Texas Workforce Commission
Guide to the Workforce Investment Act
Final Rule 20 CFR Part 652 and Parts 660-671
Published on August 11, 2000
Effective on September 11, 2000
The Texas Workforce Commission adheres to the Workforce Investment Act (WIA or the Act) legislative provisions that allow for the continuation of specific state activities and policies under current state laws. Therefore, this guide focuses on the uniqueness of the Texas workforce development system and how these regulations impact our system.
The Guide to the Final Regulations for the Workforce Investment Act is divided into the following three sections:
The guide is designed to provide an overview of the key Parts of the WIA Final Rule, key WIA grandfather provisions invoked in Texas, and contains hyperlinks to text in the WIA regulations. As such, the Workforce Investment Act and other related Federal and State rules are also hyperlinked to this guide. The full text of WIA legislation and other documents related to policy and early implementation details for WIA in Texas may also be viewed online at the Texas Workforce Commission website: http://www.twc.state.tx.us/boards/wia/txwia.html.
The United States Department of Labor (DOL) issued the WIA regulations on August 11, 2000 and became effective on September 11, 2000. Please note that the non-discrimination and equal opportunity regulations, implementing WIA§ 188, were published separately on November 12, 1999, under 29 CFR Part 37, more commonly referred to as the Implementation of the Nondiscrimination and Equal Opportunity Provisions of the Workforce Investment Act of 1998; Interim Final Rule.
Section I: WIA Final Rule Framework
The WIA Final Regulations issued by DOL cover Titles I, III, and V of the Workforce Investment Act (WIA). Regulations for Titles II (Adult Education and Family Literacy Act) and IV (Rehabilitation Act Amendments of 1998) may be issued by the US Department of Education. The WIA Final Rule contains the following Parts:
- Part 660 Introduction to the Regulations for Workforce Investment Systems Under Title I
- Part 661 Statewide and Local Governance Under Title I
- Part 662 Description of the One-Stop System
- Part 663 Adult and Dislocated Worker Activities
- Part 664 Youth Activities
- Part 665 Statewide Activities
- Part 666 Performance Accountability
- Part 667 Administration Provisions
- Part 668 Indian and Native American Programs
- Part 669 National Farmworkers Jobs Programs
- Part 670 Job Corps
- Part 671 National Emergency Grants for Dislocated Workers
- Part 652 Establishment and Functioning of State Employment Services
Section II: Regulations that Impact the Texas Grandfather Provisions
Part 661 State and Local Governance
State Workforce Investment Board
WIA § 111(e) allows Texas to select an alternate entity to act as the State Workforce Investment Board. Texas has chosen to continue to use the Texas Council for Workforce and Economic Competitiveness (TCWEC) as the state level board. WIA Final Rule §661.200, describing the categorical composition of a state board, is not applicable in Texas. For a description of the categorical composition of the state board in Texas, it is necessary to refer to Texas Government Code §2308.052 rather than the WIA regulations in Part 661.
Local Workforce Investment Areas
WIA §189(i)(2) allows Texas to continue to use existing local workforce development areas as local workforce investment areas rather than designating new areas. Sections of WIA regulations at §§661.250-661.270, describing the process for initial designation of local areas, are not applicable in Texas. Texas Government Code §2308.252 describes the process for the initial designation of local areas in Texas.
Local Workforce Investment Boards
WIA §117(i) allows a state to use existing local entities as local workforce investment boards, referred to, in Texas as local workforce development boards (Boards). Texas has exercised the option under WIA and has continued to use local workforce development boards rather than require the creation of local workforce investment boards. The description of the required categorical membership included in WIA regulations in §661.315 is not applicable in Texas. Board membership requirements are set out in Texas Government Code §2308.256, and the use of an alternate entity is described in WIA regulations at §661.330. It is important to note that §661.330(c) provides that if the membership structure of a Board is significantly changed, then the Board will no longer be able to act as a local workforce investment board and the local chief elected officials (CEO) will be required to establish a new local board which meets all of the requirements set out in WIA §117 and WIA regulations at §661.315. A significant change does not include the filling of a vacancy but does include any change in the organizational structure or the categories of membership of an existing Board.
