(31) of WIA. Three words have been added to the definition in order 
to clarify that such training is ``provided to a paid participant while 
the participant is engaged in productive work.''
    Participant and participation: The definitions of these terms 
contain the same elements as the definition of the single term 
``participant'' in 29 CFR 34.2. The rule defines the term 
``participation'' separately in order to help readers better understand 
both terms. Also, the new definitions of the terms ``participant'' and 
``participation'' clarify that the terms encompass individuals who are 
receiving aid, benefits, or training under WIA Title I, as well as the 
``services'' included in the definition in 29 CFR 34.2. In addition, 
because the term ``aid, benefits, services, or training'' is defined as 
including work opportunities obtained through a WIA Title I--
financially assisted program or activity, an individual who obtains 
such opportunities is a ``participant'' under this definition. See the 
discussion of the definition of ``aid, benefits, services, or 
training'' earlier in this section.
    The definition of ``participant'' in part 34 excluded individuals 
receiving ``post-termination and follow-up services.'' However, Section 
134(d)(2)(K) of the WIA statute includes follow-up services among the 
list of ``core services'' that participants may receive; as a result, 
this language has been deleted from the definition of ``participant'' 
in Section 37.4. It should be noted that this definition differs from 
the definition of the term that is included in ETA's regulations 
implementing other provisions of WIA.
    The definition in Section 37.4 clarifies that the term 
``participant'' includes, but is not limited to, applicants receiving 
any services under state Employment Service programs, and claimants 
receiving any services under state Unemployment Insurance programs. 
Because the definition of the term in the JTPA nondiscrimination 
regulations also encompassed such individuals, this clarification is 
not a substantive change. Rather, the clarifying language was included 
simply to recognize that different recipients may use different 
terminology to refer to individuals who receive benefits or services 
under their programs.
    It is important to recognize that under the One-Stop system 
introduced by WIA, various programs and activities that are authorized 
by Federal laws other than WIA may be part of a One-Stop center that 
also provides WIA Title I--financially assisted programs and 
activities. In such cases, any individual who receives aid, benefits, 
services, or training from the One-Stop center is a participant for 
purposes of the nondiscrimination and equal opportunity provisions of 
WIA and this part.
    For example, a One-Stop center may include an Employment Services 
program authorized and financially assisted under the Wagner-Peyser 
Act, 29 U.S.C. 49, as well as core and intensive service programs 
authorized under WIA Title I. Under these circumstances, an individual 
who receives Wagner-Peyser employment services from the One-Stop center 
will fit the definition of ``participant'' in Section 37.4.
    Parties to a hearing: This definition has been amended to clarify 
that in certain cases, a Governor may be a party to a hearing.
    Population eligible to be served: This term is used in the section 
of this rule that explains recipients' obligations regarding 
individuals with limited English skills. See the discussion of Section 
37.35 in this preamble.
    Qualified individual with a disability: This definition has been 
amended for a number of reasons. First, the definition has been 
restructured in order to incorporate the term of art ``aid, benefits, 
services, or training,'' which is introduced and defined in this 
Interim Final Rule. The term is used in the definition of ``qualified 
individual with a disability'' to encompass most, if not all, of the 
circumstances (other than employment) in which a recipient might need 
to determine the qualifications of an individual with a disability to 
receive WIA Title I--financially assisted services, financial or other 
aid, or benefits. See the definition of ``aid, benefits, services, or 
training'' in Section 37.4, and the discussion in this preamble about 
that definition.
    Second, the definition as amended is intended to underscore the 
distinction between the test for determining whether an individual with 
a disability is qualified for such aid, benefits, services, or 
training--including employment-related training--and the test for 
determining whether such an individual is qualified for employment. 
Under paragraph (1) of the definition, such an individual is qualified 
for employment if, with or without reasonable accommodation, he or she 
is capable of performing ``the essential functions of the job.'' The 
definition of the term in 29 CFR 34.2 applied the same test to 
employment-related training. However, employment-related training 
programs are not ``employment,'' and therefore the focus in determining 
whether an individual with a disability is ``qualified'' for such a 
program should be upon whether the individual meets the essential 
eligibility requirements for the program. Paragraph (2) of the 
definition, which relates to aid, benefits, services, or training, has 
been amended accordingly.
    Third, the amended definition is intended to clarify that an 
individual with a disability who is seeking aid, benefits, services, or 
training is qualified if he or she meets the essential eligibility 
requirements for receiving such aid, benefits, services, or training, 
with or without reasonable accommodation or modification. The reference 
to ``reasonable accommodation or reasonable modification'' has been 
added in order to clarify that the definition is intended to encompass 
``situations where an insistence on continuing past requirements and 
practices might arbitrarily deprive genuinely qualified (individuals 
with disabilities) of an

[[Page 61697]]

opportunity to participate in a covered program.'' Brennan v. Stewart, 
834 F.2d 1248, 1261 (5th Cir. 1988) (discussing Section 504).
    Qualified interpreter: This definition is based on the definition 
of the same term contained in 28 CFR 35.104, the regulations 
implementing Title II of the ADA. In this Interim Final Rule, however, 
the term is used in a broader context, to implement the prohibition of 
discrimination based on national origin as well as the prohibition of 
discrimination against qualified individuals with disabilities. In this 
Rule, the term encompasses the interpretation of spoken and written 
languages, such as Spanish, for individuals with limited English 
skills, as well as interpretation of spoken and written languages into 
symbolic languages, such as American Sign Language, for individuals 
with disabilities.
    Reasonable accommodation: This definition is based on the 
definition of the same term contained in 29 CFR 1630.2, in the 
regulations implementing Title I of the Americans with Disabilities 
Act. Although Title I and its implementing regulations apply the 
concept of ``reasonable accommodation'' only in the context of 
employment, this Interim Final Rule requires recipients to provide 
``reasonable accommodation'' in the additional contexts of aid, 
benefits, services, and training. See Section 37.8.
    Under the requirements of Section 188 of WIA and this part, as well 
as under other Federal civil rights laws and their implementing 
regulations, a recipient must provide both accessible facilities (that 
is, both program accessibility and architectural accessibility) and 
reasonable accommodation for individuals with disabilities. It is 
important to understand the difference between these two requirements.
    Providing accessible facilities requires a recipient to take 
advance actions, in order to be ready when persons with disabilities 
seek aid, benefits, services, training, or employment from that 
recipient at some point in the future. See the discussion of ``program 
accessibility'' and ``architectural accessibility'' in the discussion 
in this preamble about Paragraph 37.3(b).
    By contrast, providing reasonable accommodation for an individual 
with a disability requires the recipient to make efforts to meet the 
specific needs of the particular individual who is currently seeking 
aid, benefits, services, training, or employment from the recipient. 
Reasonable accommodation may require making specific structural or 
other modifications to meet the needs of a particular individual for 
access.
    Recipient: This definition has been amended to clarify that where a 
Governor operates a program or activity, either directly or through a 
State agency, using discretionary funds apportioned to him/her under 
WIA Title I (rather than disbursing the funds to another recipient), 
the Governor is also a recipient. In addition, JTPA-related terminology 
(such as references to SDA and Substate grant recipients) has been 
replaced by WIA-related terminology (such as references to LWIA grant 
recipients), and the list of examples of recipients has been numbered 
and presented vertically, rather than in paragraph form, for greater 
ease of reading. Finally, paragraphs (10) and (11) of the definition, 
``outreach and admissions agencies'' and ``placement agencies,'' have 
been amended to clarify that Job Corps contractors that perform these 
functions are also recipients.
    For purposes of this part, entities that participate as partners in 
a One-Stop delivery system are treated as ``recipients,'' and are 
subject to the nondiscrimination and equal opportunity obligations of 
this part, to the extent that they participate in the One-Stop system. 
Such partners may include, but are not limited to, mandatory and 
additional partners listed in WIA section 121(b), such as entities 
providing employment and training activities carried out under the 
Community Service Block Grant Act (42 U.S.C. 9901 et seq.), or programs 
authorized under section 6(d)(4) of the Food Stamp Act of 1977 
(7.U.S.C. 2015(d)(4)), if these entities participate as partners in the 
One-Stop delivery system.
    With regard to issues involving nondiscrimination and equal 
opportunity, the One-Stop-related programs and activities operated by 
such partners may fall under the jurisdiction of both CRC and the equal 
opportunity office of the Federal grantmaking agency. See Section 
37.85(c) and the discussion thereof in this preamble. As a result, 
local Workforce Investment Boards, when developing and entering into 
MOUs with One-Stop partners pursuant to the requirements of WIA Section 
121(c), should include attention to equal opportunity issues that may 
affect the One-Stop partners or the delivery system. Such issues 
include how discrimination complaints will be handled and how the cost 
of reasonable accommodations will be shared. For its part, CRC is in 
the process of developing MOUs with other Federal grantmaking agencies 
that provide financial assistance to programs and activities in the 
One-Stop delivery system, to ensure the consistent application of 
Federal civil rights law.
    The Department is particularly interested in receiving comments 
regarding the effect of this part upon One-Stop partners.
    Registrant: See the explanation of the term ``applicant'' in this 
section.
    Sectarian activities: This term appears in Section 37.6(f), which 
implements Section 188(e) of WIA. With certain exceptions, that 
statutory section bars participants from being employed to carry out 
the construction, operation, or maintenance of any part of any facility 
that is or will be used for sectarian instruction or religious worship.
    Service provider: Language has been inserted into this definition 
to clarify that the term encompasses any ``provider of aid, benefits, 
services, or training to'' any WIA Title I--financially assisted 
program or activity. The definition of the same term in 29 CFR 34.2 
referred only to the ``operator'' of a JTPA-funded program or activity. 
This change is not a substantive change; it was made only to clarify 
the definition.
    Additional language has been added to the definition to clarify 
that organizations that are selected and/or certified as eligible 
providers of training services under WIA are service providers under 
this Interim Final Rule, regardless of whether any participants 
actually select the organization to provide them with training.
    Small recipient: This definition contains the same requirements as 
the definition in 29 CFR 34.2. The definition has been rewritten to 
explain that such a recipient both (a) serves a total of fewer than 15 
beneficiaries during the entire grant year, and (b) employs fewer than 
15 employees on any given day during the grant year. Again, this 
alteration is not intended as a substantive change; it was made only to 
clarify the definition.
    State Programs: This definition adds language explaining that the 
term includes State Employment Service agencies, and/or State 
unemployment compensation agencies, that operate independently of a 
SESA. Again, this change has been included solely to clarify the 
definition.
    Supportive services: This definition is taken directly from WIA 
Section 101(46).
    Terminee: This definition has been rewritten to explain that the 
term refers to a participant whose participation in the program 
terminates, voluntarily or involuntarily, during the applicable program 
year. Again, this change has

[[Page 61698]]

been included solely to clarify the definition.
    Undue hardship: As the definition itself notes, the meaning of this 
term differs, depending upon the context in which it is used. The first 
part of the definition explains the meaning of the term in the context 
of reasonable accommodation for individuals with disabilities. This 
part of the definition, like the definition of ``reasonable 
accommodation,'' is based on the definition of ``undue hardship'' 
contained in 29 CFR 1630.2, in the regulations implementing Title I of 
the Americans with Disabilities Act. As explained above in the 
discussion of the definition of ``reasonable accommodation,'' this 
Interim Final Rule requires recipients to provide reasonable 
accommodation to qualified individuals with disabilities with regard to 
aid, benefits, services, and training, as well as employment, except 
where such accommodation would cause undue hardship. See Section 37.7.
    The second part of the definition explains the meaning of the term 
in the context of religious accommodations. This part of the definition 
is based on Supreme Court decisions, most notably the leading case of 
Trans World Airlines, Inc. v. Hardison, 432 U.S. 63, 81, 84 (1977).
    WIA Title I--financially assisted program or activity: This 
definition contains the same elements as the definition of the term 
``JTPA-funded program or activity'' in 29 CFR 34.2. The definition has 
been presented in outline form to improve its readability.
    The remainder of the definitions in Section 37.4 are either 
unchanged from their counterparts in 29 CFR 34.2, or have been changed 
merely to refer to WIA rather than JTPA.

Section 37.5  What forms of discrimination are prohibited by this part?

    This section is identical to 29 CFR 34.3, except that references to 
JTPA have been changed to refer to WIA.

Section 37.6  What specific discriminatory actions, based on prohibited 
grounds other than disability, are prohibited by this part?

    This section contains the same requirements as 29 CFR 34.4. 
Differences between this regulation and the JTPA regulation are 
explained below.
    Paragraph 37.6(a): This paragraph is identical to the first 
sentence of 29 CFR 34.4(a), except that references to JTPA have been 
changed to refer to WIA.
    Paragraph 37.6(b): This introductory paragraph is identical to the 
second sentence of 29 CFR 34.4(a).
    Paragraphs 37.6(b)(1)-(7): These paragraphs are identical to 29 CFR 
34.4(a)(1)-(7), with the following exceptions:
    (1) references to ``service, financial aid, or benefit'' have been 
changed to ``aid, benefits, services, or training,'' as explained in 
the discussion of the definition of the latter term in Section 37.4 
above; and
    (2) references to JTPA have been changed to refer to WIA.
    Paragraph 37.6(b)(8): This paragraph is identical to 29 CFR 
34.4(a)(10), except that a reference to WIA Title I has been inserted.
    Paragraphs 37.6(c)(1)-(2): These paragraphs contain requirements 
similar to those in 29 CFR 34.4(a)(8) and (9). Paragraph 37.6(c)(1) 
signifies that a recipient must not provide significant assistance 
under any circumstances to any agency, organization, or person that 
discriminates on a prohibited ground. Similarly, Paragraph 37.6(c)(2) 
signifies that except where doing so would cause undue hardship, a 
recipient may not refuse to accommodate an individual's religious 
practices or beliefs, even if the refusal is not based on dislike of or 
disagreement with the individual's religion. Again, this alteration is 
not intended as a substantive change from the regulations implementing 
JTPA; the change was made only to clarify the intent of the 
regulations.
    As in other paragraphs, references to JTPA have been changed to 
refer to WIA.
    Paragraph 37.6(d): This paragraph contains the same requirements as 
29 CFR 34.4(b). Consistent with plain-language guidelines, the 
paragraph has been organized slightly differently from the JTPA 
paragraph, and presented in outline form to improve its readability. 
Also, the word ``outreach'' has been added to the list of examples of 
the types of administrative determinations in which discrimination is 
prohibited. Because the list, both in the corresponding JTPA regulation 
and in this paragraph, is exemplary rather than restrictive, the 
addition of this word makes no substantive change in the paragraph.
    For consistency with the language of Section 37.7, the reference to 
``standards, procedures or criteria'' has been changed to ``standards, 
procedures, criteria, or administrative methods.'' See the discussion 
in this preamble about Paragraph 37.7(e). Similarly, the paragraph has 
been reworded to prohibit practices that defeat or substantially impair 
accomplishment of the objectives of ``the nondiscrimination and equal 
opportunity provisions of WIA and this part,'' as well as those of the 
program or activity in question.
    As in other paragraphs, references to JTPA have been changed to 
refer to WIA.
    Paragraph 37.6(e): This paragraph contains the same requirements as 
29 CFR 34.4(c). Again, consistent with plain-language guidelines, the 
paragraph has been organized slightly differently from the JTPA 
paragraph, and presented in outline form to improve its readability. 
Also, references to JTPA have been changed to refer to WIA.
    Paragraph 37.6(f): This paragraph prohibits participants in a WIA 
Title I--financially assisted program or activity from being employed 
or trained to construct, operate, or maintain any part of a facility 
that is or will be used primarily for sectarian instruction or 
religious worship. This paragraph is directly based on, and implements, 
Section 188(a)(3) of WIA.
    Paragraph 37.6(g): This paragraph is identical to 29 CFR 34.4(d).

Section 37.7  What specific discriminatory actions based on disability 
are prohibited by this part?

    This section contains the same requirements as 29 CFR 34.5, with 
additional material modeled on the regulations implementing Title II of 
the ADA. Differences between this section and the corresponding 
sections of the JTPA nondiscrimination regulations or ADA regulations 
are discussed below.
    Paragraphs 37.7(a)(1)-(3): These paragraphs are identical to 29 CFR 
34.5(a)(1)-(3), except that references to JTPA have been changed to 
refer to Title I of WIA.
    Paragraph 37.7(a)(4): This paragraph is identical to 29 CFR 
34.5(a)(4), with the following exceptions:
    (1) The paragraph specifies that, except when necessary to 
accommodate a qualified individual with a disability, a recipient may 
not provide ``segregated'' aid, benefits, services, or training to 
individuals with disabilities. This addition is intended to clarify and 
emphasize that a recipient may provide special programs or activities 
designed for and limited to individuals with disabilities, but may not 
require that individuals with disabilities attend only such programs or 
activities. In other words, qualified individuals with disabilities 
must be offered the option of participating in the same programs or 
activities that are offered to non-disabled individuals. This change is 
not intended to provide a substantive change from the JTPA

[[Page 61699]]

nondiscrimination regulations. It was inserted only to clarify the 
intent of the regulations.
    (2) The beginning of 29 CFR 34.5(a)(4) prohibits recipients from 
providing different or separate ``aid, benefits, or services'' to 
individuals with disabilities; the end of the same paragraph refers to 
``aid, benefits, services or training.'' For consistency, the paragraph 
has been modified to refer to ``aid, benefits, services, or training'' 
in both places. Again, this change is not intended to provide a 
substantive change from the meaning of the regulations implementing 
JTPA.
    Paragraphs 37.7(a)(5)-(6): These paragraphs are identical to 29 CFR 
34.5(a)(6)-(7), except that references to JTPA have been changed to 
refer to Title I of WIA.
    Paragraph 37.7(b): This paragraph tracks the language of 29 CFR 
34.5(a)(5). Like Paragraph 37.6(c)(1), it has been placed in a separate 
paragraph to clarify that a recipient must not provide significant 
assistance to any agency, organization, or person that discriminates on 
the basis of disability, even if the recipient has no discriminatory 
motivation in providing the assistance.
    Paragraphs 37.7(c)-(d): These paragraphs are identical to 29 CFR 
34.5(b)-(c), except that references to JTPA have been changed to refer 
to Title I of WIA.
    Paragraph (d) requires recipients to administer WIA Title I-
financially assisted programs and activities in ``the most integrated 
setting appropriate to the needs of qualified individuals with 
disabilities.'' This language means that the recipient must provide 
programs or activities in a setting that enables individuals with 
disabilities to interact with non-disabled persons to the fullest 
extent possible.
    Paragraph 37.7(e): This paragraph contains the same requirements as 
29 CFR 34.5(d). Differences between the paragraph and the corresponding 
paragraphs of the JTPA nondiscrimination regulations are explained 
below.
    (1) Consistent with plain-language guidelines, the word ``utilize'' 
in Paragraph 34.5(d) has been replaced by ``use.''
    (2) For consistency with the language of Section 37.6(d), the 
reference to ``criteria or administrative methods'' has been changed to 
``standards, procedures, criteria, or administrative methods.'' See the 
discussion in this preamble about Paragraph 37.6(d).
    (3) Paragraph 34.5(d)(1) prohibited the use of such methods that 
have ``the effect of'' discriminating against qualified individuals 
with disabilities. This wording has been changed to prohibit methods 
that have ``the purpose or effect of'' such discrimination. This 
addition was made for two reasons:
    (a) because WIA Section 188 makes clear that purposeful 
discrimination against qualified individuals with disabilities is also 
prohibited; and
    (b) to make the language of Paragraph 34.5(d)(1) consistent with 
the language of the remaining paragraphs in the section, which prohibit 
activities that have ``the purpose or effect of'' discrimination.
    (3) References to JTPA have been changed to refer to Title I of 
WIA.
    None of these changes is intended to alter the meaning of the 
paragraphs from the meaning of the corresponding paragraphs in the JTPA 
nondiscrimination regulations.
    Paragraph 37.7(f): This paragraph contains the same requirements as 
29 CFR 34.5(e). Consistent with plain-language guidelines, the 
paragraph has been organized slightly differently from the 
corresponding paragraph in the JTPA nondiscrimination regulations, and 
presented in outline form to improve its readability. Also, references 
to JTPA have been changed to refer to WIA.
    Paragraphs 37.7(g)-(h): These paragraphs are based on 28 CFR 
35.130(b)(5)-(6), from the regulations implementing Title II of the 
ADA. Differences between the paragraphs and the corresponding 
paragraphs of the ADA Title II regulations are explained below.
    (1) Two changes have been made in order to tailor the regulations 
to the requirements of the WIA program:
    (a) The reference in Paragraph 37.7(g) to ``procurement 
contractors'' has been changed to ``contractors'; and
    (b) References to ``public entity'' have been changed to 
``recipient'; and
    (2) References to the ADA have been replaced by references to WIA.
    These provisions have been modeled upon the ADA Title II 
regulations in order to ensure that requirements under Section 188 of 
WIA follow generally the requirements of ADA Title II. Many recipients 
of WIA Title I financial assistance are also subject to the 
requirements of Title II, which applies to public entities including 
State and local governments and their departments, agencies, and 
instrumentalities. See 42 U.S.C. 12131. Modeling the WIA regulations on 
the ADA Title II regulations ensures that these recipients are subject 
to similar obligations and responsibilities under both laws.
    Paragraph 37.7(h), which discusses licensing and certification 
programs, gives CRC jurisdiction only over recipients of WIA Title I 
financial assistance. For example, a state electrician certification 
program run by a State agency that does not benefit from WIA Title I 
financial assistance would not be required to comply with this 
paragraph. Such an agency would, however, be required to comply with 
the similar requirements set forth in 28 CFR 35.130(b)(6), in the ADA 
Title II regulations.
    Paragraphs 37.7(i)-(l): These paragraphs are based on 28 CFR 
35.130(b)(8), (c), (f), and (g), from the regulations implementing 
Title II of the ADA. Differences between the paragraphs and the 
corresponding paragraphs of the ADA Title II regulations are explained 
below.
    (1) References to ``public entity'' have been changed to 
``recipient'; and
    (2) References to ``service(s)'' have been changed to ``aid, 
benefits, services, or training.''
    Both of these changes have been made in order to tailor the 
regulations to the requirements of the WIA program. Neither change is 
intended to alter the meaning of the paragraphs.
    Paragraph 37.7(m): This paragraph is identical to 29 CFR 34.5(g), 
except that additional punctuation has been added to improve the 
material's clarity.
    Paragraph 37.7(n): This paragraph contains the same requirements as 
29 CFR 34.5(h). The paragraph has been presented in outline form to 
improve its readability.
    Paragraph 37.7(o): This paragraph is based on 28 CFR 35.130(e), 
from the regulations implementing Title II of the ADA, except that 
references to the ADA have been replaced by references to WIA. This 
change is not intended to alter the meaning of the paragraph.

Section 37.8  What are a recipient's responsibilities regarding 
reasonable accommodation and reasonable modification for individuals 
with disabilities?

    This section is based on 28 CFR 35.130(b)(7), which requires public 
entities to make ``reasonable modifications'' in ``policies, practices 
or procedures when the modifications are necessary to avoid 
discrimination on the basis of disability.'' To this requirement has 
been added the obligation that in providing aid, benefits, services, 
training, or employment, a recipient must make ``reasonable 
accommodation'' for qualified individuals with disabilities.
    The two concepts are similar in that they both require a recipient 
to consult

[[Page 61700]]

with each individual with a disability who requests an accommodation(s) 
or modification(s); to make an individual determination about the 
alterations necessary in each case; and to take appropriate action 
based upon that determination. The concepts differ, however, in the 
standards used to determine ``reasonableness.'' An accommodation is 
``reasonable'' unless providing the requested accommodation would cause 
the recipient undue hardship. A modification, by contrast, is 
``reasonable'' unless making the modification would require a 
fundamental alteration in the nature of the service, program, or 
activity that the recipient is providing. See the definitions of 
``fundamental alteration,'' ``reasonable accommodation,'' and ``undue 
hardship'' in Section 37.4.
    The EEOC's Enforcement Guidance on Reasonable Accommodation and 
Undue Hardship Under the Americans with Disabilities Act may help 
recipients and others understand these concepts, particularly as 
applied in the employment context. The Guidance is available from EEOC 
or through EEOC's web site at www.eeoc.gov.
    The procedures, set forth in paragraphs 37.8(a)(1)-(2) and (b)(1)-
(2), that a recipient must follow in determining whether a requested 
accommodation would cause undue hardship, or a requested modification 
would result in a fundamental alteration, are derived from the 
procedures set forth in 29 CFR 34.6(f)(1)-(3) for making similar 
determinations with regard to communications with individuals with 
disabilities. See the discussion in this preamble about Paragraphs 
37.9(f)(1)-(3).

Section 37.9  What are a recipient's responsibilities to communicate 
with individuals with disabilities?

    Generally, this section contains the same requirements as 29 CFR 
34.6. Differences between the section and the corresponding section of 
the JTPA nondiscrimination regulations are described below.
    Paragraph 37.9(a): This paragraph requires recipients to ensure 
that communication with certain groups of individuals with disabilities 
are as effective as communications with others. The paragraph is 
identical to Paragraph 34.6(a), except that the term ``registrants'' 
has been added to the list of such groups. The addition is necessary in 
order to tailor the regulations to the requirements of the WIA program. 
This change is not intended to alter the meaning of the paragraph.
    Paragraph 37.9(b): Two words have been added to this paragraph in 
order to clarify its meaning. The first sentence of the paragraph 
requires a recipient to ``furnish appropriate auxiliary aids or 
services when necessary'' to give individuals with disabilities an 
equal opportunity to participate in the program or activity that 
receives Federal financial assistance. However, the second sentence of 
29 CFR 34.6(b) referred only to a recipient's obligation to determine 
what auxiliary aids or services are ``necessary.'' In order to 
eliminate confusion, the phrase ``appropriate and'' has been added to 
the second sentence, so that it now refers to a recipient's obligation 
to determine what auxiliary aids or services are ``appropriate and 
necessary.''
    Paragraph 37.9(c): The JTPA counterpart to this paragraph is 29 CFR 
34.6(c). That paragraph was written in the passive voice. The paragraph 
has been shifted to the active voice, to clarify that the recipient has 
the responsibility of using telecommunications devices for individuals 
with hearing impairments, or other equally effective communications 
systems, in order to communicate by telephone with such individuals. 
Additionally, the acronym ``TTY,'' which is occasionally used as an 
alternative to the acronym ``TDD'' for such communications systems, has 
been added.
    The phrase ``telephone relay services,'' which has been added as an 
example of an ``equally effective communications system,'' refers to 
services established under Title IV of the ADA to permit communications 
between individuals who communicate by TDD/TTY and individuals who 
communicate by the telephone alone. These relay services involve a 
relay operator using both a standard telephone and a TDD/TTY to type 
the voice messages to the TDD/TTY user and read the TDD/TTY messages to 
the standard telephone user. Where such relay services are available, a 
recipient may use these services to meet the requirements of this 
section. However, where the recipient has extensive telephone contact 
with the public, or where the provision of telephone services is a 
major function of the recipient, the recipient should use TDDs/TTYs to 
ensure more immediate access.
    Paragraph 37.9(d): This paragraph is identical to 29 CFR 34.6(d), 
except that, consistent with plain language principles, the term 
``shall'' has been replaced by ``must.''
    Paragraphs 37.9(e)(1) and (2): These paragraph generally contain 
the same information as 29 CFR 34.6(e). The information has been 
presented in outline form to improve its readability. In addition, two 
sentences have been added to Paragraph 37.9(e)(1) to emphasize that 
``signage'' is a term of art and to explain the standards that signage 
must meet under the regulations.
    Paragraphs 37.9(f)(1)-(3): These paragraphs, which deal with 
circumstances in which a recipient believes that a particular action 
would result in a fundamental alteration to the nature of a service, 
program, or activity, contain the same requirements as 29 CFR 
34.6(f)(1)-(3). Because the Interim Final Rule (unlike the JTPA 
nondiscrimination regulations) includes a definition of ``fundamental 
alteration'' that incorporates the concept of ``undue financial and 
administrative burdens,'' that phrase is now redundant, and has been 
omitted from the paragraphs. See the discussion in this preamble about 
the definition of ``fundamental alteration'' in Section 37.4. In 
addition, references to JTPA have been changed to refer to WIA. None of 
these changes is intended to alter the meaning of these paragraphs.

Section 37.10  To what extent are employment practices covered by this 
part?

    This section contains information similar to that in 29 CFR 
34.7(b)-(g). References to JTPA have been changed to refer to WIA. In 
addition, the reference to Equal Employment Opportunity Commission 
``guidelines'' has been changed to ``guidance,'' and the material in 29 
CFR 34.7(a), which defines the term ``employment practices,'' has been 
moved to the definition section (Section 37.4) in this Interim Final 
Rule. These changes are not intended to alter the meaning of the 
section.
    Paragraph 37.10(a)(1) and (2): These paragraphs contain information 
similar to that in 29 CFR 34.7(b). Language has been added to this 
paragraph to clarify that the section applies to the employment 
practices of any program or activity that is part of the One-Stop 
delivery system and is operated by a One-Stop partner listed in Section 
121(b) of WIA, to the extent that the program or activity is being 
conducted as part of the One-Stop delivery system. In addition, the 
information has been presented in outline form to improve its 
readability.
    Paragraph 37.10(d): The corresponding paragraph in the JTPA 
nondiscrimination regulations, 29 CFR

[[Page 61701]]

34.7(e), stated that part 34 did not affect recipients' obligations to 
comply with the provisions of Subparts B and C and Appendix A of 29 CFR 
part 32. As noted in the discussion in this preamble about Paragraph 
37.3(b), that paragraph has been amended to incorporate the cited 
provisions by reference. This paragraph has been amended accordingly.
    Paragraph 37.10(f): This paragraph, which notes that recipients 
should be aware of their obligations to comply with the anti-
discrimination provisions of the Immigration and Nationality Act, has 
been added at the request of the Department of Justice. See the 
discussion in this preamble about Paragraph 37.3(c)(9).

Section 37.11  To what extent are intimidation and retaliation 
prohibited by this part?

    This section contains the same requirements as 29 CFR 34.8. 
Consistent with plain-language guidelines, the section has been 
organized slightly differently from the JTPA section, and presented in 
outline form to improve its readability. Also, references to JTPA have 
been changed to refer to WIA. None of these changes is intended to 
alter the meaning of the section.

Section 37.12  What Department of Labor office is responsible for 
administering this part?

