[Federal Register Volume 73, Number 159 (Friday, August 15, 2008)]
[Proposed Rules]
[Pages 48086-48095]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-18869]



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Part IV





Department of Labor





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Veterans' Employment and Training Service



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20 CFR Part 1010



Priority of Service for Covered Persons; Proposed Rule

  Federal Register / Vol. 73, No. 159 / Friday, August 15, 2008 / 
Proposed Rules  

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DEPARTMENT OF LABOR

Veterans' Employment and Training Service

20 CFR Part 1010

RIN 1293-AA15


Priority of Service for Covered Persons

AGENCY: Veterans' Employment and Training Service, Labor.

ACTION: Notice of Proposed Rulemaking; request for comments.

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SUMMARY: The Veterans' Employment and Training Service (VETS) of the 
Department of Labor (Department or DOL) is proposing a rule to 
implement priority of service in qualified job training programs 
prescribed in section 2(a)(1) of the Jobs for Veterans Act (JVA). The 
Department undertakes this rulemaking in accordance with section 605 of 
the Veterans' Benefits, Health Care, and Information Technology Act of 
2006, which requires the Department to implement priority of service 
via regulation. The Department seeks comments on this proposed rule.

DATES: To ensure consideration, comments must be received on or before 
October 14, 2008. Comments received after that date will be considered 
to the extent possible.

ADDRESSES: You may submit comments, identified by Regulatory 
Information Number (RIN) 1293-AA15, by either one of the two following 
methods:
     Federal e-Rulemaking Portal: www.regulations.gov. Follow 
the Web site instructions for submitting comments.
     Mail/Hand Delivery/Courier: Written comments, disk, and 
CD-ROM submissions may be mailed or delivered by hand delivery/courier 
to Gordon Burke, Director, Office of Grants and Transition Programs, 
U.S. Department of Labor, 200 Constitution Avenue, NW., Room S-1312, 
Washington, DC 20210.
    Instructions: Please submit one copy of your comments by only one 
method. All submissions received must include the agency name, as well 
as RIN 1293-AA15.
    Please be advised that the Department will post all comments 
received on www.regulations.gov without making any change to the 
comments, including any personal information provided. The 
www.regulations.gov Web site is the Federal e-rulemaking portal and all 
comments posted there are available and accessible to the public. 
Therefore, the Department recommends that commenters safeguard their 
personal information such as Social Security Numbers, personal 
addresses, telephone numbers, and e-mail addresses included in their 
comments. It is the responsibility of the commenter to safeguard his or 
her information.
    Also, please note that due to security concerns, postal mail 
delivery in Washington, DC, may be delayed. Therefore, in order to 
ensure that comments receive full consideration, the Department 
encourages the public to submit comments via the Internet as indicated 
above.
    Docket: The Department will make all the comments it receives 
available for public inspection during normal business hours at the 
above address. If you need assistance to review the comments, the 
Department will provide you with appropriate aids such as readers or 
print magnifiers. The Department will make copies of the proposed rule 
available, upon request, in large print or electronic file on computer 
disk. The Department will consider providing the proposed rule in other 
formats upon request. To schedule an appointment to review the comments 
and/or obtain the proposed rule in an alternate format, contact the 
office of Gordon Burke at (202) 693-4740 (VOICE) (this is not a toll-
free number) or (202) 693-4760 (TTY/TDD). You may also contact Mr. 
Burke's office at the address listed above.

FOR FURTHER INFORMATION CONTACT: Pamela Langley, Chief, Division of 
Grant Programs, Veterans' Employment and Training Service, U.S. 
Department of Labor, 200 Constitution Avenue, NW., Room S-1312, 
Washington, DC 20210, [email protected], (202) 693-4708 (this is 
not a toll-free number).

SUPPLEMENTARY INFORMATION: The preamble to this proposed rule is 
organized as follows:

I. Background--provides a brief description of the development of 
the proposed rule.
II. Section-by-Section Review of the Proposed Rule--summarizes and 
discusses proposed regulations.
III. Administrative Information--sets forth the applicable 
regulatory requirements.

I. Background

    On November 7, 2002, President Bush signed the Jobs for Veterans 
Act, Public Law 107-288 (Nov. 7, 2002). One provision of the JVA, 
codified at 38 U.S.C. Section 4215, creates a priority of service 
requirement for covered persons in Department qualified job training 
programs. Since the passage of the Act, the Department has provided 
policy guidance to the workforce investment system regarding the 
implementation of priority of service, including the Department's 
Employment and Training Administration (ETA) issuance of Training and 
Employment Guidance Letter (TEGL) No. 05-03 in September 2003. TEGL No. 
05-03 applies to a large majority of the job training programs impacted 
by priority of service. In December 2006, President Bush signed the 
Veterans' Benefits, Health Care, and Information Technology Act of 2006 
(Pub. L. 109-461). That law requires the Department to issue 
regulations regarding the implementation of priority of service. The 
purpose of this notice is to propose those regulations.
    The JVA provides that veterans and eligible spouses of veterans (as 
defined in Sec.  1010.110) are identified as covered persons and are 
entitled to priority over non-covered persons for the receipt of 
employment, training, and placement services provided under new or 
existing qualified job training programs, notwithstanding any other 
provision of the law. At 38 U.S.C. 4215(a)(2), qualified job training 
programs are defined as ``any workforce preparation, development or 
delivery program or service that is directly funded, in whole or in 
part, by the Department.'' Currently, such programs are offered by many 
agencies within the Department, including, but not limited to, ETA, 
VETS, the Women's Bureau, and the Office of Disability Employment 
Policy (ODEP).
    JVA, and the priority of service it requires, is an important 
acknowledgment of the sacrifices of the men and women who have served 
in the U.S. armed forces. The Department's strategic vision for 
priority of service to covered persons honors veterans and eligible 
spouses of veterans as our ``heroes at home'' and envisions that DOL-
funded employment and training programs, including the publicly-funded 
workforce investment system, will identify, inform and deliver 
comprehensive services to covered persons as part of strategic 
workforce development activities across the country. Veterans possess 
unique attributes and contribute greatly in the workplace. They are an 
important source of highly skilled and experienced talent and play an 
important role in regional workforce development strategies. They are 
highly sought after by employers and they make excellent employees. 
Implementation of priority of service is designed to provide covered 
persons with clear entry points into high-growth, high wage civilian 
jobs and easily accessible post-secondary education and training to 
support veterans' advancement along career pathways which will benefit 
regional economies.
    One-Stop Career Centers are the delivery point for a significant

