[Federal Register Volume 82, Number 230 (Friday, December 1, 2017)]
[Rules and Regulations]
[Pages 56869-56886]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-25834]


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DEPARTMENT OF LABOR

Employment and Training Administration

20 CFR Part 641

[Docket No. ETA-2017-0005]
RIN 1205-AB79


Senior Community Service Employment Program; Performance 
Accountability

AGENCY: Employment and Training Administration, Labor.

ACTION: Interim final rule; request for comments.

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SUMMARY: The Employment and Training Administration (ETA) of the 
Department of Labor (Department) is issuing this Interim Final Rule 
(IFR) revising performance accountability measures for the Senior 
Community Service Employment Program (SCSEP). Revised measures are 
necessary because the Older Americans Act Reauthorization Act of 2016 
(OAA) amended the measures of performance for the SCSEP program in 
large part to align them with the performance measures mandated for 
programs under the Workforce Innovation and Opportunity Act (WIOA). 
This IFR revises the Performance Accountability subpart of the SCSEP 
regulations to reflect changes necessitated by the passage of the 2016 
OAA. In addition, this rule makes minor, non-substantive amendments to 
other subparts of the SCSEP regulations to reflect the OAA amendments 
that aligned the SCSEP program statutory language with WIOA, such as 
updating outdated terminology and outdated references to the Workforce 
Investment Act of 1998 (WIA), which WIOA superseded. This IFR solicits 
public comment on this IFR, which the Department will consider when it 
issues a Final Rule.

DATES: Effective date: This IFR is effective January 2, 2018.
    Compliance date: Performance information under the measures 
implemented in this IFR are required to be reported beginning July 1, 
2018.

[[Page 56870]]

    Comment date: To ensure consideration, comments must be in writing 
and must be received on or before January 30, 2018.

ADDRESSES: You may submit comments, identified by docket number ETA-
2017-0005 or the Regulatory Information Number (RIN) 1205-AB79, by any 
one of the following methods:
     Federal e-Rulemaking Portal: http://www.regulations.gov. 
Follow the Web site instructions for submitting comments.
     Mail: Please address all written comments (including disk 
and CD-ROM submissions) to Adele Gagliardi, Administrator, Office of 
Policy Development and Research, Employment and Training 
Administration, U.S. Department of Labor, 200 Constitution Avenue NW., 
Room N-5641, Washington, DC 20210.
     Hand Delivery/Courier: Adele Gagliardi, Administrator, 
Office of Policy Development and Research, Employment and Training 
Administration, U.S. Department of Labor, 200 Constitution Avenue NW., 
Room N-5641, Washington, DC 20210.
    Instructions: Label all submissions with ``RIN 1205-AB79.'' Please 
submit your comments by only one method.
    Please be advised that the Department will post all comments 
received to this IFR on http://www.regulations.gov without making any 
change to the comments, including any personal information provided. 
The http://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 not 
include their personal information such as Social Security Numbers, 
personal addresses, telephone numbers, and email addresses in their 
comments, as such submitted information may become easily available to 
the public via the http://www.regulations.gov Web site. It is the 
responsibility of the commenter to safeguard personal information.
    Also, please note that due to security concerns, postal mail 
delivery in Washington, DC may be delayed. Therefore, the Department 
encourages the public to submit comments on http://www.regulations.gov.
    Docket: All comments on this IFR will be available on the http://www.regulations.gov Web site and can be found using RIN 1205-AB79. The 
Department will make all the comments it receives available for public 
inspection during normal business hours at the Office of Policy 
Development and Research (OPDR) at the above address. If you need 
assistance to review the comments, the Department will provide 
appropriate aids such as readers or print magnifiers. The Department 
will make copies of the rule available, upon request, in large print 
and electronic file on computer disk. To schedule an appointment to 
review the comments and/or obtain the rule in an alternative format, 
contact OPDR at (202) 693-3700 (VOICE). Please note this is not a toll-
free number. Individuals with hearing or speech impairments may access 
the telephone number above via TTY by calling the Federal Information 
Relay Service at 1-800-877-8339.

FOR FURTHER INFORMATION CONTACT: Amanda Ahlstrand, Administrator, 
Office of Workforce Investment, 202-693-3980. (This is not a toll-free 
number.)

SUPPLEMENTARY INFORMATION:

Preamble Table of Contents

I. Background
II. Section-by-Section Discussion of IFR
III. Rulemaking Analyses and Notices

I. Background

    The SCSEP, authorized by title V of the Older Americans Act (OAA), 
is the only Federally sponsored employment and training program 
targeted specifically to low-income older individuals who want to enter 
or re-enter the workforce. Participants must be 55 years of age or 
older, with incomes no more than 125 percent of the Federal poverty 
level. The program offers participants training at community service 
employment assignments in public and non-profit organizations and 
agencies so that they can gain on-the-job experience. The dual goals of 
the program are to promote useful opportunities in community service 
activities and also to move SCSEP participants into unsubsidized 
employment, where appropriate, so that they can achieve economic self-
sufficiency.
    The OAA, Public Law 114-144 (Apr. 19, 2016), amended the statutory 
provisions authorizing SCSEP and requires the Department to implement 
the amendments to the SCSEP performance measures by December 31, 2017. 
See OAA sec. 513(d)(4) (42 U.S.C. 3056k(d)(4), as amended by 2016 OAA 
sec. 6(d)(4) \1\). The purpose of this IFR is to fulfill that statutory 
requirement.
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    \1\ Section 6 of the Older Americans Act Reauthorization Act of 
2016 (2016 OAA), Public Law 114-144, amended secs. 502-518 of title 
V of the Older Americans Act of 1965 (42 U.S.C. 3056 et seq.). For 
ease of reference, this preamble will refer to the changes to title 
V made by the 2016 OAA by referring to the amended sections of the 
Older Americans Act, and will not continue to provide the citations 
to sec. 6 of the 2016 OAA.
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    The OAA requires the Secretary to ``implement the core measures of 
performance not later than December 31, 2017.'' OAA sec. 513(d)(4), 42 
U.S.C. 3056k(d)(4). Accordingly, this IFR includes both the definitions 
of the measures (as required by OAA sec. 513(b)(2)) and the processes 
used to implement these measures in the conduct of the SCSEP grants. 
These processes include how the Department and grantees initially 
determine and then adjust expected levels of performance for the 
grants, and how the Department determines whether a grantee fails, 
meets, or exceeds the levels of performance. This IFR updates the 
current processes so that they reflect the changes required by the OAA.
    The Administrative Procedure Act (APA) authorizes agencies to issue 
a rule without notice and comment upon a showing of good cause. 5 
U.S.C. 553(b)(B). The APA's good cause exception to public 
participation applies upon a finding that those procedures are 
``impracticable, unnecessary, or contrary to the public interest.'' 5 
U.S.C. 553(b)(B). According to the legislative history of the APA, 
``unnecessary'' means unnecessary so far as the public is concerned, as 
would be the case if a minor or merely technical amendment in which the 
public is not particularly interested were involved.'' Senate Report 
No. 752 at p. 200, 79th Cong. 1st Sess. (1945). As explained by the 
U.S. Court of Appeals for the D.C. Circuit, ``when regulations merely 
restate the statute they implement, notice-and-comment procedures are 
unnecessary.'' Gray Panthers Advocacy Cmm. v. Sullivan, 936 F.2d 1284, 
1291 (D.C. Cir. 1991). The Department has determined that there is good 
cause to find that a pre-publication comment period is unnecessary. The 
revisions set forth herein to the existing regulations at 20 CFR part 
641 codify statutory changes requiring little to no agency discretion 
or are technical amendments updating terminology or outdated references 
to WIA, which WIOA superseded. For this reason, the Department's 
implementation of this rule as an IFR, with provision for post-
promulgation public comment, is in accordance with sec. 553(b) of the 
APA.
    Grantees may submit comments on the IFR until January 30, 2018, and 
the Department will consider them prior to issuing the rule finalizing 
this IFR. The Department plans to make any additional changes to the 
SCSEP regulations not related to the

[[Page 56871]]

performance measures through a notice-and-comment rulemaking process.
    The OAA requires the Department to establish and implement the new 
SCSEP performance measures after consultation with stakeholders. OAA 
sec.[thinsp]513(b)(2). The Department satisfied these statutory 
requirements when it solicited public input on the definitions and 
implementation of the statutory performance measures in April and May 
of 2017. On May 8, 2017, the Department sent an email to 4,529 
stakeholders, inviting them to register for the consultation. The 
invitees included 2,491 American Job Center managers, 523 SCSEP grantee 
and sub-grantee managers, 55 governors, 300 State workforce 
administrators, and 1,220 State Development Board chairs and directors. 
Those who registered received a reminder email on May 15, 2017.
    Stakeholders were also informed that they could submit written 
comments after the consultation.
    In response to this outreach effort, 394 individuals registered for 
the consultation from these stakeholder groups: Workforce development 
boards and American Job Centers; local, State, and Federal government; 
nonprofit organizations; direct providers of employment services; labor 
organizations; educational organizations; economic development 
organizations; and others. Of the 394 registered participants, 273 
attended the consultation on May 16, 2017. At the start of the 
consultation, participants identified these affiliations: SCSEP 
grantees or sub-grantees (70 percent); WIOA partner, One-Stop operator, 
or American Job Center affiliate (18 percent); national or local aging 
agency (4 percent); SCSEP host agency (1 percent); Administration for 
Community Living (1 percent); and other (6 percent).
    During the consultation, 100 written comments were received via the 
chat function. Some attendees submitted multiple comments. After the 
consultation, three grantees each submitted multiple comments in 
writing. Thirty of the comments are not relevant to the subject of the 
consultation or this IFR. Most of these comments were directed at the 
mechanics of the online webinar through which the consultation was 
conducted, announced participants' arrivals or departures from the 
webinar, or were in other ways non-substantive. A few substantive 
comments are not relevant to this IFR in that they do not relate to the 
performance measures or other changes required by the OAA amendments. 
The program office will review these substantive comments to inform its 
continued operation of the program and its future technical assistance.
    Fifteen comments addressed SCSEP's overall relationship with WIOA. 
As set forth above, increased coordination with WIOA is one of the main 
purposes of the OAA amendments. However, except for the adoption of 
some of the WIOA core measures, the programmatic coordination with WIOA 
is not the subject of this IFR.
    Three questions asked specifically about the relationship between 
the SCSEP performance measures and WIOA: Whether WIOA will adopt 
measures of community service similar to the SCSEP measures, whether 
the SCSEP measures will be incorporated into the Participant Individual 
Record Layout (PIRL, the WIOA performance reporting system), and 
whether SCSEP performance will be factored into the statewide WIOA 
performance. The changes in this IFR to the SCSEP performance 
measurement system reflect in large part an alignment of the SCSEP 
performance measures with the three employment outcome indicators 
mandated for WIOA core programs under WIOA sec. 116(b)(2)(A)(i)(I)-
(III). In addition to these three WIOA employment outcome indicators of 
performance, SCSEP has three measures related to participation in the 
program: Service level, hours of community service, and service to the 
most-in-need. These three measures are unique to SCSEP and are retained 
unchanged by the current OAA amendments. Although WIOA has several 
similar measures, these SCSEP measures are not directly applicable to 
WIOA. In addition, the WIOA primary indicators of performance include 
effectiveness in serving employers; the corresponding measure for SCSEP 
under the OAA, as discussed below at Sec.  641.720, is not directly 
parallel because it includes participants and host agencies, as well as 
employers. All the SCSEP measures will be incorporated into the PIRL, 
along with other aspects of SCSEP performance. However, although the 
2016 OAA amendments require SCSEP to adopt several of WIOA's primary 
indicators of performance, SCSEP is independent of WIOA, and SCSEP 
performance is not included in the WIOA State program or indicator 
scores.
    Two other general comments were received during the consultation:
     One comment asked whether the Department will still 
require all grantees to use the SCSEP Performance and Results Quarterly 
Performance System (SPARQ). The Department is exploring a new case 
management system that may replace SPARQ in whole or in part. Grantees 
must continue using SPARQ until the Department informs them that a new 
system is available.
     One grantee questioned whether the new performance 
measures apply to both State and national grantees. Like the current 
measures, the new measures apply to all grantees.
    Finally, another comment from a stakeholder requested that the 
Department provide grantees as much notice of the new measures as 
possible so grantees have time to program their internal computer 
systems. The Department is sensitive to the importance of providing 
ample notice to the grantees and of minimizing the burden of 
implementing the new regulations. With the publication of this IFR and 
the first required reporting of the new measures starting on July 1, 
2018, grantees will have ample time to make the minimal changes 
required by the new measures. The Department will provide technical 
assistance and guidance as soon as possible in order to provide 
additional support to grantees in their implementation efforts.
    The Department carefully considered all comments received as we 
developed this IFR. In the following section of the preamble entitled 
``Section-by-Section Discussion of Interim Final Rule,'' the Department 
summarizes and discusses the input received from stakeholders.
    The 2016 OAA changes to the SCSEP performance measurement system 
reflect in large part an alignment of the SCSEP performance measures 
with those mandated for WIOA core programs under WIOA sec. 
116(b)(2)(A)(i). The WIOA performance measures were implemented in a 
joint final rule issued by the Departments of Labor and Education on 
August 19, 2016 (81 FR 55792) (Joint WIOA Final Rule), after notice and 
comment rulemaking, and are codified in 20 CFR part 677. This IFR 
revises 20 CFR part 641, subpart G (Performance Accountability) to 
codify the revised SCSEP performance measures in the 2016 OAA sec. 513, 
which in large part aligns the SCSEP performance measures with the WIOA 
performance measures. In addition, this rule makes technical amendments 
to other subparts of part 641 to reflect 2016 OAA amendments that 
aligned the SCSEP program statutory language with WIOA, such as 
updating outdated terminology and outdated references to WIA, which 
WIOA superseded.
    Coordination between the SCSEP and the WIOA programs continues to 
be an important objective of the OAA. SCSEP is a required partner in 
the workforce development system (per WIOA sec. 121(b)(1)(B)(v)), and 
SCSEP is required

