
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 29USC2842]

 
                             TITLE 29--LABOR
 
                CHAPTER 30--WORKFORCE INVESTMENT SYSTEMS
 
     SUBCHAPTER II--STATEWIDE AND LOCAL WORKFORCE INVESTMENT SYSTEMS
 
            Part C--Workforce Investment Activities Providers
 
Sec. 2842. Identification of eligible providers of training 
        services
        

(a) Eligibility requirements

                           (1) In general

        Except as provided in subsection (h) of this section, to be 
    identified as an eligible provider of training services described in 
    section 2864(d)(4) of this title (referred to in this section as 
    ``training services'') in a local area and to be eligible to receive 
    funds made available under section 2863(b) of this title for the 
    provision of training services, a provider of such services shall 
    meet the requirements of this section.

                            (2) Providers

        Subject to the provisions of this section, to be eligible to 
    receive the funds, the provider shall be--
            (A) a postsecondary educational institution that--
                (i) is eligible to receive Federal funds under title IV 
            of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq. 
            [and 42 U.S.C. 2751 et seq.]); and
                (ii) provides a program that leads to an associate 
            degree, baccalaureate degree, or certificate;

            (B) an entity that carries out programs under the Act of 
        August 16, 1937 (commonly known as the ``National Apprenticeship 
        Act'' 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.); or
            (C) another public or private provider of a program of 
        training services.

(b) Initial eligibility determination

      (1) Postsecondary educational institutions and entities 
                    carrying out apprenticeship programs

        To be initially eligible to receive funds as described in 
    subsection (a) of this section to carry out a program described in 
    subparagraph (A) or (B) of subsection (a)(2) of this section, a 
    provider described in subparagraph (A) or (B), respectively, of 
    subsection (a)(2) of this section shall submit an application, to 
    the local board for the local area in which the provider desires to 
    provide training services, at such time, in such manner, and 
    containing such information as the local board may require.

                    (2) Other eligible providers

        (A) Procedure

            Each Governor of a State shall establish a procedure for use 
        by local boards in the State in determining the initial 
        eligibility of a provider described in subsection (a)(2)(C) of 
        this section to receive funds as described in subsection (a) of 
        this section for a program of training services, including the 
        initial eligibility of--
                (i) a postsecondary educational institution to receive 
            such funds for a program not described in subsection 
            (a)(2)(A) of this section; and
                (ii) a provider described in subsection (a)(2)(B) of 
            this section to receive such funds for a program not 
            described in subsection (a)(2)(B) of this section.

        (B) Recommendations

            In developing such procedure, the Governor shall solicit and 
        take into consideration the recommendations of local boards and 
        providers of training services within the State.

        (C) Opportunity to submit comments

            The Governor shall provide an opportunity, during the 
        development of the procedure, for interested members of the 
        public, including representatives of business and labor 
        organizations, to submit comments on such procedure.

        (D) Requirements

            In establishing the procedure, the Governor shall require 
        that, to be initially eligible to receive funds as described in 
        subsection (a) of this section for a program, a provider 
        described in subsection (a)(2)(C) of this section--
                (i) shall submit an application, to the local board for 
            the local area in which the provider desires to provide 
            training services, at such time and in such manner as may be 
            required, and containing a description of the program;
                (ii) if the provider provides training services through 
            a program on the date of application, shall include in the 
            application an appropriate portion of the performance 
            information and program cost information described in 
            subsection (d) of this section for the program, as specified 
            in the procedure, and shall meet appropriate levels of 
            performance for the program, as specified in the procedure; 
            and
                (iii) if the provider does not provide training services 
            on such date, shall meet appropriate requirements, as 
            specified in the procedure.

(c) Subsequent eligibility determination

                            (1) Procedure

        Each Governor of a State shall establish a procedure for use by 
    local boards in the State in determining the eligibility of a 
    provider described in subsection (a)(2) of this section to continue 
    to receive funds as described in subsection (a) of this section for 
    a program after an initial period of eligibility under subsection 
    (b) of this section (referred to in this section as ``subsequent 
    eligibility'').