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percentage of qualified job training programs and services covered by 
the JVA and are required to implement priority of service. All One-Stop 
Career Centers should have clear strategies for providing veterans and 
eligible spouses of veterans with the highest quality of service at 
every phase of services offered. This can range from basic functions of 
the One-Stop System, such as assistance with job search and 
identification of needed skills to more customized initiatives such as 
creating career pathways, with corresponding competency assessments and 
training opportunities, which allow covered persons to advance their 
careers in high growth sectors of the economy. The Department expects 
that the One-Stop System will draw on all available resources to 
support the reemployment needs of covered persons.
    Veterans and their spouses have specific needs and concerns that 
can be addressed as DOL-funded employment and training programs develop 
strategies for serving them. When military service has ended, a major 
concern for many veterans is getting a good job. Combat veterans may 
experience difficulties both in finding employment and in readjusting 
to civilian work environments. DOL-funded employment and training 
programs should work with employers to ensure that the value a veteran 
brings to the table is understood and to address any concerns that 
employers may have about hiring veterans. Those veterans who have 
sustained injuries or illnesses as a result of their military service 
may require additional support in developing skills and securing 
employment. DOL, the Department of Defense and the Department of 
Veterans Affairs are collaborating in closely monitoring the 
rehabilitation of wounded and injured veterans so that their readiness 
for employment can be assessed and appropriate preparations for 
civilian employment can be made. Upon achieving job-ready status, these 
``heroes at home'' should be immediately provided the full array of 
employment and training services to ensure that they make a successful 
transition into a civilian career.
    Priority of service ensures that covered persons receive priority 
employment and job training services that will effectively integrate 
them into the economy. It does not change a program's intended 
functions; covered persons still need to meet all statutory eligibility 
and program requirements for participation. Some DOL-funded employment 
and training programs have only general program eligibility 
requirements and do not statutorily target specific groups. These 
programs require only a straightforward implementation of priority of 
service. However, some DOL-funded employment and training programs do 
carry existing statutory targeting provisions that must be taken into 
account when applying priority of service. The purpose of this proposed 
rule is to articulate how priority of service is to be applied across 
all existing and new qualified job training programs.

II. Section-by-Section Review of the Proposed Rule

Subpart A--Purpose and Definitions

What is the purpose and scope of this part? (Sec.  1010.100)
    Section 1010.100 briefly describes and supplies the statutory 
context for these regulations. The purpose of the regulations is to 
implement priority of service for veterans and eligible spouses of 
veterans, collectively identified as covered persons. These regulations 
apply to all workforce preparation, development or delivery programs 
funded in whole or in part by the Department. These regulations 
implement the priority of service provision of the JVA (38 U.S.C. 4215) 
as required by the Veterans' Benefits, Health Care, and Information 
Technology Act of 2006, Public Law 109-461 (Dec. 22, 2006).
What definitions apply to this part? (Sec.  1010.110)
    The definitions in this section are provided to assist in 
understanding priority of service, its implementation and corresponding 
requirements. For the most part, these terms incorporate definitions 
contained in the Jobs for Veterans Act. The term ``veteran'' is based 
on the definition in 38 U.S.C. 101(2) and is defined as ``a person who 
served in the active military, naval, or air service, and who was 
discharged or released therefrom under conditions other than 
dishonorable.'' As provided in Sec.  1010.330(c)(2)(i), this will 
result in uniformity in the application of and in the reporting on 
priority of service for veterans.

Subpart B--Understanding Priority of Service

What is priority of service? (Sec.  1010.200)
    Priority of service entitles covered persons, including veterans 
and eligible spouses of veterans who are otherwise eligible for DOL 
qualified job training programs, to receive priority access to programs 
or services over non-covered persons. It is important to emphasize that 
covered persons must meet a program's statutory eligibility 
requirements in order to obtain priority of service in the program.
    To carry out these objectives, priority of service requires that 
covered persons take precedence over non-covered persons in obtaining 
DOL-funded services. Section 1010.200 provides that covered persons 
receive access to the service or resource earlier in time than non-
covered persons; or if the service or resource is limited, covered 
persons receive access to the service or resource instead of or before 
non-covered persons.
In which Department job training programs do covered persons receive 
priority of service (Sec.  1010.210)?
    This section stipulates that priority of service applies to every 
workforce preparation, development, or delivery program or service that 
is directly funded in whole or in part by the Department. Priority of 
service is intended to apply to all such programs currently in 
operation, as well as all new such programs that come into existence in 
the future. The implementation of priority of service is not meant to 
change the intended function of a program or service.
    The Department funds a broad range of programs and services that 
are affected by priority of service, including, but not limited to: 
Wagner-Peyser funded employment services; the Trade Adjustment 
Assistance Program; Adult and Dislocated Worker Programs funded under 
the Workforce Investment Act of 1998 (Pub. L. 105-220, Aug. 7, 1998) 
(WIA); WIA Youth Formula Funded Programs, WIA national programs; 
Community Based Job Training Grants; Job Corps; the Veterans' Workforce 
Investment Program; Office of Disability Employment Programs; Pilot and 
Demonstration Grants; discretionary grants such as those using H-1B 
funds; and future grant formula or discretionary grants. As new 
workforce preparation, development, or delivery programs or services 
funded in whole or in part by the Department are developed, they will 
also be covered by priority of service.
How are recipients required to implement priority of service? (Sec.  
1010.220)
    Under paragraph (a) of this section, all recipients of DOL funding 
for the administration and delivery of qualified job training programs 
are required to agree to implement priority of service as a condition 
for receipt of any Department funds for existing and new

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programs. As part of this agreement, funding recipients must provide 
the Department with information on how priority of service will be 
implemented. The agreement may be executed in a variety of ways, 
depending on the program. For example, the Department may require the 
agreement as part of the terms of formal grant award documents and/or 
through program governance documents, such as strategic plans and State 
workforce investment plans submitted under the Workforce Investment Act 
of 1998.
    Under paragraph (b) of this section, it is the responsibility of 
the funding recipient to ensure that any sub-recipients of funds 
implement priority of service. As such, funding recipients should 
include priority of service and its associated data collection and 
reporting requirements in all requests for proposals, solicitations for 
grant awards, sub-grants, sub-contracts, or other mechanisms utilized 
to define service delivery strategies using DOL funding, including 
(where feasible) memoranda of understanding or other service delivery 
agreements.
Do States and political subdivisions of States have any additional 
responsibilities in implementing priority of service that go beyond 
what is expected of recipients? (Sec.  1010.230)
    Because of the importance of their role in ensuring that priority 
of service for covered persons is carried out throughout the One-Stop 
Delivery System, both States and local workforce investment areas have 
particular responsibilities for planning and establishing policies for 
the delivery of priority of service throughout the workforce investment 
system. States are required to address priority of service in their 
comprehensive strategic plans, and they are also required to ensure 
that Local Workforce Investment Boards address priority of service in 
their strategic plans. These plans should identify the processes that a 
State's workforce system will follow to identify covered persons at the 
point of entry so that covered persons can take full advantage of 
priority of service. State entities and political subdivisions of 
states are required to ensure that covered persons are made aware of 
the programs and the benefits conveyed by priority of service and that 
covered persons understand: (a) Their entitlement to priority of 
service; (b) the full array of employment, training, and placement 
services available under priority service, and (c) any applicable 
eligibility requirements for those programs or services. It is the 
responsibility of states to ensure that state and local policies are in 
place to fulfill these requirements.
Will the Department be monitoring for compliance with priority of 
service? (Sec.  1010.240)
    The Department is committed to ensuring full and proper 
implementation of priority of service across the nation. Therefore, the 
Department will monitor and evaluate recipients of funds for qualified 
job and training programs to ensure that covered persons are made aware 
of and are afforded priority of service. The responsibility for 
monitoring priority of service will be shared jointly between VETS and 
the DOL agency responsible for administration and oversight of the 
program. At the regional level, VETS staff will coordinate monitoring 
reviews and validation visits with the appropriate federal official 
with comparable responsibility for the qualified job training program. 
Monitoring and evaluation will include collecting information 
indicating that covered persons are afforded priority of service in 
qualified job training programs, and ensuring that covered persons are 
made aware of priority of service at the point of entry and are 
afforded its benefits. The processes to address the inability of 
grantees to perform programmatic requirements, such as the application 
of priority of service, vary by program. At a minimum, if a recipient 
is found to not be in compliance with the requirement to provide 
priority of service to covered persons, the recipient will be required 
to submit a corrective action plan.
Can priority of service be waived? (Sec.  1010.250)
    In accordance with 38 U.S.C. 4215(a)(3), priority of service will 
be applied for covered persons in all qualified programs and services 
``notwithstanding any other provision of law'' and cannot be waived.

