Priority of Service for Covered Persons, 78132-78144 [E8-30166]
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Federal Register / Vol. 73, No. 245 / Friday, December 19, 2008 / Rules and Regulations
DEPARTMENT OF LABOR
Veterans’ Employment and Training
Service
20 CFR Part 1010
RIN 1293–AA15
Priority of Service for Covered Persons
AGENCY: Veterans’ Employment and
Training Service, Labor
ACTION: Final rule.
SUMMARY: The Veterans’ Employment
and Training Service (VETS) of the
Department of Labor (Department or
DOL) is issuing this final rule to
implement priority of service in
qualified job training programs
prescribed in section 2(a)(1) of the Jobs
for Veterans Act (JVA). DOL issued a
notice of proposed rulemaking (NPRM)
on August 15, 2008 outlining proposed
provisions implementing priority of
service for covered persons in qualified
DOL job training programs.
DATES: Effective Date: The final rule will
become effective on January 19, 2009.
FOR FURTHER INFORMATION CONTACT:
Pamela Langley, Chief, Division of Grant
Programs, Veterans’ Employment and
Training Service, U.S. Department of
Labor, 200 Constitution Avenue, NW.,
Room S–1312, Washington, DC 20210,
Langley.Pamela@dol.gov, (202) 693–
4708 (this is not a toll-free number) or
(202) 693–4760 (TTY/TDD).
SUPPLEMENTARY INFORMATION: This
preamble contains three sections.
Section I provides general background
information on the development of the
final rule. Section II discusses the
comments received on the NPRM and
the related regulatory provisions
included in the final rule. Section III
addresses the administrative
requirements for the final rule, as
mandated by statute and executive
order.
I. Background
On August 15, 2008, the Department
published an NPRM (73 FR 48086)
proposing regulations to implement
priority of service in qualified job
training programs prescribed in section
2(a)(1) of the JVA. We invited comments
for a 60-day period, which closed on
October 14, 2008. All comments
received during the comment period
have been posted on
www.regulations.gov.
On November 7, 2002, President Bush
signed the Jobs for Veterans Act, Public
Law (Pub. L.) 107–288 (Nov. 7, 2002).
One provision of the JVA, codified at 38
United States Code (U.S.C.) Section
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4215, creates a priority of service
requirement for covered persons in
qualified DOL job training programs.
Since the passage of the Act, the
Department has provided policy
guidance to the workforce investment
system regarding the implementation of
priority of service, including the
Department’s Employment and Training
Administration (ETA) issuance of
Training and Employment Guidance
Letter (TEGL) No. 05–03 in September
2003. TEGL No. 05–03 applies to a
majority of the job training programs
impacted by priority of service. On
December 22, 2006, President Bush
signed the Veterans’ Benefits, Health
Care, and Information Technology Act
of 2006 (Pub. L. 109–461). Section 605
of that statute requires the Department
to implement priority of service via
regulation. The final rule implements
priority of service in response to that
requirement.
The JVA provides that veterans and
eligible spouses of veterans (as defined
in § 1010.110) are identified as covered
persons and are entitled to priority over
non-covered persons for the receipt of
employment, training, and placement
services provided under new or existing
qualified job training programs,
notwithstanding any other provision of
law. The JVA defines qualified job
training programs as ‘‘any workforce
preparation, development or delivery
program or service that is directly
funded, in whole or in part, by the
Department.’’ 38 U.S.C. 4215(a)(2).
Currently, such programs are offered by
many agencies within the Department,
including, but not limited to, ETA,
VETS, the Women’s Bureau, and the
Office of Disability Employment Policy
(ODEP).
The JVA, and the priority of service it
requires, is an important
acknowledgment of the sacrifices of the
men and women who have served in the
U.S. armed forces. The Department’s
strategic vision for priority of service to
covered persons honors veterans and
eligible spouses of veterans as our
‘‘heroes at home’’ and envisions that
DOL-funded employment and training
programs, including the publiclyfunded workforce investment system,
will identify, inform and deliver
comprehensive services to covered
persons as part of strategic workforce
development activities across the
country. Veterans and eligible spouses
possess unique attributes and contribute
greatly in the workplace. They are an
important source of highly skilled and
experienced talent and play an
important role in regional workforce
development strategies. They are highly
sought after by employers and they
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make excellent employees.
Implementation of priority of service is
designed to provide covered persons
with clear entry points into highgrowth, high wage civilian jobs and
easily accessible post-secondary
education and training to support their
advancement along career pathways
which will benefit regional economies.
One-Stop Career Centers are the
delivery point for a significant
percentage of qualified job training
programs and services covered by the
JVA and are required to implement
priority of service. All One-Stop Career
Centers should have clear strategies for
providing veterans and eligible spouses
of veterans with the highest quality of
service at every phase of services
offered. This can range from basic
functions of the One-Stop System, such
as assistance with job search and
identification of needed skills, to more
customized initiatives such as creating
career pathways, with corresponding
competency assessments and training
opportunities, or other strategies which
allow covered persons to advance their
careers in high growth sectors of the
economy. The Department expects that
the One-Stop System will draw on all
available resources to support the
reemployment needs of covered
persons.
Veterans and their eligible spouses
have specific needs and concerns that
can be addressed by DOL-funded
employment and training program
providers developing strategies for
serving covered persons. When military
service has ended, a major concern for
many veterans is getting a good job.
Some veterans may experience
particular difficulty, both in finding
employment and in readjusting to
civilian work environments. DOLfunded employment and training
programs should work with employers
to ensure that the value a veteran brings
to the table is understood and to address
any concerns that employers may have
about hiring veterans.
Those veterans who have sustained
injuries or illnesses as a result of their
military service may require additional
support in developing skills to secure
employment. Similarly, those spouses of
recently separated veterans who are
eligible for priority also may need
employability development assistance.
DOL, the Department of Defense and the
Department of Veterans Affairs are
collaborating in closely monitoring the
rehabilitation of wounded and injured
veterans assessing their job readiness
and assisting their preparations for
civilian employment. In those instances
in which civilian employment does not
appear to be a realistic objective for the
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veteran, employability development
activities should, if appropriate, focus
upon the spouse who is eligible for
priority. These ‘‘heroes at home’’ should
be immediately provided the full array
of employment and training services to
ensure that they make a successful
transition into employment that
supports their economic independence.
In addition to assisting recently
separated veterans and eligible spouses
to meet the challenges of their specific
situation, priority of service also is
intended to assist those veterans and
eligible spouses for whom military
service concluded some time ago. These
veterans and eligible spouses are likely
to have significant civilian labor market
experience. However, they may
experience dislocation or find that they
are underemployed relative to their
skills and experience. Priority of service
is intended to assist all veterans and
eligible spouses to improve their
civilian sector employment and
earnings.
Priority of service does not change a
program’s intended functions; covered
persons still need to meet all statutory
eligibility and program requirements for
participation. Some DOL-funded
employment and training programs have
only general program eligibility
requirements and do not statutorily
target specific groups. These programs
require only a straightforward
implementation of priority of service.
However, some DOL-funded
employment and training programs do
carry existing statutory targeting
provisions that must be taken into
account when applying priority of
service. The purpose of this final rule is
to articulate how priority of service is to
be applied across all existing and new
qualified DOL job training programs.
II. Discussion of the Comments and
Regulatory Provisions
Summary of Comments
The Department received 28
submissions commenting on the NPRM
by the close of the comment period. All
comments were carefully reviewed. Of
the 28 comments, 17 were from
organizations with an interest in
veterans’ employment services. Of the
17 comments from organizations, 13
were from State Workforce Agencies,
one was from a State veterans’
commission, one was from a local
Workforce Investment Board (WIB), one
was from a private non-profit service
provider and one was from a national
association of State Workforce Agencies.
Of the 11 comments from individuals,
three identified themselves as
employees of State Workforce Agencies.
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A number of comments supported the
proposed rule for implementing priority
of service to veterans and eligible
spouses of veterans in all employment
and training programs funded in whole
or in part by DOL. We discuss these
comments here, but otherwise have no
formal response to them. One
commenter suggested that many
veterans experience extreme hardships
financially and physically due to their
service to our country. This commenter
suggested that veterans deserve to
receive priority assistance to reintegrate
back into civilian life. A second
commenter was supportive of informing
veterans of their entitlement to priority
of service at the point of entry. A third
commenter pointed out that priorities
for veterans already exist in DOL
programs. Two other commenters fully
supported DOL efforts to ensure that
veterans and their eligible spouses
receive priority access to employment,
training, and placement services.
Another commenter agreed with DOL’s
efforts to ensure covered persons receive
priority to employment, training, and
placement services. This commenter
indicated that his State already has a
process for veterans to identify
themselves upon check-in, with the
help of front-line staff.
In addition to the comments that
supported the proposed rule, nearly all
the comments offered suggestions to
facilitate the provision of priority of
service to veterans and other eligible
persons. All relevant comments are
discussed below.
Discussion of Comments on Subpart
A—Purpose and Definitions
This subpart addresses the purpose
and scope of these regulations
(§ 1010.100) and the definitions that
apply for the purpose of these
regulations (§ 1010.110). We received no
comments in reference to § 1010.100 but
we did receive some comments
regarding § 1010.110. Those comments
and our responses follow.
Defining Key Terms (§ 1010.110)
Veteran
Comment: Seven comments suggested
that program administration by the
States would be facilitated if the
definition of veteran that appears at 38
U.S.C. 4211(4) were substituted in place
of the definition that appears at 38
U.S.C. 101(2) and is specified in
§ 1010.110 of these regulations. One
commenter stated that in his opinion
expanding the definition to give priority
of service to non-disabled veterans who
served less than 180 days would dilute
the concept of priority of service and
result in the diversion of priority away
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from those veterans who truly deserve
priority in an environment of limited
resources.
Response: We have not changed the
definition of ‘‘veteran’’ for purposes of
providing priority to DOL-funded
employment and training programs
because we are bound by law to use the
definition proposed. In our view,
Congress clearly intended that priority
be made available to a broad category of
former service members. The statute is
quite clear at 38 U.S.C. 4215(a)(1)(A)
that ‘‘covered person’’ for purposes of
priority includes a ‘‘veteran’’ rather than
the more narrow definition of ‘‘eligible
veteran’’ that is applied, for example, to
statutory reporting requirements for
Wagner-Peyser State Grants and to
program eligibility requirements for Jobs
for Veterans State Grants. Since section
4215 does not specifically define the
term ‘‘veteran’’ for purposes of applying
the priority, we are required to look to
title 38’s general definition of that term
in section 101. See, Florida Dept. of
Banking and Finance v. Board of
Governors of the Federal Reserve
System, 800 F. 2d 1534, 1536 (11th Cir
1986) (‘‘It is an elementary precept of
statutory construction that the
definition of a term in the definitional
section of a statute controls the
construction of that term wherever it
appears throughout the statute.’’). The
definition we proposed in § 1010.110,
comes from 38 U.S.C. 101(2) which
provides the broad definition of
‘‘veteran’’ that is required to be used for
purposes of title 38.
We recognize that the definition of
veteran to be applied for the purposes
of the priority differs from and is
broader than the definition of eligible
veteran, which is applied for program
eligibility for Jobs for Veterans State
Grants, but we also note that section
4215 and these regulations do not
change eligibility for such services nor
for any other program. Section
1010.210(b) of this rule clearly provides
that covered persons still must meet the
statutory eligibility requirements
applicable to qualified job training
programs. Similarly, the definition of
veteran to be applied for the purposes
of the priority does not alter the
statutory reporting requirements for
Wagner-Peyser State Grants, which
require application of the more
narrowly defined definition of eligible
veteran.
While we are unable to change the
definition of veteran for purposes of the
priority, we acknowledge the concerns
of several commenters that the broad
definition used in § 1010.110 fails to
take into account such factors as length
of service, nature of separation, combat
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experience, etc. We have determined
that it would impose undue burdens on
the workforce system and on covered
persons to establish further priorities
among covered persons at this time (see
discussion of § 1010.310 below).
Therefore, we intend to focus on
implementing the regulations as
proposed, while anticipating that these
types of factors will inform our
consideration of additional priorities
among covered persons in the future.
Comment: Four comments pointed
out that program administration by the
States would be facilitated by using one
definition common to all, rather than
the several different definitions of
‘‘veteran’’ in use for various DOL and
other federally funded programs.
Response: A benefit of using a
definition of veteran that replicates the
definition in 38 U.S.C. 101(2) is that it
is the one that is most compatible with
the affected DOL programs’ respective
other eligibility criteria. In effect,
adoption of this definition of veteran is
expected to result in the maximum
feasible amount of the commonality or
standardization that is recommended by
these comments.
With respect to the different
definitions of veteran established by
statute for eligibility for certain
workforce programs, such as the broad
definition established for eligibility
under the Workforce Investment Act
(WIA) and the narrow definition
established for eligibility under the Jobs
for Veterans State Grants, the
Department does not have the authority
to revise these definitions through these
regulations. The Department is aware
that Government Accounting Office
(GAO) recently recommended (GAO–
07–594) that the Congress consider
standardizing the veteran definition
applicable for eligibility in all workforce
programs.
Comment: Three comments cited the
need to clarify the veteran definition in
the regulations to assure that it is
understood that an individual must
serve a period of ‘‘active duty’’ to be
considered a ‘‘veteran,’’ and that
National Guard members and Reservists
may be considered ‘‘veterans’’ if they
served on active duty.
Response: We agree with the
commenters that the rule will be
improved by clarifying the eligibility for
priority of National Guard members and
Reservists who served on active duty.
As described above, we look to 38
U.S.C. 101 for the definition of the term
‘‘veteran’’ because it is not specifically
defined in sec. 4215. Among the
requirements to qualify as a veteran
under sec. 101(2), an individual must
have served in ‘‘active military, naval or
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air service.’’ Participation in such
service is determined by the standards
in definitions at section 101(21), (22),
(23) and (24). Those subsections define
‘‘active military, naval or air service’’
and the meanings of active duty, active
duty for training, and inactive duty for
training relevant to National Guard and
Reserve members. These provisions
establish that full-time National Guard
and Reserve duty, other than full-time
duty for training purposes, qualifies as
active duty. Accordingly, we are
revising the definition of ‘‘veteran’’ in
§ 1010.110 by adding a new sentence at
the end to state: ‘‘Active service
includes full-time duty in the National
Guard or a Reserve component, other
than full-time duty for training
purposes.’’
Comment: Other comments on the
definition of ‘‘veteran’’ questioned
whether it matters if National Guard
members served domestically or
overseas or if an individual left the
armed forces prior to completion of
training.
Response: In both cases, these
circumstances are irrelevant to the
determination of veteran status for
purposes of applying priority. Under
§ 1010.110, as amended in the final rule,
the location of the service of a National
Guard member, a member of the Reserve
forces, or for that matter, by a member
of the regular Armed Forces, is
irrelevant with respect to his or her
status as a veteran. The determining
factor is whether the person has a
qualifying period of ‘‘active duty’’ as
provided in § 1010.110. Similarly, it is
the nature of the discharge (other than
dishonorable) not the details of the
person’s service career that is the
determining factor in the definition of
‘‘veteran.’’