WIA §117(i) allows a state to use alternate entities rather than requiring the creation of separate youth councils. Texas has exercised its option under this provision to have Boards perform the functions of and meet the responsibilities of youth councils. The description of the creation of and required membership of a youth council contained in WIA regulations in §661.335 are not applicable in Texas. However, Boards are encouraged to appoint youth technical advisory groups as described in Texas Government Code §2308.260 to assist the Boards in meeting their youth council duties and responsibilities.
Part 662 One-Stop System
Required One-Stop Partners
WIA §194(a)(3) allows a State to continue to use an existing system for the selection of required one-stop partners. Texas has exercised the option to continue to follow state laws, which describe the required partners in a career center. WIA Final Rule §662.200, the listing of the required WIA one-stop partners, is not applicable in Texas. A list of the required one-stop partners in Texas can be found in the State Five-Year Strategic and Operational Plan and in Commission rules at 40 TAC 801.27. While not all of the entities listed in WIA regulations §662.200 are required one-stop partners in Texas, Boards are encouraged to include all of the entities listed in §662.200 as one-stop partners.
Selection of One-Stop Operator
WIA §194(a)(3) allows a state to continue to use an established state procedure for the selection of a one-stop operator rather than making a designation as provided in WIA §121. Texas exercised this option and continues to require the competitive procurement of one-stop operators. Commission rules at 40 TAC §§805.213-805.219 describe the required procedure of competitive procurement. WIA regulations at §§662.410-662.430, describing the procedures for selection of a one-stop operator, are not applicable in Texas.
WIA regulations at §662.420 describe the conditions under which a Board may be designated a one-stop operator. This section is not applicable in Texas. Texas Government Code §2308.264 sets out the requirements which must be met by a Board which wishes to directly provide workforce training and services.
Part 663 Adult and Dislocated Worker Activities
Delivery of Intensive and Training Services
WIA §194(a)(4) provides that a State can continue an established policy under which a provider shall not be selected to provide both intake and training services. Texas has exercised its option under WIA §§194(a)(3) and (4) to limit the services which can be provided by a one-stop operator. To the extent that WIA regulations in §§663.210 and 663.505 can be read to allow one-stop operators to provide developmental services such as basic education and skills training, those regulations are not applicable in Texas. Texas Government Code §2308.3121 describes the process which must be completed by a one-stop operator in order to obtain a waiver which would allow it to provide developmental services. Similarly, a Board cannot provide intensive or training services unless it obtains a waiver under Texas Government Code §2308.264.
Part 664 Youth Activities
As previously described, Texas has exercised its option under WIA §117(i) to authorize Boards to act as youth councils. To the extent that Part 664 describes a youth council as a separate entity, it is not applicable in Texas. However, the fact that there are not separate youth councils does not relieve the local workforce development areas of the obligation to meet the responsibilities and fulfill the duties of a youth council. These duties and responsibilities must be met by the Board.
Section III: WIA Final Rule Guide
The preamble of the Final Rule provides background information on the Interim Final Rule and provides a summary and explanation of DOL's response to comments received on the Interim Final Rule.
Part 660 Introduction to the Regulations for Workforce Investment Systems under Title I of the Workforce Investment Act
This Part covers the following sections:
- The purpose of Title I is described in Section 660.100;
- the format of the regulations is found under Section 600.200; and
- additional definitions not found in the Act are found in Section 660.300. Several terms are defined. "Local Board" means a local workforce investment board established under WIA Section 117 to set policy for the local workforce investment system. The definition of "register" clarifies that participants must be registered once they receive a core service that requires assistance beyond self-service or information provision.
