UIPL 11-23 Change 2.pdf

ETA Advisory File Text

EMPLOYMEN T AND TRAINING ADMINISTRATION ADV ISORY SYSTEM U.S. DEPARTMENT OF LABOR Washington D.C. 20210 CLASS IFICATION Unemployment Insurance CORRESPONDENCE SYMBOL OUI DPM DATE January 13 2025 RESCISSIONS None EXPIRATION DATE Continuing ADVISORY UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 11-23 Change 2 TO STATE WORKFORCE AGENCIES FROM JOS JAVIER RODR GUEZ Assistant Secretary SUBJECT National Identity ID Verification Offering NIDVO Announcing a Deadline to Implement NIDVO Services and Providing Additional Participation Instructions 1.Purpose. To advise states that to remain eligible for participation in NIDVO and have the U.S. Department of Labor Department directly cover at least two years of transaction costs subject to funding availability states must implement one or both of the NIDVO services no later than December 31 2025. To successfully deploy prior to this deadline as described in more detail below a state should begin the implementation process no later than October 20 2025. 2.Action Requested. The Department s Employment and Training Administration ETA requests that State Workforce Agency SWA Administrators provide information in this Unemployment Insurance Program Letter UIPL to appropriate program staff. 3.Summary and Background. a.Summary The Department s NIDVO initiative provides states with access to online ID verification services through the U.S. General Services Administration s GSA Login.gov and in-person ID verification services through the U.S. Postal Service USPS . Such services are intended to be part of a state s multi-layered approach to fraud prevention and detection providing access to government-operated ID verification services which can supplement the state s existing tools. As described in UIPL No. 11-23 Change 1 state s must have entered into a data sharing agreement DSA with the Department by June 28 2024 to participate in one or both of the NIDVO services and have the Department directly cover at least two years of transaction costs. 2 To remain eligible for participation in NIDVO and have the Department directly cover at least two years of transaction costs states must implement one or both of the NIDVO services no later than December 31 2025. To successfully deploy prior to this deadline as described in more detail below a state should begin the implementation process no later than October 20 2025. This deadline is necessary to ensure the states have identity proofing solutions in place as soon as possible and for the Department to determine the future costs of the NIDVO program. The Department also reiterates that it is critical for states to openly communicate and provide robust feedback to the Department on their participation experience and the Department has outlined this partnership and process within the participation agreements described below. This UIPL also provides additional information regarding the individual-level data that participating states are required to report as part of this effort and announces changes to state and Department roles and responsibilities. The Department is also implementing a two-year Data Sharing Agreement DSA and Partnership Addendum PA cycle which will reduce the administrative burden on both the Department and the states from having to execute the DSA and PA each year. b. Background On March 11 2021 the President signed American Rescue Plan Act ARPA into law Public Law Pub. L. 117-2 . Section 9032 ARPA amended the Coronavirus Aid Relief and Economic Security CARES Act by creating Section 2118 which provided a 2 000 000 000 appropriation to the Secretary of Labor Secretary to 1 detect and prevent fraud 2 promote equitable access and 3 ensure timely payment of benefits to eligible workers with respect to unemployment compensation UC programs. These are commonly referred to as ARPA s three pillars. ARPA describes allowable uses of these funds including awarding grants for such purposes to states and territories administering UC programs and for systemwide infrastructure investment and development. The Fiscal Responsibility Act FRA Pub. L. 118-5 signed into law on June 3 2023 rescinded 1 000 000 000 of the unobligated ARPA funds. On July 13 2023 the Department issued UIPL No. 11-23 announcing funding available under the ARPA to make available to states government-operated ID verification services developed by GSA to verify identities online through Login.gov and by USPS to verify identities in-person at participating USPS retail locations nationwide. This partnership between the Department and the service providers will further inform whether there is a need for standardized mechanisms for ID verification within the UI system as a potential long-term federally supported sustainable public offering to states. On April 29 2024 the Department issued UIPL 11-23 Change 1 that announced it will cover transaction costs for identity verification for participating states for at least the later of two years after the date the state deploys NIDVO or two years after the date of issuance of that UIPL subject to the availability of funding and all applicable agreements being executed. If there is sufficient funding available the Department may cover transaction costs for a longer period 3 for all states that have deployed or will deploy NIDVO pursuant to the guidance in the UIPL. As of November 30 2024 a total of 19 states are currently using one or both services through NIDVO. 