Comment: One comment proposed
simplifying the definition of ‘‘veteran’’
to, ‘‘any veteran with a DD–214 with a
discharge status other than dishonorable
is a covered person.’’
Response: We have determined that
such a change would not be beneficial
and we have not revised the definition
of veteran. It would codify in
regulations reliance upon a single
document, which could be replaced or
change over time and which may not be
the only reliable source for verifying
veteran status. As discussed below in
the response to a comment on
§ 1010.300, DOL intends to identify
supplementary documents that provide
equivalent verification of veteran status
and to establish in policy guidance their
acceptability for this purpose. That
guidance is expected to be revised over
time as the agencies responsible for
maintaining the supplementary
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documentation modify their procedures.
Codification of the DD–214 in these
regulations as the sole criterion for
veteran status would preclude this
flexibility and impose practical burdens,
both upon the persons intended to be
the beneficiaries of this statute and the
agencies that administer the affected
programs.
Eligible Spouse
Five comments suggested that, in the
final rule, the Department should add to
the list of ‘‘covered persons’’ defined in
section 1010.110 the spouses of persons
who died while on active military duty.
Response: DOL is sympathetic to that
proposal but finds no evidence that
Congress intended the definition of
‘‘eligible spouse’’ enacted in the Jobs for
Veterans Act to be interpreted to
include the spouses of those who died
while on active duty. The law clearly
delineates the circumstances in which a
spouse may qualify as a covered person:
(1) Any veteran who died of a serviceconnected disability;
(2) Any member of the Armed Forces
serving on active duty who, at the time
of application for the priority, is listed
in one or more of the following
categories and has been so listed for a
total of more than 90 days:
(i) Missing in action;
(ii) Captured in line of duty by a
hostile force; or
(iii) Forcibly detained or interned in
line of duty by a foreign government or
power;
(3) Any veteran who has a total
disability resulting from a serviceconnected disability, as evaluated by the
Department of Veterans Affairs;
(4) Any veteran who died while a
disability, as indicated in paragraph (3)
of this section, was in existence.
From this list, we can only infer that
had the statute intended to cover the
spouses of service members who died
while on active duty, it would have
done so explicitly.
Comment: One comment requested
further clarification as to what defines a
‘‘spouse’’ by asking whether State law,
Federal law, or military law is the
statutory authority, and also asked the
corollary question about documentation
that would be required to prove the
spouse status.
Response: Existing Departmental
policy guidance to the States regarding
programs affected by the priority of
service regulation gives the States the
authority to determine marital status
issues in accordance with State law,
unless the relevant Federal law
governing a program is prescriptive in
those respects, and also, therefore, to
determine the appropriate form(s) of
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documentation required as proof of
eligibility for services or benefits that
are based on marital status. We think it
unnecessary to embed such guidance in
these regulations.
Comment: One comment stated that
only a spouse with U.S. citizenship
married to the veteran at the time of
discharge or retirement should be
eligible for assistance.
Response: The JVA does not exclude
from eligibility spouses who were not
citizens at the time that the veteran was
discharged or retired, nor does it
stipulate that a spouse had to be married
to the veteran at the time of his or her
discharge or retirement. Therefore, the
Department sees no compelling reason
to deny assistance to any spouse on
either basis. However, covered persons
are required to meet all program
eligibility requirements, which may
include legal authorization to engage in
employment.
Comment: One comment inquired
about any time limits that apply to the
‘‘eligible spouse’’ status, and also about
the impact of re-marriage following
death of the veteran on the eligibility of
the widow(er) to be considered a
covered person.
Response: Although we are not
revising the rule in response this
comment, we appreciate the comment,
recognize the need to clarify through
policy guidance the distinctions
identified below and we intend to do so.
Criteria (1) and (4) of the eligible spouse
definition (spouse of a veteran who died
of a service-connected disability or
while a service-connected total
disability was in existence) clearly
imply that the spouse becomes eligible
under those two criteria upon the death
of the veteran. The JVA does not include
a disqualification clause pertaining to
re-marriage following the death of the
veteran and we see no reason to assume
that one was intended. Similarly, if a
widow(er) who qualifies under either of
those criteria does not lose eligibility
through remarriage, we cannot envision
any other type of time limit that might
apply.
In contrast, criteria (2) and (3) of the
eligible spouse definition (spouse of a
service member who is missing in
action, etc., or of a veteran who has a
total disability resulting from a serviceconnected disability) clearly imply that
the eligibility of the spouse is based
upon the status of a service member or
veteran who is still living. In the case of
criterion (2), which is based upon the
status of an active duty service member,
the statutory wording makes it clear that
the spouse is eligible only during the
time that the service member remains in
that status. Similarly, in the case of
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criterion (3), which is based upon the
disability status of a living veteran, it is
clear that the statute intends to confer
eligibility on the spouse based on a
marriage that is currently in effect.
Therefore, if a spouse who is eligible
under criterion (3) becomes divorced
from the disabled veteran, the spouse
would lose the eligibility to priority at
that point. Similarly, if a spouse is
eligible on the basis of a total disability,
as defined by criterion (3), and the
veteran were to lose the total serviceconnected disability rating, the spouse
would lose the eligibility to priority at
that point.
Discussion of Comments on Subpart B—
Understanding Priority of Service
This subpart addresses what priority
of service is (§ 1010.200), the programs
affected by priority of service
(§ 1010.210), the implementation of
priority of service by recipients
(§ 1010.220), the responsibilities of
States and their subdivisions
(§ 1010.230), the monitoring of priority
of service (§ 1010.240), and the
possibility of waiving priority of service
(§ 1010.250). We received no comments
on § 1010.230 or § 1010.250; but we did
receive comments on the other four
sections of this subpart. Those
comments and our responses follow.
Identifying Qualified Job Training
Programs (§ 1010.210)
Comment: Two of the comments
raised questions regarding the
application of priority of service to nonDOL program partners in One-Stop
Career Centers. One commenter
requested a clarification of how priority
of service applies to any non-DOL
program partner and a second
commenter suggested the inclusion of
Vocational Rehabilitation programs
among the programs required to provide
priority of service.
Response: The Department will not
modify this section in response to these
comments because the priority only
applies to qualified job training
programs funded in whole or in part by
the Department of Labor, as defined in
sec. 4215(a)(2). The Department does
not have the authority to impose
priority of service on programs funded
by non-DOL sources. However, the
Department, through policy guidance
and technical assistance, will encourage
all partners in One-Stop Career Centers
to focus on providing services to
veterans as a standard operating
procedure within their respective
service delivery strategies.
Comment: One comment questioned
why Unemployment Insurance (UI) was
not included in the regulations as a
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program impacted by priority of service,
apparently referring to the fact that UI
recipients who are considered likely to
exhaust their eligibility for UI benefits
are referred to employment services
through a process known as worker
profiling.
Response: The Department did not
include UI because it is an income
benefit program and not a qualified job
training program, as defined in sec.
4215(a)(2) of the JVA. With respect to
worker profiling, the Department issued
guidance following the passage of the
JVA (Training and Employment
Guidance Letter No. 5–03, as well as
program-specific guidance and technical
assistance) explaining that priority of
service requires that veterans, whose
likelihood of benefit exhaustion
qualifies them for referral to
employment services, must be referred
to employment services prior to or in
conjunction with the referral of nonveterans. That policy remains in effect
and is not affected by these regulations.
Implementing Priority of Service
(§ 1010.220)
Funding Constraints
Comment: Two comments expressed
concerns about providing priority of
service in a limited funding
environment, particularly if large
numbers of additional veterans choose
to access the services of the One-Stop
Career system. One commenter asserted
that more resources for all DOL core
workforce programs will be required to
ensure that veterans and other workers
receive the help they need. A second
commenter expressed particular
concern about the current resource
capacity for their Management
Information System.
Response: The Department
acknowledges that the publicly-funded
workforce investment system is
operating under a tight Federal budget,
which means that Federal resources
must be used strategically to meet a
variety of competing local, regional, and
State priorities. Given that priority of
service has been in effect since 2003 and
transitioning veterans have been
provided information on accessing OneStop Career Centers through the
Transition Assistance Program for many
years, DOL does not anticipate a
significant increase in veteran
customers. With regard to new reporting
requirements associated with this rule
and the companion Information
Collection Request (ICR) package (ICR
Reference Number 200805–1205–001),
DOL acknowledges that the new data to
be collected will require some changes.
However, DOL has attempted to
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minimize the changes required by
utilizing, to the maximum extent
possible, existing data collection
processes to collect the new data.
Service Delivery Processes
Comment: A number of comments
addressed the provision of priority of
service at the point of entry to the
workforce system. Three commenters
indicated a need to assist front-line staff
in applying regulations and policies at
the point of entry and called for a more
detailed explanation of the regulations
and their impact on One-Stop
operations. Other commenters requested
guidance on how to handle priority of
service affirmation during selfregistration, whether at program
operators’ sites or from remote
locations. One commenter pointed out
that modifications to electronic
technologies may be required to ensure
the same point of entry data being
collected in physical locations is also
collected for those accessing services
remotely.
Response: DOL intends to provide
extensive guidance and technical
assistance on implementing priority of
service under this rule. This may
include policy guidance, webinars,
question and answer documents, and
highlights of best practices, and will
address issues such as self-registration.
Comment: Several comments
identified service delivery procedures
that may be impacted by the regulations.
One commenter stated that
implementing priority of service for
covered persons would be
unmanageable for certain services that
are usually provided through personal
appointments with service provider staff
and also may create bad feelings or illwill among non-covered customers. A
second commenter asked for guidance
regarding the processes that State
agencies could use if they have to
‘‘bump’’ a non-veteran in order to give
priority to a covered person. Another
commenter objected to implementing
priority of service as a ‘‘cut in line’’
policy.
Response: It is important to note that
priority of service under the JVA has
been in effect since 2003 and recipients
should already have policies and
procedures in place to ensure priority of
service to veterans. As part of
implementation of this rule, recipients
will need to reexamine their policies
and procedures and change them if
necessary to ensure priority of service is
provided to covered persons. For
example, program operators might
consider adjusting policies to leave
appointment slots open for covered
persons, or designating staff to see
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covered persons on a walk-in basis on
certain days. Regarding the creation of
bad feelings or ill-will toward covered
persons, customers of DOL-funded
services need to be made aware which
populations receive priority. Clearly
posting this information is likely to
decrease ill-will. DOL will provide
extensive guidance and technical
assistance in how to implement priority
of service under this rule.
Interference With the Intent of Priority
of Service
Comment: One comment asked what
is to prevent Workforce Investment
Boards from developing a plan that
minimizes the participation of covered
persons by placing the majority of
program funds into training that might
be of minimal interest to veterans, such
as basic computer training and nurse’s
aide training.
Response: DOL believes this scenario
is extremely unlikely to occur. First,
whichever occupations are targeted by
local workforce areas, covered persons
would still receive priority of service.
Second, local workforce areas are
governed by Workforce Investment
Boards (WIBs) and the majority of WIB
members are representatives of
business. Based on local labor market
conditions, WIBs determine the
industries and occupations that will be
a focus for training programs. Third,
since local workforce areas must meet
performance targets under the
Workforce Investment Act for entered
employment, employment retention and
average earnings, it is unlikely that they
would choose occupations not in
demand, as this could result in not
meeting their performance goals.
Finally, if selected recipients do
interfere with the intent of priority of
service by emphasizing occupational
areas unattractive to veterans, it is likely
that the unusually low rates of
participation by veterans in those
programs or services will be
documented through reporting and
remedied through monitoring and any
follow-up activities determined to be
warranted.
Monitoring Priority of Service
(§ 1010.240)
Comment: One comment noted that,
although the preamble of the NPRM
refers to the measure mentioned in the
JVA about covered persons being
represented in affected programs in
proportion to their incidence in the
labor market, the proposed rule does not
include specific performance standards
related to that comparison. This
commenter suggested that serving
covered persons in proportion to their
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incidence in the labor market should be
specified as a minimum achievement
level for priority of service.
Response: The Department has
concluded that it would be premature at
this point to attempt to establish
performance targets for priority of
service in these regulations. With
respect to the labor market criterion that
is specified in the JVA and noted in the
comment, we interpret that criterion to
be primarily applicable to the overall
performance of the Department in
implementing priority of service at the
national level. While this criterion also
could be applied to the specific
performance of the recipients of DOL
funds, its application at lower levels is
limited by the fact that the estimates of
the incidence of veterans in subnational labor markets are less
statistically precise. This issue is
discussed further in our response to a
comment received about § 1010.320.
In light of these considerations, the
Department has determined that
enhanced data collection and reporting,
coupled with joint monitoring, offer the
most appropriate avenues currently
available to ensure compliance with
priority of service. Specifically, for
those programs serving over 1,000
covered persons annually, data
collection systems will be modified to
accommodate new priority of service
data elements and analysis of that
information will be a key component of
monitoring.
Comment: One comment suggested
that the VETS State Directors monitor
the implementation of priority of service
in partnership with the State agency
officials who coordinate or supervise
the operations of the Jobs for Veterans
State Grants program.
Response: While the Department is
generally supportive of the type of
cooperative Federal-State relations
between grantor and grantees that is
conceptualized in this comment, we do
not believe that it is appropriate to
include a requirement of this type in
regulations. These regulations have
established, in § 1010.240(b), that
federal monitoring will be conducted
jointly by a representative of the
administering federal agency and a
representative of VETS. We believe that
the combined perspectives of these
designated officials are fully adequate
for federal monitoring purposes. Since
states also will have their own
monitoring responsibilities, we would
have no objection if states exercised
their option to apply the suggested
approach for state monitoring purposes.
Comment: One comment noted that
the preamble language in the NPRM
stated that submission of a corrective
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action plan ‘‘will’’ be required if a
recipient is found not to be in
compliance with the priority of service
requirement, but the regulatory text
itself states that a corrective action plan
‘‘may’’ be required. The commenter
suggested that we change the regulatory
text to require a corrective action plan.
Response: The Department will not
change the regulation. The regulatory
language is correct and it provides DOL
with the authority to require a corrective
action plan, when appropriate. There
may be circumstances where minimal
technical assistance will result in
correction of a priority of service issue.
Where any substantial changes to a
program operator’s policies or business
practices are required, a formal
corrective action plan will be required.
Comment: One comment included a
number of questions related to the
Department’s monitoring of the
implementation of and compliance with
the priority of service rule. The
questions include whether the joint
responsibility for oversight by ETA and
VETS extends to the review of the State
and local plans and any impact on State
grant funds if a State ignores the
requirements of the rule.
