631.34—Designation of substate areas.
(a)
The Governor, after receiving recommendations from the SJTCC or HRIC, shall designate substate areas for the State ( section 312(a) ).
(1)
Ensure that each service delivery area within the State is included within a substate area and that no SDA is divided among two or more substate areas; and
(2)
Consider the availability of services throughout the State, the capability to coordinate the delivery of services with other human services and economic development programs, and the geographic boundaries of labor market areas within the State.
(3)
Any concentrated employment program grantee for a rural area as described in section 101(a)(4)(A)(iii) of the Act.
(d)
In addition to the entities identified in paragraph (c) of this section, the Governor may, without regard to the 200,000 population requirement, designate SDAs with smaller populations as substate areas.
(e)
The Governor may deny a request for substate area designation from a consortium of two or more SDAs that meets the requirements of paragraph (c)(2) of this section only upon a determination that the request is not consistent with the effective delivery of services to eligible dislocated workers in the relevant labor market area, or would otherwise not be appropriate to carry out the purposes of title III. The Governor will give good faith consideration to all such requests by a consortium of SDAs to be a substate area. In denying a consortium's request for substate area designation, the Governor shall set forth the basis and rationale for the denial ( section 312(a)(5) ).
(f)
In the case where the service delivery area is the State, the entire State shall be designated as a single substate area.
(g)
(1)
Entities described in paragraphs (c)(1) and (3) of this section may appeal the Governor's denial of substate area designation to the Secretary of Labor. The procedures that apply to such appeals shall be those set forth at § 628.405(g) for appeals of the Governor's denial of SDA designation.
(2)
An entity described in paragraph (c)(2) of this section that has been denied substate area designation may utilize the State-level grievance procedures required by section 144(a) of the Act and subpart E of part 627 of this chapter for the resolution of disputes arising from such a denial.
(h)
Designation of substate areas shall not be revised more frequently than once every two years. All such designations must be completed no later than four months prior to the beginning of any program year ( section 312(a)(6) ).