                         (2) Recommendations

        In developing such procedure, the Governor shall solicit and 
    take into consideration the recommendations of local boards and 
    providers of training services within the State.

                 (3) Opportunity to submit comments

        The Governor shall provide an opportunity, during the 
    development of the procedure, for interested members of the public, 
    including representatives of business and labor organizations, to 
    submit comments on such procedure.

                         (4) Considerations

        In developing such procedure, the Governor shall ensure that the 
    procedure requires the local boards to take into consideration, in 
    making the determinations of subsequent eligibility--
            (A) the specific economic, geographic, and demographic 
        factors in the local areas in which providers seeking 
        eligibility are located; and
            (B) the characteristics of the populations served by 
        providers seeking eligibility, including the demonstrated 
        difficulties in serving such populations, where applicable.

                          (5) Requirements

        In establishing the procedure, the Governor shall require that, 
    to be eligible to continue to receive funds as described in 
    subsection (a) of this section for a program after the initial 
    period of eligibility, a provider described in subsection (a)(2) of 
    this section shall--
            (A) submit the performance information and program cost 
        information described in subsection (d)(1) of this section for 
        the program and any additional information required to be 
        submitted in accordance with subsection (d)(2) of this section 
        for the program annually to the appropriate local board at such 
        time and in such manner as may be required; and
            (B) annually meet the performance levels described in 
        paragraph (6) for the program, as demonstrated utilizing 
        quarterly records described in section 2871 of this title, in a 
        manner consistent with section 2871 of this title.

                      (6) Levels of performance

        (A) In general

            At a minimum, the procedure described in paragraph (1) shall 
        require the provider to meet minimum acceptable levels of 
        performance based on the performance information referred to in 
        paragraph (5)(A).

        (B) Higher levels of performance eligibility

            The local board may require higher levels of performance 
        than the levels referred to in subparagraph (A) for subsequent 
        eligibility to receive funds as described in subsection (a) of 
        this section.

(d) Performance and cost information

                      (1) Required information

        For a provider of training services to be determined to be 
    subsequently eligible under subsection (c) of this section to 
    receive funds as described in subsection (a) of this section, such 
    provider shall, under subsection (c) of this section, submit--
            (A) verifiable program-specific performance information 
        consisting of--
                (i) program information, including--
                    (I) the program completion rates for all individuals 
                participating in the applicable program conducted by the 
                provider;
                    (II) the percentage of all individuals participating 
                in the applicable program who obtain unsubsidized 
                employment, which may also include information 
                specifying the percentage of the individuals who obtain 
                unsubsidized employment in an occupation related to the 
                program conducted; and
                    (III) the wages at placement in employment of all 
                individuals participating in the applicable program; and

                (ii) training services information for all participants 
            who received assistance under section 2864 of this title to 
            participate in the applicable program, including--
                    (I) the percentage of participants who have 
                completed the applicable program and who are placed in 
                unsubsidized employment;
                    (II) the retention rates in unsubsidized employment 
                of participants who have completed the applicable 
                program, 6 months after the first day of the employment;
                    (III) the wages received by participants who have 
                completed the applicable program, 6 months after the 
                first day of the employment involved; and
                    (IV) where appropriate, the rates of licensure or 
                certification, attainment of academic degrees or 
                equivalents, or attainment of other measures of skills, 
                of the graduates of the applicable program; and

            (B) information on program costs (such as tuition and fees) 
        for participants in the applicable program.