Response: The Department believes
that these concerns are adequately
addressed by existing provisions of
these regulations. Therefore, we do not
intend to modify the rule in response to
these comments. With respect to State
and local planning, § 1010.230(a)
requires the inclusion of priorities and
procedures addressing priority of
service in State plans, while
§ 1010.230(b) requires States to impose
similar requirements for local plans. In
addition, review of these plans by DOL
staff as a monitoring activity is
authorized by § 1010.240(a). With
respect to the potential impact of noncompliance with priority of service on
State grant funds, a grantee’s noncompliance will be handled in
accordance with the respective
program’s established compliance
review processes, as required by
§ 1010.240(c).
Discussion of Comments on Subpart C—
Applying Priority of Service
This subpart addresses identifying
covered persons (§ 1010.300), applying
priority of service to programs with
differing eligibility requirements
(§ 1010.310), reporting on priority of
service (§ 320), and collecting and
maintaining data on priority of service
(§ 1010.330). We received comments on
all four sections of this subpart. Those
comments and our responses follow.
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Identifying Covered Persons
(§ 1010.300)
We received a number of comments
about the inter-related subjects of
Identifying Covered Persons
(§ 1010.300) and Collecting and
Maintaining Data (§ 1010.330). For ease
of organization, the responses to
comments are treated under those two
topic areas. However, these two sections
should be read in conjunction with one
another. In § 1010.300, we primarily
discuss when and how a covered person
is identified. In § 1010.330, we provide
detailed information on collection
processes that occur simultaneously
with that identification.
Comment: One comment stated that,
due to a variety of factors, affected
programs will not be able to enroll
covered persons in numbers sufficient
to attain the proportion of such persons
in the labor market, unless all program
operators subject to the priority of
service regulations are mandated to
conduct outreach efforts to recruit
covered persons.
Response: The commenter did not
provide, and the Department does not
have from other sources, evidence to
support the contention that affected
program operators will not attract
covered persons as applicants for
services in the numbers equal to or in
excess of their incidence in the local
labor markets. In addition, the JVA does
not include provisions about outreach.
Therefore, other than requiring (in
§§ 1010.230 and 1010.300) that program
operators identify covered persons and
inform them about the priority, the
Department will not compel program
operators through regulations to
commence or enhance outreach efforts,
as suggested by the commenter.
However, the Department encourages all
program operators to assess the
adequacy of their sources of candidates
for services and, if that assessment
indicates that implementing outreach to
covered persons would be beneficial,
the Department encourages them to do
so.
Comment: One comment suggested
that State agencies should be authorized
to verify covered persons’ status through
means other than obtaining an official
copy of a DD–214 document. The
commenter suggested several other
available sources.
Response: As indicated in our prior
response to a comment on § 1010.110,
the Department does not oppose
allowing DOL-supported program
agencies to use alternative sources, such
as databases maintained by State
veterans affairs divisions or
commissions, to verify an individual’s
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claim of veteran’s status, as long as
those other sources can certify the
veracity of their records and have
effective procedures for matching the
covered person with those records.
However, addressing the specifics of
such verification sources is more
appropriate for policy guidance than for
regulations; we intend to address that
topic in detail in future guidance.
Comment: One comment claimed
that, in order to prove his or her right
to ‘‘priority of service’’ at the initial
point of entry into the State Workforce
Agency’s network of program services, a
covered person would have to provide
personal information not required of
non-covered persons. The commenter
stated that such requirements could
cause some customer satisfaction issues.
Response: It is the Department’s
intent that individuals identified as
covered persons will not be required to
verify their status as veterans or eligible
persons at the point of entry unless they
immediately undergo eligibility
determination and formal enrollment in
a program. To clarify that the
requirement to identify covered persons
at the point of entry does not imply that
verification of covered person status is
required at that point, a new paragraph
(b) has been added to § 1010.300 of the
final rule. Even in those instances in
which eligibility determination and
enrollment take place at the point of
entry, the Department believes that the
covered person should be enrolled and
given immediate priority and then be
permitted to follow-up subsequently
with any required verification of his/her
status as a covered person.
In the more common instances in
which eligibility determination and
enrollment do not take place at the
point of entry, the only procedures
applicable to covered persons at that
point (i.e., assignment of a unique
identifier and deciding whether or not
to respond voluntarily to the questions
required to be asked for EEO purposes)
are minimally burdensome. In addition,
those procedures are equally applicable
to non-covered persons at the point of
participation.
Comment: Two comments inquired
how covered persons will be identified
in a self-registration system.
Response: Recipients will be required
to have processes by which individuals
who reach the point of entry to
universal access programs through
electronic technologies will be provided
the opportunity to indicate their
covered person status. However, DOL
will not require documents that verify
their status (e.g., DD–214 discharge
form) at this stage. However, proof of
status will be required during formal
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determination for program eligibility.
The DD–214 discharge form is
considered the ‘‘gold standard’’
document for verification purposes.
However, DOL will be developing a list
of acceptable alternatives that
correspond to WIA definition of covered
person. This will be especially
important for any new documentation
needed for covered spouses. Covered
spouses whose eligibility is based on the
disability of the veteran should receive
the relevant documentation from the
Department of Veterans Affairs. Covered
spouses whose eligibility is based on
one of the three specific statuses of an
active duty service member should
receive the relevant documentation from
the Department of Defense.
Applying Priority of Service
(§ 1010.310)
Comment: Several comments
suggested or implied that a tiered
system of sub-priorities should be
established within the overall priority.
For example, one comment included a
detailed treatment of the nature of
military discharges, e.g., honorable,
other than honorable, dishonorable, bad
conduct, etc., and proposed, within the
universe of covered persons, institution
of a tiered priority system that would
reward those who are honorably
discharged above all others. Another
comment included a recommendation
that priority of service be given first to
veterans who actually served in combat
zones and who were assigned to
military occupational specialties
directly oriented toward combat, such
as infantry. A third comment expressed
support for priority for serviceconnected disabled veterans, but
pointed out that for many years, women
in the military were kept out of combat
zones, so giving priority to combat zone
veterans would discriminate against
veterans who were not allowed to earn
that benefit and, in effect, perpetuate
discrimination against women. This
commenter expressed her belief that
priority should be given on the basis of
need, rather than disability.
Response: Section 4215(b)(2) of the
JVA states that ‘‘The Secretary of Labor
may establish priorities among covered
persons * * *’’ However, we do not
intend to revise the rule at this time to
specify sub-priorities within the overall
priority. The principal factor underlying
that decision is the Department’s
determination that specifying further
sub-priorities within the overall priority
at this time is very likely to be unduly
burdensome, both to the system
responsible for serving covered persons
and to those covered persons intended
to benefit from a sub-priority. Although
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the requirement to provide priority is
not new, six major workforce programs
will be required to implement new data
collection procedures for covered
persons at the point of entry under new
reporting requirements that accompany
these regulations. In addition, these
regulations are expected to take effect at
a time that is characterized by an
expectation of increased demand for
services over the near term in response
to deteriorating economic conditions. In
that context, the Department believes
that implementing tiered sub-priorities
at this time would impose an
unreasonable burden by requiring: (a)
Workforce professionals (or electronic
systems) to make distinctions at the
point of entry among sub-priorities
within the overall priority; and, (b)
covered persons to affirm their
eligibility for differing levels of priority
at the point of entry, based on
distinctions of considerable complexity
and subtlety. In summary, the
Department believes that imposition of
those burdens at this time would be
very likely to generate results that are
directly contrary to the intent of the
statute and these regulations.
The Department also recognizes that
the intent of these regulations and the
accompanying data collection
requirements are likely to be assimilated
by the workforce system over time.
Therefore, the Department
acknowledges that, at a future time and
under more favorable conditions, it may
be appropriate to undertake a revision of
these regulations to further specify
certain sub-priorities within the overall
priority.
Comment: One comment requested
information on how income would be
considered in determining eligibility for
priority of service.
Response: Income is not a relevant
factor for a priority determination. For
purposes of eligibility for the underlying
programs, all income eligibility
determinations should be based on the
requirements of the program in which
services are being sought. For example,
in the Workforce Investment Act
programs, the regulation at 20 CFR
667.255 states that, ‘‘any amounts
received as military pay or allowances
by any person who served on active
duty, and certain other specified
benefits must be disregarded. This
applies when determining if a person is
a ‘low-income individual’ for eligibility
purposes.’’
Reporting on Priority of Service
(§ 1010.320)
Comment: A comment stated that in
order to measure whether or not covered
persons are being represented in
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affected programs in proportion to their
incidence in the labor market, the
Department needs to clarify exactly
what is meant by ‘‘the labor market.’’
Response: This comment refers to
section 4215(d) of the JVA, which
requires the Secretary to report to
Congress annually on priority of service.
The referenced section of the statute
includes language requiring the
Secretary to evaluate, ‘‘whether the
representation of veterans in such
programs is in proportion to the
incidence of representation of veterans
in the labor market * * *’’ The
requirements included in §§ 1010.320,
1010.330 and the accompanying ICR are
expected to enhance the Secretary’s
capacity to fulfill that Congressional
reporting responsibility. Since
enactment of the JVA, the Department
has fulfilled this requirement by
comparing the rate of veteran
participation in workforce programs
nationally with the incidence of veteran
representation in the labor market at the
national level. The rate or incidence of
veterans in the labor market has been
determined each year based upon data
provided by the Bureau of Labor
Statistics and derived from the Current
Population Survey.
When the comparison described
above is made at the national level, it
represents a measure of the performance
of the Department rather than a measure
of the performance of the recipients of
DOL funding. If a similar comparison
were to be made below the national
level (e.g., for a State workforce system),
the Department would first need to
identify the source of valid and reliable
data on the rate of incidence of veterans
within the labor market, at the level at
which the comparison is to be made.
Collecting and Maintaining Data
(§ 1010.330)
Subsections (a) and (b) of § 1010.330
and the ICR associated with this
regulation establish new reporting
requirements for those programs that
serve over 1,000 covered persons per
year nationally, including: WIA Adult,
WIA Dislocated Worker, Wagner-Peyser
Employment Service/Jobs for Veterans
State Grants, National Emergency Grants
(NEGs), Trade Adjustment Assistance
(TAA), and the Senior Community
Service Employment Program (SCSEP).
All other qualified job training programs
are exempt from this information
collection but will be required to adopt
the covered, non-covered, veteran and
eligible spouse definitions as outlined
in the JVA the next time their reporting
requirements are renewed.
The new reporting requirements for
those job training programs that serve
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over 1,000 persons annually are
described more fully in the associated
ICR (ICR Reference Number 200805–
1205–001) but primarily involve: (1)
Identifying covered persons at the point
of entry, which is the earliest point that
a covered person contacts the system in
either a physical location (e.g., One-Stop
Career Center or affiliate site) or
remotely through electronic
technologies); and (2) the collection of
individual entrant records for all
covered persons. Note: These new
reporting requirements exempt the
collection of information for noncovered persons.
In order to fully appreciate the
context, it is helpful to review the
discussion that follows in conjunction
with the responses treated previously
under the subheading Identifying
Covered Persons (§ 1010.300), since the
new collection is based largely on
identifying covered persons at the point
of entry. The specific comments on
(§ 1010.300) and our responses follow.
Comment: Four comments raised
questions around self-registration of
covered persons. Of these, one
commenter specifically asked about
what type of client inquiry would
trigger the collection of data.
Response: Paragraphs (a) and (b) of
§ 1010.330 require that programs that
serve over 1,000 covered persons
nationally per year must identify and
capture data on covered persons at the
initial point of entry. This is the earliest
point that a covered person first makes
contact with the workforce investment
system and is triggered by entry at either
a physical location (e.g., One-Stop
Career Center or affiliate site) or
remotely through electronic
technologies. DOL acknowledges that
program operators will need to adjust
manual and electronic intake processes
to accommodate the new reporting
requirements.
Comment: Three comments addressed
the covered person entry date. Of those,
two commenters expressed the need for
clarification in the definition and one
commenter asked whether this
information should be tracked
retroactively for persons who entered
the system years ago.
Response: Although these comments
were submitted in response to the
NPRM, they treat topics that are not
specifically addressed in § 1010.330 of
the rule, but are addressed in the ICR
associated with these regulations.
Therefore, the Department will address
these issues through the ICR clearance
process and through the issuance of
guidance on the implementation of the
new data collection procedures, if
necessary.
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Comment: Several comments raised
concerns about the difficulty in making
programming changes to the current
MIS systems to capture the individual
entrant record data elements. One
commenter also expressed concerns
over the logistics, including the short
timeframe to implement the new
reporting requirements, stating it will
place an undue hardship on the State.
Response: DOL acknowledges that
information technology adjustments
will need to be made to accommodate
the new data fields and is aware that
such adjustment can be a challenge,
given resource constraints.
Consequently, the Department has kept
the data elements to a minimum in
order to reduce the number of required
modifications and to keep costs in
check. DOL is examining the feasibility
of coordinating the application of the
new priority of service reporting
requirements with the implementation
of the new Workforce Investment
Standardized Performance Reporting
(WISPR) system. The Department will
be issuing additional guidance on the
implementation timeframes for these
two new and related sets of reporting
requirements.
Comment: We received ten comments
that focused on the perceived burdens
that would be placed on the States by
the new data collection requirements.
Eight commenters specifically alluded
to cost burdens. One commenter noted
that the introduction of new client
classifications will require changes to
the current ETA 9002 and VETS 200
performance reports. Another
commenter recommended that the
implementation of priority of service
reporting occur simultaneously with
implementation of the WISPR
requirement to avoid the cost of making
multiple changes to reporting systems.
Another commenter recommended that
changes be compatible with the existing
Workforce Investment Act Standardized
Record Data (WIASRD).
Response: As indicated above, DOL
agrees that it would be advantageous if
WISPR and the proposed priority of
service reporting requirements were to
take effect on the same date, and DOL
is considering the feasibility of
implementing the priority of service
requirements in conjunction with the
implementation of WISPR. If the
implementation of the new priority of
service reporting is coordinated with the
implementation of WISPR, challenges
with the ETA 9002 and VETS 200
reports will be eliminated. That is
because those two sets of reports will be
replaced by other reports under WISPR.
Similarly, changes to existing reporting
systems will be avoided if the new
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priority of service reporting is
implemented in conjunction with
WISPR, because the priority of service
requirements will be included in WISPR
from the outset (i.e. there would be no
‘‘retrofitting’’ of existing reporting
systems to accommodate the priority of
service reporting).
In the absence of coordinated
implementation of priority of service
reporting and WISPR, reporting entities
will be required to amend existing
reporting systems. Guidance will be
forthcoming on the implementation
processes and timeframes applicable to
these two related reporting
requirements, along with significant
technical assistance in support of their
implementation.
Comment: Two comments raised
questions about the adequacy of this
data collection. One of the commenters
recommended that the data collection
be expanded to include non-covered
persons so a comparison could be made
with the covered person information.
Another commenter suggested that there
is no mechanism for determining
whether, on the whole, covered persons
received priority in obtaining
employment enhancing services or,
conversely, the frequency with which
non-veterans did.