Part 661 Statewide and Local Governance
The four Subparts of this Part cover:
- General Provisions,
- State Governance Provisions,
- Local Governance Provisions, and
- Waivers and Work-Flex.
Part 662 The One-Stop System
This Part includes four Subparts for:
- General Description of the One-Stop Delivery System,
- One-Stop Partners and the Responsibilities of the Partners,
- Memorandum of Understanding for the One-Stop Delivery System, and
- One-Stop Operators.
Part 663 Adult and Dislocated Worker Activities
This Part consists of eight Subparts:
- Delivery of Adult and Dislocated Worker Services Through the One-Stop System;
- Intensive Services,
- Training Services,
- Individual Training Accounts,
- Eligible Training Providers,
- Priority and Special Populations,
- OJT and Customized Training, and
- Supportive Services.
Part 664 Youth Activities
This Part includes the following eight Subparts:
- Youth Councils,
- Eligibility for Youth Services,
- Out-of-School Youth,
- Youth Program Design, Elements, and Parameters,
- Concurrent Enrollment,
- Summer Employment Opportunities,
- One-Stop Services to Youth, and
- Youth Opportunity Grants.
Subpart A: Youth Councils
Subpart B: Eligibility for Youth Services
Section 664.200 describes eligibility. Section 664.205 allows States or Local Boards to establish the "deficient in basic literacy skills" criterion in Section 664.200 (c) (1). If the State Board establishes the policy, it must be included in the State plan. Section 664.210 allows States or Local Boards to establish the criterion in Section 664.200 (c) (6), regarding the need for additional assistance to complete an educational program, or to secure and hold employment. If the State Board establishes the policy, it must be included in the State plan. Section 664.215 requires registration for youth programs. Section 664.220 describes how non-low-income youth can receive youth services. Up to five percent of youth served in a local area do not have to meet the income criterion if they meet at least one other criterion. Local Boards may define one of them, "serious barriers to employment," and describe it in the Local Plan. Section 664.230 describes how eligibility barriers for eligible youth and non-low-income youth are different. Section 664.240 states that eligibility for free lunch under the National School Lunch Program does not determine income eligibility under the Act. Section 664.250 allows disabled youth to qualify for services if their own income meets the eligibility criteria, even if their familys' income is too high.
Subpart C: Out-of-School Youth
Section 664.300 describes out-of-school youth. Section 664.310 clarifies that youth who attend alternative schools are not "dropouts." Section 664.320 requires that at least 30 percent of youth funds be spent on all services for out-of-school youth, including summer programs. Boards are not required to spend certain percentages on summer or year-round activities. Local Boards, in consultation with the Chief Elected Officials (CEO), determine the funding mix.
Subpart D: Youth Program Design, Elements, and Parameters
Section 664.400 defines a local youth program as all youth activities offered by a Local Board. Section 664.405 requires that Local Boards provide links to other entities that will encourage youth participation and refer youth for support services and training programs. Local Boards must involve parents, youth, and others experienced in youth programs in their design and implementation. Section 664.410 requires local programs to make available to youth each of the 10 program elements listed in Section 129 (c) (2) of the Act. All 10 elements do not have to be provided to each youth. Local programs determine the specific services that will be offered to each individual. Section 664.420 describes leadership development opportunities, and Section 664.430 describes positive social behaviors, or soft skills. Section 664.440 describes supportive services for youth, and Section 664.450 discusses follow-up services. All youth must receive some kind of follow-up services for at least 12 months. Follow-up may be less intensive for youth that participate in summer programs only and may be extended at the State or Local Board's discretion. Section 664.460 describes work experiences for youth, and Section 664.470 notes that WIA funds may be used to pay wages and related benefits for work experiences.
Subpart E: Concurrent Enrollment
Section 664.500 discusses concurrent enrollment in adult and youth programs for eligible individuals ages 18-21. Local Boards decide the appropriate level and balance of the services. Section 664.510 states that while Individual Training Accounts (ITAs) are not allowed for youth, eligible individuals, who are age 18 and older, may receive ITAs through the adult and dislocated worker program.
