Background: The Job Training Amendments of 1992 are the culmination of a four year review of the JTPA system and its programs. The legislation that resulted from this review will offer persons with a high risk of failure in the job market an improved second chance at workplace success. The Amendments, which will become effective July 1, 1993, are designed to improve the targeting of programs on those disadvantaged persons who face serious barriers to employment and enhance the guilty of services provided. A service strategy will be required for each participant, based on individual need. The Amendments also provide additional linkages between JTPA and other human resource programs and strengthen fiscal and procurement accountability. The Amendments will bring about major changes in program design, intensity, quality, and administration, and their impact on the job training and employment community will be significant. Successful implementation of the Amendments will require an in-depth understanding of the new law and regulations. It also will need the full support of persons involved in the implementation of the Amendments at all levels -- Federal, State, and the local community. The Department of Labor's overall strategy for implementing the JTPA Amendments includes a number of training events described below. The training will be based on the principles identified by the Department as being central to overseeing and guiding the implementation process. These principles are: -- A substantive role for the private sector is key to an effective JTPA program. -- Training services provided by JTPA should be of the highest quality and responsive to the needs of individual participants. -- The JTPA performance standards will be the basic measure of the accomplishments of the JTPA system. -- JTPA programs must meet the highest possible standards for the use of public funds. -- JTPA and other human resource programs must have a workable system of relationships to jointly serve their participants. Based on these principles and with information and advice sought from the job training and employment And education programs and other related programs, the Employment and Training Administration (ETA) plans an active role in delivery and interpretation of the vision of the JTPA Amendments of 1992 and the rule making process to the JTPA system. Strategy: ETA will employ a three-phase strategy as outlined below for delivery of training related to full implementation of the Amendments. (a) Phase I: Regional Discussions during Comment Period Following publication of the regulations, Regional Offices will call States together to discuss issues and address initial State questions. The purpose of these meetings will be to provide for a two-way exchange of information about the regulations and to allow States to share perspectives and identify joint concerns. These discussions will help the Regional Offices develop strategies for assisting States with the implementation process. Questions raised during this first phase will help the National Office tailor the Regional Amendments Implementation Seminars to address system concerns. (b) Phase II: Regional Amendments Implementation Seminars National Office training teams will conduct 10 regional seminars for State-led JTPA teams based on the interim final rule. The purpose of the Regional Amendments Implementation Seminars is to provide background on the philosophy behind the Amendments, guidance to the system on regulatory issues, and an opportunity for States to discuss implementation related issues and share implementation strategies. It is expected that States will then provide turn around training to service delivery areas and service providers to ensure that the philosophy of the Amendments and the Federal interpretation of the vision behind the Amendments and regulatory interpretation is shared throughout the system. Regional Amendments Seminars will be held in a mix of regional and non-regional office cities, with one session being held within each region. Each State may send 6 to 8 representatives to the seminar in its Region. States should identify and send Title II staff with a mix of programmatic, administrative, and training backgrounds to the regional seminar. At their discretion, States may include SDA staff as participants. A State equal opportunity specialist should also attend. In addition to Title II staff, States may send several Title III staff to the Title III workshop. (Schedule to be issued at a later date with specific dates and times of Title III coverage.) We anticipate that the representatives sent to the regional seminar will have a working knowledge of the Amendments and the regulations and will come prepared with issues they want to discuss. The seminar will begin with policy highlights and an overview of the major legislative changes to JTPA and Federal expectations for State Administrators, the State Job Training Coordinating Councils, and other high level policy makers. The rest of the seminar will provide interpretation of the Amendments, Federal expectations regarding implementation of the Amendments and the regulations, and opportunities for State staff to attend two simultaneous tracks of workshops on critical issues and topics. See Attachment I for a list of topics being considered for coverage during the concurrent workshops. A more detailed announcement will be forthcoming. It is anticipated that Amendments training will begin in February and continue through March. As mentioned above, State staff who attend the Federal training seminars will be expected to deliver training on the Amendments and regulations for other State JTPA staff, SDA staff, service providers, and other interested parties at the State and local level. National and