Page 603 TITLE 29—LABOR § 1517

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(B) Recapture or withholding

(i) Determination

If the Secretary determines, upon appeal

under subparagraph (A), that the Governor

has not provided appropriate technical assistance as required under paragraph (2),

the Secretary shall recapture or withhold

an amount not to exceed one-fifth of the

State administration set-aside allotted

under section 1602(c)(1)(A) of this title and

under section 1642(c)(1)(A) of this title. The

Secretary shall use funds recaptured or

withheld under this subparagraph to provide appropriate technical assistance.

(ii) Basis

If the Secretary approved the technical

assistance plan provided by the Governor

under paragraph (2), a determination under

this subparagraph shall only be based on

failure to effectively implement such plan

and shall not be based on the plan itself.

(7) Appeal by Governor

A Governor of a State that is subject to recapture or withholding under paragraph (5) or

(6)(B) may, within 30 days of receiving notice

thereof, appeal such withholding to the Secretary.

(k) Clarification or 1 reference

For the purposes of this section, the term

‘‘employment’’ means employment for 20 or

more hours per week.

(Pub. L. 97–300, title I, §106, Oct. 13, 1982, 96 Stat.

1333; Pub. L. 97–404, §1(b), Dec. 31, 1982, 96 Stat.

2026; Pub. L. 99–496, §15(b), Oct. 16, 1986, 100 Stat.

1266; Pub. L. 100–418, title VI, §6304(a), Aug. 23,

1988, 102 Stat. 1538; Pub. L. 100–628, title VII,

§§713(b), 714(b), Nov. 7, 1988, 102 Stat. 3255, 3256;

Pub. L. 102–367, title I, §115(a), Sept. 7, 1992, 106

Stat. 1030; Pub. L. 104–193, title I, §110(n)(2), Aug.

22, 1996, 110 Stat. 2174.)

REFERENCES IN TEXT

The Federal Insurance Contributions Act, referred to

in subsec. (b)(6)(C), is act Aug. 16, 1954, ch. 736, §§3101,

3102, 3111, 3112, 3121 to 3128, 68A Stat. 415, as amended,

which is classified generally to chapter 21 (§3101 et seq.)

of Title 26, Internal Revenue Code. For complete classification of this Act to the Code, see section 3128 of Title

26 and Tables.

The Social Security Act, referred to in subsec.

(b)(6)(C), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as

amended. Part A of title IV of the Act is classified generally to part A (§601 et seq.) of subchapter IV of chapter 7 of Title 42, The Public Health and Welfare. For

complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.

AMENDMENTS

1996—Subsec. (b)(6)(C). Pub. L. 104–193 substituted

‘‘records collected under the State program funded

under part A of title IV of the Social Security Act,’’ for

‘‘State aid to families with dependent children

records,’’

1992—Pub. L. 102–367 amended section generally, substituting subsecs. (a) to (k) for former subsecs. (a) to

(h) which also related to performance standards for programs under this chapter.

1988—Subsec. (b)(5). Pub. L. 100–628, §714(b), added

par. (5).

Subsec. (e). Pub. L. 100–628, §713(b), designated existing provision as par. (1) and added par. (2).

Pub. L. 100–418, §6304(a)(1), inserted reference to subsec. (g) of this section and directed the insertion of

‘‘and in substate areas’’ after ‘‘State’’, which was executed by making the insertion after ‘‘State’’ the first

place it appeared to reflect the probable intent of Congress.

Subsec. (g). Pub. L. 100–418, §6304(a)(2), designated existing provisions as par. (1) and added par. (2).

1986—Subsec. (d)(3). Pub. L. 99–496 inserted reference

to disabled and Vietnam era veterans, including veterans who served in the Indochina Theater between Aug.

5, 1964, and May 7, 1975.

1982—Subsec. (d)(3). Pub. L. 97–404 substituted ‘‘offenders’’ for ‘‘ex-offenders’’.

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104–193 effective July 1, 1997,

with transition rules relating to State options to accelerate such date, rules relating to claims, actions, and

proceedings commenced before such date, rules relating

to closing out of accounts for terminated or substantially modified programs and continuance in office of

Assistant Secretary for Family Support, and provisions

relating to termination of entitlement under AFDC

program, see section 116 of Pub. L. 104–193, as amended,

set out as an Effective Date note under section 601 of

Title 42, The Public Health and Welfare.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102–367 effective July 1, 1993,

with Secretary of Labor required to issue revised performance standards under the amendments made by

section 115 of Pub. L. 102–367 (amending this section

and sections 1661 and 1662a of this title), as soon as Secretary determines sufficient data are available, but not

later than July 1, 1994, except that with respect to the

factor of retention in unsubsidized employment specified in subsec. (b)(3)(B) of this section, the requirement

that such retention be for not less than 6 months is effective not later than July 1, 1995, see section 701(a) and

(b) of Pub. L. 102–367, set out as an Effective Date of

1992 Amendment; Transition Provisions note under section 1501 of this title.

EFFECTIVE DATE OF 1988 AMENDMENT; TRANSITION

PROVISIONS

Amendment by Pub. L. 100–418 effective for program

years beginning on or after July 1, 1989, except as

otherwise provided, see section 6305 of Pub. L. 100–418,

formerly set out as an Effective Date; Transition Provisions note under section 1651 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1511, 1514, 1518,

1602, 1604, 1633, 1642, 1661, 1662a, 1671, 1672 of this title;

title 8 section 1522; title 20 section 2325.