    This section contains the same requirements as 29 CFR 34.9(a). The 
section refers to the Civil Rights Center, or CRC, which was known as 
the Directorate of Civil Rights, or DCR, at the time the JTPA 
nondiscrimination regulations were promulgated. Also, references to 
JTPA in the previous section have been changed in this section, where 
appropriate, to refer to WIA. Neither of these changes is intended to 
alter the meaning of this section.
    Some recipients have expressed confusion about which Department of 
Labor agency they should contact for answers to questions about the 
nondiscrimination and equal opportunity requirements of the JTPA and 
WIA programs. This confusion is understandable: the Department's 
Employment and Training Administration (ETA) is responsible for, and 
has expertise about, most aspects of the JTPA and WIA programs. As a 
result, recipient staff members are accustomed to approaching ETA 
personnel for answers to JTPA- and WIA-related questions. However, CRC, 
rather than ETA, is responsible for, and has expertise about, the 
particular aspects of the JTPA and WIA programs relating to 
nondiscrimination and equal opportunity. Recipients will therefore be 
able to receive more expeditious answers to questions about these 
aspects of the programs by contacting CRC directly.

Section 37.13  Who is responsible for providing interpretations of this 
part?

    This section is identical to 29 CFR 34.9(b), except that the 
reference to JTPA has been changed to refer to WIA. This change is not 
intended to alter the meaning of this section. See the discussion of 
Section 37.12 above.

Section 37.14  Under what circumstances may the Secretary delegate 
responsibility under this part?

    This section is identical to 29 CFR 34.12(a) and (b), with the 
following exceptions:
    (1) The references to other regulatory sections within part 34 have 
been changed to reflect the numbering of this Interim Final Rule; and
    (2) References to JTPA have been changed to refer to WIA.
    Neither of these changes is intended to alter the meaning of this 
section.

Section 37.15  What are the Director's responsibilities to coordinate 
with other civil rights agencies?

    This section generally contains the same requirements as 29 CFR 
34.12(c). At the request of the Department of Justice, a reference to 
the anti-discrimination provision of the Immigration and Nationality 
Act has been added to the list of laws with regard to which the 
Director must coordinate with other Federal civil rights agencies. See 
the discussion in this preamble about Paragraph 37.3(c)(9).
    In addition, consistent with plain-language guidelines, this 
section has been organized slightly differently from the JTPA section, 
and presented in outline form to improve its readability. Also, 
references to JTPA have been changed to refer to WIA. Neither of the 
latter changes is intended to alter the meaning of this section.

Section 37.16  What is this part's effect on a recipient's obligations 
under other laws, and what limitations apply?

    Paragraphs (a) and (b) of this section are identical to the 
corresponding paragraphs in 29 CFR 34.11, except that references to 
JTPA have been changed to refer to WIA. This change is not intended to 
alter the meaning of the paragraphs.
    Paragraph (a) of this section means that a recipient is not excused 
from complying with the nondiscrimination and equal opportunity 
provisions of WIA and this part, even if a State or local law requires 
the recipient to discriminate on a prohibited ground.
    Similarly, paragraph (b) of this section means that no rule or 
regulation of a private organization, club, league, or association that 
requires a recipient to discriminate on a prohibited ground excuses a 
recipient from complying with the nondiscrimination and equal 
opportunity provisions of WIA and this part.
    Paragraph (c) of this section contains the same requirements as 29 
CFR 34.11(c). It has been rewritten to improve its clarity. The 
paragraph bars recipients, while recruiting, selecting, or placing 
individuals in programs or activities, from considering whether job 
opportunities in any particular occupation or profession will be open 
to qualified individuals with disabilities, or to persons of a certain 
race, color, religion, sex, national origin, age, political affiliation 
or belief, or citizenship. For example, a recipient operating a WIA 
Title I--financially assisted training program must not steer women 
away from training programs for construction work because the recipient 
believes that women will have difficulty finding jobs in construction. 
This paragraph does not change the recipient's general obligation under 
WIA to assure that training is focused on occupations that are in 
demand.

Subpart B--Recordkeeping and Other Affirmative Obligations of 
Recipients

    The requirements in this subpart are generally similar to the 
requirements in Subpart B of part 34. Consistent with plain-language 
guidelines, some of the sections within the subpart have been 
rearranged in a more logical order, and lengthy sections have been 
divided into shorter sections treating narrower topics. These changes 
are not intended to alter the overall meaning of this subpart, or the 
meaning of any of its component sections.

Assurances

Section 37.20  What is a recipient's obligation to provide a written 
assurance?

    This section contains the same requirements as 29 CFR 34.20(a) and 
(b). Differences between this section and the corresponding section of 
the JTPA nondiscrimination regulations are described below.
    Paragraph 37.20(a)(1): In this paragraph, the introductory 
paragraph has been rewritten to eliminate redundancy, and the required 
assurance has been rewritten consistent with plain-language guidelines. 
These

[[Page 61702]]

changes are not intended to alter the meaning of the assurance or the 
paragraph.
    The rewritten assurance states that the recipient must not 
discriminate on the basis of ``citizenship/status as a lawfully 
admitted immigrant authorized to work in the United States.'' This 
change has been made to convey more accurately the definition of 
``discrimination on the ground of citizenship'' contained in Section 
37.4.
    Paragraphs 37.20(a)(2): These paragraphs are identical to 29 CFR 
34.20(a)(2) and (b), with the following exceptions:
    (1) The references to other regulatory sections within part 34 have 
been changed to reflect the numbering of this Interim Final Rule; and
    (2) References to JTPA have been changed to refer to WIA.
    Neither of these changes is intended to alter the meaning of these 
paragraphs.

Section 37.21  How long will the recipient's obligation under the 
assurance last, and how broad is the obligation?

    This section contains the same general requirements as 29 CFR 
34.20(c). References to JTPA have been changed to refer to Title I of 
WIA, and the material has been presented in outline form to improve its 
clarity. In addition, two new clauses have been added. The first clause 
extends the obligation for the period during which the property is used 
``for another purpose involving the provision of * * * services or 
benefits'' that are similar to those provided under WIA Title I. This 
clause has been added for consistency with other Federal regulations 
involving Federally-assisted programs. See, e.g., 28 CFR 42.105(a)(1) 
(implementing Title VI); 34 CFR 100.4(a)(1) (applying Title VI to 
programs assisted through the Department of Education).
    The second new clause extends the obligation under the assurance to 
a transferee for the period until the transferee has compensated the 
Departmental grantmaking agency for the fair market value of the 
property transferred. This clause has been added in order to ensure 
that a transferee may not benefit from a transfer of property under the 
WIA Title I program without being subjected to the nondiscrimination 
and equal opportunity obligations of WIA and this part.

Section 37.22  How must covenants be used in connection with this part?

    Generally, this section contains the same requirements as 29 CFR 
34.20(d). References to JTPA have been changed to refer to Title I of 
WIA. In addition, paragraph (a) has been amended to require that the 
covenant must assure compliance with the nondiscrimination and equal 
opportunity provisions for the period described in Section 37.21. 
Additionally, the clause, described in the discussion of Section 37.21, 
that extends the obligation for the period during which the property is 
used ``for another purpose involving the provision of similar services 
or benefits'' has been added to this section as well. See the 
discussion of Section 37.21 above.

Equal Opportunity Officers

Section 37.23   Who must designate an Equal Opportunity Officer?

    This section is based on the first sentence of 29 CFR 34.22(a). The 
section is not intended to alter the requirements of the corresponding 
JTPA regulation with regard to the entities that are required to 
designate Equal Opportunity Officers (``EO Officers'').

Section 37.24  Who is eligible to serve as an Equal Opportunity 
Officer?

    The material in this section is new. It is intended to clarify and 
emphasize the significance and level of authority that recipients must 
give to the Equal Opportunity Officer position, and to the individual 
who holds that position. Much (though by no means all) of the 
responsibility for a recipient's nondiscrimination and equal 
opportunity program rests on the shoulders of the EO Officer. CRC's 
experience has demonstrated that in order for such programs to function 
fairly and effectively, the EO Officer must be a senior-level employee 
whose responsibilities in the position present no conflicts of interest 
with his or her other responsibilities. In addition, the recipient must 
establish clear lines of authority and accountability for the program, 
and must provide the EO Officer with appropriate levels of support. See 
the discussion of Sections 37.25 and 37.26 below.
    As with part 34, this section does not require that recipients 
designate a separate or additional EO Officer to implement the 
nondiscrimination obligations imposed by WIA and this part. Nor is this 
section intended to require that the WIA EO Officer be employed in that 
position full-time. Recipients may still use their existing EO Officer 
and staff (assuming that the EO Officer meets the requirements of this 
section), or assign additional, non-WIA-related duties to a newly-
appointed EO Officer, so long as the EO Officer is able to give top 
priority to, and to adequately accomplish all of, his/her 
responsibilities under the nondiscrimination and equal opportunity 
provisions of WIA and this part.

Section 37.25  What are the responsibilities of an Equal Opportunity 
Officer?

    This section consolidates and clarifies the responsibilities that 
were conferred on EO Officers under 29 CFR part 34. The source of each 
proposed paragraph is set forth below.
    The list of responsibilities provided in this section is not 
intended to be exclusive. The EO Officer must also perform any 
additional duties that may arise from his/her administration of the 
recipient's nondiscrimination and equal opportunity obligations under 
WIA and this part.
    Paragraph 37.25(a): This paragraph, which requires the EO Officer 
to serve as the recipient's liaison with CRC, contains one of the 
recipients' responsibilities listed in 29 CFR 34.22(a). Other 
responsibilities listed in that paragraph of the JTPA nondiscrimination 
regulations are discussed in appropriate sections below.
    This paragraph of the Interim Final Rule signifies that the EO 
Officer and his/her staff will serve as the point of contact for all 
recipient personnel who have questions about WIA's nondiscrimination 
and equal opportunity program. The EO Officer will have both expertise 
in the subject and an ongoing relationship with CRC staff. Because of 
that expertise, the EO Officer may be able to answer recipient staff 
members' questions based on his or her own knowledge of the program.
    In addition, CRC has found this requirement to be a significant 
component of a program with clear lines of authority and 
accountability, as discussed in Section 37.24 above. Having a single 
point of contact, at both the recipient and departmental levels, helps 
to ensure a consistent interpretation and application of the 
requirements of the nondiscrimination and equal opportunity provisions 
of WIA and this part. See the discussion above about Section 37.12.
    Paragraphs 37.25(b)-(c): These paragraphs require the EO Officer to 
monitor the activities of the recipient and its recipients to ensure 
that the recipients' nondiscrimination and equal opportunity 
obligations are not being violated, and to review their written 
policies to ensure that those policies are nondiscriminatory. CRC's 
experience has demonstrated that these two responsibilities are an 
integral part of the most effective equal opportunity programs of 
recipients under JTPA.

[[Page 61703]]

    These paragraphs are not intended to impose additional 
responsibilities upon recipients or their EO Officers. The paragraphs 
are intended merely to clarify the responsibilities that were already 
imposed under the JTPA program, and to emphasize that the EO Officer 
should take a leadership role in the operation of the recipient's 
nondiscrimination and equal opportunity programs.
    Paragraph 37.25(d): This paragraph, which requires the EO Officer 
to adopt, publish, and oversee the recipient's procedures for 
processing discrimination complaints, contains the same requirements as 
29 CFR 34.42(b).
    Paragraphs 37.25(e)-(g): These paragraphs contain the 
responsibilities of EO Officers that are listed in 29 CFR 34.22(a). 
Other responsibilities listed in that paragraph of the JTPA 
nondiscrimination regulations belong to recipients and are listed 
above, in Paragraph 37.25(a), or below, in Section 37.26.

Section 37.26  What are a recipient's obligations relating to the Equal 
Opportunity Officer?

    This section consolidates and clarifies the obligations that were 
conferred on recipients under 29 CFR part 34 regarding their EO 
Officers. The source of each paragraph is set forth below.
    Paragraph 37.26(a): This paragraph, which requires recipients to 
publicize the EO Officer's name and contact information, contains the 
same requirements, in a more detailed form, as the last sentence of 29 
CFR 34.22(a).
    Paragraph 37.26(b): This paragraph clarifies that where a recipient 
provides internal and external notice about its nondiscrimination and 
equal opportunity programs, it must also provide information about ways 
to contact its EO Officer. See 29 CFR 34.23(a) and (b), and the 
discussion of Sections 37.29 through 37.31, 37.34, and 37.36 below.
    Paragraph 37.26(c): This paragraph is based on 29 CFR 34.22(b). It 
has been rewritten to emphasize that, as explained in the discussion of 
Section 37.24 above, the success of a recipient's nondiscrimination and 
equal opportunity program depends heavily upon the tangible and 
intangible support that the recipient provides to its EO Officer, and 
that the recipient's top management should provide a significant 
percentage of that support.
    Paragraph 37.26(d): This paragraph requires a recipient to ensure 
that the EO Officer and his/her staff are afforded the opportunity to 
receive the training necessary and appropriate to maintain competency. 
This requirement is based on the language 29 CFR 34.22(a) which 
required the recipient to pay for any training that the Director 
required its EO Officer and staff to take. The requirement has been 
rewritten to emphasize that the recipient is responsible for ensuring 
that its EO Officer and staff maintain the level of knowledge, skills, 
and abilities necessary to carry out their responsibilities fully and 
effectively, and that the training needed to maintain this level of 
competency in a particular case, or for a particular recipient, may be 
more extensive than the training that the Director requires.

Section 37.27  What are the obligations of small recipients relating to 
Equal Opportunity Officers?

    This section contains the same requirements as 29 CFR 34.22(c). 
Consistent with plain-language guidelines, the section has been 
slightly rewritten to improve its clarity. Also, the reference to other 
regulatory sections within part 34 has been changed to reflect the 
numbering of this Interim Final Rule. These changes are not intended to 
alter the meaning of this section.

Section 37.28  What are the obligations of service providers relating 
to Equal Opportunity Officers?

    This section contains the same requirements as 29 CFR 34.22(d). As 
with Section 37.27, the section has been slightly rewritten, and the 
reference to another regulatory section within part 34 has been changed 
to reflect the numbering of this Interim Final Rule. Also, JTPA-related 
terminology (the references to SDA grant recipients and Substate 
grantees) has been replaced by WIA-related terminology (the reference 
to LWIA grant recipients). Again, these changes are not intended to 
alter the meaning of this section.

Notice and Communications

Section 37.29  What are a recipient's obligations to disseminate its 
equal opportunity policy?

    This section contains the same requirements as 29 CFR 34.23(a)(1), 
with the addition of related material from 34.23(a)(7). Consistent with 
plain-language guidelines, the section has been organized slightly 
differently from 29 CFR 34.23(a)(1), and has been presented in outline 
form to improve its readability. Also, WIA-related terminology (the 
reference to ``registrants'') has been added where appropriate, and the 
reference to another regulatory section within part 34 has been changed 
to reflect the numbering of this Interim Final Rule. None of these 
changes is intended to alter the meaning of this section.

Section 37.30  What specific wording must the notice contain?

    This section contains the same requirements as 29 CFR 34.23(a)(5). 
Both the introductory language and the notice have been rewritten 
consistent with plain-language guidelines. Also, references to JTPA 
have been replaced by references to WIA Title I, and the time frame 
within which a recipient must process a complaint has been extended to 
90 days, consistent with the changes included in this Interim Final 
Rule. See the discussion of Section 37.76 in this preamble; see also 
the notice in Section 37.30 of the Interim Final Rule.
    The rewritten notice states that the recipient must not 
discriminate on the basis of ``citizenship/status as a lawfully 
admitted immigrant authorized to work in the United States.'' This 
change has been made to convey more accurately the definition of 
``discrimination on the ground of citizenship'' contained in Section 
37.4.
    The notice contains references to a document entitled a ``Notice of 
Final Action.'' As discussed in Section 37.76 of this preamble, the 
``Notice of Final Action'' is merely a formal name for a document that 
a recipient was required under part 34 to issue when it finished 
processing a discrimination complaint. Therefore, the reference to a 
``Notice of Final Action'' is not a substantive change to the notice 
required by this section.

Section 37.31  Where must the notice required by Sections 37.29 and 
37.30 be published?

    This section contains the same requirements as 29 CFR 34.23(a)(2) 
and (3). Consistent with plain-language guidelines, the section has 
been organized slightly differently from the JTPA nondiscrimination 
regulations, and has been presented in outline form to improve its 
readability. Also, the reference to another regulatory paragraph within 
part 34 has been changed to reflect the numbering of this Interim Final 
Rule. None of these changes is intended to alter the meaning of the 
section.
    A reference to ``electronic communications'' has been added to 
Section 37.31(a)(2), to reflect the growth in computer technology, and 
the related expansion of electronic communications, that have taken 
place since the JTPA nondiscrimination regulations were promulgated in 
1992.

[[Page 61704]]

Section 37.32  When must the notice required by Sections 37.29 and 
37.30 be provided?

    This section contains the same requirements as 29 CFR 34.23(a)(4). 
Consistent with plain-language guidelines, the section has been 
organized slightly differently from the JTPA nondiscrimination 
regulations. Also, the reference to another regulatory paragraph within 
part 34 has been changed to reflect the numbering of this Interim Final 
Rule. Neither of these changes is intended to alter the meaning of the 
paragraph.

Section 37.33  Who is responsible for meeting the notice requirement 
with respect to service providers?

    This section contains the same requirements as 29 CFR 34.23(a)(6). 
JTPA-related terminology (the references to SDA grant recipients and 
Substate grantees) has been replaced by WIA-related terminology (the 
references to the LWIA grant recipient). Also, the reference to another 
regulatory paragraph within part 34 has been changed to reflect the 
numbering of this Interim Final Rule. Neither of these changes is 
intended to alter the meaning of the section.

Section 37.34  What type of notice must a recipient include in 
publications, broadcasts, and other communications?

    This section contains the same requirements as 29 CFR 34.23(b). 
Differences between the section and the corresponding paragraph of the 
JTPA nondiscrimination regulations are described below.
    Paragraph 37.34(a): Consistent with plain-language guidelines, this 
paragraph has been organized slightly differently from 29 CFR 
34.23(b)(1), the corresponding paragraph in the JTPA nondiscrimination 
regulations. To reflect the growth in computer technology, and the 
related expansion of electronic communications, a reference to 
``materials that are ordinarily distributed or communicated in written 
and/or oral form, electronically and/or on paper,'' has been added. 
Also, because materials that ``describe programs funded under [Title I 
of WIA] or the requirements for participation by recipients and 
participants'' are frequently distributed to staff and clients, as well 
as to the public, a reference to those two groups has been added. In 
addition, the acronym ``TTY,'' which, as previously noted, is 
occasionally used as an alternative to the acronym ``TDD,'' has been 
added. Finally, references to JTPA have been replaced by references to 
WIA Title I, and the reference to another regulatory paragraph within 
part 34 has been changed to reflect the numbering of this Interim Final 
Rule.
    Paragraph 37.34(b): The reference to recipients ``required by law 
or regulation to'' publish or broadcast information in the news media 
has been deleted, in order to clarify that all recipients must include 
the required notice in written and electronic publications and 
broadcasts, regardless of whether those publications or broadcasts are 
required. Also, references to JTPA have been replaced by references to 
WIA Title I.
    Paragraph 37.34(c): The language contained in 29 CFR 34.23(c) that 
prohibited a recipient from ``us[ing] or distribut[ing] a publication 
of the type described in paragraph (b) of this section'' has been 
replaced by language prohibiting a recipient from ``communicating any 
information.'' As with other changes described above, this change was 
made to reflect the growth of electronic communication. Recipients now 
may reach staff, clients, or the general public through e-mail and 
Internet Web sites, as well as through the traditional publications on 
paper that were contemplated by the JTPA nondiscrimination regulations.
    Additionally, references to JTPA have been replaced by references 
to WIA Title I, and the reference to another regulatory paragraph 
within part 34 has been changed to reflect the numbering of this 
Interim Final Rule.

Section 37.35  What are a recipient's responsibilities to provide 
services and information in languages other than English?

    The requirements in this section are authorized by the provision in 
Section 188 of WIA that bars recipients from discriminating on the 
basis of national origin. Cf. Lau v. Nichols, 414 U.S. 563 (1974) 
(school system required to provide English language instruction to 
students of Chinese ancestry who do not speak English under Section 601 
of the Civil Rights Act of 1964, 42 U.S.C. 2000d, which bans 
discrimination based on national origin in programs or activities 
receiving Federal financial assistance).
    Paragraph (a) of this section contains the same requirements as 29 
CFR 34.23(c). Consistent with plain-language guidelines, this paragraph 
has been organized slightly differently from the corresponding 
paragraph in the JTPA nondiscrimination regulations, and has been 
presented in outline form to improve its readability. Also, references 
to JTPA have been replaced by references to WIA Title I, and the 
references to other regulatory paragraphs within part 34 have been 
changed to reflect the numbering of this Interim Final Rule.
    Paragraph (b) has been added in order to clarify the 
responsibilities of recipients to provide services and information to 
individuals with limited English-speaking skills where the number or 
proportion of such persons in the community served by the recipient 
does not reach the levels described in paragraph (a). In such 
circumstances, a recipient should make reasonable efforts to meet the 
particularized needs of any such individuals who seek services or 
information from that recipient.
    The differences between paragraphs (a) and (b) of this section may 
be explained as follows: Paragraph (a) requires a recipient to take 
certain actions before individuals with limited English skills seek 
assistance from the recipient. Under this paragraph, the recipient must 
assess the scope of its program or activity and the size and 
concentration of the population it serves, and establish and carry out 
a plan to provide services and information in the language (or 
languages) used by a significant number or proportion of members of 
that population. Depending upon the combination of these factors, that 
plan may include printing materials in the language used by the 
``significant number or proportion of the population,'' hiring 
permanent staff members who are qualified interpreters in that 
language, or various other options.
    Under paragraph (b), by contrast, a recipient is not required to 
take action in advance. However, when an individual with limited 
English skills--who does not speak a language spoken by a ``significant 
number or proportion of the population''--seeks services or information 
from the recipient, the recipient should then make reasonable efforts 
to meet the particularized needs of that individual. Such efforts may 
include, but are not limited to, locating and temporarily employing a 
qualified interpreter who can communicate in the appropriate language.
    As technology advances, various options for complying with the 
requirements of this section, such as computerized and/or on-line 
translation services, are becoming increasingly available to 
recipients, and the cost of these options is decreasing.

Section 37.36  What responsibilities does a recipient have to 
communicate information during orientations?

    This section contains the same requirements as 29 CFR 34.23(d).

[[Page 61705]]

Consistent with plain-language guidelines, the section has been 
organized slightly differently from the corresponding paragraph in the 
JTPA nondiscrimination regulations. Also, references to JTPA have been 
replaced by references to WIA Title I. In addition, because recipients 
may provide orientations for the general public as well as for their 
new participants and/or employees, a reference to the general public 
has been added.

Data and Information Collection and Maintenance

Section 37.37  What are a recipient's responsibilities to collect and 
maintain data and other information?

    This section contains the same requirements as 29 CFR 34.24(a), 
(a)(1), and (a)(2), with additional, related material included from 29 
CFR 34.24(a)(3)(iii), (a)(7), and (e). Differences between this section 
and the corresponding paragraphs of the JTPA nondiscrimination 
regulations are described below.
    Paragraph 37.37(a): This paragraph is identical to 29 CFR 34.24(a), 
except that references to JTPA have been replaced by references to WIA. 
This change is not intended to alter the meaning of the paragraph.
    Paragraph 37.37(b)(1): The first sentence of this paragraph 
contains the same requirements as 29 CFR 34.24(a)(1); references to 
JTPA have been replaced by references to WIA. The second sentence has 
been added to explain that the manner in which the records and data are 
kept must allow the Governor and CRC to monitor the recipient's 
compliance by conducting statistical and other quantifiable data 
analyses. This provision is not a new requirement; it merely clarifies 
and codifies CRC's current practices. Compare 29 CFR 34.24(a)(1).
    Paragraph 37.37(b)(2): Generally, this paragraph contains the same 
requirements as 29 CFR 34.24(a)(2). Consistent with plain-language 
guidelines, the paragraph has been slightly rewritten to improve its 
clarity. Also, references to JTPA have been replaced by references to 
WIA, and WIA-related terminology (the references to ``registrants'' and 
to ``eligible applicants/registrants'') has been added where 
appropriate. None of these changes is intended to alter the meaning of 
the paragraph.
    In addition, the last line of the paragraph has been amended to 
permit the data and information collected under paragraph (b) of this 
section to be used for such ``other use authorized by law.'' This 
change has been made to clarify that this Interim Final Rule does not 
prohibit recipients from cooperating with Federal, State, and local 
agencies that, for law enforcement purposes, seek access to the data 
and information collected.
    This section does not require recipients to obtain, or to maintain 
records regarding, the citizenship status of applicants or 
participants.
    Paragraph 37.37(c): This paragraph contains the same general 
requirements as 29 CFR 34.24(a)(3)(iii). In response to questions that 
have arisen about whether recipients must provide the required log of 
complaints to CRC when requested to do so, the first sentence has been 
amended to clarify that recipients must ``submit [the log] to CRC upon 
request.'' Because 29 CFR 34.24(a)(4) already required that grant 
applicants and recipients provide, ``[a]t the discretion of the 
Director, . . . such information and data'' that the Director 
considered necessary to determine whether the entity was complying with 
the nondiscrimination and equal opportunity requirements, this addition 
was made solely to clarify the regulations. Also, the paragraph has 
been slightly rewritten to clarify that a complaint may be based upon 
more than one prohibited ground, that every prohibited ground upon 
which a particular complaint is based must be recorded in the log, and 
that information in the log that could lead to the identification of a 
particular individual as having filed a complaint must be kept 
confidential.
    29 CFR 34.24(a)(3)(iii) contained two identical lists of prohibited 
grounds upon which complaints recorded in the required log might have 
been filed. For conciseness, the second list of prohibited grounds has 
been eliminated. Finally, references to JTPA have been replaced by 
references to WIA Title I. Neither of these two changes is intended to 
alter the meaning of the paragraph.
    Section 37.37(d): This paragraph is identical to 29 CFR 34.24(e). 
The current guidelines may be found in 62 FR No. 210, Thursday, October 
30, 1997, at 58782, 58790. They may also be found at 28 CFR 42.402(e). 
In following these guidelines, recipients should use the combined 
format for collection and reporting of data.
    Section 37.37(e): This paragraph is identical to 29 CFR 
34.24(a)(7), except that JTPA-related terminology (the reference to SDA 
grant recipients and Substate grantees) has been replaced by WIA-
related terminology (the reference to the LWIA grant recipient). This 
change is not intended to alter the meaning of the paragraph.

Section 37.38  What information must grant applicants and recipients 
provide to CRC?

    This section consolidates 29 CFR 34.24(a)(3)(i) and (ii), (a)(4), 
(a)(5), (a)(6), and (e). Requirements regarding information that grant 
applicants and recipients must provide to CRC have been grouped 
together. Differences, if any, between the section and the 
corresponding paragraphs of the JTPA nondiscrimination regulations are 
described below.
    Paragraph 37.38(a): This paragraph contains the same general 
requirements as 29 CFR 34.24(a)(3)(i). References to JTPA in the 
paragraph have been replaced by references to WIA Title I. In addition, 
the language requiring grant applicants and recipients to promptly 
notify the Director ``of any administrative enforcement actions or 
lawsuits filed against it'' has been changed to require such 
notification ``when any'' such actions or lawsuits ``are filed.'' This 
change was made because of CRC's judgment that grant applicants and 
recipients needed guidance about the precise meaning of the requirement 
that the notification be made ``promptly.'' The new language emphasizes 
that the grant applicant or recipient must notify the Director at the 
time that enforcement actions or lawsuits are filed; it also makes the 
paragraph more readable.
    Also, language that specifies the information that the notification 
must contain has been added to this paragraph. The added language is 
based upon part of 29 CFR 34.24(a)(3)(ii); the requirements are the 
same as those in Section 37.38(b)(2)(i)-(iii).
    Paragraph 37.38(b): This paragraph requires grant applicants, as 
part of their applications for assistance, and recipients, as part of a 
compliance review or monitoring activity conducted by the Director, to 
provide the Director with information about any of the following 
occurrences from the two years before the application, compliance 
review, or monitoring activity:
    (1) The names of any other Federal agencies that found the grant 
applicant or recipient to be in noncompliance with civil rights 
requirements; and
    (2) Information about any administrative enforcement actions or 
lawsuits that:
    (a) were filed during those two years; and
    (b) alleged discrimination on any protected ground.
    This paragraph contains the same requirements as 29 CFR 
34.24(a)(3)(ii). Consistent with plain-language guidelines, this 
paragraph has been

[[Page 61706]]

organized slightly differently from the corresponding paragraph in the 
JTPA nondiscrimination regulations, and has been presented in outline 
form to improve its readability. Also, references to other regulatory 
sections within part 34 have been changed to reflect the numbering of 
this Interim Final Rule. None of these changes is intended to alter the 
meaning of the paragraph.
    Paragraph 37.38(c): This paragraph is based upon 29 CFR 
34.24(a)(4). It requires grant applicants and recipients to provide CRC 
with the data and information necessary to investigate complaints and 
conduct compliance reviews. References to JTPA have been replaced by 
references to WIA; and the phrase ``in a timely manner'' has been 
inserted. This phrase was added in order to emphasize the need for 
grant applicants and recipients to respond promptly to the Director's 
requests for information. Because the corresponding paragraph in part 
34 already required grant applicants and recipients to provide 
information ``at the discretion of the Director,'' and the scope of 
Director's discretion includes the discretion to determine when 
information must be submitted, the latter change is intended merely to 
clarify the meaning of the paragraph.
    The corresponding paragraph in the JTPA nondiscrimination 
regulations specified that the requirement applied to complaints and 
compliance reviews ``on grounds prohibited under the nondiscrimination 
and equal opportunity provisions of JTPA and this part, other than 
race/ethnicity, sex, age, and disability.'' Because 29 CFR 34.24(a)(2) 
and (3) already required grant applicants and recipients to record and 
submit the race/ethnicity, sex, age, and disability of certain 
categories of persons, the paragraph was written this way to emphasize 
that grant applicants and recipients were required to provide CRC with 
records and data about additional prohibited grounds. However, grant 
applicants and recipients found the paragraph confusing. The paragraph 
therefore has been rewritten to clarify that they may be requested to 
submit data and information necessary to investigate complaints and/or 
conduct compliance reviews on any ground prohibited by the 
nondiscrimination and equal opportunity provisions of WIA and this 
part.
    Paragraph 37.38(d)-(e): These paragraphs require grant applicants 
and recipients to submit certain specified information at the 
discretion of the Director. These paragraphs are identical to 29 CFR 
34.24(a)(5)-(6), with the following exceptions:
    (1) References to JTPA have been replaced by references to WIA; and
    (2) In each paragraph, the phrase ``in a timely manner'' has been 
inserted. This phrase was added in order to emphasize the need for 
grant applicants and recipients to respond promptly to the Director's 
requests for information. As with Paragraph 37.38(c), because each 
corresponding paragraph in part 34 already required grant applicants 
and recipients to provide information ``at the discretion of the 
Director,'' and the scope of Director's discretion includes the 
discretion to determine when information must be submitted, these 
changes clarify the meaning of these paragraphs.
    Paragraph 37.38(f): This paragraph provides that where designation 
of persons by race or ethnicity is required, the guidelines of the 
Office of Management and Budget must be used. The paragraph is 
identical to 29 CFR 34.24(e), and appears in Section 37.37 as well. It 
was repeated in this section to clarify that its provisions apply to 
information provided to and collected by CRC, as well as to data and 
information collected by grant applicants and recipients. The current 
guidelines may be found in 62 FR. No. 210, Thursday, October 30, 1997, 
at 58782, 58790. They may also be found at 28 CFR 42.402(e). In 
following these guidelines, recipients should use the combined format 
for collection and reporting of data.
    Because this paragraph was applicable to 29 CFR 34.24(a)(4)-(6), 
its inclusion in this section does not impose additional 
responsibilities upon grant applicants or recipients.