[[Page 56872]]

to coordinate with the WIOA One-Stop delivery system (OAA sec. 511, 42 
U.S.C. 3056i), such as by accepting each other's assessments and 
Individual Employment Plans (OAA sec. 502(b)(3), 42 U.S.C. 3056(b)(3)). 
The underlying notion of the One-Stop delivery system is the 
coordination of programs, services, and governance structures, so that 
the customer has access to a seamless system of workforce development 
services. Although there are many similarities to the system 
established under WIA, there are also significant changes under WIOA 
that are intended to make substantial improvements to the public 
workforce delivery system. The Joint WIOA Final Rule requires partners 
to collaborate to support a seamless customer-focused service delivery 
network; requiring that programs and providers co-locate, coordinate, 
and integrate activities and information, so that the system as a whole 
is cohesive and accessible for individuals and employers alike.
    The Department remains committed to a system-wide continuous 
improvement approach grounded upon proven quality principles and 
practices. Although many of the SCSEP regulations remain unchanged from 
the 2010 SCSEP Final Rule (75 FR 53786), this IFR codifies the 2016 OAA 
revisions to the program that align senior employment services with the 
workforce development system under WIOA. In particular, this rule 
aligns the SCSEP performance measures related to employment and 
earnings with the performance measures established by WIOA to enhance 
consistency and coordination between the programs and ensure effective 
services for older Americans. The changes implemented by the rule are 
discussed in more detail in Section II.

II. Section-by-Section Discussion of Interim Final Rule

    In this section, we discuss the changes made to the regulations as 
required by the 2016 OAA.

Non-Substantive Technical Amendments

    In addition to the changes made to part 641, subpart G (Performance 
Accountability) codifying the 2016 OAA statutory revisions as described 
more fully below, this IFR makes non-substantive technical amendments 
throughout all of part 641 to reflect the 2016 OAA amendments and to 
align the SCSEP program language with WIOA, such as updating outdated 
terminology and outdated references to WIA, which WIOA superseded. The 
IFR revises Sec.  641.140 by removing definitions that are no longer 
operational as a result of the 2016 OAA amendments and WIOA, revising 
definitions consistent with updates to governing law, and adding 
definitions to address new terminology as a result of statutory 
amendments.
    In particular, the IFR removes the definition of ``additional 
measures'' because the 2016 OAA removed them from the SCSEP performance 
requirements. The IFR also removes the definition of ``volunteer work'' 
because the 2016 OAA removed the term from the SCSEP performance 
measures. Also, as part of aligning SCSEP with WIOA, the IFR removes 
the definition for ``Local Workforce Investment Area'' and adds ``Local 
Workforce Development Area.''
    The IFR updates the definition of ``core measures'' (which the 2016 
OAA changed from ``core indicators'') to refer to the new measures of 
performance laid out in amended OAA sec. 513(b)(1) and implemented by 
this rule. To align with WIOA, the IFR changes the terms ``core 
services'' and ``intensive services'' to ``career services,'' and 
updates the definitions of ``Workforce Innovation and Opportunity Act 
(WIOA)'' and ``Workforce Innovation and Opportunity Act regulations'' 
(changed from ``Workforce Investment Act (WIA)'' and ``Workforce 
Investment Act regulations,'' respectively). This update clearly 
establishes that the term ``Workforce Innovation and Opportunity Act 
regulations'' includes all WIOA and Wagner-Peyser Act regulations, 
including the regulations implementing WIOA sec. 188. Similarly, to 
align the text of the SCSEP definitions with the terms used in WIOA, 
the IFR revises the definitions of ``Local Board,'' ``One-Stop 
Center,'' ``One-Stop delivery system,'' and ``State Board'' to reflect 
the definitions as they have been updated under WIOA. Additionally, the 
IFR updates the WIA citations to use WIOA citations in the definitions 
of ``Co-enrollment,'' ``Most-in-need,'' ``One-Stop partner,'' and 
``Training Services.'' Additionally, the IFR updates the OAA citations 
in the definitions ``Pacific Island and Asian Americans,'' ``Supportive 
services,'' and ``Unemployed'' to be consistent with the OAA as amended 
by the 2016 OAA.
    The IFR adds a definition of ``community service employment'' 
because that term is used in sec. 513 of the 2016 OAA. To avoid 
confusion, the definition of ``community service employment'' is the 
same as ``community service assignment,'' so those two terms can be 
used interchangeably.
    This IFR also adds a new Sec.  641.370 to state that for a State 
that obtains approval of a WIOA Combined State Plan under 20 CFR 
676.143, the requirements of WIOA sec. 103 and 20 CFR part 676 will 
apply in lieu of OAA sec. 503(a) and part 641, subpart C. This 
implements a provision added by the 2016 OAA to sec. 503 of the OAA, 
which aligns the requirements of the States submitting SCSEP State 
Plans with the WIOA State Plan requirements.
    Finally, the IFR updates the references to the regulations that 
implement sec. 188 of WIOA, the nondiscrimination and equal opportunity 
provisions of WIOA. Those regulations take the place of the WIA sec. 
188 regulations. They were finalized in January 2017 and codified in 29 
CFR part 38.
    Only the substantive subpart G revisions are described in detail in 
the remainder of this section-by-section discussion.

Subpart G--Performance Accountability

    Throughout this subpart, the Department has revised the term ``core 
indicator(s)'' to ``core measure(s)'' to align the regulation with the 
2016 OAA, specifically sec. 513(a), 42 U.S.C. 3056k(a). The amended 
statute also refers to ``indicators.'' However, because the statute 
uses the terms interchangeably, for consistency and to reduce the 
possibility of confusion, the Department uses only the term 
``measures'' throughout this subpart. Other changes made to the 
sections of subpart G are described below.
Section 641.700 What performance measures apply to Senior Community 
Service Employment Program grantees?
    The Department has made several revisions to paragraph (a) to align 
with the 2016 OAA and the WIOA performance measures. In addition to 
revising references to ``indicators'' to ``measures'' as described 
above, the Department has removed all reference to ``additional 
indicators'' throughout this section. The 2016 OAA removed the 
additional measures of performance that were not subject to goal-
setting and corrective actions, as they were previously established in 
sec. 513(b)(2) of the 2006 OAA. In order to align with the 2016 OAA, 
the Department has replaced the first sentence in paragraph (a) that 
stated ``There are currently eight performance measures, of which six 
are core indicators and two are additional indicators,'' with the 
sentence ``There are seven core performance measures.'' In addition, 
the Department has deleted the last sentence that stated ``Additional 
indicators (defined in Sec.  641.710) are not subject to goal-setting 
and are, therefore, also not subject to corrective action.''

[[Page 56873]]

Other revisions the Department has made to remove reference to 
``additional indicators'' in other sections are discussed below.
    The Department also revised the second sentence of paragraph (a) to 
remove reference to the requirement that performance level goals for 
each core measure must be agreed upon by the grantee and the Department 
``before the start of each program year.'' As described in the 
discussion of revisions in Sec.  641.720 below, grantees and the 
Department no longer are required to reach agreement on levels of 
performance prior to each year. Rather, per 2016 OAA sec. 513(a)(2)(C), 
agreement on levels of performance is now required to be reached every 
2 years, prior to each 2-year period of the SCSEP grants (that is, 
prior to the first program year and the third program year of the 
grant. The Department replaced the phrase ``before the start of each 
program year'' with a reference to Sec.  641.720.
    The Department made several changes to paragraph (b), which now 
reads ``Core measures,'' to align with the 2016 OAA's amendments to the 
measures. Many of these changes align SCSEP's performance measures to 
the performance measures established by WIOA for the title I core 
programs, as implemented in 20 CFR 677.155. First, the Department made 
a technical change to paragraph (b) to replace the outdated reference 
to the 2006 OAA with a reference to the OAA as amended. The Department 
has not revised the core measure for hours of community service 
employment implemented in paragraph (b)(1) because the 2016 OAA did not 
amend this measure.
    In paragraph (b)(2), the Department replaced the second core 
measure ``Entry into unsubsidized employment'' with the core measure 
``The percentage of project participants who are in unsubsidized 
employment during the second quarter after exit from the project.'' 
This core measure is required by OAA sec. 513(b)(1)(B) and aligns with 
the measure as described in sec. 116(b)(2)(A)(i)(I) of WIOA and 
implemented in 20 CFR 677.155(a)(1)(i), except that the WIOA statute 
uses the term ``program participants,'' rather than ``project 
participants.'' The revised performance measure is different from the 
former SCSEP measure in that the 2016 OAA now clarifies that entry into 
unsubsidized employment is to be measured during the second quarter 
after exit. Previously, the 2006 OAA statute did not state when the 
rate was measured, and the 2006 regulations required it to be measured 
at the first quarter after exit, which was consistent with the WIA 
performance measures at that time.
    Next, in paragraph (b)(3), the Department replaced the third core 
measure ``Retention in unsubsidized employment for six months'' with 
the core measure ``The percentage of project participants who are in 
unsubsidized employment during the fourth quarter after exit from the 
project.'' This core measure is required by OAA sec. 513(b)(1)(C) and 
aligns with the measure as described in sec. 116(b)(2)(A)(i)(II) of 
WIOA and implemented in 20 CFR 677.155(a)(1)(ii). This is a separate 
and distinct employment measure for the fourth quarter after exit, 
which measures the employment rate in that quarter. A participant will 
be counted as a positive outcome for this measure if he or she is 
employed in the fourth quarter after exit regardless of whether he or 
she was also employed in the second quarter after exit.
    In paragraph (b)(4), the Department replaced the fourth core 
measure ``Earnings,'' with the core measure ``The median earnings of 
project participants who are in unsubsidized employment during the 
second quarter after exit from the project.'' This core measure is 
required by OAA sec. 513(b)(1)(D) and aligns with the measure as 
described in sec. 116(b)(2)(A)(i)(III) of WIOA and implemented in 20 
CFR 677.155(a)(1)(iii). This performance measure gauges median earnings 
at the same time frame as the above measure gauges the employment rate 
of participants. The use of a median is a shift from the use of an 
average under WIA and is consistent with the requirements of WIOA.
    The Department added a fifth performance measure in paragraph 
(b)(5) for ``indicators of effectiveness in serving employers, host 
agencies, and project participants.'' This core measure is required by 
OAA sec. 513(b)(1)(E) and partially aligns with the WIOA measure, 
``effectiveness in serving employers,'' as described in sec. 
116(b)(2)(A)(i)(VI) of WIOA and implemented in 20 CFR 
677.155(a)(1)(vi). A similar measure for ``satisfaction of the 
participants, employers, and their host agencies with their experiences 
and the services provided'' was included as an additional measure in 
the 2006 OAA sec. 513(b)(2), which was not subject to goal-setting and 
corrective actions. (This same measure was also a core measure under 
the 2000 OAA amendments.) However, the 2016 OAA establishes this as a 
core measure of performance. This is further discussed below in the 
preamble text that corresponds to Sec.  641.710(e).
    To accommodate the newly added fifth core performance measure, the 
Department renumbered former paragraphs (b)(5) and (6) as paragraphs 
(b)(6) and (7), respectively, to contain the sixth and seventh core 
measures, which remain the same as they were under the 2006 OAA.
    As discussed above, the 2016 OAA removed the additional measures of 
performance that were previously found at sec. 513(b)(2) of the 2006 
OAA. Therefore, the Department has deleted former paragraphs (c)(1) 
through (4), ``Additional indicators,'' and has renumbered paragraphs 
(d) and (e) as (c) and (d), respectively. In addition, the Department 
has replaced the words ``indicators of performance and additional 
indicators of performance'' from the renumbered paragraph (c) with the 
word ``measures'', and has replaced the words ``indicators of 
performance and to report information on the additional indicators of 
performance'' from the renumbered paragraph (d) with the word 
``measures,'' to be consistent with the 2016 OAA amendments to these 
terms as described above.
    In addition to the regulatory text changes discussed above, various 
non-substantive changes have been made for purposes of correcting 
typographical errors and improving clarity.
Section 641.710 How are the performance measures defined?
    The Department revised the core indicator (now ``core measure'') 
definitions contained in this section to align with the revised core 
measures set forth in Sec.  641.700 of this IFR. As discussed below, 
the Department deleted the entirety of former paragraph (b) to remove 
the definitions for the former ``additional indicators,'' which the 
2016 OAA removed. Thus, as an initial change, the Department renumbered 
paragraphs (a)(1) through (6) to (a) through (g) (to include the 
definition for an added core measure, as discussed below).
    The Department did not revise paragraph (a), renumbered from former 
paragraph (a)(1), which contains the definition for the first core 
measure for hours of community service employment as currently 
implemented.
    In paragraph (b), renumbered from former paragraph (a)(2), the 
Department included a definition for the second performance measure, 
``percentage of project participants who are in unsubsidized employment 
during the second quarter after exit from the project.'' This 
performance measure is defined by the following formula: The number of 
participants who exited during the reporting period who are