Subpart C--Applying Priority of Service for Covered Persons

What processes are to be implemented to identify covered persons? 
(Sec.  1010.300)
    To ensure complete implementation of priority of service, 
recipients of funds for qualified job training programs must have 
procedures in place to identify covered persons as quickly as possible 
in order to promptly inform them about their priority of service 
benefits, regardless of whether those benefits are being delivered in 
person or over the Web. As described in greater detail in conjunction 
with the review of Sec.  1010.330, DOL has identified ``point of 
entry'' as the point at which customers first come into contact with 
DOL-funded employment and training programs. Points of entry may 
include reception through a One-Stop Career Center established pursuant 
to the Workforce Investment Act of 1998, as part of an application 
process for a specific program, or through any other method by which 
covered persons express an interest in receiving services, either in-
person or virtually. These processes are to ensure that:
    (1) Covered persons are identified at the point of entry to allow 
them to take the fullest advantage of priority of service; and
    (2) To ensure covered persons understand:
    (a) Their entitlement to priority of service,
    (b) The full array of employment and training services available 
under priority of service, and
    (c) Any eligibility requirements the covered person must meet in 
order to gain entry into the program or to be provided services by the 
program.
    These procedures must ensure that covered persons are identified at 
the point of entry so that they have the opportunity to take advantage 
of priority of service. For example, a program with intake procedures 
must ascertain during intake whether the applicant is a covered person 
so that the covered person can be afforded priority during the receipt 
of all applicable subsequent services.
    Because of the broad scope of qualified job training programs, a 
single procedure for all programs is not feasible and will not be 
specified. Instead, each program will need to develop those procedures 
that best fit within that program's context and current client flow 
process.
How will priority of service be applied? (Sec.  1010.310)
    As mentioned above, veterans must meet program eligibility 
requirements in order to obtain priority. This section discusses the 
different ways that programs may target groups of eligible individuals 
and how such targeting interacts with the priority of service. Some 
DOL-funded qualified job training programs have only general program 
eligibility requirements and do not statutorily target specific groups. 
For these programs, implementing priority of service for covered 
persons is relatively straightforward. However, DOL also administers a 
number of programs that have existing federal statutory or 
discretionary targeting provisions that prioritize certain

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population groups. The Department is using this rule-making opportunity 
to clarify and codify how such priorities should be balanced when 
implementing priority of service in those programs with federal 
statutory priorities. The veterans' priority of service will always 
take precedence over state- or locally-imposed priorities and 
preferences.
    Many qualified job training programs also provide more than one 
phase of service. For example, within the One-Stop Career Center, a 
continuum of services may be available, ranging from self-service and 
information to career counseling and training, depending upon the needs 
of the customer. It is important to note that covered persons must be 
given priority of service throughout this continuum of services. 
Identifying covered persons at the point of entry is a means of 
ensuring that covered persons have access to and are afforded priority 
in receiving the full array of services available throughout the 
different phases of service delivery.
    For the purposes of implementing priority of service, all DOL-
funded qualified job training programs fall into one of three broad 
categories: (1) Programs whose eligibility requirements do not target 
specific groups (universal access); (2) programs with discretionary 
targeting of specific groups pursuant to a federal statute or 
regulation; (3) programs with statutory targeting of specific groups 
pursuant to a federal statute or regulation. For each of these three 
categories, instructions for applying priority of service are provided 
below:
    1. Programs whose eligibility requirements do not target specific 
groups (universal access):
    Some DOL-funded qualified programs, such as Wagner-Peyser 
employment services, are available to eligible individuals from the 
general population as a whole. For these programs, funding recipients 
must identify covered persons and give all covered persons priority of 
service over non-covered persons for program services.
    2. Programs with discretionary targeting of specific groups 
pursuant to a federal statute or regulation:
    Some DOL-funded qualified job training programs are designed by 
statute or regulation to focus on a particular group, or to make 
efforts to provide a certain level of service to such a group, but such 
focus is optional or discretionary. In that case, priority of service 
takes precedence over the discretionary priority. This means that 
funding recipients are required to provide covered persons the highest 
priority over non-covered persons. Non-covered persons within the 
discretionary area of focus would then receive priority over non-
covered persons outside the discretionary area of focus. The 
discretionary targeting will still remain consistent with the federal 
statutory and/or regulatory provision(s) governing the discretionary 
targeting.
    3. Programs with statutory targeting pursuant to a federal statute 
or regulation:
    Some qualified programs have mandatory priorities or priorities 
required by federal law. These targeting provisions mandate priority or 
preference for a particular group of individuals, such as the Workforce 
Investment Act (WIA) Adult Program (which requires, by statute, that 
priority for intensive and training services be given to recipients of 
public assistance and other low-income individuals, when funds 
allocated to a local area are limited) or require spending a certain 
portion of program funds on a particular group of persons receiving 
services, such as the WIA Youth Program (which requires that at least 
30% of funds be spent on out-of-school youth). For these programs 
containing a federal statutory priority, funding recipients should 
implement priority of service in the following order: (1) Covered 
persons who meet the mandatory priorities or spending requirement or 
limitation would receive the highest priority for the program; (2) Non-
covered persons within the program's mandatory priorities would receive 
preference before covered persons outside the program's mandatory 
priorities; and (3) Covered persons outside the program's mandatory 
priorities would receive priority over any non-covered persons outside 
the program's mandatory priorities.
Will recipients be required to collect information and report on 
priority of service? (Sec.  1010.320)
    Yes, recipients of funds will be required to collect information 
and report on priority of service. JVA requires the Department to 
evaluate: (1) Whether covered persons are receiving priority of 
service; (2) whether covered persons are being fully served by 
qualified job training programs; and (3) whether the representation of 
covered persons in such programs is in proportion to the incidence of 
representation of covered persons in the labor market. The data to be 
collected and maintained, as described in Sec.  1010.330, will play a 
direct role in enabling the Department to fulfill the statutory 
responsibilities of evaluating whether covered persons are receiving 
priority of service and are being fully served by qualified job 
training programs, and whether the representation of covered persons in 
such programs is in proportion to the incidence of representation of 
covered persons in the labor market. In addition, by calling covered 
persons to the attention of program staff at the point of entry, the 
requirement to collect data on covered persons is expected to reinforce 
the provision of timely information to covered persons about their 
right to priority, about available services and about applicable 
eligibility requirements, as required by Sec.  1010.300.
What are the responsibilities of recipients to collect and maintain 
data on covered and non-covered persons? (Sec.  1010.330)
    Each recipient of funds must collect data and maintain records that 
indicate covered person status to determine whether the funding 
recipient is providing priority of service as required by the 
Secretary. This regulation is accompanied by an Information Collection 
Request (ICR) that identifies the initial set of requirements. Those 
requirements are to be implemented for selected qualified job training 
programs in coordination with the approval of the ICR, with the 
expectation of implementing those requirements on July 1 of the 
subsequent program year. Some qualified job training programs are not 
included in the ICR that accompanies this Notice of Proposed Rulemaking 
(NPRM). For each of those programs, the reporting requirements related 
to priority of service will be identified as part of that program's 
periodic renewal of approval for an existing information collection or 
as part of that program's request for a new information collection, 
whichever first follows the approval of the ICR that accompanies this 
NPRM. VETS will review information collection requirements for programs 
not included in the initial ICR to ensure they meet the reporting 
requirements for priority of service.
    In developing information collection and reporting requirements, 
the Department has taken into consideration the broad scope of programs 
to which these reporting requirements will apply. The Department also 
considered the fact that priority of service addresses processes 
experienced by customers, both covered and non-covered, before they 
receive services. In designing its approach to data collection and 
reporting on priority of service, DOL identified ``point of entry'' as 
the point at which customers first come into contact with DOL-funded 
employment and training programs. Since customers