Section 37.39  How long must grant applicants and recipients maintain 
the records required under this part?

    This section contains the same requirements as 29 CFR 34.24(c), 
``Record retention requirements.'' Consistent with plain-language 
guidelines, this section has been organized slightly differently from 
the corresponding paragraph in the JTPA nondiscrimination regulations, 
and has been presented in outline form to improve its readability. This 
change is not intended to alter the meaning of the section.

Section 37.40  What access to sources of information must grant 
applicants and recipients provide the Director?

    This section generally contains the same requirements as 29 CFR 
34.24(b), ``Access to sources of information.'' References to JTPA have 
been replaced by references to WIA. In addition, the sentence 
``Information obtained pursuant to the requirements of this part must 
be used only in connection with compliance and enforcement activities 
pertinent to the nondiscrimination and equal opportunity provisions of 
WIA and this part'' has been deleted from paragraph (b). As with the 
change discussed in Section 37.37(b)(2) earlier in this preamble, this 
change was made to clarify that this Interim Final Rule does not 
prohibit recipients from cooperating with Federal, State, and local 
agencies that, for law enforcement purposes, seek access to the data 
and information collected.
    Paragraph (c) contains the same requirements as the last sentence 
of 29 CFR 34.24(b)(2). Consistent with plain-language guidelines, it 
has been rewritten to clarify those requirements.

Section 37.41  What responsibilities do grant applicants, recipients, 
and the Department have to maintain the confidentiality of the 
information collected?

    This section is identical to 29 CFR 34.24(d), ``Confidentiality,'' 
with the following exceptions:
    (a) language has been inserted to clarify that the identity of 
individuals who file discrimination complaints must be kept 
confidential; and
    (b) the reference to 29 CFR 34.8 has been changed to reflect the 
numbering of this Interim Final Rule.
    Neither of these changes is intended to alter the meaning of this 
section.

Section 37.42  What are a recipient's responsibilities under this part 
to provide universal access to WIA Title I-financially assisted 
programs and activities?

    This section notifies recipients of their obligation to ensure 
universal access for all eligible populations to the aid, benefits, 
services, and/or training that the recipient offers under its WIA Title 
I--financially assisted programs and activities. Recipients should take 
specific actions to reach out to all eligible populations. The rule 
provides a nonexclusive list of possible actions, such as targeted 
advertising, notification of schools or community interest groups, and 
consultation with community service groups, that might be used to 
enhance community awareness of a recipient's programs and activities.

Subpart C--Governor's Responsibilities to Implement the 
Nondiscrimination and Equal Opportunity Requirements of WIA

    The individual sections in this subpart are largely identical to 
their corresponding sections within the same

[[Page 61707]]

subpart in part 34. Consistent with plain-language guidelines, they 
have been rearranged in a more logical order, and one lengthy section 
has been divided into shorter sections treating narrower topics. These 
changes are not intended to alter the overall meaning of this subpart, 
or the meaning of any of its component sections.

Section 37.50  To whom does this subpart apply?

    This section is identical to 29 CFR 34.30, ``Application,'' except 
that the references to sections in part 34 have been changed to reflect 
the numbering of this Interim Final Rule. This change is not intended 
to alter the meaning of this section.

Section 37.51  What are a Governor's oversight responsibilities?

    This section contains the same requirements as 29 CFR 34.32(a). 
References to JTPA have been replaced by references to WIA Title I, and 
the references to sections in part 34 have been changed to reflect the 
numbering of this Interim Final Rule. Neither of these changes is 
intended to alter the meaning of this section. In addition, language 
has been added to clarify that the Governor must negotiate with a 
noncomplying recipient ``where appropriate.''

Section 37.52  To what extent may a Governor be liable for the actions 
of a recipient s/he has financially assisted under WIA Title I?

    This section is identical to 29 CFR 34.32(b) and (c), with the 
following exceptions:
    (1) References to JTPA have been replaced by references to WIA;
    (2) The references to sections in part 34 have been changed to 
reflect the numbering of this Interim Final Rule; and
    (3) To comply with the rules of grammar, the word ``which'' in 
paragraph (a)(2) has been changed to ``that.''
    None of these changes is intended to alter the meaning of this 
section.

Section 37.53  What are a Governor's oversight responsibilities 
regarding recipients' recordkeeping?

    This section is identical to 29 CFR 34.31, except that the 
references to sections in part 34 have been changed to reflect the 
numbering of this Interim Final Rule. These changes are not intended to 
alter the meaning of this section.

Section 37.54  What are a Governor's obligations to develop and 
maintain a Methods of Administration?

    A ``Methods of Administration'' (MOA) is a document that describes 
the actions an individual State will take to ensure that its WIA Title 
I-financially assisted programs, activities, and recipients are 
complying, and will comply, with all requirements imposed by or under 
this part.
    This section contains the same general requirements as 29 CFR 
34.33(a)-(c). References to JTPA have been replaced by references to 
WIA, and the references to sections in part 34 have been changed to 
reflect the numbering of this Interim Final Rule. Also, the list of 
sections referred to in paragraph 37.54(c)(1) has been expanded to 
include a description of each section. In addition, consistent with 
plain-language guidelines, the information in Paragraphs 37.54(c)(1) 
and (c)(2)(vii) has been presented in outline form to improve its 
readability. None of these changes is intended to alter the meaning of 
these paragraphs.
    The reasons for additional changes in the section are described 
below.
    (1) 29 CFR 34.33(b)(2) required that the MOA be ``[u]pdated 
periodically as required by the Director.'' The parallel provision in 
Section 37.54, paragraph (b)(2), requires that the MOA be ``[r]eviewed 
and updated as required in Section 37.55.'' The reasons for this change 
are described below, in the discussion in this preamble about Section 
37.55.
    (2) Paragraph 37.54(c) has been reserved to give the Department the 
opportunity to later amend the regulation to insert a reference to 
guidance that the Director intends to issue regarding the requirements 
for MOAs.
    (2) Paragraph (d)(2)(i) has been added to clarify that the MOA must 
include a system that will permit the Governor to carry out his/her 
responsibility of determining whether a grant applicant seeking WIA 
Title I financial assistance from the State, if funded, or a training 
provider, if selected and/or certified as eligible, is likely to comply 
with its nondiscrimination and equal opportunity obligations under WIA 
and this part. See Section 37.51.
    (3) Paragraph (d)(2)(ii) and its subparagraphs are based on 29 CFR 
34.33(c)(2)(i). Language has been added to clarify that the Governor 
must monitor the compliance of the State's recipients by conducting 
statistical and other quantifiable data analyses of each recipient's 
records and data, and to provide the minimum requirements for such 
monitoring reviews.
    (4) Paragraphs (d)(2)(iii) and (d)(2)(iv) are based on 29 CFR 
34.33(c)(2)(ii). They have been rewritten to reflect the requirements 
CRC actually imposes with regard to the types of documents listed in 
the two paragraphs.
    (5) 29 CFR 34.33(c)(2)(iii) required the MOA to include procedures 
for ensuring that recipients ``provide accessibility to individuals 
with disabilities.'' The corresponding paragraph, paragraph (d)(2)(v), 
has been changed to clarify and emphasize that the MOA must include 
procedures for ensuring that recipients comply with all of the 
requirements of Section 504 and this part with regard to individuals 
with disabilities, not just those requirements regarding accessibility.
    The Department is particularly interested in receiving comments 
regarding this section of the Interim Final Rule.

Section 37.55  When must the Governor carry out his or her obligations 
with regard to the Methods of Administration?

    Paragraph (a) of this section is similar to 29 CFR 34.33(d), except 
that it requires the Governor to develop, implement, and submit its 
first WIA MOA within 180 days of either the date on which this Interim 
Final Rule is effective, or the date on which the Department gives 
final approval to the State's Five-Year Plan, whichever is later. If 
the MOA submitted by the State under JTPA satisfies the requirements 
listed in Section 37.54, the Governor is required only to submit any 
necessary updates and/or to certify that no changes are required, as 
described below.
    The remainder of this section is intended to improve the MOA's 
usefulness as a method for both States and CRC to monitor the 
compliance of States and their recipients; to initially evaluate 
discrimination complaints filed against those States and recipients; 
and to reduce the burden on States and recipients by eliminating 
unnecessary complaint investigations and/or compliance reviews.
    CRC regards the MOA as a baseline instrument for monitoring the 
compliance of States and their recipients. By reviewing a State's MOA, 
CRC is able to conduct an initial evaluation of the overall systems and 
procedures the State has put in place, without the necessity of an 
extensive compliance review. Similarly, if a complaint filed with CRC 
alleges that a State's or recipient's nondiscrimination and/or equal 
opportunity procedures are

[[Page 61708]]

unlawful or unfair, the Director may simply compare the complaint with 
the MOA, to establish whether the procedures described in the complaint 
are the same ones described in the document submitted by the Governor. 
If CRC has already reviewed those procedures and determined them to be 
adequate, the agency may avoid a burdensome and unnecessary complaint 
investigation.
    In order for the MOA to provide an effective method of monitoring 
compliance, however, it is important that CRC have access to current 
information regarding a State's practices. The requirements in 
paragraphs (b) and (c) are intended to provide that current 
information.
    Paragraph (b) requires the Governor to ``promptly update'' the MOA 
``whenever necessary.'' This paragraph means that whenever, in the 
ordinary course of implementing the MOA, the Governor or the State 
decides that an amendment to the MOA is appropriate, the Governor must 
notify CRC of the amendment. The paragraph does not require the 
Governor or the State to provide CRC with an entirely new MOA under 
these circumstances. For example, if a State's MOA lists the members of 
a particular recipient's EO staff, the State is not required to redo 
its entire MOA when there is turnover on the staff. Rather, the 
Governor may notify CRC of the change simply by sending a letter 
listing the names of the departing and incoming staff members, and the 
contact information for the new staffers.
    Paragraph (c) requires that every two years, the Governor must 
review the MOA and the way in which the State has implemented the 
document, and to make any necessary changes. As in paragraph (b), the 
Governor is required to notify CRC about those changes alone; he or she 
must submit an entirely new MOA to CRC only if he or she decides to 
replace the previous MOA completely. If, based on the review, he or she 
determines that no changes are necessary, he or she is required merely 
to certify to CRC in writing that the previous MOA remains in effect. 
If this certification is not required, then each time that the Director 
receives a complaint regarding a particular State, CRC will be forced 
to contact that State to ask whether its MOA has been changed. In CRC's 
view, such repeated inquiries would be more burdensome for States than 
requiring certification every two years.
    The Department is particularly interested in receiving comments 
regarding this section of the Interim Final Rule.

Subpart D--Compliance Procedures

    Generally, this subpart contains the same requirements as the 
corresponding subpart in part 34. The few circumstances in which 
substantive changes have been made are discussed in the descriptions 
below of individual sections.
    Consistent with plain-language guidelines, the information in this 
subpart has been rearranged in a more logical order, and lengthy 
sections have been divided into shorter sections treating narrower 
topics. The subpart now begins with sections describing the Director's 
general authority, and continues with sections describing Compliance 
Reviews, Complaint Investigations, Determinations, and Breaches of 
Conciliation Agreements. The above changes are not intended to alter 
the overall meaning of this subpart, or the meaning of any of its 
component sections.

Section 37.60  How does the Director evaluate compliance with the 
nondiscrimination and equal opportunity provisions of WIA and this 
part?

    In general, this section contains the same requirements as 29 CFR 
34.40(a). Consistent with plain-language guidelines, the section has 
been slightly rewritten and reorganized. Also, references to JTPA have 
been replaced by references to WIA. Neither of these changes is 
intended to alter the meaning of this section.
    The sentence in 29 CFR 34.40(a) that discusses techniques used in 
compliance reviews has been moved to Section 37.63, to clarify that in 
CRC's actual practice, the techniques discussed are used only in post-
approval compliance reviews.
    A sentence has been added to clarify that pre- or post-approval 
compliance reviews may focus on one or more specific programs or 
activities, or one or more issues within a program or activity. The 
Director has the discretion to determine the scope of a particular 
compliance review. This addition is intended only to provide notice to 
grant applicants and recipients that compliance reviews may be narrow 
as well as broad. It does not alter the Director's authority in any 
way, but is intended only to clarify the meaning of this section.
    Because this section now serves as an introduction to Subpart D, a 
sentence has also been added that notes that the Director may also 
investigate and resolve discrimination complaints. Again, this sentence 
does not alter the Director's authority in any way, and is not intended 
to change the meaning of this section.

Section 37.61  Is there authority to issue subpoenas?

    This section contains the same requirements as 29 CFR 34.43(g)(4). 
Consistent with plain-language guidelines, the section has been 
organized slightly differently from the corresponding paragraph in the 
JTPA nondiscrimination regulations, and presented in outline form to 
improve its readability. Also, references to JTPA have been replaced by 
references to WIA.
    The section was moved to the beginning of this subpart in order to 
clarify that the authority to issue subpoenas extends to compliance 
reviews as well as complaint investigations. Again, this change does 
not alter the subpoena authority in any way, and is not intended to 
change the meaning of this section.

Compliance Reviews

Section 37.62  What are the authority and procedures for conducting 
pre-approval compliance reviews?

    This section contains the same requirements as 29 CFR 34.40(b), 
``Pre-approval reviews,'' with additional material from 29 CFR 34.47. 
Differences between this section and the corresponding paragraphs and 
section of the JTPA nondiscrimination regulations are described below.
    Paragraph 37.62(a): This paragraph describes the circumstances 
under which, and the bases upon which, the Director may conduct a pre-
approval compliance review. The paragraph is identical to 29 CFR 
34.40(b)(1), with the following exceptions:
    (1) References to JTPA have been replaced by references to WIA; and
    (2) The references to sections in part 34 have been changed to 
reflect the numbering of this Interim Final Rule.
    Neither of these changes is intended to alter the meaning of this 
paragraph.
    Paragraph 37.62(b): This paragraph outlines the Director's 
responsibilities when s/he determines that a grant applicant might not 
comply with the nondiscrimination and equal opportunity provisions of 
WIA and this part. Generally, this paragraph contains the same 
requirements as 29 CFR 34.40(b)(2) and (4); it also incorporates 
material from 29 CFR 34.47, which requires the Director to notify the 
Assistant Attorney General, as well as the grantmaking agency, where a 
complaint investigation or compliance review results in a finding of 
noncompliance. The latter requirement

[[Page 61709]]

is also contained within the Department of Justice's Title VI 
coordination regulations at 28 CFR 42.407(d).
    Consistent with plain-language guidelines, this paragraph has been 
organized slightly differently from the corresponding paragraphs in the 
JTPA nondiscrimination regulations, and has been presented in outline 
form to improve its readability. Because the JTPA nondiscrimination 
regulations listed these same responsibilities, their inclusion in this 
paragraph does not alter the Director's authority in any way, and is 
not intended to change the meaning of this paragraph.
    In addition, references to JTPA have been replaced by references to 
WIA, and the references to sections in part 34 have been changed to 
reflect the numbering of this Interim Final Rule. Neither of these 
changes is intended to alter the meaning of this paragraph.
    Paragraph 37.62(c): This paragraph describes the Department's 
responsibilities where a grant applicant agrees to take remedial or 
corrective actions in order to receive WIA Title I financial 
assistance. The paragraph is identical to 29 CFR 34.40(b)(3), with the 
following exceptions:
    (1) References to JTPA have been replaced by references to WIA; and
    (2) The references to sections in part 34 have been changed to 
reflect the numbering of this Interim Final Rule.
    Neither of these changes is intended to alter the meaning of this 
paragraph.

Section 37.63  What are the authority and procedures for conducting 
post-approval compliance reviews?

    Generally, this section contains the same requirements as 29 CFR 
34.40(c), ``Post-approval reviews,'' with one paragraph from 34.40(a). 
Differences between this section and the corresponding paragraphs of 
the JTPA nondiscrimination regulations are described below.
    Paragraph 37.63(a): This paragraph outlines the circumstances under 
which, and the bases upon which, the Director may conduct a post-
approval compliance review. The paragraph contains the same 
requirements as 29 CFR 34.40(c)(1). Consistent with plain-language 
guidelines, the list of examples of possible bases for such reviews has 
been slightly rewritten to clarify the examples. In addition, 
references to JTPA have been replaced by references to WIA. These 
changes are not intended to alter the meaning of the paragraph.
    Paragraph 37.63(b): This paragraph outlines the procedures for 
initiating a post-approval compliance review. The paragraph contains 
the same information as 29 CFR 34.40(c)(2), and it incorporates related 
material from 29 CFR 34.40(c)(4).
    References to ``data'' that a recipient must submit before a post-
approval compliance review have been changed to ``information, records, 
and/or data.'' Like other changes described earlier in this Preamble, 
this change was made to reflect the growth in computer technology, and 
the related expansion of electronic communications; the change was 
intended to incorporate a variety of terms that might be used to refer 
to material stored in written, electronic, or other forms. Again, this 
change does not impose any additional obligations upon recipients; it 
was made merely to clarify the paragraph.
    In addition, the references to sections in part 34 have been 
changed to reflect the numbering of this Interim Final Rule. These 
changes are not intended to alter the meaning of the paragraph.
    Paragraph 37.63(c): This paragraph contains material from 29 CFR 
34.40(a) about techniques used in compliance reviews. As discussed in 
Section 37.60 of this preamble, the sentence was moved to this section 
to clarify that in CRC's actual practice, the techniques discussed are 
used only in post-approval compliance reviews. The reference to off-
site analyses has been deleted because it refers to internal agency 
procedure that is more appropriately treated in internal agency 
guidelines.

Section 37.64  What procedures must the Director follow when CRC has 
completed a post-approval compliance review?

    Generally, this section contains the same requirements as 29 CFR 
34.40(c)(3). However, the requirement that the Director inform the 
recipient of the results of the review within 210 days of the issuance 
of the Notification Letter has been deleted. This change was made 
because CRC has decided to establish such internal agency time frames 
in internal agency guidelines issued by the Director, rather than 
through rulemaking.
    In addition, consistent with plain-language guidelines, the section 
has been slightly rewritten to clarify it. Also, the references to 
sections in part 34 have been changed to reflect the numbering of this 
Interim Final Rule. These changes are not intended to alter the meaning 
of the paragraph.

Section 37.65  What is the Director's authority to monitor the 
activities of a Governor?

    This section is identical to 29 CFR 34.34(a) and (b), with the 
following exceptions:
    (1) References to JTPA have been replaced by references to WIA; and
    (2) The references to sections in part 34 have been changed to 
reflect the numbering of this Interim Final Rule.
    Neither of these changes is intended to alter the meaning of this 
section.
    The corresponding paragraphs in the JTPA nondiscrimination 
regulations were located in Subpart C (``Governor's 
Responsibilities''). The section was moved to Subpart D and included 
with procedures about compliance reviews because it deals with the 
Director's authority to review documents prepared by and actions taken 
by a Governor under this part. This change was not intended to alter 
the meaning of the section.
    Paragraph (c) of Section 34.34 provided that ``[t]he procedures 
contained in [S]ubpart D'' would apply to the Director's monitoring 
activities. Because the section has been moved to Subpart D, this 
paragraph has become redundant, and has been deleted.

Section 37.66  What happens if a recipient fails to submit requested 
data, records, and/or information, or fails to provide CRC with the 
required access?

    This section contains the same general requirements as 29 CFR 
34.41(a). The reference to the ``Directorate'' (the Directorate of 
Civil Rights, the previous title of the Civil Rights Center) has been 
updated to ``CRC.'' Also, to help readers find the section of the 
Interim Final Rule that requires a recipient to provide CRC with access 
to sources of information, a reference to that section has been added. 
Neither of these changes is intended to alter the meaning of this 
section.
    In addition, language has been added that specifies that recipients 
must submit or provide CRC with access to data, records, and/or 
information ``in a timely manner.'' This addition was made to clarify 
that the Director may issue a Notice to Show Cause based upon a 
recipient's delay in supplying the records, data, information, and/or 
access sought by CRC.

Section 37.67  What information must a Notice to Show Cause contain?

    This section is identical to 29 CFR 34.41(b), and includes the 
first sentence of 34.41(c). References to JTPA have been replaced by 
references to WIA. These changes are not intended to change the meaning 
of this section.

[[Page 61710]]

Section 37.68  How may a recipient show cause why enforcement 
proceedings should not be instituted?

    This section is identical to the remainder of 29 CFR 34.41(c), with 
the following exceptions:
    (1) The references to sections in part 34 have been changed to 
reflect the numbering of this Interim Final Rule; and
    (2) References to the ``Directorate'' have been updated to ``CRC.''
    Neither of these changes is intended to alter the meaning of this 
section.

Section 37.69  What happens if a recipient fails to show cause?

    This section is identical to 29 CFR 34.41(d), except that the 
reference to a section in part 34 has been changed to reflect the 
numbering of this Interim Final Rule. This change is not intended to 
alter the meaning of this section.

Complaint Processing Procedures

Section 37.70  Who may file a complaint concerning discrimination 
connected with WIA Title I?

    This section contains the same requirements as 29 CFR 34.43(a). 
Consistent with plain-language guidelines, the section has been 
slightly rewritten to improve its readability. This change is not 
intended to alter the meaning of this section.

Section 37.71  Where may a complaint be filed?

    This section contains the same requirements as 29 CFR 34.43(b). 
Consistent with plain-language guidelines, the section has been 
slightly rewritten to improve its clarity. This change is not intended 
to alter the meaning of this section.

Section 37.72  When must a complaint be filed?

    This section contains the same requirements as 29 CFR 34.43(c). 
Consistent with plain-language guidelines, the section has been 
slightly rewritten to improve its clarity. This change is not intended 
to alter the meaning of this section.

Section 37.73  What information must a complaint contain?

    This section contains the same requirements as 29 CFR 34.43(d), 
except that, for the ease of the reader, the information in the second 
sentence of Section 34.43(d)(4)(iii) has been placed in the next 
section. Consistent with plain-language guidelines, the section has 
been slightly rewritten to improve its clarity. This change is not 
intended to alter the meaning of this section.

Section 37.74  Are there any forms that a complainant may use to file a 
complaint?

    This section contains the same requirements as the second sentence 
of Section 34.43(d)(4)(iii). Consistent with plain-language guidelines, 
the section has been slightly rewritten to improve its clarity. In 
addition, for the convenience of the reader, the section now explains 
where complainants or their representatives may obtain the forms.

Section 37.75  Is there a right of representation in the complaint 
process?

    This section contains the same requirements as 29 CFR 34.43(e). 
Consistent with plain-language guidelines, the section has been 
slightly rewritten to improve its clarity. This change is not intended 
to alter the meaning of this section.

Section 37.76  What are the required elements of a recipient's 
discrimination complaint processing procedures?

    Much of this section is new. It includes most of the general 
information contained in 29 CFR 34.42(a), which requires a recipient to 
adopt and publish procedures for processing discrimination complaints, 
and 34.42(c), which requires the recipient to provide the complainant 
with written notice of the resolution of the complaint. (As discussed 
earlier in this preamble, the material in 29 CFR 34.42(b), which 
charges a recipient's Equal Opportunity Officer with the responsibility 
for adopting and publishing these procedures, has been moved to Section 
37.25(d), ``What are the responsibilities of an Equal Opportunity 
Officer?'' In addition, the information in the third sentence of 
Section 34.42(a) has been moved to the next section.) However, this 
section includes the following changes.
    (1) The period for recipients to process discrimination complaints 
has been extended, from 60 to 90 days. See Paragraphs 37.76(a) and 
37.76(b)(5). This change has been made in response to concerns raised 
by recipients that 60 days was not enough time in which to give a 
complaint appropriate attention.
    (2) A list of specific elements that must be included in each 
recipient's complaint processing procedures has been added. See 
Paragraphs 37.76(b) and (c). This change has been made because a number 
of recipients have requested more extensive guidance about the steps 
that must be taken in order to process a complaint fairly and 
effectively. As this section notes, the list is intended only as a 
baseline; recipients may include additional elements in their complaint 
processing procedures, as long as the procedures allow for resolution 
of the complaint within 90 days.
    (3) The section requires recipients to adopt procedures for 
alternative dispute resolution (ADR). See Paragraph 37.76(c). This 
requirement was added in response to input from complainants and 
recipients who wanted a more flexible, less adversarial means of 
resolving discrimination complaints. (CRC itself is adopting procedures 
that will allow complainants and respondents to mediate complaints 
filed with the Director. See the discussion of Section 37.89, later in 
this preamble.) The section also includes procedures through which any 
party to an agreement reached under ADR may complain to the Director if 
the agreement is breached. See Paragraph 37.76(c)(2). CRC believes that 
complainants and recipients will be more willing to resolve complaints 
through ADR if the parties know that they have a means of enforcing the 
agreements reached through that procedure. However, in the event that 
the ADR process does not resolve a complaint, the section provides that 
a complainant may file a complaint with the Director within 30 days of 
the date on which the ADR process terminates. CRC is particularly 
interested in receiving comments about this new requirement.
    (4) The section has given a formal name, ``Notice of Final 
Action,'' to the written notification that a recipient must give a 
complainant when the recipient has finished processing a complaint. 
Because 29 CFR 34.42(c) already required such a written notification, 
this change is not a substantive change in the section.

Section 37.77  Who is responsible for developing and publishing 
complaint processing procedures for service providers?

    Generally, this section contains the same requirements as the third 
sentence of 29 CFR 34.42(a). Consistent with plain-language guidelines, 
the section has been slightly rewritten to improve its clarity. Also, 
JTPA-related terminology (the references to SDA grant recipients and 
Substate grantees) has been replaced by WIA-related terminology (the 
reference to the LWIA grant recipient). Neither of these changes is 
intended to alter the meaning of this section.
    The final sentence has been added to the section to clarify that 
service providers are obliged to follow the

[[Page 61711]]

procedures adopted and published on their behalf.

Section 37.78  Does a recipient have any special obligations in cases 
in which the recipient determines that it has no jurisdiction over a 
complaint?

    This section contains the same requirements as 29 CFR 34.43(f)(5). 
Consistent with plain-language guidelines, the section has been 
slightly rewritten and presented in outline form to improve its 
readability. Also, references to JTPA have been replaced by references 
to WIA. Neither of these changes is intended to alter the meaning of 
this section.

Section 37.79  If, before the 90-day period has expired, a recipient 
issues a Notice of Final Action with which the complainant is 
dissatisfied, how long does the complainant have to file a complaint 
with the Director?

    This section contains the same general information as 29 CFR 
34.43(f)(1). Consistent with plain-language guidelines, the section has 
been slightly rewritten to improve its clarity. Also, references to the 
60-day period allowed for processing complaints under the JTPA 
nondiscrimination regulations have been replaced by references to the 
newly-extended 90-day period allowed under WIA, and the new term 
``Notice of Final Action'' has been used to refer to the written 
notification that a recipient must provide a complainant when the 
recipient has completed its processing of a complaint.

Section 37.80  What happens if a recipient fails to issue a Notice of 
Final Action within 90 days of the date on which a complaint was filed?

    This section contains the same general information as 29 CFR 
34.43(f)(3). Consistent with plain-language guidelines, the section has 
been slightly rewritten to improve its clarity. Also, references to the 
60-day period allowed for processing complaints under the JTPA 
nondiscrimination regulations have been replaced by references to the 
newly-extended 90-day period allowed under WIA, and the new term 
``Notice of Final Action'' has been used to refer to the written 
notification that a recipient must provide a complainant when the 
recipient has completed its processing of a complaint.
    This section deals only with a complainant's rights if a recipient 
fails to issue a Notice of Final Action within the required period. 
Recipients should be aware that in such circumstances, the Director has 
the right to take appropriate action against the recipient.

Section 37.81  Are there any circumstances under which the Director may 
extend the time limit for filing a complaint with him or her?

    This section contains the same requirements as 29 CFR 34.43(f)(4). 
Consistent with plain-language guidelines, the section has been 
slightly rewritten and presented in outline form to improve its 
readability. Also, the reference to a section in part 34 has been 
changed to reflect the numbering of this Interim Final Rule, and a 
final sentence has been added to clarify and emphasize that the burden 
of showing good cause for extending the time limit rests with the 
complainant.

Section 37.82  Does the Director accept every complaint for resolution?

    This section consolidates information contained in 29 CFR 
34.43(g)(1), (g)(5), and (g)(6). Consistent with plain-language 
guidelines, the material has been slightly rewritten and presented in 
outline form to improve its readability. Also, the information in 
Paragraph 37.82(c), explaining that CRC need not investigate a 
complaint about a matter that it has already decided, has been added. A 
``complaint about a matter that it has already decided'' is a complaint 
about the same set of facts that CRC has already considered and decided 
in a previous case. This addition does not change CRC's authority in 
any way; it is intended only to notify complainants and respondents 
about CRC's practices. None of these changes is intended to alter the 
meaning of this section.

Section 37.83  What happens if a complaint does not contain enough 
information?

    Generally, this section contains the same requirements as 29 CFR 
34.43(g)(3). Consistent with plain-language guidelines, the material 
has been slightly rewritten and presented in outline form to improve 
its readability. Also, the provision requiring that a complainant must 
submit the requested additional information within 15 days has been 
eliminated. This change has been made in order to provide the Director 
with the flexibility to require a longer or shorter response period, if 
appropriate in a particular case.

Section 37.84  What happens if CRC does not have jurisdiction over a 
complaint?

    This section contains the same general information as 29 CFR 
34.43(g)(5). Consistent with plain-language guidelines, the section has 
been slightly rewritten to improve its clarity. Also, the reference to 
the ``Directorate'' has been updated to ``CRC.'' Neither of these 
changes is intended to alter the meaning of this section.

Section 37.85  Are there any other circumstances in which the Director 
will send a complaint to another authority?

