Reference: None. Background: All programs administered by the Office of Special Targeted Programs are participating in an electronic communication effort through the use of Sprint Mail. Sprint Mail is an electronic mail service system operated by the Sprint Telecommunication Corporation. Electronic mail services are varied and use many different names; however, the generic term for electronic mail is e-mail. The Division of Indian and Native American Programs (DINAP) has been working with its grantee partners for the past 14 months to implement an electronic communication system that enables the entire grantee community to communicate electronically through the use of e-mail. To ensure the involvement of all grantees, DINAP through a special grant with the California Indian Manpower Consortium (CIMC), provided 35 small grantees with computer hardware and several more grantees with modem communication software. Additionally, technical assistance has been provided on-site as well as at regional and national TAT conferences. To date, only a handful of grantees have installed the Sprint Mail software that was mailed to all grantees several months ago. These same grantees have begun communicating electronically with each other and DINAP. However, it is critical for the remaining grantee community to get on-line. Getting on-line means installing the Sprint Mail software and using it. Technical Support Information: The enclosed directory lists each grantee's Sprint Mail user name and Internet address. The following technical information will assist you with using Sprint Mail user names and Internet addresses: 1. You use a Sprint Mail user name to communicate with another Sprint Mail user. For example, when contacting another grantee who is on-line, you simply use their sprint user name which includes a last name followed by a first name initial. For example, Mr. Don Eddy, JTPA Director with the Colorado River Indian Tribes sprint user name is EddyD. In some cases, the user name is listed by city e.g., Flagstaff. In most cases, the use of city user names is preferred to avoid the constant updating of user names caused by personnel changes. 2. You can also contact grantees and DINAP staff by using the Sprint Mail software to send an e-mail message via the Internet. You must use an Internet address when you send an e-mail message to an individual that does not use Sprint Mail software. For example, if you want to contact a person who uses the America On-Line service provider, you would need to use an Internet address e.g., Thomas.Dowd@aol.com. Grantees must use an internet address to contact DINAP team members e.g., ETA.JTP.HallD@doleta.gov. 3. What is meant by being on-line? Simply put, grantees are set up to send and receive e-mail. You will find a column on the far right side of the directory titled on-line. Grantees with a yes signifies they have received and installed their Sprint Mail software. Additionally, they are connected to a phone line that transmits and receives their e-mail messages. They are on-line! Action Required: If you are not on-line, we strongly encourage you to seek assistance and get on-line. If you are on-line, you are encouraged to communicate with other grantees on-line and with your Fed Rep Team. Like all other new tools, this one will also require practice and discipline of use. Please review the directory and inform DINAP of any information changes or updates required. Questions. If you need technical assistance with software installation or have questions about making telephone connec- tions, please contact DINAP's technical support technician, Mr. Earl McLetchie on (202) 219-5504 or Mr. Chris Pata with CIMC on (916) 920-0285. All other questions should be directed to Mr. Thomas Dowd on (202) 219-8502.