Response: DOL considered including
non-covered persons and realizes the
advantages in helping to draw
comparisons between the two
populations, but determined that the
benefits did not outweigh the potential
costs and burden. The workforce system
currently serves about 15 million
individuals and about ten percent of
those served are covered persons.
Tracking the estimated 1.5 million
covered entrants gives a narrower lens
for analysis but provides the additional
data point to illustrate the numbers of
veterans accessing the workforce
system. This data point, combined with
normal participant data, will help the
Department to better determine which
of our covered person customers go on
to receive services (or conversely, do not
receive services). In addition, DOL
intends to supplement this data by
sponsoring random surveys of covered
and non-covered persons accessing the
workforce system to assist in comparing
the delivery of services to the two
groups. DOL agrees that the covered
entrant data alone will not tell the
complete story of priority of service but
it will add crucial information that has
been missing from the discussion. Based
on this information, the Department will
be able to determine the number of
veterans who enter the system
compared to the number who receive
services. This indicator will help us to
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determine if the system is, in fact,
serving those who come to our system
and are entitled to priority. To complete
the assessment, DOL will apply
information gathered through the
priority of service evaluation, random
surveys of covered and non-covered
persons, and additional monitoring to
help ensure that covered persons are
receiving priority for publicly-funded
workforce services.
III. Administrative Information
Regulatory Flexibility Analysis,
Executive Order 13272, and Small
Business Regulatory Enforcement
Fairness Act
The Regulatory Flexibility Act (RFA),
5 U.S.C. Chapter 6, requires the
Department to evaluate the economic
impact of this final rule with regard to
small entities. The RFA defines small
entities to include small businesses,
small organizations including not-forprofit organizations, and small
governmental jurisdictions. The
Department must determine whether the
rule imposes a significant economic
impact on a substantial number of such
small entities.
The Department has determined that
there is no significant economic impact
resulting from this final rule. The JVA
mandates that veterans receive priority
of service in all qualified job training
programs. The purpose of this rule is to
implement the JVA’s priority of service
requirement. It defines the program and
reporting requirements for ongoing
programs funded by the Department
(and any new programs created in the
future) and administered by funding
recipients. The priority of service
provisions in the JVA do not create any
new job training programs; rather, the
programs affected by the priority of
service are ongoing. The final rule
requires that these programs give
priority to veterans for the services
provided by the programs. The rule
requires funding recipients to do certain
things, such as implement processes to
identify covered persons at the point of
entry and report on priority of service.
However, the Department funds these
programs and the funds are meant to
include such activities as administration
and reporting. Although certain funding
recipients that operate qualified job
training programs may be small entities,
the Department certifies that this final
rule does not have a significant
economic impact on a substantial
number of small entities under the
provisions of the RFA and also under
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the provisions of Executive Order
13272.
Finally, the Department has also
determined that this final rule is not a
‘‘major rule’’ for purposes of The Small
Business Regulatory Enforcement
Fairness Act (SBREFA), 5 U.S.C.
Chapter 8, which requires agencies to
take certain actions when a ‘‘major rule’’
is promulgated. SBREFA defines a
‘‘major rule’’ as one that has or is likely
to result in an annual effect on the
economy of $100,000,000 or more; a
major increase in costs or prices for,
among other things, State or local
government agencies; or in significant
and adverse effects on the U.S. business
climate. For the reasons already
discussed, this final rule will not have
any significant financial impact.
Accordingly, none of the definitions of
‘‘major rule’’ apply in this instance.
Executive Order 12866
Executive Order 12866 requires that
for each ‘‘significant regulatory action’’
proposed by the Department, the
Department conduct an assessment of
the proposed regulatory action and
provide the Office of Management and
Budget (OMB) with the proposed
regulation and the requisite assessment
prior to publishing the regulation. A
significant regulatory action is defined
to include an action that will have an
annual effect on the economy of $100
million or more, as well as an action
that raises a novel legal or policy issue.
The priority of service implemented
by this final rule will not have an
annual effect on the economy of $100
million or more, for the reasons outlined
above. While much of the rule is
consistent with current DOL policy,
certain portions may raise novel policy
issues. Accordingly, OMB has reviewed
this final rule.
Paperwork Reduction Act
The final rule for 20 CFR part 1010
titled Priority of Service for Covered
Persons contains information collection
(paperwork) requirements that are
subject to review by the Office of
Management and Budget (OMB) under
the Paperwork Reduction Act of 1995
(PRA–95), 44 U.S.C. 3501 et seq., and
OMB’s regulations at 5 CFR part 1320.
PRA–95 defines ‘‘collection of
information’’ as ‘‘the obtaining, causing
to be obtained, soliciting, or requiring
the disclosure to third parties or the
public of facts or opinions by or for an
agency regardless of form or format
* * *’’ (44 U.S.C. 3502(3)(A)). The
information collection requirements
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contained in the proposed rule for 20
CFR Part 1010 were submitted to OMB
on August 15, 2008. On September 19,
2008, OMB instructed the Department to
consider comments submitted in
response to the Notice of Proposed
Rulemaking and to resubmit the
Information Collection Request (ICR) to
OMB at the Final Rule stage.
Pursuant to OMB’s instructions and in
accordance with the requirements of the
PRA, the Department submitted an ICR
to OMB requesting approval for the
information collection requirements
contained in this Final Rule. OMB
approved the ICR on December 17,
2008, under OMB Control Number
1205–0468 which will expire on July 31,
2011.
The Department notes that a Federal
agency cannot conduct or sponsor a
collection of information unless it is
approved by OMB under the PRA, and
displays a currently valid OMB control
number, and the public is not required
to respond to a collection of information
unless it displays a currently valid OMB
control number. Also, notwithstanding
any other provision of law, no person
shall be subject to penalty for failing to
comply with a collection of information
if the collection of information does not
display a currently valid OMB control
number.
In response to the publication of the
ICR, four comments were submitted to
OMB and transmitted to DOL. Three of
these comments also had been
submitted to DOL in response to the
NPRM and duplicates of those
comments were separately submitted to
OMB. The fourth comment was
submitted only to OMB and specifically
addressed the ICR. Based on that
comment, one data item was added to
the Quarterly Aggregate Report and the
burden estimate has been revised to
reflect that addition.
The Department has summarized and
responded to those comments that
addressed the general data collection
and reporting provisions included in
section 1010.330 of the rule in Section
II of this preamble, as part of the
summary and responses to comments on
that section of the rule. Similarly, the
Department has summarized and
responded to those comments that
addressed the specific data collection
and reporting provisions of the ICR in
conjunction with Item A.8 of the revised
Supporting Statement.
The final ICR estimates the number of
respondents and burden hours as
follows:
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Number of
respondents
Respondents
Units of time per respondent
78141
Burden hours
Covered Entrants .......................................................................................
New Covered Participants .........................................................................
Grantees ....................................................................................................
1,586,815
151,530
237
3.15 minutes ....................................
22.4 minutes ....................................
82.49 hours .....................................
83,308
56,571
19,550
Total ....................................................................................................
........................
..........................................................
159,429
Executive Order 13175
Total Estimated Burden Hours:
159,429
Total Estimated Cost Burden: $0
Executive Order 13132
The Department has reviewed this
final rule in accordance with Executive
Order 13132 regarding federalism and
has determined that it does not have
‘‘federalism implications.’’ The rule
does not ‘‘have substantial direct effects
on the States, on the relationship
between the national government and
the States, or on the distribution of
power and responsibilities among the
various levels of government.’’ This rule
implements the priority of services for
qualified job training programs.
Although States are recipients of funds
for many qualified job training
programs, this rule does not have a
substantial direct effect on the States; it
merely establishes certain conditions on
the receipt of program funds. This rule
does nothing to alter either the
relationship between the national
government and the States, or the
distribution of power and
responsibilities among the various
levels of government. Accordingly, this
final rule does not have ‘‘federalism
implications.’’
Unfunded Mandates Reform Act of 1995
For purposes of the Unfunded
Mandates Reform Act (UMRA) of 1995,
this final rule does not include any
Federal mandate that may result in
increased expenditures by State, local
and tribal governments, or by the
private sector. This rule merely
establishes that recipients of qualified
job training funds must provide priority
of service to veterans served with such
funds. As this final rule does not impose
any unfunded Federal mandate, the
UMRA is not implicated.
Executive Order 13045
Executive Order 13045 concerns the
protection of children from
environmental health risks and safety
risks. This rule implements the priority
of service provisions for qualified job
training programs funded by the
Department. This final rule has no
impact on safety or health risks to
children.
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Executive Order 13175 addresses the
unique relationship between the Federal
Government and Indian tribal
governments. The order requires Federal
agencies to take certain actions when
regulations have ‘‘tribal implications.’’
Required actions include consulting
with Tribal Governments prior to
promulgating a regulation with tribal
implications and preparing a tribal
impact statement. The order defines
regulations as having ‘‘tribal
implications’’ when they have
substantial direct effects on one or more
Indian tribes, on the relationship
between the Federal Government and
Indian tribes, or on the distribution of
power and responsibilities between the
Federal Government and Indian tribes.
The Department has reviewed this
final rule and concludes that it does not
have tribal implications. Although tribal
governments are recipients of some
qualified job training program funds,
this rule merely establishes certain
conditions on the receipt of program
funds. Indian tribes will not even be
required to perform the new reporting
duties described in this rule because the
programs they administer do not serve
an average of 1000 covered persons per
year. The rule does nothing to affect
either the relationship or the
distribution of power and
responsibilities between the Federal
Government and Indian tribes.
Therefore, this final rule does not have
tribal implications for purposes of
Executive Order 13175.
Environmental Impact Assessment
The Department has reviewed this
final rule in accordance with the
requirements of the National
Environmental Policy Act (NEPA) of
1969 (42 U.S.C. 4321 et seq.), the
regulations of the Council on
Environmental Quality (40 CFR part
1500), and the Department’s NEPA
procedures (29 CFR part 11). The final
rule will not have a significant impact
on the quality of the human
environment, and thus the Department
has not prepared an environmental
assessment or an environmental impact
statement.
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Assessment of Federal Regulations and
Policies on Families
Section 654 of the Treasury and
General Government Appropriations
Act, enacted as part of the Omnibus
Consolidated and Emergency
Supplemental Appropriations Act of
1999 (Pub. L. 105–277, 112 Stat. 2681),
requires the Department to assess the
impact of this rule on family well-being.
A rule that is determined to have a
negative affect on families must be
supported with an adequate rationale.
The Department has assessed this final
rule and has determined that it will not
have a negative effect on families.
Privacy Act
The Privacy Act of 1974 (5 U.S.C.
552a) provides safeguards to individuals
concerning their personal information
which the Government collects. The Act
requires certain actions by an agency
that collects information on individuals
when that information contains
personally identifying information such
as Social Security Numbers or names.
Because this final rule does not require
a new collection of personallyidentifiable information, the Privacy Act
does not apply in this instance.
Executive Order 12630
This final rule is not subject to
Executive Order 12630, Governmental
Actions and Interference with
Constitutionally Protected Property
Rights, because it does not involve
implementation of a policy with takings
implications.
Executive Order 12988
This final rule has been drafted and
reviewed in accordance with Executive
Order 12988, Civil Justice Reform, and
will not unduly burden the Federal
court system. The regulation has been
written so as to minimize litigation and
provide a clear legal standard for
affected conduct, and has been reviewed
carefully to eliminate drafting errors and
ambiguities.
Executive Order 13211
This final rule is not subject to
Executive Order 13211, because it will
not have a significant adverse effect on
the supply, distribution, or use of
energy.
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Plain Language
The Department drafted this final rule
in plain language.
Catalogue of Federal Domestic
Assistance Number
This final rule is not program-specific;
rather it applies across a broad spectrum
of qualified job training programs.
Therefore, designation of a listing in the
Catalog of Federal Domestic Assistance
would not be appropriate.
List of Subjects in 20 CFR Part 1010
Employment, Grant programs—Labor,
Veterans.
■ For reasons stated in the preamble, 20
CFR Ch. IX is amended by adding part
1010 to read as follows:
PART 1010—APPLICATION OF
PRIORITY OF SERVICE FOR COVERED
PERSONS
Subpart A—Purpose and Definitions
Sec.
1010.100 What is the purpose and scope of
this part?
1010.110 What definitions apply to this
part?
Subpart B—Understanding Priority of
Service
1010.200 What is priority of service?
1010.210 In which Department job training
programs do covered persons receive
priority of service?
1010.220 How are recipients required to
implement priority of service?
1010.230 In addition to the responsibilities
of all recipients, do States and political
subdivisions of States have any
particular responsibilities in
implementing priority of service?
1010.240 Will the Department be
monitoring for compliance with priority
of service?
1010.250 Can priority of service be waived?
Subpart C—Applying Priority of Service
1010.300 What processes are to be
implemented to identify covered
persons?
1010.310 How will priority of service be
applied?
1010.320 Will recipients be required to
collect information and report on
priority of service?
1010.330 What are the responsibilities of
recipients to collect and maintain data
on covered and non-covered persons?
Authority: Pub. L. 109–461 (Dec. 22, 2006),
section 605 [38 U.S.C. 4215 Note]; 38 U.S.C.
4215.
Subpart A—Purpose and Definitions
§ 1010.100 What is the purpose and scope
of this part?
(a) Part 1010 contains the Department
regulations implementing priority of
service for covered persons. Priority of
service for covered persons is
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authorized by section 2(a)(1) of JVA (38
U.S.C. 4215). These regulations fulfill
section 605 of the Veterans Benefits,
Health Care, and Information
Technology Act of 2006, Pub. L. 109–
461 (Dec. 22, 2006), which requires the
Department to implement priority of
service via regulation.
(b) As provided in § 1010.210, this
part applies to all qualified job training
programs.
§ 1010.110
part?
What definitions apply to this
The following definitions apply to
this part:
Covered person as defined in section
2(a) of the JVA (38 U.S.C. 4215(a))
means a veteran or eligible spouse.
Department or DOL means the United
States Department of Labor, including
its agencies and organizational units
and their representatives.
Eligible Spouse as defined in section
2(a) of the JVA (38 U.S.C. 4215(a))
means the spouse of any of the
following:
(1) Any veteran who died of a serviceconnected disability;
(2) Any member of the Armed Forces
serving on active duty who, at the time
of application for the priority, is listed
in one or more of the following
categories and has been so listed for a
total of more than 90 days:
(i) Missing in action;
(ii) Captured in line of duty by a
hostile force; or
(iii) Forcibly detained or interned in
line of duty by a foreign government or
power;
(3) Any veteran who has a total
disability resulting from a serviceconnected disability, as evaluated by the
Department of Veterans Affairs;
(4) Any veteran who died while a
disability, as indicated in paragraph (3)
of this section, was in existence.
Grant means an award of Federal
financial assistance by the Department
of Labor to an eligible recipient.
Jobs for Veterans Act (JVA) means
Public Law 107–288 (2002). Section 2(a)
of the JVA, codified at 38 U.S.C. 4215(a),
provides priority of service for covered
persons.