[[Page 48090]]

can make initial contact with these programs in a wide variety of ways, 
point of entry embraces a variety of situations. For example, some 
customers first contact One-Stop Career Centers, while others apply 
directly for specific DOL-funded employment and training programs. In 
either of those cases, customers also may make their initial contacts 
at physical locations or by remotely accessing electronic resources. In 
conjunction with the identification of point of entry, DOL also 
designated customers at this stage as ``entrants,'' who can be either 
covered or non-covered.
    In assessing the available options for measuring priority of 
service, the Department carefully considered the benefits that would be 
derived and the burdens that would be imposed if data were collected 
and reported on both covered and non-covered entrants. While that would 
have allowed DOL to compare the rates of entry to services for both 
groups, DOL concluded that requiring data collection and reporting for 
non-covered entrants would be disproportionately burdensome to both 
workforce professionals and their customers, the overwhelming majority 
of whom are not covered persons. Specifically, historical data on 
veteran participation suggest that non-covered entrants will represent 
over four-fifths of all entrants. Therefore, the Department has 
determined that entrant data collection and reporting will be 
restricted to covered entrants.
    Similarly, DOL considered requiring entrant data collection for all 
qualified job training programs. In that case also, an assessment of 
the trade-offs between the benefits and the burdens for programs of 
different sizes indicated that data collection and reporting on covered 
entrants should be restricted to six major workforce programs that 
historically surpassed a ``threshold'' level of veteran participation. 
The threshold level identified is participation of 1,000 or more 
veteran participants per year, on average over the prior three years. 
Of the nine major workforce programs included in the Annual Report on 
veterans' employment, the six programs above the threshold level 
accounted for 99.9% of the veteran participants. In light of the 
expected concentration of covered entrants in those six programs, DOL 
has determined that data collection and reporting on covered entrants 
will be restricted to those six programs (Wagner-Peyser, WIA Adult, WIA 
Dislocated Worker, WIA National Emergency Grant, Senior Community 
Service Employment, and Trade Adjustment Assistance Programs).
    All funding recipients also must collect and maintain data on 
covered and non-covered persons who receive services (also known as 
`participants'). The information to be collected may include, but is 
not limited to: (1) The covered and non-covered person status of all 
persons receiving services; (2) the types of services provided to 
covered and non-covered persons; (3) the dates in which services were 
received by covered and non-covered persons; and (4) the employment 
outcomes experienced by covered and non-covered persons receiving 
services. In collecting data on the services provided to and the 
outcomes experiences by persons receiving services, funding recipients 
must apply the definitions set forth in Sec.  1010.110 to distinguish 
covered from non-covered persons receiving services and, within covered 
persons, to distinguish veterans from eligible spouses.

III. Administrative Information

Regulatory Flexibility Analysis, Executive Order 13272, and Small 
Business Regulatory Enforcement Fairness Act

    The Regulatory Flexibility Act (RFA), 5 U.S.C. Chapter 6, requires 
the Department to evaluate the economic impact of this proposed rule 
with regard to small entities. The RFA defines small entities to 
include small businesses, small organizations including not-for-profit 
organizations, and small governmental jurisdictions. The Department 
must determine whether the proposed rule imposes a significant economic 
impact on a substantial number of such small entities.
    The Department has determined that there is no significant economic 
impact resulting from this NPRM. The JVA mandates that veterans receive 
priority of service in all qualified job training programs. The purpose 
of this NPRM is to implement the JVA's priority of service requirement. 
It defines the program and reporting requirements for ongoing programs 
funded by the Department (and any new programs created in the future) 
and administered by funding recipients. The priority of service 
provisions in the JVA do not create any new job training programs; 
rather, the programs affected by the priority of service are ongoing. 
The proposed rule requires funding recipients to do certain things, 
such as implement processes to identify covered persons at the point of 
entry and report on priority of service. However, the Department funds 
these programs and the funds are meant to include such activities as 
administration and reporting. Although certain funding recipients that 
operate qualified job training programs may be small entities, the 
Department certifies that this NPRM does not have a significant 
economic impact on a substantial number of small entities under the 
provisions of the RFA and also under the provisions of Executive Order 
13272.
    Finally, the Department has also determined that this rule is not a 
``major rule'' for purposes of The Small Business Regulatory 
Enforcement Fairness Act (SBREFA), 5 U.S.C. Chapter 8, requires 
agencies to take certain actions when a ``major rule'' is promulgated. 
SBREFA defines a ``major rule'' as one that has or will likely to 
result in an annual effect on the economy of $100,000,000 or more; a 
major increase in costs or prices for, among other things, state or 
local government agencies; or in significant and adverse effects on the 
U.S. business climate. For the reasons already discussed, this proposed 
rule will not have any significant financial impact. Accordingly, none 
of the definitions of ``major rule'' apply in this instance.

 Executive Order 12866

    Executive Order 12866 requires that for each ``significant 
regulatory action'' proposed by the Department, the Department conduct 
an assessment of the proposed regulatory action and provide the Office 
of Management and Budget (OMB) with the proposed regulation and the 
requisite assessment prior to publishing the regulation. A significant 
regulatory action is defined to include an action that will have an 
annual effect on the economy of $100 million or more, as well as an 
action that raises a novel legal or policy issue.
    The priority of service implemented by this proposed rule will not 
have an annual effect on the economy of $100 million or more, for the 
reasons outlined above. While much of the proposed rule is consistent 
with current DOL policy, certain portions may raise novel policy 
issues. Accordingly, OMB has reviewed this proposed rule.

