§ 1661c TITLE 29—LABOR Page 656

quired by section 1515(b)(1), (2), and (3) of this

title. If a substate grantee fails to submit a

plan, or submits a plan that is not approved by

the Governor in accordance with such section,

the Governor may direct the expenditure of

funds allocated to the substate area until such

time as a plan is submitted and approved or a

new substate grantee is designated under section 1661a of this title.

(d) By-pass authority

If a substate grantee fails to expend funds allocated to it in accordance with its plan, the

Governor may, subject to appropriate notice and

opportunity for comment in the manner required by section 1515(b)(1), (2), and (3) of this

title, direct the expenditure of funds in accordance with the substate plan until—

(1) the substate grantee corrects the failure,

(2) the substate grantee submits an acceptable modification to its plan pursuant to subsection (a) of this section, or

(3) a new substate grantee is designated

under section 1661a of this title.

(Pub. L. 97–300, title III, §313, as added Pub. L.

100–418, title VI, §6302(a), Aug. 23, 1988, 102 Stat.

1531.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1661a, 1661c,

1661f of this title.

§ 1661c. Use of funds; services to be provided

(a) In general

Funds allotted under section 1652 of this title

may be used—

(1) to provide rapid response assistance in

accordance with subsection (b) of this section;

(2) to deliver, coordinate, and integrate basic

readjustment services and support services in

accordance with subsection (c) of this section;

(3) to provide retraining services in accordance with subsection (d) of this section;

(4) to provide needs-related payments in accordance with subsection (e) of this section;

and

(5) to provide for coordination with the unemployment compensation system in accordance with subsection (f) of this section.

(b) Rapid response assistance

(1) The dislocated worker unit required by section 1661(b)(2) of this title shall include specialists who may use funds available under this subchapter—

(A) to establish on-site contact with employer and employee representatives within a

short period of time (preferably 48 hours or

less) after becoming aware of a current or projected permanent closure or substantial layoff

in order to—

(i) provide information on and facilitate

access to available public programs and

services; and

(ii) provide emergency assistance adapted

to the particular closure or layoff;

(B) to promote the formation of labor-management committees, by providing—

(i) immediate assistance in the establishment of the labor-management committee,

including providing immediate financial assistance to cover the start-up costs of the

committee;

(ii) a list of individuals from which the

chairperson of the committee may be selected;

(iii) technical advice as well as information on sources of assistance, and liaison

with other public and private services and

programs; and

(iv) assistance in the selection of worker

representatives in the event no union is

present;

(C) to collect information related to—

(i) economic dislocation (including potential closings or layoffs); and

(ii) all available resources within the State

for displaced workers,

which information shall be made available on

a regular basis to the Governor and the State

job training coordinating council to assist in

providing an adequate information base for effective program management, review, and

evaluation;

(D) to provide or obtain appropriate financial and technical advice and liaison with economic development agencies and other organizations to assist in efforts to avert worker dislocations;

(E) to disseminate information throughout

the State on the availability of services and

activities carried out by the dislocated worker

unit or office; and

(F) to assist the local community in developing its own coordinated response and in obtaining access to State economic development

assistance.

(2) In a situation involving an impending permanent closure or substantial layoff, a State

may provide funds, where other public or private

resources are not expeditiously available, for a

preliminary assessment of the advisability of

conducting a comprehensive study exploring the

feasibility of having a company or group, including the workers, purchase the plant and continue it in operation.

(3) The Secretary shall oversee the administration by each State of the rapid response assistance services provided in such State and the

effectiveness, efficiency, and timeliness of the

delivery of such services. If the Secretary determines that such services are not being performed adequately, the Secretary shall implement appropriate corrective action, including,

where necessary, the selection of a new rapid response assistance service provider.

(4) For purposes of rapid response assistance

provided by a State dislocated worker unit, the

term ‘‘substantial layoff’’ means a layoff of 50 or

more individuals.

(c) Basic readjustment services

Funds allotted under section 1652 of this title

may be used to provide basic readjustment services to eligible dislocated workers. Subject to

limitations set forth in subsection (e) of this

section and section 1661d(a) of this title, the

services may include (but are not limited to)—

(1) development of individual readjustment

plans for participants in programs under this

subchapter;
Page 657 TITLE 29—LABOR § 1661c

(2) outreach and intake;

(3) early readjustment assistance;

(4) job or career counseling;

(5) testing;

(6) orientation;

(7) assessment, including evaluation of educational attainment and participant interests

and aptitudes;

(8) determination of occupational skills;

(9) provision of future world-of-work and occupational information;

(10) job placement assistance;

(11) labor market information;

(12) job clubs;

(13) job search;

(14) job development;

(15) supportive services, including child care,

commuting assistance, and financial and personal counseling which shall terminate not

later than the 90th day after the participant

has completed other services under this part,

except that counseling necessary to assist participants to retain employment shall terminate not later than 6 months following the

completion of training;

(16) prelayoff assistance;

(17) relocation assistance; and

(18) programs conducted in cooperation with

employers or labor organizations to provide

early intervention in the event of closures of

plants or facilities.