Non-covered person means any
individual who meets neither the
definition of ‘‘veteran,’’ as defined in
this section, nor the definition of
‘‘eligible spouse’’ as defined in this
section.
Qualified job training program means
any program or service for workforce
preparation, development, or delivery
that is directly funded, in whole or in
part, by the Department of Labor.
Recipient means an entity to which
federal financial assistance, in whole or
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in part, is awarded directly from the
Department or through a sub-award for
any qualified job training program.
Secretary means the Secretary of the
Department of Labor.
Veteran means a person who served
in the active military, naval, or air
service, and who was discharged or
released therefrom under conditions
other than dishonorable, as specified in
38 U.S.C. 101(2). Active service
includes full-time duty in the National
Guard or a Reserve component, other
than full-time duty for training
purposes.
Subpart B—Understanding Priority of
Service
§ 1010.200
What is priority of service?
(a) As defined in section 2(a) of the
JVA (38 U.S.C. 4215(a)) ‘‘priority of
service’’ means, with respect to any
qualified job training program, that a
covered person shall be given priority
over a non-covered person for the
receipt of employment, training, and
placement services provided under that
program, notwithstanding any other
provision of the law.
(b) Priority in the context of providing
priority of service to veterans and other
covered persons in qualified job training
programs covered by this regulation
means the right to take precedence over
non-covered persons in obtaining
services. Depending on the type of
service or resource being provided,
taking precedence may mean:
(1) The covered person receives
access to the service or resource earlier
in time than the non-covered person; or
(2) If the service or resource is
limited, the covered person receives
access to the service or resource instead
of or before the non-covered person.
§ 1010.210 In which Department job
training programs do covered persons
receive priority of service?
(a) Priority of service applies to every
qualified job training program funded,
in whole or in part, by the Department,
including:
(1) Any such program or service that
uses technology to assist individuals to
access workforce development programs
(such as job and training opportunities,
labor market information, career
assessment tools, and related support
services); and
(2) Any such program or service
under the public employment service
system, One-Stop Career Centers, the
Workforce Investment Act of 1998, a
demonstration or other temporary
program; any workforce development
program targeted to specific groups; and
those programs implemented by States
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or local service providers based on
Federal block grants administered by
the Department.
(b) The implementation of priority of
service does not change the intended
function of a program or service.
Covered persons must meet all statutory
eligibility and program requirements for
participation in order to receive priority
for a program or service.
§ 1010.220 How are recipients required to
implement priority of service?
(a) An agreement to implement
priority of service, as described in these
regulations and in any departmental
guidance, is a condition for receipt of all
Department job training program funds.
(b) All recipients are required to
ensure that priority of service is applied
by all sub-recipients of Department
funds. All program activities, including
those obtained through requests for
proposals, solicitations for grant awards,
sub-grants, contracts, sub-contracts, and
(where feasible) memoranda of
understanding or other service
provision agreements, issued or
executed by qualified job training
program operators, must be
administered in compliance with
priority of service.
§ 1010.230 In addition to the
responsibilities of all recipients, do States
and political subdivisions of States have
any particular responsibilities in
implementing priority of service?
(a) Pursuant to their responsibility
under the Workforce Investment Act of
1998, States are required to address
priority of service in their
comprehensive strategic plan for the
State’s workforce investment system.
Specifically, States must develop
policies for the delivery of priority of
service by the State Workforce Agency
or Agencies, Local Workforce
Investment Boards, and One-Stop Career
Centers for all qualified job training
programs delivered through the State’s
workforce system. The policy or policies
must require that processes are in place
to ensure that covered persons are
identified at the point of entry and given
an opportunity to take full advantage of
priority of service. These processes shall
be undertaken to ensure that covered
persons are aware of:
(1) Their entitlement to priority of
service;
(2) The full array of employment,
training, and placement services
available under priority of service; and
(3) Any applicable eligibility
requirements for those programs and/or
services.
(b) The State’s policy or policies must
require Local Workforce Investment
Boards to develop and include in their
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strategic local plan, policies
implementing priority of service for the
local One-Stop Career Centers and for
service delivery by local workforce
preparation and training providers.
These policies must establish processes
to ensure that covered persons are
identified at the point of entry so that
covered persons are able to take full
advantage of priority of service. These
processes shall ensure that covered
persons are aware of:
(1) Their entitlement to priority of
service;
(2) The full array of employment,
training, and placement services
available under priority of service; and
(3) Any applicable eligibility
requirements for those programs and/or
services.
§ 1010.240 Will the Department be
monitoring for compliance with priority of
service?
(a) The Department will monitor
recipients of funds for qualified job
training programs to ensure that covered
persons are made aware of and afforded
priority of service.
(b) Monitoring priority of service will
be performed jointly between the
Veterans’ Employment and Training
Service (VETS) and the DOL agency
responsible for the program’s
administration and oversight.
(c) A recipient’s failure to provide
priority of service to covered persons
will be handled in accordance with the
program’s established compliance
review processes. In addition to the
remedies available under the program’s
compliance review processes, a
recipient may be required to submit a
corrective action plan to correct such
failure.
§ 1010.250
waived?
Can priority of service be
No, priority of service cannot be
waived.
Subpart C—Applying Priority of
Service
§ 1010.300 What processes are to be
implemented to identify covered persons?
(a) Recipients of funds for qualified
job training programs must implement
processes to identify covered persons
who physically access service delivery
points or who access virtual service
delivery programs or Web sites in order
to provide covered persons with timely
and useful information on priority of
service at the point of entry. Point of
entry may include reception through a
One-Stop Career Center established
pursuant to the Workforce Investment
Act of 1998, as part of an application
process for a specific program, or
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78143
through any other method by which
covered persons express an interest in
receiving services, either in-person or
virtually.
(b)(1) The processes for identifying
covered persons at the point of entry
must be designed to:
(i) Permit the individual to make
known his or her covered person status;
and
(ii) Permit those qualified job training
programs specified in § 1010.330(a)(2) to
initiate data collection for covered
entrants.
(2) The processes for identifying
covered persons are not required to
verify the status of an individual as a
veteran or eligible spouse at the point of
entry unless they immediately undergo
eligibility determination and enrollment
in a program.
(c) The processes for identifying
covered persons must ensure that:
(1) Covered persons are identified at
the point of entry to allow covered
persons to take full advantage of priority
of service; and
(2) Covered persons are to be made
aware of:
(i) Their entitlement to priority of
service;
(ii) The full array of employment,
training, and placement services
available under priority of service; and
(iii) Any applicable eligibility
requirements for those programs and/or
services.
§ 1010.310
applied?
How will priority of service be
(a) Recipients of funds for qualified
job training programs must implement
processes in accordance with § 1010.300
to identify covered persons at the point
of entry, whether in person or virtual, so
the covered person can be notified of
their eligibility for priority of service.
Since qualified job training programs
may offer various types of services
including staff-assisted services as well
as self-services or informational
activities, recipients also must ensure
that priority of service is implemented
throughout the full array of services
provided to covered persons by the
qualified job training program.
(b) Three categories of qualified job
training programs affect the application
of priority of service: universal access,
discretionary targeting and statutory
targeting. To obtain priority, a covered
person must meet the statutory
eligibility requirement(s) applicable to
the specific program from which
services are sought. For those programs
that also have discretionary or statutory
priorities or preferences pursuant to a
Federal statute or regulation, recipients
must coordinate providing priority of
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service with applying those other
priorities, as prescribed in paragraphs
(b)(2) and (b)(3) of this section.
(1) Universal access programs operate
or deliver services to the public as a
whole; they do not target specific
groups. These programs are required to
provide priority of service to covered
persons.
(2) Discretionary targeting programs
focus on a particular group, or make
efforts to provide a certain level of
service to such a group, but do not
specifically mandate that the favored
group be served before other eligible
individuals. Whether these provisions
are found in a Federal statute or
regulation, priority of service will apply.
Covered persons must receive the
highest priority for the program or
service, and non-covered persons within
the discretionary targeting will receive
priority over non-covered persons
outside the discretionary targeting.
(3) Statutory targeting programs are
programs derived from a Federal
statutory mandate that requires a
priority or preference for a particular
group of individuals or requires
spending a certain portion of program
funds on a particular group of persons
receiving services. These are mandatory
priorities. Recipients must determine
each individual’s covered person status
and apply priority of service as
described below:
(i) Covered persons who meet the
mandatory priorities or spending
requirement or limitation must receive
the highest priority for the program or
service;
(ii) Non-covered persons within the
program’s mandatory priority or
spending requirement or limitation,
must receive priority for the program or
service over covered persons outside the
program-specific mandatory priority or
spending requirement or limitation;
and,
(iii) Covered persons outside the
program-specific mandatory priority or
spending requirement or limitation
must receive priority for the program or
service over non-covered persons
outside the program-specific mandatory
priority or spending requirement or
limitation.
§ 1010.320 Will recipients be required to
collect information and report on priority of
service?
Yes. Every recipient of funds for
qualified job training programs must
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collect such information, maintain such
records, and submit reports containing
such information and in such formats as
the Secretary may require related to the
provision of priority of service.
§ 1010.330 What are the responsibilities of
recipients to collect and maintain data on
covered and non-covered persons?
(a) General Requirements. Recipients
must collect information in accordance
with instructions issued by the
Department.
(1) Recipients must collect two broad
categories of information:
(i) For the qualified job training
programs specified in paragraph (a)(2) of
this section, information must be
collected on covered persons from the
point of entry, as defined in
§ 1010.300(a), and as provided in
paragraph (b) of this section; and,
(ii) For all qualified job training
programs, including the programs
specified in paragraph (a)(2) of this
section, information must be collected
on covered and non-covered persons
who receive services, as prescribed by
the respective qualified job training
programs, as provided in paragraph (c)
of this section.
(2) For purposes of paragraph (a)(1) of
this section, qualified job training
programs that served, at the national
level, 1,000 or more veterans per year
for the three most recent years of
program operations (currently the
Wagner-Peyser, WIA Adult, WIA
Dislocated Worker, WIA National
Emergency Grant, and Senior
Community Service Employment
Programs) must collect information and
report on covered entrants. The Trade
Adjustment Assistance Program must
collect information and report on
covered entrants on the effective date of
the next information collection
requirement applicable to that program,
whether that is for a renewal of an
existing approved information
collection or for approval of a new
information collection.
(3) For purposes of this section,
covered persons at the point of entry are
referred to as ‘‘covered entrants.’’ This
group includes two further subgroups:
veterans and eligible spouses as defined
in § 1010.110.
(b) Collection and Maintenance of
Data on Covered Entrants. In
accordance with instructions issued by
the Department, recipients of assistance
for the programs specified in paragraph
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(a)(2) of this section must collect and
report individual record data for all
covered entrants from the point of entry.
(c) Collection and Maintenance of
Data on Covered and Non-Covered
Persons Who Receive Services. In
accordance with instructions issued for
individual qualified job training
programs, all recipients must collect
and maintain data on covered and noncovered persons who receive services,
including individual record data for
those programs that require
establishment and submission of
individual records for persons receiving
services.
(1) The information to be collected
shall include, but is not limited to:
(i) The covered and non-covered
person status of all persons receiving
services;
(ii) The types of services provided to
covered and non-covered persons;
(iii) The dates that services were
received by covered and non-covered
persons; and;
(iv) The employment outcomes
experienced by covered and noncovered persons receiving services.
(2)(i) Except as provided in paragraph
(c)(2)(ii) of this section, for persons
receiving services, recipients must
apply the definitions set forth in
§ 1010.110 to distinguish covered from
non-covered persons receiving services
and, within covered persons, to
distinguish veterans from eligible
spouses.
(ii) Until qualified job training
programs adopt the definitions for
covered and non-covered persons set
forth at § 1010.110 through the
publication of requirements pursuant to
the Paperwork Reduction Act, recipients
must collect data on the services
provided to and the outcomes
experienced by veterans (however
defined) and non-veterans receiving
services in accord with regulations,
policies and currently approved
information collections.
(d) All information must be stored
and managed in a manner that ensures
confidentiality.
Signed at Washington, DC, this 15th day of
December 2008.
Charles S. Ciccolella,
Assistant Secretary, Veterans Employment
and Training Service.
[FR Doc. E8–30166 Filed 12–18–08; 8:45 am]
BILLING CODE 4510–79–P
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Agencies
[Federal Register Volume 73, Number 245 (Friday, December 19, 2008)]
[Rules and Regulations]
[Pages 78132-78144]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-30166]
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Part VIII
Department of Labor
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Veterans' Employment and Training Service
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20 CFR Part 1010
Priority of Service for Covered Persons; Final Rule
Federal Register / Vol. 73, No. 245 / Friday, December 19, 2008 /
Rules and Regulations
[[Page 78132]]
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DEPARTMENT OF LABOR
Veterans' Employment and Training Service
20 CFR Part 1010
RIN 1293-AA15
Priority of Service for Covered Persons
AGENCY: Veterans' Employment and Training Service, Labor
ACTION: Final rule.
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SUMMARY: The Veterans' Employment and Training Service (VETS) of the
Department of Labor (Department or DOL) is issuing this final rule to
implement priority of service in qualified job training programs
prescribed in section 2(a)(1) of the Jobs for Veterans Act (JVA). DOL
issued a notice of proposed rulemaking (NPRM) on August 15, 2008
outlining proposed provisions implementing priority of service for
covered persons in qualified DOL job training programs.
DATES: Effective Date: The final rule will become effective on January
19, 2009.
FOR FURTHER INFORMATION CONTACT: Pamela Langley, Chief, Division of
Grant Programs, Veterans' Employment and Training Service, U.S.
Department of Labor, 200 Constitution Avenue, NW., Room S-1312,
Washington, DC 20210, Langley.Pamela@dol.gov, (202) 693-4708 (this is
not a toll-free number) or (202) 693-4760 (TTY/TDD).
SUPPLEMENTARY INFORMATION: This preamble contains three sections.
Section I provides general background information on the development of
the final rule. Section II discusses the comments received on the NPRM
and the related regulatory provisions included in the final rule.
Section III addresses the administrative requirements for the final
rule, as mandated by statute and executive order.
I. Background
On August 15, 2008, the Department published an NPRM (73 FR 48086)
proposing regulations to implement priority of service in qualified job
training programs prescribed in section 2(a)(1) of the JVA. We invited
comments for a 60-day period, which closed on October 14, 2008. All
comments received during the comment period have been posted on
www.regulations.gov.
On November 7, 2002, President Bush signed the Jobs for Veterans
Act, Public Law (Pub. L.) 107-288 (Nov. 7, 2002). One provision of the
JVA, codified at 38 United States Code (U.S.C.) Section 4215, creates a
priority of service requirement for covered persons in qualified DOL
job training programs. Since the passage of the Act, the Department has
provided policy guidance to the workforce investment system regarding
the implementation of priority of service, including the Department's
Employment and Training Administration (ETA) issuance of Training and
Employment Guidance Letter (TEGL) No. 05-03 in September 2003. TEGL No.
