(6) That a State fails to make its unemployment compensation records available to the Railroad Retirement Board or fails to cooperate with Federal agencies charged with the administration of unemployment compensation laws (sec. 303 (c) of the Social Security Act); or

(7) That a State no longer has a plan of operation for public employment offices complying with the provisions of the Wagner-Peyser Act; or

(8) That a State agency has not properly expended, in accordance with an approved plan of operation, the Federal monies paid it for administration of its public employment service.

Such hear

(b) Informal discussion. ings are generally not called, however, until after every reasonable effort has been made by regional and central office representatives to resolve the question involved by conference and discussion with State officials. Formal notification of the date and place of a hearing does not foreclose further negotiations with State officials.

(c) Notice of noncertification. If, at any time during the taxable year, the Secretary of Labor has reason to believe that a State whose unemployment compensation law he has previously approved may not be certified, he promptly notifies the Governor of the State to that effect (sec. 3304(d) of the Internal Revenue Code of 1954).

(d) Notice of hearing. Notice of hearing is sent by the Secretary of Labor to the State employment security agency. The notice sets forth the purpose of the hearing, the time, date, and place at which the hearing will be held, and the rules of procedure which will be followed. At a hearing the State is given an opportunity to present arguments and all relevant evidence, written or oral. The Secretary makes the necessary determination or findings, on the basis of the record of such hearings. A notice of the Secretary's determination or finding is sent to the State employment security agency.

(e) Civil Rights Act issues. To the extent that any proposed withholding of funds involves circumstances within the scope of Title VI of the Civil Rights Act of 1964 and the regulations promulgated thereunder, the procedure set forth in 29 CFR Part 31 shall be applicable. (26 U.S.C. 3303(b)(3) and 3304(c)) [30 F.R. 6942, May 22, 1965]

Subpart B-Grants, Advances and Audits

§ 601.6

Grants for administration of unemployment insurance and employ. ment service.

Grants of funds for administration of State unemployment insurance and public employment service programs are made to States under section 302(a) of the Social Security Act, the Wagner-Peyser Act, and the Appropriation Acts.

(a) Requests for funds. The forms and instructions used by State agencies in requesting funds are available upon request from the Manpower Administration, Department of Labor, Washington D.C. 20210, and at the regional offices. The forms and instructions call for detailed information for each budgetary period concerning the specific amounts requested for personal services and other current expenses of State agencies, supported by work-load and unit-cost estimates. Supplementary budget requests are processed in the same manner as regular requests. The Administration's representatives in the regional offices furnish assistance to the State agencies in preparing requests for funds.

(b) Processing of requests. State agencies send their requests for funds to the regional representative of the Manpower Administration who reviews the requests and forwards them to the central office of the Administration with his recommendation as to the amounts necessary for proper and efficient administration of the State unemployment compensation law and employment service program.

The Administration appraises the requests and the recommendations of the regional representatives from a nationwide point of view, examining each State's request in the light of the experience of other States to insure equitable treatment among the States in the allocation of funds made available by Congress for the administration of State unemployment compensation laws and public employment service programs.

(c) Action by Administrator. If the Administrator approves the State's budget request, the State agency is notified; and, provided the conditions precedent to grants continue during the budgetary period, certifications for payment, under the approved budget, stating the amounts, are made by the Ad

The Secretary of Labor and the Postmaster General have been directed by the Congress (Title II of the Labor-Federal Security Agency Appropriation Act, 1950) to prescribe a mutually satisfactory procedure whereby official State employment security postal matter will be handled without the prepayment of postage. In lieu of such prepayments, the Administrator periodically certifies to the Secretary of the Treasury for payment to the Post Office Department the amount necessary to cover the cost of State agency mailings. The amount of payment is based on a formula agreed upon by the Secretary of Labor and the Post Office Department. § 601.9

Audits.

As soon as practicable after the close of each budgetary period, or at other times as necessary, the books of account and records pertaining to employment security administration in each State are audited by the State Audit Branch, Division of Business Management, Manpower Administration, to determine whether the expenditures have been made for purposes and in amounts found necessary by the Administrator for proper and efficient administration of the State's unemployment compensation law and public employment service.

(a) If the audit, as reviewed by the regional office, results in no exceptions, the agency is advised by letter of this result. If the regional office concurs in exceptions taken by the examining auditor, the State agency is given an opportunity within 15 days to concur in them or to submit additional facts for purposes of clearing the exceptions. If the agency's reply does not result in clearance of the exceptions, they are presented to the Secretary with the agency's statement of its reasons for non-concur

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, Guam, Puerto Rico, and the Virgin Islands.

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

(d) "State Director" means the individual, regardless of organizational title, who is 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 Statewide system of public employment offices.

(e) "United States Training and Employment Service" means the organizational component of the Manpower Administration in the Department of Labor which is responsible for carrying out the Department's responsibilities in connection with the Wagner-Peyser Act, and other manpower responsibilities. These were heretofore performed by the component designated as the U.S. Employment Service and statutory references to the U.S. Employment Service should accordingly now be considered as referring to the U.S. Training and Employment Service.