[[Page 56874]]

employed in unsubsidized employment during the second quarter after the 
exit quarter, divided by the number of participants who exited during 
the reporting period. This figure will be multiplied by 100 and 
reported as a percentage. This definition aligns with the definition of 
the corresponding WIOA performance measure, as explained in Training 
and Employment Guidance Letter (TEGL) 10-16, Performance Accountability 
Guidance for Workforce Innovation and Opportunity Act (WIOA) Title I, 
Title II, Title III and Title IV Core Programs, published December 19, 
2016.
    In paragraph (c), renumbered from former paragraph (a)(3), the 
Department included a definition for the third performance measure, 
``percentage of project participants who are in unsubsidized employment 
during the fourth quarter after exit from the project.'' This 
performance measure is defined by the following formula: The number of 
participants who exited during the reporting period who are employed in 
unsubsidized employment during the fourth quarter after the exit 
quarter divided by the number of participants who exited during the 
reporting period, multiplied by 100 so as to be reported as a 
percentage. This definition aligns with the definition of the 
corresponding WIOA performance measure, as explained in TEGL 10-16.
    In paragraph (d), renumbered from former paragraph (a)(4), the 
Department included a definition for the fourth performance measure, 
``median earnings of project participants who are in unsubsidized 
employment during the second quarter after exit from the project.'' 
This performance measure is defined by the following formula: For all 
participants who exited and are in unsubsidized employment during the 
second quarter after the exit quarter: The wage that is at the midpoint 
(of all the wages) between the highest and lowest wage earned in the 
second quarter after the exit quarter. This definition aligns with the 
definition of the corresponding WIOA performance measure, as explained 
in TEGL 10-16.
    Several comments received during the stakeholder consultation 
described at the beginning of this preamble questioned the adoption of 
the median as opposed to the mean for the new measure of earnings. One 
comment suggested that the first year under the new measures be 
designated as a baseline year since the Department does not have the 
ability to determine what the impact the change in calculation will 
have on performance. The use of the median is required by the 2016 OAA 
and the Department has no discretion in this matter. The Department 
understands, however, that all three of the new outcome measures use 
different calculations from the measures currently in effect and that 
it will take some time to establish a reliable baseline to use in 
setting goals for these measures. To help determine how performance 
under the current measures relates to performance under the new 
measures as set forth in this IFR, the Department will reanalyze prior 
grantee performance data reported under the existing measures using the 
calculations required for the new measures as established by this IFR 
and to create a cross-walk between the two sets of measures. If that 
proves to be an inadequate basis for setting the Program Year (PY) 2018 
grantee goals, the Department will take that into consideration in the 
goal setting process and will take appropriate action. See discussion 
of Sec.  641.730 below.
    During the consultative process, one stakeholder raised the concern 
that the new employment outcome measures set forth in this IFR at 
paragraphs (b), (c), and (d) will be harder for grantees to achieve 
than the measures that have been in effect and will make the program 
overall seem less effective than it actually is. The Department 
addressed this comment in discussion of Sec.  641.740 below.
    The Department has added a definition in paragraph (e) for the 
fifth performance measure, ``effectiveness in serving employers, host 
agencies, and project participants.'' While this definition is similar 
to the definition used for this indicator under the 2006 OAA, when it 
was an additional indicator, the 2016 OAA revised the definition so 
that it focuses more specifically on effectiveness rather than 
satisfaction in general. The Department may revise the definition in 
paragraph (e) in the future once the Department finalizes the 
definition of the corresponding WIOA performance measure 
``effectiveness in serving employers''. For the WIOA core programs, the 
Department is initially implementing the effectiveness measure in the 
form of a pilot program. The pilot would allow several approaches 
(including wage records, the repeated use rate for employers' use of 
the core programs, and employers served) with the intent of assessing 
each approach, ultimately to develop a standardized measure.
    The Department received fifteen comments during the consultative 
process addressing this new core measure. Most comments assumed that 
the use of the current customer satisfaction surveys would continue for 
all or some of the three SCSEP customer groups, and several comments 
questioned how the Department would define ``effectiveness.''
     Six comments recommended that the administration of the 
employer survey be changed to include host agencies that hire SCSEP 
participants into unsubsidized jobs within their organizations. Under 
the survey administration procedures used for the existing measure, a 
host agency receives only a host agency survey (rather than an employer 
survey) even if the agency subsequently hires a participant assigned to 
it and thus becomes that individual's employer.
     One comment stated that effectiveness is different from 
satisfaction and suggested that the survey questions would need to 
change to encompass customers' assessment of effectiveness. Another 
comment recommended that field staff review and comment on any revised 
or new survey questions.
     One comment recommended that the surveys be distributed 
electronically and be available for distribution in hard copy as 
needed.
     Three comments recommended that SCSEP use the WIOA 
approach to piloting new measures of effectiveness in serving 
employers. One of these comments further suggested the extension of the 
WIOA pilot approach to host agencies, allowing SCSEP grantees to vote 
on which measures SCSEP as a whole would pilot, and the retention of 
the current participant customer satisfaction survey. This comment also 
recommended training sessions for the grantees on various approaches 
for determining pilot measures. Another of the three commenters who 
recommended piloting measures of effectiveness in serving employers 
recommended that the Department provide grantees with customer 
relationship management (CRM) software.
    The Department appreciates the suggestions about ways to measure 
effectiveness in serving SCSEP's customers that build and improve on 
the current method of surveying those customers. Although the new SCSEP 
measure of effectiveness parallels the language of the WIOA measure, it 
differs because it also measures the effectiveness in serving 
participants and host agencies, as well as employers. As the comments 
appear to acknowledge, the WIOA approach to the measure, which is being 
piloted until 2019, does not have obvious application to SCSEP's other 
two customer groups. As a result, for the SCSEP measure, the Department 
has decided to continue surveying all

[[Page 56875]]

three customer groups to assess the effectiveness of the services 
received as an interim measure at least until the WIOA pilot is 
complete and a WIOA measure is defined in final form. By using the same 
definition as that of the current customer satisfaction measure during 
this interim period, the Department will not require SCSEP customers to 
change their current practices or take on any additional burden. The 
Department welcomes comments on this measure.
    During this interim period, the Department will explore with 
grantees, and with its three customer groups, options for best 
measuring the effectiveness of SCSEP's services, including the 
suggestions made by the commenters. The Department will also explore 
ways to improve the efficiency of the current customer surveys 
(including the use of online surveys and changes to the administration 
of the employer survey) and will examine what, if any, new or revised 
questions would support an index of effectiveness as an alternative to 
the current index of satisfaction.
    To conform to the changes outlined above, the Department has 
renumbered former paragraph (a)(5) to (f). The Department also has 
renumbered former paragraph (a)(6)(i) through (xiii) to (g)(1) through 
(13). Renumbered paragraphs (f) and (g) correspond to the sixth and 
seventh SCSEP performance measures, the definitions of which are 
unchanged.
    Several comments regarding paragraph (g), the most-in-need measure, 
recommended adding ex-offender to the list of barriers to employment 
included in the statute for determining participants who are most in 
need of SCSEP services. The Department agrees that ex-offenders have 
serious and unique barriers to employment, but for purposes of this 
IFR, the Department will use the list provided in the statute. The 
Department also notes that ex-offender status is already incorporated 
into the most-in-need measure because it is a factor that would result 
in a participant having low employment prospects, one of the factors 
included in the most-in-need measure. However, as part of its review of 
the statistical model for the adjustment of grantee goals, the 
Department will consider whether ex-offender should be considered with 
the other participant characteristics currently used in the SCSEP 
model. See discussion of the statistical model in preamble text 
discussing Sec.  641.720.
    Another comment regarding the most-in-need measure stated that the 
current definition of frail, which is one of the barriers to employment 
that the statute includes in the most-in-need measure, is incorrect 
because it could require a grantee to enroll someone who is in a 
nursing home. This theoretical objection to the definition of frail 
misunderstands its use in the SCSEP performance system. Frail is not 
part of the eligibility determination and is not one of the priorities 
of service required by the OAA. Rather, it is an additional barrier to 
employment that a participant may develop during enrollment and that 
potentially entitles a participant to have an extended period of 
enrollment.
    Nineteen comments received during the consultation and additional 
comments received from three grantees after the consultation were 
addressed to how the Department would compute or define the performance 
measures (other than the measure, ``Indicators of effectiveness in 
serving employers, host agencies, and project participants,'' which is 
addressed below). Several comments related to how the exit cohorts 
would be defined and what the timing rules would be. These questions 
have been addressed by the definitions provided in this IFR and the 
discussion in other parts of this preamble. As set forth below, 
separate guidance will be provided on the technical aspects of the 
timing and reporting requirements.
    The 2016 OAA removed the additional indicators of performance that 
were previously established in sec. 513(b)(2) of the 2006 OAA. 
Therefore, the Department has deleted former paragraphs (b)(1) through 
(3) that contained definitions for the additional indicators.
    In addition to the regulatory text changes discussed above, various 
non-substantive changes have been made to the regulations for purposes 
of correcting typographical errors and improving clarity.
Section 641.720 How will the Department and grantees initially 
determine and then adjust expected levels of the core performance 
measures?
    The Department has made substantial revisions to this section to 
align with the 2016 OAA, which in large part mirrors the process for 
establishing the expected performance levels required by WIOA for the 
title I core programs, as implemented in 20 CFR 677.170.
    The revised paragraph (a), which requires agreement between the 
grantee and the Department for expected levels of performance for the 
first 2 program years of the grant, mirrors the statutory language in 
2016 OAA sec. 513(a)(2)(B) and (C)(i) and aligns with WIOA sec. 
116(b)(3)(A)(iv)(I). Specifically, paragraph (a) states that each 
grantee must reach agreement with the Department on levels of 
performance for each measure listed in Sec.  641.700 for each of the 
first 2 program years covered by the grant agreement. In reaching the 
agreement, the grantee and the Department must take into account the 
expected levels of performance proposed by the grantee and the factors 
described in paragraph (c) of this section. This paragraph also states 
that the levels agreed to will be considered to be the expected levels 
of performance for the grantee for such program years, and funds may 
not be awarded under the grant until such agreement is reached. Lastly, 
this paragraph states that, at the conclusion of negotiations 
concerning the performance levels with all grantees, the Department 
will make available for public review the final negotiated expected 
levels of performance for each grantee, including any comments 
submitted by the grantee regarding the grantee's satisfaction with the 
negotiated levels.
    The Department considers PY 2016 and PY 2017 to be the first 2 
program years under the current SCSEP grants. For national grantees, 
these were the first 2 program years following the last grant 
competition. For State grantees, these were the first 2 program years 
of the current SCSEP State Plans.
    The revised paragraph (b), which requires agreement for expected 
levels of performance for the third and fourth program years of the 
grant mirrors the statutory language provided in 2016 OAA sec. 
513(a)(2)(B) and (C)(ii) and in alignment with WIOA sec. 
116(b)(3)(A)(iv)(II). As explained above, the Department considers PY 
2018 and PY 2019 to be the third and fourth program years of the 
current SCSEP grant agreements. Specifically, paragraph (b) states that 
each grantee must reach agreement with the Department, prior to the 
third program year covered by the grant agreement, on levels of 
performance for each measure listed in Sec.  641.700, for each of the 
third and fourth program years of the grant. This paragraph states 
that, in reaching the agreement, the grantee and the Department must 
take into account the expected levels proposed by the grantee and the 
factors described in paragraph (c) of this section. This paragraph also 
states that the levels agreed to will be considered to be the expected 
levels of performance for the grantee for those program years. Lastly, 
like the requirement in paragraph (a), this paragraph states that, at 
the conclusion of negotiations concerning the performance levels with 
all grantees, the Department will make available for public review the 
final negotiated