    Generally, this section contains the same requirements as 29 CFR 
34.43(g)(7) and (8), with additional material necessitated by the 
requirements of the WIA program. Differences between this section and 
the corresponding paragraphs of the JTPA nondiscrimination regulations 
are set forth below.
    Paragraph 37.85(a): This paragraph generally contains the same 
requirements as 29 CFR 34.43(g)(7), except that the requirement that 
the Director advise the complainant and the respondent about the 
referral has been moved to paragraph (d). In addition, consistent with 
plain-language guidelines, the material has been slightly rewritten. 
Neither of these changes is intended to alter the meaning of this 
paragraph.
    Paragraph 37.85(b): This paragraph generally contains the same 
requirements as 29 CFR 34.43(g)(8), except that the requirement that 
the Director advise the complainant and the respondent about the 
referral has been moved to paragraph (d). In addition, consistent with 
plain-language guidelines, the material has been slightly rewritten and 
presented in outline form to improve its readability. Also, the 
reference to JTPA has been replaced by a reference to WIA. None of 
these changes is intended to alter the meaning of this paragraph.
    Paragraph 37.85(c): The material in this paragraph is new. Under 
the One-Stop system established by WIA, CRC may have dual jurisdiction, 
with Federal grantmaking agencies other than the Department of Labor, 
over complaints that allege discrimination by One-Stop partners 
financially assisted by those other grantmaking agencies. This 
paragraph sets forth the general procedures that will be used to 
determine whether CRC will retain such complaints for processing or 
refer them to the other grantmaking agencies for appropriate action in 
accordance with the Federal grantmaking agency's applicable 
regulations. CRC will enter into Memoranda of Understanding (MOUs) with 
the appropriate Federal grantmaking agencies to ensure that complaints 
will be referred in accordance with these guidelines. These MOUs, which 
will contain more specific

[[Page 61712]]

referral procedures, will be published in the Federal Register. In 
addition, the Department encourages local Workforce Investment Boards, 
in developing the MOUs required by Section 121(c) of WIA, to include in 
those MOUs provisions regarding the appropriate referral of any such 
complaints filed at the local level.
    Paragraph 37.85(d): The material in this paragraph comes from both 
29 CFR 34.43(g)(7) and (8), as noted above. It has been placed in a 
separate paragraph to improve the readability of this section.

Section 37.86  What must the Director do if he or she determines that a 
complaint will not be accepted?

    Generally, this section contains the same requirements as 29 CFR 
34.43(g)(6). Consistent with plain-language guidelines, the material 
has been slightly rewritten to improve its clarity. In addition, the 
wording referring to circumstances in which a complaint ``will not be 
investigated'' has been changed to ``will not be accepted.'' This 
change has been made to reflect the addition of the mediation option to 
CRC's complaint processing procedures: where a complainant and 
respondent agree to mediate the complaint, CRC will conduct an 
investigation only if the mediation fails, or if one of the parties 
breaches the agreement reached through the mediation. See Section 
37.89.

Section 37.87  What must the Director do if he or she determines that a 
complaint will be accepted?

    Generally, this section contains the same requirements as 29 CFR 
34.43(g)(1)(i) and (ii). Consistent with plain-language guidelines, the 
material has been slightly rewritten to improve its clarity. In 
addition, the following changes have been made:
    (1) The reference to the ``Directorate'' has been changed to the 
``Director,'' because it is he or she who has the authority to 
determine whether a complaint will be accepted.
    (2) The Director is now required to notify the grantmaking agency, 
as well as the complainant and the respondent, when a complaint is 
accepted. This requirement has been added because CRC's experience has 
shown that when grantmaking agencies are aware of discrimination 
complaints, those complaints are more likely to be resolved 
successfully, and recipients are more likely to comply with their 
obligations regarding nondiscrimination and equal opportunity.
    (3) The Director is also required to provide notice about any 
issues over which he or she has not accepted jurisdiction, and the 
reasons why those issues have been rejected. This requirement has been 
added in order to provide complainants and respondents with reasonable 
notice of the Director's determinations about the entire complaint.

Section 37.88  Who may contact CRC for information about a complaint?

    Generally, this section contains the same requirements as 29 CFR 
34.43(g)(2). Consistent with plain-language guidelines, the material 
has been slightly rewritten to improve its clarity. Also, a second 
sentence has been added in order to clarify that the Director has the 
authority to determine what information about a complaint should be 
released.

Section 37.89  May the Director offer the parties to a complaint the 
option of mediation?

    This section is new. Like the provisions allowing recipients to 
include provisions for ADR in their complaint processing procedures, 
this option was added in response to concerns of complainants and 
recipients who wanted a more flexible, less adversarial means of 
resolving discrimination complaints. CRC is particularly interested in 
receiving comments concerning this section.

Determinations

Section 37.90  If a complaint is investigated, what must the Director 
do when the investigation is completed?

    This section contains information from 29 CFR 34.43(g)(9), (9)(i), 
and (9)(ii). Consistent with plain-language guidelines, the material 
has been rewritten and reorganized slightly, and presented in outline 
form to improve its readability. Also, the Director is now required to 
notify the grantmaking agency about his or her determination whether 
the respondent has violated the nondiscrimination and equal opportunity 
provisions. This requirement was added for the reasons listed in the 
discussion of Section 37.87.

Section 37.91  What notice must the Director issue if he or she finds 
reasonable cause to believe that a violation has taken place?

    This section contains information from 29 CFR 34.43(g)(9)(i). 
Consistent with plain-language guidelines, the material has been 
rewritten and reorganized slightly to improve its clarity. Also, 
references to sections in part 34 have been changed to reflect the 
numbering of this Interim Final Rule. None of these changes is intended 
to alter the meaning of this section.

Section 37.92  What notice must the Director issue if he or she finds 
no reasonable cause to believe that a violation has taken place?

    This section contains information from 29 CFR 34.43(g)(9)(ii). 
Consistent with plain-language guidelines, the material has been 
slightly rewritten to improve its clarity. These changes are not 
intended to alter the meaning of the section.

Section 37.93  What happens if the Director finds that a violation has 
taken place, and the recipient fails or refuses to take the corrective 
action listed in the Initial Determination?

    This section contains information from 29 CFR 34.46(a)(1). 
Consistent with plain-language guidelines, the material has been 
slightly rewritten to improve its clarity. These changes are not 
intended to alter the meaning of the section.

Section 37.94  What corrective or remedial actions may be imposed 
where, after a compliance review or complaint investigation, the 
Director finds a violation of the nondiscrimination and equal 
opportunity provisions of WIA or this part?

    This section contains the same requirements as 29 CFR 34.44. The 
material has been slightly rewritten to improve its clarity. Also, the 
references to other regulatory sections within part 34 have been 
changed to reflect the numbering of this Interim Final Rule, and 
references to JTPA have been changed to refer to WIA. None of these 
changes is intended to alter the meaning of the section.

Section 37.95  What procedures apply if the Director finds that a 
recipient has violated the nondiscrimination and equal opportunity 
provisions of WIA or this part?

    This section contains the same requirements as 29 CFR 34.45 (a) and 
(b). Consistent with plain-language guidelines, the material has been 
rewritten and reorganized slightly to improve its clarity. Some of the 
material has been presented in outline form. Also, the references to 
other regulatory sections within part 34 have been changed to reflect 
the numbering of this Interim Final Rule, and references to JTPA have 
been changed to refer to WIA. None of these changes is intended to 
alter the meaning of the section.
    The section makes reference to a written Conciliation Agreement. 
CRC, not the recipient or the Governor, prepares the initial draft of 
this

[[Page 61713]]

document. See also the discussion in this preamble about Section 37.97.

Section 37.96  What are the required elements of a written assurance?

    This section contains the same requirements as 29 CFR 34.45(c)(1). 
Consistent with plain-language guidelines, the material has been 
slightly rewritten to improve its clarity. These changes are not 
intended to alter the meaning of the section.

Section 37.97  What are the required elements of a Conciliation 
Agreement?

    Generally, this section contains the same requirements as 29 CFR 
34.45(c)(2). Consistent with plain-language guidelines, the material 
has been slightly rewritten to improve its clarity. These changes are 
not intended to alter the meaning of the section.
    As noted above in the discussion of Section 37.95, CRC, not the 
recipient or the Governor, prepares the initial draft of the 
Conciliation Agreement.

Section 37.98  When will the Director conclude that compliance cannot 
be secured by voluntary means?

    This section contains the same requirements as 29 CFR 34.46(a). 
Consistent with plain-language guidelines, the material has been 
slightly rewritten to improve its clarity. Also, the references to 
other regulatory sections within part 34 have been changed to reflect 
the numbering of this Interim Final Rule. These changes are not 
intended to alter the meaning of the section.

Section 37.99  If the Director concludes that compliance cannot be 
secured by voluntary means, what actions must he or she take?

    This section includes information from 29 CFR 34.46(b) (1), (2), 
and (3). The subparagraphs from Paragraph 34.46(b)(1) that describe the 
required elements of a Final Determination have been moved to the next 
section. Also, the material in this section has been slightly rewritten 
to improve its clarity. Neither of these changes is intended to alter 
the meaning of this section.

Section 37.100  What information must a Final Determination contain?

    This section contains the same requirements as 29 CFR 34.46(a) and 
(b). Consistent with plain-language guidelines, the material has been 
rewritten and reorganized slightly to improve its clarity, and the 
references to other regulatory sections within part 34 have been 
changed to reflect the numbering of this Interim Final Rule. In 
addition, in Paragraph 37.100(f)(1), language has been added to clarify 
that the Department may withhold a grant applicant's or recipient's WIA 
Title I-funded Federal financial assistance in whole or in part. This 
change does not expand the Department's authority; it has been added 
solely to provide recipients with notice of the Department's actual 
practice.

Section 37.101  Whom must the Director notify of a finding of 
noncompliance?

    Generally, this section contains the same requirements as 29 CFR 
34.47. Consistent with plain-language guidelines, the material has been 
slightly rewritten to improve its clarity. In addition, language has 
been added to clarify that the Director will notify the grant applicant 
or recipient, as well as the grantmaking agency and the Assistant 
Attorney General. This change has been made to reflect the Director's 
actual practice and the requirements of the preceding sections.

Breaches of Conciliation Agreements

Section 37.102  What happens if a grant applicant or recipient breaches 
a Conciliation Agreement?

    This section contains the same requirements as 29 CFR 34.48(b). The 
phrase ``through the Governor or by other means'' has been eliminated 
as redundant. This change is not intended to alter the meaning of this 
section.

Section 37.103  Whom must the Director notify about a breach of a 
Conciliation Agreement?

    This section contains the same requirements as 29 CFR 34.48(c). 
Consistent with plain-language guidelines, the material has been 
slightly rewritten to improve its clarity. In addition, the Director is 
now required to notify the grantmaking agency, for the reasons listed 
in the discussion of Section 37.87.

Section 37.104  What information must a Notification of Breach of 
Conciliation Agreement contain?

    This section contains the same requirements as 29 CFR 34.48(d). 
Consistent with plain-language guidelines, the material has been 
slightly rewritten to improve its clarity. In addition, the references 
to other regulatory sections within part 34 have been changed to 
reflect the numbering of this Interim Final Rule. None of these changes 
is intended to alter the meaning of the section.

Section 37.105  Whom must the Director notify if enforcement action 
under a Notification of Breach of Conciliation Agreement is commenced?

    This section contains the same requirements as 29 CFR 34.48(e). 
Consistent with plain-language guidelines, the material has been 
slightly rewritten and presented in outline form to improve its 
readability. These changes are not intended to alter the meaning of the 
section.

Subpart E--Federal Procedures For Effecting Compliance

Section 37.110  What enforcement procedures does the Department follow 
to effect compliance with the nondiscrimination and equal opportunity 
provisions of WIA and this part?

    This section contains the same requirements as 29 CFR 34.50. 
Consistent with plain-language guidelines, the material has been 
slightly rewritten to improve its clarity. Also, references to JTPA 
have been changed to refer to WIA, and references to other regulatory 
sections within part 34 have been changed to reflect the numbering of 
this Interim Final Rule. None of these changes is intended to alter the 
meaning of the section.

Section 37.111  What hearing procedures does the Department follow?

    This section contains the same requirements as 29 CFR 34.51. 
Consistent with plain-language guidelines, the material has been 
slightly rewritten to improve its clarity. Also, references to another 
regulatory section within part 34 have been changed to reflect the 
numbering of this Interim Final Rule, and the current address of the 
Office of Administrative Law Judges has been provided for the 
convenience of the reader. None of these changes is intended to alter 
the meaning of the section.

Section 37.112  What procedures for initial and final decisions does 
the Department follow?

    This section contains the same requirements as 29 CFR 34.52(a) and 
(b). Consistent with plain-language guidelines, the material has been 
slightly rewritten to improve its clarity. Also, references to JTPA 
have been changed to refer to WIA, and references to other regulatory 
sections within part 34 have been changed to reflect the numbering of 
this Interim Final Rule. None of these changes is intended to alter the 
meaning of the section.

[[Page 61714]]

Section 37.113  What procedure does the Department follow to suspend, 
terminate, withhold, deny or discontinue WIA Title I financial 
assistance?

    Generally, this section contains the same requirements as 29 CFR 
34.53(a). Consistent with plain-language guidelines, the material has 
been slightly re-punctuated to improve its clarity. Also, references to 
JTPA have been changed to refer to WIA, and references to other 
regulatory sections within part 34 have been changed to reflect the 
numbering of this Interim Final Rule. None of these changes is intended 
to alter the meaning of the section.
    In addition, language has been added to the section to clarify that 
the Department may withhold a grant applicant's or recipient's WIA 
Title I financial assistance in whole or in part, as explained in the 
discussion of Section 37.100.

Section 37.114  What procedure does the Department follow to distribute 
WIA Title I financial assistance to an alternate recipient?

    This section is identical to 29 CFR 34.53(b), except that the 
reference to JTPA has been changed to refer to WIA. This change is not 
intended to alter the meaning of the section.

Section 37.115  What procedures does the Department follow for post-
termination proceedings?

    This section contains the same general requirements as 29 CFR 
34.52(c). Consistent with plain-language guidelines, the material has 
been slightly rewritten to improve its clarity. Also, references to 
JTPA have been changed to refer to WIA, and references to other 
regulatory sections within part 34 have been changed to reflect the 
numbering of this Interim Final Rule. None of these changes is intended 
to alter the meaning of the section.
    In addition, the sentence providing that ``[r]estoration to 
eligibility may be conditioned upon the grant applicant or recipient 
entering into a consent decree'' has been deleted, in order to clarify 
that the grant applicant or recipient must actually bring itself into 
compliance with the nondiscrimination and equal opportunity provisions 
of Section 188 and this part before being restored to eligibility for 
WIA Title I financial assistance.

IV. Regulatory Procedures

Executive Order 12866

    The Department of Labor has determined that this Interim Final Rule 
is not a ``significant regulatory action'' under Executive Order 12866 
because this action will not: (1) Have an annual effect on the economy 
of $100 million or more, or adversely affect in a material way the 
economy, a sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
governments or communities; (2) Create a serious inconsistency, or 
otherwise interfere, with an action taken or planned by another agency; 
(3) Materially alter the budgetary impact of entitlements, grants, user 
fees, or loan programs, or the rights and obligations of recipients 
thereof; or (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
Executive Order 12866. Therefore, no regulatory impact analysis has 
been prepared.

Regulatory Flexibility Act

    This Interim Final Rule does not substantially change the existing 
obligation of recipients or entities operating Federally-assisted 
programs or activities to apply a policy of nondiscrimination and equal 
opportunity in employment or services. The Department of Labor 
certifies that the proposed rule will not have a significant economic 
impact on substantial number of small business entities. Therefore, a 
regulatory flexibility analysis is not required.

Unfunded Mandates Reform

    Executive Order 12875--This rule will not create an unfunded 
Federal Mandate upon any State, local, or tribal government.
    Unfunded Mandate Reform Act of 1995--This rule will not include any 
Federal mandate that may result in increased expenditures by State, 
local and tribal governments in the aggregate of $100 million or more, 
or increased expenditures by the private sector of $100 million or 
more.

Paperwork Reduction Act

    Certain sections of this Interim Final Rule, including Secs. 37.8, 
37.9, 37.20, 37.29, 37.30, 37.31, 37.34, 37.37, 37.38, 37.39, 37.54, 
37.73, and 37.74, contain information collection requirements. As 
required by the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)), 
the Department of Labor has submitted a copy of these sections to the 
Office of Management and Budget (OMB) for its review. Comments must be 
submitted by December 13, 1999 to: Desk Officer for the Department of 
Labor, Civil Rights Center, Office of Management and Budget, 725 17th 
Street, NW (Rm 10235), Washington, DC 20503. Affected parties do not 
have to comply with the information collection requirements in this 
document until DOL publishes in the Federal Register the control 
numbers assigned by OMB. Publication of the control numbers notifies 
the public that OMB has approved this information collection 
requirement under the Paperwork Reduction Act of 1995.

Request for Comments

    This publication implements the nondiscrimination and equal 
opportunity provisions of Section 188 of WIA, and requests comments 
about this Interim Final Rule from State and local governments; public 
interest groups; current and potential grant applicants for and 
recipients of Federal financial assistance (particularly current and 
potential providers of training services); current and potential 
beneficiaries of such Federal financial assistance; other Federal 
agencies; and the public.

Clarity Of This Regulation

    Executive Order 12866 and the President's memorandum of June 1, 
1998, require each agency to write all rules in plain language. The 
Department invites comments on how to make this proposed rule easier to 
understand. For example:

--Have we organized the material to suit your needs?
--Are the requirements in the rule clearly stated?
--Does the rule contain technical language or jargon that isn't clear?
--Would a different format (grouping and order of sections, use of 
headings, paragraphing) make the rule easier to understand?
--Would more (but shorter) sections be better?
--Could we improve clarity by adding tables, lists, or diagrams?
--What else could we do to make the rule easier to understand?

Absence of Notice of Proposed Rulemaking

    After full and fair consideration over the months since passage of 
the Workforce Investment Act of 1998, the Department of Labor has 
determined that it is in the public interest not to publish a Notice of 
Proposed Rulemaking (NPRM) regarding implementation of Section 188 of 
the Act, but instead to publish this Interim Final Rule. This 
determination is based upon the schedule for implementation of WIA.
    The WIA program is designed eventually to supersede its predecessor 
program, the Job Training Partnership Act (JTPA) program, which sunsets 
on

[[Page 61715]]

July 1, 2000. The regulations implementing JTPA therefore will remain 
in effect until that date. However, States have the option of 
implementing WIA Title I-financially assisted programs and activities 
as early as July 1, 1999; indeed, the Department is encouraging such 
early implementation.
    CRC is issuing the regulations implementing WIA's nondiscrimination 
and equal opportunity provisions as an Interim Final Rule so that those 
regulations will be in place as soon as possible for early-
implementation States and their recipients. Generally, the Rule tracks 
the nondiscrimination and equal opportunity regulations in place under 
JTPA; the Rule does, however, contain a number of new or revised 
provisions that will require these States and their recipients to take 
action before the date on which they implement WIA, or as soon after 
that date as possible.
    For example, each application for financial assistance under either 
JTPA or WIA Title I must contain assurances regarding the grant 
applicant's compliance with various Federal laws and regulations 
concerning nondiscrimination and equal opportunity. For the WIA 
program, the required assurance has been rewritten in plain language. 
The new language appears in Section 37.20 of the Interim Final Rule. 
Publication of the regulations as an immediately-effective Interim 
Final Rule will eliminate any possible ambiguity regarding the language 
that grant applicants in early-implementation states must include in 
their applications for WIA Title I financial assistance.
    Similarly, Section 37.76 of the Rule contains a list of elements 
that a recipient's discrimination complaint processing procedures must 
include. Although the JTPA nondiscrimination regulations contained a 
general requirement that recipients adopt and publish complaint 
processing procedures, the new list of requisite elements for those 
procedures is more detailed, and recipients in early-implementing 
states will need to know as soon as possible the actual requirements 
for those procedures in order to ensure that their complaint processing 
procedures comply with the requirements of the WIA program. Publishing 
an Interim Final Rule, rather than an NPRM, will assist States and 
recipients by providing a firm list of requirements that will be in 
place on or soon after the date of implementation, rather than a 
proposed list that might change before that date.
    Furthermore, the Interim Final Rule sets a comment period to elicit 
any concerns raised by the rule. The comment period takes place before 
the final rule will be implemented, so that CRC may receive comments in 
time to consider them in preparing the final rule for publication.
    For the above-listed reasons, the Department of Labor finds that 
publishing an NPRM, and providing a period for notice and comment, 
before implementing this Interim Final Rule would be contrary to the 
public interest, and therefore constitute good cause under 5 U.S.C. 
553(b)(B) for publishing these regulations as an Interim Final Rule. 
Furthermore, the Department finds that the above-listed reasons also 
constitute good cause under 5 U.S.C. 553(d)(3) for waiving the 
customary requirement to delay the effective date of a regulation for 
30 days following its publication. Therefore, this Interim Final Rule 
is effective immediately upon publication.

List of Subjects in 29 CFR Part 37

    Administrative practice and procedure, Discrimination, Civil 
rights, Equal education opportunity, Equal employment opportunity, 
Grant programs--Labor, Individuals with disabilities, Investigations, 
Reporting and recordkeeping requirements.

    Signed at Washington, D.C. this 22nd day of October 1999.
Alexis M. Herman,
Secretary of Labor.

    Accordingly, title 29, subtitle A of the Code of Federal 
Regulations is amended by adding part 37 to read as follows:

PART 37--IMPLEMENTATION OF THE NONDISCRIMINATION AND EQUAL 
OPPORTUNITY PROVISIONS OF THE WORKFORCE INVESTMENT ACT OF 1998 
(WIA)

Subpart A--General Provisions

Sec.
37.1  What is the purpose of this part?
37.2  To whom does this part apply, and what is the scope of this 
part?
37.3  How does this part affect a recipient's other obligations?
37.4  What definitions apply to this part?
37.5  What forms of discrimination are prohibited by this part?
37.6  What specific discriminatory actions, based on prohibited 
grounds other than disability, are prohibited by this part?
37.7  What specific discriminatory actions based on disability are 
prohibited by this part?
37.8  What are a recipient's responsibilities regarding reasonable 
accommodation and reasonable modification for individuals with 
disabilities?
37.9  What are a recipient's responsibilities to communicate with 
individuals with disabilities?
37.10  To what extent are a recipient's employment practices covered 
by this part?
37.11  To what extent are intimidation and retaliation prohibited by 
this part?
37.12  What Department of Labor office is responsible for 
administering this part?
37.13  Who is responsible for providing interpretations of this 
part?
37.14  Under what circumstances may the Secretary delegate the 
responsibilities of this part?
37.15  What are the Director's responsibilities to coordinate with 
other civil rights agencies?
37.16  What is this part's effect on a recipient's obligations under 
other laws, and what limitations apply?

Subpart B--Recordkeeping and Other Affirmative Obligations of 
Recipients

Assurances

37.20  What is a grant applicant's obligation to provide a written 
assurance?
37.21  How long will the recipient's obligation under the assurance 
last, and how broad is the obligation?
37.22  How must covenants be used in connection with this part?

Equal Opportunity Officers

37.23  Who must designate an Equal Opportunity Officer?
37.24  Who is eligible to serve as an Equal Opportunity Officer?
37.25  What are the responsibilities of an Equal Opportunity 
Officer?
37.26  What are a recipient's obligations relating to the Equal 
Opportunity Officer?
37.27  What are the obligations of small recipients regarding Equal 
Opportunity Officers?
37.28  What are the obligations of service providers regarding Equal 
Opportunity Officers?

Notice and Communication

37.29  What are a recipient's obligations to disseminate its equal 
opportunity policy?
37.30  What specific wording must the notice contain?
37.31  Where must the notice required by Secs. 37.29 and 37.30 be 
published?
37.32  When must the notice be provided?
37.33  Who is responsible for meeting the notice requirement with 
respect to service providers?
37.34  What type of notice must a recipient include in publications, 
broadcasts, and other communications?
37.35  What are a recipient's responsibilities to provide services 
and information in languages other than English?
37.36  What responsibilities does a recipient have to communicate 
information during orientations?

[[Page 61716]]

Data and Information Collection and Maintenance

37.37  What are a recipient's responsibilities to collect and 
maintain data and other information?
37.38  What information must grant applicants and recipients provide 
to CRC?
37.39  How long must grant applicants and recipients maintain the 
records required under this part?
37.40  What access to sources of information must grant applicants 
and recipients provide the Director?
37.41  What responsibilities do grant applicants, recipients, and 
the Department have to maintain the confidentiality of the 
information collected?
37.42  What are a recipient's responsibilities under this part to 
provide universal access to WIA Title I-financially assisted 
programs and activities?

Subpart C--Governor's Responsibilities to Implement the 
Nondiscrimination and Equal Opportunity Requirements of WIA

37.50  To whom does this subpart apply?
37.51  What are a Governor's oversight responsibilities?
37.52  To what extent may a Governor be liable for the actions of a 
recipient he or she has financially assisted under WIA Title I?
37.53  What are a Governor's oversight responsibilities regarding 
recipients' recordkeeping?
37.54  That are a Governor's obligations to develop and maintain a 
Methods of Administration?
37.55  When must the Governor carry out his or her obligations with 
regard to the Methods of Administration?

Subpart D--Compliance Procedures

37.60  How does the Director evaluate compliance with the 
nondiscrimination and equal opportunity provisions of WIA and this 
part?
37.61  Is there authority to issue subpoenas?

Compliance Reviews

37.62  What are the authority and procedures for conducting pre-
approval compliance reviews?
37.63  What are the authority and procedures for conducting post-
approval compliance reviews?
37.64  What procedures must the Director follow when CRC has 
completed a post-approval compliance review?
37.65  What is the Director's authority to monitor the activities of 
a Governor?
37.66  What happens if a recipient fails to submit requested data, 
records, and/or information, or fails to provide CRC with the 
required access?
37.67  What information must a Notice to Show Cause contain?
37.68  How may a recipient show cause why enforcement proceedings 
should not be instituted?
37.69  What happens if a recipient fails to show cause?

Complaint Processing Procedures

37.70  Who may file a complaint concerning discrimination connected 
with WIA Title I?
37.71  Where may a complaint be filed?
37.72  When must a complaint be filed?
37.73  What information must a complaint contain?
37.74  Are there any forms that a complainant may use to file a 
complaint?
37.75  Is there a right of representation in the complaint process?
37.76  What are the required elements of a recipient's 
discrimination complaint processing procedures?
37.77  Who is responsible for developing and publishing complaint 
processing procedures for service providers?
37.78  Does a recipient have any special obligations in cases in 
which the recipient determines that it has no jurisdiction over a 
complaint?
37.79  If, before the 90-day period has expired, a recipient issues 
a Notice of Final Action with which the complainant is dissatisfied, 
how long does the complainant have to file a complaint with the 
Director?
37.80  What happens if a recipient fails to issue a Notice of Final 
Action within 90 days of the date on which a complaint was filed?
37.81  Are there any circumstances under which the Director may 
extend the time limit for filing a complaint with him or her?
37.82  Does the Director accept every complaint for resolution?
37.83  What happens if a complaint does not contain enough 
information?
37.84  What happens if CRC does not have jurisdiction over a 
complaint?
37.85  Are there any other circumstances in which the Director will 
send a complaint to another authority?
37.86  What must the Director do if he or she determines that a 
complaint will not be accepted?
37.87  What must the Director do if he or she determines that a 
complaint will be accepted?
37.88  Who may contact CRC about a complaint?
37.89  May the Director offer the parties to a complaint the option 
of mediation?

Determinations

37.90  If a complaint is investigated, what must the Director do 
when the investigation is completed?
37.91  What notice must the Director issue if he or she finds 
reasonable cause to believe that a violation has taken place?
37.92  What notice must the Director issue if he or she finds no 
reasonable cause to believe that a violation has taken place?
37.93  What happens if the Director finds that a violation has taken 
place, and the recipient fails or refuses to take the corrective 
action listed in the Initial Determination?
37.94  What corrective or remedial actions may be imposed where, 
after a compliance review or complaint investigation, the Director 
finds a violation of the nondiscrimination and equal opportunity 
provisions of WIA or this part?
37.95  What procedures apply if the Director finds that a recipient 
has violated the nondiscrimination and equal opportunity provisions 
of WIA or this part?
37.96  What are the required elements of a written assurance?
37.97  What are the required elements of a Conciliation Agreement?
37.98  What are the circumstances under which the Director will 
conclude that compliance cannot be secured by voluntary means?
37.99  If the Director concludes that compliance cannot be secured 
by voluntary means, what actions must he or she take?
37.100  What information must a Final Determination contain?
37.101  Whom must the Director notify of a finding of noncompliance?

Breaches of Conciliation Agreements

37.102  What happens if a grant applicant or recipient breaches a 
Conciliation Agreement?
37.103  Whom must the Director notify about a breach of a 
Conciliation Agreement?
37.104  What information must a Notification of Breach of 
Conciliation Agreement contain?
37.105  Whom must the Director notify if enforcement action under a 
Notification of Breach of Conciliation Agreement is commenced?

Subpart E--Federal Procedures For Effecting Compliance

37.110  What enforcement procedures does the Department follow to 
effect compliance with the nondiscrimination and equal opportunity 
provisions of WIA and this part?
37.111  What hearing procedures does the Department follow?
37.112  What procedures for initial and final decisions does the 
Department follow?
37.113  What procedure does the Department follow to suspend, 
terminate, withhold, deny or discontinue WIA Title I financial 
assistance?
37.114  What procedure does the Department follow to distribute WIA 
Title I financial assistance to an alternate recipient?
37.115  What procedures does the Department follow for post-
termination proceedings?

    Authority: Sections 134(b), 136(d)(2)(F), 136(e), 172(a), 
183(c), 185(c)(2), 185(d)(1)(E), 186, 187 and 188 of the Workforce 
Investment Act of 1998, 29 U.S.C. 2801 et seq.; Title VI of the 
Civil Rights Act of 1964, as amended, 42 U.S.C. 2000d, et seq.; 
Section 504 of the Rehabilitation Act of 1973, as amended, 29 U.S.C. 
794; the Age Discrimination Act of 1975, as amended, 42

[[Page 61717]]

U.S.C. 6101; and Title IX of the Education Amendments of 1972, as 
amended, 20 U.S.C. 1681.

Subpart A--General Provisions


Sec. 37.1  What is the purpose of this part?

    The purpose of this part is to implement the nondiscrimination and 
equal opportunity provisions of the Workforce Investment Act of 1998 
(WIA), which are contained in section 188 of WIA. Section 188 prohibits 
discrimination on the grounds of race, color, religion, sex, national 
origin, age, disability, political affiliation or belief, and for 
beneficiaries only, citizenship or participation in a WIA Title I-
financially assisted program or activity. This part clarifies the 
application of the nondiscrimination and equal opportunity provisions 
of WIA and provides uniform procedures for implementing them.


Sec. 37.2  To whom does this part apply, and what is the scope of this 
part?

