Background: States finance three different types of unem-ployment compensation (UC): regular, extended and additional benefits. Reporting for AB differs, in some respects, from regular and extended benefits. This Reports and Analysis Letter is issued to ensure that States are properly identifying and reporting AB. Definition of AB: Definitions for regular, extended and additional benefits are found in the extended benefit (EB) law (the Federal-State Extended Unemployment Compensation Act of 1970 (EUCA)) and the EB regulations at 20 CFR Part 615. Regular benefits are those benefits normally payable under a State law, including UCFE and UCX. Extended benefits (EB) are those benefits payable under provisions of State law consistent with the EUCA and the EB regulations. AB or "additional compensation," is defined in Section 205(4), EUCA, as: compensation payable to exhaustees by reason of conditions of high unemployment or by reason of other special factors. "Compensation" is defined in Section 3306(h), FUTA, as "cash benefits payable to individuals with respect to their unemploy- ment." The EB regulations at 20 C.F.R. 615.5(a) define the term "exhaustee" as, in pertinent part, an individual who: (1) Has received ... all of the regular compensation that was payable under the applicable State law ... for the applicable benefit year .... The EB regulations at 20 C.F.R. 615.5(2)(f) also provides a definition of AB. This definition provides that AB is: compensation totally financed by a State and payable under a State [UC] law by reason of conditions of high unemployment or by reason of other special factors ... Section 1.E.2 of the UI Reports Handbook, ET Handbook No. 401, contains a similar definition. In sum, AB is: (1) a cash benefit paid to individuals with respect to their unemployment; (2) paid to individuals who have received all regular benefits for the applicable benefit year; (3) totally financed by a State; and (4) paid due to conditions of high unemployment or "other special factors." Examples of AB include, but are not limited to, the following: -- Programs extending duration of benefits for all exhaus- tees. -- Programs extending duration for special groups of exhaus- tees such as workers in a specific industry, factory or locality. -- Programs extending duration for individuals in approved training. -- Programs extending duration for individuals unemployed due to a disaster. As long as the payments are made with respect to the individual's unemployment, the source of funding for the payment is not relevant. Therefore, payments of AB may be made from a State's unemployment fund or another State fund. In most States, the individual's additional entitlement is determined after the individual has actually exhausted regular benefits. In other States the individual's additional entitlement is determined at the time of filing a first claim for regular benefits. In both cases, the additional entitlement is considered to be AB since it becomes payable only after the individual has exhausted regular benefits. Reporting Instructions for AB: a. Workload Reports. States are reimbursed for adminis- trative costs for workload under AB programs. To that end, AB workload is to be reported on the UI-3 report. Instructions for the UI-3 report are contained in the annual Program and Budget Plan, ET Handbook No. 336. b. Statistical Reports. Programmatic data on AB is to be reported only on the ETA 539 report. Effective with reports for the period beginning October 1, 1994, AB data should not be reported on, or in any way be included in, any version of the following statistical reports: ETA 5159, ETA 207, ETA 218, and 5130. Instructions on removing AB counts from the ETA 207 and the ETA 5130, the only of the above reports currently requiring the inclusion of AB, will be issued under separate cover. Concerning the 539 report, AB weeks claimed will be reported as required by Sections 1.F.13 and 14 of the UI Reports Handbook, ET Handbook No. 401, under the "ABT" and "ABUI" items. c. Fund Reports. AB paid from the State's unemployment fund is to be reported as a disbursement on line 45 ("Other") of the ETA 2112 report. AB paid from a State fund which is not the unemployment fund is to be reported as a deposit on either line 24 or 25 ("From Other Sources") and as a disbursement on line 45 ("Other"). Amounts drawn down from the State's account in the Unemployment Trust Fund for the payment of AB are to be included in the ETA 8401 and 8413 reports. Action Required: Please inform appropriate staff of these instructions.

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Background. Mr. Dowd brings with him a sensitivity and a wealth of experience covering a wide variety of situations related to the Department's Indian and Native American programs. He has served in a numerous capacities, including both a local program operator and an advisory committee member. In addition, he has volunteered his time to work with many other grantees to improve their operations and in the conduct of the grantees annual meeting. Mr. Dowd will join the Department on or about August 1, 1994. He is currently completing work on a contract that he previously entered into in another capacity. We know you will join us in welcoming Mr. Dowd to this program. As Assistant Secretary Ross indicated in the satellite downlink at the 15th National Indian and Native American Employment and Training Conference, Mr. Dowd, as the new Chief, DINAP, will have direct access to his office on policy issues. The DINAP organization will continue to be housed within the Office of Special Targeted Programs. We look forward to working with Mr. Dowd as the Department continues to build upon present efforts in establishing a partnership which allows us to jointly serve our customers, Indians and Native Americans who need the assistance which our programs offer. Inquiries. Questions should be directed to your Federal Representative (202) 219-5504.

