29 U.S.C. § 3242 — Prompt allocation of funds

Page 936 TITLE 29—LABOR § 3242 ment generating activities, investment in re- volving loan funds, capitalization of businesses, investment in contract bidding resource centers, economic development activities, or similar ac- tivities, that are not directly related to training for eligible individuals under this subchapter. No funds received to carry out an activity under part B shall be used for foreign travel. (f) Testing and sanctioning for use of controlled substances (1) In general Notwithstanding any other provision of law, a State shall not be prohibited by the Federal Government from— (A) testing participants in programs under part B for the use of controlled substances; and (B) sanctioning such participants who test positive for the use of such controlled sub- stances. (2) Additional requirements (A) Period of sanction In sanctioning participants in a program under part B who test positive for the use of controlled substances— (i) with respect to the first occurrence for which a participant tests positive, a State may exclude the participant from the program for a period not to exceed 6 months; and (ii) with respect to the second occur- rence and each subsequent occurrence for which a participant tests positive, a State may exclude the participant from the pro- gram for a period not to exceed 2 years. (B) Appeal The testing of participants and the imposi- tion of sanctions under this subsection shall be subject to expeditious appeal in accord- ance with due process procedures established by the State. (C) Privacy A State shall establish procedures for test- ing participants for the use of controlled substances that ensure a maximum degree of privacy for the participants. (3) Funding requirement In testing and sanctioning of participants for the use of controlled substances in accord- ance with this subsection, the only Federal funds that a State may use are the amounts made available for the administration of statewide workforce investment activities under section 3174(a)(3)(B) of this title. (g) Subgrant authority A recipient of grant funds under this sub- chapter shall have the authority to enter into subgrants in order to carry out the grant, sub- ject to such conditions as the Secretary may es- tablish. (Pub. L. 113–128, title I, § 181, July 22, 2014, 128 Stat. 1586.) Editorial Notes REFERENCES IN TEXT The Social Security Act, referred to in subsec. (a)(2), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, which is classi- fied generally to chapter 7 (§ 301 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the first day of the first full pro- gram year after July 22, 2014 (July 1, 2015), see section 506 of Pub. L. 113–128, set out as a note under section 3101 of this title. § 3242. Prompt allocation of funds (a) Allotments based on latest available data All allotments to States and grants to out- lying areas under this subchapter shall be based on the latest available data and estimates satis- factory to the Secretary. All data relating to disadvantaged adults and disadvantaged youth shall be based on the most recent satisfactory data from the Bureau of the Census. (b) Publication in Federal Register relating to formula funds Whenever the Secretary allots funds required to be allotted under this subchapter, the Sec- retary shall publish in a timely fashion in the Federal Register the amount proposed to be dis- tributed to each recipient of the funds. (c) Requirement for funds distributed by formula All funds required to be allotted under section 3162 or 3172 of this title shall be allotted within 45 days after the date of enactment of the Act appropriating the funds, except that, if such funds are appropriated in advance as authorized by section 3249(g) of this title, such funds shall be allotted or allocated not later than the March 31 preceding the program year for which such funds are to be available for obligation. (d) Publication in Federal Register relating to discretionary funds Whenever the Secretary utilizes a formula to allot or allocate funds made available for dis- tribution at the Secretary’s discretion under this subchapter, the Secretary shall, not later than 30 days prior to such allotment or alloca- tion, publish for comment in the Federal Reg- ister the formula, the rationale for the formula, and the proposed amounts to be distributed to each State and local area. After consideration of any comments received, the Secretary shall pub- lish final allotments and allocations in the Fed- eral Register. (e) Availability of funds Funds shall be made available under section 3163 of this title, and funds shall be made avail- able under section 3173 of this title, for a local area not later than 30 days after the date the funds are made available to the Governor in- volved, under section 3162 or 3172 of this title (as the case may be), or 7 days after the date the local plan for the area is approved, whichever is later. (Pub. L. 113–128, title I, § 182, July 22, 2014, 128 Stat. 1589.