    (a) This part applies to:
    (1) Any recipient, as defined in Sec. 37.4;
    (2) Programs and activities that are part of the One-Stop delivery 
system and that are operated by One-Stop partners listed in section 
121(b) of WIA, to the extent that the programs and activities are being 
conducted as part of the One-Stop delivery system; and
    (3) The employment practices of a recipient and/or One-Stop 
partner, as provided in Sec. 37.10.
    (b) Limitation of Application. This part does not apply to:
    (1) Programs or activities that are financially assisted by the 
Department exclusively under laws other than Title I of WIA, and that 
are not part of the One-Stop delivery system (including programs or 
activities implemented under, authorized by, and/or financially 
assisted by the Department under, JTPA);
    (2) Contracts of insurance or guaranty;
    (3) The ultimate beneficiary to this program of Federal financial 
assistance;
    (4) Federal procurement contracts, with the exception of contracts 
to operate or provide services to Job Corps Centers; and
    (5) Federally-operated Job Corps Centers. The operating Department 
is responsible for enforcing the nondiscrimination and equal 
opportunity laws to which such Centers are subject.


Sec. 37.3  How does this part affect a recipient's other obligations?

    (a) A recipient's compliance with this part will satisfy any 
obligation of the recipient to comply with 29 CFR part 31, the 
Department of Labor's regulations implementing Title VI of the Civil 
Rights Act of 1964, as amended (Title VI), and with Subparts A, D and E 
of 29 CFR part 32, the Department's regulations implementing Section 
504 of the Rehabilitation Act of 1973, as amended (Section 504).
    (b) 29 CFR part 32, Subparts B and C and Appendix A, the 
Department's regulations which implement the requirements of Section 
504 pertaining to employment practices and employment-related training, 
program accessibility, and reasonable accommodation, are hereby 
incorporated into this part by reference. Therefore, recipients must 
comply with the requirements set forth in those regulatory sections as 
well as the requirements listed in this part.
    (c) Recipients that are also public entities or public 
accommodations, as defined by Titles II and III of the Americans with 
Disabilities Act of 1990 (ADA), should be aware of obligations imposed 
by those titles.
    (d) Similarly, recipients that are also employers, employment 
agencies, or other entities covered by Title I of the ADA should be 
aware of obligations imposed by that title.
    (e) Compliance with this part does not affect, in any way, any 
additional obligation that a recipient may have to comply with the 
following laws and their implementing regulations:
    (1) Executive Order 11246, as amended;
    (2) Sections 503 and 504 of the Rehabilitation Act of 1973, as 
amended (29 U.S.C. 793 and 794);
    (3) The affirmative action provisions of the Vietnam Era Veterans' 
Readjustment Assistance Act of 1974, as amended (38 U.S.C. 4212);
    (4) The Equal Pay Act of 1963, as amended (29 U.S.C. 206d);
    (5) Titles VI and VII of the Civil Rights Act of 1964, as amended 
(42 U.S.C. 2000d et seq. and 2000e et seq.);
    (6) The Age Discrimination Act of 1975, as amended (42 U.S.C. 
6101);
    (7) The Age Discrimination in Employment Act of 1967, as amended 
(29 U.S.C. 621);
    (8) Title IX of the Education Amendments of 1972, as amended (Title 
IX) (20 U.S.C. 1681);
    (9) The Americans with Disabilities Act of 1990, as amended (42 
U.S.C. 12101 et seq.); and
    (10) The anti-discrimination provision of the Immigration and 
Nationality Act, as amended (8 U.S.C. 1324b).
    (f) This rule does not preempt consistent State and local 
requirements.


Sec. 37.4  What definitions apply to this part?

    As used in this part, the term:
    Administrative Law Judge means a person appointed as provided in 5 
U.S.C. 3105 and 5 CFR 930.203, and qualified under 5 U.S.C. 557, to 
preside at hearings held under the nondiscrimination and equal 
opportunity provisions of WIA and this part.
    Aid, benefits, services, or training means WIA Title I--financially 
assisted services, financial or other aid, or benefits provided by or 
through a recipient or its employees, or by others through contract or 
other arrangements with the recipient. ``Aid, benefits, services, or 
training'' includes, but is not limited to:
    (1) Core and intensive services;
    (2) Education or training;
    (3) Health, welfare, housing, social service, rehabilitation, or 
other supportive services;
    (4) Work opportunities; and
    (5) Cash, loans, or other financial assistance to individuals.
    As used in this part, the term includes any aid, benefits, 
services, or training provided in or through a facility that has been 
constructed, expanded, altered, leased, rented, or otherwise obtained, 
in whole or in part, with Federal financial assistance under Title I of 
WIA.
    Applicant means an individual who is interested in being considered 
for WIA Title I--financially assisted aid, benefits, services, or 
training by a recipient, and who has signified that interest by 
submitting personal information in response to a request by the 
recipient. See also the definitions of ``application for benefits,'' 
``eligible applicant/registrant,'' ``participant,'' ``participation,'' 
and ``recipient'' in this section.
    Applicant for employment means a person or persons who make(s) 
application for employment with a recipient of Federal financial 
assistance under WIA Title I.
    Application for assistance means the process by which required 
documentation is provided to the Governor, recipient, or Department 
before and as a condition of receiving WIA Title I financial assistance 
(including both new and continuing assistance).
    Application for benefits means the process by which information, 
including but not limited to a completed application form, is provided 
by applicants or eligible applicants before and as a condition of 
receiving WIA Title I--financially assisted aid, benefits, services, or 
training from a recipient.
    Assistant Attorney General means the Assistant Attorney General, 
Civil Rights

[[Page 61718]]

Division, United States Department of Justice.
    Assistant Secretary means the Assistant Secretary for 
Administration and Management, United States Department of Labor.
    Auxiliary aids or services includes--
    (1) Qualified interpreters, notetakers, transcription services, 
written materials, telephone handset amplifiers, assistive listening 
systems, telephones compatible with hearing aids, closed caption 
decoders, open and closed captioning, telecommunications devices for 
deaf persons (TDDs/TTYs), videotext displays, or other effective means 
of making aurally delivered materials available to individuals with 
hearing impairments;
    (2) Qualified readers, taped texts, audio recordings, brailled 
materials, large print materials, or other effective means of making 
visually delivered materials available to individuals with visual 
impairments;
    (3) Acquisition or modification of equipment or devices; and
    (4) Other similar services and actions.
    Beneficiary means the individual or individuals intended by 
Congress to receive aid, benefits, services, or training from a 
recipient.
    Citizenship See ``Discrimination on the ground of citizenship'' in 
this section.
    CRC means the Civil Rights Center, Office of the Assistant 
Secretary for Administration and Management, U.S. Department of Labor.
    Department means the U.S. Department of Labor (DOL), including its 
agencies and organizational units.
    Departmental grantmaking agency means a grantmaking agency within 
the U.S. Department of Labor.
    Director means the Director, Civil Rights Center (CRC), Office of 
the Assistant Secretary for Administration and Management, U.S. 
Department of Labor, or a designee authorized to act for the Director.
    Disability means, with respect to an individual, a physical or 
mental impairment that substantially limits one or more of the major 
life activities of such individual; a record of such an impairment; or 
being regarded as having such an impairment.
    (1)(i) The phrase physical or mental impairment means--
    (A) Any physiological disorder or condition, cosmetic 
disfigurement, or anatomical loss affecting one or more of the 
following body systems: neurological, musculoskeletal, special sense 
organs, respiratory (including speech organs), cardiovascular, 
reproductive, digestive, genitourinary, hemic and lymphatic, skin, and 
endocrine;
    (B) Any mental or psychological disorder such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities.
    (ii) The phrase physical or mental impairment includes, but is not 
limited to, such contagious and noncontagious diseases and conditions 
as orthopedic, visual, speech and hearing impairments, cerebral palsy, 
epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart 
disease, diabetes, mental retardation, emotional illness, specific 
learning disabilities, HIV disease (whether symptomatic or 
asymptomatic), tuberculosis, drug addiction, and alcoholism. The phrase 
``physical or mental impairment'' does not include homosexuality or 
bisexuality.
    (2) The phrase major life activities means functions such as caring 
for one's self, performing manual tasks, walking, seeing, hearing, 
speaking, breathing, learning, and working.
    (3) The phrase has a record of such an impairment means has a 
history of, or has been misclassified as having, a mental or physical 
impairment that substantially limits one or more major life activities.
    (4) The phrase is regarded as having an impairment means--
    (i) Has a physical or mental impairment that does not substantially 
limit major life activities but that is treated by the recipient as 
being such a limitation;
    (ii) Has a physical or mental impairment that substantially limits 
major life activities only as a result of the attitudes of others 
toward such impairment; or
    (iii) Has none of the impairments defined in paragraph (1) of this 
definition but is treated by the recipient as having such an 
impairment.
    Discrimination on the ground of citizenship means a denial of 
participation in programs or activities financially assisted in whole 
or in part under Title I of WIA to individuals on the basis of their 
status as citizens or nationals of the United States, lawfully admitted 
permanent resident aliens, refugees, asylees, and parolees, or other 
immigrants authorized by the Attorney General to work in the United 
States.
    Eligible applicant/registrant means an individual who has been 
determined eligible to participate in one or more WIA Title I--
financially assisted programs or activities.
    Employment practices means a recipient's practices related to 
employment, including but not limited to:
    (1) Recruitment or recruitment advertising;
    (2) Selection, placement, layoff or termination of employees;
    (3) Upgrading, promotion, demotion or transfer of employees;
    (4) Training, including employment-related training;
    (5) Participation in upward mobility programs;
    (6) Deciding rates of pay or other forms of compensation;
    (7) Use of facilities; or
    (8) Deciding other terms, conditions, benefits and/or privileges of 
employment.
    Employment-related training means training that allows or enables 
an individual to obtain employment.
    Entity means any person, corporation, partnership, joint venture, 
sole proprietorship, unincorporated association, consortium, Indian 
tribe or tribal organization, Native Hawaiian organization, and/or 
entity authorized by State or local law; any State or local government; 
and/or any agency, instrumentality or subdivision of such a government.
    Facility means all or any portion of buildings, structures, sites, 
complexes, equipment, roads, walks, passageways, parking lots, rolling 
stock or other conveyances, or other real or personal property or 
interest in such property, including the site where the building, 
property, structure, or equipment is located. The phrase ``real or 
personal property'' in the preceding sentence includes indoor 
constructs that may or may not be permanently attached to a building or 
structure. Such constructs include, but are not limited to, office 
cubicles, computer kiosks, and similar constructs.
    Federal grantmaking agency means a Federal agency that provides 
financial assistance under any Federal statute.
    Financial assistance means any of the following:
    (1) Any grant, subgrant, loan, or advance of funds, including funds 
extended to any entity for payment to or on behalf of participants 
admitted to that entity for training, or extended directly to such 
participants for payment to that entity;
    (2) Provision of the services of grantmaking agency personnel, or 
of other personnel at the grantmaking agency's expense;
    (3) A grant or donation of real or personal property or any 
interest in or use of such property, including:
    (a) Transfers or leases of property for less than fair market value 
or for reduced consideration;

[[Page 61719]]

    (b) Proceeds from a subsequent sale, transfer, or lease of such 
property, if the grantmaking agency's share of the fair market value of 
the property is not returned to the grantmaking agency; and
    (c) The sale, lease, or license of, and/or the permission to use 
(other than on a casual or transient basis), such property or any 
interest in such property, either:
    (i) Without consideration,
    (ii) At a nominal consideration, or
    (iii) At a consideration that is reduced or waived either for the 
purpose of assisting the recipient, or in recognition of the public 
interest to be served by such sale or lease to or use by the recipient;
    (4) Waiver of charges that would normally be made for the 
furnishing of services by the grantmaking agency; and
    (5) Any other agreement, arrangement, contract or subcontract 
(other than a procurement contract or a contract of insurance or 
guaranty), or other instrument that has as one of its purposes the 
provision of assistance or benefits under the statute or policy that 
authorizes assistance by the grantmaking agency.
    Financial assistance under Title I of WIA means any of the 
following, when authorized or extended under WIA Title I:
    (1) Any grant, subgrant, loan, or advance of Federal funds, 
including funds extended to any entity for payment to or on behalf of 
participants admitted to that entity for training, or extended directly 
to such participants for payment to that entity;
    (2) Provision of the services of Federal personnel, or of other 
personnel at Federal expense;
    (3) A grant or donation of Federal real or personal property or any 
interest in or use of such property, including:
    (a) Transfers or leases of property for less than fair market value 
or for reduced consideration;
    (b) Proceeds from a subsequent sale, transfer, or lease of such 
property, if the Federal share of the fair market value of the property 
is not returned to the Federal Government; and
    (c) The sale, lease, or license of, and/or the permission to use 
(other than on a casual or transient basis), such property or any 
interest in such property, either:
    (i) Without consideration,
    (ii) At a nominal consideration, or
    (iii) At a consideration that is reduced or waived either for the 
purpose of assisting the recipient, or in recognition of the public 
interest to be served by such sale or lease to or use by the recipient;
    (4) Waiver of charges that would normally be made for the 
furnishing of Government services; and
    (5) Any other agreement, arrangement, contract or subcontract 
(other than a Federal procurement contract or a contract of insurance 
or guaranty), or other instrument that has as one of its purposes the 
provision of assistance or benefits under WIA Title I.
    Fundamental alteration means:
    (1) A change in the essential nature of a program or activity as 
defined in this part, including but not limited to an aid, service, 
benefit, or training; or
    (2) A cost that a recipient can demonstrate would result in an 
undue burden. Factors to be considered in making the determination 
whether the cost of a modification would result in such a burden 
include:
    (a) The nature and net cost of the modification needed, taking into 
consideration the availability of tax credits and deductions, and/or 
outside financial assistance, for the modification;
    (b) The overall financial resources of the facility or facilities 
involved in the provision of the modification, including:
    (i) The number of persons aided, benefited, served, or trained by, 
or employed at, the facility or facilities; and
    (ii) The effect the modification would have on the expenses and 
resources of the facility or facilities;
    (c) The overall financial resources of the recipient, including:
    (i) The overall size of the recipient;
    (ii) The number of persons aided, benefited, served, trained, or 
employed by the recipient; and
    (iii) The number, type and location of the recipient's facilities;
    (d) The type of operation or operations of the recipient, 
including:
    (i) The geographic separateness and administrative or fiscal 
relationship of the facility or facilities in question to the 
recipient; and
    (ii) Where the modification sought is employment-related, the 
composition, structure and functions of the recipient's workforce; and
    (e) The impact of the modification upon the operation of the 
facility or facilities, including:
    (i) The impact on the ability of other participants to receive aid, 
benefits, services, or training, or of other employees to perform their 
duties; and
    (ii) The impact on the facility's ability to carry out its mission.
    Governor means the chief elected official of any State or his or 
her designee.
    Grant applicant means an entity that submits the required 
documentation to the Governor, recipient, or Department, before and as 
a condition of receiving financial assistance under Title I of WIA.
    Grantmaking agency means an entity that provides Federal financial 
assistance.
    Guideline means written informational material supplementing an 
agency's regulations and provided to grant applicants and recipients to 
provide program-specific interpretations of their responsibilities 
under the regulations.
    Illegal use of drugs means the use of drugs, the possession or 
distribution of which is unlawful under the Controlled Substances Act, 
as amended (21 U.S.C. 812). ``Illegal use of drugs'' does not include 
the use of a drug taken under supervision of a licensed health care 
professional, or other uses authorized by the Controlled Substances Act 
or other provisions of Federal law.
    Individual with a disability means a person who has a disability, 
as defined in this section.
    (1) The term ``individual with a disability'' does not include an 
individual on the basis of:
    (i) Transvestism, transsexualism, pedophilia, exhibitionism, 
voyeurism, gender identity disorders not resulting from physical 
impairments, or other sexual behavior disorders;
    (ii) Compulsive gambling, kleptomania, or pyromania; or
    (iii) Psychoactive substance use disorders resulting from current 
illegal use of drugs.
    (2) The term ``individual with a disability'' also does not include 
an individual who is currently engaging in the illegal use of drugs, 
when a recipient acts on the basis of such use. This limitation does 
not exclude as an individual with a disability an individual who:
    (i) Has successfully completed a supervised drug rehabilitation 
program and is no longer engaging in the illegal use of drugs, or has 
otherwise been rehabilitated successfully and is no longer engaging in 
such use;
    (ii) Is participating in a supervised rehabilitation program and is 
no longer engaging in such use; or
    (iii) Is erroneously regarded as engaging in such use, but is not 
engaging in such use, except that it is not a violation of the 
nondiscrimination and equal opportunity provisions of WIA or this part 
for a recipient to adopt or administer reasonable policies or 
procedures, including but not limited to drug testing, designed to 
ensure that an individual described in paragraph (1)(i) or (1)(ii) of 
this definition is no longer engaging in the illegal use of drugs.

[[Page 61720]]

    (2) With regard to employment, the term ``individual with a 
disability'' does not include any individual who:
    (i) Is an alcoholic:
    (A) Whose current use of alcohol prevents such individual from 
performing the duties of the job in question, or
    (B) Whose employment, by reason of such current alcohol abuse, 
would constitute a direct threat to property or the safety of others; 
or
    (ii) Has a currently contagious disease or infection, if:
    (A) That disease or infection prevents him or her from performing 
the duties of the job in question, or
    (B) His or her employment, because of that disease or infection, 
would constitute a direct threat to the health and safety of others.
    Labor market area means an economically integrated geographic area 
within which individuals can reside and find employment within a 
reasonable distance or can readily change employment without changing 
their place of residence. Such an area must be identified in accordance 
with either criteria used by the Bureau of Labor Statistics of the 
Department of Labor in defining such areas, or similar criteria 
established by a Governor.
    LWIA (Local Workforce Investment Area) grant recipient means the 
entity that receives WIA Title I financial assistance for a Local 
Workforce Investment Area directly from the Governor and disburses 
those funds for workforce investment activities.
    Methods of Administration means the written document and supporting 
documentation developed under Sec. 37.54.
    National Programs means:
    (1) Job Corps; and
    (2) Programs receiving Federal funds under Title I, Subtitle D of 
WIA directly from the Department. Such programs include, but are not 
limited to, the Migrant and Seasonal Workers Programs, Native American 
Programs, and Veterans' Workforce Investment programs.
    Noncompliance means a failure of a grant applicant or recipient to 
comply with any of the applicable requirements of the nondiscrimination 
and equal opportunity provisions of WIA or this part.
    On-the-Job Training (OJT) means training by an employer that is 
provided to a paid participant while the participant is engaged in 
productive work that:
    (1) Provides knowledge or skills essential to the full and adequate 
performance of the job;
    (2) Provides reimbursement to the employer of up to 50 percent of 
the wage rate of the participant, for the extraordinary costs of 
providing the training and additional supervision related to the 
training; and
    (3) Is limited in duration as appropriate to the occupation for 
which the participant is being trained, taking into account the content 
of the training, the prior work experience of the participant, and the 
service strategy of the participant, as appropriate.
    Participant means an individual who has been determined to be 
eligible to participate in, and who is receiving aid, benefits, 
services or training under, a program or activity funded in whole or in 
part under Title I of WIA. ``Participant'' includes, but is not limited 
to, applicants receiving any service(s) under state Employment Service 
programs, and claimants receiving any service(s) under state 
Unemployment Insurance programs.
    Participation is considered to commence on the first day, following 
determination of eligibility, on which the participant began receiving 
subsidized aid, benefits, services, or training provided under Title I 
of WIA.
    Parties to a hearing means the Department and the grant 
applicant(s), recipient(s), or Governor.
    Population eligible to be served means the total population of 
adults and eligible youth who reside within the labor market area that 
is served by a particular recipient, and who are eligible to seek WIA 
Title I-financially assisted aid, benefits, services or training from 
that recipient. See the definition of ``labor market area'' in this 
section.
    Program or activity: See ``WIA Title I-financially assisted program 
or activity'' in this section.
    Prohibited ground means any basis upon which it is illegal to 
discriminate under the nondiscrimination and equal opportunity 
provisions of WIA or this part, i.e., race, color, religion, sex, 
national origin, age, disability, political affiliation or belief, and, 
for beneficiaries only, citizenship or participation in a WIA Title I-
financially assisted program or activity.
    Public entity means:
    (1) Any State or local government; and
    (2) Any department, agency, special purpose district, workforce 
investment board, or other instrumentality of a State or States or 
local government.
    Qualified individual with a disability means:
    (1) With respect to employment, an individual with a disability 
who, with or without reasonable accommodation, is capable of performing 
the essential functions of the job in question;
    (2) With respect to aid, benefits, services, or training, an 
individual with a disability who, with or without reasonable 
accommodation and/or reasonable modification, meets the essential 
eligibility requirements for the receipt of such aid, benefits, 
services, or training.
    Qualified interpreter means an interpreter who is able to interpret 
effectively, accurately, and impartially, either for individuals with 
disabilities or for individuals with limited English skills. The 
interpreter must be able to interpret both receptively and 
expressively, using any necessary specialized vocabulary.
    Reasonable accommodation. (1) The term ``reasonable accommodation'' 
means:
    (i) Modifications or adjustments to an application/registration 
process that enables a qualified applicant/registrant with a disability 
to be considered for the aid, benefits, services, training, or 
employment that the qualified applicant/registrant desires; or
    (ii) Modifications or adjustments that enable a qualified 
individual with a disability to perform the essential functions of a 
job, or to receive aid, benefits, services, or training equal to that 
provided to qualified individuals without disabilities. These 
modifications or adjustments may be made to:
    (A) The environment where work is performed or aid, benefits, 
services, or training are given; or
    (B) The customary manner in which, or circumstances under which, a 
job is performed or aid, benefits, services, or training are given; or
    (iii) Modifications or adjustments that enable a qualified 
individual with a disability to enjoy the same benefits and privileges 
of the aid, benefits, services, training, or employment as are enjoyed 
by other similarly situated individuals without disabilities.
    (2) Reasonable accommodation includes, but is not limited to:
    (i) Making existing facilities used by applicants, registrants, 
eligible applicants/registrants, participants, applicants for 
employment, and employees readily accessible to and usable by 
individuals with disabilities; and
    (ii) Restructuring of a job or a service, or of the way in which 
aid, benefits, or training is/are provided; part-time or modified work 
or training schedules; acquisition or modification of equipment or 
devices; appropriate adjustment or modifications of examinations, 
training materials, or policies; the provision of readers or 
interpreters; and other similar

[[Page 61721]]

accommodations for individuals with disabilities.
    (3) To determine the appropriate reasonable accommodation, it may 
be necessary for the recipient to initiate an informal, interactive 
process with the qualified individual with a disability in need of the 
accommodation. This process should identify the precise limitations 
resulting from the disability and potential reasonable accommodations 
that could overcome those limitations.
    Recipient means any entity to which financial assistance under WIA 
Title I is extended, either directly from the Department or through the 
Governor or another recipient (including any successor, assignee, or 
transferee of a recipient), but excluding the ultimate beneficiaries of 
the WIA Title I-funded program or activity. In instances in which a 
Governor operates a program or activity, either directly or through a 
State agency, using discretionary funds apportioned to him or her under 
WIA Title I (rather than disbursing the funds to another recipient), 
the Governor is also a recipient. ``Recipient'' includes, but is not 
limited to:
    (1) State-level agencies that administer, or are financed in whole 
or in part with, WIA Title I funds;
    (2) State Employment Security Agencies;
    (3) State and local Workforce Investment Boards;
    (4) LWIA grant recipients;
    (5) One-Stop operators;
    (6) Service providers, including eligible training providers;
    (7) On-the-Job Training (OJT) employers;
    (8) Job Corps contractors and center operators, excluding the 
operators of federally-operated Job Corps centers;
    (9) Job Corps national training contractors;
    (10) Outreach and admissions agencies, including Job Corps 
contractors that perform these functions;
    (11) Placement agencies, including Job Corps contractors that 
perform these functions; and
    (12) Other National Program recipients.
    In addition, for purposes of this part, One-Stop partners, as 
defined in section 121(b) of WIA, are treated as ``recipients,'' and 
are subject to the nondiscrimination and equal opportunity requirements 
of this part, to the extent that they participate in the One-Stop 
delivery system.
    Registrant means the same as ``applicant'' for purposes of this 
part. See also the definitions of ``application for benefits,'' 
``eligible applicant/registrant,'' ``participant,'' ``participation,'' 
and ``recipient'' in this section.
    Respondent means a grant applicant or recipient (including a 
Governor) against which a complaint has been filed under the 
nondiscrimination and equal opportunity provisions of WIA or this part.
    Secretary means the Secretary of Labor, U.S. Department of Labor, 
or his or her designee.
    Sectarian activities means religious worship or ceremony, or 
sectarian instruction.
    Section 504 means Section 504 of the Rehabilitation Act of 1973, 29 
U.S.C. 794, as amended, which forbids discrimination against qualified 
individuals with disabilities in federally-financed and conducted 
programs and activities.
    Service provider means:
    (1) Any operator of, or provider of aid, benefits, services, or 
training to:
    (a) Any WIA Title I--funded program or activity that receives 
financial assistance from or through any State or LWIA grant recipient; 
or
    (b) Any participant through that participant's Individual Training 
Account (ITA); or
    (2) Any entity that is selected and/or certified as an eligible 
provider of training services to participants.
    Small recipient means a recipient who:
    (a) Serves a total of fewer than 15 beneficiaries during the entire 
grant year, and
    (b) Employs fewer than 15 employees on any given day during the 
grant year.
    Solicitor means the Solicitor of Labor, U.S. Department of Labor, 
or his or her designee.
    State means the individual states of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, the Virgin 
Islands, American Samoa, Guam, Wake Island, the Commonwealth of the 
Northern Mariana Islands, the Federated States of Micronesia, the 
Republic of the Marshall Islands, and Palau.
    State Employment Security Agency (SESA) means the State agency 
that, under the State Administrator, contains both State agencies with 
responsibility for administering programs authorized under the Wagner-
Peyser Act, and unemployment insurance programs authorized under Title 
III of the Social Security Act.
    State Programs means programs financially assisted in whole or in 
part under Title I of WIA in which either:
    (1) The Governor and/or State receives and disburses the grant to 
or through LWIA grant recipients; or
    (2) The Governor retains the grant funds and operates the programs, 
either directly or through a State agency.
    ``State programs'' also includes State Employment Security 
Agencies, State Employment Service agencies, and/or State unemployment 
compensation agencies.
    Supportive services means services, such as transportation, child 
care, dependent care, housing, and needs-related payments, that are 
necessary to enable an individual to participate in WIA Title I-
financially assisted programs and activities, as consistent with the 
provisions of WIA.
    Terminee means a participant whose participation in the program 
terminates, voluntarily or involuntarily, during the applicable program 
year.
    Title VI means Title VI of the Civil Rights Act of 1964, 42 U.S.C. 
2000d, et seq., as amended, which forbids recipients of Federal 
financial assistance from discriminating on the basis of race, color, 
or national origin.
    Transferee means a person or entity to whom real or personal 
property, or an interest in such property, is transferred.
    Ultimate beneficiary See the definition of ``beneficiary'' in this 
section.
    Undue hardship This term has different meanings, depending upon 
whether it is used with regard to reasonable accommodation of 
individuals with disabilities, or with regard to religious 
accommodation.
    (1) Reasonable accommodation of individuals with disabilities: (i) 
In general, ``undue hardship'' means significant difficulty or expense 
incurred by a recipient, when considered in light of the factors set 
forth in paragraph (ii).
    (ii) Factors to be considered in determining whether an 
accommodation would impose an undue hardship on a recipient include:
    (A) The nature and net cost of the accommodation needed, taking 
into consideration the availability of tax credits and deductions, and/
or outside funding, for the accommodation;
    (B) The overall financial resources of the facility or facilities 
involved in the provision of the reasonable accommodation, including:
    (1) The number of persons aided, benefited, served, or trained by, 
or employed at, the facility or facilities, and
    (2) The effect the accommodation would have on the expenses and 
resources of the facility or facilities;
    (C) The overall financial resources of the recipient, including:
    (1) The overall size of the recipient,

[[Page 61722]]

    (2) The number of persons aided, benefited, served, trained, or 
employed by the recipient, and
    (3) The number, type and location of the recipient's facilities;
    (D) The type of operation or operations of the recipient, 
including:
    (1) The geographic separateness and administrative or fiscal 
relationship of the facility or facilities in question to the 
recipient, and
    (2) Where the individual is seeking an employment-related 
accommodation, the composition, structure and functions of the 
recipient's workforce; and
    (E) The impact of the accommodation upon the operation of the 
facility or facilities, including:
    (1) The impact on the ability of other participants to receive aid, 
benefits, services, or training, or of other employees to perform their 
duties, and
    (2) The impact on the facility's ability to carry out its mission.
    (2) Religious accommodation For purposes of religious accommodation 
only, ``undue hardship'' means any additional, unusual costs, other 
than de minimis costs, that a particular accommodation would impose 
upon a recipient. See Trans World Airlines, Inc. v. Hardison, 432 U.S. 
63, 81, 84 (1977).
    WIA means the Workforce Investment Act of 1998, Pub. L. 105-220.
    WIA Title I financial assistance See the definition of ``Federal 
financial assistance under Title I of WIA'' in this section.
    WIA Title I-funded program or activity means:
    (1) A program or activity, operated by a recipient and funded, in 
whole or in part, under Title I of WIA, that provides either:
    (i) Any aid, benefits, services, or training to individuals; or
    (ii) Facilities for furnishing any aid, benefits, services, or 
training to individuals;
    (2) Aid, benefits, services, or training provided in facilities 
that are being or were constructed with the aid of Federal financial 
assistance under WIA Title I; or
    (3) Aid, benefits, services, or training provided with the aid of 
any non-WIA Title I funds, property, or other resources that are 
required to be expended or made available in order for the program to 
meet matching requirements or other conditions which must be met in 
order to receive the WIA Title I financial assistance.
    See the definition of ``aid, benefits, services, or training'' in 
this section.


Sec. 37.5  What forms of discrimination are prohibited by this part?

    No individual in the United States may, on the ground of race, 
color, religion, sex, national origin, age, disability, political 
affiliation or belief, and for beneficiaries only, citizenship or 
participation in any WIA Title I--financially assisted program or 
activity, be excluded from participation in, denied the benefits of, 
subjected to discrimination under, or denied employment in the 
administration of or in connection with any WIA Title I--funded program 
or activity.


Sec. 37.6  What specific discriminatory actions, based on prohibited 
grounds other than disability, are prohibited by this part?

