Sec. 602.20 602.21

Amounts and purposes of grants.
Notice and opportunity for hearing to
State agency prior to withdrawal
of Federal funds.

AUTHORITY: §§ 602.1 to 602.21 issued under sec. 12, 48 Stat. 117; 29 U. S. C. 49k. Interpret or apply, 48 Stat. 113, as amended, 58 Stat. 293, Pub. Law 646, 80th Cong.; 29 U. S. C. 49-491, 38 U. S. C. 695-695f.

SOURCE: §§ 602.1 to 602.21 appear at 13 F. R. 8377.

§ 602.1 Definitions. In this part, the following words shall, unless the context requires otherwise, have the following meanings:

(a) "Wagner-Peyser Act" means the act of June 6, 1933, as amended (48 Stat. 113), and all rules, regulations, and standards promulgated thereunder.

(b) "State" includes the several States, the District of Columbia and the Territories of Alaska and Hawaii.

(c) "State agency" means the agency designated under section 4 of the Wagner-Peyser Act as the agency to cooperate with the United States Employment Service.

(d) "State Director" means the individual responsible, subject to the over-all direction and supervision of the chief official of the State agency or department in which the State service is located, for the proper and efficient administration of the State-wide system of public employment offices.

(e) "The United States Employment Service" means the Bureau in the Federal Security Agency established pursuant to the Wagner-Peyser Act.

(f) "Director of the United States Employment Service" means the chief official of the United States Employment Service, responsible, subject to the supervision of the Federal Security Administrator for the administration of the Bureau in the Federal Security Agency known as the United States Employment Service.

(g) "State Veterans' Employment Representative" means the individual assigned by the United States Employment Service to each State public employment service system, who is administratively responsible to the Chief of the Veterans' Employment Service of the United States Employment Service, for the execution, through the public employment service in the State, of the policies of the Veterans Placement Service Board.

§ 602.2 Placement services-(a) Functions. Each State agency shall maintain, through its State and local employment offices, a placement service for the free use of employers, workers, and veterans and for the purpose of assisting employers to secure the number of workers possessing the occupational qualifications such employers require, and of assisting all workers to find promptly, jobs for which they are occupationally qualified and which are most advantageous to them. The State service shall promote the full use of its placement facilities, for the purpose of assuring the maximum of job opportunities for veterans and other workers and the maximum recruitment and placement assistance for employers.

(b) Referrals in labor dispute situations. No person shall be referred to a position the filling of which will aid directly or indirectly in filling a job which (1) is vacant because the former occupant is on strike or is being locked out in the course of a labor dispute, or (2) the filling of which is an issue in a labor dispute. With respect to positions not covered by subparagraph (1) or (2) of this paragraph any individual may be referred to a place of employment in which a labor dispute exists, provided he is given written notice of such dispute prior to or at the time of his referral.

lation to job requirements and employment opportunities. Local employment offices shall provide such special services and utilize such selective placement techniques as may be necessary to assist handicapped veterans and other applicants to secure employment in occupations which are suited to their physical capacities, interest, and abilities. Local offices shall establish and maintain cooperative relationships with other community and State agencies and organizations for the coordination and mutual improvement of vocational adjustment services. In those States where State boards, departments, or agencies exist which are charged with the administration of State laws for the vocational rehabilitation of handicapped persons, the State agency shall make provision for cooperation with such boards, departments, or agencies.

§ 602.4 Occupational analysis and industrial services. Each State agency shall maintain, through its State administrative office and local employment offices, an adequate occupational analysis and industrial service to render assistance in connection with problems which involve the recruitment, selection, assignment, transfer and promotion of workers, with a view of promoting stability of employment and the most effective use of workers' skills and abilities. In connection therewith, each State agency shall cooperate with the United States Employment Service in the development and use of the occupational analysis and related materials of the United States Employment Service.

§ 602.5 Special service for veterans. Each State agency shall maintain, through its State administrative office and local employment offices, effective placement and counseling services for veterans, to carry out the provisions of the Wagner-Peyser Act and of Title IV of the Servicemen's Readjustment Act of 1944. In connection therewith, each State agency shall carry out the policies as determined by the Veterans Placement Service Board and promulgated through the United States Employment Service. The State veterans employment representative shall be consulted on all matters affecting veterans' employment activities and shall be invited to attend staff meetings of the senior employment service staff. Each State agency shall make available adequate and appropriate space and facilities for the representa

tives of the Veterans Employment Service located within the State, and shall assure that State and local employment offices cooperate with field personnel of the Veterans Employment Service. The State Director shall, after consultation with the State veterans employment representative, designate one or more employees (preferably veterans) in each local employment office as veterans' employment representatives who shall, under the administrative direction of the local office manager, carry out the services and functions prescribed in section 602 of the Servicemen's Readjustment Act of 1944.

