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wise available on a nonreimbursable basis, he may reimburse suc agencies for services rendered to persons under this part.

(d) To the extent practicable and where necessary, work incenti programs established by this part shall include, in addition to th regular counseling, testing, referral available through the Feder State Employment Service System, program orientation, basic educ tion, training in communications and employability skills, won experience, institutional training, on-the-job training, job develo; ment, and special job placement and followup services, required : assist participant in securing and retaining employment and securit possibilities for advancement.

(e) (1) In order to develop public service employment under th program established by section 432 (b) (3), the Secretary shall ent into agreements with (A) public agencies, (B) private nonprofit o ganizations established to serve a public purpose, and (C) Indis tribes with respect to Indians on a reservation, under which indivi uals deemed suitable for participation in such a program will be pr vided work which serves a useful public purpose and which wou not otherwise be performed by regular employees.

(2) Such agreements shall provide

(A) for the payment by the Secretary to each employer, wit respect to public service employment performed by any individ for such employer, of an amount not exceeding 100 percent of cost of providing such employment to such individual during t first year of such employment, an amount not exceeding 75 pe cent of the cost of providing such employment to such individu during the second year of such employment, and an amount exceeding 50 percent of the cost of providing such employment: such individual during the third year of such employment;

(B) the hourly wage rate and the number of hours per wee individuals will be scheduled to work in public service emplo ment for such employer;

(C) that the Secretary will have such access to the premises the employer as he finds necessary to determine whether such er ployer is carrying out his obligations under the agreement a this part; and

(D) that the Secretary may terminate any agreement unde this subsection at any time.

(3) [Repealed.]

(4) No wage rates provided under any agreement entered int under this subsection shall be lower than the applicable minimum wag for the particular work concerned.

(f) Before entering into a project under section 432(b) (3), Secretary shall have reasonable assurances that

(1) appropriate standards for the health, safety, and othe conditions applicable to the performance of work and training such project are established and will be maintained,

(2) such project will not result in the displacement of employed workers,

(3) with respect to such project the conditions of work, training, education, and employment are reasonable in the light of such factors as the type of work, geographical region, and proficiency of the participant,

(4) appropriate workmen's compensation protection is provided to all participants.

(g) Where an individual certified to the Secretary of Labor purant to section 402 (a) (19) (G) refuses without good cause to accept "ployment or participate in a project under a program established this part, the Secretary of Labor shall (after providing opportunity r fair hearing) notify the State agency which certified such indidual and submit such other information as he may have with respect such refusal.

(h) With respect to individuals who are participants in public rvice employment under the program established by section 432(b) ), the Secretary shall periodically (but at least once every six onths) review the employment record of each such individual while such special work project and on the basis of such record and such her information as he may acquire determine whether it would be asible to place such individual in regular employment or on any of e projects under the programs established by section 432 (b) (1) id (2).

(i) In planning for activities under this section, the chief execue officer of each State shall make every effort to coordinate such Civities with activities provided by the appropriate private induscouncil and chief elected official or officials under the Job aining Partnership Act.1

Incentive Payment

Sec. 434. (a) The Secretary is authorized to pay to any paripant under a program established by section 432 (b) (2) an incenve payment of not more than $30 per month, payable in such mounts and at such times as the Secretary prescribes.

(b) The Secretary of Labor is also authorized to pay, to any memr of a family participating in manpower training under this part, lowances for transportation and other costs incurred by such memr, to the extent such costs are necessary to and directly related to the articipation by such member in such training.

Federal Assistance

Sec. 435. (a) Federal assistance under this part shall not exceed per centum of the costs of carrying out this part. Non-Federal conbutions may be cash or in kind, fairly evaluated, including but not mited to plant, equipment, and services.

- Subsec. (1) was added by sec. 502 (c) (3) of P.L. 97-300.

(b) Costs of carrying out this part include costs of training, supɛ vision, materials, administration, incentive payments, transportati and other items as are authorized by the Secretary, but may not: clude any reimbursement for time spent by participants in wo training, or other participation in the program.

Period of Enrollment

Sec. 436. (a) The program established by section 432 (b) shall be designed by the Secretary so that the average period of enr ment under all projects under such program throughout any area the United States will not exceed one year.

(b) Services provided under this part may continue to be provi to an individual for such period as the Secretary determines (in: cordance with regulations prescribed jointly by him and the Sec tary of Health, Education, and Welfare) is necessary to qualify fully for employment even though his earnings disqualify him fr aid under a State plan approved under section 402.

