[Code of Federal Regulations]
[Title 20, Volume 3]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 20CFR632.118]

[Page 299-300]
 
                      TITLE 20--EMPLOYEES' BENEFITS
 
 CHAPTER V--EMPLOYMENT AND TRAINING ADMINISTRATION, DEPARTMENT OF LABOR
 
PART 632--INDIAN AND NATIVE AMERICAN EMPLOYMENT AND TRAINING PROGRAMS--Table of Contents
 
            Subpart F--Prevention of Fraud and Program Abuse
 
Sec. 632.118  Nepotism.

    (a) No Native American grantee, subgrantee, contractor or employing 
agency shall permit the hiring of any person in a staff position or as a 
participant if that person or a member of that person's immediate family 
is employed in an administrative capacity by the Native American 
grantee, subgrantee or contractor. The Native American grantee may waive 
this requirement if adequate justification is documented. The following 
are examples where the nepotism provision may be waived:
    (1) If there are no other persons eligible and available for 
participation or employment by the Native American grantee;
    (2) Where the Native American grantee's total service population is 
2,000 or less, or where the geographical situation of an Indian or 
Native American community is rural and isolated from other communities 
within the designated service area; or
    (3) Where the potential participant has a history of unemployment or 
dependence on public assistance.
    (b) A Native American grantee may develop its own nepotism policy in 
lieu of the policy in paragraph (a) of this section. The Chief, DINAP, 
shall review any such policy before its implementation and shall approve 
or disapprove it. Any such policy shall be described in the Master Plan 
and have adequate safeguards to prevent persons employed in an 
administrative capacity for the Native American grantee, its subgrantees 
or contractors from using such position to secure JTPA services or other 
benefits for a member of his or her immediate family. A satisfactory 
policy shall include the following minimum criteria:
    (1) All formal personnel procedures shall be followed;
    (2) There shall be full written disclosure to the governing body 
describing

[[Page 300]]

all advantages, conflicts and/or disadvantages which may result from the 
specific personnel action; and
    (3) No member of the immediate family of the applicant shall 
participate in the applicant's selection.
    (c) For purposes of this section, the term ``immediate family'' 
means wife, husband, son, daughter, mother, father, brother, and sister. 
The term ``staff position'' includes all JTPA staff positions funded 
under the Act such as instructors, counselors, and other staff involved 
in administrative, training or service activities. The term ``employed 
in an administrative capacity'' includes those persons who have overall 
administrative responsibility for a program including: All elected and 
appointed officials who have any responsibility for the obtaining of or 
approval of any grant funded under this part as well as other officials 
who have any influence or control over the administration of the 
program, such as the project director, deputy director and unit chiefs; 
and persons who have selection, hiring, placement or supervisory 
responsibilities for participants in a Native American employment and 
training program. The term excludes officials of entities belonging to a 
consortium who are not at the same time officials of the consortium. 
Persons serving on a Native American grantee's advisory councils or PIC 
shall not be considered to be in an administrative capacity.