Subpart F: Summer Employment Opportunities
Section 664.600 states that while Local Boards must offer summer employment opportunities, they determine how much money will be spent on such activities. Summer programs are part of a comprehensive strategy for youth and are not stand-alone programs. Section 664.610 states that CEOs and Local Boards provide oversight for summer employment opportunities. CEOs are the grant recipients, unless another entity is chosen. Section 664.620 applies core indicators of performance to summer activities.
Subpart G: One-Stop Services to Youth
Section 664.700 describes the connection between the youth program and the One-Stop service delivery system. Section 664.710 notes that non-eligible youth may be served at One-Stop centers. They can access programs that do not have eligibility restrictions, such as basic labor exchange services under the Wagner-Peyser Act.
Subpart H: Youth Opportunity Grants
Section 664.800 describes the selection process, and Section 664.810 describes applicant eligibility. A Local Board is eligible if it serves a community that has been designated as an empowerment zone (EZ) or enterprise community (EC), or if it is in one of two areas that the Governor authorizes to apply and meets certain poverty rate criteria. Section 664.820 describes eligibility for services under the grant. Section 664.830 explains how performance measures are negotiated for Youth Opportunity Grants.
Part 665 Statewide Workforce Investment Activities
This Part addresses the following three Subparts:
- General Description,
- Required and Allowable Statewide Workforce Investment Activities, and
- Rapid Response Activities.
Subpart A: General Description
Section 665.100 describes statewide activities, which include employment and training activities for adults and dislocated workers and Statewide youth activities. Section 665.110 describes funding. Except for Statewide rapid response activities, Statewide activities are funded by money the Governor reserves under Section 128 (a) of the Act. Such funds, also known as "15 percent reserved funds," are set aside from youth, adult, and dislocated worker funding streams and may be pooled and spent regardless of the funding source.
Subpart B: Required and Allowable Statewide Workforce Investment Activities
- Required activities: Section 665.200 lists statewide activities the State must carry out. While the Governor must set aside money for these activities, he can decide how much, up to the maximum 15 percent of each funding stream.
- Allowable activities: Section 665.210 lists statewide activities the State is allowed to carry out. For the first time, States may use these funds for incumbent worker and research and demonstration projects.
- Description of the term "incumbent worker": Section 665.220 allows States to determine eligibility for incumbent worker (also referred to as current worker) services. Current workers do not have to meet the same eligibility requirements for intensive and training services that employed adults and dislocated workers do.
Subpart C: Rapid Response Activities
Section 665.300 describes the activities, which the State provides to help dislocated workers find new jobs as soon as possible after a facility closure or mass layoff, or other mass job dislocation. DOL strongly encourages States and Local Boards to make core services an integral part of rapid response assistance. The term "dislocated worker" is defined in WIA Section 101 (9) so that formula funds can be used for intensive and training services as soon as workers have layoff notices, or six months before layoff from a facility that will close in 180 days. Section 665.310 lists required rapid response activities. States must help Local Boards and CEOs develop a coordinated response to the dislocation and if needed, help them access State economic development assistance. Section 665.320 identifies rapid response activities that are allowed. Section 665.330 addresses the linkage of rapid response and Title I assistance to NAFTA-Transitional Adjustment Assistance (TAA). The linkage is both an important feature of the One-Stop delivery system and a requirement under NAFTA-TAA.
Part 666 Performance Accountability
This Part includes four Subparts covering
- State Measures of Performance,
- Incentives and Sanctions for State Performance,
- Local Measures of Performance, and
- Incentive and Sanctions for Local Performance.
This Part discusses State measures of performance, incentives and sanctions for States, and measures of performance, and incentives and sanctions for local areas.
