the Act of June 1, 1934, as amended (48 Stat. 948,
as amended; 40 U.S.C. 276(c)).
(2) FUNDING REQUIRED.—Such rates are not
required to be paid to participants under this Act
unless they are employed in connection with projects
funded by this Act in whole or in part, exclusive of
wages and benefits, or projects covered by any other
statute requiring the payment of such Davis-Bacon
Act wage rates.
(g) DEFINITIONS.—For purposes of this section—
(1) information concerning numbers of employ-
ees shall be reported in a manner consistent with the
reporting of information (including the definitions of
terms) requested from governments by the Bureau
of the Census in the Survey of Government Employ-
ment for the 1982 Census of Governments, as au-
thorized in accordance with section 161 of title 13,
United States Code;
(2) the term ‘‘government’’ means a State, a
local unit of general purpose government, a public
agency, or a local educational agency; and
(3) the term ‘‘regular unsubsidized employee’’
means any employee whose wages are paid in whole
or in part from non-Federal funds, but does not in-
clude any employee whose wages are paid in whole
or in part with funds made available under this Act.
SEC. 303. FISCAL CONTROLS; SANCTIONS.
(a) GAO REVIEW.—
(1) EVALUATION REQUIRED.—The Comptroller
General of the United States shall, on a selective
basis, evaluate the expenditures by the recipients
under this Act in order to assure that expenditures
are consistent with the provisions of this Act and to
determine the effectiveness of each recipient in ac-
complishing the purposes of this Act. The Comptrol-
ler General shall conduct the evaluations whenever
necessary and shall periodically (at least annually)
report to the Congress on the findings of such eval-
uations.
(2) IG RESPONSIBILITIES
NOT
AFFECTED.—
Nothing in this Act shall be deemed to relieve the
Inspector General of the Department of Labor or
the Inspector General of the Department of Edu-
cation of their responsibilities under the Inspector
General Act.
(3) ACCESS TO RECORDS.—For the purpose of
evaluating and reviewing programs established or
provided for by this Act, the Comptroller General
shall have access to and the right to copy any books,
accounts, records, correspondence, or other docu-
ments pertinent to such programs that are in the
possession, custody, or control of any recipient of
funds under this Act, or any contractor or sub-
contractor of such recipients.
(b) REPAYMENT REQUIRED.—Every recipient shall
repay to the United States amounts found not to have
been expended in accordance with this Act. The Secretary
may offset such amounts against any other amount in
which the recipient is or may be entitled under this Act
unless he determines that such recipient should be held
liable pursuant to subsection (c). No such action shall be
taken except after notice and opportunity for a hearing
have been given to the recipient.
(c) PROCEDURE FOR REPAYMENT.—
(1) STANDARD FOR REPAYMENT.—Each recipi-
ent shall be liable to repay such amounts, from
funds other than funds received under this Act,
upon a determination that the misexpenditure of
funds was due to willful disregard of the require-
ments of this Act, gross negligence, or failure to ob-
serve accepted standards of administration. No such
finding shall be made except after notice and oppor-
tunity for a fair hearing.
(2) DETERMINATION REQUIRED.—In determin-
ing whether to impose any sanction authorized by
this section against a recipient for violations by a
subcontractor of such recipient under this Act, the
Secretary shall first determine whether such recipi-
ent has adequately demonstrated that it has—
(A) established and adhered to an appro-
priate system for the award and monitoring of
contracts with subcontractors which contains
acceptable standards for ensuring accountabil-
ity;
(B) entered into a written contract with
such subcontractor which establishes clear goals
and obligations in unambiguous terms;
(C) acted with due diligence to monitor the
implementation of the contract, including the
carrying out of the appropriate monitoring ac-
tivities (including audits) at reasonable inter-
vals; and
(D) taken prompt and appropriate correc-
tive action upon becoming aware of any evi-
dence of a violation of this Act by such sub-
contractor.
(3) WAIVER PERMITTED.—If the Secretary de-
termines that the recipient has demonstrated sub-
stantial compliance with the requirements of para-
graph (2), the Secretary may waive the imposition of
sanctions authorized by this section upon such recip-
ient. The Secretary is authorized to impose any
sanction consistent with the provision of this Act
and of any applicable Federal or State law directly
against any subcontractor for violation of this Act.
(d) EMERGENCY ACTIONS.—In emergency situations,
if the Secretary determines it is necessary to protect the
integrity of the funds or ensure the proper operation of
the program, the Secretary may immediately terminate or
suspend financial assistance, in whole or in part, if the
recipient is given prompt notice and the opportunity for
a subsequent hearing within 30 days after such termi-
nation or suspension. The Secretary shall not delegate any
of the functions or authority specified in this subsection,
other than to an officer whose appointment was required
to be made by and with the advice and consent of the Sen-
ate.
(e) DISCRIMINATION REMEDIES.—If the Secretary
determines that any recipient under this Act has dis-
charged or in any other manner discriminated against a
participant or against any individual in connection with
the administration of the program involved, or against any
individual because such individual has filed any complaint
or instituted or caused to be instituted any proceeding
under or related to this Act, or has testified or is about
to testify in any such proceeding or investigation under
or related to this Act, or otherwise unlawfully denied to
any individual a benefit to which that individual is entitled
under the provisions of this Act, the Secretary shall, with-
in 30 days, take such action or order such corrective meas-
ures, as necessary, with respect to the recipient or the ag-
grieved individual, or both.