05-03 applies to a majority of the job training programs impacted by
priority of service. On December 22, 2006, President Bush signed the
Veterans' Benefits, Health Care, and Information Technology Act of 2006
(Pub. L. 109-461). Section 605 of that statute requires the Department
to implement priority of service via regulation. The final rule
implements priority of service in response to that requirement.
The JVA provides that veterans and eligible spouses of veterans (as
defined in Sec. 1010.110) are identified as covered persons and are
entitled to priority over non-covered persons for the receipt of
employment, training, and placement services provided under new or
existing qualified job training programs, notwithstanding any other
provision of law. The JVA defines qualified job training programs as
``any workforce preparation, development or delivery program or service
that is directly funded, in whole or in part, by the Department.'' 38
U.S.C. 4215(a)(2). Currently, such programs are offered by many
agencies within the Department, including, but not limited to, ETA,
VETS, the Women's Bureau, and the Office of Disability Employment
Policy (ODEP).
The JVA, and the priority of service it requires, is an important
acknowledgment of the sacrifices of the men and women who have served
in the U.S. armed forces. The Department's strategic vision for
priority of service to covered persons honors veterans and eligible
spouses of veterans as our ``heroes at home'' and envisions that DOL-
funded employment and training programs, including the publicly-funded
workforce investment system, will identify, inform and deliver
comprehensive services to covered persons as part of strategic
workforce development activities across the country. Veterans and
eligible spouses possess unique attributes and contribute greatly in
the workplace. They are an important source of highly skilled and
experienced talent and play an important role in regional workforce
development strategies. They are highly sought after by employers and
they make excellent employees. Implementation of priority of service is
designed to provide covered persons with clear entry points into high-
growth, high wage civilian jobs and easily accessible post-secondary
education and training to support their advancement along career
pathways which will benefit regional economies.
One-Stop Career Centers are the delivery point for a significant
percentage of qualified job training programs and services covered by
the JVA and are required to implement priority of service. All One-Stop
Career Centers should have clear strategies for providing veterans and
eligible spouses of veterans with the highest quality of service at
every phase of services offered. This can range from basic functions of
the One-Stop System, such as assistance with job search and
identification of needed skills, to more customized initiatives such as
creating career pathways, with corresponding competency assessments and
training opportunities, or other strategies which allow covered persons
to advance their careers in high growth sectors of the economy. The
Department expects that the One-Stop System will draw on all available
resources to support the reemployment needs of covered persons.
Veterans and their eligible spouses have specific needs and
concerns that can be addressed by DOL-funded employment and training
program providers developing strategies for serving covered persons.
When military service has ended, a major concern for many veterans is
getting a good job. Some veterans may experience particular difficulty,
both in finding employment and in readjusting to civilian work
environments. DOL-funded employment and training programs should work
with employers to ensure that the value a veteran brings to the table
is understood and to address any concerns that employers may have about
hiring veterans.
Those veterans who have sustained injuries or illnesses as a result
of their military service may require additional support in developing
skills to secure employment. Similarly, those spouses of recently
separated veterans who are eligible for priority also may need
employability development assistance. DOL, the Department of Defense
and the Department of Veterans Affairs are collaborating in closely
monitoring the rehabilitation of wounded and injured veterans assessing
their job readiness and assisting their preparations for civilian
employment. In those instances in which civilian employment does not
appear to be a realistic objective for the
[[Page 78133]]
veteran, employability development activities should, if appropriate,
focus upon the spouse who is eligible for priority. These ``heroes at
home'' should be immediately provided the full array of employment and
training services to ensure that they make a successful transition into
employment that supports their economic independence.
In addition to assisting recently separated veterans and eligible
spouses to meet the challenges of their specific situation, priority of
service also is intended to assist those veterans and eligible spouses
for whom military service concluded some time ago. These veterans and
eligible spouses are likely to have significant civilian labor market
experience. However, they may experience dislocation or find that they
are underemployed relative to their skills and experience. Priority of
service is intended to assist all veterans and eligible spouses to
improve their civilian sector employment and earnings.
Priority of service does not change a program's intended functions;
covered persons still need to meet all statutory eligibility and
program requirements for participation. Some DOL-funded employment and
training programs have only general program eligibility requirements
and do not statutorily target specific groups. These programs require
only a straightforward implementation of priority of service. However,
some DOL-funded employment and training programs do carry existing
statutory targeting provisions that must be taken into account when
applying priority of service. The purpose of this final rule is to
articulate how priority of service is to be applied across all existing
and new qualified DOL job training programs.
II. Discussion of the Comments and Regulatory Provisions
Summary of Comments
The Department received 28 submissions commenting on the NPRM by
the close of the comment period. All comments were carefully reviewed.
Of the 28 comments, 17 were from organizations with an interest in
veterans' employment services. Of the 17 comments from organizations,
13 were from State Workforce Agencies, one was from a State veterans'
commission, one was from a local Workforce Investment Board (WIB), one
was from a private non-profit service provider and one was from a
national association of State Workforce Agencies. Of the 11 comments
from individuals, three identified themselves as employees of State
Workforce Agencies.
A number of comments supported the proposed rule for implementing
priority of service to veterans and eligible spouses of veterans in all
employment and training programs funded in whole or in part by DOL. We
discuss these comments here, but otherwise have no formal response to
them. One commenter suggested that many veterans experience extreme
hardships financially and physically due to their service to our
country. This commenter suggested that veterans deserve to receive
priority assistance to reintegrate back into civilian life. A second
commenter was supportive of informing veterans of their entitlement to
priority of service at the point of entry. A third commenter pointed
out that priorities for veterans already exist in DOL programs. Two
other commenters fully supported DOL efforts to ensure that veterans
and their eligible spouses receive priority access to employment,
training, and placement services. Another commenter agreed with DOL's
efforts to ensure covered persons receive priority to employment,
training, and placement services. This commenter indicated that his
State already has a process for veterans to identify themselves upon
check-in, with the help of front-line staff.
In addition to the comments that supported the proposed rule,
nearly all the comments offered suggestions to facilitate the provision
of priority of service to veterans and other eligible persons. All
relevant comments are discussed below.
Discussion of Comments on Subpart A--Purpose and Definitions
This subpart addresses the purpose and scope of these regulations
(Sec. 1010.100) and the definitions that apply for the purpose of
these regulations (Sec. 1010.110). We received no comments in
reference to Sec. 1010.100 but we did receive some comments regarding
Sec. 1010.110. Those comments and our responses follow.
Defining Key Terms (Sec. 1010.110)
Veteran
Comment: Seven comments suggested that program administration by
the States would be facilitated if the definition of veteran that
appears at 38 U.S.C. 4211(4) were substituted in place of the
definition that appears at 38 U.S.C. 101(2) and is specified in Sec.
1010.110 of these regulations. One commenter stated that in his opinion
expanding the definition to give priority of service to non-disabled
veterans who served less than 180 days would dilute the concept of
priority of service and result in the diversion of priority away from
those veterans who truly deserve priority in an environment of limited
resources.
Response: We have not changed the definition of ``veteran'' for
purposes of providing priority to DOL-funded employment and training
programs because we are bound by law to use the definition proposed. In
our view, Congress clearly intended that priority be made available to
a broad category of former service members. The statute is quite clear
at 38 U.S.C. 4215(a)(1)(A) that ``covered person'' for purposes of
priority includes a ``veteran'' rather than the more narrow definition
of ``eligible veteran'' that is applied, for example, to statutory
reporting requirements for Wagner-Peyser State Grants and to program
eligibility requirements for Jobs for Veterans State Grants. Since
section 4215 does not specifically define the term ``veteran'' for
purposes of applying the priority, we are required to look to title
38's general definition of that term in section 101. See, Florida Dept.
of Banking and Finance v. Board of Governors of the Federal Reserve
System, 800 F. 2d 1534, 1536 (11th Cir 1986) (``It is an elementary
precept of statutory construction that the definition of a term in the
definitional section of a statute controls the construction of that
term wherever it appears throughout the statute.''). The definition we
proposed in Sec. 1010.110, comes from 38 U.S.C. 101(2) which provides
the broad definition of ``veteran'' that is required to be used for
purposes of title 38.
We recognize that the definition of veteran to be applied for the
purposes of the priority differs from and is broader than the
definition of eligible veteran, which is applied for program
eligibility for Jobs for Veterans State Grants, but we also note that
section 4215 and these regulations do not change eligibility for such
services nor for any other program. Section 1010.210(b) of this rule
clearly provides that covered persons still must meet the statutory
eligibility requirements applicable to qualified job training programs.
Similarly, the definition of veteran to be applied for the purposes of
the priority does not alter the statutory reporting requirements for
Wagner-Peyser State Grants, which require application of the more
narrowly defined definition of eligible veteran.
While we are unable to change the definition of veteran for
purposes of the priority, we acknowledge the concerns of several
commenters that the broad definition used in Sec. 1010.110 fails to
take into account such factors as length of service, nature of
separation, combat
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experience, etc. We have determined that it would impose undue burdens
on the workforce system and on covered persons to establish further
priorities among covered persons at this time (see discussion of Sec.
1010.310 below). Therefore, we intend to focus on implementing the
regulations as proposed, while anticipating that these types of factors
will inform our consideration of additional priorities among covered
persons in the future.
Comment: Four comments pointed out that program administration by
the States would be facilitated by using one definition common to all,
rather than the several different definitions of ``veteran'' in use for
various DOL and other federally funded programs.
Response: A benefit of using a definition of veteran that
replicates the definition in 38 U.S.C. 101(2) is that it is the one
that is most compatible with the affected DOL programs' respective
other eligibility criteria. In effect, adoption of this definition of
veteran is expected to result in the maximum feasible amount of the
commonality or standardization that is recommended by these comments.
With respect to the different definitions of veteran established by
statute for eligibility for certain workforce programs, such as the
broad definition established for eligibility under the Workforce
Investment Act (WIA) and the narrow definition established for
eligibility under the Jobs for Veterans State Grants, the Department
does not have the authority to revise these definitions through these
regulations. The Department is aware that Government Accounting Office
(GAO) recently recommended (GAO-07-594) that the Congress consider
standardizing the veteran definition applicable for eligibility in all
workforce programs.
Comment: Three comments cited the need to clarify the veteran
definition in the regulations to assure that it is understood that an
individual must serve a period of ``active duty'' to be considered a
``veteran,'' and that National Guard members and Reservists may be
considered ``veterans'' if they served on active duty.
Response: We agree with the commenters that the rule will be
improved by clarifying the eligibility for priority of National Guard
members and Reservists who served on active duty. As described above,
we look to 38 U.S.C. 101 for the definition of the term ``veteran''
because it is not specifically defined in sec. 4215. Among the
requirements to qualify as a veteran under sec. 101(2), an individual
must have served in ``active military, naval or air service.''
Participation in such service is determined by the standards in
definitions at section 101(21), (22), (23) and (24). Those subsections
define ``active military, naval or air service'' and the meanings of
active duty, active duty for training, and inactive duty for training
relevant to National Guard and Reserve members. These provisions
establish that full-time National Guard and Reserve duty, other than
full-time duty for training purposes, qualifies as active duty.
Accordingly, we are revising the definition of ``veteran'' in Sec.
1010.110 by adding a new sentence at the end to state: ``Active service
includes full-time duty in the National Guard or a Reserve component,
other than full-time duty for training purposes.''
Comment: Other comments on the definition of ``veteran'' questioned
whether it matters if National Guard members served domestically or
overseas or if an individual left the armed forces prior to completion
of training.
Response: In both cases, these circumstances are irrelevant to the
determination of veteran status for purposes of applying priority.
Under Sec. 1010.110, as amended in the final rule, the location of the
service of a National Guard member, a member of the Reserve forces, or
for that matter, by a member of the regular Armed Forces, is irrelevant
with respect to his or her status as a veteran. The determining factor
is whether the person has a qualifying period of ``active duty'' as
provided in Sec. 1010.110. Similarly, it is the nature of the
discharge (other than dishonorable) not the details of the person's
service career that is the determining factor in the definition of
``veteran.''
Comment: One comment proposed simplifying the definition of
``veteran'' to, ``any veteran with a DD-214 with a discharge status
other than dishonorable is a covered person.''
Response: We have determined that such a change would not be
beneficial and we have not revised the definition of veteran. It would
codify in regulations reliance upon a single document, which could be
replaced or change over time and which may not be the only reliable
source for verifying veteran status. As discussed below in the response
to a comment on Sec. 1010.300, DOL intends to identify supplementary
documents that provide equivalent verification of veteran status and to
establish in policy guidance their acceptability for this purpose. That
guidance is expected to be revised over time as the agencies
responsible for maintaining the supplementary documentation modify
their procedures. Codification of the DD-214 in these regulations as
the sole criterion for veteran status would preclude this flexibility
and impose practical burdens, both upon the persons intended to be the
beneficiaries of this statute and the agencies that administer the
affected programs.
Eligible Spouse
Five comments suggested that, in the final rule, the Department
should add to the list of ``covered persons'' defined in section
1010.110 the spouses of persons who died while on active military duty.
Response: DOL is sympathetic to that proposal but finds no evidence
that Congress intended the definition of ``eligible spouse'' enacted in
the Jobs for Veterans Act to be interpreted to include the spouses of
those who died while on active duty. The law clearly delineates the
circumstances in which a spouse may qualify as a covered person:
(1) Any veteran who died of a service-connected disability;
(2) Any member of the Armed Forces serving on active duty who, at
the time of application for the priority, is listed in one or more of
the following categories and has been so listed for a total of more
than 90 days:
(i) Missing in action;
(ii) Captured in line of duty by a hostile force; or
(iii) Forcibly detained or interned in line of duty by a foreign
government or power;
(3) Any veteran who has a total disability resulting from a
service-connected disability, as evaluated by the Department of
Veterans Affairs;
(4) Any veteran who died while a disability, as indicated in
paragraph (3) of this section, was in existence.
From this list, we can only infer that had the statute intended to
cover the spouses of service members who died while on active duty, it
would have done so explicitly.
Comment: One comment requested further clarification as to what
defines a ``spouse'' by asking whether State law, Federal law, or
military law is the statutory authority, and also asked the corollary
question about documentation that would be required to prove the spouse
status.
Response: Existing Departmental policy guidance to the States
regarding programs affected by the priority of service regulation gives
the States the authority to determine marital status issues in
accordance with State law, unless the relevant Federal law governing a
program is prescriptive in those respects, and also, therefore, to
determine the appropriate form(s) of
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documentation required as proof of eligibility for services or benefits
that are based on marital status. We think it unnecessary to embed such
guidance in these regulations.
Comment: One comment stated that only a spouse with U.S.
citizenship married to the veteran at the time of discharge or
retirement should be eligible for assistance.
Response: The JVA does not exclude from eligibility spouses who
were not citizens at the time that the veteran was discharged or
retired, nor does it stipulate that a spouse had to be married to the
veteran at the time of his or her discharge or retirement. Therefore,
the Department sees no compelling reason to deny assistance to any
spouse on either basis. However, covered persons are required to meet
all program eligibility requirements, which may include legal
authorization to engage in employment.