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Background: During the November 14 - 19 and December 18 - January 5 furlough periods, States received UCFE claims for furloughed workers. These claims were handled differently in different States and, therefore, reported differently. This directive discusses UCFE claim filing situations that occurred and how States should report data under these varying circumstances for this recent furlough and for any future furlough(s). When Claims are Counted: ETA Handbook 401, Unemployment Insurance Reports Handbook, Section I-2-3, item D.1. requires that claims activity should be counted as of the date it occurs (i.e., when claims are taken), thus, intrastate initial claims and continued weeks claimed are counted during the week the claims are filed. For purposes of this guidance, the words "taken or took" is synonymous with "filed". Interstate liable initial claims and weeks claimed are reported during the week received by the liable State. These instructions, which apply to the ETA 5159, apply equally to the ETA 539 and ETA 538 reports. Therefore, claims should be counted during the week when the claims are filed whether they are filed by mail, taken over the phone, or accepted in person. Due to the quick turnaround required of the ETA 539, the following special provision is provided for that report. ETA Handbook 401 states in Section C. on page I-1-5, "If necessary to meet the due date, any State agency may cut off its report period at noon Friday". State Experience: The following situations were reported to have taken place in the recent furlough with respect to intrastate UCFE claims: State took claims and later canceled them. State received claims but later returned them to claimants with no action. State took claims and some claimants later withdrew their claims. State set up special intake for UCFE claimants on Saturday. State took claims but did not process or count them in the week they were taken but did process and count them in subsequent weeks. States accepted mass claims from Federal Agencies and may have processed those claims or held them. How Counts Should be Made: The following describes how the UCFE claims taken during the furlough period described in item 4. should have been counted. State took claims and later canceled them. If the State considered these claims to be "filed" and then, when the furloughed workers returned to work, the claims were canceled, these claims should be counted since the claims were accepted and work was performed by the State. They should be counted for the week in which they were filed. State received claims but later returned them to claimants with no action. While the State physically received these claims, they were not considered to be "filed" by the State. Therefore, these claims should not have been reported. If they were reported, they should be removed from the claims count and a revised report submitted for the week in which they were reported. State took claims and some claimants later withdrew their claims. If the State considered these claims to be "filed", the claims would be counted as of the date during the week they were taken even though the claim was later withdrawn. State set up special intake for UCFE claimants on Saturday. Claims were taken in accordance with State law. The special timing provisions of the ETA 539 (see item 3 above) allows, but does not require, a State's reporting week to run from noon on Friday through noon the following Friday. If a State uses this alternate week pattern, then claims filed on Saturday may be attributed to and reported for the following week. State took claims but did not process or count them in the week they were taken but did process and count them in subsequent weeks. As stated in 3. above, claims are counted during the week they are taken. If the large intake of claims were not processed until a different week from the one in which the claims were taken, then the claims counts should be adjusted to reflect the week in which the claims were taken. States accepted mass claims from Federal Agencies and may have processed those claims or held them. Some furloughed claimants were told to return claims forms to their Federal agencies. If the Federal agency sent these forms to States, then these claims would be either counted or not counted depending on which of the above procedures the State utilized in handling those claims. Under this procedure, the Federal agency, in effect, acted as an agent for the State. Therefore, all claims considered "filed" by the State should be reported during the week the claimant submitted the forms to the Federal agency. Action Required: States should review how UCFE claims were handled and the workload reported or not reported during the recent furlough and, if necessary: Make adjustments in counts already provided to the National Office; Set procedures in place so that claims counts will be reported properly in the event another furlough occurs. Questions: Address questions to the appropriate Regional Office.

References: Employment and Training Administration Handbook 401, and Employment and Training Administration Handbook 301. Background: BTQ measures were detailed in UIPL 10-96. The first reports required were quality evaluations of nonmonetary determinations, submitted for the quarter ending September 30, 1996. Timeliness measures, including nonmonetary determinations timeliness and nonmonetary issue detection timeliness, were required beginning with the month of January 1997. Action Required: Unemployment Insurance directors and administrators are asked to share Attachment A with supervisors, managers and staff who produce and/or evaluate nonmonetary determinations so that it can be used to assist in evaluation of program strengths and weaknesses.

Authorities and References: Training and Employment Guidance Letter (TEGL) No. 3- 98, WtW Planning Guidance and Instructions for Annual State Plans and Planning Allocations for FY 99, dated July 30, 1998. Background: TEGL 3-98 provided States with Planning Guidance and Instructions for Annual State Plans. It specified that the deadline date for states to submit State Plans is March 31, 1999. This TEGL change extends that deadline. New Deadline for Plan Submission: States must submit their FY 99 Annual Plans no later than June 30, 1999. All other guidelines set out in TEGL 3-98 still apply. Action: States should provide this guidance to appropriate staff for the preparation and submission of the FY 99 WtW Annual State Plans.