(f) ADDITIONAL REMEDIES.—The remedies under
this section shall not be construed to be exclusive rem-
edies.
(g) RECORDKEEPING.—Recipients shall keep records
that are sufficient to permit the preparation of reports re-
quired by this Act and to permit the tracing of funds to
a level of expenditure adequate to insure that the funds
have not been spent unlawfully.
(h) INVESTIGATIONS.—
(1) CONDUCT AUTHORIZED.—In order to insure
compliance with the provisions of this Act, the
Comptroller General of the United States may con-
duct investigations of the use of funds received
under this Act by any recipient.
(2) USE OF EXISTING RECORDS.—In conduct-
ing any investigation under this Act, the Secretary
or the Comptroller General of the United States may
not request the compilation of any new information
not readily available to such recipient.
SEC. 304. JUDICIAL REVIEW.
(a) REVIEW PERMITTED.—
(1) APPELLATE REVIEW.—With respect to any
corrective action or sanction imposed under section
303 by the Secretary, any party to a proceeding
which resulted in such action or sanction may obtain
review of such action or sanction in the United
States Court of Appeals having jurisdiction over the
applicant or recipient of funds, by filing a review pe-
tition within 30 days of the issuance of a final order.
(2) FILING OF RECORD.—The clerk of the court
shall transmit a copy of the review petition to the
Secretary who shall file the record upon which the
action or sanction was entered as provided in section
2112 of title 28, United States Code. Review peti-
tions, unless ordered by the court, shall not stay the
Secretary’s action or sanction. Petitions under this
Act shall be heard expeditiously, if possible within
ten days of the filing of a reply brief.
(b) JURISDICTION.—The court shall have jurisdiction
to make and enter a decree affirming, modifying, or set-
ting aside the action or sanction of the Secretary in whole
or in part. The court’s judgment shall be final, subject
to certiorari review by the Supreme Court of the United
States as provided in section 1254(1) of title 28, United
States Code.
SEC. 305. DEFINITIONS.
(a) DEFINITIONS.—For the purposes of this Act—
(1) the term ‘‘economically disadvantaged’’
means an individual who—
(A) receives, or is a member of a family
which receives, cash welfare payments under a
Federal, State, or local welfare program;
(B) has, or is a member of a family which
has, received a total family income during the
6-month period prior to certification (exclusive
of unemployment compensation, child support
payments, and welfare payments) which, in re-
lation to family size, was not in excess of the
higher of—
(i) the poverty level determined in ac-
cordance with criteria established by the
Director of the Office of Management and
Budget, or
(ii) 70 percent of the lower living
standard income level;
(C) receives, or is a member of a family
which receives, food stamps pursuant to the
Food Stamp Act of 1977;
(D) is a foster child on behalf of whom
State or local government payments are made;
or
(E) is a handicapped individual whose own
income meets the requirements of clause (A) or
(B), but who is a member of a family whose in-
come does not meet such requirements;
(2) the term ‘‘institution of higher education’’
has the meaning provided under section 1201(a) of
the Higher Education Act of 1965;
(3) the term ‘‘local educational agency’’ has the
meaning provided in section 521(22) of the Carl D.
Perkins Vocational Education Act;
(4) the term ‘‘public library’’ has the meaning
provided under section 3 of the Library Services and
Construction Act;
(5) the term ‘‘recipient’’ means any eligible ad-
ministrative entity or State or local educational
agency receiving funds under an allotment for part
A of title II, and any State higher education build-
ing agency or institution of higher education receiv-
ing funds under an allotment for part B of such
title;
(6) except as specifically provided elsewhere in
this Act, the term ‘‘Secretary’’ means the Secretary
of Labor, except that—
(A) for purposes of subtitle C of title II,
such term means the Secretary of Education;
and
(B) with respect to sections 302(h), 304,
and 305, such term means either the Secretary
of Labor or the Secretary of Education, which-
ever is appropriate;
(7) the term ‘‘State’’ means any of the 50
States, the District of Columbia, the Commonwealth
of the Northern Mariana Islands, the Common-
wealth of Puerto Rico, American Samoa, Guam, the
Virgin Islands of the United States, the Federated
States of Micronesia, the Republic of the Marshall
Islands, and Palau;
(8) the term ‘‘unemployed individuals’’ means
individuals aged sixteen or older who are without
jobs and who want or are available for work, as de-
termined in accordance with criteria used by the Bu-
reau of Labor Statistics of the Department of Labor
in defining individuals as unemployed, but such cri-
teria shall not be applied differently on account of
an individual’s previous employment; and
(9) the term ‘‘unit of local government’’ means
any city, town, township, parish, or (except in Con-
necticut, Massachusetts, Rhode Island, and Ver-
mont) county which is a general purpose political
subdivision of a State that has the power to levy
taxes and spend funds, as well as general corporate
and police powers.
(b) USE OF DATA.—In making determinations for
purposes of this Act with respect to population, civilian
labor force, and unemployment, the Secretary shall use the
most satisfactory current data available on a seasonally
adjusted basis.
(c) COMPUTATIONS.—For the purposes of computa-
tions of the number of unemployed individuals in a State,
county, or eligible administrative entity, the Secretary
shall determine the average number of individuals who
were unemployed during the most recent 12 months pre-
ceding the determination for which satisfactory data is
available.
Æ
HR 1405 IH——2
HR 1405 IH——3
HR 1405 IH——4