Comment: One comment inquired about any time limits that apply to
the ``eligible spouse'' status, and also about the impact of re-
marriage following death of the veteran on the eligibility of the
widow(er) to be considered a covered person.
Response: Although we are not revising the rule in response this
comment, we appreciate the comment, recognize the need to clarify
through policy guidance the distinctions identified below and we intend
to do so. Criteria (1) and (4) of the eligible spouse definition
(spouse of a veteran who died of a service-connected disability or
while a service-connected total disability was in existence) clearly
imply that the spouse becomes eligible under those two criteria upon
the death of the veteran. The JVA does not include a disqualification
clause pertaining to re-marriage following the death of the veteran and
we see no reason to assume that one was intended. Similarly, if a
widow(er) who qualifies under either of those criteria does not lose
eligibility through remarriage, we cannot envision any other type of
time limit that might apply.
In contrast, criteria (2) and (3) of the eligible spouse definition
(spouse of a service member who is missing in action, etc., or of a
veteran who has a total disability resulting from a service-connected
disability) clearly imply that the eligibility of the spouse is based
upon the status of a service member or veteran who is still living. In
the case of criterion (2), which is based upon the status of an active
duty service member, the statutory wording makes it clear that the
spouse is eligible only during the time that the service member remains
in that status. Similarly, in the case of criterion (3), which is based
upon the disability status of a living veteran, it is clear that the
statute intends to confer eligibility on the spouse based on a marriage
that is currently in effect. Therefore, if a spouse who is eligible
under criterion (3) becomes divorced from the disabled veteran, the
spouse would lose the eligibility to priority at that point. Similarly,
if a spouse is eligible on the basis of a total disability, as defined
by criterion (3), and the veteran were to lose the total service-
connected disability rating, the spouse would lose the eligibility to
priority at that point.
Discussion of Comments on Subpart B--Understanding Priority of Service
This subpart addresses what priority of service is (Sec.
1010.200), the programs affected by priority of service (Sec.
1010.210), the implementation of priority of service by recipients
(Sec. 1010.220), the responsibilities of States and their subdivisions
(Sec. 1010.230), the monitoring of priority of service (Sec.
1010.240), and the possibility of waiving priority of service (Sec.
1010.250). We received no comments on Sec. 1010.230 or Sec. 1010.250;
but we did receive comments on the other four sections of this subpart.
Those comments and our responses follow.
Identifying Qualified Job Training Programs (Sec. 1010.210)
Comment: Two of the comments raised questions regarding the
application of priority of service to non-DOL program partners in One-
Stop Career Centers. One commenter requested a clarification of how
priority of service applies to any non-DOL program partner and a second
commenter suggested the inclusion of Vocational Rehabilitation programs
among the programs required to provide priority of service.
Response: The Department will not modify this section in response
to these comments because the priority only applies to qualified job
training programs funded in whole or in part by the Department of
Labor, as defined in sec. 4215(a)(2). The Department does not have the
authority to impose priority of service on programs funded by non-DOL
sources. However, the Department, through policy guidance and technical
assistance, will encourage all partners in One-Stop Career Centers to
focus on providing services to veterans as a standard operating
procedure within their respective service delivery strategies.
Comment: One comment questioned why Unemployment Insurance (UI) was
not included in the regulations as a program impacted by priority of
service, apparently referring to the fact that UI recipients who are
considered likely to exhaust their eligibility for UI benefits are
referred to employment services through a process known as worker
profiling.
Response: The Department did not include UI because it is an income
benefit program and not a qualified job training program, as defined in
sec. 4215(a)(2) of the JVA. With respect to worker profiling, the
Department issued guidance following the passage of the JVA (Training
and Employment Guidance Letter No. 5-03, as well as program-specific
guidance and technical assistance) explaining that priority of service
requires that veterans, whose likelihood of benefit exhaustion
qualifies them for referral to employment services, must be referred to
employment services prior to or in conjunction with the referral of
non-veterans. That policy remains in effect and is not affected by
these regulations.
Implementing Priority of Service (Sec. 1010.220)
Funding Constraints
Comment: Two comments expressed concerns about providing priority
of service in a limited funding environment, particularly if large
numbers of additional veterans choose to access the services of the
One-Stop Career system. One commenter asserted that more resources for
all DOL core workforce programs will be required to ensure that
veterans and other workers receive the help they need. A second
commenter expressed particular concern about the current resource
capacity for their Management Information System.
Response: The Department acknowledges that the publicly-funded
workforce investment system is operating under a tight Federal budget,
which means that Federal resources must be used strategically to meet a
variety of competing local, regional, and State priorities. Given that
priority of service has been in effect since 2003 and transitioning
veterans have been provided information on accessing One-Stop Career
Centers through the Transition Assistance Program for many years, DOL
does not anticipate a significant increase in veteran customers. With
regard to new reporting requirements associated with this rule and the
companion Information Collection Request (ICR) package (ICR Reference
Number 200805-1205-001), DOL acknowledges that the new data to be
collected will require some changes. However, DOL has attempted to
[[Page 78136]]
minimize the changes required by utilizing, to the maximum extent
possible, existing data collection processes to collect the new data.
Service Delivery Processes
Comment: A number of comments addressed the provision of priority
of service at the point of entry to the workforce system. Three
commenters indicated a need to assist front-line staff in applying
regulations and policies at the point of entry and called for a more
detailed explanation of the regulations and their impact on One-Stop
operations. Other commenters requested guidance on how to handle
priority of service affirmation during self-registration, whether at
program operators' sites or from remote locations. One commenter
pointed out that modifications to electronic technologies may be
required to ensure the same point of entry data being collected in
physical locations is also collected for those accessing services
remotely.
Response: DOL intends to provide extensive guidance and technical
assistance on implementing priority of service under this rule. This
may include policy guidance, webinars, question and answer documents,
and highlights of best practices, and will address issues such as self-
registration.
Comment: Several comments identified service delivery procedures
that may be impacted by the regulations. One commenter stated that
implementing priority of service for covered persons would be
unmanageable for certain services that are usually provided through
personal appointments with service provider staff and also may create
bad feelings or ill-will among non-covered customers. A second
commenter asked for guidance regarding the processes that State
agencies could use if they have to ``bump'' a non-veteran in order to
give priority to a covered person. Another commenter objected to
implementing priority of service as a ``cut in line'' policy.
Response: It is important to note that priority of service under
the JVA has been in effect since 2003 and recipients should already
have policies and procedures in place to ensure priority of service to
veterans. As part of implementation of this rule, recipients will need
to reexamine their policies and procedures and change them if necessary
to ensure priority of service is provided to covered persons. For
example, program operators might consider adjusting policies to leave
appointment slots open for covered persons, or designating staff to see
covered persons on a walk-in basis on certain days. Regarding the
creation of bad feelings or ill-will toward covered persons, customers
of DOL-funded services need to be made aware which populations receive
priority. Clearly posting this information is likely to decrease ill-
will. DOL will provide extensive guidance and technical assistance in
how to implement priority of service under this rule.
Interference With the Intent of Priority of Service
Comment: One comment asked what is to prevent Workforce Investment
Boards from developing a plan that minimizes the participation of
covered persons by placing the majority of program funds into training
that might be of minimal interest to veterans, such as basic computer
training and nurse's aide training.
Response: DOL believes this scenario is extremely unlikely to
occur. First, whichever occupations are targeted by local workforce
areas, covered persons would still receive priority of service. Second,
local workforce areas are governed by Workforce Investment Boards
(WIBs) and the majority of WIB members are representatives of business.
Based on local labor market conditions, WIBs determine the industries
and occupations that will be a focus for training programs. Third,
since local workforce areas must meet performance targets under the
Workforce Investment Act for entered employment, employment retention
and average earnings, it is unlikely that they would choose occupations
not in demand, as this could result in not meeting their performance
goals. Finally, if selected recipients do interfere with the intent of
priority of service by emphasizing occupational areas unattractive to
veterans, it is likely that the unusually low rates of participation by
veterans in those programs or services will be documented through
reporting and remedied through monitoring and any follow-up activities
determined to be warranted.
Monitoring Priority of Service (Sec. 1010.240)
Comment: One comment noted that, although the preamble of the NPRM
refers to the measure mentioned in the JVA about covered persons being
represented in affected programs in proportion to their incidence in
the labor market, the proposed rule does not include specific
performance standards related to that comparison. This commenter
suggested that serving covered persons in proportion to their incidence
in the labor market should be specified as a minimum achievement level
for priority of service.
Response: The Department has concluded that it would be premature
at this point to attempt to establish performance targets for priority
of service in these regulations. With respect to the labor market
criterion that is specified in the JVA and noted in the comment, we
interpret that criterion to be primarily applicable to the overall
performance of the Department in implementing priority of service at
the national level. While this criterion also could be applied to the
specific performance of the recipients of DOL funds, its application at
lower levels is limited by the fact that the estimates of the incidence
of veterans in sub-national labor markets are less statistically
precise. This issue is discussed further in our response to a comment
received about Sec. 1010.320.
In light of these considerations, the Department has determined
that enhanced data collection and reporting, coupled with joint
monitoring, offer the most appropriate avenues currently available to
ensure compliance with priority of service. Specifically, for those
programs serving over 1,000 covered persons annually, data collection
systems will be modified to accommodate new priority of service data
elements and analysis of that information will be a key component of
monitoring.
Comment: One comment suggested that the VETS State Directors
monitor the implementation of priority of service in partnership with
the State agency officials who coordinate or supervise the operations
of the Jobs for Veterans State Grants program.
Response: While the Department is generally supportive of the type
of cooperative Federal-State relations between grantor and grantees
that is conceptualized in this comment, we do not believe that it is
appropriate to include a requirement of this type in regulations. These
regulations have established, in Sec. 1010.240(b), that federal
monitoring will be conducted jointly by a representative of the
administering federal agency and a representative of VETS. We believe
that the combined perspectives of these designated officials are fully
adequate for federal monitoring purposes. Since states also will have
their own monitoring responsibilities, we would have no objection if
states exercised their option to apply the suggested approach for state
monitoring purposes.
Comment: One comment noted that the preamble language in the NPRM
stated that submission of a corrective
[[Page 78137]]
action plan ``will'' be required if a recipient is found not to be in
compliance with the priority of service requirement, but the regulatory
text itself states that a corrective action plan ``may'' be required.
The commenter suggested that we change the regulatory text to require a
corrective action plan.
Response: The Department will not change the regulation. The
regulatory language is correct and it provides DOL with the authority
to require a corrective action plan, when appropriate. There may be
circumstances where minimal technical assistance will result in
correction of a priority of service issue. Where any substantial
changes to a program operator's policies or business practices are
required, a formal corrective action plan will be required.
Comment: One comment included a number of questions related to the
Department's monitoring of the implementation of and compliance with
the priority of service rule. The questions include whether the joint
responsibility for oversight by ETA and VETS extends to the review of
the State and local plans and any impact on State grant funds if a
State ignores the requirements of the rule.
Response: The Department believes that these concerns are
adequately addressed by existing provisions of these regulations.
Therefore, we do not intend to modify the rule in response to these
comments. With respect to State and local planning, Sec. 1010.230(a)
requires the inclusion of priorities and procedures addressing priority
of service in State plans, while Sec. 1010.230(b) requires States to
impose similar requirements for local plans. In addition, review of
these plans by DOL staff as a monitoring activity is authorized by
Sec. 1010.240(a). With respect to the potential impact of non-
compliance with priority of service on State grant funds, a grantee's
non-compliance will be handled in accordance with the respective
program's established compliance review processes, as required by Sec.
1010.240(c).
Discussion of Comments on Subpart C--Applying Priority of Service
This subpart addresses identifying covered persons (Sec.
1010.300), applying priority of service to programs with differing
eligibility requirements (Sec. 1010.310), reporting on priority of
service (Sec. 320), and collecting and maintaining data on priority of
service (Sec. 1010.330). We received comments on all four sections of
this subpart. Those comments and our responses follow.
Identifying Covered Persons (Sec. 1010.300)
We received a number of comments about the inter-related subjects
of Identifying Covered Persons (Sec. 1010.300) and Collecting and
Maintaining Data (Sec. 1010.330). For ease of organization, the
responses to comments are treated under those two topic areas. However,
these two sections should be read in conjunction with one another. In
Sec. 1010.300, we primarily discuss when and how a covered person is
identified. In Sec. 1010.330, we provide detailed information on
collection processes that occur simultaneously with that
identification.
Comment: One comment stated that, due to a variety of factors,
affected programs will not be able to enroll covered persons in numbers
sufficient to attain the proportion of such persons in the labor
market, unless all program operators subject to the priority of service
regulations are mandated to conduct outreach efforts to recruit covered
persons.
Response: The commenter did not provide, and the Department does
not have from other sources, evidence to support the contention that
affected program operators will not attract covered persons as
applicants for services in the numbers equal to or in excess of their
incidence in the local labor markets. In addition, the JVA does not
include provisions about outreach. Therefore, other than requiring (in
Sec. Sec. 1010.230 and 1010.300) that program operators identify
covered persons and inform them about the priority, the Department will
not compel program operators through regulations to commence or enhance
outreach efforts, as suggested by the commenter. However, the
Department encourages all program operators to assess the adequacy of
their sources of candidates for services and, if that assessment
indicates that implementing outreach to covered persons would be
beneficial, the Department encourages them to do so.
Comment: One comment suggested that State agencies should be
authorized to verify covered persons' status through means other than
obtaining an official copy of a DD-214 document. The commenter
suggested several other available sources.
Response: As indicated in our prior response to a comment on Sec.
1010.110, the Department does not oppose allowing DOL-supported program
agencies to use alternative sources, such as databases maintained by
State veterans affairs divisions or commissions, to verify an
individual's claim of veteran's status, as long as those other sources
can certify the veracity of their records and have effective procedures
for matching the covered person with those records. However, addressing
the specifics of such verification sources is more appropriate for
policy guidance than for regulations; we intend to address that topic
in detail in future guidance.
Comment: One comment claimed that, in order to prove his or her
right to ``priority of service'' at the initial point of entry into the
State Workforce Agency's network of program services, a covered person
would have to provide personal information not required of non-covered
persons. The commenter stated that such requirements could cause some
customer satisfaction issues.
Response: It is the Department's intent that individuals identified
as covered persons will not be required to verify their status as
veterans or eligible persons at the point of entry unless they
immediately undergo eligibility determination and formal enrollment in
a program. To clarify that the requirement to identify covered persons
at the point of entry does not imply that verification of covered
person status is required at that point, a new paragraph (b) has been
added to Sec. 1010.300 of the final rule. Even in those instances in
which eligibility determination and enrollment take place at the point
of entry, the Department believes that the covered person should be
enrolled and given immediate priority and then be permitted to follow-
up subsequently with any required verification of his/her status as a
covered person.