References: Title III of P.L. 102-94 (H.R. 1643) enacted January 6, 1996; Subchapter I of chapter 85, title 5 of the United States Code (5 U.S.C. 8501 et seq.) (UCFE law); 20 CFR Part 609 (UCFE regulations); Secretary of Labor's Agreement with States to administer the UCFE and Unemployment Compensation for Ex- servicemembers (UCX) Programs. Background: Generally, whenever there is a lapse in appropriations to fund a Federal government agency, the agency must shut down activities and furlough its employees. However, there are exceptions that permit certain employees to remain working to continue selected functions. This includes those functions which the failure to perform would result in an imminent threat to the safety of human life or the protection of property, or where there is an implied authority by statute that the function should continue. Unless there are special provisions enacted after the furlough which retroactively provide a different outcome, furloughed employees may be eligible for UCFE under subchapter I of chapter 85 of title 5 of the United States Code. However, employees excepted from such furloughs would neither be compensated (because of the lapse in appropriations) nor eligible for UCFE because they perform services during the furlough period and would not be considered unemployed or otherwise eligible for benefits in accordance with State and Federal laws governing the payment of unemployment compensation. Section 312 of P.L. 102-94 changes and suspends some UCFE eligibility requirements, through September 30, 1996, to convey UCFE eligibility to employees excepted from furlough who are not being paid due to a lapse in appropriations. These changes have, in effect, created a sub-program of the regular UCFE program which will be known as the UCFE-Excepted Employees Program (UCFE-EEP). The purpose of the UCFE-EEP is to provide a weekly payment to unpaid workers who are excepted from furlough through September 30, 1996, similar to that paid under the UCFE program to furloughed individuals. To the extent possible these instructions so provide; however, in certain instances provisions have had to be changed or new provisions added in order to provide a weekly benefit amount to individuals not otherwise eligible for UCFE in the absence of Section 312. This document provides the Department's interpretation of the requirements of Section 312 and sets forth operating instructions prescribed by the Department to guide the States in implementing the provisions of the UCFE-EEP. Legal Requirements of Section 312 of P.L. 102-94: Section 312 provides-- ELIGIBILITY FOR UNEMPLOYMENT COMPENSATION: Not with standing any other provisions of law, beginning on January 2, 1996, any Federal employee who is excepted from furlough and is not being paid due to a lapse in appropriations shall be deemed to be totally separated from Federal service and eligible for unemployment compensation benefits under subchapter I of chapter 85 of title 5 of the United States Code with no waiting period for such eligibility to accrue. Section 8502(b) of 5 U.S.C. 8501 et seq., as implemented by 20 CFR 609.9(a) of the Secretary's regulations implementing the UCFE program, relative to State law applicability, provides that-- Except where the result would be inconsistent with the provisions of the Act or this part or the procedures thereunder prescribed by the Department, the terms and conditions of the applicable State law which apply to claims for, and the payment of, State unemployment compensation shall apply to claims for, and the payment of, UCFE and claims for waiting period credit. To effectuate the provisions of Section 312 of P.L. 102-94, it is necessary to differ, in part, from the State and Federal laws normally governing the payment of UCFE. The exceptions to the laws and regulations necessitated by this section are described in section 7. below. Effective Dates: Section 312, the UCFE-EEP provisions, are effective beginning January 2, 1996 and remain in effect through the end of Federal Fiscal Year (FY) 1996 (September 30, 1996). However, it has been determined that only weeks of unemployment beginning on or after January 27, 1996 are compensable under the provisions of Section 312 as the Continuing Resolution provided for retroactive pay for excepted employees from December 16, 1995 through January 6, 1996. The Continuing Resolution which provided funding for Federal agencies that are without FY 1996 appropriations expires on January 26, 1996. In the absence of another Continuing Resolution or FY 1996 appropriations for Federal agencies not funded, the UCFE-EEP will become operational for UCFE-EEP claims filed for a week beginning on or after January 27, 1996 and thereafter as long as such conditions exist, through a week ending on or before September 30, 1996. Policy: The instructions in this document are issued to the States and the cooperating