There are 17 performance indicators for States (Section 666.100):
These 12 indicators
- Entry into unsubsidized employment (adult; dislocated worker; youth 19 through 21)
- Retention in unsubsidized employment 6 months after entry (for above 3 programs)
- Earnings 6 months after entry into employment (for above 3 programs)
- Attainment of recognized credential for those who entered employment (for above 3 programs)
Plus these 3 youth indicators for youth aged 14 through 18
- Attainment of basic skills and, as appropriate, work readiness or occupational skills
- Attainment of secondary school diploma or equivalent
- Placement and retention in post-secondary education, advanced training, military service, employment or apprenticeships
Plus 2 customer satisfaction indicators for adult, dislocated worker and youth programs
- One indicator for participants (all programs)
- One indicator for employers (all programs)
Part 667 Administrative Provisions
This Part includes nine Subparts covering
- Administrative Rules, Costs and Limitations,
- Reporting Requirements,
- Oversight and Monitoring,
- Resolution of Findings from Monitoring and Oversight Reviews,
- Grievance Procedures, Complaints, and State Appeals Processes,
- Sanctions, Corrective Actions and Waiver of Liability,
- Administrative Adjudication and Judicial Review, and
- Transition Planning.
Subpart A: Funding
Section 667.100 discusses fund availability. Funds for programs other than youth are available on a program year basis, beginning July 1. Funds for youth programs become available on April 1. Section 667.105 discusses different types of funding. Section 667.107 addresses the length of time in which funds must be spent. States can spend their grants over a three-year period (in the grant's program year and the next two program years). Local areas have two years (in the program year and the following year). Local funds not spent within that time must be returned to the State and become available to the State and other local areas in the third program year. This money may be used for statewide projects or may be distributed to other local areas that have used up their funding for the program year. Section 667.110 discusses the Governor/Secretary agreement, which assures that the State will comply with the WIA and the Wagner-Peyser Act and their rules and regulations. Section 667.120 describes planning information required for a formula grant. Section 667.130 explains how funds are allocated to local areas and addresses funding generally; State reserve funds; and allocation formulas for youth, adults, and dislocated workers. Section 667.140 describes how a Local Board may transfer funds between programs. Up to 20 percent of adult and dislocated worker funds may be transferred between the two programs. Local Boards must obtain the Governor's approval before making the transfer. They may not transfer funds to or from youth programs. Section 667.150 describes reallotment procedures the Secretary of Labor will use, and Section 667.160 describes reallocation procedures for the Governor. Section 667.170 discusses the responsibility review DOL conducts on potential grant applicants for National Programs.
Subpart B: Administrative Rules, Costs and Limitations
- Administrative Rules: Section 667.200 addresses general fiscal and administrative rules that apply to WIA grants. Procurement contracts and other transactions between Local Boards and State or local governments are reimbursed for cost only. Profit is not allowed. This section also addresses employers' ability to use local facilities and services, codes of conduct and conflict of interest issues for State and Local Board and Youth Council members, audit requirements, allowable costs/cost principles, debarment and suspension requirements, drug-free workplace requirements, restrictions on lobbying, nondiscrimination, and nepotism.
- Costs and Limitations: Section 667.210 discusses administrative cost limits that apply to WIA grants. States may use five percent of their reserve funds for administrative costs. Local areas may use 10 percent of their allocation for administrative costs. The section also discusses how costs are handled at One-stop centers. Section 667.220 describes costs that are subject to the administrative cost limit. Section 667.250 addresses requirements relating to the enforcement of the Military Selective Service Act. Section 667.260 prohibits use of Title I funds for construction, except in certain instances. Section 667.262 prohibits use of funds for employment-generating activities, unless they are directly related to training for participants. Section 667.264 lists other activities prohibited under Title I. Section 667.266 lists limitations that apply to sectarian activities, such as those sponsored by faith-based providers. Section 667.268 notes that funds may not be used to encourage business relocation. Section 667.269 discusses procedures and sanctions for violations of sections 667.260-667.268. Section 667.270 describes safeguards to ensure that WIA participants do not displace other workers. Section 667.272 discusses wage and labor standards that apply to participants. Earnings from Title I programs are not considered in eligibility determinations for federal programs based on need, except as provided under the Social Security Act. Section 667.274 discusses applicable health and safety standards. Section 667.275 addresses nondiscrimination and equal opportunity, and nonparticipation in sectarian activities.