(d) Retraining services

(1) Funds allotted under section 1652 of this

title may be used to provide training services

under this part to eligible dislocated workers.

Such services may include (but are not limited

to)—

(A) classroom training;

(B) occupational skill training;

(C) on-the-job training;

(D) out-of-area job search;

(E) relocation;

(F) basic and remedial education;

(G) literacy and English for non-English

speakers training;

(H) entrepreneurial training; and

(I) other appropriate training activities directly related to appropriate employment opportunities in the substate area.

(2) No funds under this part may be expended

to provide wages for public service employment.

(e) Needs-related payments

(1) Funds allocated to a substate grantee

under section 1652(d) of this title may be used

pursuant to a substate plan under section 1661b

of this title to provide needs-related payments

to an eligible dislocated worker who is unemployed and does not qualify or has ceased to

qualify for unemployment compensation, in

order to enable such worker to participate in

training or education programs under this subchapter. To be eligible for such payments, an eligible dislocated worker who has ceased to qualify for unemployment compensation must have

been enrolled in training by the end of the 13th

week of the worker’s initial unemployment compensation benefit period, or, if later, the end of

the 8th week after an employee is informed that

a short-term layoff will in fact exceed 6 months.

(2) The level of needs-related payments shall

be made available at a level not greater than the

higher of—

(A) the applicable level of unemployment

compensation; or

(B) the poverty level determined in accordance with criteria established by the Director

of the Office of Management and Budget.

(f) Coordination with unemployment compensation

(1) Funds allocated to a State under section

1652 of this title may be used for coordination of

worker readjustment programs and the unemployment compensation system, consistent with

the limitation on administrative expenses in

section 1661d of this title. Each State shall be

responsible for coordinating the unemployment

compensation system and worker readjustment

programs within such State.

(2) An eligible dislocated worker participating

in training (except for on-the-job training)

under this subchapter shall be deemed to be in

training with the approval of the State agency

for purposes of section 3304(a)(8) of title 26.

(g) Joint funding

(1) Funds allotted under section 1652 of this

title may be used to provide additional funds

under an applicable program if—

(A) such program otherwise meets the requirements of this chapter and the requirements of the applicable program;

(B) such program serves the same individuals that are served under this subchapter;

(C) such program provides services in a coordinated manner with services provided under

this subchapter; and

(D) such funds would be used to supplement,

and not supplant, funds provided from nonFederal sources.

(2) For purposes of this subsection, the term

‘‘applicable program’’ means any program under

any of the following provisions of law:

(A) The Carl D. Perkins Vocational and Applied Technology Education Act [20 U.S.C. 2301

et seq.].

(B) The Wagner-Peyser Act [29 U.S.C. 49 et

seq.].

(h) Clarification of definition of eligible dislocated workers for certain services

(1) The term ‘‘eligible dislocated workers’’ includes individuals who have not received specific notice of termination or lay off and work

at a facility at which the employer has made a

public announcement that such facility will

close (except those individuals likely to remain

employed with the same employer or likely to

retire instead of seeking new employment)—

(A) with respect to basic readjustment services provided under paragraphs (1) through

(14), (16), and (18) of subsection (c) of this section; and

(B) with respect to services provided under

this section beginning 180 days before the date

on which the facility is scheduled to close.

(2) Services described in paragraph (1)(A) and

provided to the individuals described in paragraph (1) shall, to the extent practicable, be

funded under section 1652(c)(1) of this title.
§ 1661d TITLE 29—LABOR Page 658

1So in original. The comma probably should not appear.

(Pub. L. 97–300, title III, §314, as added Pub. L.

100–418, title VI, §6302(a), Aug. 23, 1988, 102 Stat.

1532; amended Pub. L. 101–392, §5(a)(3), Sept. 25,

1990, 104 Stat. 759; Pub. L. 102–367, title III, §301,

Sept. 7, 1992, 106 Stat. 1073; Pub. L. 102–484, div.

D, title XLIV, §4467(b)–(d), Oct. 23, 1992, 106 Stat.

2750.)