State agencies and constitute controlling guidance provided by the Department of Labor in its role as the principal in the UCFE program. As agents of the United States, the States and the cooperating State agencies may not vary from the operating instructions in this directive (or any subsequent or supplemental operating instructions) without the prior approval of the Department of Labor. The Department's Interpretation of the Requirements of Section 312 of P.L. 102-94 and Controlling Implementation Guidance: The Department's interpretation is that all State and Federal laws and regulations applicable to UCFE claims are applicable to UCFE- EEP claims, except where the result of such application would be inconsistent with the provisions of Section 312 of P.L. 102-94, as described below. Section 312 deems all excepted employees to be totally unemployed with respect to Federal service and eligible for unemployment compensation "under" the UCFE law for as long as such excepted status continues (but not beyond September 30, 1996) without having to serve any waiting week. Thus, even excepted employees having insufficient wages under the State law base period must be determined eligible, as well as excepted employees outside the United States (i.e., outside the States of the United States, District of Columbia, Puerto Rico and the Virgin Islands). Notwithstanding the requirements governing the determination of entitlement under the UCFE/State UI laws, a weekly benefit amount for UCFE-EEP claimants must be established for all Federal employees excepted from furlough who are not being paid due to a lapse in appropriations and who file such claims. (This includes excepted employees who would otherwise have insufficient base period employment and wages to establish monetary entitlement and excepted employees performing excepted services outside the United States). The weekly benefit amount so determined could potentially be paid through a week ending on or before September 30 1996. Therefore, the State law or Federal law maximum total benefit amount does not apply, since, potentially, an individual could receive UCFE-EEP for a number of weeks that exceed any State's maximum. Monetary entitlement for UCFE-EEP claims must be determined under the qualifying requirements for regular UCFE claims by the State in which the excepted employee's official duty station is located or deemed located for purposes of UCFE-EEP. To effect this requirement, all base period wages covered under any State or Federal law will be used in computing UCFE-EEP entitlement under the State law. The official duty station of an excepted employee who is performing services outside of the United States is deemed to be the State in which the headquarters of the Federal agency is located. Charges resulting from the payment of UCFE-EEP benefits must be charged to the Federal agency that designated the individual filing such claim as a Federal excepted employee. Section 312 of P.L. 102-94 does not apply to weeks of unemployment during which an individual is not in excepted employee status. Therefore, UCFE-EEP benefits are not payable for weeks during which the individual is not in excepted employee status. In order to receive benefits for such weeks, an individual must establish or have a separate claim in existence with a remaining balance under any of the other unemployment programs and meet all the eligibility conditions for the receipt of regular benefits. Section 312 prohibits the application of any State or Federal law requiring availability for work or active work search to UCFE-EEP claims, including weeks claimed during which the excepted employee performed no excepted services because of annual or sick leave. UCFE-EEP benefit eligibility will be determined in accordance with UCFE/UI requirements defining total unemployment and deductible earnings with respect to any services other than excepted Federal service performed by an excepted employee during a week claimed since Section 312 provides only that excepted service is treated as being totally unemployed. The pension deduction provisions of State law applies to benefits payable under the UCFE-EEP. Section 312 prohibits the application of any State or Federal law requiring an unpaid waiting week or period as a condition to receiving compensation for a week claimed by an excepted employee. UCFE-EEP Implementation Instructions Based on the Department's Interpretation of Section 312 of P.L. 102-94: Operating procedures to implement the requirements of Section 312 of P.L. 102-94 as prescribed by the Department are set forth below. UCFE-EEP Claims Filing Procedures: Most excepted employees will be performing full-time excepted services, during the weeks involved in the furlough period. Since most excepted employees will be working during the normal workday, SESAs should utilize methods for filing claims that will allow an excepted employee