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the first day of the first full pro- gram year after July 22, 2014 (July 1, 2015), see section Page 937 TITLE 29—LABOR § 3244 506 of Pub. L. 113–128, set out as a note under section 3101 of this title. § 3243. Monitoring (a) In general The Secretary is authorized to monitor all re- cipients of financial assistance under this sub- chapter to determine whether the recipients are complying with the provisions of this sub- chapter, including the regulations issued under this subchapter. (b) Investigations The Secretary may investigate any matter the Secretary determines to be necessary to deter- mine the compliance of the recipients with this subchapter, including the regulations issued under this subchapter. The investigations au- thorized by this subsection may include exam- ining records (including making certified copies of the records), questioning employees, and en- tering any premises or onto any site in which any part of a program or activity of such a re- cipient is conducted or in which any of the records of the recipient are kept. (c) Additional requirement For the purpose of any investigation or hear- ing conducted under this subchapter by the Sec- retary, the provisions of section 49 of title 15 (re- lating to the attendance of witnesses and the production of documents) apply to the Sec- retary, in the same manner and to the same ex- tent as the provisions apply to the Federal Trade Commission. (Pub. L. 113–128, title I, § 183, July 22, 2014, 128 Stat. 1590.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the first day of the first full pro- gram year after July 22, 2014 (July 1, 2015), see section 506 of Pub. L. 113–128, set out as a note under section 3101 of this title. § 3244. Fiscal controls; sanctions (a) Establishment of fiscal controls by States (1) In general Each State shall establish such fiscal con- trol and fund accounting procedures as may be necessary to assure the proper disbursal of, and accounting for, Federal funds allocated to local areas under part B. Such procedures shall ensure that all financial transactions carried out under part B are conducted and records maintained in accordance with gen- erally accepted accounting principles applica- ble in each State. (2) Cost principles (A) In general Each State (including the Governor of the State), local area (including the chief elect- ed official for the area), and provider receiv- ing funds under this subchapter shall comply with the applicable uniform cost principles included in appropriate circulars or rules of the Office of Management and Budget for the type of entity receiving the funds. (B) Exception The funds made available to a State for administration of statewide workforce in- vestment activities in accordance with sec- tion 3174(a)(3)(B) of this title shall be allo- cable to the overall administration of work- force investment activities, but need not be specifically allocable to— (i) the administration of adult employ- ment and training activities; (ii) the administration of dislocated worker employment and training activi- ties; or (iii) the administration of youth work- force investment activities. (3) Uniform administrative requirements (A) In general Each State (including the Governor of the State), local area (including the chief elect- ed official for the area), and provider receiv- ing funds under this subchapter shall comply with the appropriate uniform administrative requirements for grants and agreements ap- plicable for the type of entity receiving the funds, as promulgated in circulars or rules of the Office of Management and Budget. (B) Additional requirement Procurement transactions under this sub- chapter between local boards and units of State or local governments shall be con- ducted only on a cost-reimbursable basis. (4) Monitoring Each Governor of a State shall conduct on an annual basis onsite monitoring of each local area within the State to ensure compli- ance with the uniform administrative require- ments referred to in paragraph (3). (5) Action by Governor If the Governor determines that a local area is not in compliance with the uniform admin- istrative requirements referred to in para- graph (3), the Governor shall— (A) require corrective action to secure prompt compliance with the requirements; and (B) impose the sanctions provided under subsection (b) in the event of failure to take the required corrective action. (6) Certification The Governor shall, every 2 years, certify to the Secretary that— (A) the State has implemented the uni- form administrative requirements referred to in paragraph (3); (B) the State has monitored local areas to ensure compliance with the uniform admin- istrative requirements as required under paragraph (4); and (C) the State has taken appropriate action to secure compliance with the requirements pursuant to paragraph (5). (7) Action by the Secretary If the Secretary determines that the Gov- ernor has not fulfilled the requirements of this subsection, the Secretary shall— (A) require corrective action to secure prompt compliance with the requirements of this subsection; and