North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 20 - EMPLOYMENT AND TRAINING › Subchapter C - ADJUDICATIVE PROVISIONS/GENERAL PROVISIONS FOR ADMINISTRATIVE ADJUDICATIONS › Section 20C .0106 - SANCTIONS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) The Division,
				through the Director, and the Department, through the Secretary, shall be
				authorized to impose any sanction permitted by the JTPA, applicable federal
				regulations, the subgrant agreement or the contract document or state law. The
				Director and the Secretary are the delegates of the Governor and may exercise
				the sanction authority reserved for the Governor in the JTPA.
(b) Upon a determination that a subrecipient
				has violated a specific term of the JTPA, the applicable federal regulations,
				or state law, or that a violation has occurred in a subrecipient's programs or
				projects or other funded activity, the Director or the Secretary may condition
				funding to the extent necessary to assure the violations will not continue. If
				conditional funding does not effect compliance, the Governor may issue a notice
				of intent to revoke all or part of a subrecipient's funding from the Division.
				The revocation shall be effective when the time for appeal has expired or the
				Secretary of Labor has issued a decision on an appeal. The appeal procedure
				shall correspond to the procedure set forth in Rule .0201 of Chapter
				20B.
(c) In the event funds are
				misspent and identified as misspent during the same grant year, the
				subrecipient may be permitted to conduct (without federal funds) additional
				eligible employment and training activities during that same grant year to
				offset the disallowed costs. The Division shall not be required to provide this
				opportunity, and it may only be available after the grant year with permission
				of USDOL. This alternative of in-kind services recoupment of disallowed costs
				is made available for the purpose of maximizing the activities available to
				eligible participants in the service delivery areas and to encourage in-house
				monitoring during a grant year.
(d)
				In the event that USDOL will revoke funds to the state under the emergency
				provisions of Section 164(f) of the JTPA and in the event that the activities
				of one or more subrecipients has caused the funding to be jeopardized, the
				Governor may immediately suspend or terminate funding to those subrecipients in
				order to preserve funding to the remaining subrecipients; provided that in such
				an event an opportunity for a hearing must be provided within 30
				days.
(e) All subrecipients shall
				be responsible for funds received through the Division. The subgrantees and the
				Division's contractors shall be liable for the disallowed expenditure of any
				funds received from the Division or for liabilities arising in connection with
				the operation of the funded activities. The Division may recoup the amount of
				disallowed expenditures and, if interest is charged by USDOL against the state
				or if the unauthorized expenditure was willful, may recover appropriate
				interest from the subgrantee or division contractor. The Division may also go
				directly against any subrecipient receiving funds, whether or not that
				subrecipient had received funds directly from the Division, but the Division
				shall not be required to proceed against those subrecipients.
(f) Any person or entity, including
				participants or supplier, who makes or causes to be made a willful
				misrepresentation shall be liable for the costs incurred on account of or
				received by such person or entity as a result of having made the
				misrepresentation. This sanction shall be available to any subrecipient who is
				injured by the misrepresentation, but this sanction shall not require a
				subrecipient or the Division to endeavor to enforce this liability. This
				sanction may be enforced through the administrative process as to all parties
				who receive JTPA funds, who thereby consent to resolution of disputes through
				this administrative process.
(g)
				The remedies under this Chapter 20 shall not be construed to be exclusive
				remedies. The Division shall have all common law remedies available to it with
				regard to its subrecipients and shall have all remedies provided in executed
				agreements with subrecipients.
Authority
				  G.S.
				  143B-430(b); 150B; Articles
				  3 and 4; Ex. O. 93, June 8, 1983; JTPA S 164;
				  20 C.F.R.
				  629.44;
Eff. October 1,
				  1984;
Amended Eff. August 1, 1988;
Pursuant to
				  G.S.
				  150B-21.3A, rule is necessary without
				  substantive public interest Eff. April 27,
				  2019.