(f) "Manpower Administrator" means the chief official of the United States Training and Employment Service; that is, the official who is responsible, subject to the supervision of the Secretary of Labor, for the administration of the Manpower Administration in the Department of Labor, which includes the United States Training and Employment Service.

(g) "State Veterans' Employment Representative" means the individual assigned by the United States Training and 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 Training and Employment Service, for the execution, through the public employment service in the State, of the policies of the Secretary of Labor.

[15 F.R. 5887, Aug. 31, 1950, as amended at 18 F.R. 305, Jan. 15, 1953; 22 F.R. 5993, July 31, 1957; 34 F.R. 19800, Dec. 18, 1969] § 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.

(c) Inter-area and interstate clearance of labor. Each State agency shall cooperate with the United States Training and Employment Service in the interstate recruitment and transfer of workers. Each State agency shall maintain an adequate system for the recruitment and transfer of workers between areas within the State.

(d) Multi-State labor market areas. With respect to any single labor market

Local

Each state agency shall maintain an adequate local office employment counseling service for veterans and other applicants of employable age. Such employment counseling service shall assist the applicant to evaluate his potential abilities in relation to job requirements and employment opportunities. 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.

[15 F.R. 5888, Aug. 31, 1950]

§ 602.4 Occupational analysis.

Each State agency shall maintain, through its State administrative office and local offices, an adequate occupational analysis activity concerned with the collection, organization, processing, adapting, or issuing of information about the duties, responsibilities, and performance requirements of jobs and the relationships that exist among jobs to permit effective matching of workers and jobs and to broaden the employment opportunities for applicants and the sources of workers for employers. In connection with this activity, each State agency shall cooperate with the United States Training and Employment Service in the development and use of

the occupational analysis and related materials of the United States Training and Employment Service.

[18 F.R. 306, Jan. 15, 1953]

§ 602.4a Industrial services.

Each State agency shall maintain, through its State administrative office and local offices, an adequate industrial services activity concerned with assisting employers, labor organizations, and other organizations in analyzing and evaluating the basic causes of in-plant manpower problems in individual establishments, and giving instruction in the application and/or use of those materials, techniques, and related information developed by or recommended by the United States Training and Employment Service which will aid in resolving these problems. In connection with this activity, each State agency shall cooperate with the United States Training and Employment Service in the use of the occupational analysis and related materials of the United States Training and Employment Service.

[18 F.R. 306, Jan. 15, 1953; 18 F.R. 2819, May 15, 1953]

§ 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 Secretary of Labor and promulgated through the United States Training and 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 representatives 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' em

ployment 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.

[15 F.R. 5888, Aug. 31, 1950]

§ 602.5a Special service for the handicapped.

Each State agency shall maintain, through its State administrative office and local employment offices effective services for the promotion and development of employment opportunities for handicapped persons and for job counseling and placement of such persons to carry out the provisions of the Wagner-Peyser Act, as amended. Each State agency shall designate at least one person in the State administrative office and in each local employment office whose duties shall include the effectuation of such purposes.

[20 F.R. 1763, Mar. 24, 1955]

§ 602.6 Labor market information serv. ice.

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. [15 F.R. 5888, Aug. 31, 1955]

§ 602.7 Participation in community

of workers and for cooperation with the United States Training and Employment Service in the interstate recruitment and movement of workers.

(b) In carrying out the provisions of paragraph (a) of this section each State agency will compile, maintain, and furnish the Secretary of Labor as requested, and make available to interested individuals, agencies, and the public, current information on prevailing wages paid, wages being offered on orders in the local office, and wages being offered for employment for which orders are not on file in the local office, and information on labor demand and labor supply. The State agency shall publish such information as is necessary in connection with the recruitment of labor for agriculture. [24 F.R. 9367, Nov. 20, 1959; 24 FR. 9809. Dec. 8, 1959]

§ 602.9 Interstate recruitment of agricultural workers.

No order for recruitment of domestic agricultural workers shall be placed into interstate clearance unless:

(a) The State agency has established, pursuant to recruitment efforts made in accordance with regulations, policies and procedures of the Manpower Administration (United States Training and Employment Service), that domestic agricultural workers are not available locally or within the State.

(b) The State agency has compiled and examined data on the estimated crop acreage, yield and other production factors in accordance with procedures established by the Manpower Administration (United States Training and Employment Service) to assure the validity of need and the minimum number of agricultural workers required.

(c) The State agency has ascertained that wages offered are not less than the wages prevailing in the area of employment among similarly employed domestic agricultural workers recruited within the State and not less than those prevailing in the area of employment among similarly employed domestic agricultural workers recruited outside the State.

(d) The State has ascertained that housing and facilities which comply with the provisions of Part 620 of this chapter are available.

(e) The State agency has ascertained that the employer has offered to provide or pay for transportation for domestic agricultural workers (1) at terms not less favorable to the workers than those pre