to remain at his/her job site. If a State agency waives regular reporting provisions with respect to excepted employees, no issue will arise with respect to 20 CFR 609.9. Initial Claims: New: When a UCFE-EEP claim is filed, the State agency will issue a UCFE- EEP monetary determination based on all employment and wages during the base period applicable to the claim, without regard to separate monetary entitlement under any State or Federal law, including UCFE. Monetary Entitlement: Excepted Employee has Sufficient Base Period Wages to Qualify. Monetary entitlement for UCFE-EEP claims will be determined by the State in which the excepted employee's official duty station is located or deemed located, based on all base period employment covered under any State or Federal law to establish the weekly benefit applicable to the UCFE-EEP claim. The Federal agency that designates the individual as an excepted employee has been instructed to furnish the State agency, of the State in which the excepted employee's official duty Station is located or deemed located, with the excepted employee's name, social security number, annual Federal salary, base period employment and wage information, home address, and effective date of excepted designation, within the first week of the Federal agency furlough, in accordance with the format and procedures established with the State agency prior to the beginning of such furlough. In the event of a delay of submittal of required information by such Federal agency or if it is deemed to be more expeditious, the SESA may utilize an affidavit to determine entitlement as outlined in ET Handbook 391, Chapter XIII, page XIII-2. To obtain information pertaining to employment and wages covered under another State's law, the State agency should follow its regular procedures to obtain information pertaining to such wages, including using the Request for Wage Transfer procedures (TC-IB4) (or the Interstate Inquiry, IBIQ, via the ICON). However, if the TC-IB4 is used, such use must not interfere with the processing of a regular claim and the employment and wages must be returned as unused. Excepted Employee has Insufficient Base Period Wages to Qualify: If the excepted employee has insufficient employment and wages in the base period to qualify, the State agency will prorate the individual's annual salary, as reported by the Federal agency that designated the individual as a Federal excepted employee, in terms of quarters or weeks of wages in the base period, as appropriate, and issue a monetary determination, accordingly. In addition, the excepted worker's most recent earnings and leave statement will reflect the excepted employee's annual and weekly salary and may be utilized for the projection utilizing the affidavit procedure. UCFE-EEP Weeks Claimed: When an employee is designated as an excepted employee, even for a portion of a week, such individual shall be determined eligible for UCFE-EEP for the entire week. This includes excepted employees who may be on leave during an entire week or portion thereof. Overpayments: Should an appropriation or continuing resolution occur that retroactively provides for the payment of salary to excepted employees, State and Federal laws governing overpayments will need to be applied to weeks paid under the UCFE-EEP program (20 CFR 609.11). Relationship to Other Programs: Eligibility for UCFE-EEP has no effect on unemployment compensation payable under any other State or Federal law. Benefits under this program are payable only to an excepted employee. If an excepted employee's status changes for any week during the furlough period, UCFE-EEP benefits are not payable and the individual must establish eligibility under the regular requirements for such week. Instructions for Reporting UCFE-EEP Transactions on Form ETA 2112: Advances and expenditures under the Excepted Employee Program are to be reported on the ETA 2112 in the same manner as transactions for the regular UCFE program. Drawdowns: On line 23, include in columns C and E, amounts which have been received as advances or reimbursements from the Federal Employees Compensation Account (FECA) for payment of benefits to Federal civilians under provisions of the UCFE-EEP. Disbursements: On line 43, include in columns C and F, net benefit payments made to Federal civilians under the UCFE-EEP with funds received from the FECA. Fiscal Requirements: All UCFE-EEP paid to an excepted employee during the furlough period will be billed to the Federal agency placing the individual in excepted employee status. Administrative costs for the workload associated with UCFE-EEP claims will be paid from contingency funds at the Fiscal Year 1996 allocated MPU level. Reporting Instructions: While counts of UCFE-EEP claims will be incorporated in the existing UCFE reporting, separate counts for three items of data are required to track the UCFE-EEP