Paperwork Reduction Act

    The purposes of the Paperwork Reduction Act of 1995 (PRA), 44 
U.S.C. 3501 et seq., include minimizing the paperwork burden on 
affected entities. The PRA requires certain actions before an agency 
can adopt or revise the collection of information, including publishing 
a summary of the collection of information and a brief description of 
the need for and proposed use of the information.
    The Department hereby announces that the collections of information

[[Page 48091]]

contained in this proposed rule, and identified as such, have been 
submitted to the Office of Management and Budget (OMB) for review and 
approval in accordance with section 3507(d) of the PRA. A copy of this 
submission, with applicable supporting documentation, a description of 
the likely respondents, proposed frequency of response, and estimated 
total burden, may be obtained at http://www.doleta.gov/OMBCN/OMBControlNumber.cfm or from the RegInfo.gov Web site at http://www.reginfo.gov/public/do/PRAMain or by contacting Darrin A. King, 
Acting Departmental Clearance Officer, on 202-693-4129 (this is not a 
toll-free number); e-mail: [email protected].
    The Department invites comments on the collections of information 
contained in this proposed rule. Comments may be submitted by e-mail to 
[email protected]. Comments also may be sent to the Office 
of Information and Regulatory Affairs, Office of Management and Budget, 
Room 10235, New Executive Office Building, Washington, DC 20503; 
Attention: Desk Officer for the Employment and Training Administration. 
Although comments may be submitted through October 14, 2008, OMB 
requests that comments be received within 30 days of publication of the 
Notice of Proposed Rulemaking to ensure their consideration. In order 
to ensure the appropriate consideration, comments should reference the 
OMB Control Number: 1205-0NEW. The OMB is particularly interested in 
comments that:
     Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including whether the information will have practical utility;
     Evaluate the accuracy of the agency's estimate of the 
burden of the proposed collection of information, including the 
validity of the methodology and assumptions used;
     Enhance the quality, utility, and clarity of the 
information to be collected; and
     Minimize the burden of the collection of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submission of responses.
    Type of Review: Request for New Collection.
    Title of the Collection: Application for Priority of Service Data 
Collection.
    OMB Control Number: 1205-0NEW.
    Total Estimated Annual Respondents: (a) 1,586,815 covered entrants; 
and (b) 151,530 covered Wagner-Peyser/VETS persons receiving services 
to be tracked through individual data records.
    Estimated Time for Response: 3.5 minutes per record.
    Total Estimated Burden Hours: 155,539.
    Total Estimated Cost Burden: $0.
    Description: The primary data collection and reporting requirements 
related to this proposed rule are set forth in Sec.  1010.330(b) and 
call for minimal data collection for covered persons to be initiated at 
the point of entry by those qualified job training programs above a 
certain size threshold, as specified in Sec.  1010.330(a)(2). These new 
data collection and reporting requirements are specified in the ICR 
that accompanies this NPRM and will impact the four approved 
information collections identified below. The effective date(s) for the 
new reporting requirements will be determined by the application of 
criteria identified in the ICR, in conjunction with the point in time 
at which OMB approval of the ICR is received. It is possible that the 
effective date for application of the new data collection and reporting 
requirements for covered persons at the point of entry will coincide 
with the effective date for implementation of the Workforce Investment 
Streamlined Performance Reporting (WISPR) System. In that case, only 
the WISPR System and the SCSEP Performance Measurement System will be 
impacted, because WISPR will replace the other three systems identified 
below.
Sec.  1010.330(b)--What are the responsibilities of recipients to 
collect and maintain data on covered and non-covered persons?
     1205-0040: SCSEP Performance Measurement System.
     1205-0240: Labor Exchange Reporting System (LERS).
     1205-0392: Trade Act Participant Report (TAPR).
     1205-0420: WIA Management Information and Reporting 
System.
    A second data collection and reporting requirement relates to this 
proposed rule. It is based on the provisions of Sec.  1010.220, which 
require funding recipients to agree to implement priority of service as 
a condition for the receipt of funds. It is anticipated that this 
requirement will impact the six approved information collections 
identified below.
Sec.  1010.220--How are recipients required to implement priority of 
service?
     1205-0219: Standard Job Corps Request for Proposal and 
Related Contractor Information Gathering.
     1205-0275: Trade Adjustment Assistance/NAFTA Financial 
Status/Request for Funds Report.
     1205-0398: TITLE: Planning Guidance and Instructions for 
Submission of the Strategic State Plan and Plan Modifications for Title 
I of the Workforce Investment Act of 1998 (WIA).
     1205-0407: State Unified Plan Planning Guidance for State 
Unified Plans and Unified Plan Modifications Submitted Under Section 
501 of the Workforce Investment Act of 1998 (WIA).
     1205-0439: Workforce Investment Act: National Emergency 
Grant (NEG) Assistance--Application and Reporting Procedures.
     1205-0458: Generic Solicitation for Grant Applications 
(SGA).
    The Department intends that the required revisions to the six 
information collections listed above will take effect when these 
information collections are next approved, whether that approval 
responds to a request for renewed approval of an existing information 
collection, or to a request for initial approval of a new information 
collection.
    The third data collection and reporting requirement that relates to 
this proposed rule is based on the provisions of Sec.  1010.330(c), 
which require funding recipients to collect data and report on covered 
and non-covered persons receiving services. It is anticipated that this 
requirement will impact the 14 approved information collections 
identified below. In most cases, the only impact will be to insert new 
specifications for existing data fields for veterans and eligible 
spouses in these reporting systems.
Section 1010.330(c)--What are the responsibilities of recipients to 
collect and maintain data on covered and non-covered persons?
     1205-0025: Job Corps Application Data.
     1205-0353: Worker Profiling and Reemployment Services 
Activities and Worker Profiling and Reemployment Outcomes.
     1205-0371: Work Opportunity Tax Credit (WOTC) and Welfare-
to-Work (WtW) Tax Credit.
     1205-0417: One-Stop Workforce Information Grant Plan and 
Annual Performance Report.