4. Deploying ID Verification Services through NIDVO. NIDVO is intended to be part of a state s multi-layered approach to fraud prevention and detection providing access to government-operated ID verification services which can supplement the state s other fraud controls and mitigating tools. As described in UIPL No. 11-23 Change 1 state s must have entered into a DSA with the Department by June 28 2024 to participate in one or both of the NIDVO services and have the Department directly cover at least two years of transaction costs subject to available funding. States must implement one or both of the NIDVO services no later than December 31 2025 to remain eligible for participation in NIDVO and have the Department directly cover at least two years of transaction costs. If the service is not deployed and used in the state by the deadline then the Department will not cover transaction cost for the NIDVO service. There are three stages that occur after signing the DSA and before deployment. 1 Policy Review PR ETA assesses whether the state is following the requisite due process requirements for ID verification services based on the state s answer to a 5- question Policy Review. 2 Partnership Addendum PA The state and Department execute a PA to the DSA which memorializes the specific requirements terms and obligations of the participating state and Department for participation in NIDVO. 3 IT Implementation The state partner works with the Department s Office of Chief Information Officer OCIO to conduct the necessary information technology IT implementation activities including development of a web page to refer individuals to the service. Included in the PA is the obligation for the state to report individual-level data to the Department as originally described in Section 4.c.iii. of UIPL No. 11-23 for the Department to assess the efficacy and equity of the offerings. Further instruction regarding the state s obligation to report individual-level data is provided below and will also be included in the PA. Additional updates to this and other elements of participation in NIDVO may be made through the DSA and PA process with participating states as negotiated and approved by the Department and state. The Department is also implementing a two-year DSA and PA cycle which will reduce the administrative burden on both the Department and the states from having to execute the DSA and PA each year. 4 a. States must implement one or both of the NIDVO services no later than December 31 2025. Based upon recent deployments with states currently participating in NIDVO the Department estimates that the Policy Review stage will generally take 14 calendar days and execution of the PA will occur consecutively and also generally take 14 calendar days amounting to a cumulative total of approximately four weeks. IT implementation can occur simultaneously with these two stages and can generally be completed within 4-6 weeks. i. Policy Review PR The PR process generally takes 14 calendar days. ii. Partnership Addendum PA o The PA process generally takes 14 calendar days. o This timeline starts after the Policy Review is complete. iii. IT Implementation o As noted above the IT Implementation generally takes 4-6 weeks to complete. o The timeline starts simultaneously with the PR process. This estimated timeline reflects timely correspondence between the Department and state. This timeline can be adjusted as needed contingent on state resources the pace of state engagement and the deadline outlined in this UIPL. To achieve deployment prior to the deadline stated above a state should begin the Policy Review and IT Implementation stages no later than October 20 2025. Should these stages require more time the Department will coordinate with the state to complete the processes as quickly as possible. The Department will only grant an extension if the state has completed the IT implementation and issue s are found during deployment to production. However the Department strongly encourages states to start the implementation process as soon as possible to mitigate the risks of unforeseen delay. b. Importance of Communication and Partnership during NIDVO Participation. The Department realizes that this is a new endeavor for the Department in providing these types of services to states in the administration of the UI program. Also because the process by which ID verification is conducted within the UI program continues to evolve and adapt it is critical for states to openly communicate and provide robust feedback to the Department on their participation experience. States must provide due process rights for all individuals including individuals who