Subpart C: Reporting Requirements
Section 667.300 discusses these requirements.
Subpart D: Oversight and Monitoring
Subpart E: Resolution of Findings from Monitoring and Oversight Reviews
Subpart F: Grievance Procedures, Complaints, and State Appeals Processes
- Grievance Procedures: Section 667.600 describes procedures local areas, States, and direct recipients must have. Local areas must have the following in place: a process for handling grievances; an opportunity for an informal resolution hearing within 60 days after the grievance was filed; if applicable, a process allowing for binding arbitration; and an opportunity to appeal to the State. Section 667.610 describes how the Secretary of Labor will review grievances and complaints.
- Complaints and Appeals: Section 667.630 discusses how complaints and reports of criminal fraud and abuse are handled. Section 667.640 describes additional appeals processes the State must have for non-designation of local areas, denial or termination of eligibility as a training provider, and testing and sanctioning for drug use. Section 667.645 describes appeals for non-designation of local areas. Section 667.650 discusses appeals for sanctions that the Governor imposes on local areas for substantial violations or performance failures.
Subpart G: Sanctions, Corrective Actions, and Waiver of Liability
- Sanctions: Section 667.700 discusses how DOL will impose sanctions and corrective actions. Section 667.705 states that recipients are responsible for their grant funds.
- Corrective Actions and Waiver of Liability: Section 667.710 addresses corrective actions and sanctions for local areas not in compliance with uniform administrative provisions. Section 667.720 describes how DOL handles requests for waivers of liability. Section 667.730 describes how the Grant Officer handles requests for advance approval of contemplated corrective actions. Section 667.740 addresses how misexpenditures are handled through offset/deduction provisions in Section 184 (c) of the Act.
Subpart H: Administrative Adjudication and Judicial Review
Section 667.800 describes appeals to the Office of Administrative Law Judges. Section 667.810 describes rules of procedure that apply to the hearings. Section 667.820 notes that the Administrative Law Judge (ALJ) has the full authority of the Secretary of Labor when ordering relief. Section 667.825 describes special rules that apply to reviews of National Farmworkers Jobs Programs (NFJP) and Indian and Native American (INA) grant selections. Section 667.830 describes how ALJ decisions are issued. Section 667.840 addresses alternative dispute resolution. Section 667.850 describes judicial review of final orders of the Secretary. Section 667.860 states that nothing in these rules prevents pursuit of remedies and sanctions outside the Act.
Subpart I: Transition Planning
Section 667.900 discusses transition planning. Governors may reserve up to two percent of their JTPA formula funds for Program Years 1998 and 1999 for transition planning activities. At least 50 percent of those funds must be made available to local entities.
Parts 668, 669, and 670 National Programs Under Title I of WIA
- Part 668 covers Indian and Native American Programs,
- Part 669 covers National Farmworkers Jobs Programs, and
- Part 670 covers Job Corps.
These programs are required one-stop partners for areas in which such programs provide services, and all one-stop systems are required to ensure that customers served by these programs have access to their services through the local system.
Part 671 National Emergency Grants for Dislocated Workers
Part 652 Establishment and Functioning of State Employment Services
Part 652 implements the amendments to the Wagner-Peyser Act made by the Workforce Investment Act. These amendments are effective July 1, 1999. The regulations for Wagner-Peyser labor exchange activities have been located at Part 652, Subpart A for many years. DOL has amended the applicable regulations in Part 652 Subpart A to remove references to the Job Training Partnership Act (JTPA), which was repealed on June 30, 2000; and to revise and add regulations at Part 652 Subpart C to reflect rules governing Wagner-Peyser services required by the Workforce Investment Act.