[[Page 56876]]

expected levels of performance for each grantee, including any comments 
submitted by the grantee regarding the grantee's satisfaction with the 
negotiated levels.
    The Department has added a new paragraph (c), ``Factors,'' to 
require that the negotiated levels of performance must be based on the 
three factors listed in paragraphs (c)(1) through (3), as required by 
2016 OAA sec. 513(a)(2)(D) and in alignment with WIOA sec. 
116(b)(3)(A)(v). Paragraph (c)(1) states that the negotiated levels 
must take into account how a grantee's levels of performance compare 
with the expected levels of performance established for other grantees. 
See OAA sec. 513(a)(2)(D)(i) and WIOA sec. 116(b)(3)(A)(v)(I). 
Paragraph (c)(2) states that the negotiated levels must be adjusted 
using an objective statistical model based on the model established by 
the Department of Labor with the Department of Education in accordance 
with WIOA sec. 116(b)(3)(A)(viii) and implemented in Sec.  677.170(c). 
See 29 U.S.C. 3141(b)(3)(A)(viii), OAA sec. 513(a)(2)(D)(ii), and WIOA 
sec. 116(b)(3)(A)(v)(II). The objective statistical adjustment model 
will account for actual economic conditions and characteristics of 
participants, including the factors required by WIOA sec. 
116(b)(3)(A)(v)(II). Paragraph (c)(3) states that the negotiated levels 
must take into account the extent to which the levels involved promote 
continuous improvement in performance accountability on the core 
measures and ensure optimal return on the investment of Federal funds. 
See OAA sec. 513(a)(2)(D)(iii) and WIOA sec. 116(b)(3)(A)(v)(III).
    In paragraph (d), the Department revises the adjustment 
requirements contained in former paragraph (b). The Department has 
replaced the adjustment factors specified in former (b)(1) through (3) 
with the requirement that the Department will, in accordance with the 
objective statistical model developed pursuant to paragraph (c)(2), 
adjust the expected levels of performance for a program year for 
grantees to reflect the actual economic conditions and characteristics 
of participants in the corresponding projects during such program year. 
These revisions align with OAA sec. 513(a)(2)(E).
    For consistency with the 2016 OAA, the IFR removes the language in 
paragraphs (a)(1) through (3) of Sec.  641.720 that describes the 
negotiation process in detail. However, the negotiation process that 
the Department intends to use under these new performance measures is 
similar to the current process, and includes similar opportunities for 
input from the grantees:
     In the spring of 2018, the Department will analyze 
grantees' baseline performance and issue proposed goals for the next 2 
program years, PY 2018 and PY 2019, based on the new adjustment 
factors.
     If a grantee disagrees with those goals, it may propose 
its own goals and may request to negotiate.
     Prior to the negotiation, the grantee must provide the 
Department with the data on which the grantee's proposed goals are 
based.
     The grantee and Department must reach agreement before 
funds for the coming 2 program years can be approved; the agreed upon 
goals will be the expected levels of performance upon which the annual 
evaluation of grantee performance will be based. If the grantee and the 
Department fail to reach agreement, no funds may be released.
     At the conclusion of the negotiation, the grantee may 
submit comments regarding the grantee's satisfaction with the 
negotiated levels of performance, which the Department will publish, 
along with the expected levels of performance.
     At the time of the annual evaluation of grantee 
performance, the expected levels of performance will be adjusted a 
second time using the latest available adjustment data. The evaluation 
will be based on the newly adjusted levels of performance. See preamble 
discussion of Sec.  641.740.
     The same process will be followed for subsequent 2-year 
periods.
    In addition to the regulatory text changes discussed above, various 
non-substantive changes have been made for purposes of correcting 
typographical errors and improving clarity.
    Eight comments addressed the negotiation process. Several comments 
raised questions about the use of a statistical model based on WIOA to 
adjust grantee goals, and one, noting that SCSEP already uses such a 
model, questioned what changes the Department anticipates. This comment 
is correct that SCSEP has long used a statistical model to adjust 
grantee goals. The model considers environmental factors like rates of 
unemployment and poverty and takes account of participant 
characteristics that may make some participants harder to serve than 
others. This model is similar to the model employed by WIA and the 
model recently adopted by WIOA. The Department will re-examine this 
model to determine if additional aspects of the WIOA model should be 
incorporated into the SCSEP model or if other changes are appropriate. 
(One comment suggested accounting for the percentage of participants 
who reside in rural areas.) The Department will provide the model to 
grantees prior to the first negotiations under the new performance 
measures, as requested by one of the comments.
    One comment suggested that all grantees operating within a State 
should have the same goals because conditions within the State are 
essentially the same for all grantees. The statute requires that in 
negotiating goals, the parties consider both the expected levels of 
performance for other grantees and the promotion of continuous 
improvement. Both factors require consideration of the circumstances of 
each grantee. Furthermore, the only grantees operating within a State, 
in addition to the State grantee, are national grantees. National 
grantees only have goals at the overall grantee level, not at the State 
level. In addition, the adjustments that are made to grantee goals are 
based, to the greatest extent practicable, on factors that prevail in 
the specific service area of each grantee. Because very few grantees 
serve an entire State uniformly, SCSEP uses data at a county level to 
customize the adjustments for all grantees, both State and national.
    Nine comments received during the consultation and additional 
comments received from three grantees after the consultation addressed 
the implementation of the new measures. Most of these questioned when 
the new measures would be effective and what the effect would be of 
collecting data for the new employment outcome measures and the old 
outcome measures since they will overlap for the first 4 quarters that 
the new measures are effective. The new measures being implemented by 
this IFR by promulgation on December 1, 2017 will become effective 30 
days after publication. By effective, the Department means that they 
will be used during the second half of PY 2017, to negotiate the goals 
for PYs 2018 and 2019. Performance under the PY 2018 goals will begin 
to be reported starting July 1, 2018. The SCSEP Quarterly Progress 
Report (QPR) for PY 2017, will be based on the current measures, and 
the QPRs for PY 2018, will be based on the measures established in this 
IFR.
    SCSEP participants who exit during PY 2017, when goals based on the 
current measures are still in effect, will have their performance 
reported under the old measures for PY 2017. For this same cohort of 
exiters, reporting for the core employment outcome measures would also 
take place throughout PY 2018, under the new measures set forth in this 
IFR and would be reflected in the grantees' PY 2018 QPRs. For example, 
a

[[Page 56877]]

participant who exits in Quarter 3 of PY 2017, will be included in the 
previous entered employment measure for Quarter 4 of PY 2017; this 
participant will also be reported in the IFR's new measure of 
employment in the second quarter after exit in Quarter 1 of PY 2018. 
Since the underlying data required for the new measures that will be 
reported in PY 2018 are the same data required for the existing 
measures, grantees will have to follow different timing rules for the 
collection of data in PY 2018, but they will not be required to collect 
any new or additional data beyond the data they would have reported 
under the old measures. The Department will provide technical 
assistance and guidance on the new timing and reporting requirements.
    A related comment asked is when reporting on the current SCSEP 
additional measures would cease. As with the existing core measures, 
the grantees will collect data for the additional measures not carried 
forward in this IFR throughout PY 2017, and the final QPR for PY 2017 
will be the last report of the additional measures.
    Many comments urged the Department to obtain the access to 
unemployment insurance (UI) wage records for SCSEP in order to ease the 
burden of case management follow-up for purposes of collecting 
performance data. One comment recommended that the Department allow 
those grantees that were able to access wage records locally do so even 
if other grantees could not have access and had to continue using case 
management follow-up. Another comment recommended that if the 
Department is unable to secure access to wage records, the Department 
should adopt less stringent standards for case management follow-up.
    The Department understands that case management follow-up is a 
costly and not always effective means of obtaining performance data. 
The Department is investigating access to UI wage records for all SCSEP 
grantees, but until such access occurs, all grantees must continue 
using case management follow-up. Using different methods of data 
collection would compromise the consistency of the performance measures 
and would potentially provide an unfair advantage to those grantees 
with access to wage records. In the meantime, the Department will 
review the standards for case management follow-up as set forth in 
various guidance materials, will confer with grantees about the changes 
in procedures desired, and will issue revised guidance if appropriate.
    Many comments questioned whether the current exclusions from exit 
for purposes of the employment outcome measures will be continued, and 
several recommended that they be continued. As part of its adoption of 
the WIA common measures in PY 2007, SCSEP has been following the WIA 
exclusions. With the 2016 OAA's adoption of the measures consistent 
with the WIOA primary indicators of performance, SCSEP will examine the 
revised WIOA exclusions and will issue revised guidance as appropriate.
Section 641.730 How will the Department assist grantees in the 
transition to the new core performance measures?
    The Department has made several changes in this section to update 
the Department's transition assistance plans to correspond with the 
2016 OAA. First, as a non-substantive change, the Department has 
deleted the designation of paragraph (a) and its title ``General 
transition provision'' because the Department has deleted paragraph 
(b), as discussed below. This section now includes only two sentences.
    The first sentence as revised by this IFR now states that, as soon 
as practicable after the IFR becomes effective, the Department will 
determine whether a SCSEP grantee's performance under the measures in 
effect prior to the effective date of this IFR would have met the 
expected levels of performance for PY 2018. The second sentence as 
revised by this IFR now states that if the Department determines that a 
grantee would have failed to meet those expected levels of performance, 
then the Department will provide technical assistance to help the 
grantee to eventually meet the expected levels of performance under the 
measures in Sec.  641.700, as those measures are revised by this IFR.
    The Department will only make the above determination for the three 
new employment outcome measures, defined in Sec.  641.710(b) through 
(d) of this IFR, since no transition is required for the remaining four 
core measures (three are unchanged, and for the fourth, the 
``indicators of effectiveness in serving employers, host agencies, and 
participants,'' the Department will use the same customer satisfaction 
measure that was used before the IFR). In making the determination, the 
Department intends to examine all relevant data, as feasible, in order 
to provide a cross-walk between the existing measures and the measures 
implemented in this IFR and to develop a new baseline from which to 
begin the development of goals for PY 2018 and PY 2019. The Department 
will provide the analysis to all grantees as soon as it is complete.
    As noted above, this IFR removes paragraph (b) from Sec.  641.730, 
which provided that PY 2007 would be treated as a baseline year for the 
most-in-need indicator so that grantees and the Department may collect 
sufficient data to set a meaningful goal for the measure for PY 2008. 
Since this provision included dates that have already passed, and the 
Department has documented information on this measure, this provision 
is no longer required and has been deleted from this section.
Section 641.740 How will the Department determine whether a grantee 
fails, meets, or exceeds the expected levels of performance and what 
will be the consequences of failing to meet expected levels of 
performance?
    With the exception of the technical changes noted below, the 
Department has not made any changes to this section.
    In paragraph (a), the Department has deleted the reference to 
national grantees because the evaluation process applies identically to 
both national grantees and State grantees. The Department has also 
added a reference to Sec.  641.720(d) when referring to the adjustments 
to the grantee goals.
    In paragraph (b)(1)(iii) regarding recompetition for national 
grantees, the Department has deleted the parenthetical ``(beginning 
with Program Year 2007),'' after ``any national grantee that has failed 
to meet the expected levels of performance for 4 consecutive years'' to 
align with the 2016 OAA, which removed this phrase from OAA sec. 
513(d)(2)(B)(iii). Due to this deletion, the ``4 consecutive years'' 
may include years under the measures in effect prior to this IFR with 
years under the new measures implemented by this IFR.
    In paragraph (b)(2)(iii) regarding competition for State grantees, 
the Department has deleted the parenthetical ``(beginning with Program 
Year 2007),'' after ``if the Department determines that the State fails 
to meet the expected levels of performance for 3 consecutive Program 
Years'' to align with the 2016 OAA, which removed this phrase from OAA 
sec. 513(d)(3)(B)(iii). Similar to the deletion in paragraph 
(b)(1)(iii), due to this deletion, the ``3 consecutive years'' may 
include years under the measures in effect prior to this IFR with years 
under the new measures implemented by this IFR.
    In paragraph (c) regarding evaluation, the Department has revised 
this paragraph to state that, for purposes of evaluation, the core 
measures of