[[Page 48092]]

     1205-0422: Financial and Program Reporting and Performance 
Standards System for Indian and Native American Programs Under Title I, 
Section 166 of the Workforce Investment Act (WIA).
     1205-0425: Reporting and Performance Standards System for 
Migrant and Seasonal Farmworker Programs Under Title I, Section 167 of 
the Workforce Investment Act (WIA).
     1205-0436: Quick Turnaround Surveys on Workforce 
Investment Act Implementation.
     1205-0448: Employment and Training Data Validation 
Requirement.
     1205-0455: Prisoner Reentry Initiative (PRI) Reporting 
System.
     1205-0464: YouthBuild Reporting System.
     1205-0465: High Growth and Community-Based Job Training 
Grants.
     1225-0059: Job Accommodation Network (JAN) Customer 
Satisfaction Survey.
     1230-0003: Employment Assistance & Recruiting Network 
(EARN) Employer and Provider Enrollment Form, and Surveys.
     1293-0009: VETS Manager's Report and SF-269A.
    The Department intends that the required revisions to the 14 
information collections listed above will take effect when these 
information collections are next approved, whether that approval 
responds to a request for renewed approval of an existing information 
collection, or to a request for initial approval of a new information 
collection.
    The Department notes that a Federal agency cannot conduct or 
sponsor a collection of information unless it is approved by OMB under 
the PRA, and displays a currently valid OMB control number, and the 
public is not required to respond to a collection of information unless 
it displays a currently valid OMB control number. Also, notwithstanding 
any other provisions of law, no person shall be subject to penalty for 
failing to comply with a collection of information if the collection of 
information does not display a currently valid OMB control number. 
Comments submitted in response to this notice will become a matter of 
public record. Those wishing to submit comments on the collections of 
information contained in this proposed rule are reminded that: (a) the 
relevant documents can be obtained for review from any one of the three 
sources cited above; and, (b) comments should be submitted to the e-
mail address or to the postal address for OMB's Office of Information 
and Regulatory Affairs (OIRA), also cited above.

Executive Order 13132

    The Department has reviewed this proposed rule in accordance with 
Executive Order 13132 regarding federalism and has determined that it 
does not have ``federalism implications.'' The rule does not ``have 
substantial direct effects on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government.'' This 
proposed rule implements the priority of services for qualified job 
training programs. Although States are recipients of funds for many 
qualified job training programs, this proposed rule does not have a 
substantial direct effect on the States; it merely establishes certain 
conditions on the receipt of program funds. This proposed rule does 
nothing to alter either the relationship between the national 
government and the States, or the distribution of power and 
responsibilities among the various levels of government. Accordingly, 
this proposed rule does not have ``federalism implications.''

Unfunded Mandates Reform Act of 1995

    For purposes of the Unfunded Mandates Reform Act (UMRA) of 1995, 
this rule does not include any Federal mandate that may result in 
increased expenditures by State, local and tribal governments, or by 
the private sector. This proposed rule merely establishes that 
recipients of qualified job training funds must use some of those funds 
to satisfy priority of service requirements. As this proposed rule does 
not impose any unfunded Federal mandate, the UMRA is not implicated.

Executive Order 13045

    Executive Order 13045 concerns the protection of children from 
environmental health risks and safety risks. This proposed rule 
implements the priority of service provisions for qualified job 
training programs funded by the Department. This proposed rule has no 
impact on safety or health risks to children.

Executive Order 13175

    Executive Order 13175 addresses the unique relationship between the 
Federal Government and Indian tribal governments. The order requires 
Federal agencies to take certain actions when regulations have ``tribal 
implications.'' Required actions include consulting with Tribal 
Governments prior to promulgating a regulation with tribal implications 
and preparing a tribal impact statement. The order defines regulations 
as having ``tribal implications'' when they have substantial direct 
effects on one or more Indian tribes, on the relationship between the 
Federal Government and Indian tribes, or on the distribution of power 
and responsibilities between the Federal Government and Indian tribes.
    The Department has reviewed this proposed rule and concludes that 
it does not have tribal implications. Although tribal governments are 
recipients of some qualified job training program funds, this proposed 
rule merely establishes certain conditions on the receipt of program 
funds. Indian tribes will not even be required to perform the new 
reporting duties described in this proposed rule because the programs 
they administer do not serve an average of 1,000 covered persons per 
year. The proposed rule does nothing to affect either the relationship 
or the distribution of power and responsibilities between the Federal 
Government and Indian tribes. Therefore, this proposed rule does not 
have tribal implications for purposes of Executive Order 13175.

Environmental Impact Assessment

    The Department has reviewed this proposed rule in accordance with 
the requirements of the National Environmental Policy Act (NEPA) of 
1969 (42 U.S.C. 4321 et seq.), the regulations of the Council on 
Environmental Quality (40 CFR part 1500), and the Department's NEPA 
procedures (29 CFR part 11). The proposed rule will not have a 
significant impact on the quality of the human environment, and thus 
the Department has not prepared an environmental assessment or an 
environmental impact statement.

Assessment of Federal Regulations and Policies on Families

    Section 654 of the Treasury and General Government Appropriations 
Act, enacted as part of the Omnibus Consolidated and Emergency 
Supplemental Appropriations Act of 1999 (Pub. L. 105-277, 112 Stat. 
2681), requires the Department to assess the impact of this rule on 
family well-being. A rule that is determined to have a negative affect 
on families must be supported with an adequate rationale. The 
Department has assessed this proposed rule and has determined that it 
will not have a negative effect on families.

Privacy Act

    The Privacy Act of 1974 (5 U.S.C. 552a) provides safeguards to 
individuals concerning their personal information which the Government 
collects. The Act

[[Page 48093]]

requires certain actions by an agency that collects information on 
individuals when that information contains personally identifying 
information such as Social Security Numbers or names. Because this 
proposed rule does not require a new collection of personally 
identifiable information, the privacy act does not apply in this 
instance.

Executive Order 12630

    This proposed rule is not subject to Executive Order 12630, 
Governmental Actions and Interference with Constitutionally Protected 
Property Rights, because it does not involve implementation of a policy 
with takings implications.

Executive Order 12988

    This proposed rule has been drafted and reviewed in accordance with 
Executive Order 12988, Civil Justice Reform, and will not unduly burden 
the Federal court system. The proposed regulation has been written so 
as to minimize litigation and provide a clear legal standard for 
affected conduct, and has been reviewed carefully to eliminate drafting 
errors and ambiguities.

Executive Order 13211

    This proposed rule is not subject to Executive Order 13211, because 
it will not have a significant adverse effect on the supply, 
distribution, or use of energy.

Plain Language

    The Department drafted this proposed rule in plain language.

Catalogue of Federal Domestic Assistance Number

    This proposed rule is not program-specific; rather it applies 
across a broad spectrum of qualified job training programs. Therefore, 
designation of a listing in the Catalog of Federal Domestic Assistance 
would not be appropriate.

 List of Subjects in 20 CFR Part 1010

    Employment, Grant programs--Labor, Veterans.

    Signed at Washington, DC this 7th day of August 2008.
Charles S. Ciccolella,
Assistant Secretary, Veterans Employment and Training Service.

    For reasons stated in the preamble, the Department proposes to 
amend 20 CFR chapter V by adding part 1010 to read as follows:

PART 1010--APPLICATION OF PRIORITY OF SERVICE FOR COVERED PERSONS

Subpart A--Purpose and Definitions
Sec.
1010.100 What is the purpose and scope of this part?
1010.110 What definitions apply to this part?
Subpart B--Understanding Priority of Service
1010.200 What is priority of service?
1010.210 In which Department job training programs do covered 
persons receive priority of service?
1010.220 How are recipients required to implement priority of 
service?
1010.230 In addition to the responsibilities of all recipients, do 
States and political subdivisions of States have any particular 
responsibilities in implementing priority of service?
1010.240 Will the Department be monitoring for compliance with 
priority of service?
1010.250 Can priority of service be waived?
Subpart C--Applying Priority of Service
1010.300 What processes are to be implemented to identify covered 
persons?
1010.310 How will priority of service be applied?
1010.320 Will recipients be required to collect information and 
report on priority of service?
1010.330 What are the responsibilities of recipients to collect and 
maintain data on covered and non-covered persons?