Relocation of Participants

Sec. 437. The Secretary may assist participants to relocate the place of residence when he determines such relocation is necessary order to enable them to become permanently employable and self-s porting. Such assistance shall be given only to participants who c cur in their relocation and who will be employed at their place relocation at wage rates which will meet at least their full need determined by the State to which they will be relocated. Assista under this section shall not exceed the reasonable costs of transport tion for participants, their dependents, and their household belo ings plus such relocation allowance as the Secretary determines to: reasonable.

Participants Not Federal Employees

Sec. 438. Participants in programs established by this part shi be deemed not to be Federal employees and shall not be subject to t provisions of laws relating to Federal employment including those lating to hours of work, rates of compensation, leave, unemployme compensation, and Federal employee benefits.

Rules and Regulations

Sec. 439. The Secretary and the Secretary of Health, Educatic: and Welfare, shall, not later than July 1, 1972, issue regulatio to carry out the purposes of this part. Such regulations shall provi for the establishment, jointly by the Secretary and the Secretary Health, Education, and Welfare, of (1) a national coordination co

(B) individuals receiving aid or assistance under the program administered by such qualified agency were recipients of aid under a State plan which is so approved.

(2) Any agreement entered into under this section shall remain in effect for such period as may be specified in the agreement by the Secretary and the qualified State agency, except that, whenever the Secretary determines, after reasonable notice and opportunity for hearing to the qualified State agency, that such agency has failed substantially to comply with its obligations under such agreement, the Secretary may suspend operation of the agreement until such time as he is satisfied that the State agency will no longer fail substantially to comply with its obligations under such agreement.

(3) Any such agreement shall further provide that the agreement will be inoperative for any calendar quarter if, for the preceding calendar quarter, the maximum amount of benefits payable under the program of aid or assistance to families of unemployed parents administered by the qualified State agency which is a party to such agreement is lower than the maximum amount of benefits payable under such program for the quarter which ended September 30, 1967. (d) The Secretary shall, at the request of any qualified State agency referred to in subsection (a) of this section and upon receipt from it of a list of the names of individuals rereferred to the Secretary, furnish to such agency the names of each individual on such list participating in public service employment under section 433 (a) (3) whom the Secretary determines should continue to participate in such employment. The Secretary shall not comply with any such request with respect to an individual on such list unless such individual has been certified to the Secretary by such agency under section 402(a) (19) (G) for a period of at least six months.

Work Incentive Demonstration Program

Sec. 445. (a) Notwithstanding any other provision of this part and part A of this title, any State may elect as an alternative to the work incentive program otherwise provided in this part, and subject to the provisions of this section, to operate a work incentive demonstration program for the purpose of demonstrating single agency administration of the work-related objectives of this Act, and to receive payments under the provisions of this section.

(b) (1) Not later than June 30, 1984, the Governor of a State which desires to operate a work incentive demonstration program under this section shall submit to the Secretary of Health and Human Services a letter of application stating such intent. Accompanying the letter of application shall be a State program plan which must

(b) Costs of carrying out this part include costs of training, supervision, materials, administration, incentive payments, transportation, and other items as are authorized by the Secretary, but may not include any reimbursement for time spent by participants in work, training, or other participation in the program.

Period of Enrollment

Sec. 436. (a) The program established by section 432 (b) (2) shall be designed by the Secretary so that the average period of enrollment under all projects under such program throughout any area of the United States will not exceed one year.

(b) Services provided under this part may continue to be provided to an individual for such period as the Secretary determines (in accordance with regulations prescribed jointly by him and the Secretary of Health, Education, and Welfare) is necessary to qualify him fully for employment even though his earnings disqualify him from aid under a State plan approved under section 402.

Relocation of Participants

Sec. 437. The Secretary may assist participants to relocate their place of residence when he determines such relocation is necessary in order to enable them to become permanently employable and self-supporting. Such assistance shall be given only to participants who concur in their relocation and who will be employed at their place of relocation at wage rates which will meet at least their full need as determined by the State to which they will be relocated. Assistance under this section shall not exceed the reasonable costs of transportation for participants, their dependents, and their household belongings plus such relocation allowance as the Secretary determines to be reasonable.

Participants Not Federal Employees

Sec. 438. Participants in programs established by this part shall be deemed not to be Federal employees and shall not be subject to the provisions of laws relating to Federal employment including those relating to hours of work, rates of compensation, leave, unemployment compensation, and Federal employee benefits.

Rules and Regulations

Sec. 439. The Secretary and the Secretary of Health, Education, nd Welfare, shall, not later than July 1, 1972, issue regulations carry out the purposes of this part. Such regulations shall provide the establishment, jointly by the Secretary and the Secretary of ealth, Education, and Welfare, of (1) a national coordination com

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