claimants. Separate counts should be reported weekly on: (a) the number of individuals who file new and additional initial claims for UCFE-EEP benefits; (b) the number of weeks of UCFE-EEP benefits that were compensated during the report week; and (c) the amount of UCFE-EEP benefits paid for those weeks. Because this should be a temporary situation, this data is to be reported electronically on the Quick Response Report. The Quick Response Report is a blank report found in the UI Required Reports (UIRR) electronic entry system. Once in the UIRR system, "Access Reports" should be chosen, followed by "Special Programs" and then "Quick Response Report". This is a blank report where 12 unlabeled items may be reported. Items 1 through 3 are already being used for Self Employment data reporting in those few States which have that program. Therefore, items 6, 7 and 8 will be used for UCFE-Excepted Employee claimant data reporting. Fill in the report date item using the Saturday week ending date of the week in which the activity occurred. Report in item 6 the total number of initial claims, both new and additional, filed by UCFE-EEP claimants during the report week. Report in item 7 the total number of weeks compensated for UCFE-EEP claimants during the report week. Report in item 8 the total amount of benefits paid for the weeks reported in item 7. Please note in comments that the data is for UCFE-EEP claimants. No edits are available on the Quick Response Report. This report will be due the Friday following the week in which the activity took place. Reporting will continue as long as there is activity. These reporting requirements have been submitted to the Office of Management and Budget (OMB) for approval under the Paperwork Reduction Act of 1995. States are not required to report until that approval is received. When the approval is received, States will be notified and provided the OMB approval number and expiration date. Action Required: Department of Labor: The Department of Labor has instructed affected Federal agencies, directly and through the Office of Personnel Management (OPM), to furnish SESAs with the list of each agency's excepted employees, including the employee's home address, Social Security Number, annual Federal salary rate, effective date of designation, and base period qualifying wage and employment information. Also, Federal agencies are being instructed to furnish an on-going list of employee changes to and from excepted employee status if applicable. Once the State agency has been provided with all of the information pertaining to an excepted employee, the Federal agency will furnish only the pertinent information for changes. In addition, Federal agencies are being advised to establish a liaison person(s) to work with each SESA in administering the UCFE program for excepted workers. This may be the same person already assigned UCFE program liaison responsibilities. To the extent possible, the Department of Labor National Office and Regional Offices will work with the affected Federal agencies to provide information to the SESAs that will expedite and administratively ease the establishment of UCFE-EEP by the SESAs. State Agencies: ESA Administrators shall: (1) Provide the above guidance in this UIPL to appropriate staff. (2) Ensure that appropriate staff perform all actions necessary to provide for the proper payment of UCFE-EEP to excepted employees for a program that could begin as early as January 27, 1996. This will include-- (A) When contacted by the Federal agency liaison, coordinating with such individual(s) actions necessary to receive the information, described in section a. above and any other actions determined necessary by the State agency, that will enable UCFE-EEP claims to be processed. The claims filing procedures that excepted employees are to follow should also be explained to the Federal agency; (B) Establishing UCFE-EEP claims for excepted employees in a prompt manner, minimizing any in-person reporting by such employees. For example, the State could send appropriate claims forms to individuals identified by the Federal agency as excepted employees in order for such individuals to file claims; (C) Promptly determining monetary eligibility for UCFE-EEP claims based on base period qualifying employment and earnings or the annual salary figure supplied by the Federal agency and/or the earnings and leave statement furnished by the applicant through the use of the ES-935 affidavit process in the absence of base period wages reported by the Federal agency; (D) Making prompt payment of UCFE-EEP benefits to excepted employees including payment for what would otherwise be a waiting period; (E) Developing any other procedures with Federal agencies that will ease administration of this special program; (F) Adhering to the fiscal guidelines set forth in this document and furnishing required reports in a timely manner.