[[Page 56878]]

performance will be compared to the expected levels of performance 
established under Sec.  641.720 (including any adjustments to such 
levels made in accordance with Sec.  641.720(d)). The Department has 
deleted the former provision that the core measures also would be 
compared to ``the actual performance of each grantee with respect to 
the levels achieved for each of the additional indicators of 
performance.'' As discussed above, the Department has removed all 
references to ``additional indicators'' throughout part 641 to align 
with the 2016 OAA, which removed reference to additional indicators of 
performance not subject to goal-setting and corrective actions that 
were previously established in sec. 513(b)(2) of the 2006 OAA. This 
paragraph now states, ``The Department will annually evaluate, publish 
and make available for public review, information on the actual 
performance of each grantee with respect to the levels achieved for 
each of the core measures of performance, compared to the expected 
levels of performance established under Sec.  641.720 (including any 
adjustments to such levels made in accordance with Sec.  641.720(d)).''
    One commenter questioned the impact of the new requirement to 
negotiate performance goals 2 years at a time on the assessment of 
grantee performance. Although the Department and the grantees will now 
negotiate performance goals for 2 years at a time, the Department will 
continue to assess whether grantees have met their expected level of 
performance at the end of each program year based on whether grantees 
have met their goals for that completed program year.
    Two comments noted that SCSEP goals are already hard to meet 
because older workers are harder to place than other job seekers. SCSEP 
has been using the WIA common employment outcome measures since July 1, 
2007; the replacement of those measures with the WIOA core employment 
measures is not intended to change the basic approach of the 
negotiation process or to negate the focus on serving low-income 
seniors. In general, SCSEP has consistently met or exceeded its 
performance goals under the current measures, and the Department does 
not envision that the new measures will change that level of 
performance.
Section 641.750 Will there be performance-related incentives?
    The Department has updated the reference to the OAA to reflect the 
2016 OAA reauthorization amendments.

III. Rulemaking Analyses and Notices

Regulatory Flexibility Analysis, Executive Order 13272, 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 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 rule imposes a significant economic impact on a substantial 
number of such small entities.
    There are 75 SCSEP grantees; 50 of these are States and are not 
small entities as defined by the RFA. Six grantees are governmental 
jurisdictions other than States (four grantees are territories such as 
Guam, one grantee is Washington, DC, and another grantee is Puerto 
Rico). Governmental jurisdictions must have a population of less than 
50,000 to qualify as a small entity for RFA purposes and the population 
of these 6 SCSEP grantees each exceeds 50,000. The remaining 19 
grantees are non-profit organizations, which includes some large 
national non-profit organizations.
    The Department has determined that this Interim Final Rule will 
impose no additional burden on small entities affected. Since the 
alignment with WIOA involved only definitions, the grantees are not 
required to collect any additional information that may cause a burden 
increase. In addition, all costs are covered by the SCSEP program funds 
provided to grantees.
    The Departments certifies that this Interim Final Rule does not 
impose a significant economic impact on a substantial number of small 
entities.

Executive Order 12866

    Under Executive Order 12866, the Office of Management and Budget's 
(OMB's) Office of Information and Regulatory Affairs determines whether 
a regulatory action is significant and, therefore, subject to the 
requirements of the Executive Order and review by OMB. 58 FR 51735. 
Section 3(f) of Executive Order 12866 defines a ``significant 
regulatory action'' as an action that is likely to result in a rule 
that: (1) Has an annual effect on the economy of $100 million or more, 
or adversely affects in a material way a sector of the economy, 
productivity, competition, jobs, the environment, public health or 
safety, or State, local or tribal governments or communities (also 
referred to as economically significant); (2) creates serious 
inconsistency or otherwise interferes with an action taken or planned 
by another agency; (3) materially alters the budgetary impacts of 
entitlement grants, user fees, or loan programs, or the rights and 
obligations of recipients thereof; or (4) raises novel legal or policy 
issues arising out of legal mandates, the President's priorities, or 
the principles set forth in the Executive Order. Id. OMB has determined 
that this interim final rule is not a ``significant regulatory action'' 
under section 3(f) of Executive Order 12866.
    This rule is not an EO 13771 regulatory action because this rule is 
not significant under EO 12866.
    Executive Order 13563 directs agencies to propose or adopt a 
regulation only upon a reasoned determination that its benefits justify 
its costs; it is tailored to impose the least burden on society, 
consistent with achieving the regulatory objectives; and in choosing 
among alternative regulatory approaches, the agency has selected those 
approaches that maximize net benefits. Executive Order 13563 recognizes 
that some benefits are difficult to quantify and provides that, where 
appropriate and permitted by law, agencies may consider and discuss 
qualitatively values that are difficult or impossible to quantify, 
including equity, human dignity, fairness, and distributive impacts.
    OMB declined review of this IFR because it is not a significant 
regulatory action. As previously noted, the alignment with WIOA 
involved only definitions, and grantees are not required to collect any 
additional information that may cause a burden increase.

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.
    As part of its continuing effort to reduce paperwork and respondent 
burden, the Department conducts a preclearance consultation program to 
provide the public and Federal agencies with an opportunity to comment 
on proposed and continuing collections of information in accordance 
with the PRA. See 44 U.S.C. 3506(c)(2)(A). This activity helps to 
ensure that the public understands the Department's collection 
instructions, respondents can provide

[[Page 56879]]

the requested data in the desired format, reporting burden (time and 
financial resources) is minimized, collection instruments are clearly 
understood, and the Department can properly assess the impact of 
collection requirements on respondents.
    A Federal agency may not conduct or sponsor a collection of 
information unless it is approved by OMB under the PRA and displays a 
currently valid OMB control number. The public is also not required to 
respond to a collection of information unless it displays a currently 
valid OMB control number. In addition, notwithstanding any other 
provisions of law, no person will 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 (44 
U.S.C. 3512).
    As part of its effort to streamline program performance reporting, 
the Department revised the Workforce Innovation and Opportunity Act 
(WIOA) Performance Accountability, Information and Reporting System 
(OMB Control Number 1205-0521) information collection by adding the 
performance information collection requirements for SCSEP. The 
Department notes that the SCSEP information collection will retain its 
current approval (under OMB Control Number 1205-0040) for data elements 
not contained in the revised WIOA Performance Accountability, 
Information and Reporting System.
    The Department provided opportunities for the public to comment on 
the information collection through notices in the Federal Register that 
provided comment periods on the associated forms and instructions. This 
comment period provided at least 60 days for comments to be submitted 
to the agency. The ICRs was then submitted for OMB approval, and the 
Department published notices in the Federal Register that invited 
comments to be sent to OMB for a period lasting at least 30 days. The 
Department will publish a Federal Register Notice shortly to 
incorporate the information collection provisions of this Interim Final 
Rule.
    The information collection is summarized as follows.
Workforce Innovation and Opportunity Act Performance Accountability, 
Information, and Reporting System
    Agency: DOL-ETA.
    Title of Collection: ETA Workforce Innovation and Opportunity Act 
Performance Accountability, Information, and Reporting System.
    Type of Review: Revision.
    OMB Control Number: 1205-0521.
    Affected Public: State, Local, and Tribal Governments; Individuals 
or Households; and Private Sector--businesses or other for-profits and 
not-for-profit institutions.
    Obligation to Respond: Required to Obtain or Retain Benefits.
    Estimated Total Annual Respondents: 17,532,542.
    Estimated Total Annual Responses: 35,064,970.
    Estimated Total Annual Burden Hours: 8,938,029.
    Regulations sections: Sec.  684.420, Sec.  684.610, Sec.  684.700, 
Sec.  684.800, Sec.  685.210, Sec.  685.400, Sec.  688.420, Sec.  
688.610. 641.700, Sec.  641.710, Sec.  641.720, Sec.  641.730, Sec.  
641.740, Sec.  641.750.

Unfunded Mandates Reform Act

    For purposes of the Unfunded Mandates Reform Act of 1995, this rule 
does not include any Federal mandate that may result in increased 
expenditures by State, local, and tribal governments in the aggregate 
of more than $100 million, or increased expenditures by the private 
sector of more than $100 million.

Executive Order 13132

    The Department has reviewed this 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 Interim 
Final Rule defines and implements performance measures for the SCSEP 
and while States are SCSEP grantees, this rule merely makes changes to 
data collection processes that are ongoing. Requiring State grantees to 
implement these changes does not constitute a ``substantial direct 
effect'' on the States, nor will it alter the relationship or 
responsibilities between the Federal and State governments.

Executive Order 13045

    Executive Order 13045 concerns the protection of children from 
environmental health risks and safety risks. This rule defines and 
details the performance measures use by the SCSEP, a program for older 
Americans, and 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 Interim Final Rule and concludes 
that it does not have tribal implications. While some tribes may be 
recipients of national SCSEP grantees, this rule will not have a 
substantial direct effect on those tribes because, as outlined in the 
Regulatory Flexibility Act section of the preamble above, there are 
only small cost increases associated with implementing this regulation. 
This regulation does not affect the relationship between the Federal 
Government and the tribes, nor does it affect the distribution of power 
and responsibilities between the Federal Government and Tribal 
Governments. Accordingly, we conclude that this rule does not have 
tribal implications for the purposes of Executive Order 13175.

Environmental Impact Assessment

    The Department has reviewed this rule in accordance with the 
requirements of the National Environmental Policy Act of 1969 (NEPA) 
(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 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 effect 
on families must be supported with an adequate rationale.
    The Department has assessed this rule and determines that it will 
not have a negative effect on families. Indeed, we

[[Page 56880]]

believe the SCSEP strengthens families by providing job training and 
support services to low-income older Americans so that they can obtain 
fruitful employment and enjoy increased economic self-sufficiency.

Privacy Act

    The Privacy Act of 1974, 5 U.S.C. 552a, provides safeguards to 
individuals concerning their personal information that the Government 
collects. The Act requires certain actions by an agency that collects 
information on individuals when that information contains personally 
identifiable information such as SSNs or names. Because SCSEP 
participant records are maintained by SSN, the Act applies here.
    A key concern is for the protection of participant SSNs. Grantees 
must collect the SSN in order to properly pay participants for their 
community service work in host agencies. When participant files are 
sent to the Department for aggregation, the transmittal is protected by 
secure encryption. When participant files are retrieved within the 
internet-based SCSEP data management system of SPARQ, only the last 
four digits of the SSN are displayed. Any information that is shared or 
made public is aggregated by grantee and does not reveal personal 
information on specific individuals.
    The Department works diligently to ensure the highest level of 
security whenever personally identifiable information is stored or 
transmitted. All contractors that have access to individually 
identifying information are required to provide assurances that they 
will respect and protect the confidentiality of the data. ETA's Office 
of Performance and Technology has been an active participant in the 
development and approval of data security measures--especially as they 
apply to SPARQ.
    In addition to the above, a Privacy Act Statement is provided to 
grantees for distribution to all participants. The grantees were 
advised of the requirement in ETA's Older Worker Bulletin OWB-04-06. 
Participants receive this information when they meet with a case worker 
or intake counselor. When the programs are monitored, implementation of 
this term is included in the review.