References. DINAP Bulletin No. 92-24; A Guide to Smartlink 11, Enclosure (1), Sub-account Structure and Program Year and Title Codes. Background. Within the next few days, most section 401 grantees will be receiving their signed grant documents and Notices of Obligation (NOO's), which will authorize them to operate title IV-A programs for PY 1994. Most eligible grantees have already received signed Summer Plans and NOO's allowing them to operate title 11-B programs for the summer of 1994. Grantees who use the PMS to draw down their Job Training Partnership Act (JTPA) funds will need to use the following sub-account codes to draw down the appropriate funds. Grantees who continue to obtain their funds through the SF-270, Request for Advance or Reimbursement, will not be affected by this bulletin. Sub-account Code Instructions. The new sub-account code for PY 1994 title IV-A funds will be 5K (see attachment). As indicated last year in DINAP Bulletin No. 92-24, the subaccount code required to access title 11-B funds for the summer of 1994 is 3A. These sub-accounts correspond to the planning funding document (printout) transmitted to all grantees with Change 1 to DINAP Bulletin No. 93-15. All previously issued sub-account codes remain the same, including the "split" subaccounts for last summer's (1993) money. As a reminder, the subaccount code for PY 1992 title 11-B funds is lu, and the subaccount code for Fy 1993 title 11-B funds is 2W. Grantees are reminded that, when drawing down funds under either title, the oldest remaining funds should be drawn down first, so that as many subaccounts as possible can be "zeroed out." The only exception to this rule is when a grantee has been officially notified that it has exceeded the carry-in limit for a given funding period and, as a result, a specified amount previously allocated is no longer available to the program. In such cases, the Grant Officer will issue further instructions on a case-by-case basis. Action Required. Section 401 Indian and Native American grantees are requested to follow the instructions contained in section 4, above. Inquiries. Questions should be addressed to Barbara Manning on (202) 219-7798 or Greg Gross on (202) 219-7509.

References: Section 106 of H.R. 5260, Section 231(a)(2) of the Trade Act of 1974, 5 U.S.C. 8521(a)(1), Section 301 of P. L. 102-164, 20 CFR 617.11(a)(3)(ii)(A) and (B), and GAL 3-92. Background: This document furnishes information concerning Section 106 of H.R. 5260 which amends Section 231(a)(2) of the Trade Act of 1974 and provides the Department's interpretation of the amendment as it affects the trade adjustment assistance (TAA) program. This document sets forth operating instructions of the Department of Labor to guide the States in implementing the amendment. The provisions in Section 106 of H.R. 5260, as interpreted by these instructions, supersede the prior provisions of Federal law, regulations at 20 CFR Part 617, and prior operating instructions issued by this Department to the extent that they are inconsistent with Section 106 of H.R. 5260 or these instructions. The instructions in this document are issued to the States and cooperating State agencies as guidance provided by the Department of Labor in its role as the principal in the TAA program. As agents of the United States, the States and cooperating State agencies may not vary from the operating instructions in this document (or any subsequent or supplemental operating instruction) without the prior approval of the Department of Labor. Therefore, pending the issuance of final regulations implementing this amendment, the operating instructions in this document (and any subsequent and supplemental operating instructions) shall constitute the controlling guidance for the States and the cooperating State agencies in implementing and administering the provisions of this TAA program amendment pursuant to the agreements between the States and Secretary of Labor under Section 239 of the Trade Act of 1974. The provisions of 20 CFR 617.52(c) shall apply to the carrying out of the instructions in this document and any subsequent or supplemental operating instructions. Section 106(a) of H.R. 5260 amended Section 231(a)(2) of the Trade Act of 1974 to provide that, in the case of a reservist called-up to active duty in a reserve status, provided such active duty is "Federal service" as defined in 5 U.S.C. 8521(a)(1), up to 26 weeks of such active duty may be counted as qualifying weeks for the purposes of Section 231(a)(2). Prior to the enactment of this amendment, weeks of active duty in the Armed Forces could not be used toward meeting the 26 weeks of employment trade readjustment allowance (TRA) qualifying requirement. Reservists who were employed in adversely affected employment prior to or at the time of their call-up to active duty may not be able to meet the 26- week TRA qualifying requirement on the basis of their work in adversely affected employment. Many reservists were called-up for participation in Operations Desert Shield and Desert Storm, and the period of call-up to active duty exceeded 6 months in many instances, thereby precluding their entitlement to TRA when they returned to