[Federal Register Volume 60, Number 72 (Friday, April 14, 1995)]
[Rules and Regulations]
[Page 18993]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9277]



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DEPARTMENT OF LABOR

Employment and Training Administration

20 CFR Part 638


Job Corps: Allowances and Allotments

AGENCY: Employment and Training Administration, Labor.

ACTION: Final rule.

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SUMMARY: Job Corps is amending its regulations on student allowances 
and allotments. The objectives are: to increase the length of 
enrollment requirements for readjustment allowance eligibility, in 
order to encourage students to lengthen their enrollment and maximize 
Job Corps offerings and benefits; and to amend the allotment section to 
coincide with revisions in readjustment allowance accrual.

EFFECTIVE DATE: May 15, 1995.

FOR FURTHER INFORMATION CONTACT: Dana Davidson Johnson, Office of Job 
Corps, Division of Program Management and Review. Telephone: (202) 219-
6568 (this is not a toll-free number).

SUPPLEMENTARY INFORMATION: Job Corps is implementing a new pay and 
allotment system which will provide students with enough money to meet 
their basic needs, while adding greater incentives than are available 
in the current system to encourage student retention, performance, 
program completion, and length of enrollment. The rule enables the Job 
Corps Director to increase the number of paid days for eligibility for 
readjustment allowances. This will encourage students to stay in the 
program longer. Students thus can be better prepared for employment, 
particularly because this added time will encourage students to acquire 
social skills along with vocational and academic training.
    Payroll will be conducted on a biweekly schedule versus the current 
twice-monthly procedure. The rule ties into the implementation of the 
new Student Pay, Allowance and Management Information System (SPAMIS) 
utilized by Job Corps. The new pay system will be much more responsive 
than the current system, with individual student pay levels and leave 
status maintained on a current basis and status changes made by the Job 
Corps Centers as they occur. The rule allows the accrual of 
readjustment allowances to be set for each paid day and allotments to 
be processed on a biweekly basis.
    This was published as a proposed rule, with a request for comments, 
on November 1, 1994, 59 FR 54539-54540. Only one comment was received 
in response to the proposed rule--the Georgia Department of Labor 
encourages Job Corps to promulgate the rule in final as proposed. The 
Department of Labor agrees and in this document is doing so.
    This rule applies only to allowances and allotments for Job Corps 
students. The rule is not classified as a ``significant regulatory 
action'' under Executive Order 12866, ``Regulatory Planning and 
Review''. It does not (1) materially alter the budgetary impact of 
entitlements or the rights and obligations of recipients thereof; or 
(2) raise novel legal or policy issues arising out of legal mandates in 
the President's priorities. It is not likely (3) to result in having an 
annual effect on the economy of $100 million or more; or (4) to create 
a serious inconsistency or interfere with action taken or planned by 
another agency. As required by the Regulatory Flexibility Act, the 
Department of Labor at the time the proposed rule was published, 
notified the Chief Counsel for Advocacy, Small Business Administration, 
and made the certification pursuant to 5 U.S.C. 605(b) that this rule 
will not have a significant economic impact on a substantial number of 
small entities.

List of Subjects in 20 CFR Part 638

    Contract programs, Labor, Training and employment programs.

Final Rule

    Accordingly, 20 CFR part 638 is amended as follows:
    1. The authority for part 638 continues to read as follows:

    Authority: 29 U.S.C. 1579(a).

    2. In Sec. 638.524, paragraphs (b) and (c) are revised to read as 
follows:


Sec. 638.524  Allowances and allotments.

* * * * *
    (b) The Job Corps Director shall ensure that each student receives 
a readjustment allowance for each paid day of satisfactory 
participation in Job Corps after termination from the program if he/she 
terminates after 210 days in pay status or after 180 days if he/she is 
a maximum benefits or vocational completer. In the event that a student 
receives a medical termination, he/she shall be eligible for the 
accrued readjustment allowance, regardless of length of stay or other 
considerations. See also paragraph (d) of this section. (Section 
429(c)).
    (c) The Job Corps Director shall establish procedures to allow 
students to authorize deductions from their readjustment allowance, 
which shall be matched by an equal amount from Job Corps funds and sent 
biweekly as an allotment by the SPAMIS Data Center to the student's 
spouse, child(ren) or other dependent, if such spouse, child(ren) or 
other dependent resides in any State in the United States.
* * * * *
    Signed at Washington, DC, this 3rd day of April 1995.
Robert B. Reich,
Secretary of Labor.
[FR Doc. 95-9277 Filed 4-13-95; 8:45 am]
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