Executive Order 12630

    This 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 regulation has been drafted and reviewed in accordance with 
Executive Order 12988, Civil Justice Reform, and will not unduly burden 
the Federal court system. The 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 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 Interim Final Rule in plain language.

List of Subjects in 20 CFR Part 641

    Aged, Employment, Government contracts, Grant programs-labor, 
Privacy, Reporting and recordkeeping requirements.

    For the reasons discussed in the preamble, the Department of Labor 
amends 20 CFR part 641 as follows:

PART 641--PROVISIONS GOVERNING THE SENIOR COMMUNITY SERVICE 
EMPLOYMENT PROGRAM

0
 1. Revise the authority citation for part 641 to read as follows:

    Authority:  42 U.S.C. 3056 et seq.; Pub. L. 114-144, 130 Stat. 
334 (Apr. 19, 2016).


0
2. Amend Sec.  641.100 by revising the introductory text and paragraph 
(b) to read as follows:

Subpart A--Purpose and Definitions


Sec.  641.100  . What does this part cover?

    Part 641 contains the Department of Labor's regulations for the 
Senior Community Service Employment Program (SCSEP), authorized under 
title V of the Older Americans Act (OAA), 42 U.S.C. 3056 et seq., as 
amended by the Older Americans Act Reauthorization Act of 2016, Public 
Law 114-144 (Apr. 19, 2016). This part and other pertinent regulations 
set forth the regulations applicable to the SCSEP.
* * * * *
    (b) Subpart B of this part describes the required relationship 
between the OAA and the Workforce Innovation and Opportunity Act 
(WIOA), Public Law 113-128 (July 22, 2014). These provisions discuss 
the coordinated efforts to provide services through the integration of 
the SCSEP within the One-Stop delivery system.
* * * * *

0
3. Amend Sec.  641.140 as follows:
0
a. Remove the definition of ``Additional indicators''.
0
b. Add the definition of ``Career services,'' in alphabetical order.
0
c. Revise the definition of ``Co-enrollment''.
0
d. Add the definition of ``Community Service Employment'' in 
alphabetical order.
0
e. Remove the definition of ``Core indicators''.
0
f. Add the definition of ``Core measures'' in alphabetical order.
0
g. Remove the definitions of ``Core services'' and ``Intensive 
services''.
0
h. Revise the definition of ``Local Board''.
0
i. Add the definition of ``Local Workforce Development Area'' in 
alphabetical order.
0
j. Remove the definition of ``Local Workforce Investment Area or local 
area''.
0
k. Revise the definitions of ``Most-in-need,'' ``One-Stop Center,'' 
``One-Stop delivery system,'' ``One-Stop partner,'' ``Pacific Island 
and Asian Americans,'' ``State Board,'' ``Supportive services,'' 
``Training services,'' and ``Unemployed''.
0
l. Remove the definition of ``Volunteer work''.
0
m. Add the definitions of ``Workforce Innovation and Opportunity Act 
(WIOA),'' and ``Workforce Innovation and Opportunity Act (WIOA) 
regulations'' in alphabetical order.
0
n. Remove the definitions of ``Workforce Investment Act (WIA),'' and 
``Workforce Investment Act (WIA) regulations''.
    The additions and revisions read as follows:


Sec.  641.140   What definitions apply to this part?

* * * * *
    Career services means those services described in sec. 134(c)(2) of 
WIOA.
    Co-enrollment applies to any individual who meets the 
qualifications for SCSEP participation and is also enrolled as a 
participant in WIOA or another employment and training program, as 
provided in the Individual Employment Plan (IEP).
* * * * *
    Community Service Employment means part-time, temporary employment 
paid with grant funds in projects at host agencies through which 
eligible individuals are engaged in community service and receive work 
experience and job skills that can lead to unsubsidized employment. 
(OAA sec. 518(a)(2).) The term community service assignment is used 
interchangeably with community service employment.
* * * * *

[[Page 56881]]

    Core measures means hours (in the aggregate) of community service 
employment; the percentage of project participants who are in 
unsubsidized employment during the second quarter after exit from the 
project; the percentage of project participants who are in unsubsidized 
employment during the fourth quarter after exit from the project; the 
median earnings of project participants who are in unsubsidized 
employment during the second quarter after exit from the project; 
indicators of effectiveness in serving employers, host agencies, and 
project participants; the number of eligible individuals served; and 
most-in-need (the number of individuals described in sec. 
518(a)(3)(B)(ii) or (b)(2) of the OAA). (OAA sec. 513(b)(1).)
* * * * *
    Local Board means a Local Workforce Development Board established 
under sec. 107 of the Workforce Innovation and Opportunity Act.
    Local Workforce Development Area or local area means an area 
designated by the Governor of a State under sec. 106 of the Workforce 
Innovation and Opportunity Act.
* * * * *
    Most-in-need means participants with one or more of the following 
characteristics: Have a severe disability; are frail; are age 75 or 
older; are age-eligible but not receiving benefits under title II of 
the Social Security Act; reside in an area with persistent unemployment 
and have severely limited employment prospects; have limited English 
proficiency; have low literacy skills; have a disability; reside in a 
rural area; are veterans; have low employment prospects; have failed to 
find employment after using services provided under title I of the 
Workforce Innovation and Opportunity Act; or are homeless or at risk 
for homelessness. (OAA sec. 513(b)(1)(F).)
* * * * *
    One-Stop Center means the One-Stop Center system in a WIOA local 
area, which must include a comprehensive One-Stop Center through which 
One-Stop partners provide applicable career services and which provides 
access to other programs and services carried out by the One-Stop 
partners. (See WIOA sec. 121(e)(2).)
    One-Stop delivery system means a system under which employment and 
training programs, services, and activities are available through a 
network of eligible One-Stop partners, which assures that information 
about and access to career services are available regardless of where 
the individuals initially enter the workforce development system. (See 
WIOA sec. 121(e)(2).)
    One-Stop partner means an entity described in sec. 121(b)(1) of the 
Workforce Innovation and Opportunity Act, i.e., required partners, or 
an entity described in sec. 121(b)(2) of the Workforce Innovation and 
Opportunity Act, i.e., additional partners.
* * * * *
    Pacific Island and Asian Americans means Americans having origins 
in any of the original peoples of the Far East, Southeast Asia, the 
Indian Subcontinent, or the Pacific Islands. (OAA sec. 518(a)(6).)
* * * * *
    State Board means a State Workforce Development Board established 
under WIOA sec. 101.
* * * * *
    Supportive services means services, such as transportation, health 
and medical services, special job-related or personal counseling, 
incidentals (such as work shoes, badges, uniforms, eye-glasses, and 
tools), child and adult care, housing, including temporary shelter, 
follow-up services, and needs-related payments, which are necessary to 
enable an individual to participate in activities authorized under the 
SCSEP. (OAA secs. 502(c)(6)(A)(iv) and 518(a)(8).)
* * * * *
    Training services means those services authorized by WIOA sec. 
134(c)(3).
* * * * *
    Unemployed means an individual who is without a job and who wants 
and is available for work, including an individual who may have 
occasional employment that does not result in a constant source of 
income. (OAA sec. 518(a)(9).)
* * * * *
    Workforce Innovation and Opportunity Act (WIOA) means the Workforce 
Innovation and Opportunity Act, Public Law 113-128 (July 22, 2014), as 
amended.
    Workforce Innovation and Opportunity Act (WIOA) regulations means 
the regulations in parts 675 through 688 of this chapter, the Wagner-
Peyser Act regulations in parts 651 through 654 and part 658 of this 
chapter, and the regulations implementing WIOA sec. 188 in 29 CFR part 
38.

0
4. Revise subpart B to read as follows:
Subpart B--Coordination With the Workforce Innovation and Opportunity 
Act
Sec.
641.200 What is the relationship between the SCSEP and the Workforce 
Innovation and Opportunity Act?
641.210 What services, in addition to the applicable career 
services, must SCSEP grantees and sub-recipients provide through the 
One-Stop delivery system?
641.220 Does title I of WIOA require the SCSEP to use OAA funds for 
individuals who are not eligible for SCSEP services or for services 
that are not authorized under the OAA?
641.230 Must the individual assessment conducted by the SCSEP 
grantee or sub-recipient and the assessment performed by the One-
Stop delivery system be accepted for use by either entity to 
determine the individual's need for services in the SCSEP and adult 
programs under title I, subtitle B of WIOA?
641.240 Are SCSEP participants eligible for career and training 
services under title I of WIOA?

Subpart B--Coordination With the Workforce Innovation and 
Opportunity Act


Sec.  641.200   What is the relationship between the SCSEP and the 
Workforce Innovation and Opportunity Act?

    The SCSEP is a required partner under the Workforce Innovation and 
Opportunity Act. As such, it is a part of the One-Stop delivery system. 
When acting in their capacity as WIOA partners, SCSEP grantees and sub-
recipients are required to follow all applicable rules under WIOA and 
its regulations. See WIOA sec. 121(b)(1)(B)(v) and 20 CFR 678.400 
through 678.440.


Sec.  641.210   What services, in addition to the applicable career 
services, must SCSEP grantees and sub-recipients provide through the 
One-Stop delivery system?

    In addition to providing career services, as defined at 20 CFR 
678.430, SCSEP grantees and sub-recipients must make arrangements 
through the One-Stop delivery system to provide eligible and ineligible 
individuals with referrals to WIOA career and training services and 
access to other activities and programs carried out by other One-Stop 
partners.


Sec.  641.220   Does title I of WIOA require the SCSEP to use OAA funds 
for individuals who are not eligible for SCSEP services or for services 
that are not authorized under the OAA?

    No, SCSEP requirements continue to apply. OAA title V resources may 
not be used to serve individuals who are not SCSEP-eligible. The 
Workforce Innovation and Opportunity Act creates a seamless service 
delivery system for individuals seeking workforce development services 
by linking the One-Stop partners in the One-Stop delivery system. 
Although the overall effect is to provide universal access to

[[Page 56882]]

career services, SCSEP resources may only be used to provide services 
that are authorized and provided under the SCSEP to eligible 
individuals. Note, however, that one allowable SCSEP cost is a SCSEP 
project's proportionate share of One-Stop costs. See Sec.  641.850(d). 
Title V funds can be used to pay wages to SCSEP participants receiving 
career and training services under title I of WIOA provided that the 
SCSEP participants have each received a community service assignment. 
All other individuals who are in need of the services provided under 
the SCSEP, but who do not meet the eligibility criteria to enroll in 
the SCSEP, should be referred to or enrolled in WIOA or other 
appropriate partner programs. WIOA sec. 121(b)(1). These arrangements 
should be negotiated in the Memorandum of Understanding (MOU), which is 
an agreement developed and executed between the Local Workforce 
Development Board, with the agreement of the chief local elected 
official, and the One-Stop partners relating to the operation of the 
One-Stop delivery system in the local area. The MOU is further 
described in the WIOA regulations at 20 CFR 678.500 through 678.510.


Sec.  641.230   Must the individual assessment conducted by the SCSEP 
grantee or sub-recipient and the assessment performed by the One-Stop 
delivery system be accepted for use by either entity to determine the 
individual's need for services in the SCSEP and adult programs under 
title I, subtitle B of WIOA?

    Yes, sec. 502(b)(3) of the OAA provides that an assessment or IEP 
completed by the SCSEP satisfies any condition for an assessment, 
service strategy, or IEP completed at the One-Stop and vice-versa. (OAA 
sec. 502(b)(3).) These reciprocal arrangements and the contents of the 
SCSEP IEP and WIOA IEP should be negotiated in the MOU.


Sec.  641.240   Are SCSEP participants eligible for career and training 
services under title I of WIOA?

    (a) Although SCSEP participants are not automatically eligible for 
career and training services under title I of WIOA, local boards may 
deem SCSEP participants, either individually or as a group, as 
satisfying the requirements for receiving adult career and training 
services under title I of WIOA.
    (b) SCSEP participants who have been assessed and for whom an IEP 
has been developed have received a career service under 20 CFR 
680.220(a) of the WIOA regulations. In order to enhance skill 
development related to the IEP, it may be necessary to provide training 
beyond the community service assignment to enable participants to meet 
their unsubsidized employment objectives. The SCSEP grantee or sub-
recipient, the host agency, the WIOA program, or another One-Stop 
partner may provide training as appropriate and as negotiated in the 
MOU. (See Sec.  641.540 for a further discussion of training for SCSEP 
participants.)