verify their identify through the NIDVO process. To meet this requirement and reduce administrative burdens that could be incurred by the state when deploying NIDVO the Department is committed to taking steps to work with states to ensure these requirements are met including working closely in partnership with the state to ensure that all due process requirements explained in current and future guidance are 5 implemented within appropriate timelines. To meet these goals it is essential that states work in partnership with the Department to address issues and share information regarding fraud to continue to strengthen the offering as fraud activity continues to evolve. This partnership and process has been memorialized via the PA. i. State Roles and Responsibilities. To ensure due process for individuals going through the NIDVO process the Department added the following language to the PA. If the Department or state UI agency identifies any ID verification compliance issues related to participation in the National ID Verification Offering before during or after the implementation of either or both login.gov or USPS the state will a Work in partnership with the Department to identify options to become compliant b Meet ID verification compliance with current and any future relevant guidance within 12 months of this executed Addendum or on a timeline agreed upon between the Department and the state and c Inform the Department about potential barriers to becoming compliant and or challenges encountered positive practices implemented as a result of becoming compliant. ii. Department Roles and Responsibilities. Building on the addition described above regarding State Roles and Responsibilities the Department also added the following language to the PA. Notify the state of any compliance issues identified related to participation in the National ID Verification Offering including sufficient detail documenting the issue s . a Collaborate with the state UI agency to assist in compliance as the project nears its deployment date and continue to serve as a strategic partner and collaborator in ensuring the state UI agency takes the necessary actions to meet the documentation requirements detailed in UIPL No. 16-21 and future guidance published by ETA. c. Reporting Individual-Level Data in Accordance with the Partnership Addendum. As a condition to participate in the NIDVO services and as specified in the PA the state must disclose certain data to the Department. The Department will store that data for the purpose of assessing the effectiveness and equity of ID verification at the point of delivery. Below are additional instructions about the list of required individual-level data elements. Additionally states must link the state-provided elements with the result codes received back from the Department to Login.gov and USPS as applicable . 6 i. Individuals to be Reported and Frequency of Data Submission. The state must report all individuals referred to the NIDVO service s in the quarter in which they are referred by the state. If an individual completes a service in the quarter following the quarter in which the individual was referred for example referral to the service occurs on September 30 th and verification is completed on October 3 rd then the state must also report this individual in the subsequent quarterly submission including the updated verification result using the same State Specific Unique Identifier in each case. ii. State-provided Elements. In addition to the individual-level data elements described in Section 4.c.iii.B. of UIPL No. 11-23 the state must also report the Date of Referral by State which is defined as the date the transaction was processed via NIDVO by USPS or Login.gov. iii. Linking State-provided Elements to Result Codes. By signing the PA the state agrees to match the state-provided data elements with certain data elements received back from the Department with respect to Login.gov and USPS where applicable. These additional result codes will only be returned for individuals who reached Identity Assurance Level 1 IAL 1 or ID verified status. 5. Inquiries. Please direct inquiries to the appropriate ETA Regional Office. 6. References. Division B Title I Section 24 of the Fiscal Responsibility Act of 2023 Pub. L. 118-5 American Rescue Plan Act of 2021 ARPA including Title IX Subtitle A Crisis Support for Unemployed Workers Pub. L. 117-2 UIPL No. 11-23 Change 1 Announcing an Extension of Period of Time that Funding will be Available to Cover Transaction Costs and Announcing the Establishment of a Deadline for States to Enter into Data Sharing Agreements DSAs for the National Identity Verification Offering NIDVO Established in Unemployment Insurance Program Letter UIPL No. 11-23 issued April 29 2024 https www.dol.gov agencies eta advisories uipl-11-23-change-1 and UIPL No. 11-23 Announcement of Grant Opportunities and National Identity ID Verification Offering under the American Rescue Plan Act ARPA issued July 13 2023 https www.dol.gov agencies eta advisories uipl-11-23. 7. Attachment s . N A.