their employer. The amendment in Section 106(a) provides for counting up to 26 weeks of active duty in a reserve status, for purposes of meeting the 26 weeks of employment TRA qualifying requirement. Section 106(b) of the H.R. 5260 provides that the TAA program amendment contained in Section 106 is effective for weeks beginning after August 1, 1990. This means that the TAA program amendment contained in Section 106 shall be effective for: (1) all TRA initial claims filed after the date of enactment; (2) prior TRA claims filed by reservists that were denied solely because they did not meet the requirements of Section 231(a)(2) of the Trade Act of 1974 as in effect prior to the enactment of this amendment; and (3) TRA initial claims of reservists who did not previously file a TRA claims because they did not meet the requirements of Section 231(a)(2) of the Trade Act of 1974 as in effect prior to the enactment of this amendment. The general rule is that State law is followed on procedural matters (i.e., claims filing, determinations and redeterminations) unless inconsistent with Federal law. Here, it would be inconsistent with Federal law to apply State time limitations on claims filing, determinations, and redeterminations. It is Congress's intent to cover Desert Shield and Desert Storm reservists under the amendment to Section 231(a)(2) of the Trade Act of 1974. The effective date of the amendment as provided in the language of Section 106 carries out the Congressional intent and clearly provides that this amendment is to have a retroactive application to the call-up of reservists for Desert Shield and Desert Storm. The only way to extend the application of this amendment to Desert Shield and Desert Storm reservists is to require States and cooperating State agencies to redetermine all TRA claims for claimants who were denied solely because they did not meet the requirements of Section 231(a)(2) of the Trade Act of 1974 as in effect prior to the enactment of this amendment, and to make determinations retroactively for those who did not qualify under prior law, but now do (or may) qualify under the amended law. Thus, this Federal law authority will ensure a uniform application of this amendment as intended by Congress. Further, States and cooperating State agencies will not apply State law time limits on filing claims to reservists who did not previously file TRA claims because they did not meet the requirements of Section 231(a)(2) of the Trade Act of 1974 as in effect prior to the enactment of this amendment. States and cooperating State agencies will utilize the definition of "Federal service" in 5 U.S.C. 8521(a)(1), effective with the enactment of P. L. 102-164, in issuing determinations, redeterminations, and decisions on appeals to implement the amendment to Section 231(a)(2) of the Trade Act of 1974 made by Section 106 of H.R. 5260. This means that a reservist must have been called-up to active duty in a reserve status for at least 90 continuous days in order for such active duty to be considered "Federal service." The States and cooperative State agencies will utilize this definition of "Federal service" even though it shall be applied to weeks before the effective date of the amendment to 5 U.S.C. 8521(a)(1) made by Section 301(b) of P. L. 102-164 (i.e., at least 90 continuous days instead of 180 continuous days of active duty in a reserve status). Such an application is consistent with congressional intent to cover Desert Shield and Desert Storm reservists under the amendment to Section 231(a)(2) of the Trade Act of 1974. Furthermore, this application is consistent with a literal reading of amended Section 231(a)(2)(D) of the Trade Act of 1974, which uses the present tense in expressing the requirement that "such active duty is 'Federal service' as defined in 5 U.S.C. 8521(a)(1)." In light of this literal language, the present 90-day provision may be, and is, used for all weeks before and after November 15, 1991. The amendment to Section 231(a)(2) of the Trade Act of 1974 does not require a revision to the existing State TAA program agreements. Amendment and Operating Instructions to Implement the Amendment: a. Section 106(a). AMENDED LAW: Section 106(a) amends Section 231(a)(2) of the Trade Act of 1974 adding a new subparagraph (D) to the categories which are considered a week of adversely affected employment at wages of $30 or more a week in order to qualify for TRA. The new subparagraph (D) provides that any week a worker is on call-up for active duty in a reserve status, provided that such active duty is "Federal service" as defined in 5 U.S.C. 8521(a)(1), shall constitute a week in meeting the TRA qualifying requirements of Section 231(a)(2) of the Trade Act of 1974. Section 106(a) also clarifies that not more than 26 weeks described in subparagraphs (B) or (D) of Section 231(a)(2) of the Trade Act of 1974 may be used for TRA qualifying purposes. ADMINISTRATION. The amendment provides that weeks of call-up to active duty in a reserve status, so long as such active duty is "Federal service" as defined in 5 U.S.C. 8521(a)(1) (at least for 90 continuous days), shall constitute up to 26 weeks of TRA qualifying employment at