(a) No funds provided under the Act shall be used, or proposed for
use, to encourage or to induce the relocation of an establishment, or
part thereof, that result in the loss of employment for any employee or
such establishment at the original location.
(b) For 120 days after the commencement or the expansion of
commercial operations of a relocating establishment, no funds provided
under this Act shall be used for customized or skill training, on-the-
job training, or company-specific assessments of job applicants or
employees, for any relocating establishment or part thereof at a new, or
expanded location, if the relocation of such establishment or part
thereof results in a loss of employment for any employee of such
establishment at the original location.
(c) For the purposes of this section, relocating establishment means
a business entity, including a successor-in-interest, which is moving
any operations from a facility in one labor market area within the
United States and its territories to a new or expanding facility in
another labor market area. For the purposes of this section, a labor
market area is an area within
which individuals can readily change employment without changing their
place of residence.
(d) Pre-award review. To verify that an establishment which is new
or expanding is not, in fact, relocating employment from another area,
standardized pre-award review procedures developed by the State shall be
completed and documented jointly by the service delivery area or
substate grantee and the establishment as a prerequisite to JTPA
assistance. The review should include names under which the
establishment does business, including successors-in-interest; the name,
title, and address of the company official certifying the information;
the name and address of the facility in the other geographic location
which is being closed or from which business is being transferred; a
statement from the employer about job losses at that location; the
nature of the products or business being transferred; the date the
facility will commence or expand operations, and whether JTPA assistance
is sought in connection with past or impending job losses at other
facilities.
(e) Violations and sanctions. The Department will promptly review
and take appropriate action with regard to alleged violations of the
provisions of paragraphs (a) and (b) of this section. Procedures for the
investigation and resolution of the violations are provided for under
subpart F of this part. Sanctions and remedies are provided for under
subpart G of this part.