                     (2) Additional information

        Subject to paragraph (3), in addition to the performance 
    information described in paragraph (1)--
            (A) the Governor may require that a provider submit, under 
        subsection (c) of this section, such other verifiable program-
        specific performance information as the Governor determines to 
        be appropriate to obtain such subsequent eligibility, which may 
        include information relating to--
                (i) retention rates in employment and the subsequent 
            wages of all individuals who complete the applicable 
            program;
                (ii) where appropriate, the rates of licensure or 
            certification of all individuals who complete the program; 
            and
                (iii) the percentage of individuals who complete the 
            program who attain industry-recognized occupational skills 
            in the subject, occupation, or industry for which training 
            is provided through the program, where applicable; and

            (B) the Governor, or the local board, may require a provider 
        to submit, under subsection (c) of this section, other 
        verifiable program-specific performance information to obtain 
        such subsequent eligibility.

                           (3) Conditions

        (A) In general

            If the Governor or a local board requests additional 
        information under paragraph (2) that imposes extraordinary costs 
        on providers, or if providers experience extraordinary costs in 
        the collection of information required under paragraph 
        (1)(A)(ii), the Governor or the local board shall provide access 
        to cost-effective methods for the collection of the information 
        involved, or the Governor shall provide additional resources to 
        assist providers in the collection of such information from 
        funds made available as described in sections 2853(a) and 
        2863(a)(1) of this title, as appropriate.

        (B) Higher education eligibility requirements

            The local board and the designated State agency described in 
        subsection (i) of this section may accept program-specific 
        performance information consistent with the requirements for 
        eligibility under title IV of the Higher Education Act of 1965 
        (20 U.S.C. 1070 et seq. [and 42 U.S.C. 2751 et seq.]) from a 
        provider for purposes of enabling the provider to fulfill the 
        applicable requirements of this subsection, if such information 
        is substantially similar to the information otherwise required 
        under this subsection.

(e) Local identification

                           (1) In general

        The local board shall place on a list providers submitting an 
    application under subsection (b)(1) of this section and providers 
    determined to be initially eligible under subsection (b)(2) of this 
    section, and retain on the list providers determined to be 
    subsequently eligible under subsection (c) of this section, to 
    receive funds as described in subsection (a) of this section for the 
    provision of training services in the local area served by the local 
    board. The list of providers shall be accompanied by any performance 
    information and program cost information submitted under subsection 
    (b) or (c) of this section by the provider.

                   (2) Submission to State agency

        On placing or retaining a provider on the list, the local board 
    shall submit, to the designated State agency described in subsection 
    (i) of this section, the list and the performance information and 
    program cost information referred to in paragraph (1). If the agency 
    determines, within 30 days after the date of the submission, that 
    the provider does not meet the performance levels described in 
    subsection (c)(6) of this section for the program (where 
    applicable), the agency may remove the provider from the list for 
    the program. The agency may not remove from the list an agency 
    submitting an application under subsection (b)(1) of this section.

              (3) Identification of eligible providers

        A provider who is placed or retained on the list under paragraph 
    (1), and is not removed by the designated State agency under 
    paragraph (2), for a program, shall be considered to be identified 
    as an eligible provider of training services for the program.

                          (4) Availability

        (A) State list

            The designated State agency shall compile a single list of 
        the providers identified under paragraph (3) from all local 
        areas in the State and disseminate such list, and the 
        performance information and program cost information described 
        in paragraph (1), to the one-stop delivery systems within the 
        State. Such list and information shall be made widely available 
        to participants in employment and training activities authorized 
        under section 2864 of this title and others through the one-stop 
        delivery system.

        (B) Selection from State list

            Individuals eligible to receive training services under 
        section 2864(d)(4) of this title shall have the opportunity to 
        select any of the eligible providers, from any of the local 
        areas in the State, that are included on the list described in 
        subparagraph (A) to provide the services, consistent with the 
        requirements of section 2864 of this title.

      (5) Acceptance of individual training accounts by other 
                                   States

        States may enter into agreements, on a reciprocal basis, to 
    permit eligible providers of training services in a State to accept 
    individual training accounts provided in another State.

