La. Admin. Code tit. 40 § XIII-163

Current through Register Vol. 50, No. 11, November 20, 2024

Section XIII-163 - Prevention of Fraud and Program Abuse

A. To ensure integrity of programs under the Act, special efforts are necessary to prevent fraud and other program abuses. Fraud includes deceitful practices and intentional misconduct, such as willful misrepresentation in accounting for use of program funds. "Abuse" is a general term which encompasses improper conduct which may or may not be fraudulent in nature. While any violation of the Act or regulations may constitute fraud or program abuse, this rule identifies and addresses specific areas which need clarification.

B. This rule sets forth specific responsibilities of recipients, service delivery area grant recipients and subrecipients to prevent fraud and program abuse in JTPA.

C. Conflict of Interest. In addition to the standards set forth below, the State Code of Governmental Ethics contains restrictions concerning conflicts of interest. Any issues regarding the State Code of Governmental Ethics should be brought before the Commission of Ethics for Public Employees.

1. No member of any council under the Act shall cast a vote on the provision of services by that member or any organization which that member directly represents or any matter which would provide direct financial benefit to that member. Caution must be exercised by members to insure that council action does not render the member in violation of R.S. 42:1112, which under certain circumstances may require members to cure the conflict of interest through resignation.

2. Each recipient, service delivery area grant recipient and subrecipients shall avoid personal conflict of interest and appearance of conflict of interest in awarding financial assistance and in the conduct of procurement activities involving funds under the Act.

3. Neither the recipient, any service delivery area grant recipient nor subrecipients shall pay funds under the Act to any individual, institution, or organization to conduct an evaluation of any program under the Act if such individual, institution, or organization is associated with that program as a consultant or technical advisor.

D. Kickbacks. No officer, employee, or agent of the recipient, service delivery area grant recipient or subrecipients shall solicit or accept gratuities, favors, or anything of monetary value from any actual or potential subrecipient.

E. Commingling of Funds. The recipient, service delivery area grant recipients and subrecipients shall comply with the applicable requirements of 29 CFR 97.21(h) and R.S. 49:321.

F. Nepotism. The State Code of Governmental Ethics contains restrictions against the hiring of certain family members. Questions regarding the hiring of family members should be referred to the Commission on Ethics for Public Employees.

G. Child Labor. The recipient, service delivery area grant recipients and subrecipients shall comply with applicable federal, state and local child labor laws.

H. Political Patronage

1. Neither the recipient, service delivery area grant recipients, nor any subrecipients may select, reject, or promote a participant based on that individual's political affiliation or beliefs. The selection or advancement of employees as a reward for political services or as a form of political patronage whether or not political services is partisan in nature, is prohibited.

2. There shall be no selection of subrecipients based on political patronage or affiliation.

I. Political Activities

1. No program under the Act may involve political activities, including but not limited to:

a. no participant may engage in partisan or nonpartisan political activities during hours for which the participant is paid with JTPA funds;

b. no participant may, at any time, engage in partisan political activities in which such participant represents himself/herself as spokesperson of the JTPA Program;

c. no participant may be employed or outstationed in the office of a member of Congress or a state or local legislator or on any staff of a legislative committee; and

d. no participant may be employed or outstationed in positions involving political activities in the offices of other elected executive officials. However, since under the responsibility of such elected officials are nonpolitical activities, placement of participants in such nonpolitical positions is permissible. Service delivery area grant recipients and subrecipients shall develop safeguards to ensure that participants placed in these positions are not involved in political activities. These safeguards will be subject to review and monitoring.

2. Persons governed by Chapter 15 of Title 5, United States Code, the Hatch Act, shall comply with its provisions as interpreted by the United States Office of Personnel Management. These provisions apply:

a. to persons (including participants) employed by state and local government in the administration of the JTPA Program; and

b. generally to any participant whose principal employment is in connection with an activity financed by other federal grants or loans.