References: The National Voter Registration Act of 1993, P.L. 103-31; Sections 302(a), 303(a)(8), 303(a)(9), and 901(c)(1)(A)(i) of the Social Security Act (SSA); the Reed Act (Section 903(c), SSA); the W-P Act, 29 U.S.C. Section 49; and OMB Circular A-87. Background: The NVRA is designed to increase the number of eligible citizens who register to vote in elections for Federal office by means of expanding the number of forums which provide voter registration services. Section 7 of the NVRA provides for specific voter registration agencies. Under Section 7(a)(2), States must designate as voter registration agencies all offices that provide public assistance (i.e., welfare) and all offices that provide State-funded programs primarily engaged in serving persons with disabilities. Section 7(a)(3) provides for other voter registration agencies, in relevant part, as follows: In addition to voter registration agencies designated under paragraph (2), each State shall designate other offices within the State as voter registration agencies. (B) Voter registration agencies designated under subparagraph (A) may include--(i) State or local government offices such as public libraries, public schools, . . . unemployment compensation offices, and offices not described in paragraph (2)(B) that provide services to persons with disabilities. [Emphasis added.] Thus, Section 7(a)(3) of the NVRA permits, but does not mandate, States to designate State UC offices as voter registration agencies. (See paragraphs 4b and 5b of this GAL for discussion of the designation of ES offices as voter registration agencies.) Concerns have been raised by Federal and State officials and public interest organizations about whether Federal funding would be available for voter registration activities in State UC and ES offices. This issuance addresses this question. Applicable Sections of the Law: SSA. Title III, SSA, governs the use of Federal grant funds for the administration of the unemployment compensation programs by the States. Section 302(a), SSA, addresses the uses of UC granted funds as follows: The Secretary of Labor shall from time to time certify to the Secretary of the Treasury for payment to each State which has an unemployment compensation law approved by the Secretary of Labor under the Federal Unemployment Tax Act, such amounts as the Secretary of Labor determines to be necessary for the proper and efficient administration of such law during the fiscal year for which such payment is to be made. Section 303(a)(8), SSA, requires--the expenditure of all moneys received pursuant to section 302 of this title solely for the purposes and in the amounts found necessary by the Secretary of Labor for the proper and efficient administration of such State law. Section 303(a)(9), SSA, requires--. . . the replacement, within a reasonable time, of any moneys received pursuant to section 302 of this title, which, because of any action or contingency, have been lost or have been expended for purposes other than, or in amounts in excess of, those found necessary by the Secretary of Labor for the proper administration of such State law. Section 901(c)(1), SSA, authorizes to be made available for expenditure out of the employment security administration account, for each fiscal year--(A) such amounts . . . as the Congress may deem appropriate for the purpose of--(i) assisting the States in the administration of their unemployment compensation laws as provided in title III (including administration pursuant to agreements under any Federal unemployment compensation law). (ii) the establishment and maintenance of systems of public employment offices in accordance with the Act of June 6, 1933, as amended (29 U.S.C., secs. 49-49n) . . . . Reed Act and W-P Act Funds: SESAs include both UC and public ES offices. W-P Act grants are distinct from SSA Title III grants. While the W-P Act does not have limitations on the expenditure of administrative grant funds as specific as those imposed on UC administrative grants, these grants are subject to the same type of restrictions discussed above in connection with UC grants. First, as with Title III grants, W-P Act funds are subject to the restriction of 31 U.S.C. Section 1301(a) that "appropriations shall be applied only to the objects for which the appropriations were made except as otherwise provided by law." Thus, W-P Act funds may be used only for the purposes expressly authorized by law. Second, the limitations of OMB Circular A-87, which addresses cost principles for State and local governments, apply to W-P monies as well as Title III grants. In particular, Attachment A, Section C.1.a. of the Circular requires that to be allowable under a grant, a cost must be necessary for the proper and efficient performance and administration of Federal awards. Interpretation and Discussion: SSA. No chargeable costs against the Title III grant are permitted to fund voter registration activities. Although Congress authorized States to designate UC offices as voter registration agencies, this authorization was not accompanied by an amendment to the Title III, SSA, prohibitions against expenditure of grant monies for purposes other than the proper and efficient administration of the State's UC law. Thus, Title III grant monies may not be used to carry out the purposes of the NVRA. However, in the event a State chooses to designate a State UC office as a voter registration agency, the Department has determined that it will not disallow costs or raise conformity or substantial compliance issues under Sections 303(a)(1), 303(a)(8), and 303(a)(9), SSA, unless