(f) Enforcement

                     (1) Accuracy of information

        If the designated State agency, after consultation with the 
    local board involved, determines that an eligible provider or 
    individual supplying information on behalf of the provider 
    intentionally supplies inaccurate information under this section, 
    the agency shall terminate the eligibility of the provider to 
    receive funds described in subsection (a) of this section for any 
    program for a period of time, but not less than 2 years.

                          (2) Noncompliance

        If the designated State agency, or the local board working with 
    the State agency, determines that an eligible provider described in 
    subsection (a) of this section substantially violates any 
    requirement under this Act, the agency, or the local board working 
    with the State agency, may terminate the eligibility of such 
    provider to receive funds described in subsection (a) of this 
    section for the program involved or take such other action as the 
    agency or local board determines to be appropriate.

                            (3) Repayment

        A provider whose eligibility is terminated under paragraph (1) 
    or (2) for a program shall be liable for repayment of all funds 
    described in subsection (a) of this section received for the program 
    during any period of noncompliance described in such paragraph.

                          (4) Construction

        This subsection and subsection (g) of this section shall be 
    construed to provide remedies and penalties that supplement, but do 
    not supplant, other civil and criminal remedies and penalties.

(g) Appeal

    The Governor shall establish procedures for providers of training 
services to appeal a denial of eligibility by the local board or the 
designated State agency under subsection (b), (c), or (e) of this 
section, a termination of eligibility or other action by the board or 
agency under subsection (f) of this section, or a denial of eligibility 
by a one-stop operator under subsection (h) of this section. Such 
procedures shall provide an opportunity for a hearing and prescribe 
appropriate time limits to ensure prompt resolution of the appeal.

(h) On-the-job training or customized training exception

                           (1) In general

        Providers of on-the-job training or customized training shall 
    not be subject to the requirements of subsections (a) through (e) of 
    this section.

           (2) Collection and dissemination of information

        A one-stop operator in a local area shall collect such 
    performance information from on-the-job training and customized 
    training providers as the Governor may require, determine whether 
    the providers meet such performance criteria as the Governor may 
    require, and disseminate information identifying providers that meet 
    the criteria as eligible providers, and the performance information, 
    through the one-stop delivery system. Providers determined to meet 
    the criteria shall be considered to be identified as eligible 
    providers of training services.

(i) Administration

    The Governor shall designate a State agency to make the 
determinations described in subsection (e)(2) of this section, take the 
enforcement actions described in subsection (f) of this section, and 
carry out other duties described in this section.

(Pub. L. 105-220, title I, Sec. 122, Aug. 7, 1998, 112 Stat. 965.)

                       References in Text

    The Higher Education Act of 1965, referred to in subsecs. 
(a)(2)(A)(i) and (d)(3)(B), is Pub. L. 89-329, Nov. 8, 1965, 79 Stat. 
1219, as amended. Title IV of the Act is classified generally to 
subchapter IV (Sec. 1070 et seq.) of chapter 28 of Title 20, Education, 
and part C (Sec. 2751 et seq.) of subchapter I of chapter 34 of Title 
42, The Public Health and Welfare. For complete classification of this 
Act to the Code, see Short Title note set out under section 1001 of 
Title 20 and Tables.
    The National Apprenticeship Act, referred to in subsec. (a)(2)(B), 
is act Aug. 16, 1937, ch. 663, 50 Stat. 664, as amended, which is 
classified generally to chapter 4C (Sec. 50 et seq.) of this title. For 
complete classification of this Act to the Code, see Short Title note 
set out under section 50 of this title and Tables.
    This Act, referred to in subsec. (f)(2), is Pub. L. 105-220, Aug. 7, 
1998, 112 Stat. 936, as amended, known as the Workforce Investment Act 
of 1998. For complete classification of this Act to the Code, see Short 
Title note set out under section 9201 of Title 20, Education, and 
Tables.

                  Section Referred to in Other Sections

    This section is referred to in sections 2801, 2822, 2832, 2864, 2888 
of this title.
