CFR > Title 20 - Employees' Benefits > CHAPTER V—EMPLOYMENT AND TRAINING ADMINISTRATION, DEPARTMENT OF LABOR > PART 627—GENERAL PROVISIONS GOVERNING PROGRAMS UNDER TITLES I, II, AND III OF THE ACT > SUBPART G—Sanctions for Violations of the Act (§627.700 to §627.708) > 627.704—Process for waiver of State liability.

627.704—Process for waiver of State liability.

(a) A recipient may request a waiver of liability as described in section 164(e)(2) of the Act.
(b) (1) When the debt for which a waiver of liability is desired was established in a non-Federal resolution, such requests shall be accompanied by a resolution report.
(2) When the ETA Grant Officer is resolving the finding(s) for which a waiver of liability is desired, such request shall be made no later than the informal resolution period described in § 627.606(c) of this part.
(c) A waiver of the recipient's liability can only be considered by the Grant Officer when the misexpenditure of JTPA funds:
(1) Occurred at a subrecipient level;
(2) Was not a violation of section 164(e)(1) of the Act, or did not constitute fraud; or
(3) If fraud did exist, it was perpetrated against the recipient/subrecipient; and:
(i) The recipient/subrecipient discovered, investigated, reported, and prosecuted the perpetrator of said fraud; and
(ii) After aggressive debt collection action, it can be documented that there is no likelihood of collection from the perpetrator of the fraud.
(4) The recipient has issued a final determination which disallows the misexpenditure, the recipient's appeal process has been exhausted, and a debt has been established; and
(5) The recipient requests such a waiver and provides documentation to demonstrate that it has substantially complied with the requirements of section 164(e)(2)(A), (B), (C), and (D) of the Act.
(d) The recipient shall not be released from liability for misspent funds under the determination required by section 164(e) of the Act unless the Grant Officer determines that further collection action, either by the recipient or subrecipient, would be inappropriate or would prove futile.