J. Lobbying Activities. No funds provided under the Act may be used in any way:

1. to attempt to influence in any manner a member of Congress to favor or oppose any legislation or appropriation by Congress;

2. to attempt to influence in any manner state or local legislators to favor or oppose any legislation or appropriation by such legislators. Communications and consultation with state and local legislators for purposes of providing information such as on matters necessary to provide compliance with the Act shall not be considered lobbying.

K. Sectarian Activities. The Act provides the following prohibitions regarding sectarian activity:

1. participants shall not be employed on the construction, operation or maintenance of so much of any facility as is used or to be used for sectarian instruction or as a place for religious worship; and

2. participants shall not be involved, nor JTPA funds expended, for religious or anti-religious activities.

L. Unionization and Antiunionization Activities/Work Stoppages

1. No funds under the Act shall be used in any way to assist, promote or oppose unionization.

2. No individual shall be required to join a union as a condition for enrollment in a program in which only institutional training is provided, unless such institutional training involves individuals employed under a collective bargaining agreement which contains a union security provision.

3. No participant in work experience may be placed into, or remain working in any position which is affected by labor disputes involving a work stoppage. If such a work stoppage occurs during the grant period, participants in affected positions must:

a. be relocated to positions not affected by the dispute;

b. be suspended through administrative leave; and

c. where participants belong to the labor union involved in the work stoppage, be treated in the same manner as any other union member except such members must not remain working in the affected position. The grantee shall make every effort to relocate participants, who wish to remain working, into suitable positions unaffected by the work stoppage.

4. No person shall be referred to or placed in an on-the-job training position affected by a labor dispute involving a work stoppage and no payments may be made to employers for the training and employment of participants in on-the-job training during the periods of work stoppage.

5. Nothing in this Section shall prevent an employer from checking off union dues or service fees pursuant to applicable collective bargaining agreements or state law.

6. No currently employed worker shall be displaced by any participant (including partial displacement such as a reduction in the hours of nonovertime work, wages, or employment benefits).

7. No program under this Act shall impair existing contracts for services or existing collective bargaining agreements, unless the employer and the labor organization concur in writing with respect to any elements of the proposed activities which affect such agreement, or either such party fails to respond to written notification requesting its concurrence within 30 days of receipt thereof.

8. No participant shall be employed or job openings filled when any other individual is on layoff from the same or any substantially equivalent job, or when the employer has terminated the employment of any regular employee or otherwise reduced its workforce with the intention of filling the vacancy so created by hiring a participant whose wages are subsidized under this Act.

9. No jobs shall be created in a promotional line that will infringe in any way upon the promotional opportunities of currently employed individuals.

M. Maintenance of Effort

1. To ensure maintenance of effort under all programs under the Act, the recipient, service delivery area grant recipients and subrecipients shall ensure that such programs:

a. result in an increase in employment and training opportunities over those which would otherwise be available;

b. do not result in the displacement of currently employed workers including partial displacement, such as reduction in hours of nonovertime work, wages, or employment benefits;

c. do not impair existing contracts for services or result in the substitution of federal funds for other funds in connection with work that would otherwise be performed including services normally provided by temporary, part-time or seasonal workers or through contracting such services out; and

d. result in the creation of jobs that are in addition to those that would be funded in the absence of assistance under the Act.

2. Funds under this Act shall supplement, and not supplant, the level of funds that would otherwise be made available from nonfederal sources for the planning and administration of programs.

N. Responsibilities of Service Delivery Area Grant Recipients and Subrecipients for Preventing Fraud and Program Abuse and for General Program Management General Requirements. Each service delivery area grant recipient and subrecipients shall establish and use internal program management procedures sufficient to prevent fraud and program abuse.

La. Admin. Code tit. 40, § XIII-163

Promulgated by the Department of Labor, Office of Labor, LR 9:335 (May 1983), amended LR 13:360 (June 1987), amended by the Department of Employment and Training, Office of Labor, LR 17:357 (April 1991), amended by the Department of Labor, Office of Labor, LR 19:1590 (December 1993).

AUTHORITY NOTE: Promulgated in accordance with R.S. 23:2022.