wages of $30 or more a week. This means that all of the required employment and wages necessary to qualify for TRA may be attained during a reservist's call-up to active duty. (The clarifying provision in Section 106(a) also means that all of the required employment and wages necessary to qualify for TRA may be attained by a worker who does not work because of a disability that is compensable under a workers' compensation law or plan of a State or the United States.) This amendment only affects the TRA qualifying requirement in Section 231(a)(2); all other TRA qualifying requirements in Section 231 are unchanged. Therefore, States must also determine if the reservist meets the remaining TRA qualifying requirements contained in Section 231 of the Trade Act of 1974 before awarding TRA entitlement to the reservist. In determining the worker's qualifying weeks at wages of $30 or more a week for TRA qualifying purposes, the amended section 231(a)(2) of the Trade Act applies to weeks beginning after August 1, 1990. The effective date of this amendment will result in a retroactive application to TRA claims filed (or which would have been filed) by reservists who took part in Operations Desert Storm and Desert Shield. This means that States will redetermine the TRA initial claims of all reservists called-up for active duty whose claims were denied solely because they did not meet the requirements of Section 231(a)(2) of the Trade Act of 1974 as in effect prior to the enactment of this amendment. States will also take TRA initial claims of reservists who did not previously file a TRA claim because they did not meet the requirements of Section 231(a)(2) of the Trade Act of 1974 as in effect prior to the enactment of this amendment. In order to apply the amendment made by Section 106(a) to reservists whose TRA claims were denied or who did not file a claim solely because they did not meet the requirements of Section 231(a)(2) as in effect prior to the enactment of this amendment, the States and cooperating State agencies shall take appropriate actions to identify and inform these reservists of their rights to redetermination or the opportunity to file TRA initial claims. Such actions should include the search of agency files. In addition, States and cooperating State agencies shall announce in newspapers of general circulation and other appropriate media the application of the amendment made by Section 106. This is especially important because many of reservists may have not previously filed TRA claims because they did not meet the TRA qualifying requirements in Section 231(a)(2) of the Trade Act of 1974 as in effect prior to the enactment of this amendment. It is important that the newspaper and media announcements include information that State law claims filing and redetermination time limitations provisions are not applicable to TRA claims filed by reservists affected by the amendment made by Section 106. b. Section 106(b). AMENDED LAW: Provides that the amendment contained in Section 106(a) of H.R. 5260 is effective for weeks beginning after August 1, 1990. ADMINISTRATION: States and cooperating State agencies shall take appropriate action to ensure the TAA program amendment in Section 106 of H.R. 5260 is applied to weeks beginning after August 1, 1990. This means that all TRA determinations, redeterminations, and decisions on appeal which involve weeks beginning after August 1, 1990 shall reflect the TAA program amendments contained in Section 106 and the Department's controlling instructions contained in this GAL. TRA determinations, redeterminations, and decisions on appeal for weeks beginning before and on August 1, 1990 shall not reflect the TAA program amendment contained in Section 106. Newspaper and media announcements will contain language concerning the effective date of the TAA program amendment. Action Required: States are required to implement the amendment to Section 231(a)(2) of the Trade Act of 1974 in accordance with the controlling guidance contained in this GAL. States are required to: a. Inform all appropriate staff of the requirements of this GAL. b. Take appropriate actions to identify and inform TRA claimants whose claims were denied solely due to their not meeting the requirements of Section 231(a)(2) of the Trade Act of 1974 in effect before the enactment of this amendment of the effect of this amendment on their claims. c. Announce in a newspaper of general circulation and appropriate media the enactment and the effective date of the amendment to Section 231(a)(2) of the Trade Act of 1974. The announcement shall include the effect that the effective date of this amendment has on previously denied TRA claims for reservists as well as the opportunity for reservists who have not previously filed TRA claims to do so now. d. Take appropriate actions to redetermine all TRA claims with respect to which the decisions of reservists' eligibility are inconsistent with the operating instructions in this GAL. e. Take appropriate actions to apply the amendment to Section 231(a)(2) of the Trade Act of 1974 to all TRA initial claims for weeks beginning after August 1, 1990.

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