§ 602.6 Labor market information service. Each State agency shall maintain, through its State administrative office and local employment offices, an effective labor market information service, through which it shall provide for the collection, analysis and public issuance of information on current labor market developments, employment trends and opportunities for employment.

§ 602.7 Participation in community programs. Each State agency, through its State administrative office and local employment offices, shall cooperate with other agencies and organizations concerned with employment problems and shall participate in developing programs for increasing employment opportunities and stabilizing employment.

§ 602.8 Agricultural and related industry placement services. Beginning January 1, 1948, each State agency, in carrying out the provisions of the Wagner-Peyser Act, shall maintain, through its State administrative office and local employment offices, effective placement services for agricultural and related industry employers and workers, and such services shall include appropriate programs for the intrastate recruitment and transfer of workers and for cooperation with the United States Employment Service in the interstate recruitment and movement of workers.

§ 602.9 Services and facilities. Each State agency shall provide in an efficient and effective manner, the public employment services described in §§ 602.2 to 602.8 through adequate local employment office facilities. Each State agency shall maintain local employment office facilities of such number, size, and location as may be necessary in view of the popula

(b) State Director. Each State-wide system of public employment offices shall be under the supervision and direction of a State Director who shall devote his full time to employment service activities and other designated activities which are closely related to, and will not impede the proper and efficient administration of, employment service activities.

(c) Local managers. Each local public employment office shall, with respect to all its employment service activities, be under the direction and supervision of a local office manager, who shall be responsible to the State Director for the proper and efficient administration of the employment service activities performed in such local office, and may be responsible for other designated activities in the local office which are closely related to and will not impede the proper and efficient administration of, the employment service activities of a local employment office.

(d) Unemployment compensation claims activities. For the purposes of this section, the taking of unemployment compensation claims (but not the making of decisions on or the payment of such claims) shall be deemed activities which are closely related to and do not impede the proper and efficient administration of employment service activities.

offices may be accepted to assist in the performance of local office employment service activities.

(f) Other forms of administrative organization or divisions of administrative responsibility. Notwithstanding the other provisions of this part relating to forms of administrative organization and divisions of administrative responsibility, the Director of the United States Employment Service may approve other forms of administrative organization and divisions of administrative responsibility which he finds are reasonably calculated to carry out the purposes of the WagnerPeyser Act and maintain the identity of the State-wide system of public employment offices as a part of the Nation-wide system of public employment offices.

§ 602.11 Arrangements between United States Employment Service and related Federal agencies. The Director of the United States Employment Service is authorized to enter into appropriate arrangements with other Federal agencies for the coordination of activities and the exchange of services which relate to the purposes and program of the FederalState cooperative national system of public employment offices provided for in this chapter. Each State agency shall comply with and carry out such arrangements.

§ 602.12 Employment Service Manual. The Director of the United States Employment Service shall establish and maintain an Employment Service Manual as a comprehensive guide on all matters pertinent to the Federal-State cooperative program for the maintenance of a national system of public employment offices.

§ 602.13 Personnel administration. Each State shall maintain, with respect to personnel employed in the State system of public employment offices, a merit system of personnel administration which complies with the "Standards for Merit System of Personnel Administration in State Employment Service Administration" as prescribed by the Federal Security Administrator.

§ 602.14 Fiscal affairs. Each State shall comply with the requirements of "Instructions to State Agencies Relative to Fiscal Affairs in Connection with Grants Made for Expenses of Employment Service Administration," as prescribed by the Federal Security Administrator.

§ 602.15 Advisory councils. Each State agency shall maintain a State advisory council constituted in the manner and for the purpose described in section 11 (a) of the Wagner-Peyser Act, and shall maintain local advisory councils, in such communities and constituted in such manner as the State agency deems necessary to promote and assist in the carrying out of the services and activities described in those regulations.