REFERENCES IN TEXT

The Carl D. Perkins Vocational and Applied Technology Education Act, referred to in subsec. (g)(2)(A), is

Pub. L. 88–210, Dec. 18, 1963, 77 Stat. 403, as amended,

which is classified generally to chapter 44 (§2301 et seq.)

of Title 20, Education. For complete classification of

this Act to the Code, see Short Title note set out under

section 2301 of Title 20 and Tables.

The Wagner-Peyser Act, referred to in subsec.

(g)(2)(B), is act June 6, 1933, ch. 49, 48 Stat. 113, as

amended, which is classified principally to chapter 4B

(§49 et seq.) of this title. For complete classification of

this Act to the Code, see Short Title note set out under

section 49 of this title and Tables.

AMENDMENTS

1992—Subsec. (b)(3), (4). Pub. L. 102–484, §4467(b), (c),

added pars. (3) and (4).

Subsec. (e)(1). Pub. L. 102–484, §4467(d)(1), inserted ‘‘is

unemployed and’’ before ‘‘does not qualify’’.

Subsec. (f). Pub. L. 102–367 designated existing provisions as par. (1) and added par. (2).

Subsec. (h). Pub. L. 102–484, §4467(d)(2), added subsec.

(h).

1990—Subsec. (g). Pub. L. 101–392 added subsec. (g).

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.

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by Pub. L. 101–392 effective July 1, 1991,

see section 702(a) of Pub. L. 101–392, set out as a note

under section 2301 of Title 20, Education.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1516, 1652, 1661,

1661a, 1661b, 1661d, 1661e, 1662b, 1662d, 1662d–1, 1662e of

this title.

§ 1661d. Limitations on uses of funds

(a) Retraining services

(1) Of the funds allocated to a substate grantee

under this part for any program year, not less

than 50 percent shall be expended for retraining

services specified under section 1661c(d) of this

title.

(2) A substate grantee may apply to the Governor for a waiver of the requirement in paragraph (1). Such waiver may not permit less than

30 percent of the funds to be spent for such retraining services. The waiver may be granted in

whole or in part if the substate grantee demonstrates that the worker readjustment program in the area will be consistent with the

principle that dislocated workers be prepared for

occupations or industries with long-term potential. The Governor shall prescribe criteria for

the demonstration required by the previous sentence.

(3) An application for such a waiver shall be

submitted at such time and in such form as the

Governor may prescribe. The Governor shall

provide an opportunity for public comment on

the application.

(b) Needs-related payments and supportive services limitation

Of the funds allocated to a substate grantee or

to the Governor under this part for any program

year, not more than 25 percent may be expended

to provide needs-related payments and other

supportive services.

(c) Administrative cost limitation

Of the funds allocated to a substate grantee or

to the Governor under this part for any program

year, not more than 15 percent may be expended

to cover the administrative cost of programs.

For purposes of this subsection, administrative

cost does not include the cost of activities under

section 1661c(b) of this title.

(d) Combination of funds

Substate grantees within a State may combine funds under this subchapter for the provision of services to eligible dislocated workers

from 2 or more substate areas.

(e) ‘‘Allocated’’ defined

As used in this section, the term ‘‘allocated’’,1

means allocated for a program year, as adjusted

for reallocations between substate areas, and for

reallotments in accordance with section 1653 of

this title.

(Pub. L. 97–300, title III, §315, as added Pub. L.

100–418, title VI, §6302(a), Aug. 23, 1988, 102 Stat.

1535; amended Pub. L. 102–367, title III, §302,

Sept. 7, 1992, 106 Stat. 1073.)

AMENDMENTS

1992—Subsec. (a)(1). Pub. L. 102–367, §302(a), amended

par. (1) generally. Prior to amendment, par. (1) read as

follows: ‘‘Not less than 50 percent of the funds expended

under this subchapter by any substate grantee shall be

expended for retraining services specified under section

1661c(d) of this title.’’

Subsec. (b). Pub. L. 102–367, §302(b), amended subsec.

(b) generally. Prior to amendment, subsec. (b) read as

follows: ‘‘Not more than 25 percent of the funds expended under this subchapter by any substate grantee

or by the Governor may be used to provide needs-related payments and other supportive services.’’

Subsec. (c). Pub. L. 102–367, §302(c), amended first sentence generally. Prior to amendment, first sentence

read as follows: ‘‘Not more than 15 percent of the funds

expended under this subchapter by any substate grantee or by the Governor may be expended to cover the administrative cost of programs under this subchapter.’’

Subsec. (d). Pub. L. 102–367, §302(d), added subsec. (d).

Subsec. (e). Pub. L. 102–367, §302(e), 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 1518, 1661c of

this title.

§ 1661e. Retraining services availability

(a) Alternative methods of providing retraining

services

A substate grantee may provide retraining

services described in section 1661c(d) of this title

to an eligible dislocated worker—