    (a) For the purposes of this section, ``prohibited ground'' means 
race, color, religion, sex, national origin, age, political affiliation 
or belief, and for beneficiaries only, citizenship or participation in 
any WIA Title I--financially assisted program or activity.
    (b) A recipient must not, directly or through contractual, 
licensing, or other arrangements, on a prohibited ground:
    (1) Deny an individual any aid, benefits, services, or training 
provided under a WIA Title I--funded program or activity;
    (2) Provide to an individual any aid, benefits, services, or 
training that is different, or is provided in a different manner, from 
that provided to others under a WIA Title I--funded program or 
activity;
    (3) Subject an individual to segregation or separate treatment in 
any matter related to his or her receipt of any aid, benefits, 
services, or training under a WIA Title I--funded program or activity;
    (4) Restrict an individual in any way in the enjoyment of any 
advantage or privilege enjoyed by others receiving any aid, benefits, 
services, or training under a WIA Title I--funded program or activity;
    (5) Treat an individual differently from others in determining 
whether he or she satisfies any admission, enrollment, eligibility, 
membership, or other requirement or condition for any aid, benefits, 
services, or training provided under a WIA Title I--funded program or 
activity;
    (6) Deny or limit an individual with respect to any opportunity to 
participate in a WIA Title I--funded program or activity, or afford him 
or her an opportunity to do so that is different from the opportunity 
afforded others under a WIA Title I--funded program or activity;
    (7) Deny an individual the opportunity to participate as a member 
of a planning or advisory body that is an integral part of the WIA 
Title I--funded program or activity; or
    (8) Otherwise limit on a prohibited ground an individual in 
enjoyment of any right, privilege, advantage, or opportunity enjoyed by 
others receiving any WIA Title I--financially assisted aid, benefits, 
services, or training.
    (c) A recipient must not, directly or through contractual, 
licensing, or other arrangements:
    (1) Aid or perpetuate discrimination by providing significant 
assistance to an agency, organization, or person that discriminates on 
a prohibited ground in providing any aid, benefits, services, or 
training to registrants, applicants or participants in a WIA Title I--
funded program or activity; or
    (2) Refuse to accommodate an individual's religious practices or 
beliefs, unless to do so would result in undue hardship, as defined in 
section 37.4.
    (d) (1) In making any of the determinations listed in paragraph 
(d)(2) of this section, either directly or through contractual, 
licensing, or other arrangements, a recipient must not use standards, 
procedures, criteria, or administrative methods that have any of the 
following purposes or effects:
    (i) Subjecting individuals to discrimination on a prohibited 
ground; or
    (ii) Defeating or substantially impairing, on a prohibited ground, 
accomplishment of the objectives of either:
    (A) The WIA Title I--funded program or activity; or
    (B) the nondiscrimination and equal opportunity provisions of WIA 
or this part.
    (2) The determinations to which this paragraph applies include, but 
are not limited to:
    (i) The types of aid, benefits, services, training, or facilities 
that will be provided under any WIA Title I--funded program or 
activity;
    (ii) The class of individuals to whom such aid, benefits, services, 
training, or facilities will be provided; or
    (iii) The situations in which such aid, benefits, services, 
training, or facilities will be provided.
    (3) Paragraph (d) of this section applies to the administration of 
WIA Title I--funded programs or activities providing aid, benefits, 
services, training, or facilities in any manner, including, but not 
limited to:
    (i) Outreach and recruitment;
    (ii) Registration;
    (iii) Counseling and guidance;
    (iv) Testing;
    (v) Selection, placement, appointment, and referral;

[[Page 61723]]

    (vi) Training; and
    (vii) Promotion and retention.
    (4) A recipient must not take any of the prohibited actions listed 
in paragraph (d) of this section either directly or through 
contractual, licensing, or other arrangements.
    (e) In determining the site or location of facilities, a grant 
applicant or recipient must not make selections that have any of the 
following purposes or effects:
    (1) On a prohibited ground:
    (i) Excluding individuals from a WIA Title I--financially assisted 
program or activity;
    (ii) Denying them the benefits of such a program or activity; or
    (iii) Subjecting them to discrimination; or
    (2) Defeating or substantially impairing the accomplishment of the 
objectives of either:
    (i) The WIA Title I--financially assisted program or activity; or
    (ii) The nondiscrimination and equal opportunity provisions of WIA 
or this part.
    (f) (1) A recipient must not permit participants to be employed or 
trained in sectarian activities.
    (2) This paragraph applies to any facility that is, or will be, 
primarily used or inherently devoted either:
    (A) For sectarian instruction; or
    (B) As a place of worship,
    (ii) A recipient must not permit participants to be employed or 
trained in any way to:
    (A) Construct any part of such a facility,
    (B) Operate any part of such a facility, or
    (C) Maintain any part of that facility.
    (3) If a facility is not primarily or inherently devoted to 
sectarian instruction or religious worship, a recipient may permit the 
use of WIA Title I funds to employ participants to maintain the 
facility, if the organization that operates the facility is part of a 
program or activity that provides services to participants.
    (g) The exclusion of an individual from programs or activities 
limited by Federal statute or Executive Order to a certain class or 
classes of individuals of which the individual in question is not a 
member is not prohibited by this part.


Sec. 37.7  What specific discriminatory actions based on disability are 
prohibited by this part?

    (a) In providing any aid, benefits, services, or training under a 
WIA Title I--financially assisted program or activity, a recipient must 
not, directly or through contractual, licensing, or other arrangements, 
on the ground of disability:
    (1) Deny a qualified individual with a disability the opportunity 
to participate in or benefit from the aid, benefits, services, or 
training;
    (2) Afford a qualified individual with a disability an opportunity 
to participate in or benefit from the aid, benefits, services, or 
training that is not equal to that afforded others;
    (3) Provide a qualified individual with a disability with an aid, 
benefit, service or training that is not as effective in affording 
equal opportunity to obtain the same result, to gain the same benefit, 
or to reach the same level of achievement as that provided to others;
    (4) Provide different, segregated, or separate aid, benefits, 
services, or training to individuals with disabilities, or to any class 
of individuals with disabilities, unless such action is necessary to 
provide qualified individuals with disabilities with aid, benefits, 
services or training that are as effective as those provided to others;
    (5) Deny a qualified individual with a disability the opportunity 
to participate as a member of planning or advisory boards; or
    (6) Otherwise limit a qualified individual with a disability in 
enjoyment of any right, privilege, advantage, or opportunity enjoyed by 
others receiving any aid, benefit, service or training.
    (b) A recipient must not, directly or through contractual, 
licensing, or other arrangements, aid or perpetuate discrimination 
against qualified individuals with disabilities by providing 
significant assistance to an agency, organization, or person that 
discriminates on the basis of disability in providing any aid, 
benefits, services or training to registrants, applicants, or 
participants.
    (c) A recipient must not deny a qualified individual with a 
disability the opportunity to participate in WIA Title I--financially 
assisted programs or activities despite the existence of permissibly 
separate or different programs or activities.
    (d) A recipient must administer WIA Title I--financially assisted 
programs and activities in the most integrated setting appropriate to 
the needs of qualified individuals with disabilities.
    (e) A recipient must not, directly or through contractual, 
licensing, or other arrangements, use standards, procedures, criteria, 
or administrative methods:
    (1) That have the purpose or effect of subjecting qualified 
individuals with disabilities to discrimination on the ground of 
disability;
    (2) That have the purpose or effect of defeating or substantially 
impairing accomplishment of the objectives of the WIA Title I--
financially assisted program or activity with respect to individuals 
with disabilities; or
    (3) That perpetuate the discrimination of another entity if both 
entities are subject to common administrative control or are agencies 
of the same state.
    (f) In determining the site or location of facilities, a grant 
applicant or recipient must not make selections that have any of the 
following purposes or effects:
    (1) On the basis of disability:
    (i) Excluding qualified individuals from a WIA Title I-financially 
assisted program or activity;
    (ii) Denying them the benefits of such a program or activity; or
    (iii) Subjecting them to discrimination; or
    (2) Defeating or substantially impairing the accomplishment of the 
disability-related objectives of either:
    (i) The WIA Title I-financially assisted program or activity; or
    (ii) The nondiscrimination and equal opportunity provisions of WIA 
or this part.
    (g) A recipient, in the selection of contractors, must not use 
criteria that subject qualified individuals with disabilities to 
discrimination on the basis of disability.
    (h) A recipient must not administer a licensing or certification 
program in a manner that subjects qualified individuals with 
disabilities to discrimination on the basis of disability, nor may a 
recipient establish requirements for the programs or activities of 
licensees or certified entities that subject qualified individuals with 
disabilities to discrimination on the basis of disability. The programs 
or activities of entities that are licensed or certified by a recipient 
are not, themselves, covered by this part.
    (i) A recipient must not impose or apply eligibility criteria that 
screen out or tend to screen out an individual with a disability or any 
class of individuals with disabilities from fully and equally enjoying 
any aid, benefit, service, training, program, or activity, unless such 
criteria can be shown to be necessary for the provision of the aid, 
benefit, service, training, program, or activity being offered.
    (j) Nothing in this part prohibits a recipient from providing aid, 
benefits, services, training, or advantages to individuals with 
disabilities, or to a particular class of individuals with 
disabilities, beyond those required by this part.
    (k) A recipient must not place a surcharge on a particular 
individual

[[Page 61724]]

with a disability, or any group of individuals with disabilities, to 
cover the costs of measures, such as the provision of auxiliary aids or 
program accessibility, that are required to provide that individual or 
group with the nondiscriminatory treatment required by WIA Title I or 
this part.
    (l) A recipient must not exclude, or otherwise deny equal aid, 
benefits, services, training, programs, or activities to, an individual 
or entity because of the known disability of an individual with whom 
the individual or entity is known to have a relationship or 
association.
    (m) The exclusion of an individual without a disability from the 
benefits of a program limited by Federal statute or Executive Order to 
individuals with disabilities, or the exclusion of a specific class of 
individuals with disabilities from a program limited by Federal statute 
or Executive Order to a different class of individuals with 
disabilities, is not prohibited by this part.
    (n) This part does not require a recipient to provide any of the 
following to individuals with disabilities:
    (1) Personal devices, such as wheelchairs;
    (2) Individually prescribed devices, such as prescription 
eyeglasses or hearing aids;
    (3) Readers for personal use or study; or
    (4) Services of a personal nature, including assistance in eating, 
toileting, or dressing.
    (o)(1) Nothing in this part requires an individual with a 
disability to accept an accommodation, aid, benefit, service, training, 
or opportunity provided under WIA Title I or this part that such 
individual chooses not to accept.
    (2) Nothing in this part authorizes the representative or guardian 
of an individual with a disability to decline food, water, medical 
treatment, or medical services for that individual.


Sec. 37.8  What are a recipient's responsibilities regarding reasonable 
accommodation and reasonable modification for individuals with 
disabilities?

    (a) With regard to aid, benefits, services, training, and 
employment, a recipient must provide reasonable accommodation to 
qualified individuals with disabilities who are applicants, 
registrants, eligible applicants/registrants, participants, employees, 
or applicants for employment, unless providing the accommodation would 
cause undue hardship. See the definitions of ``reasonable 
accommodation'' and ``undue hardship'' in Sec. 37.4 of this part.
    (1) In those circumstances where a recipient believes that the 
proposed accommodation would cause undue hardship, the recipient has 
the burden of proving that the accommodation would result in such 
hardship.
    (2) The recipient must make the decision that the accommodation 
would cause such hardship only after considering all factors listed in 
the definition of ``undue hardship'' in Sec. 37.4. The decision must be 
accompanied by a written statement of the recipient's reasons for 
reaching that conclusion. The recipient must provide a copy of the 
statement of reasons to the individual or individuals who requested the 
accommodation.
    (3) If a requested accommodation would result in undue hardship, 
the recipient must take any other action that would not result in such 
hardship, but would nevertheless ensure that, to the maximum extent 
possible, individuals with disabilities receive the aid, benefits, 
services, training, or employment provided by the recipient.
    (b) A recipient must also make reasonable modifications in 
policies, practices, or procedures when the modifications are necessary 
to avoid discrimination on the basis of disability, unless making the 
modifications would fundamentally alter the nature of the service, 
program, or activity. See the definition of ``fundamental alteration'' 
in Sec. 37.4 of this part.
    (1) In those circumstances where a recipient believes that the 
proposed modification would fundamentally alter the program, activity, 
or service, the recipient has the burden of proving that the 
modification would result in such an alteration.
    (2) The recipient must make the decision that the modification 
would result in such an alteration only after considering all factors 
listed in the definition of ``fundamental alteration'' in Sec. 37.4. 
The decision must be accompanied by a written statement of the 
recipient's reasons for reaching that conclusion. The recipient must 
provide a copy of the statement of reasons to the individual or 
individuals who requested the modification.
    (3) If a modification would result in a fundamental alteration, the 
recipient must take any other action that would not result in such an 
alteration, but would nevertheless ensure that, to the maximum extent 
possible, individuals with disabilities receive the aid, benefits, 
services, training, or employment provided by the recipient.


Sec. 37.9  What are a recipient's responsibilities to communicate with 
individuals with disabilities?

    (a) Recipients must take appropriate steps to ensure that 
communications with beneficiaries, registrants, applicants, eligible 
applicants/registrants, participants, applicants for employment, 
employees, and members of the public who are individuals with 
disabilities, are as effective as communications with others.
    (b) A recipient must furnish appropriate auxiliary aids or services 
where necessary to afford individuals with disabilities an equal 
opportunity to participate in, and enjoy the benefits of, the WIA Title 
I--financially assisted program or activity. In determining what type 
of auxiliary aid or service is appropriate and necessary, such 
recipient must give primary consideration to the requests of the 
individual with a disability.
    (c) Where a recipient communicates by telephone with beneficiaries, 
registrants, applicants, eligible applicants/registrants, participants, 
applicants for employment, and/or employees, the recipient must use 
telecommunications devices for individuals with hearing impairments 
(TDDs/TTYs), or equally effective communications systems, such as 
telephone relay services.
    (d) A recipient must ensure that interested individuals, including 
individuals with visual or hearing impairments, can obtain information 
as to the existence and location of accessible services, activities, 
and facilities.
    (e)(1) A recipient must provide signage at a primary entrance to 
each of its inaccessible facilities, directing users to a location at 
which they can obtain information about accessible facilities. The 
signage provided must meet the most current standards prescribed by the 
General Services Administration under the Architectural Barriers Act at 
41 CFR 101-19.6. Alternative standards for the signage may be adopted 
when it is clearly evident that such alternative standards provide 
equivalent or greater access to the information.
    (2) The international symbol for accessibility must be used at each 
primary entrance of an accessible facility.
    (f) This section does not require a recipient to take any action 
that it can demonstrate would result in a fundamental alteration in the 
nature of a service, program, or activity.
    (1) In those circumstances where a recipient believes that the 
proposed action would fundamentally alter the WIA Title I--financially 
assisted

[[Page 61725]]

program, activity, or service, the recipient has the burden of proving 
that compliance with this section would result in such an alteration.
    (2) The decision that compliance would result in such an alteration 
must be made by the recipient after considering all resources available 
for use in the funding and operation of the WIA Title I--financially 
assisted program, activity, or service, and must be accompanied by a 
written statement of the reasons for reaching that conclusion.
    (3) If an action required to comply with this section would result 
in the fundamental alteration described in paragraph (f)(1) of this 
section, the recipient must take any other action that would not result 
in such an alteration, but would nevertheless ensure that, to the 
maximum extent possible, individuals with disabilities receive the 
benefits or services provided by the recipient.


Sec. 37.10  To what extent are employment practices covered by this 
part?

    (a) Discrimination on the ground of race, color, religion, sex, 
national origin, age, disability, or political affiliation or belief is 
prohibited in employment practices in the administration of, or in 
connection with:
    (1) Any WIA Title I-financially assisted program or activity; and
    (2) Any program or activity that is part of the One-Stop delivery 
system and is operated by a One-Stop partner listed in Section 121(b) 
of WIA, to the extent that the program or activity is being conducted 
as part of the One-Stop delivery system.
    (b) Employee selection procedures. In implementing this section, a 
recipient must comply with the Uniform Guidelines on Employee Selection 
Procedures, 41 CFR part 60-3.
    (c) Standards for employment-related investigations and reviews. In 
any investigation or compliance review, the Director must consider 
Equal Employment Opportunity Commission (EEOC) regulations, guidance 
and appropriate case law in determining whether a recipient has engaged 
in an unlawful employment practice.
    (d) As provided in Sec. 37.3(b) of this part, 29 CFR part 32, 
subparts B and C and Appendix A, which implement the requirements of 
Section 504 pertaining to employment practices and employment-related 
training, program accessibility, and reasonable accommodation, have 
been incorporated into this part by reference. Therefore, recipients 
must comply with the requirements set forth in those regulatory 
sections as well as the requirements listed in this part.
    (e) Recipients that are also employers, employment agencies, or 
other entities covered by Titles I and II of the ADA should be aware of 
obligations imposed by those titles. See 29 CFR part 1630 and 28 CFR 
part 35.
    (f) Similarly, recipients that are also employers covered by the 
anti-discrimination provision of the Immigration and Nationality Act 
should be aware of the obligations imposed by that provision. See 8 
U.S.C. 1324b, as amended.
    (g) This rule does not preempt consistent State and local 
requirements.


Sec. 37.11  To what extent are intimidation and retaliation prohibited 
by this part?

    (a) A recipient must not discharge, intimidate, retaliate, 
threaten, coerce or discriminate against any individual because the 
individual has:
    (1) Filed a complaint alleging a violation of Section 188 of WIA or 
this part;
    (2) Opposed a practice prohibited by the nondiscrimination and 
equal opportunity provisions of WIA or this part;
    (3) Furnished information to, or assisted or participated in any 
manner in, an investigation, review, hearing, or any other activity 
related to any of the following:
    (i) Administration of the nondiscrimination and equal opportunity 
provisions of WIA or this part;
    (ii) Exercise of authority under those provisions; or
    (iii) Exercise of privilege secured by those provisions; or
    (4) Otherwise exercised any rights and privileges under the 
nondiscrimination and equal opportunity provisions of WIA or this part.
    (b) The sanctions and penalties contained in Section 188(b) of WIA 
or this part may be imposed against any recipient that engages in any 
such retaliation or intimidation, or fails to take appropriate steps to 
prevent such activity.


Sec. 37.12  What Department of Labor office is responsible for 
administering this part?

    The Civil Rights Center (CRC), in the Office of the Assistant 
Secretary for Administration and Management, is responsible for 
administering and enforcing the nondiscrimination and equal opportunity 
provisions of WIA and this part, and for developing and issuing 
policies, standards, guidance, and procedures for effecting compliance.


Sec. 37.13  Who is responsible for providing interpretations of this 
part?

    The Director will make any rulings under, or interpretations of, 
the nondiscrimination and equal opportunity provisions of WIA or this 
part.


Sec. 37.14  Under what circumstances may the Secretary delegate the 
responsibilities of this part?

    (a) The Secretary may from time to time assign to officials of 
other departments or agencies of the Government (with the consent of 
such department or agency) responsibilities in connection with the 
effectuation of the nondiscrimination and equal opportunity provisions 
of WIA and this part (other than responsibility for final decisions 
under Sec. 37.112), including the achievement of effective coordination 
and maximum uniformity within the Department and within the executive 
branch of the Government in the application of the nondiscrimination 
and equal opportunity provisions of WIA or this part to similar 
programs and similar situations.
    (b) Any action taken, determination made, or requirement imposed by 
an official of another department or agency acting under an assignment 
of responsibility under this section has the same effect as if the 
action had been taken by the Director.


Sec. 37.15  What are the Director's responsibilities to coordinate with 
other civil rights agencies?

    (a) Whenever a compliance review or complaint investigation under 
this part reveals possible violation of one or more of the laws listed 
in paragraph (b) of this section, or of any other Federal civil rights 
law, that is not also a violation of the nondiscrimination and equal 
opportunity provisions of WIA or this part, the Director must attempt 
to notify the appropriate agency and provide it with all relevant 
documents and information.
    (b) This section applies to the following:
    (1) Executive Order 11246, as amended;
    (2) Section 503 of the Rehabilitation Act of 1973, as amended (29 
U.S.C. 793);
    (3) The affirmative action provisions of the Vietnam Era Veterans' 
Readjustment Assistance Act of 1974, as amended (38 U.S.C. 4212);
    (4) The Equal Pay Act of 1963, as amended (29 U.S.C. 206d);
    (5) Title VII of the Civil Rights Act of 1964, as amended (42 
U.S.C. 2000e et seq.);

[[Page 61726]]

    (6) The Age Discrimination in Employment Act of 1967, as amended 
(29 U.S.C. 621);
    (7) The Americans with Disabilities Act of 1990, as amended (42 
U.S.C. 12101 et seq.);
    (8) The anti-discrimination provision of the Immigration and 
Nationality Act, as amended (8 U.S.C. 1324b); and
    (9) Any other Federal civil rights law.


Sec. 37.16  What is this part's effect on a recipient's obligations 
under other laws, and what limitations apply?

    (a) Effect of State or local law or other requirements. The 
obligation to comply with the nondiscrimination and equal opportunity 
provisions of WIA or this part are not excused or reduced by any State 
or local law or other requirement that, on a prohibited ground, 
prohibits or limits an individual's eligibility to receive aid, 
benefits, services, or training; to participate in any WIA Title I--
financially assisted program or activity; to be employed by any 
recipient; or to practice any occupation or profession.
    (b) Effect of private organization rules. The obligation to comply 
with the nondiscrimination and equal opportunity provisions of WIA and 
this part is not excused or reduced by any rule or regulation of any 
private organization, club, league or association that, on a prohibited 
ground, prohibits or limits an individual's eligibility to participate 
in any WIA Title I--financially assisted program or activity to which 
this part applies.
    (c) Effect of possible future exclusion from employment 
opportunities. A recipient must not exclude any individual from, or 
restrict any individual's participation in, any program or activity 
based on the recipient's belief or concern that the individual will 
encounter limited future employment opportunities because of his or her 
race, color, religion, sex, national origin, age, disability, political 
affiliation or belief, or citizenship.

Subpart B--Recordkeeping and Other Affirmative Obligations of 
Recipients

Assurances


Sec. 37.20  What is a grant applicant's obligation to provide a written 
assurance?

    (a) (1) Each application for financial assistance under Title I of 
WIA, as defined in Sec. 37.4, must include the following assurance:

    As a condition to the award of financial assistance from the 
Department of Labor under Title I of WIA, the grant applicant 
assures that it will comply fully with the nondiscrimination and 
equal opportunity provisions of the following laws:
    Section 188 of the Workforce Investment Act of 1998 (WIA), which 
prohibits discrimination against all individuals in the United 
States on the basis of race, color, religion, sex, national origin, 
age, disability, political affiliation or belief, and against 
beneficiaries on the basis of either citizenship/status as a 
lawfully admitted immigrant authorized to work in the United States 
or participation in any WIA Title I--financially assisted program or 
activity;
    Title VI of the Civil Rights Act of 1964, as amended, which 
prohibits discrimination on the bases of race, color and national 
origin;
    Section 504 of the Rehabilitation Act of 1973, as amended, which 
prohibits discrimination against qualified individuals with 
disabilities;
    The Age Discrimination Act of 1975, as amended, which prohibits 
discrimination on the basis of age; and
    Title IX of the Education Amendments of 1972, as amended, which 
prohibits discrimination on the basis of sex in educational 
programs.
    The grant applicant also assures that it will comply with 29 CFR 
part 37 and all other regulations implementing the laws listed 
above. This assurance applies to the grant applicant's operation of 
the WIA Title I-financially assisted program or activity, and to all 
agreements the grant applicant makes to carry out the WIA Title I-
financially assisted program or activity. The grant applicant 
understands that the United States has the right to seek judicial 
enforcement of this assurance.

    (2) The assurance is considered incorporated by operation of law in 
the grant, cooperative agreement, contract or other arrangement whereby 
Federal financial assistance under Title I of the WIA is made 
available, whether or not it is physically incorporated in such 
document and whether or not there is a written agreement between the 
Department and the recipient, between the Department and the Governor, 
between the Governor and the recipient, or between recipients. The 
assurance also may be incorporated by reference in such grants, 
cooperative agreements, contracts, or other arrangements.
    (b) Continuing State programs. Each Strategic Five-Year State Plan 
submitted by a State to carry out a continuing WIA Title I-financially 
assisted program or activity must provide a statement that the WIA 
Title I-financially assisted program or activity is (or, in the case of 
a new WIA Title I-financially assisted program or activity, will be) 
conducted in compliance with the nondiscrimination and equal 
opportunity provisions of WIA and this part, as a condition to the 
approval of the Five-Year Plan and the extension of any WIA Title I 
financial assistance under the Plan. The State also must certify that 
it has developed and maintains a Methods of Administration under 
Sec. 37.54.


Sec. 37.21  How long will the recipient's obligation under the 
assurance last, and how broad is the obligation?

    (a) Where the WIA Title I financial assistance is intended to 
provide, or is in the form of, either personal property, real property, 
structures on real property, or interest in any such property or 
structures, the assurance will obligate the recipient, or (in the case 
of a subsequent transfer) the transferee, for the longer of:
    (1) The period during which the property is used either:
    (i) For a purpose for which WIA Title I financial assistance is 
extended; or
    (ii) For another purpose involving the provision of similar 
services or benefits; or
    (2) The period during which either:
    (i) The recipient retains ownership or possession of the property; 
or
    (ii) The transferee retains ownership or possession of the property 
without compensating the Departmental grantmaking agency for the fair 
market value of that ownership or possession.
    (b) In all other cases, the assurance will obligate the recipient 
for the period during which WIA Title I financial assistance is 
extended.


Sec. 37.22  How must covenants be used in connection with this part?

    (a) Where WIA Title I financial assistance is provided in the form 
of a transfer of real property, structures, or improvements on real 
property or structures, or interests in real property or structures, 
the instrument effecting or recording the transfer must contain a 
covenant assuring nondiscrimination and equal opportunity for the 
period described in Sec. 37.21.
    (b) Where no Federal transfer of real property or interest therein 
from the Federal Government is involved, but real property or an 
interest therein is acquired or improved under a program of WIA Title I 
financial assistance, the recipient must include the covenant described 
in paragraph (a) of this section in the instrument effecting or 
recording any subsequent transfer of such property.
    (c) When the property is obtained from the Federal Government, the 
covenant described in paragraph (a) of this section also may include a 
condition coupled with a right of reverter to the Department in the 
event of a breach of the covenant.

Equal Opportunity Officers


Sec. 37.23  Who must designate an Equal Opportunity Officer?

    Every recipient must designate an Equal Opportunity Officer (``EO 
Officer''), except small recipients and

[[Page 61727]]

service providers, as defined in Sec. 37.4. The responsibilities of 
small recipients and service providers are described in Secs. 37.27 and 
37.28.


Sec. 37.24  Who is eligible to serve as an Equal Opportunity Officer?

    A senior-level employee of the recipient should be appointed as the 
recipient's Equal Opportunity Officer. Depending upon the size of the 
recipient, the size of the recipient's WIA Title I-financially assisted 
programs or activities, and the number of applicants, registrants, and 
participants served by the recipient, the EO Officer may, or may not, 
be assigned other duties. However, he or she must not have other 
responsibilities or activities that create a conflict, or the 
appearance of a conflict, with the responsibilities of an EO Officer.


Sec. 37.25  What are the responsibilities of an Equal Opportunity 
Officer?

    An Equal Opportunity Officer is responsible for coordinating a 
recipient's obligations under this part. Those responsibilities 
include, but are not limited to:
    (a) Serving as the recipient's liaison with CRC;
    (b) Monitoring and investigating the recipient's activities, and 
the activities of the entities that receive WIA Title I funds from the 
recipient, to make sure that the recipient and its subrecipients are 
not violating their nondiscrimination and equal opportunity obligations 
under WIA Title I and this part;
    (c) Reviewing the recipient's written policies to make sure that 
those policies are nondiscriminatory;
    (d) Developing and publishing the recipient's procedures for 
processing discrimination complaints under Secs. 37.76 through 37.79, 
and making sure that those procedures are followed;
    (e) Reporting directly to the appropriate official (including, but 
not limited to, the State WIA Director, Governor's WIA Liaison, Job 
Corps Center Director, SESA Administrator, or LWIA grant recipient) 
about equal opportunity matters;
    (f) Undergoing training (at the recipient's expense) to maintain 
competency, if the Director requires him or her, and/or his or her 
staff, to do so; and
    (g) If applicable, overseeing the development and implementation of 
the recipient's Methods of Administration under Sec. 37.54.


Sec. 37.26  What are a recipient's obligations relating to the Equal 
Opportunity Officer?

    A recipient has the following obligations:
    (a) Making the Equal Opportunity Officer's name, and his or her 
position title, address, and telephone number (voice and TDD/TTY) 
public;
    (b) Ensuring that the EO Officer's identity and contact information 
appears on all internal and external communications about the 
recipient's nondiscrimination and equal opportunity programs;
    (c) Assigning sufficient staff and resources to the Equal 
Opportunity Officer, and providing him or her with the necessary 
support of top management, to ensure compliance with the 
nondiscrimination and equal opportunity provisions of WIA and this 
part; and
    (d) Ensuring that the EO Officer and his/her staff are afforded the 
opportunity to receive the training necessary and appropriate to 
maintain competency.


Sec. 37.27  What are the obligations of small recipients regarding 
Equal Opportunity Officers?

    Although small recipients do not need to designate Equal 
Opportunity Officers who have the full range of responsibilities listed 
above, they must designate an individual who will be responsible for 
developing and publishing of complaint procedures, and the processing 
of complaints, as explained in Secs. 37.76 through 37.79.


Sec. 37.28  What are the obligations of service providers regarding 
Equal Opportunity Officers?

    Service providers, as defined in Sec. 37.4, are not required to 
designate an Equal Opportunity Officer. The obligation for ensuring 
service provider compliance with the nondiscrimination and equal 
opportunity provisions of WIA and this part rests with the Governor or 
LWIA grant recipient, as specified in the State's Methods of 
Administration.

Notice and Communication


Sec. 37.29  What are a recipient's obligations to disseminate its equal 
opportunity policy?

    (a) A recipient must provide initial and continuing notice that it 
does not discriminate on any prohibited ground. This notice must be 
provided to:
    (1) Registrants, applicants, and eligible applicants/registrants;
    (2) Participants;
    (3) Applicants for employment and employees;
    (4) Unions or professional organizations that hold collective 
bargaining or professional agreements with the recipient;
    (5) Subrecipients that receive WIA Title I funds from the 
recipient; and
    (6) Members of the public, including those with impaired vision or 
hearing.
    (b) As provided in Sec. 37.9, the recipient must take appropriate 
steps to ensure that communications with individuals with disabilities 
are as effective as communications with others.


Sec. 37.30  What specific wording must the notice contain?

    The notice must contain the following specific wording:

Equal Opportunity Is the Law

    It is against the law for this recipient of Federal financial 
assistance to discriminate on the following bases:
    Against any individual in the United States, on the basis of 
race, color, religion, sex, national origin, age, disability, 
political affiliation or belief; and
    Against any beneficiary of programs financially assisted under 
Title I of the Workforce Investment Act of 1998 (WIA), on the basis 
of the beneficiary's citizenship/status as a lawfully admitted 
immigrant authorized to work in the United States, or his or her 
participation in any WIA Title I-financially assisted program or 
activity.
    The recipient must not discriminate in any of the following 
areas:
    Deciding who will be admitted, or have access, to any WIA Title 
I-financially assisted program or activity;
    Providing opportunities in, or treating any person with regard 
to, such a program or activity; or
    Making employment decisions in the administration of, or in 
connection with, such a program or activity.