Subpart C--The State Plan

0
5. Revise Sec.  641.300 to read as follows:


Sec.  641.300   What is the State Plan?

    The State Plan is a plan, submitted by the Governor, or the highest 
government official, in each State, as an independent document or as 
part of the WIOA Combined State Plan, that outlines a 4-year strategy 
for the statewide provision of community service employment and other 
authorized activities for eligible individuals under the SCSEP as 
described in Sec.  641.302. The State Plan also describes the planning 
and implementation process for SCSEP services in the State, taking into 
account the relative distribution of eligible individuals and 
employment opportunities within the State. The State Plan is intended 
to foster coordination among the various SCSEP grantees and sub-
recipients operating within the State and to facilitate the efforts of 
stakeholders, including State and local boards under WIOA, to work 
collaboratively through a participatory process to accomplish the 
SCSEP's goals. (OAA sec. 503(a)(1).) The State Plan provisions are 
listed in Sec.  641.325.

0
 6. Amend Sec.  641.302 by revising paragraphs (f) and (g) to read as 
follows:


Sec.  641.302   What is a four-year strategy?

* * * * *
    (f) The State's strategy for continuous improvement in the level of 
performance for entry into unsubsidized employment;
    (g) Planned actions to coordinate activities of SCSEP grantees with 
the activities being carried out in the State under title I of WIOA, 
including plans for using the WIOA One-Stop delivery system and its 
partners to serve individuals aged 55 and older;
* * * * *

0
7. Amend Sec.  641.315 by revising paragraph (a)(2) to read as follows:


Sec.  641.315   Who participates in developing the State Plan?

    (a) * * *
    (2) State and local boards under WIOA;
* * * * *

0
 8. Amend Sec.  641.320 by revising paragraph (b) to read as follows:


Sec.  641.320   Must all national grantees operating within a State 
participate in the State planning process?

* * * * *
    (b) National grantees serving older American Indians, or Pacific 
Island and Asian Americans, with funds reserved under OAA sec. 
506(a)(3), are exempted from the requirement to participate in the 
State planning processes under sec. 503(a)(9) of the OAA. Although 
these national grantees may choose not to participate in the State 
planning process, the Department encourages their participation. Only 
those grantees using reserved funds are exempt; if a grantee is awarded 
one grant with reserved funds and another grant with non-reserved 
funds, the grantee is required under paragraph (a) of this section to 
participate in the State planning process for purposes of the non-
reserved funds grant.

0
 9. Amend Sec.  641.325 by revising paragraphs (c), (d), (e), and (f) 
to read as follows:


Sec.  641.325   What information must be provided in the State Plan?

* * * * *
    (c) The current and projected employment opportunities in the State 
(such as by providing information available under sec. 15 of the 
Wagner-Peyser Act (29 U.S.C. 49l-2) by occupation), and the types of 
skills possessed by eligible individuals;
    (d) The localities and populations for which projects of the type 
authorized by OAA title V are most needed;
    (e) Actions taken and/or planned to coordinate activities of SCSEP 
grantees in the State with activities carried out in the State under 
title I of WIOA;
    (f) A description of the process used to obtain advice and 
recommendations on the State Plan from representatives of organizations 
and individuals listed in Sec.  641.315, and advice and recommendations 
on steps to coordinate SCSEP services with activities funded under 
title I of WIOA from representatives of organizations listed in Sec.  
641.335;
* * * * *

0
 10. Revise Sec.  641.335 to read as follows:


Sec.  641.335   How should the Governor, or the highest government 
official, address the coordination of SCSEP services with activities 
funded under title I of WIOA?

    The Governor, or the highest government official, must seek the 
advice and recommendations from representatives of the State and local

[[Page 56883]]

area agencies on aging in the State and the State and local boards 
established under title I of WIOA. (OAA sec. 503(a)(2).) The State Plan 
must describe the steps that are being taken to coordinate SCSEP 
activities within the State with activities being carried out under 
title I of WIOA. (OAA sec. 503(a)(4)(F).) The State Plan must describe 
the steps being taken to ensure that the SCSEP is an active partner in 
each One-Stop delivery system and the steps that will be taken to 
encourage and improve coordination with the One-Stop delivery system.

0
 11. Amend Sec.  641.365 by revising paragraph (a) to read as follows:


Sec.  641.365   How must the equitable distribution provisions be 
reconciled with the provision that disruptions to current participants 
should be avoided?

    (a) Governors, or highest government officials, must describe in 
the State Plan the steps that are being taken to comply with the 
statutory requirement to avoid disruptions in the provision of services 
for participants. (OAA sec. 503(a)(7).)
* * * * *

0
12. Add Sec.  641.370 to subpart C to read as follows:


Sec.  641.370   May a State incorporate its 4-year plan for SCSEP into 
a Combined State Plan under WIOA?

    Yes. A State may include its 4-year plan for SCSEP in its WIOA 
Combined State Plan according to the requirements in 20 CFR 676.140 
through 676.145. For a State that obtains approval of that Combined 
State Plan under 20 CFR 676.143, the requirements of sec. 103 of WIOA 
and 20 CFR part 676 will apply in lieu of sec. 503(a) of the OAA and 
this subpart, and any reference in this part to a ``State Plan'' will 
be considered to be a reference to that Combined State Plan.

Subpart D--Grant Application and Responsibility Review Requirements 
for State and National SCSEP Grants

0
13. Amend Sec.  641.410 by revising paragraph (c) to read as follows:


Sec.  641.410   How does an eligible entity apply?

* * * * *
    (c) State applicants. A State that submits a Combined State Plan 
under sec. 103 of WIOA may include the State's SCSEP grant application 
in its Combined State Plan. Any State that submits a SCSEP grant 
application as part of its WIOA Combined State Plan must address all of 
the application requirements as published in the Department's 
instructions. Sections 641.300 through 641.370 address State Plans and 
modifications.

Subpart E--Services to Participants

0
14. Revise Sec.  641.500 to read as follows:


Sec.  641.500   Who is eligible to participate in the SCSEP?

    Anyone who is at least 55 years old, unemployed (as defined in 
Sec.  641.140), and who is a member of a family with an income that is 
not more than 125 percent of the family income levels prepared by the 
Department of Health and Human Services and approved by OMB (Federal 
poverty guidelines) is eligible to participate in the SCSEP. (OAA sec. 
518(a)(3), (9).) A person with a disability may be treated as a 
``family of one'' for income eligibility determination purposes at the 
option of the applicant.

0
15. Revise Sec.  641.512 to read as follows:


Sec.  641.512   May grantees and sub-recipients enroll otherwise 
eligible job ready individuals and place them directly into 
unsubsidized employment?

    No, grantees and sub-recipients may not enroll as SCSEP 
participants job-ready individuals who can be directly placed into 
unsubsidized employment. Such individuals should be referred to an 
employment provider, such as the One-Stop Center for job placement 
assistance under WIOA or another employment program.

0
16. Amend Sec.  641.535 by revising paragraphs (a)(2)(ii), (a)(3)(i), 
and (a)(7) to read as follows:


Sec.  641.535   What services must grantees and sub-recipients provide 
to participants?

    (a) * * *
    (2) * * *
    (ii) Performing an initial assessment upon program entry, unless an 
assessment has already been performed under title I of WIOA as provided 
in Sec.  641.230. Subsequent assessments may be made as necessary, but 
must be made no less frequently than two times during a 12-month period 
(including the initial assessment);
    (3)(i) Using the information gathered during the initial assessment 
to develop an IEP that includes an appropriate employment goal for each 
participant, except that if an assessment has already been performed 
and an IEP developed under title I of WIOA, the WIOA assessment and IEP 
will satisfy the requirement for a SCSEP assessment and IEP as provided 
in Sec.  641.230;
* * * * *
    (7) Providing appropriate services for participants, or referring 
participants to appropriate services, through the One-Stop delivery 
system established under WIOA (OAA sec. 502(b)(1)(O));
* * * * *

0
17. Amend Sec.  641.540 by revising paragraph (c) to read as follows:


Sec.  641.540   What types of training may grantees and sub-recipients 
provide to SCSEP participants in addition to the training received at a 
community service assignment?

* * * * *
    (c) Training may be in the form of lectures, seminars, classroom 
instruction, individual instruction, online instruction, and on-the-job 
experiences. Training may be provided by the grantee or through other 
arrangements, including but not limited to, arrangements with other 
workforce development programs such as WIOA. (OAA sec. 
502(c)(6)(A)(ii).)
* * * * *

0
18. Amend Sec.  641.545 by revising paragraph (a) to read as follows:


Sec.  641.545   What supportive services may grantees and sub-
recipients provide to participants?

    (a) Grantees and sub-recipients are required to assess all 
participants' need for supportive services and to make every effort to 
assist participants in obtaining needed supportive services. Grantees 
and sub-recipients may provide directly or arrange for supportive 
services that are necessary to enable an individual to successfully 
participate in a SCSEP project, including but not limited to payment of 
reasonable costs of transportation; health and medical services; 
special job-related or personal counseling; incidentals such as work 
shoes, badges, uniforms, eyeglasses, and tools; dependent care; 
housing, including temporary shelter; needs-related payments; and 
follow-up services. (OAA secs. 502(c)(6)(A)(iv), 518(a)(8).)
* * * * *

0
19. Amend Sec.  641.565 by revising paragraph (a)(1)(ii) to read as 
follows:


Sec.  641.565   What policies govern the provision of wages and 
benefits to participants?

    (a) * * *
    (1) * * *
    (ii) SCSEP participants may be paid the highest applicable required 
wage while receiving WIOA career services.
* * * * *

[[Page 56884]]

Subpart F--Pilot, Demonstration, and Evaluation Projects

0
20. Amend Sec.  641.630 by revising the section heading and paragraph 
(b)(2) to read as follows:


Sec.  641.630  What pilot, demonstration, and evaluation project 
activities are allowable under the Older Americans Act?

* * * * *
    (b) * * *
    (2) Improve the provision of services to eligible individuals under 
One-Stop delivery systems established under title I of WIOA;
* * * * *

0
21. Revise subpart G to read as follows:
Subpart G--Performance Accountability
Sec.
641.700 What performance measures apply to Senior Community Service 
Employment Program grantees?
641.710 How are the performance measures defined?
641.720 How will the Department and grantees initially determine and 
then adjust expected levels of the core performance measures?
641.730 How will the Department assist grantees in the transition to 
the new core performance measures?
641.740 How will the Department determine whether a grantee fails, 
meets, or exceeds the expected levels of performance and what will 
be the consequences of failing to meet expected levels of 
performance?
641.750 Will there be performance-related incentives?

Subpart G--Performance Accountability


Sec.  641.700  What performance measures apply to Senior Community 
Service Employment Program grantees?

    (a) Measures of performance. There are seven core performance 
measures. Core measures (defined in Sec.  641.710) are subject to goal-
setting and corrective action (described in Sec.  641.720); that is, 
performance level goals for each core measure must be agreed upon 
between the Department and each grantee as described in Sec.  641.720, 
and if a grantee fails to meet the performance level goals for the core 
measures, that grantee is subject to corrective action.
    (b) Core measures. Section 513(b)(1) of the OAA establishes the 
following core measures of performance:
    (1) Hours (in the aggregate) of community service employment;
    (2) The percentage of project participants who are in unsubsidized 
employment during the second quarter after exit from the project;
    (3) The percentage of project participants who are in unsubsidized 
employment during the fourth quarter after exit from the project;
    (4) The median earnings of project participants who are in 
unsubsidized employment during the second quarter after exit from the 
project;
    (5) Indicators of effectiveness in serving employers, host 
agencies, and project participants;
    (6) The number of eligible individuals served; and
    (7) The number of most-in-need individuals served (the number of 
participating individuals described in OAA sec. 518(a)(3)(B)(ii) or 
(b)(2)).
    (c) Affected entities. The core measures of performance are 
applicable to each grantee without regard to whether such grantee 
operates the program directly or through sub-contracts, sub-grants, or 
agreements with other entities. Grantees must assure that their sub-
grantees and lower-tier sub-grantees are collecting and reporting 
program data.
    (d) Required evaluation and reporting. An agreement to be evaluated 
on the core measures of performance is a requirement for application 
for, and is a condition of, all SCSEP grants.