    Authority: Public Law 109-461 (Dec. 22, 2006), section 605 [38 
U.S.C. 4215 Note]; 38 U.S.C. 4215.

Subpart A--Purpose and Definitions


Sec.  1010.100  What is the purpose and scope of this part?

    (a) Part 1010 contains the Department regulations implementing 
priority of service for covered persons. Priority of service for 
covered persons is authorized by section 2(a)(1) of JVA (38 U.S.C. 
4215). These regulations fulfill section 605 of the Veterans Benefits, 
Health Care, and Information Technology Act of 2006, Public Law 109-461 
(Dec. 22, 2006), which requires the Department to implement priority of 
service via regulation.
    (b) As provided in Sec.  1010.210, this part applies to all 
qualified job training programs.


Sec.  1010.110  What definitions apply to this part?

    The following definitions apply to this part:
    Covered person as defined in section 2(a) of the JVA (38 U.S.C. 
4215(a)) means a veteran or eligible spouse.
    Department or DOL means the United States Department of Labor, 
including its agencies and organizational units and their 
representatives.
    Eligible spouse as defined in section 2(a) of the JVA (38 U.S.C. 
4215(a)) means the spouse of any of the following:
    (1) Any veteran who died of a service-connected disability;
    (2) Any member of the Armed Forces serving on active duty who, at 
the time of application for the priority, is listed in one or more of 
the following categories and has been so listed for a total of more 
than 90 days:
    (i) Missing in action;
    (ii) Captured in line of duty by a hostile force; or
    (iii) Forcibly detained or interned in line of duty by a foreign 
government or power;
    (3) Any veteran who has a total disability resulting from a 
service-connected disability, as evaluated by the Department of 
Veterans Affairs;
    (4) Any veteran who died while a disability, as indicated in 
paragraph (3) of this definition, was in existence.
    Grant means an award of Federal financial assistance by the 
Department of Labor to an eligible recipient.
    Jobs for Veterans Act (JVA) means Public Law 107-288 (2002). 
Section 2(a) of the JVA, codified at 38 U.S.C. 4215(a), provides 
priority of service for covered persons.
    Non-covered person means any individual who meets neither the 
definition of ``veteran,'' as defined below, nor the definition of 
``eligible spouse'' as defined above.
    Qualified job training program means any program or service for 
workforce preparation, development, or delivery that is directly 
funded, in whole or in part, by the Department of Labor.
    Recipient means an entity to which federal financial assistance, in 
whole or in part, is awarded directly from the Department or through a 
sub-award for any qualified job training program.
    Secretary means the Secretary of the Department of Labor.
    Veteran means a person who served in the active military, naval, or 
air service, and who was discharged or released therefrom under 
conditions other than dishonorable, as specified in 38 U.S.C. 101(2).

Subpart B--Understanding Priority of Service


Sec.  1010.200  What is priority of service?

    (a) As defined in section 2(a) of the JVA (38 U.S.C. 4215(a)) 
``priority of service'' means, with respect to any qualified job 
training program, that a covered person shall be given priority over a 
non-covered person for the

[[Page 48094]]

receipt of employment, training, and placement services provided under 
that program, notwithstanding any other provision of the law.
    (b) Priority in the context of providing priority of service to 
veterans and other covered persons in qualified job training programs 
covered by this regulation means the right to take precedence over non-
covered persons in obtaining services. Depending on the type of service 
or resource being provided, taking precedence may mean:
    (1) The covered person receives access to the service or resource 
earlier in time than the non-covered person; or
    (2) If the service or resource is limited, the covered person 
receives access to the service or resource instead of or before the 
non-covered person.


Sec.  1010.210  In which Department job training programs do covered 
persons receive priority of service?

    (a) Priority of service applies to every qualified job training 
program funded, in whole or in part, by the Department, including:
    (1) Any such program or service that uses technology to assist 
individuals to access workforce development programs (such as job and 
training opportunities, labor market information, career assessment 
tools, and related support services); and
    (2) Any such program or service under the public employment service 
system, One-Stop Career Centers, the Workforce Investment Act of 1998, 
a demonstration or other temporary program; any workforce development 
program targeted to specific groups; and those programs implemented by 
States or local service providers based on Federal block grants 
administered by the Department.
    (b) The implementation of priority of service does not change the 
intended function of a program or service. Covered persons must meet 
all statutory eligibility and program requirements for participation in 
order to receive priority for a program or service.


Sec.  1010.220  How are recipients required to implement priority of 
service?

    (a) An agreement to implement priority of service, as described in 
these regulations and in any departmental guidance, is a condition for 
receipt of all Department job training program funds.
    (b) All recipients are required to ensure that priority of service 
is applied by all sub-recipients of Department funds. All program 
activities, including those obtained through requests for proposals, 
solicitations for grant awards, sub-grants, contracts, sub-contracts, 
and (where feasible) memoranda of understanding or other service 
provision agreements, issued or executed by qualified job training 
program operators, must be administered in compliance with priority of 
service.


Sec.  1010.230  In addition to the responsibilities of all recipients, 
do States and political subdivisions of States have any particular 
responsibilities in implementing priority of service?

    (a) Pursuant to their responsibility under the Workforce Investment 
Act of 1998, States are required to address priority of service in 
their comprehensive strategic plan for the State's workforce investment 
system. Specifically, States must develop policies for the delivery of 
priority of service by the State Workforce Agency or Agencies, Local 
Workforce Investment Boards, and One-Stop Career Centers for all 
qualified job training programs delivered through the State's workforce 
system. The policy or policies must require that processes are in place 
to ensure that covered persons are identified at the point of entry and 
given an opportunity to take full advantage of priority of service. 
These processes shall be undertaken to ensure that covered persons are 
aware of:
    (1) Their entitlement to priority of service;
    (2) The full array of employment, training, and placement services 
available under priority of service; and
    (3) Any applicable eligibility requirements for those programs and/
or services.
    (b) The State's policy or policies must require Local Workforce 
Investment Boards to develop and include in their strategic local plan, 
policies implementing priority of service for the local One-Stop Career 
Centers and for service delivery by local workforce preparation and 
training providers. These policies must establish processes to ensure 
that covered persons are identified at the point of entry so that 
covered persons are able to take full advantage of priority of service. 
These processes shall ensure that covered persons are aware of:
    (1) Their entitlement to priority of service;
    (2) The full array of employment, training, and placement services 
available under priority of service; and
    (3) Any applicable eligibility requirements for those programs and/
or services.


Sec.  1010.240  Will the Department be monitoring for compliance with 
priority of service?

    (a) The Department will monitor recipients of funds for qualified 
job training programs to ensure that covered persons are made aware of 
and afforded priority of service.
    (b) Monitoring priority of service will be performed jointly 
between the Veterans' Employment and Training Service (VETS) and the 
DOL agency responsible for the program's administration and oversight.
    (c) A recipient's failure to provide priority of service to covered 
persons will be handled in accordance with the program's established 
compliance review processes. In addition to the remedies available 
under the program's compliance review processes, a recipient may be 
required to submit a corrective action plan to correct such failure.