What to Do If You Believe You Have Experienced Discrimination

    If you think that you have been subjected to discrimination 
under a WIA Title I-financially assisted program or
    Activity, you may file a complaint within 180 days from the date of 
the alleged violation with either:
    The recipient's Equal Opportunity Officer (or the person whom 
the recipient has designated for this purpose); or
    The Director, Civil Rights Center (CRC), U.S. Department of 
Labor, 200 Constitution Avenue NW, Room N-4123, Washington, DC 
20210.
    If you file your complaint with the recipient, you must wait 
either until the recipient issues a written Notice of Final Action, 
or until 90 days have passed (whichever is sooner), before filing 
with the Civil Rights Center (see address above).
    If the recipient does not give you a written Notice of Final 
Action within 90 days of the day on which you filed your complaint, 
you do not have to wait for the recipient to issue that Notice 
before filing a complaint with CRC. However, you must file your CRC 
complaint within 30 days of the 90-day deadline (in other words, 
within 120 days after the day on which you filed your complaint with 
the recipient).
    If the recipient does give you a written Notice of Final Action 
on your complaint,

[[Page 61728]]

but you are dissatisfied with the decision or resolution, you may 
file a complaint with CRC. You must file your CRC complaint within 
30 days of the date on which you received the Notice of Final 
Action.


Sec. 37.31  Where must the notice required by Secs. 37.29 and 37.30 be 
published?

    (a) At a minimum, the notice required by Secs. 37.29 and 37.30 must 
be:
    (1) Posted prominently, in reasonable numbers and places;
    (2) Disseminated in internal memoranda and other written or 
electronic communications;
    (3) Included in handbooks or manuals; and
    (4) Made available to each participant, and made part of each 
participant's file.
    (b) The notice must be provided in appropriate formats to 
individuals with visual impairments. Where notice has been given in an 
alternate format to a participant with a visual impairment, a record 
that such notice has been given must be made a part of the 
participant's file.


Sec. 37.32  When must the notice required by Secs. 37.29 and 37.30 be 
provided?

    The notice required by Secs. 37.29 and 37.30 must be initially 
provided within 90 days of the effective date of this part, or of the 
date this part first applies to the recipient, whichever comes later.


Sec. 37.33  Who is responsible for meeting the notice requirement with 
respect to service providers?

    The Governor or the LWIA grant recipient, as determined by the 
Governor and as provided in that State's Methods of Administration, 
will be responsible for meeting the notice requirement provided in 
Sections 37.29 and 37.30 with respect to a State's service providers.


Sec. 37.34  What type of notice must a recipient include in 
publications, broadcasts, and other communications?

    (a) Recipients must indicate that the WIA Title I-financially 
assisted program or activity in question is an ``equal opportunity 
employer/program,'' and that ``auxiliary aids and services are 
available upon request to individuals with disabilities,'' in 
recruitment brochures and other materials that are ordinarily 
distributed or communicated in written and/or oral form, electronically 
and/or on paper, to staff, clients, or the public at large, to describe 
programs financially assisted under Title I of WIA or the requirements 
for participation by recipients and participants. Where such materials 
indicate that the recipient may be reached by telephone, the materials 
must state the telephone number of the TDD/TTY or relay service used by 
the recipient, as required by Sec. 37.9(c).
    (b) Recipients that publish or broadcast program information in the 
news media must ensure that such publications and broadcasts state that 
the WIA Title I-financially assisted program or activity in question is 
an equal opportunity employer/program (or otherwise indicate that 
discrimination in the WIA Title I-financially assisted program or 
activity is prohibited by Federal law), and indicate that auxiliary 
aids and services are available upon request to individuals with 
disabilities.
    (c) A recipient must not communicate any information that suggests, 
by text or illustration, that the recipient treats beneficiaries, 
registrants, applicants, participants, employees or applicants for 
employment differently on any prohibited ground specified in Sec. 37.5, 
except as such treatment is otherwise permitted under Federal law or 
this part.


Sec. 37.35  What are a recipient's responsibilities to provide services 
and information in languages other than English?

    (a) A significant number or proportion of the population eligible 
to be served, or likely to be directly affected, by a WIA Title I-
financially assisted program or activity may need services or 
information in a language other than English in order to be effectively 
informed about, or able to participate in, the program or activity. 
Where such a significant number or proportion exists, a recipient must 
take the following actions:
    (1) Consider:
    (i) The scope of the program or activity, and
    (ii) The size and concentration of the population that needs 
services or information in a language other than English; and
    (2) Based on those considerations, take reasonable steps to provide 
services and information in appropriate languages. This information 
must include the initial and continuing notice required under 
Secs. 37.29 and 37.30, and all information that is communicated under 
Sec. 37.34.
    (b) In circumstances other than those described in paragraph (a) of 
this section, a recipient should nonetheless make reasonable efforts to 
meet the particularized language needs of limited-English-speaking 
individuals who seek services or information from the recipient.


Sec. 37.36  What responsibilities does a recipient have to communicate 
information during orientations?

    During each presentation to orient new participants, new employees, 
and/or the general public to its WIA Title I-financially assisted 
program or activity, a recipient must include a discussion of rights 
under the nondiscrimination and equal opportunity provisions of WIA and 
this part, including the right to file a complaint of discrimination 
with the recipient or the Director.

Data and Information Collection and Maintenance


Sec. 37.37  What are a recipient's responsibilities to collect and 
maintain data and other information?

    (a) The Director will not require submission of data that can be 
obtained from existing reporting requirements or sources, including 
those of other agencies, if the source is known and available to the 
Director.
    (b)(1) Each recipient must collect such data and maintain such 
records, in accordance with procedures prescribed by the Director, as 
the Director finds necessary to determine whether the recipient has 
complied or is complying with the nondiscrimination and equal 
opportunity provisions of WIA or this part. The system and format in 
which the records and data are kept must be designed to allow the 
Governor and CRC to conduct statistical or other quantifiable data 
analyses to verify the recipient's compliance with section 188 of WIA 
and this part.
    (2) Such records must include, but are not limited to, records on 
applicants, registrants, eligible applicants/registrants, participants, 
terminees, employees, and applicants for employment. Each recipient 
must record the race/ethnicity, sex, age, and where known, disability 
status, of every applicant, registrant, eligible applicant/registrant, 
participant, terminee, applicant for employment, and employee. Such 
information must be stored in a manner that ensures confidentiality, 
and must be used only for the purposes of recordkeeping and reporting; 
determining eligibility, where appropriate, for WIA Title I-financially 
assisted programs or activities; determining the extent to which the 
recipient is operating its WIA Title I-financially assisted program or 
activity in a nondiscriminatory manner; or other use authorized by law.
    (c) Each recipient must maintain, and submit to CRC upon request, a 
log of complaints filed with it that allege discrimination on the 
ground(s) of race, color, religion, sex, national origin, age, 
disability, political affiliation or belief,

[[Page 61729]]

citizenship, and/or participation in a WIA Title I-financially assisted 
program or activity. The log must include: the name and address of the 
complainant; the ground of the complaint; a description of the 
complaint; the date the complaint was filed; the disposition and date 
of disposition of the complaint; and other pertinent information. 
Information that could lead to identification of a particular 
individual as having filed a complaint must be kept confidential.
    (d) Where designation of individuals by race or ethnicity is 
required, the guidelines of the Office of Management and Budget must be 
used.
    (e) A service provider's responsibility for collecting and 
maintaining the information required under this section may be assumed 
by the Governor or LWIA grant recipient, as provided in the State's 
Methods of Administration.


Sec. 37.38  What information must grant applicants and recipients 
provide to CRC?

    In addition to the information which must be collected, maintained, 
and, upon request, submitted to CRC under Sec. 37.37:
    (a) Each grant applicant and recipient must promptly notify the 
Director when any administrative enforcement actions or lawsuits are 
filed against it alleging discrimination on the ground of race, color, 
religion, sex, national origin, age, disability, political affiliation 
or belief, and for beneficiaries only, citizenship or participation in 
a WIA Title I-financially assisted program or activity. This 
notification must include:
    (1) The names of the parties to the action or lawsuit;
    (2) The forum in which each case was filed; and
    (3) The relevant case numbers.
    (b) Each grant applicant (as part of its application) and recipient 
(as part of a compliance review conducted under Section 37.63, or 
monitoring activity carried out under Sec. 37.65) must provide the 
following information:
    (1) The name of any other Federal agency that conducted a civil 
rights compliance review or complaint investigation, and that found the 
grant applicant or recipient to be in noncompliance, during the two 
years before the grant application was filed or CRC began its 
examination; and
    (2) Information about any administrative enforcement actions or 
lawsuits that alleged discrimination on any protected basis, and that 
were filed against the grant applicant or recipient during the two 
years before the application or renewal application, compliance review, 
or monitoring activity. This information must include:
    (i) The names of the parties;
    (ii) The forum in which each case was filed; and
    (iii) The relevant case numbers.
    (c) At the discretion of the Director, grant applicants and 
recipients may be required to provide, in a timely manner, any 
information and data necessary to investigate complaints and conduct 
compliance reviews on grounds prohibited under the nondiscrimination 
and equal opportunity provisions of WIA and this part.
    (d) At the discretion of the Director, recipients may be required 
to provide, in a timely manner, the particularized information and/or 
to submit the periodic reports that the Director considers necessary to 
determine compliance with the nondiscrimination and equal opportunity 
provisions of WIA or this part.
    (e) At the discretion of the Director, grant applicants may be 
required to submit, in a timely manner, the particularized information 
necessary to determine whether or not the grant applicant, if 
financially assisted, would be able to comply with the 
nondiscrimination and equal opportunity provisions of WIA or this part.
    (f) Where designation of individuals by race or ethnicity is 
required, the guidelines of the Office of Management and Budget must be 
used.


Sec. 37.39  How long must grant applicants and recipients maintain the 
records required under this part?

    (a) Each recipient must maintain the following records for a period 
of not less than three years from the close of the applicable program 
year:
    (1) The records of applicants, registrants, eligible applicants/
registrants, participants, terminees, employees, and applicants for 
employment; and
    (2) Such other records as are required under this part or by the 
Director.
    (b) Records regarding complaints and actions taken on the 
complaints must be maintained for a period of not less than three years 
from the date of resolution of the complaint.


Sec. 37.40  What access to sources of information must grant applicants 
and recipients provide the Director?

    (a) Each grant applicant and recipient must permit access by the 
Director during normal business hours to its premises and to its 
employees and participants, to the extent that such individuals are on 
the premises during the course of the investigation, for the purpose of 
conducting complaint investigations, compliance reviews, monitoring 
activities associated with a State's development and implementation of 
a Methods of Administration, and inspecting and copying such books, 
records, accounts and other materials as may be pertinent to ascertain 
compliance with and ensure enforcement of the nondiscrimination and 
equal opportunity provisions of WIA or this part.
    (b) Asserted considerations of privacy or confidentiality are not a 
basis for withholding information from CRC and will not bar CRC from 
evaluating or seeking to enforce compliance with the nondiscrimination 
and equal opportunity provisions of WIA and this part.
    (c) Whenever any information that the Director asks a grant 
applicant or recipient to provide is in the exclusive possession of 
another agency, institution, or person, and that agency, institution, 
or person fails or refuses to furnish the information upon request, the 
grant applicant or recipient must certify to CRC that it has made 
efforts to obtain the information and that the agency, institution, or 
person has failed or refused to provide it. This certification must 
list the name and address of the agency, institution, or person that 
has possession of the information and the specific efforts the grant 
applicant or recipient made to obtain it.


Sec. 37.41  What responsibilities do grant applicants, recipients, and 
the Department have to maintain the confidentiality of the information 
collected?

    The identity of any individual who furnishes information relating 
to, or assisting in, an investigation or a compliance review, including 
the identity of any individual who files a complaint, must be kept 
confidential to the extent possible, consistent with a fair 
determination of the issues. An individual whose identity it is 
necessary to disclose must be protected from retaliation (see 
Sec. 37.11).


Sec. 37.42  What are a recipient's responsibilities under this part to 
provide universal access to WIA Title I-financially assisted programs 
and activities?

    Recipients must take appropriate steps to ensure that they are 
providing universal access to their WIA Title I-financially assisted 
programs and activities. These steps should involve reasonable efforts 
to include members of both sexes, various racial and ethnic groups, 
individuals with disabilities, and individuals in differing age groups. 
Such efforts may include, but are not limited to:
    (a) Advertising the recipient's programs and/or activities in 
media,

[[Page 61730]]

such as newspapers or radio programs, that specifically target various 
populations;
    (b) Sending notices about openings in the recipient's programs and/
or activities to schools or community service groups that serve various 
populations; and
    (c) Consulting with appropriate community service groups about ways 
in which the recipient may improve its outreach and service to various 
populations.

Subpart C--Governor's Responsibilities to Implement the 
Nondiscrimination and Equal Opportunity Requirements of WIA


Sec. 37.50  To whom does this subpart apply?

    This subpart applies to State Programs as defined in Sec. 37.4. 
However, the provisions of Sec. 37.52(b) do not apply to State 
Employment Security Agencies (SESAs), because the Governor's liability 
for any noncompliance on the part of a SESA cannot be waived.


Sec. 37.51  What are a Governor's oversight responsibilities?

    The Governor is responsible for oversight of all WIA Title I-
financially assisted State programs. This responsibility includes 
ensuring compliance with the nondiscrimination and equal opportunity 
provisions of WIA and this part, and negotiating, where appropriate, 
with a recipient to secure voluntary compliance when noncompliance is 
found under Sec. 37.95(b).


Sec. 37.52  To what extent may a Governor be liable for the actions of 
a recipient he or she has financially assisted under WIA Title I?

    (a) The Governor and the recipient are jointly and severally liable 
for all violations of the nondiscrimination and equal opportunity 
provisions of WIA and this part by the recipient, unless the Governor 
has:
    (1) Established and adhered to a Methods of Administration, under 
Section 37.54, designed to give reasonable guarantee of the recipient's 
compliance with such provisions;
    (2) Entered into a written contract with the recipient that clearly 
establishes the recipient's obligations regarding nondiscrimination and 
equal opportunity;
    (3) Acted with due diligence to monitor the recipient's compliance 
with these provisions; and
    (4) Taken prompt and appropriate corrective action to effect 
compliance.
    (b) If the Director determines that the Governor has demonstrated 
substantial compliance with the requirements of paragraph (a) of this 
section, he or she may recommend to the Secretary that the imposition 
of sanctions against the Governor be waived and that sanctions be 
imposed only against the noncomplying recipient.


Sec. 37.53  What are a Governor's oversight responsibilities regarding 
recipients' recordkeeping?

    The Governor must ensure that recipients collect and maintain 
records in a manner consistent with the provisions of Sec. 37.37 and 
any procedures prescribed by the Director under Sec. 37.37(b). The 
Governor must further ensure that recipients are able to provide data 
and reports in the manner prescribed by the Director.


Sec. 37.54  What are a Governor's obligations to develop and maintain a 
Methods of Administration?

    (a) (1) Each Governor must establish and adhere to a Methods of 
Administration for State programs as defined in Sec. 37.4. In those 
States in which one agency contains both SESA or unemployment insurance 
and WIA Title I-financially assisted programs, the Governor should 
develop a combined Methods of Administration.
    (2) Each Methods of Administration must be designed to give a 
reasonable guarantee that all recipients will comply, and are 
complying, with the nondiscrimination and equal opportunity provisions 
of WIA and this part.
    (b) The Methods of Administration must be:
    (1) In writing, addressing each requirement of Sec. 37.54(d) with 
narrative and documentation;
    (2) Reviewed and updated as required in Sec. 37.55; and
    (3) Signed by the Governor.
    (c) [Reserved]
    (d) At a minimum, each Methods of Administration must:
    (1) Describe how the State programs and recipients have satisfied 
the requirements of the following regulations:
    (i) Sections 37.20 through 37.22 (assurances);
    (ii) Sections 37.23 through 37.28 (Equal Opportunity Officers);
    (iii) Sections 37.29 through 37.36 (Notice and Communication);
    (iv) Sections 37.37 through 37.41 (Data and Information Collection 
and Maintenance);
    (v) Section 37.42 (Universal Access);
    (vi) Section 37.53 (Governor's Oversight Responsibilities Regarding 
Recipients' Recordkeeping); and
    (vii) Sections 37.76 through 37.79 (Complaint Processing 
Procedures); and
    (2) Include the following additional elements:
    (i) A system for determining whether a grant applicant, if 
financially assisted, and/or a training provider, if selected as 
eligible under section 122 of the Act, is likely to conduct its WIA 
Title I--financially assisted programs or activities in a 
nondiscriminatory way, and to comply with the regulations in this part;
    (ii) A system for periodically monitoring the compliance of 
recipients with WIA section 188 and this part, including a 
determination as to whether each recipient is conducting its WIA Title 
I--financially assisted program or activity in a nondiscriminatory way. 
At a minimum, each periodic monitoring review required by this 
paragraph must include:
    (A) A statistical or other quantifiable analysis of records and 
data kept by the recipient under Sec. 37.37, including analyses by 
race/ethnicity, sex, age, and disability status;
    (B) An investigation of any significant differences identified in 
paragraph (A) of this section in participation in the programs, 
activities, or employment provided by the recipient, to determine 
whether these differences appear to be caused by discrimination. This 
investigation must be conducted through review of the recipient's 
records and any other appropriate means; and
    (C) An assessment to determine whether the recipient has fulfilled 
its administrative obligations under section 188 or this part (for 
example, recordkeeping, notice and communication) and any duties 
assigned to it under the MOA;
    (iii) A review of recipient policy issuances to ensure they are 
nondiscriminatory;
    (iv) A system for reviewing recipients' job training plans, 
contracts, assurances, and other similar agreements to ensure that they 
are both nondiscriminatory and contain the required language regarding 
nondiscrimination and equal opportunity;
    (v) Procedures for ensuring that recipients comply with the 
requirements of Section 504 and this part with regard to individuals 
with disabilities;
    (vi) A system of policy communication and training to ensure that 
EO Officers and members of the recipients' staffs who have been 
assigned responsibilities under the nondiscrimination and equal 
opportunity provisions of WIA or this part are aware of and can 
effectively carry out these responsibilities;
    (vii) Procedures for obtaining prompt corrective action or, as 
necessary, applying sanctions when noncompliance is found; and

[[Page 61731]]

    (viii) Supporting documentation to show that the commitments made 
in the Methods of Administration have been and/or are being carried 
out. This supporting documentation includes, but is not limited to:
    (A) policy and procedural issuances concerning required elements of 
the Methods of Administration;
    (B) copies of monitoring instruments and instructions;
    (C) evidence of the extent to which nondiscrimination and equal 
opportunity policies have been developed and communicated as required 
by this part;
    (D) information reflecting the extent to which Equal Opportunity 
training, including training called for by Secs. 37.25(f) and 37.26(c), 
is planned and/or has been carried out;
    (E) reports of monitoring reviews and reports of follow-up actions 
taken under those reviews where violations have been found, including, 
where appropriate, sanctions; and
    (F) copies of any notices made under Secs. 37.29 through 37.36.


Sec. 37.55  When must the Governor carry out his or her obligations 
with regard to the Methods of Administration?

    (a) Within 180 days of either the date on which this interim final 
rule is effective, or the date on which the Department gives final 
approval to a State's Five-Year Plan, whichever is later, a Governor 
must:
    (1) Develop and implement a Methods of Administration consistent 
with the requirements of this part, and
    (2) Submit a copy of the Methods of Administration to the Director.
    (b) The Governor must promptly update the Methods of Administration 
whenever necessary, and must notify the Director in writing at the time 
that any such updates are made.
    (c) Every two years from the date on which the initial MOA is 
submitted to the Director under Sec. 37.55(a)(2), the Governor must 
review the Methods of Administration and the manner in which it has 
been implemented, and determine whether any changes are necessary in 
order for the State to comply fully and effectively with the 
nondiscrimination and equal opportunity provisions of WIA and this 
part.
    (1) If any such changes are necessary, the Governor must make the 
appropriate changes and submit them, in writing, to the Director.
    (2) If the Governor determines that no such changes are necessary, 
s/he must certify, in writing, to the Director that the Methods of 
Administration previously submitted continues in effect.

Subpart D--Compliance Procedures


Sec. 37.60  How does the Director evaluate compliance with the 
nondiscrimination and equal opportunity provisions of WIA and this 
part?

    From time to time, the Director may conduct pre-approval compliance 
reviews of grant applicants for, and post-approval compliance reviews 
of recipients of, WIA Title I financial assistance, to determine 
compliance with the nondiscrimination and equal opportunity provisions 
of WIA and this part. Reviews may focus on one or more specific 
programs or activities, or one or more issues within a program or 
activity. The Director may also investigate and resolve complaints 
alleging violations of the nondiscrimination and equal opportunity 
provisions of WIA and this part.


Sec. 37.61  Is there authority to issue subpoenas?

    Yes, section 183(c) of WIA authorizes the issuance of subpoenas. A 
subpoena may direct the individual named on the subpoena to take the 
following actions:
    (a) To appear:
    (1) Before a designated CRC representative,
    (2) At a designated time and place;
    (b) To give testimony; and/or
    (c) To produce documentary evidence.

The subpoena may require the appearance of witnesses, and the 
production of documents, from any place in the United States, at any 
designated time and place.

Compliance Reviews


Sec. 37.62  What are the authority and procedures for conducting pre-
approval compliance reviews?

    (a) As appropriate and necessary to ensure compliance with the 
nondiscrimination and equal opportunity provisions of WIA or this part, 
the Director may review any application, or class of applications, for 
Federal financial assistance under Title I of WIA, before and as a 
condition of their approval. The basis for such review may be the 
assurance specified in Sec. 37.20, information and reports submitted by 
the grant applicant under this part or guidance published by the 
Director, and any relevant records on file with the Department.
    (b) Where the Director determines that the grant applicant for 
Federal financial assistance under WIA Title I, if financially 
assisted, might not comply with the nondiscrimination and equal 
opportunity requirements of WIA or this part, the Director must:
    (1) Notify, in a timely manner, the Departmental grantmaking agency 
and the Assistant Attorney General of the findings of the pre-approval 
compliance review; and
    (2) Issue a Letter of Findings. The Letter of Findings must advise 
the grant applicant, in writing, of:
    (i) The preliminary findings of the review;
    (ii) The proposed remedial or corrective action under Section 37.94 
and the time within which the remedial or corrective action should be 
completed;
    (iii) Whether it will be necessary for the grant applicant to enter 
into a written Conciliation Agreement as described in Secs. 37.95 and 
37.97; and
    (iv) The opportunity to engage in voluntary compliance 
negotiations.
    (c) If a grant applicant has agreed to certain remedial or 
corrective actions in order to receive WIA Title I-funded Federal 
financial assistance, the Department must ensure that the remedial or 
corrective actions have been taken, or that a Conciliation Agreement 
has been entered into, before approving the award of further assistance 
under WIA Title I. If a grant applicant refuses or fails to take 
remedial or corrective actions or to enter into a Conciliation 
Agreement, as applicable, the Director must follow the procedures 
outlined in Secs. 37.98 through 37.100.


Sec. 37.63  What are the authority and procedures for conducting post-
approval compliance reviews?

    (a) The Director may initiate a post-approval compliance review of 
any recipient to determine compliance with the nondiscrimination and 
equal opportunity provisions of WIA and this part. The initiation of a 
post-approval review may be based on, but need not be limited to, the 
results of routine program monitoring by other Departmental or Federal 
agencies, or the nature or frequency of complaints.
    (b) A post-approval review must be initiated by a Notification 
Letter, advising the recipient of:
    (1) The practices to be reviewed;
    (2) The programs to be reviewed;
    (3) The information, records, and/or data to be submitted by the 
recipient within 30 days of the receipt of the Notification Letter, 
unless this time frame is modified by the Director; and
    (4) The opportunity, at any time before receipt of the Final 
Determination described in Secs. 37.99 and 37.100, to make a 
documentary or other submission that explains, validates or otherwise 
addresses the practices under review.

[[Page 61732]]

    (c) The Director may conduct post-approval reviews using such 
techniques as desk audits and on-site reviews.


Sec. 37.64  What procedures must the Director follow when CRC has 
completed a post-approval compliance review?

    (a) Where, as the result of a post-approval review, the Director 
has made a finding of noncompliance, he or she must issue a Letter of 
Findings. This Letter must advise the recipient, in writing, of:
    (1) The preliminary findings of the review;
    (2) Where appropriate, the proposed remedial or corrective action 
to be taken, and the time by which such action should be completed, as 
provided in Sec. 37.94;
    (3) Whether it will be necessary for the recipient to enter into a 
written assurance and/or Conciliation Agreement, as provided in 
Secs. 37.96 and 37.97; and
    (4) The opportunity to engage in voluntary compliance negotiations.
    (b) Where no violation is found, the recipient must be so informed 
in writing.


Sec. 37.65  What is the Director's authority to monitor the activities 
of a Governor?

    (a) The Director may periodically review the adequacy of the 
Methods of Administration established by a Governor, as well as the 
adequacy of the Governor's performance under the Methods of 
Administration, to determine compliance with the requirements of 
Secs. 37.50 through 37.55. The Director may review the Methods of 
Administration during a compliance review under Secs. 37.62 and 37.63, 
or at another time.
    (b) Nothing in this subpart limits or precludes the Director from 
monitoring directly any WIA Title I recipient or from investigating any 
matter necessary to determine a recipient's compliance with the 
nondiscrimination and equal opportunity provisions of WIA or this part.


Sec. 37.66  What happens if a recipient fails to submit requested data, 
records, and/or information, or fails to provide CRC with the required 
access?

    The Director may issue a Notice to Show Cause to a recipient 
failing to comply with the requirements of this part, where such 
failure results in the inability of the Director to make a finding. 
Such a failure includes, but is not limited to, the recipient's failure 
or refusal to:
    (a) Submit requested information, records, and/or data within 30 
days of receiving a Notification Letter;
    (b) Submit, in a timely manner, information, records, and/or data 
requested during a compliance review, complaint investigation, or other 
action to determine a recipient's compliance with the nondiscrimination 
and equal opportunity provisions of WIA or this part; or
    (c) Provide CRC access in a timely manner to a recipient's 
premises, records, or employees during a compliance review, as required 
in Sec. 37.40.


Sec. 37.67  What information must a Notice to Show Cause contain?

    (a) A Notice to Show Cause must contain:
    (1) A description of the violation and a citation to the pertinent 
nondiscrimination or equal opportunity provision(s) of WIA and this 
part;
    (2) The corrective action necessary to achieve compliance or, as 
may be appropriate, the concepts and principles of acceptable 
corrective or remedial action and the results anticipated; and
    (3) A request for a written response to the findings, including 
commitments to corrective action or the presentation of opposing facts 
and evidence.
    (b) A Notice to Show Cause must give the recipient 30 days to show 
cause why enforcement proceedings under the nondiscrimination and equal 
opportunity provisions of WIA or this part should not be instituted.


Sec. 37.68  How may a recipient show cause why enforcement proceedings 
should not be instituted?

    A recipient may show cause why enforcement proceedings should not 
be instituted by, among other means:
    (a) Correcting the violation(s) that brought about the Notice to 
Show Cause and entering into a written assurance and/or entering into a 
Conciliation Agreement, as appropriate, under Secs. 37.95 through 
37.97;
    (b) Demonstrating that CRC does not have jurisdiction; or
    (c) Demonstrating that the violation alleged by CRC did not occur.


Sec. 37.69  What happens if a recipient fails to show cause?

    If the recipient fails to show cause why enforcement proceedings 
should not be initiated, the Director must follow the enforcement 
procedures outlined in Secs. 37.99 and 37.100.

Complaint Processing Procedures


Sec. 37.70  Who may file a complaint concerning discrimination 
connected with WIA Title I?

    Any person who believes that either he or she, or any specific 
class of individuals, has been or is being subjected to discrimination 
prohibited by WIA or this part, may file a written complaint, either by 
him/herself or through a representative.


Sec. 37.71  Where may a complaint be filed?

    A complainant may file a complaint with either the recipient or the 
Director. Complaints filed with the Director should be sent to the 
address listed in the notice in Sec. 37.30.


Sec. 37.72  When must a complaint be filed?

    Generally, a complaint must be filed within 180 days of the alleged 
discrimination. However, for good cause shown, the Director may extend 
the filing time. The time period for filing is for the administrative 
convenience of CRC, and does not create a defense for the respondent.


Sec. 37.73  What information must a complaint contain?

    Each complaint must be filed in writing, and must contain the 
following information:
    (a) The complainant's name and address (or another means of 
contacting the complainant);
    (b) The identity of the respondent (the individual or entity that 
the complainant alleges is responsible for the discrimination);
    (c) A description of the complainant's allegations. This 
description must include enough detail to allow the Director or the 
recipient, as applicable, to decide whether:
    (i) CRC or the recipient, as applicable, has jurisdiction over the 
complaint;
    (ii) The complaint was filed in time; and
    (iii) The complaint has apparent merit; in other words, whether the 
complainant's allegations, if true, would violate any of the 
nondiscrimination and equal opportunity provisions of WIA or this part; 
and
    (d) The complainant's signature or the signature of the 
complainant's authorized representative.


Sec. 37.74  Are there any forms that a complainant may use to file a 
complaint?

    Yes. A complainant may file a complaint by completing and 
submitting CRC's Complaint Information and Privacy Act Consent Forms, 
which may be obtained either from the recipient's EO Officer, or from 
CRC at the address listed in the notice contained in Sec. 37.30.


Sec. 37.75  Is there a right of representation in the complaint 
process?

    Yes. Both the complainant and the respondent have the right to be 
represented by an attorney or other individual of their choice.

[[Page 61733]]

Sec. 37.76  What are the required elements of a recipient's 
discrimination complaint processing procedures?

    (a) The procedures that a recipient adopts and publishes must 
provide that the recipient will issue a written Notice of Final Action 
on discrimination complaints within 90 days of the date on which the 
complaint is filed.
    (b) At a minimum, the procedures must include the following 
elements:
    (1) Initial, written notice to the complainant that contains the 
following information:
    (i) An acknowledgment that the recipient has received the 
complaint, and
    (ii) Notice that the complainant has the right to be represented in 
the complaint process;
    (2) A written statement of the issue(s), provided to the 
complainant, that includes the following information:
    (i) A list of the issues raised in the complaint, and
    (ii) For each such issue, a statement whether the recipient will 
accept the issue for investigation or reject the issue, and the reasons 
for each rejection;
    (3) A period for fact-finding or investigation of the circumstances 
underlying the complaint;
    (4) A period during which the recipient attempts to resolve the 
complaint. The methods available to resolve the complaint must include 
alternative dispute resolution (ADR), as described in paragraph (c) of 
this section
    (5) A written Notice of Final Action, provided to the complainant 
within 90 days of the date on which the complaint was filed, that 
contains the following information:
    (i) For each issue raised in the complaint, a statement of either:
    (A) The recipient's decision on the issue and an explanation of the 
reasons underlying the decision, or
    (B) A description of the way the parties resolved the issue; and
    (ii) Notice that the complainant has a right to file a complaint 
with CRC within 30 days of the date on which the Notice of Final Action 
is issued if he or she is dissatisfied with the recipient's final 
action on the complaint.
    (c) The procedures the recipient adopts must provide for 
alternative dispute resolution (ADR). The recipient's ADR procedures 
must provide that:
    (1) The choice whether to use ADR or the customary process rests 
with the complainant;
    (2) A party to any agreement reached under ADR may file a complaint 
with the Director in the event the agreement is breached. In such 
circumstances, the following rules will apply:
    (i) The non-breaching party may file a complaint with the Director 
within 30 days of the date on which the non-breaching party learns of 
the alleged breach;
    (ii) The Director must evaluate the circumstances to determine 
whether the agreement has been breached. If he or she determines that 
the agreement has been breached, the complainant may file a complaint 
with CRC based upon his/her original allegation(s), and the Director 
will waive the time deadline for filing such a complaint.
    (3) If the parties do not reach an agreement under ADR, the 
complainant may file a complaint with the Director as described in 
Secs. 37.71 through 37.74.