Sec.  641.710  How are the performance measures defined?

    The core measures are defined as follows:
    (a) ``Hours of community service employment'' is defined as the 
total number of hours of community service provided by SCSEP 
participants divided by the number of hours of community service funded 
by the grantee's grant, after adjusting for differences in minimum wage 
among the States and areas. Paid training hours are excluded from this 
measure.
    (b) ``The percentage of project participants who are in 
unsubsidized employment during the second quarter after exit from the 
project'' is defined by the formula: The number of participants who 
exited during the reporting period who are employed in unsubsidized 
employment during the second quarter after the exit quarter divided by 
the number of participants who exited during the reporting period 
multiplied by 100.
    (c) ``The percentage of project participants who are in 
unsubsidized employment during the fourth quarter after exit from the 
project'' is defined by the formula: The number of participants who 
exited during the reporting period who are employed in unsubsidized 
employment during the fourth quarter after the exit quarter divided by 
the number of participants who exited during the reporting period 
multiplied by 100.
    (d) ``The median earnings of project participants who are in 
unsubsidized employment during the second quarter after exit from the 
project'' is defined by the formula: For all participants who exited 
and are in unsubsidized employment during the second quarter after the 
exit quarter: The wage that is at the midpoint (of all the wages) 
between the highest and lowest wage earned in the second quarter after 
the exit quarter.
    (e) ``Indicators of effectiveness in serving employers, host 
agencies, and project participants'' is defined as the combined results 
of customer assessments of the services received by each of these three 
customer groups.
    (f) ``The number of eligible individuals served'' is defined as the 
total number of participants served divided by a grantee's authorized 
number of positions, after adjusting for differences in minimum wage 
among the States and areas.
    (g) ``Most-in-need'' or the number of participating individuals 
described in OAA sec. 518(a)(3)(B)(ii) or (b)(2) is defined by counting 
the total number of the following characteristics for all participants 
and dividing by the number of participants served. Participants are 
characterized as most-in-need if they:
    (1) Have a severe disability;
    (2) Are frail;
    (3) Are age 75 or older;
    (4) Meet the eligibility requirements related to age for, but do 
not receive, benefits under title II of the Social Security Act (42 
U.S.C. 401 et seq.);
    (5) Live in an area with persistent unemployment and are 
individuals with severely limited employment prospects;
    (6) Have limited English proficiency;
    (7) Have low literacy skills;
    (8) Have a disability;
    (9) Reside in a rural area;
    (10) Are veterans;
    (11) Have low employment prospects;
    (12) Have failed to find employment after utilizing services 
provided under title I of the Workforce Innovation and Opportunity Act; 
or
    (13) Are homeless or at risk for homelessness.


Sec.  641.720  How will the Department and grantees initially determine 
and then adjust expected levels of the core performance measures?

    (a) First 2 years. Before the beginning of the first program year 
of the grant, each grantee must reach agreement with the Department on 
levels of performance for each measure listed in Sec.  641.700 for each 
of the first 2 program years covered by the grant agreement. In 
reaching the agreement, the grantee and the Department must take into 
account

[[Page 56885]]

the expected levels of performance proposed by the grantee and the 
factors described in paragraph (c) of this section.
    The levels agreed to will be considered the expected levels of 
performance for the grantee for such program years. Funds may not be 
awarded under the grant until such agreement is reached. At the 
conclusion of negotiations concerning the performance levels with all 
grantees, the Department will make available for public review the 
final negotiated expected levels of performance for each grantee, 
including any comments submitted by the grantee regarding the grantee's 
satisfaction with the negotiated levels.
    (b) Third and fourth year. Each grantee must reach agreement with 
the Department prior to the third program year covered by the grant 
agreement, on levels of performance for each measure listed in Sec.  
641.700, for each of the third and fourth program years so covered. In 
reaching the agreement, the grantee and the Department must take into 
account the expected levels of performance proposed by the grantee and 
the factors described in paragraph (c) of this section. The levels 
agreed to will be considered to be the expected levels of performance 
for the grantee for such program years. Funds may not be awarded under 
the grant until such agreement is reached. At the conclusion of 
negotiations concerning the performance levels with all grantees, the 
Department will make available for public review the final negotiated 
expected levels of performance for each grantee, including any comments 
submitted by the grantee regarding the grantee's satisfaction with the 
negotiated levels.
    (c) Factors. In reaching the agreements described in paragraphs (a) 
and (b) of this section, each grantee and the Department must:
    (1) Take into account how the levels involved compare with the 
expected levels of performance established for other grantees;
    (2) Ensure that the levels involved are adjusted, using an 
objective statistical model based on the model established by the 
Secretary of Labor with the Secretary of Education in accordance with 
sec. 116(b)(3)(A)(viii) of the Workforce Innovation and Opportunity Act 
(29 U.S.C. 3141(b)(3)(A)(viii)); and
    (3) Take into account the extent to which the levels involved 
promote continuous improvement in performance accountability on the 
core measures and ensure optimal return on the investment of Federal 
funds.
    (d) Adjustments based on economic conditions and individuals served 
during the program year. The Department will, in accordance with the 
objective statistical model developed pursuant to paragraph (c)(2) of 
this section, adjust the expected levels of performance for a program 
year for grantees to reflect the actual economic conditions and 
characteristics of participants in the corresponding projects during 
such program year.


Sec.  641.730  How will the Department assist grantees in the 
transition to the new core performance measures?

    As soon as practicable after January 2, 2018, the Department will 
determine if a SCSEP grantee's performance under the measures in effect 
prior to January 2, 2018 would have met the expected levels of 
performance for the Program Year 2018. If the Department determines 
that the grantee would have failed to meet the Program Year 2018 
expected levels of performance, the Department will provide technical 
assistance to help the grantee to transition to eventually meet the 
expected levels of performance under the measures in Sec.  641.700.


Sec.  641.740  How will the Department determine whether a grantee 
fails, meets, or exceeds the expected levels of performance and what 
will be the consequences of failing to meet expected levels of 
performance?

    (a) Aggregate calculation of performance. Not later than 120 days 
after the end of each program year, the Department will determine if a 
grantee has met the expected levels of performance including any 
adjustments to such levels made in accordance with Sec.  641.720(d) by 
aggregating the grantee's core measures. The aggregate is calculated by 
combining the percentage of goal achieved on each of the individual 
core measures to obtain an average score. A grantee will fail to meet 
its performance measures when it is does not meet 80 percent of the 
agreed-upon level of performance for the aggregate of all the core 
measures. Performance in the range of 80 to 100 percent constitutes 
meeting the level for the core performance measures. Performance in 
excess of 100 percent constitutes exceeding the level for the core 
performance measures.
    (b) Consequences--(1) National grantees. (i) If the Department 
determines that a national grantee fails to meet the expected levels of 
performance in a program year, as described in paragraph (a) of this 
section, the Department, after each year of such failure, will provide 
technical assistance and will require such grantee to submit a 
corrective action plan not later than 160 days after the end of the 
program year.
    (ii) The corrective action plan must detail the steps the grantee 
will take to meet the expected levels of performance in the next 
program year.
    (iii) Any national grantee that has failed to meet the expected 
levels of performance for 4 consecutive years will not be allowed to 
compete in the subsequent grant competition, but may compete in the 
next grant competition after that subsequent competition.
    (2) State grantees. (i) If the Department determines that a State 
fails to meet the expected levels of performance, as described in 
paragraph (a) of this section, the Department, after each year of such 
failure, will provide technical assistance and will require the State 
to submit a corrective action plan not later than 160 days after the 
end of the program year.
    (ii) The corrective action plan must detail the steps the State 
will take to meet the expected levels of performance in the next 
program year.
    (iii) If the Department determines that the State fails to meet the 
expected levels of performance for 3 consecutive program years the 
Department will require the State to conduct a competition to award the 
funds allotted to the State under sec. 506(e) of the OAA for the first 
full program year following the Department's determination. The new 
grantee will be responsible for administering the SCSEP in the State 
and will be subject to the same requirements and responsibilities as 
had been the State grantee.
    (c) Evaluation. The Department will annually evaluate, publish and 
make available for public review, information on the actual performance 
of each grantee with respect to the levels achieved for each of the 
core measures of performance, compared to the expected levels of 
performance established under Sec.  641.720 (including any adjustments 
to such levels made in accordance with Sec.  641.720(d)). The results 
of the Department's annual evaluation will be reported to Congress.


Sec.  641.750  Will there be performance-related incentives?

    The Department is authorized by OAA secs. 502(e)(2)(B)(iv) and 
517(c)(1) to use recaptured SCSEP funds to provide incentive awards. 
The Department will exercise this authority at its discretion.

Subpart H--Administrative Requirements

0
22. Amend Sec.  641.827 by revising paragraph (b) to read as follows:

[[Page 56886]]

Sec.  641.827  What general nondiscrimination requirements apply to the 
use of SCSEP funds?

* * * * *
    (b) Recipients and sub-recipients of SCSEP funds are required to 
comply with the nondiscrimination provisions codified in the 
Department's regulations at 29 CFR part 38 if:
    (1) The recipient:
    (i) Is a One-Stop partner listed in sec. 121(b) of WIOA, and
    (ii) Operates programs and activities that are part of the One-Stop 
delivery system established under WIOA; or
    (2) The recipient otherwise satisfies the definition of 
``recipient'' in 29 CFR 38.4.
* * * * *

0
23. Amend Sec.  641.833 by revising paragraph (a) to read as follows:


Sec.  641.833   What policies govern political patronage?

    (a) A recipient or sub-recipient must not select, reject, promote, 
or terminate an individual based on political services provided by the 
individual or on the individual's political affiliations or beliefs. In 
addition, as provided in Sec.  641.827(b), certain recipients and sub-
recipients of SCSEP funds are required to comply with WIOA 
nondiscrimination regulations in 29 CFR part 38. These regulations 
prohibit discrimination on the basis of political affiliation or 
belief.
* * * * *

0
24. Amend Sec.  641.850 by revising paragraph (d) to read as follows:


Sec.  641.850   Are there other specific allowable and unallowable cost 
requirements for the SCSEP?

* * * * *
    (d) One-Stop costs. Costs of participating as a required partner in 
the One-Stop delivery system established in accordance with sec. 121(e) 
of WIOA are allowable, provided that SCSEP services and funding are 
provided in accordance with the MOU required by WIOA and OAA sec. 
502(b)(1)(O), and costs are determined in accordance with the 
applicable cost principles. The costs of services provided by the 
SCSEP, including those provided by participants/enrollees, may comprise 
a portion or the total of a SCSEP project's proportionate share of One-
Stop costs.
* * * * *

Subpart I--Grievance Procedures and Appeals Process

0
25. Amend Sec.  641.910 by revising paragraph (d) to read as follows:


Sec.  641.910   What grievance procedures must grantees make available 
to applicants, employees, and participants?

* * * * *
    (d) Questions about, or complaints alleging a violation of, the 
nondiscrimination requirements of title VI of the Civil Rights Act of 
1964, sec. 504 of the Rehabilitation Act of 1973, sec. 188 of the 
Workforce Innovation and Opportunity Act (WIOA), or their implementing 
regulations, may be directed or mailed to the Director, Civil Rights 
Center, U.S. Department of Labor, Room N-4123, 200 Constitution Avenue 
NW., Washington, DC 20210. In the alternative, complaints alleging 
violations of WIOA sec. 188 may be filed initially at the grantee 
level. See 29 CFR 38.69, 38.72. In such cases, the grantee must use 
complaint processing procedures meeting the requirements of 29 CFR 
38.69 through 38.76 to resolve the complaint.

0
26. Amend Sec.  641.920 by revising paragraph (b) to read as follows:


Sec.  641.920   What actions of the Department may a grantee appeal and 
what procedures apply to those appeals?

* * * * *
    (b) Appeals of suspension or termination actions taken on the 
grounds of discrimination are processed under 29 CFR part 31 or 29 CFR 
part 38, as appropriate.
* * * * *

Rosemary Lahasky,
Deputy Assistant Secretary for Employment and Training, Labor.
[FR Doc. 2017-25834 Filed 11-30-17; 8:45 am]
BILLING CODE 4510-FN-P