NOTICE, HEARING, AND GRIEVANCE PROCEDURES.

SEC. 116. NOTICE, HEARING, AND GRIEVANCE PROCEDURES. (a) Decertification of Positions.— Section 176(a) of the National and Community Service Act of 1990 (42 U.S.C. 12636(a)) is amended— (1) in paragraph (1), by inserting “, or revoke the designation of positions, related to the grant or contract, as approved national service positions,” before “whenever the Commission”; and (2) in paragraph (2)(B), by inserting “or revoked” after “terminated”. (b) Construction.— Section 176(e) of such Act (42 U.S.C. 12636(e)) is amended by adding before the period the following “, other than assistance provided pursuant to this Act”. (c) Grievance Procedure.— Section 176(f) of such Act is amended to read as follows: “(f) Grievance Procedure.— “(1) In general.— A State or local applicant that receives assistance under this title shall establish and maintain a procedure for the filing and adjudication of grievances from participants, labor organizations, and other interested individuals concerning projects that receive assistance under this title, including grievances regarding proposed placements of such participants in such projects. “(2) Deadline for GRIEVANCES.— Except for a grievance that alleges fraud or criminal activity, a grievance shall be made not later than 1 year after the date of the alleged occurrence of the event that is the subject of the grievance. “(3) Deadline for hearing and decision .— “(A) Hearing.— A hearing on any grievance conducted under this subsection shall be conducted not later than 30 days after the filing of such grievance. “(B) Decision.— A decision on any such grievance shall be made not later than 60 days after the fifing of such grievance. “(4) Arbitration.— “(A) In general.— “(i) Jointly selected arbitrator.— In the event of a decision on a grievance that is adverse to the party who filed such grievance, or 60 days after the fifing of such grievance if no decision has been reached, such party shall be permitted to submit such grievance to binding arbitration before a qualified arbitrator who is jointly selected and independent of the interested parties. “(ii) Appointed arbitrator.— If the parties cannot agree on an arbitrator, the Chief Executive Officer shall appoint an arbitrator from a list of qualified arbitrators within 15 days after receiving a request for such appointment from one of the parties to the grievance. “(B) Deadline for proceeding.— An arbitration proceeding shall be held not later than 45 days after the request for such arbitration proceeding, or, if the arbitrator is appointed by the Chief Executive Officer in accordance with subparagraph (A)(ii), not later than 30 days after the appointment of such arbitrator. 107 STAT. 864 “(C) Deadline for decision.— A decision concerning a grievance shall be made not later than 30 days after the date such arbitration proceeding begins. “(D) Cost.— “(i) In general.— Except as provided in clause (ii), the cost of an arbitration proceeding shall be divided evenly between the parties to the arbitration. “(ii) Exception.— If a participant, labor organization, or other interested individual described in paragraph (1) prevails under a binding arbitration proceeding, the State or local applicant described in paragraph (1) that is a party to such grievance shall pay the total cost of such proceeding and the attorneys’ fees of such participant, labor organization, or individual, as the case may be. “(5) Proposed placement.— If a grievance is filed regarding a proposed placement of a participant in a project that receives assistance under this title, such placement shall not be made unless the placement is consistent with the resolution of the grievance pursuant to this subsection. “(6) Remedies.— Remedies for a grievance filed under this subsection include— “(A) suspension of payments for assistance under this title; “(B) termination of such payments; “(C) prohibition of the placement described in paragraph (5); and “(D) in a case in which the grievance involves a violation of subsection (a) or (b) of section 177 and the employer of the displaced employee is the recipient of assistance under this title— “(i) reinstatement of the displaced employee to the position held by such employee prior to displacement; “(ii) payment of lost wages and benefits of the displaced employee; “(iii) reestablishment of other relevant terms, conditions, and privileges of employment of the displaced employee; and “(iv) such equitable relief as is necessary to correct any violation of subsection (a) or (b) of section 177 or to make the displaced employee whole. “(7) Enforcement.— Suits to enforce arbitration awards under this section may be brought in any district court of the United States having jurisdiction of the parties, without regard to the amount in controversy and without regard to the citizenship of the parties.”.