§ 602.16 Confidential character of records. Each State agency shall assure that all information contained in the records of the State employment service and secured from workers, employers or other persons or groups as an incident to the State public employment service program, is used solely for the purpose of administering the State system of public employment offices as part of a national system of public employment offices, except that such information may be disclosed for other purposes in accordance with policies promulgated by the Director of the United States Employment Service to assure that such disclosures will not impede the operation of or be inconsistent with the purposes of the public employment service program.

§ 602.17 Reports and studies. Each State agency shall file with the United States Employment Service and keep current, such information and reports on local labor market conditions and the State agency's operations, activities, workload and expenditures as the Director of the United States Employment Service may from time to time require to carry out the provisions of the Wagner-Peyser Act, and in connection therewith, shall maintain the procedures and programs and carry out the instructions set forth in Part III of the Employment Service Manual and such other instructions as the Director of the United States Employment Service may from time to time approve. Each State agency shall cooperate in the making of such studies, surveys and investigations by the Director of the United States Employment Service or his representatives, and in the carrying out of such studies, procedures and programs, as the Director of the United States Employment Service from time to time finds necessary to carry out the Wagner-Peyser Act.

§ 602.18 State plans of operation. Each State desiring to receive the benefits of the Wagner-Peyser Act shall submit detailed plans for carrying out the

provisions of the Act in accordance with United States Employment Service "Instructions to State Agencies for Preparation and Submittal of State Plan(s) of Operation Under the Wagner-Peyser Act" prescribed by the Federal Security Administrator. If such plans are found in compliance with this section, they shall be approved and due notice thereof communicated to the State agency.

§ 602.19 Delegation of authority. The Commissioner for Social Security is hereby authorized, except as otherwise provided in this chapter, to issue any standard or instruction or take any other action provided for in this chapter and to further delegate any authority so delegated to him.

§ 602.20 Amounts and purposes of grants. Grants to States under the Act of July 26, 1946 (Public Law No. 549, 79th Congress, 2d Session; 60 Stat. 679), shall be in such amounts and shall be available for expenditure for such purposes as are determined to be necessary for the proper and efficient administration of the State-wide system of public employment offices as part of the national public employment office system, in accordance with the provisions of the Wagner-Peyser Act, and such instructions as may be issued from time to time thereunder.

§ 602.21 Notice and opportunity for hearing to State agency prior to withdrawal of Federal funds. Whenever the Commissioner for Social Security has reason to believe that in the administration of a State-wide system of public employment offices (a) there has occurred a substantial failure to comply with the State's detailed plan of operations as approved under the WagnerPeyser Act, or (b) the cooperating State agency has not expended the moneys paid to it in accordance with the provisions of said Act, the Commissioner shall give the Governor of the State a written notice which shall state specifically wherein the State has failed to comply or failed properly to expend. The Commissioner shall give notice of the time and place of the hearing to the State agency and shall afford the State agency a reasonable opportunity to appear and be heard. The Commissioner shall preside at the hearing and make the necessary determination or finding on the basis of the record of the hearing. A notice of the Commissioner's determination or finding shall be sent to the State employment security agency.

SUBPART A-LETTER OF TRANSMITTAL

§ 603.101 Request for approval. The letter should state that the accompanying statements and attachments are submitted as a plan of operation, pursuant to the provisions of the Wagner-Peyser Act, as amended. The Federal Security Administrator should be requested to approve the plan as submitted and to so notify the State agency.

§ 603.102 List of documents. The letter should list each section of the plan and the documents being submitted thereunder.

§ 603.103 Amendments of the plan. The letter should state that the plan is submitted as a continuing plan, should designate the effective date and certify that the plan will be kept current by the submission for incorporation in the plan of necessary amendatory materials.

§ 603.104 Signature. The letter should bear the signature and title of the State official or officials authorized under the State law to submit the plan of operation.

SUBPART B-LEGAL MATERIAL

§ 603.201 Opinion of the State Attorney General. The legal material must include an opinion of the State Attorney General or other appropriate State official stating that the State statutes authorize the State agency to submit the plan and administer the State employment service, in accordance with the Act of June 6, 1933 (48 Stat. 113) as amended, - Title IV of the Servicemen's Readjustment Act of 1944 as amended and the pertinent provisions of the Labor-Federal Security Appropriation Act, 1947.

(a) Nature of other legal materials. Legal material submitted as a part of the plan should include constitutional and