§ 1517. Selection of service providers

(a) Effectiveness in terms of plan primary consideration

The primary consideration in selecting agencies or organizations to deliver services within a

service delivery area shall be the effectiveness

of the agency or organization in delivering comparable or related services based on demonstrated performance,1 (in accordance with

guidelines established by the Secretary), in

terms of the likelihood of meeting performance

goals, cost, quality of training, and characteristics of participants. In addition, consideration

shall be given to demonstrated performance in

making available appropriate supportive serv-
§ 1518 TITLE 29—LABOR Page 604

2So in original. Probably should be ‘‘this’’. 1So in original. Probably should be ‘‘part’’.

ices, including child care. In complying with

this subsection, proper consideration shall be

given to community-based organizations as

service providers.

(b) No needless duplication of local facilities or

services

Funds provided under this chapter shall not be

used to duplicate facilities or services available

in the area (with or without reimbursement)

from Federal, State, or local sources, unless it is

demonstrated that alternative services or facilities would be more effective or more likely to

achieve the service delivery area’s performance

goals.

(c) Opportunity for local educational agencies

Appropriate education agencies in the service

delivery area shall be provided the opportunity

to provide educational services, unless the administrative entity demonstrates that alternative agencies or organizations would be more

effective or would have greater potential to enhance the participants’ continued occupational

and career growth.

(d) Skills training program to meet private industry council guidelines

The administrative entity shall not fund any

occupational skills training program unless the

level of skills provided in the program are in accordance with guidelines established by the private industry council.

(e) Additional requirements for selection

The selection of service providers shall be

made on a competitive basis to the extent practicable, and shall include—

(1) a determination of the ability of the service provider to meet program design specifications established by the administrative entity

that take into account the purposes of the 2

chapter and the goals established in the Governor’s coordination and special services plan;

and

(2) documentation of compliance with procurement standards established by the Governor under section 1574 of this title, including

the reasons for selection.

(Pub. L. 97–300, title I, §107, Oct. 13, 1982, 96 Stat.

1335; Pub. L. 102–367, title I, §116, Sept. 7, 1992,

106 Stat. 1034.)

AMENDMENTS

1992—Subsec. (a). Pub. L. 102–367, §116(a), inserted

‘‘, (in accordance with guidelines established by the

Secretary)’’ after ‘‘demonstrated performance’’ and inserted after first sentence ‘‘In addition, consideration

shall be given to demonstrated performance in making

available appropriate supportive services, including

child care.’’

Subsec. (e). Pub. L. 102–367, §116(b), added subsec. (e).

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102–367 effective July 1, 1993,

see section 701(a) of Pub. L. 102–367, set out as an Effective Date of 1992 Amendment; Transition Provisions

note under section 1501 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1514, 1531, 1661b

of this title.

§ 1518. Limitation on certain costs

(a) Application of cost limitations

Except as provided in subparagraph (A) or (B)

of section 1551(d)(3) of this title, funds expended

under this chapter shall be charged to the appropriate cost categories.

(b) Cost categories and limitations

(1) The cost limitations contained in this subsection shall apply separately to the funds allocated for programs under part A of subchapter II

of this chapter, and to the funds allocated for

programs under part C of such subchapter.

(2) Funds expended under parts A and C of subchapter II of this chapter shall be charged to one

of the following categories:

(A) Administration.

(B) Training-related and supportive services.

(C) Direct training services.

(3) The Secretary shall, consistent with sections 1604(b) and 1644(c) of this title, define by

regulation the cost categories specified in paragraph (2).

(4) Of the funds allocated to a service delivery

area for any program year under parts 1 A or C

of subchapter II of this chapter—

(A) not more than 20 percent shall be expended for administration; and

(B) not less than 50 percent shall be expended for direct training services.

(5) Each service delivery area shall ensure that

for all services provided to participants through

contracts, grants, or other agreements with a

service provider, such contract, grant, or agreement shall include appropriate amounts necessary for administration and supportive services.

(6) For purposes of paragraph (4), the term ‘‘allocated’’ means allocated for a program year, as

adjusted for reallocations and reallotments

under section 1519 of this title and for transfers

of funds under sections 1606, 1635, and 1646 of this

title.

(c) Reference to limitations

Funds available under subchapter III of this

chapter shall be expended in accordance with

the limitations specified in section 1661d of this

title.

(d) Limitations inapplicable

The provisions of this section do not apply to

any service delivery area designated pursuant to

section 1511(a)(4)(A)(iii) of this title.

(e) No exemption from performance standards

This section shall not be construed to exempt

programs under an approved plan from the performance standards established under section

1516 of this title.

(Pub. L. 97–300, title I, §108, Oct. 13, 1982, 96 Stat.

1336; Pub. L. 97–404, §1(c), Dec. 31, 1982, 96 Stat.

2026; Pub. L. 99–496, §15(c), Oct. 16, 1986, 100 Stat.

1266; Pub. L. 102–367, title I, §117, Sept. 7, 1992,

106 Stat. 1035.)

AMENDMENTS

1992—Subsec. (a). Pub. L. 102–367, §117(a), amended

subsec. (a) generally. Prior to amendment, subsec. (a)