In the more common instances in which eligibility determination and
enrollment do not take place at the point of entry, the only procedures
applicable to covered persons at that point (i.e., assignment of a
unique identifier and deciding whether or not to respond voluntarily to
the questions required to be asked for EEO purposes) are minimally
burdensome. In addition, those procedures are equally applicable to
non-covered persons at the point of participation.
Comment: Two comments inquired how covered persons will be
identified in a self-registration system.
Response: Recipients will be required to have processes by which
individuals who reach the point of entry to universal access programs
through electronic technologies will be provided the opportunity to
indicate their covered person status. However, DOL will not require
documents that verify their status (e.g., DD-214 discharge form) at
this stage. However, proof of status will be required during formal
[[Page 78138]]
determination for program eligibility. The DD-214 discharge form is
considered the ``gold standard'' document for verification purposes.
However, DOL will be developing a list of acceptable alternatives that
correspond to WIA definition of covered person. This will be especially
important for any new documentation needed for covered spouses. Covered
spouses whose eligibility is based on the disability of the veteran
should receive the relevant documentation from the Department of
Veterans Affairs. Covered spouses whose eligibility is based on one of
the three specific statuses of an active duty service member should
receive the relevant documentation from the Department of Defense.
Applying Priority of Service (Sec. 1010.310)
Comment: Several comments suggested or implied that a tiered system
of sub-priorities should be established within the overall priority.
For example, one comment included a detailed treatment of the nature of
military discharges, e.g., honorable, other than honorable,
dishonorable, bad conduct, etc., and proposed, within the universe of
covered persons, institution of a tiered priority system that would
reward those who are honorably discharged above all others. Another
comment included a recommendation that priority of service be given
first to veterans who actually served in combat zones and who were
assigned to military occupational specialties directly oriented toward
combat, such as infantry. A third comment expressed support for
priority for service-connected disabled veterans, but pointed out that
for many years, women in the military were kept out of combat zones, so
giving priority to combat zone veterans would discriminate against
veterans who were not allowed to earn that benefit and, in effect,
perpetuate discrimination against women. This commenter expressed her
belief that priority should be given on the basis of need, rather than
disability.
Response: Section 4215(b)(2) of the JVA states that ``The Secretary
of Labor may establish priorities among covered persons * * *''
However, we do not intend to revise the rule at this time to specify
sub-priorities within the overall priority. The principal factor
underlying that decision is the Department's determination that
specifying further sub-priorities within the overall priority at this
time is very likely to be unduly burdensome, both to the system
responsible for serving covered persons and to those covered persons
intended to benefit from a sub-priority. Although the requirement to
provide priority is not new, six major workforce programs will be
required to implement new data collection procedures for covered
persons at the point of entry under new reporting requirements that
accompany these regulations. In addition, these regulations are
expected to take effect at a time that is characterized by an
expectation of increased demand for services over the near term in
response to deteriorating economic conditions. In that context, the
Department believes that implementing tiered sub-priorities at this
time would impose an unreasonable burden by requiring: (a) Workforce
professionals (or electronic systems) to make distinctions at the point
of entry among sub-priorities within the overall priority; and, (b)
covered persons to affirm their eligibility for differing levels of
priority at the point of entry, based on distinctions of considerable
complexity and subtlety. In summary, the Department believes that
imposition of those burdens at this time would be very likely to
generate results that are directly contrary to the intent of the
statute and these regulations.
The Department also recognizes that the intent of these regulations
and the accompanying data collection requirements are likely to be
assimilated by the workforce system over time. Therefore, the
Department acknowledges that, at a future time and under more favorable
conditions, it may be appropriate to undertake a revision of these
regulations to further specify certain sub-priorities within the
overall priority.
Comment: One comment requested information on how income would be
considered in determining eligibility for priority of service.
Response: Income is not a relevant factor for a priority
determination. For purposes of eligibility for the underlying programs,
all income eligibility determinations should be based on the
requirements of the program in which services are being sought. For
example, in the Workforce Investment Act programs, the regulation at 20
CFR 667.255 states that, ``any amounts received as military pay or
allowances by any person who served on active duty, and certain other
specified benefits must be disregarded. This applies when determining
if a person is a `low-income individual' for eligibility purposes.''
Reporting on Priority of Service (Sec. 1010.320)
Comment: A comment stated that in order to measure whether or not
covered persons are being represented in affected programs in
proportion to their incidence in the labor market, the Department needs
to clarify exactly what is meant by ``the labor market.''
Response: This comment refers to section 4215(d) of the JVA, which
requires the Secretary to report to Congress annually on priority of
service. The referenced section of the statute includes language
requiring the Secretary to evaluate, ``whether the representation of
veterans in such programs is in proportion to the incidence of
representation of veterans in the labor market * * *'' The requirements
included in Sec. Sec. 1010.320, 1010.330 and the accompanying ICR are
expected to enhance the Secretary's capacity to fulfill that
Congressional reporting responsibility. Since enactment of the JVA, the
Department has fulfilled this requirement by comparing the rate of
veteran participation in workforce programs nationally with the
incidence of veteran representation in the labor market at the national
level. The rate or incidence of veterans in the labor market has been
determined each year based upon data provided by the Bureau of Labor
Statistics and derived from the Current Population Survey.
When the comparison described above is made at the national level,
it represents a measure of the performance of the Department rather
than a measure of the performance of the recipients of DOL funding. If
a similar comparison were to be made below the national level (e.g.,
for a State workforce system), the Department would first need to
identify the source of valid and reliable data on the rate of incidence
of veterans within the labor market, at the level at which the
comparison is to be made.
Collecting and Maintaining Data (Sec. 1010.330)
Subsections (a) and (b) of Sec. 1010.330 and the ICR associated
with this regulation establish new reporting requirements for those
programs that serve over 1,000 covered persons per year nationally,
including: WIA Adult, WIA Dislocated Worker, Wagner-Peyser Employment
Service/Jobs for Veterans State Grants, National Emergency Grants
(NEGs), Trade Adjustment Assistance (TAA), and the Senior Community
Service Employment Program (SCSEP). All other qualified job training
programs are exempt from this information collection but will be
required to adopt the covered, non-covered, veteran and eligible spouse
definitions as outlined in the JVA the next time their reporting
requirements are renewed.
The new reporting requirements for those job training programs that
serve
[[Page 78139]]
over 1,000 persons annually are described more fully in the associated
ICR (ICR Reference Number 200805-1205-001) but primarily involve: (1)
Identifying covered persons at the point of entry, which is the
earliest point that a covered person contacts the system in either a
physical location (e.g., One-Stop Career Center or affiliate site) or
remotely through electronic technologies); and (2) the collection of
individual entrant records for all covered persons. Note: These new
reporting requirements exempt the collection of information for non-
covered persons.
In order to fully appreciate the context, it is helpful to review
the discussion that follows in conjunction with the responses treated
previously under the subheading Identifying Covered Persons (Sec.
1010.300), since the new collection is based largely on identifying
covered persons at the point of entry. The specific comments on (Sec.
1010.300) and our responses follow.
Comment: Four comments raised questions around self-registration of
covered persons. Of these, one commenter specifically asked about what
type of client inquiry would trigger the collection of data.
Response: Paragraphs (a) and (b) of Sec. 1010.330 require that
programs that serve over 1,000 covered persons nationally per year must
identify and capture data on covered persons at the initial point of
entry. This is the earliest point that a covered person first makes
contact with the workforce investment system and is triggered by entry
at either a physical location (e.g., One-Stop Career Center or
affiliate site) or remotely through electronic technologies. DOL
acknowledges that program operators will need to adjust manual and
electronic intake processes to accommodate the new reporting
requirements.
Comment: Three comments addressed the covered person entry date. Of
those, two commenters expressed the need for clarification in the
definition and one commenter asked whether this information should be
tracked retroactively for persons who entered the system years ago.
Response: Although these comments were submitted in response to the
NPRM, they treat topics that are not specifically addressed in Sec.
1010.330 of the rule, but are addressed in the ICR associated with
these regulations. Therefore, the Department will address these issues
through the ICR clearance process and through the issuance of guidance
on the implementation of the new data collection procedures, if
necessary.
Comment: Several comments raised concerns about the difficulty in
making programming changes to the current MIS systems to capture the
individual entrant record data elements. One commenter also expressed
concerns over the logistics, including the short timeframe to implement
the new reporting requirements, stating it will place an undue hardship
on the State.
Response: DOL acknowledges that information technology adjustments
will need to be made to accommodate the new data fields and is aware
that such adjustment can be a challenge, given resource constraints.
Consequently, the Department has kept the data elements to a minimum in
order to reduce the number of required modifications and to keep costs
in check. DOL is examining the feasibility of coordinating the
application of the new priority of service reporting requirements with
the implementation of the new Workforce Investment Standardized
Performance Reporting (WISPR) system. The Department will be issuing
additional guidance on the implementation timeframes for these two new
and related sets of reporting requirements.
Comment: We received ten comments that focused on the perceived
burdens that would be placed on the States by the new data collection
requirements. Eight commenters specifically alluded to cost burdens.
One commenter noted that the introduction of new client classifications
will require changes to the current ETA 9002 and VETS 200 performance
reports. Another commenter recommended that the implementation of
priority of service reporting occur simultaneously with implementation
of the WISPR requirement to avoid the cost of making multiple changes
to reporting systems. Another commenter recommended that changes be
compatible with the existing Workforce Investment Act Standardized
Record Data (WIASRD).
Response: As indicated above, DOL agrees that it would be
advantageous if WISPR and the proposed priority of service reporting
requirements were to take effect on the same date, and DOL is
considering the feasibility of implementing the priority of service
requirements in conjunction with the implementation of WISPR. If the
implementation of the new priority of service reporting is coordinated
with the implementation of WISPR, challenges with the ETA 9002 and VETS
200 reports will be eliminated. That is because those two sets of
reports will be replaced by other reports under WISPR. Similarly,
changes to existing reporting systems will be avoided if the new
priority of service reporting is implemented in conjunction with WISPR,
because the priority of service requirements will be included in WISPR
from the outset (i.e. there would be no ``retrofitting'' of existing
reporting systems to accommodate the priority of service reporting).
In the absence of coordinated implementation of priority of service
reporting and WISPR, reporting entities will be required to amend
existing reporting systems. Guidance will be forthcoming on the
implementation processes and timeframes applicable to these two related
reporting requirements, along with significant technical assistance in
support of their implementation.
Comment: Two comments raised questions about the adequacy of this
data collection. One of the commenters recommended that the data
collection be expanded to include non-covered persons so a comparison
could be made with the covered person information. Another commenter
suggested that there is no mechanism for determining whether, on the
whole, covered persons received priority in obtaining employment
enhancing services or, conversely, the frequency with which non-
veterans did.
Response: DOL considered including non-covered persons and realizes
the advantages in helping to draw comparisons between the two
populations, but determined that the benefits did not outweigh the
potential costs and burden. The workforce system currently serves about
15 million individuals and about ten percent of those served are
covered persons. Tracking the estimated 1.5 million covered entrants
gives a narrower lens for analysis but provides the additional data
point to illustrate the numbers of veterans accessing the workforce
system. This data point, combined with normal participant data, will
help the Department to better determine which of our covered person
customers go on to receive services (or conversely, do not receive
services). In addition, DOL intends to supplement this data by
sponsoring random surveys of covered and non-covered persons accessing
the workforce system to assist in comparing the delivery of services to
the two groups. DOL agrees that the covered entrant data alone will not
tell the complete story of priority of service but it will add crucial
information that has been missing from the discussion. Based on this
information, the Department will be able to determine the number of
veterans who enter the system compared to the number who receive
services. This indicator will help us to
[[Page 78140]]
determine if the system is, in fact, serving those who come to our
system and are entitled to priority. To complete the assessment, DOL
will apply information gathered through the priority of service
evaluation, random surveys of covered and non-covered persons, and
additional monitoring to help ensure that covered persons are receiving
priority for publicly-funded workforce services.
III. Administrative Information
Regulatory Flexibility Analysis, Executive Order 13272, and Small
Business Regulatory Enforcement Fairness Act
The Regulatory Flexibility Act (RFA), 5 U.S.C. Chapter 6, requires
the Department to evaluate the economic impact of this final rule with
regard to small entities. The RFA defines small entities to include
small businesses, small organizations including not-for-profit
organizations, and small governmental jurisdictions. The Department
must determine whether the rule imposes a significant economic impact
on a substantial number of such small entities.
The Department has determined that there is no significant economic
impact resulting from this final rule. The JVA mandates that veterans
receive priority of service in all qualified job training programs. The
purpose of this rule is to implement the JVA's priority of service
requirement. It defines the program and reporting requirements for
ongoing programs funded by the Department (and any new programs created
in the future) and administered by funding recipients. The priority of
service provisions in the JVA do not create any new job training
programs; rather, the programs affected by the priority of service are
ongoing. The final rule requires that these programs give priority to
veterans for the services provided by the programs. The rule requires
funding recipients to do certain things, such as implement processes to
identify covered persons at the point of entry and report on priority
of service. However, the Department funds these programs and the funds
are meant to include such activities as administration and reporting.
Although certain funding recipients that operate qualified job training
programs may be small entities, the Department certifies that this
final rule does not have a significant economic impact on a substantial
number of small entities under the provisions of the RFA and also under
the provisions of Executive Order 13272.
Finally, the Department has also determined that this final rule is
not a ``major rule'' for purposes of The Small Business Regulatory
Enforcement Fairness Act (SBREFA), 5 U.S.C. Chapter 8, which requires
agencies to take certain actions when a ``major rule'' is promulgated.
SBREFA defines a ``major rule'' as one that has or is likely to result
in an annual effect on the economy of $100,000,000 or more; a major
increase in costs or prices for, among other things, State or local
government agencies; or in significant and adverse effects on the U.S.
business climate. For the reasons already discussed, this final rule
will not have any significant financial impact. Accordingly, none of
the definitions of ``major rule'' apply in this instance.
Executive Order 12866
Executive Order 12866 requires that for each ``significant
regulatory action'' proposed by the Department, the Department conduct
an assessment of the proposed regulatory action and provide the Office
of Management and Budget (OMB) with the proposed regulation and the
requisite assessment prior to publishing the regulation. A significant
regulatory action is defined to include an action that will have an
annual effect on the economy of $100 million or more, as well as an
action that raises a novel legal or policy issue.
The priority of service implemented by this final rule will not
have an annual effect on the economy of $100 million or more, for the
reasons outlined above. While much of the rule is consistent with
current DOL policy, certain portions may raise novel policy issues.
Accordingly, OMB has reviewed this final rule.
Paperwork Reduction Act
The final rule for 20 CFR part 1010 titled Priority of Service for
Covered Persons contains information collection (paperwork)
requirements that are subject to review by the Office of Management and
Budget (OMB) under the Paperwork Reduction Act of 1995 (PRA-95), 44
U.S.C. 3501 et seq., and OMB's regulations at 5 CFR part 1320. PRA-95
defines ``collection of information'' as ``the obtaining, causing to be
obtained, soliciting, or re