Sec.  1010.250  Can priority of service be waived?

    No, priority of service cannot be waived.

Subpart C--Applying Priority of Service


Sec.  1010.300  What processes are to be implemented to identify 
covered persons?

    (a) Recipients of funds for qualified job training programs must 
implement processes to identify covered persons who physically access 
service delivery points or who access virtual service delivery programs 
or Web sites in order to provide covered persons with timely and useful 
information on priority of service at the point of entry. Point of 
entry may include reception through a One-Stop Career Center 
established pursuant to the Workforce Investment Act of 1998, as part 
of an application process for a specific program, or through any other 
method by which covered persons express an interest in receiving 
services, either in-person or virtually.
    (b) These processes must ensure that:
    (1) Covered persons are identified at the point of entry to allow 
covered persons to take full advantage of priority of service; and
    (2) Covered persons are to be made aware of:
    (i) Their entitlement to priority of service;
    (ii) The full array of employment, training, and placement services 
available under priority of service; and
    (iii) Any applicable eligibility requirements for those programs 
and/or services.


Sec.  1010.310  How will priority of service be applied?

    (a) Recipients of funds for qualified job training programs must 
implement processes in accordance with Sec.  1010.300 to identify 
covered persons at the point

[[Page 48095]]

of entry, whether in person or virtual, so the covered person can be 
notified of their eligibility for priority of service. Since qualified 
job training programs may offer various types of services including 
staff-assisted services as well as self-services or informational 
activities, recipients also must ensure that priority of service is 
implemented throughout the full array of services provided to covered 
persons by the qualified job training program.
    (b) Three categories of qualified job training programs affect the 
application of priority of service: universal access, discretionary 
targeting and statutory targeting. To obtain priority, a covered person 
must meet the statutory eligibility requirement(s) applicable to the 
specific program from which services are sought. For those programs 
that also have discretionary or statutory priorities or preferences 
pursuant to a federal statute or regulation, recipients must coordinate 
providing priority of service with applying those other priorities, as 
prescribed in paragraphs (b)(2) and (b)(3) of this section.
    (1) Universal access programs operate or deliver services to the 
public as a whole; they do not target specific groups. These programs 
are required to provide priority of service to covered persons.
    (2) Discretionary targeting programs focus on a particular group, 
or make efforts to provide a certain level of service to such a group, 
but do not specifically mandate that the favored group be served before 
other eligible individuals. Whether these provisions are found in a 
federal statute or regulation, priority of service will apply. Covered 
persons must receive the highest priority for the program or service, 
and non-covered persons within the discretionary targeting will receive 
priority over non-covered persons outside the discretionary targeting.
    (3) Statutory targeting programs are programs derived from a 
federal statutory mandate that requires a priority or preference for a 
particular group of individuals or requires spending a certain portion 
of program funds on a particular group of persons receiving services. 
These are mandatory priorities. Recipients must determine each 
individual's covered person status and apply priority of service as 
described below:
    (i) Covered persons who meet the mandatory priorities or spending 
requirement or limitation must receive the highest priority for the 
program or service;
    (ii) Non-covered persons within the program's mandatory priority or 
spending requirement or limitation, must receive priority for the 
program or service over covered persons outside the program-specific 
mandatory priority or spending requirement or limitation; and,
    (iii) Covered persons outside the program-specific mandatory 
priority or spending requirement or limitation must receive priority 
for the program or service over non-covered persons outside the 
program-specific mandatory priority or spending requirement or 
limitation.


Sec.  1010.320  Will recipients be required to collect information and 
report on priority of service?

    Yes. Every recipient of funds for qualified job training programs 
must collect such information, maintain such records, and submit 
reports containing such information and in such formats as the 
Secretary may require related to the provision of priority of service.


Sec.  1010.330  What are the responsibilities of recipients to collect 
and maintain data on covered and non-covered persons?

    (a) General requirements. Recipients must collect information in 
accordance with instructions issued by the Department.
    (1) Recipients must collect two broad categories of information:
    (i) For the qualified job training programs specified in paragraph 
(a)(2) of this section, information must be collected on covered 
persons from the point of entry, as defined in Sec.  1010.300(a), and 
as provided in paragraph (b) of this section; and,
    (ii) For all qualified job training programs, including the 
programs specified in paragraph (a)(2) of this section, information 
must be collected on covered and non-covered persons who receive 
services, as prescribed by the respective qualified job training 
programs, as provided in paragraph (c) of this section.
    (2) For purposes of paragraph (a)(1) of this section, qualified job 
training programs that served, at the national level, 1,000 or more 
veterans per year for the three most recent years of program operations 
(currently the Wagner-Peyser, WIA Adult, WIA Dislocated Worker, WIA 
National Emergency Grant, and Senior Community Service Employment 
Programs) must collect information and report on covered entrants. The 
Trade Adjustment Assistance Program must collect information and report 
on covered entrants on the effective date of the next information 
collection requirement applicable to that program, whether that is for 
a renewal of an existing approved information collection or for 
approval of a new information collection.
    (3) For purposes of this section, covered persons at the point of 
entry are referred to as ``covered entrants.'' This group includes two 
further subgroups: Veterans and eligible spouses as defined in Sec.  
1010.110.
    (b) Collection and maintenance of data on covered entrants. In 
accordance with instructions issued by the Department, recipients of 
assistance for the programs specified in paragraph (a)(2) of this 
section must collect and report individual record data for all covered 
entrants from the point of entry.
    (c) Collection and maintenance of data on covered and non-covered 
persons who receive services. In accordance with instructions issued 
for individual qualified job training programs, all recipients must 
collect and maintain data on covered and non-covered persons who 
receive services, including individual record data for those programs 
that require establishment and submission of individual records for 
persons receiving services.
    (1) The information to be collected shall include, but is not 
limited to:
    (i) The covered and non-covered person status of all persons 
receiving services;
    (ii) The types of services provided to covered and non-covered 
persons;
    (iii) The dates that services were received by covered and non-
covered persons; and
    (iv) The employment outcomes experienced by covered and non-covered 
persons receiving services.
    (2)(i) Except as provided in paragraph (c)(2)(ii) of this section, 
for persons receiving services, recipients must apply the definitions 
set forth in Sec.  1010.110 to distinguish covered from non-covered 
persons receiving services and, within covered persons, to distinguish 
veterans from eligible spouses.
    (ii) Until qualified job training programs adopt the definitions 
for covered and non-covered persons set forth at Sec.  1010.110 through 
the publication of requirements pursuant to the Paperwork Reduction 
Act, recipients must collect data on the services provided to and the 
outcomes experienced by veterans (however defined) and non-veterans 
receiving services in accord with regulations, policies and currently 
approved information collections.
    (d) All information must be stored and managed in a manner that 
ensures confidentiality.

[FR Doc. E8-18869 Filed 8-14-08; 8:45 am]
BILLING CODE 4510-79-P