Integrity in workforce board decisions

Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2011/TEGL_35-10-Acc.pdf

                                                          CLASSIFICATION
   EMPLOYMENT AND TRAINING ADMINISTRATION                 Workforce Investment Act
               ADVISORY SYSTEM                            CORRESPONDENCE SYMBOL
          U.S. DEPARTMENT OF LABOR
                                                          OWI
                                                          DATE
             Washington, D.C. 20210                       June 16, 2011


ADVISORY:          TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 35-10

TO:                STATE WORKFORCE AGENCIES
                   STATE WORKFORCE LIAISONS
                   STATE WORKFORCE INVESTMENT BOARD CHAIRS
                   LOCAL WORKFORCE INVESTMENT BOARD CHAIRS

FROM:              JANE OATES /s/
                   Assistant Secretary

SUBJECT:           Transparency and Integrity in Workforce Investment Board Decisions

1. Purpose. To communicate expectations about integrity and transparency in decisions made
   by state and local workforce investment boards and officials, and requirements regarding
   conflict of interest.

2. References.
       Workforce Investment Act of 1998 (29 United States Code 2801 et seq.), Public Law
        105-220, as amended. Available at http://www.doleta.gov/usworkforce/wia/wialaw.pdf.
       WIA Final Rule, 20 CFR Part 661, Fed. Reg. 49294 August 11, 2000. Available at
        http://www.doleta.gov/usworkforce/wia/finalrule.pdf.
       Uniform Administrative Requirements (29 CFR Part 95 and 97). Available at
        http://www.access.gpo.gov/nara/cfr/waisidx_09/29cfr95_09.html and
        http://www.access.gpo.gov/nara/cfr/waisidx_09/29cfr97_09.html.
       Wagner-Peyser Act, as amended (29 United States Code 49 et seq.)
       Hatch Act (5 United States Code 1501-1508.) Available at
        http://www.osc.gov/documents/hatchact/ha_sta.pdf.
       Planning Guidance for the Strategic State Plan for Title I of the Workforce Investment
        Act of 1998 and the Wagner-Peyser Act [(73 Federal Register 72853) (Dec. 1, 2008)],
        (Office and Management Budget No. 1205-0398).

3. Background. Providing responsible stewardship for and oversight of public funding for
   Federally-funded workforce programs must be accomplished in a way that demonstrates
   strong integrity, accountability, and transparency in order to preserve the public trust. The
   responsibility for this stewardship and oversight is shared in the devolved public workforce
   system by Federal, state and local entities. Workforce programs are largely governed under
   the Workforce Investment Act (WIA) by state and local workforce investment boards (WIBs)




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  which are composed of individuals from the business community, education community,
  government agencies, organized labor, legislators, community service organizations, and
  others. The WIBs are responsible for multiple functions, including procurement decisions.
  Local WIBs select One-Stop Career Center operators and youth service providers, and
  develop a budget for carrying out the duties of the local WIB. These decisions often have
  significant implications for service providers and participants they serve, and thus must be
  made in a transparent and ethical manner. Members of state and local WIBs should be aware
  of the Federal, state and local laws and regulations which guide their conduct while serving
  on the WIB.

4. Guiding Statutes and Regulations. Local and state WIBs must make decisions in keeping
   with several laws and regulations. The relevant Federal laws and regulations include:

   “Sunshine provision” regulations for state WIBs (20 CFR 661.207) and local WIBs (20
    CFR 661.307). Specifically, a state or local WIB must conduct its business in an open
    manner and make activities of the board available to the public, including the development
    of specific policies and the minutes of formal board meetings upon request.

   Uniform Administrative Requirements for procurement (29 CFR 97.36 and 29 CFR 95.42).
    The Uniform Administrative Requirements are government-wide standards around
    procurement that all Federal grantees must follow, including standards for conflict of
    interest. The Department of Labor codified these requirements at 29 CFR Part 97 for
    governmental grantees and at 29 CFR Part 95 for non-governmental grantees. These
    requirements describe specific instances which would constitute a conflict of interest, the
    types of characteristics that should be considered when making awards to contractors,
    requirements for procurement protest procedures, and other requirements.

   Conflict of interest regulation for entities receiving WIA title I funds (20 CFR
    667.200(a)(4)). This part of the WIA regulations indicates that in addition to the uniform
    administrative requirements described above, a state WIB member or a local WIB member
    or a Youth Council member must neither cast a vote, nor participate in decision-making, on
    the provision of services by that member or any organization which that member directly
    represents. The WIB member also must not cast a vote, nor participate in decision-making,
    on any matter which would provide any direct financial benefit to that member or a member
    of his or her immediate family. WIA regulations note that, by itself, neither membership on
    a WIB or Youth Council alone, nor the receipt of WIA funds to provide training and related
    services, violates these conflict of interest provisions.

   The Hatch Act and its regulations, for individuals paid with Federal funds (5 CFR 151).
    The Hatch Act restricts the political activity of individuals principally employed by state or
    local executive agencies and who work in connection with programs financed in whole or in
    part by Federal loans or grants. Covered state and local employees may not, among other
    things, use their official authority or influence to interfere with or affect the results of an
    election or nomination; or directly or indirectly coerce, attempt to coerce, command, or
    advise a state or local officer or employee to pay, lend, or contribute anything of value to a
    party, committee, organization, agency, or person for political purposes. More information
    about how the Hatch Act applies to state and local officials is available at
    http://www.osc.gov/documents/hatchact/ha_sta.pdf.

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   State and local WIBs are also governed by relevant state and local rules. Virtually all states
   have in place laws and regulations defining conflict of interest, establishing requirements for
   procurement decisions, and establishing ethics rules.

5. Action Requested. The Employment and Training Administration (ETA) encourages state
   and local boards to regularly review and be aware of the relevant Federal, state and local
   rules guiding procurement decisions and other board responsibilities.

   States should include in their monitoring of local areas a review of local adherence to the
   requirements described in this guidance. ETA also includes state policies related to these
   requirements in its oversight and monitoring of states, including its review of policies
   submitted with the WIA Strategic State Plans.

   ETA requests that states review this information with local boards, and all boards should
   consider including this guidance in orientations for new board members.

6. Inquiries. Inquiries should be directed to the appropriate ETA Regional Office.




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