the designation of such an agency or the performance of such voter registration functions results in any additional charges to UC grant funds or otherwise impedes the operations of that UC office. Therefore, some voter registration activities may be conducted in State UC offices to the extent that the States neither incur additional chargeable costs in the use of existing UC-funded resources nor allow such activities to compromise UC operations. To the extent that additional costs are incurred (even if they appear to be deminimis costs), States must fund such additional costs from non-UC administrative grant sources. Failure to do so could result in disallowed costs and other appropriate remedies. W-P Act and Reed Act Funds: States may, under the limitations described below, use Reed Act and Section 7(a) and (b) W-P Act funds to carry out the purposes of the NVRA in SESAs designated as voter registration agencies. (1) W-P Funds. Currently W-P funds, i.e., ES grants, are used for a wide variety of activities all of which in some way relate to the basic labor exchange functions of an ES agency. The W-P Act authorizes the appropriation of funds "necessary to carry out the purposes of this Act." Since the purposes of the Act are "to promote the establishment and maintenance of a national system of public employment offices . . .", 29 U.S.C. Section 49, (emphasis added), funds under the Act may be used to fund ES office administrative expenses. States may, under the NVRA, designate any of a variety of public offices to conduct voter registration activities, including ES offices statewide. The Department has determined that, if an ES office is designated under the NVRA, then voter registration is a legitimate ES administrative expense chargeable to ES grants. This position is consistent with Congress' recognition in the NVRA that voter registration is an important Federal priority and that Federal agencies are, therefore, to cooperate with the States as much as possible regarding the designation of voter registration agencies. Further support for this position is found in Section 7(a)(3)(B) of the W-P Act authorizing SESAs to use ES grant monies for "developing linkages between services funded under this Act and related Federal or State legislation." Congress' purpose in enacting the NVRA was to require States to make access to voter registration widely available, thus providing sufficient linkage for this purpose. Therefore, if a State elects to use SESAs for voter registration activities, the U.S. Department of Labor permits the use of Section 7(a) and (b) W-P Act funds for voter registration activities. However, SESAs are not required to use ES grants for voter registration activities. If ES grants are used, SESAs shall act prudently in using such resources to ensure the integrity of the States' basic labor exchange function. (2) Reed Act Funds. Section 903(c)(2), SSA, provides that "a State may, pursuant to a specific appropriation made by the legislative body of the State, use money withdrawn from its account in the payment of expenses incurred by it for the administration of its unemployment compensation law and public employment offices . . . ." Under the SSA, voter registration activities are not necessary for the proper and efficient administration of the State's UC law. Since, however, Reed Act monies may be used to pay expenses of administration of public employment offices, if an activity is fundable under the W-P Act, then it may be paid for from Reed Act monies. Therefore, Reed Act monies may be used to fund voter registration costs under the same circumstances as W-P funds. As discussed above, these activities are fundable under the W-P Act. Since these activities are allowable costs under the W-P Act, if ES offices are designated as voter registration agencies, voter registration activities may be funded with Reed Act monies (if any are available). States are reminded that if Reed Act funds are used for administrative costs such as voter registration activities, the expenditure is not recoverable as is the case when the funds are used to purchase a building and amortized using UC or W-P grant funds. (3) Summary. In accordance with the Department's interpretation and consistent with W-P requirements, SESAs may use ES grants or Reed Act funds for voter registration activities in the following situations, but are not limited to these situations: (1) where voter registration forms and collection points are provided at an ES office, (2) where voter registration tables are set up in the lobby areas of the ES offices, or (3) where ES staff are available to assist voter registration activities. Further, if UC staff in an UC office co-located with an ES office, were to assist voter registration activities which created chargeable costs, such costs may be chargeable to the ES grant or the Reed Act appropriation. In no circumstances may additional costs be charged to the UC grant. However, the Department of Labor will not disallow costs or raise substantial compliance issues unless the designation of UC offices or the performance of voter registration activities results in additional charges to UC grant funds or otherwise impedes the operation of such offices. Action Required: SESAs in States where the public employment service offices and UC offices have been designated as voter registration agencies are requested to review existing and proposed procedures to ensure that any expenditure of funds for such activities are consistent with the guidance provided in this issuance.

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