Reference: Training and Employment Guidance Letter (TEGL) No. 7-98 dated October 29, 1998. Background: TEGL No. 7-98 informed States of the availability of Title III demonstration funds for incumbent worker system building at the State level for PY 1998. Authorization effective July 1, 1998, allows for the use of Secretary=s JTPA Title III Discretionary funds under demonstration authority for incumbent worker training. The projects funded by the Department would be grants with a maximum period of performance of 12 months, not to exceed $50,000 each, with a total not to exceed $2,600,000. Submission of State Applications: It has come to the attention of the National Office that additional time is needed by the States to prepare applications for these funds. States= Incumbent Worker System Building Demonstration grant applications should be submitted as soon as possible, but not later than December 31, 1998, an extension of the previous deadline of December 15, 1998. The applications, including an SF 424, Application for Federal Assistance and SF 424A, Budget Information form, should be submitted to the appropriate Regional Office, with a copy sent at the same time to: Janice E. Perry, Grant Officer Attn: Incumbent Worker System Building Demonstration Plan Employment and Training Administration U.S. Department of Labor, Room S4203 200 Constitution Avenue, N.W. Washington, D.C. 20210.

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Reference: TEGL No. 6-98, dated September 21, 1998. Background: TEGL No. 6-98 explains the amended eligibility criteria for custodial and non-custodial parents under the 70 percent targeted portion of the WtW program. Questions arose concerning the eligibility of custodial caretaker relatives who receive TANF benefits for themselves and on behalf of the children in their custody. While the number of these cases nationwide is relatively small, we wish to clarify that custodial caretaker relatives, who are TANF recipients, are subject to the same TANF participation requirements, time limitations and other requirements under section 403(a)(5)(C)(ii) as other TANF recipients and, therefore, may be eligible for the WtW program. Clarification of the Interpretation of the Technical Amendment to the Eligibility Criteria for Custodial Caretaker Relatives: On July 16, 1998, President Clinton signed into law the Child Support Performance and Incentive Act of 1998, which included a technical amendment to Section 403(a)(5)(C)(ii) of the Social Security Act regarding the eligibility of non-custodial parents under the 70 percent targeted portion of the WtW program. Pursuant to the technical amendment, the eligibility criteria have been changed so that the individual to be served in a WtW program must be the one who meets the eligibility requirements, whether the individual is the TANF recipient (which includes the custodial parent or the custodial caretaker relative) or a non-custodial parent. The purpose of this letter is to clarify that the requirements for the non-custodial parent are the same whether the TANF recipient is the custodial parent or a custodial caretaker relative. Effective Date: These revised eligibility requirements are effective as of July 16, 1998. Action: States should provide this guidance to appropriate staff.

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Authorities and References: Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 (Pub. L. 104-193) and Balanced Budget Act of 1997 (Pub. L. 105-33) amending Title IV-A of the Social Security Act; Transportation Equity Act for the 21st century (TEA-21) (Pub. L. 105-178); Child Support Performance and Incentive Act of 1998 (Pub. L. 105-200); TEA-21 Restoration Act (Pub. L. 105-206); Temporary Assistance for Needy Families (TANF) Proposed Rule (62 Fed. Reg. 62124 (proposed Nov. 20, 1997)); Welfare-to-Work Grants Interim Final Rule, 20 CFR Part 645 (62 Fed. Reg. 61588 (Nov. 18, 1997)); TANF Policy Announcement No. TANF-ACF-PA-97-1, dated January 31, 1997; Training and Employment Guidance Letter (TEGL) 9-97. Recissions: The attached guidance paper was originally issued on May 8, 1998. Since then two major pieces of legislation have passed that significantly altered the programs described in the original guidance document. In order for this revised guidance to be most useful, it is being reissued in its entirety as a new TEGL, rescinding TEGL 9-97. Background: The guidance, intended to augment the current statutory and regulatory provisions, has been revised to incorporate legislative changes since the initial issuance. In particular, the Job Access and Reverse Commute (Job Access) program was created by Congress to provide new resources to address transportation issues for low-income people. The revised guidance paper also clarifies policy issues that have come to light in the areas of: the definition of assistance under the TANF program, data reporting under TANF and the Welfare-to- Work (WtW) program, and appropriate cost principles for federally-funded projects. Information: The new Job Access program creates opportunities at the local level for communities to leverage existing resources to help solve transportation issues for low income neighborhoods. The revised guidance describes, in detail, a number of limitations on how these funds may be appropriately used in cost sharing arrangements. State and local employment and training providers should review the example set forth on page 13 regarding how a jointly funded transportation project could operate. Action: Please share the joint guidance paper, as well as the joint Secretarial memorandum, with State and local staff who are involved in providing transportation services, to welfare recipients. This guidance is being issued simultaneously through the policy guidance systems of the three agencies involved.

References: The Trade Act of 1974, as amended, TAA program regulations at 20 CFR Part 617, and GAL 5-98. Background: The Employment and Training Administration (ETA) has implemented a new reporting system that will track program performance and participant outcomes for the TAA and NAFTA-TAA programs. States have been requested to prepare and submit implementation plans. This directive provides detailed instructions to the States on preparing and submitting quarterly reports under the new system to Social Policy Research Associates (SPR), the contractor that will operate the data system. OMB Approval: On June 19, 1998, the new reporting system was approved by the Office of Management and Budget (OMB). The OMB control number is 1205-0392. OMB approval expires on June 30, 2001. Technical Support: The Office of Trade Adjustment Assistance (OTAA) has provided technical training on the new reporting system to all Regional and State staff who administer the TAA and NAFTA-TAA programs. OTAA, the Regional Offices, and SPR will continue to provide any necessary technical support to the States. Action Required: State Trade Act Coordinators (or the individuals assigned responsibility for submitting the reports in the State implementation plans) are requested to prepare and submit quarterly reports according to the instructions attached to this directive. The first quarterly report is to cover the period from October 1, 1998 through December 31, 1998, and must be submitted to SPR no later that February 15, 1999. Reports are required for each quarter thereafter; all reports are due no later than 45 days after the end of the reporting quarter.

OMB Approval: These reporting instructions have been approved under the Paperwork Reduction Act of 1995, under OMB numbers 1205-0187, 1205-0268, 1205-0359, 1205-0172, and 1205- 0029, respectively. OMB numbers 1205-0187, 1205-0268, and 1205-0359 have been approved through October 31, 2001, OMB 1205-0172 through September 2001, and OMB 1205-0029 through November 30, 2001. NOTE: Persons are not required to respond to this collection of information unless it displays a currently valid OMB control number. Burden Disclosure: Public reporting burden for these collections of information is estimated to average three hours per response for the ETA 9000, Internal Fraud Activities (OMB #1205-0187), one hour per response for ETA 9016, Alien Claims Activity Report (OMB #1205-0268), four and one half hours per response for the Benefits, Timeliness, and Quality (BTQ) Review System (OMB #1205- 0359), two and one half hours per response for ETA- 5130, Benefit Appeals Report (OMB #1205-0172), and four hours per response for ETA 586, Interstate Arrangement for Combining Employment and Wages (OMB #1205-0029). These hours include the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Respondent=s obligation to reply is mandatory (SSA, Sec. 303(a)(6)). Send comments regarding these burden estimates or any other aspect of these collections of information, including suggestions for reducing these burdens, to the U.S. Department of Labor, Unemployment Insurance Service, Room S-4231, Washington, D.C. 20210.

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