(a)  Service delivery areas may be redesignated from time to time, as permitted in JTPA and by this Chapter 20.  Redesignations may be initiated by a voluntary petition for redesignation, by a notice of failure to agree on a job training plan or by involuntary redesignation.

(b)  Voluntary petitions for redesignation.

(1)           A unit of government or a consortium of units of government may seek redesignation by the filing of a petition for redesignation.  The petition will request the realignment of the service delivery area(s) that the unit(s) of government currently fall within and the designation of either a new service delivery area or the inclusion of the petitioning unit(s) of government in an existing service delivery area.

(2)           A redesignation petition must state the basis on which the unit(s) of government qualify as a service delivery area, a statement of reasons for the redesignation request, a copy of the proposed consortium agreement, if any, a summary of the steps to be taken to procure public comment on the redesignation, including a schedule on which the steps should be taken, the effect, if any, on the current service delivery area(s) of the unit(s) of government and the effect of redesignation on the provision of services within the current service delivery area(s).

(3)           The redesignation petition must be filed with the Director, with a copy to the chairperson(s) of the private industry council(s) in the present service delivery area(s), at a time sufficiently in advance of the proposed designation to permit publication, comment and approval of the redesignation at least four months prior to the beginning of the program year with which the redesignation would be effective.

(4)           Voluntary redesignation of a service delivery area may not occur any more often than once every two years, provided that inclusion of additional units in or removal of units from the Rural Service Delivery Area shall not be subject to this restriction.

(5)           Petitions for redesignation may be filed by unit(s) of government in a service delivery area that is subject to a reorganization plan under Section 106(h) of JTPA, at any time, which petition the Governor will endeavor to accommodate.

(c)  Redesignation After Notice of Failure to Agree.

(1)           A unit of government that serves as a service delivery area or any unit or units of government in a consortium that serves as a service delivery area must notify the Director when it is clear to the appropriate chief elected official(s) that the private industry council and the chief elected official will not agree on a service delivery area job training plan.  The Director may endeavor to negotiate a mutually agreeable job training plan, but will not be required to do so if he or she reasonably believes that negotiation would be unproductive.

(2)           The notice of failure to agree must be accompanied by a request for redesignation containing the information required in Paragraph (b)(2) of this Rule and attaching a copy of the resolution of the governing board or statement of the chief elected official that agreement on the job training plan will not be reached.

(d)  Involuntary Redesignation.

(1)           If the Governor determines that, because of shifts in population or changes in originally designated service delivery areas, the existing service delivery areas do not satisfy the intent of JTPA, the Governor may request that the State Job Training Coordinating Council propose appropriate service delivery areas as described in Section 101 of JTPA. Units of government and consortia of units of government may request designation as a service delivery area.

(2)           If the Governor determines that an existing service delivery area has grossly or abusively misappropriated funds or grossly or abusively maladministered activities, and if corrective action has not been taken, the Governor may condition the receipt of future subgrant funds on the filing of a petition for redesignation under Paragraph (b) of this Rule, provided that his sanction shall only be used where the existing designation does not serve the best interests of the residents of the service delivery area and would not protect the integrity of funds, for which the state may be liable.

(e)  Redesignations will be accompanied by a reconstitution of the affected private industry councils.

(f)  The redesignation of the service delivery area for any unit(s) of government shall not affect the right of the Division to proceed against the unit(s) of government for disallowed costs incurred by the service delivery area grant recipient during the period in which the unit(s) of government belonged to the service delivery area.

(g)  Determinations under this Section are reviewable pursuant to 4 NCAC 20C .0002 or by the Secretary of USDOL if JTPA Section 101 (A)(4)(c) applies.


History Note:        Authority G.S. 143B‑430(b); 20 C.F.R. 628.1; Ex. O. No. 93, June 8, 1983;

Eff. February 1, 1976;

Transferred from T01: 18 Eff. September 15, 1981;

Amended Eff. August 1, 1988; July 1, 1988; October 1, 1984; August 1, 1982.