Sec. 37.77  Who is responsible for developing and publishing complaint 
processing procedures for service providers?

    The Governor or the LWIA grant recipient, as provided in the 
State's Methods of Administration, must develop and publish, on behalf 
of its service providers, the complaint processing procedures required 
in Sec. 37.76. The service providers must then follow those procedures.


Sec. 37.78  Does a recipient have any special obligations in cases in 
which the recipient determines that it has no jurisdiction over a 
complaint?

    Yes. If a recipient determines that it does not have jurisdiction 
over a complaint, it must notify the complainant, in writing, 
immediately. This Notice of Lack of Jurisdiction must include:
    (a) A statement of the reasons for that determination, and
    (b) Notice that the complainant has a right to file a complaint 
with CRC within 30 days of the date on which the complainant receives 
the Notice.


Sec. 37.79  If, before the 90-day period has expired, a recipient 
issues a Notice of Final Action with which the complainant is 
dissatisfied, how long does the complainant have to file a complaint 
with the Director?

    If, during the 90-day period, the recipient issues its Notice of 
Final Action, but the complainant is dissatisfied with the recipient's 
decision on the complaint, the complainant or his/her representative 
may file a complaint with the Director within 30 days after the date on 
which the complainant receives the Notice.


Sec. 37.80  What happens if a recipient fails to issue a Notice of 
Final Action within 90 days of the date on which a complaint was filed?

    If, by the end of 90 days from the date on which the complainant 
filed the complaint, the recipient has failed to issue a Notice of 
Final Action, the complainant or his/her representative may file a 
complaint with the Director within 30 days of the expiration of the 90-
day period. In other words, the complaint must be filed with the 
Director within 120 days of the date on which the complaint was filed 
with the recipient.


Sec. 37.81  Are there any circumstances under which the Director may 
extend the time limit for filing a complaint with him or her?

    Yes. The Director may extend the 30-day time limit:
    (a) If the recipient does not include in its Notice of Final Action 
the required notice about the complainant's right to file with the 
Director, as described in Sec. 37.76(b)(5)(ii); or
    (b) For other good cause shown.
    The complainant has the burden of proving to the Director that the 
time limit should be extended.


Sec. 37.82  Does the Director accept every complaint for resolution?

    No. The Director must determine whether CRC will accept a 
particular complaint for resolution. For example, a complaint need not 
be accepted if:
    (a) It has not been timely filed;
    (b) CRC has no jurisdiction over the complaint; or
    (c) CRC has previously decided the matter.


Sec. 37.83  What happens if a complaint does not contain enough 
information?

    (a) If a complaint does not contain enough information, the 
Director must try to get the needed information from the complainant.
    (b) The Director may close the complainant's file, without 
prejudice, if:
    (1) The Director makes reasonable efforts to try to find the 
complainant, but is unable to reach him or her; or
    (2) The complainant does not provide the needed information to CRC 
within the time specified in the request for more information.
    (c) If the Director closes the complainant's file, he or she must 
send written notice to the complainant's last known address.


Sec. 37.84  What happens if CRC does not have jurisdiction over a 
complaint?

    If CRC does not have jurisdiction over a complaint, the Director 
must:
    (a) Notify the complainant and explain why the complaint falls 
outside the coverage of the nondiscrimination and equal opportunity 
provisions of WIA or this part; and
    (b) Where possible, transfer the complaint to an appropriate 
Federal, State or local authority.

[[Page 61734]]

Sec. 37.85  Are there any other circumstances in which the Director 
will send a complaint to another authority?

    Yes. The Director refers complaints to other agencies in the 
following circumstances:
    (a) Where the complaint alleges discrimination based on age, and 
the complaint falls within the jurisdiction of the Age Discrimination 
Act of 1975, as amended, then the Director must refer the complaint, in 
accordance with the provisions of 45 CFR 90.43(c)(3).
    (b) Where the only allegation in the complaint is a charge of 
individual employment discrimination that is covered both by WIA or 
this part and by one or more of the laws listed below, then the 
complaint is a ``joint complaint,'' and the Director may refer it to 
the EEOC for investigation and conciliation under the procedures 
described in 29 CFR part 1640 or 1691, as appropriate. The relevant 
laws are:
    (1) Title VII of the Civil Rights Act of 1964, as amended (42 
U.S.C. 2000e to 2000e-17);
    (2) The Equal Pay Act of 1963, as amended (29 U.S.C. 206(d));
    (3) The Age Discrimination in Employment Act of 1976, as amended 
(29 U.S.C. 621, et seq.); and
    (4) Title I of the Americans with Disabilities Act of 1990, as 
amended (42 U.S.C. 12101 et seq.).
    (c) Where the complaint alleges discrimination by an entity that 
operates a program or activity financially assisted by a Federal 
grantmaking agency other than the Department, but that participates as 
a partner in a One-Stop delivery system, the following procedures 
apply:
    (1) Where the complaint alleges discrimination on a basis that is 
prohibited both by Section 188 of WIA and by a civil rights law 
enforced by the Federal grantmaking agency, then CRC and the 
grantmaking agency have dual jurisdiction over the complaint, and the 
Director will refer the complaint to the grantmaking agency for 
processing. In such circumstances, the grantmaking agency's regulations 
will govern the processing of the complaint.
    (2) Where the complaint alleges discrimination on a basis that is 
prohibited by Section 188 of WIA, but not by any civil rights laws 
enforced by the Federal grantmaking agency, then CRC has sole 
jurisdiction over the complaint, and will retain the complaint and 
process it pursuant to this part. Such bases generally include 
religion, political affiliation or belief, citizenship, and/or 
participation in a WIA Title I-financially assisted program or 
activity.
    (d) Where the Director makes a referral under this section, he or 
she must notify the complainant and the respondent about the referral.


Sec. 37.86  What must the Director do if he or she determines that a 
complaint will not be accepted?

    If a complaint will not be accepted, the Director must notify the 
complainant, in writing, about that fact, and provide the complainant 
his/her reasons for making that determination.


Sec. 37.87  What must the Director do if he or she determines that a 
complaint will be accepted?

    If the Director accepts the complaint for resolution, he or she 
must notify the complainant, the respondent, and the grantmaking 
agency. The notice must:
    (a) State that the complaint will be accepted,
    (b) Identify the issues over which CRC has accepted jurisdiction; 
and
    (c) Explain the reasons why any issues were rejected.


Sec. 37.88  Who may contact CRC about a complaint?

    Both the complainant and the respondent, or their authorized 
representatives, may contact CRC for information about the complaint. 
The Director will determine what information, if any, about the 
complaint will be released.


Sec. 37.89  May the Director offer the parties to a complaint the 
option of mediation?

    Yes. The Director may offer the parties to a complaint the option 
of mediating the complaint. In such circumstances, the following rules 
apply:
    (a) Mediation is voluntary; the parties must consent before the 
mediation process will proceed.
    (b) The mediation will be conducted under guidance issued by the 
Director.
    (c) If the parties are unable to reach resolution of the complaint 
through mediation, CRC will investigate and process the complaint under 
Secs. 37.82 through 37.88 of this part.

Determinations


Sec. 37.90  If a complaint is investigated, what must the Director do 
when the investigation is completed?

    At the conclusion of the investigation of the complaint, the 
Director must take the following actions:
    (a) Determine whether there is reasonable cause to believe that the 
respondent has violated the nondiscrimination and equal opportunity 
provisions of WIA or this part; and
    (b) Notify the complainant, the respondent, and the grantmaking 
agency, in writing, of that determination.


Sec. 37.91  What notice must the Director issue if he or she finds 
reasonable cause to believe that a violation has taken place?

    If the Director finds reasonable cause to believe that the 
respondent has violated the nondiscrimination and equal opportunity 
provisions of WIA or this part, he or she must issue an Initial 
Determination. The Initial Determination must include:
    (a) The specific findings of the investigation;
    (b) The corrective or remedial action that the Department proposes 
to the respondent, under Sec. 37.94;
    (c) The time by which the respondent must complete the corrective 
or remedial action;
    (d) Whether it will be necessary for the respondent to enter into a 
written agreement under Sec. 37.95 and 37.96; and
    (e) The opportunity to engage in voluntary compliance negotiations.


Sec. 37.92  What notice must the Director issue if he or she finds no 
reasonable cause to believe that a violation has taken place?

    If the Director determines that there is no reasonable cause to 
believe that a violation has taken place, he or she must issue a Final 
Determination under Sec. 37.100. The Final Determination represents the 
Department's final agency action on the complaint.


Sec. 37.93  What happens if the Director finds that a violation has 
taken place, and the recipient fails or refuses to take the corrective 
action listed in the Initial Determination?

    Under such circumstances, the Department must take the actions 
described in Sec. 37.99 of this part.


Sec. 37.94  What corrective or remedial actions may be imposed where, 
after a compliance review or complaint investigation, the Director 
finds a violation of the nondiscrimination and equal opportunity 
provisions of WIA or this part?

    (a) A Letter of Findings, Notice to Show Cause, or Initial 
Determination, issued under Secs. 37.62 or 37.63, 37.66 and 37.67, or 
37.91 respectively, must include the specific steps the grant applicant 
or recipient, as applicable, must take within a stated period of time 
in order to achieve voluntary compliance.
    (b) Such steps must include:
    (1) Actions to end and/or redress the violation of the 
nondiscrimination and equal opportunity provisions of WIA or this part;
    (2) Make whole relief where discrimination has been identified, 
including, as appropriate, back pay (which must not accrue from a date 
more than 2 years before the filing of the complaint or the initiation 
of a

[[Page 61735]]

compliance review) or other monetary relief; hire or reinstatement; 
retroactive seniority; promotion; benefits or other services 
discriminatorily denied; and
    (3) Such other remedial or affirmative relief as the Director deems 
necessary, including but not limited to outreach, recruitment and 
training designed to ensure equal opportunity.
    (c) Monetary relief may not be paid from Federal funds.


Sec. 37.95  What procedures apply if the Director finds that a 
recipient has violated the nondiscrimination and equal opportunity 
provisions of WIA or this part?

    (a) Violations at State level. Where the Director has determined 
that a violation of the nondiscrimination and equal opportunity 
provisions of WIA or this part has occurred at the State level, he or 
she must notify the Governor through the issuance of a Letter of 
Findings, Notice to Show Cause or Initial Determination, as 
appropriate, under Sec. 37.62 or 37.63, 37.66 and 37.67, or 37.91, 
respectively. The Director may secure compliance with the 
nondiscrimination and equal opportunity provisions of WIA and this part 
through, among other means, the execution of a written assurance and/or 
Conciliation Agreement, under paragraph (d) of this section.
    (b) Violations below State level. Where the Director has determined 
that a violation of the nondiscrimination and equal opportunity 
provisions of WIA or this part has occurred below the State level, the 
Director must so notify the Governor and the violating recipient(s) 
through the issuance of a Letter of Findings, Notice to Show Cause or 
Initial Determination, as appropriate, under Secs. 37.62 or 37.63, 
37.66 and 37.67, or 37.91, respectively.
    (1) Such issuance must:
    (i) Direct the Governor to initiate negotiations immediately with 
the violating recipient(s) to secure compliance by voluntary means;
    (ii) Direct the Governor to complete such negotiations within 30 
days of the Governor's receipt of the Notice to Show Cause or within 45 
days of the Governor's receipt of the Letter of Findings or Initial 
Determination, as applicable. The Director reserves the right to enter 
into negotiations with the recipient at any time during the period. For 
good cause shown, the Director may approve an extension of time to 
secure voluntary compliance. The total time allotted to secure 
voluntary compliance must not exceed 60 days.
    (iii) Include a determination as to whether compliance must be 
achieved by:
    (A) Immediate correction of the violation(s) and written assurance 
that such violations have been corrected, under Sec. 37.96;
    (B) Entering into a written Conciliation Agreement under 
Sec. 37.97; or
    (C) Both.
    (2) If the Governor determines, at any time during the period 
described in paragraph (b)(1)(ii) of this section, that a recipient's 
compliance cannot be achieved by voluntary means, the Governor must so 
notify the Director.
    (3) If the Governor is able to secure voluntary compliance under 
paragraph (b)(1) of this section, he or she must submit to the Director 
for approval, as applicable:
    (i) Written assurance that the required action has been taken, as 
described in Sec. 37.96;
    (ii) A copy of the Conciliation Agreement, as described in 
Sec. 37.97; or
    (iii) Both.
    (4) The Director may disapprove any written assurance or 
Conciliation Agreement submitted for approval under paragraph (b)(3) of 
this section that fails to satisfy each of the applicable requirements 
provided in Secs. 37.96 or 37.97.
    (c) Violations in National Programs. Where the Director has 
determined that a violation of the nondiscrimination and equal 
opportunity provisions of WIA or this part has occurred in a National 
Program, he or she must notify the Federal grantmaking agency and the 
recipient by issuing a Letter of Findings, Notice to Show Cause, or 
Initial Determination, as appropriate, under Secs. 37.62 or 37.63, 
37.66 and 37.67, or 37.91, respectively. The Director may secure 
compliance with the nondiscrimination and equal opportunity provisions 
of WIA and this part through, among other means, the execution of a 
written assurance and/or Conciliation Agreement under Secs. 37.96 or 
37.97, as applicable.


Sec. 37.96  What are the required elements of a written assurance?

    A written assurance must provide documentation that the violations 
listed in the Letter of Findings, Notice to Show Cause or Initial 
Determination, as applicable, have been corrected.


Sec. 37.97  What are the required elements of a Conciliation Agreement?

    A Conciliation Agreement must:
    (a) Be in writing;
    (b) Address each cited violation;
    (c) Specify the corrective or remedial action to be taken within a 
stated period of time to come into compliance;
    (d) Provide for periodic reporting on the status of the corrective 
and remedial action;
    (e) Provide that the violation(s) will not recur; and
    (f) Provide for enforcement for a breach of the agreement.


Sec. 37.98  When will the Director conclude that compliance cannot be 
secured by voluntary means?

    The Director will conclude that compliance cannot be secured by 
voluntary means under the following circumstances:
    (a) The grant applicant or recipient fails or refuses to correct 
the violation(s) within the time period established by the Letter of 
Findings, Notice to Show Cause or Initial Determination; or
    (b) The Director has not approved an extension of time for 
agreement on voluntary compliance, under Sec. 37.95(b)(1)(ii), and he 
or she either:
    (1) Has not been notified, under Sec. 37.95(b)(3), that the grant 
applicant or recipient has agreed to voluntary compliance;
    (2) Has disapproved a written assurance or Conciliation Agreement, 
under Sec. 37.95(b)(4); or
    (3) Has received notice from the Governor, under Sec. 37.95(b)(2), 
that the grant applicant or recipient will not comply voluntarily.


Sec. 37.99  If the Director concludes that compliance cannot be secured 
by voluntary means, what actions must he or she take?

    If the Director concludes that compliance cannot be secured by 
voluntary means, he or she must either:
    (a) Issue a Final Determination;
    (b) Refer the matter to the Attorney General with a recommendation 
that an appropriate civil action be instituted; or
    (c) Take such other action as may be provided by law.


Sec. 37.100  What information must a Final Determination contain?

    A Final Determination must contain the following information:
    (a) A statement of the efforts made to achieve voluntary 
compliance, and a statement that those efforts have been unsuccessful;
    (b) A statement of those matters upon which the grant applicant or 
recipient and CRC continue to disagree;
    (c) A list of any modifications to the findings of fact or 
conclusions that were set forth in the Initial Determination, Notice to 
Show Cause or Letter of Findings;
    (d) A statement of the grant applicant's or recipient's liability, 
and, if appropriate, the extent of that liability;
    (e) A description of the corrective or remedial actions that the 
grant applicant or recipient must take to come into compliance;

[[Page 61736]]

    (f) A notice that if the grant applicant or recipient fails to come 
into compliance within 10 days of the date on which it receives the 
Final Determination, one or more of the following consequences may 
result:
    (1) After the grant applicant or recipient is given the opportunity 
for a hearing, its WIA Title I funds may be terminated, discontinued, 
or withheld in whole or in part, or its application for such funds may 
be denied, as appropriate;
    (2) The Secretary of Labor may refer the case to the Department of 
Justice with a request to file suit against the grant applicant or 
recipient; or
    (3) the Secretary may take any other action against the grant 
applicant or recipient that is provided by law;
    (g) A notice of the grant applicant's or recipient's right to 
request a hearing under the procedures described in Secs. 37.112 
through 37.115; and
    (h) A determination of the Governor's liability, if any, under 
Sec. 37.52.


Sec. 37.101  Whom must the Director notify of a finding of 
noncompliance?

    Where a compliance review or complaint investigation results in a 
finding of noncompliance, the Director must notify:
    (a) The grant applicant or recipient;
    (b) The grantmaking agency; and
    (c) Tthe Assistant Attorney General.

Breaches of Conciliation Agreements


Sec. 37.102  What happens if a grant applicant or recipient breaches a 
Conciliation Agreement?

    When it becomes known to the Director that a Conciliation Agreement 
has been breached, the Director may issue a Notification of Breach of 
Conciliation Agreement.


Sec. 37.103  Whom must the Director notify about a breach of a 
Conciliation Agreement?

    The Director must send a Notification of Breach of Conciliation 
Agreement to the Governor, the grantmaking agency, and/or other 
party(ies) to the Conciliation Agreement, as applicable.


Sec. 37.104  What information must a Notification of Breach of 
Conciliation Agreement contain?

    A Notification of Breach of Conciliation Agreement must:
    (a) Specify any efforts made to achieve voluntary compliance, and 
indicate that those efforts have been unsuccessful;
    (b) Identify the specific provisions of the Conciliation Agreement 
violated;
    (c) Determine liability for the violation and the extent of the 
liability;
    (d) Indicate that failure of the violating party to come into 
compliance within 10 days of the receipt of the Notification of Breach 
of Conciliation Agreement may result, after opportunity for a hearing, 
in the termination or denial of the grant, or discontinuation of 
assistance, as appropriate, or in referral to the Department of Justice 
with a request from the Department to file suit;
    (e) Advise the violating party of the right to request a hearing, 
and reference the applicable procedures in Section 37.111; and
    (f) Include a determination as to the Governor's liability, if any, 
in accordance with the provisions of Sec. 37.52.


Sec. 37.105  Whom must the Director notify if enforcement action under 
a Notification of Breach of Conciliation Agreement is commenced?

    In such circumstances, the Director must notify:
    (a) The grantmaking agency; and
    (b) The Governor, recipient or grant applicant, as applicable.

Subpart E--Federal Procedures For Effecting Compliance


Sec. 37.110  What enforcement procedures does the Department follow to 
effect compliance with the nondiscrimination and equal opportunity 
provisions of WIA and this part?

    (a) Sanctions; judicial enforcement. If compliance has not been 
achieved after issuance of a Final Determination under Secs. 37.99 and 
37.100, or a Notification of Breach of Conciliation Agreement under 
Secs. 37.102 through 37.105, the Secretary may:
    (1) After opportunity for a hearing, suspend, terminate, deny or 
discontinue the WIA Title I financial assistance, in whole or in part;
    (2) Refer the matter to the Attorney General with a recommendation 
that an appropriate civil action be instituted; or
    (3) Take such action as may be provided by law.
    (b) Deferral of new grants. When proceedings under Sec. 37.111 have 
been initiated against a particular recipient, the Department may defer 
action on that recipient's applications for new WIA Title I financial 
assistance until a Final Decision under Sec. 37.112 has been rendered. 
Deferral is not appropriate when WIA Title I financial assistance is 
due and payable under a previously approved application.
    (1) New WIA Title I financial assistance includes all assistance 
for which an application or approval, including renewal or continuation 
of existing activities, or authorization of new activities, is required 
during the deferral period.
    (2) New WIA Title I financial assistance does not include 
assistance approved before the beginning of proceedings under 
Sec. 37.111, or increases in funding as a result of changed 
computations of formula awards.


Sec. 37.111  What hearing procedures does the Department follow?

    (a) Notice of opportunity for hearing. As part of a Final 
Determination, or a Notification of Breach of a Conciliation Agreement, 
the Director must include, and serve on the grant applicant or 
recipient (by certified mail, return receipt requested), a notice of 
opportunity for hearing.
    (b) Complaint; request for hearing; answer. (1) In the case of 
noncompliance that cannot be voluntarily resolved, the Final 
Determination or Notification of Breach of Conciliation Agreement is 
considered the Department's formal complaint.
    (2) To request a hearing, the grant applicant or recipient must 
file a written answer to the Final Determination or Notification of 
Breach of Conciliation Agreement, and a copy of the Final Determination 
or Notification of Breach of Conciliation Agreement, with the Office of 
the Administrative Law Judges, 800 K Street N.W., Suite 400, 
Washington, DC 20001.
    (i) The answer must be filed within 30 days of the date of receipt 
of the Final Determination or Notification of Breach of Conciliation 
Agreement.
    (ii) A request for hearing must be set forth in a separate 
paragraph of the answer.
    (iii) The answer must specifically admit or deny each finding of 
fact in the Final Determination or Notification of Breach of 
Conciliation Agreement. Where the grant applicant or recipient does not 
have knowledge or information sufficient to form a belief, the answer 
may so state and the statement will have the effect of a denial. 
Findings of fact not denied are considered admitted. The answer must 
separately state and identify matters alleged as affirmative defenses, 
and must also set forth the matters of fact and law relied on by the 
grant applicant or recipient.
    (3) The grant applicant or recipient must simultaneously serve a 
copy of its filing on the Office of the Solicitor, Civil Rights 
Division, Room N-2464, U.S. Department of Labor, 200 Constitution 
Avenue N.W., Washington DC 20210.
    (4) (i) The failure of a grant applicant or recipient to request a 
hearing under this paragraph, or to appear at a hearing for which a 
date has been set, waives the right to a hearing; and
    (ii) Whenever a hearing is waived, all allegations of fact 
contained in the Final Determination or Notification of Breach of 
Conciliation Agreement are

[[Page 61737]]

considered admitted, and the Final Determination or Notification of 
Breach of Conciliation Agreement becomes the Final Decision of the 
Secretary as of the day following the last date by which the grant 
applicant or recipient was required to request a hearing or was to 
appear at a hearing. See Sec. 37.112(b)(3).
    (c) Time and place of hearing. Hearings will be held at a time and 
place ordered by the Administrative Law Judge upon reasonable notice to 
all parties and, as appropriate, the complainant. In selecting a place 
for the hearing, due regard must be given to the convenience of the 
parties, their counsel, and witnesses, if any.
    (d) Judicial process; evidence. (1) The Administrative Law Judge 
may use judicial process to secure the attendance of witnesses and the 
production of documents authorized by Section 9 of the Federal Trade 
Commission Act (15 U.S.C. 49).
    (2) Evidence. In any hearing or administrative review conducted 
under this part, evidentiary matters will be governed by the standards 
and principles set forth in the Uniform Rules of Evidence issued by the 
Department of Labor's Office of Administrative Law Judges, 29 CFR part 
18.


Sec. 37.112  What procedures for initial and final decisions does the 
Department follow?

    (a) Initial Decision. After the hearing, the Administrative Law 
Judge must issue an initial decision and order, containing findings of 
fact and conclusions of law. The initial decision and order must be 
served on all parties by certified mail, return receipt requested.
    (b) Exceptions; Final Decision. (1) Final decision after a hearing. 
The initial decision and order becomes the Final Decision and Order of 
the Secretary unless exceptions are filed by a party or, in the absence 
of exceptions, the Secretary serves notice that he or she will review 
the decision.
    (i) A party dissatisfied with the initial decision and order may, 
within 45 days of receipt, file with the Secretary and serve on the 
other parties to the proceedings and on the Administrative Law Judge, 
exceptions to the initial decision and order or any part thereof.
    (ii) Upon receipt of exceptions, the Administrative Law Judge must 
index and forward the record and the initial decision and order to the 
Secretary within three days of such receipt.
    (iii) A party filing exceptions must specifically identify the 
finding or conclusion to which exception is taken. Any exception not 
specifically urged is waived.
    (iv) Within 45 days of the date of filing such exceptions, a reply, 
which must be limited to the scope of the exceptions, may be filed and 
served by any other party to the proceeding.
    (v) Requests for extensions for the filing of exceptions or replies 
must be received by the Secretary no later than 3 days before the 
exceptions or replies are due.
    (vi) If no exceptions are filed, the Secretary may, within 30 days 
of the expiration of the time for filing exceptions, on his or her own 
motion serve notice on the parties that the Secretary will review the 
decision.
    (vii) Final Decision and Order.
    (A) Where exceptions have been filed, the initial decision and 
order of the Administrative Law Judge becomes the Final Decision and 
Order of the Secretary unless the Secretary, within 30 days of the 
expiration of the time for filing exceptions and replies, has notified 
the parties that the case is accepted for review.
    (B) Where exceptions have not been filed, the initial decision and 
order of the Administrative Law Judge becomes the Final Decision and 
Order of the Secretary unless the Secretary has served notice on the 
parties that he or she will review the decision, as provided in 
paragraph (b)(1)(vi) of this section.
    (viii) Any case reviewed by the Secretary under this paragraph must 
be decided within 180 days of the notification of such review. If the 
Secretary fails to issue a Final Decision and Order within the 180-day 
period, the initial decision and order of the Administrative Law Judge 
becomes the Final Decision and Order of the Secretary.
    (2) Final Decision where a hearing is waived.
    (i) If, after issuance of a Final Determination under Sec. 37.100 
or Notification of Breach of Conciliation Agreement under Sec. 37.104, 
voluntary compliance has not been achieved within the time set by this 
part and the opportunity for a hearing has been waived as provided for 
in Sec. 37.111(b)(4), the Final Determination or Notification of Breach 
of Conciliation Agreement becomes the Final Decision of the Secretary.
    (ii) When a Final Determination or Notification of Breach of 
Conciliation Agreement becomes the Final Decision of the Secretary, the 
Secretary may, within 45 days, issue an order terminating or denying 
the grant or continuation of assistance or imposing other appropriate 
sanctions for the grant applicant or recipient's failure to comply with 
the required corrective and/or remedial actions, or referring the 
matter to the Attorney General for further enforcement action.
    (3) Final agency action. A Final Decision and Order issued under 
Sec. 37.112(b) constitutes final agency action.


Sec. 37.113  What procedure does the Department follow to suspend, 
terminate, withhold, deny or discontinue WIA Title I financial 
assistance?

    Any action to suspend, terminate, deny or discontinue WIA Title I 
financial assistance must be limited to the particular political 
entity, or part thereof, or other recipient (or grant applicant) as to 
which the finding has been made, and must be limited in its effect to 
the particular program, or part thereof, in which the noncompliance has 
been found. No order suspending, terminating, denying or discontinuing 
WIA Title I financial assistance will become effective until:
    (a) The Director has issued a Final Determination under Sec. 37.100 
or Notification of Breach of Conciliation Agreement under Sec. 37.104;
    (b) There has been an express finding on the record, after 
opportunity for a hearing, of failure by the grant applicant or 
recipient to comply with a requirement imposed by or under the 
nondiscrimination and equal opportunity provisions of WIA or this part;
    (c) A Final Decision has been issued by the Secretary, the 
Administrative Law Judge's decision and order has become the Final 
Decision of the Secretary, or the Final Determination or Notification 
of Conciliation Agreement has been deemed the Final Decision of the 
Secretary, under Sec. 37.112(b); and
    (d) The expiration of 30 days after the Secretary has filed, with 
the committees of Congress having legislative jurisdiction over the 
program involved, a full written report of the circumstances and 
grounds for such action.


Sec. 37.114  What procedure does the Department follow to distribute 
WIA Title I financial assistance to an alternate recipient?

    When the Department withholds funds from a recipient or grant 
applicant under these regulations, the Secretary may disburse the 
withheld funds directly to an alternate recipient. In such case, the 
Secretary will require any alternate recipient to demonstrate:
    (a) The ability to comply with these regulations; and
    (b) The ability to achieve the goals of the nondiscrimination and 
equal opportunity provisions of WIA.

[[Page 61738]]

Sec. 37.115  What procedures does the Department follow for post-
termination proceedings?

    (a) A grant applicant or recipient adversely affected by a Final 
Decision and Order issued under Sec. 37.112(b) will be restored, where 
appropriate, to full eligibility to receive WIA Title I financial 
assistance if the grant applicant or recipient satisfies the terms and 
conditions of the Final Decision and Order and brings itself into 
compliance with the nondiscrimination and equal opportunity provisions 
of WIA and this part.
    (b) A grant applicant or recipient adversely affected by a Final 
Decision and Order issued under Sec. 37.112(b) may at any time petition 
the Director to restore its eligibility to receive WIA Title I 
financial assistance. A copy of the petition must be served on the 
parties to the original proceeding that led to the Final Decision and 
Order. The petition must be supported by information showing the 
actions taken by the grant applicant or recipient to bring itself into 
compliance. The grant applicant or recipient has the burden of 
demonstrating that it has satisfied the requirements of paragraph (a) 
of this section. While proceedings under this section are pending, 
sanctions imposed by the Final Decision and Order under Sec. 37.112(b) 
(1) and (2) must remain in effect.
    (c) The Director must issue a written decision on the petition for 
restoration.
    (1) If the Director determines that the grant applicant or 
recipient has not brought itself into compliance, he or she must issue 
a decision denying the petition.
    (2) Within 30 days of its receipt of the Director's decision, the 
recipient or grant applicant may file a petition for review of the 
decision by the Secretary, setting forth the grounds for its objection 
to the Director's decision.
    (3) The petition must be served on the Director and on the Office 
of the Solicitor, Civil Rights Division.
    (4) The Director may file a response to the petition within 14 
days.
    (5) The Secretary must issue the final agency decision denying or 
granting the recipient's or grant applicant's request for restoration 
to eligibility.

[FR Doc. 99-28202 Filed 11-10-99; 8:45 am]
BILLING CODE 4510-23-P