Regional office ETA staff will be available to serve as resources for State delivered sessions. Travel and per diem costs related to attendance at the Amendments Implementation Seminars will be borne by States. (c) Phase III: Subject-Specific Train-the-Trainer Sessions Approximately one month after the Regional Amendments Seminars, delivery of a series of in-depth subject-specific train-the-trainer sessions will begin. The purpose for providing subject-specific training is to build skills in subjects identified as integral to implementation of the JTPA Amendments. Given the limited number of slots in subject matter training which could be provided this fiscal year, and in order to maximize access to training, the National Office has chosen to employ a train-the-trainer approach for this training. This approach relies upon the States as full partners in turning the training around for SDA's and service providers at the local level. A State may send two participants to training in each topical area (preferably, one will be an SDA representative). To the extent possible, train-the-trainer participants should be subject matter experts who also have training experience. Regional Office staff may be called upon to augment State teams based on Regional-State consultations. Each team sent to a train-the-trainer session will be expected to turn around the subject matter training for the SDA's within their State, and/or to participate in the training of other States as part of an overall Regional strategy. Once again, travel and per diem costs related to attendance at train-the-trainer sessions will be borne by States. Train-the-trainer sessions will be provided in each of the following subjects: 1) Adult Assessment; 2) Youth Assessment; 3) Out-of-School Youth Program Models; 4) SDA Monitoring; 5) Case Management; 6) On-the-Job Training; 7) Targeting, Outreach and Recruitment; and 8) Oversight. Train-the-trainer sessions in subjects (1) through (4) are tentatively scheduled to be delivered during the spring and summer of 1993. Sessions in subjects (5) through (8) will begin in the summer and continue through the fall of 1993. Additional information is available in Attachment II. Every topic will be provided once in each of three multi regional sites: Philadelphia, Pennsylvania; Dallas, Texas or Kansas City, Missouri; and the San Francisco Bay Area, California. In addition to training in each of the 8 topics listed above, training on eligibility documentation will be provided to States and SDA's by Regional Office staff. Next Steps: States will be informed under separate cover of specific logistical information relating to Phase II and Phase III training as soon as that information is available. Action: State Liaisons are requested to: (a) Inform SDAs of the training plans outlined in this TEIN. (b) Develop State training strategies to address the multiple training challenges outlined above so that States are able to participate fully once regulations are published. (c) Inform the Regional Office within two weeks of the date of this TEIN of the name, address, and telephone number of the State's designated contact regarding training. Also discuss with the Regional office their training strategy, i.e., whether they will be using State Training Institutes, whether they will be working jointly with other States to co-train and whether they would like Regional Office participation in their training. (d) Begin compiling lists of State and local representatives who will attend the Amendments Seminars and each of the subject-specific train the trainer sessions listed above. As training participants will be expected to deliver sessions on the Amendments and the various training subjects listed above to the SDAs consideration should be given to assistance with coverage of normal duties for those nominated to perform training roles for the State. (e) Once their strategies are in place, the Liaisons are asked to inform SDAs and others as appropriate of their training plans.

References: Section 3304(a)(9)(B) of the Internal Revenue Code, as amended; 20 CFR 616; ET Handbook No. 399; UIPL No. 55-89; and UIPL No. 11-91. Background: To address the need for prompt communication of wage transfer requests and responses for claims filed under the Interstate Arrangement for Combining Employment and Wages, a software package to telecommunicate the requests and responses using the INTERNET was distributed in September 1989. States were previously requested in UIPL No. 55-89 to be operational on the TC-IB4 application as of April 2, 1990. The TC-IB4 application was subsequently updated to address additional needs, identified by the States, and re-released in August 1990. The Report on the Determination of a Combined Wage Claim, Form IB- 5 (TC-IB5), is an integral part of the combined wage program. This report is used by a paying State to advise a transferring State of its potential benefit liability and to advise a transferring State when wages are returned and need to be restored to the wage file and made available. It is extremely important to use this report to return wages immediately so that they may be available for use for a substitute claim that may result from a combined wage claim cancellation or ineligibility. It is also important that States process the incoming TC-IB5s before incoming initial claims (TC- IB1s) to prevent the substitute initial claim from resulting in an ineligible monetary determination because the wages have not been restored. This application was distributed in December 1990, and SESAs were requested to implement the new automated procedure by April 1, 1991. Before and after the distribution of the TC-IB4 and TC-IB5 applications, several meetings were held with State representatives to explain the requirements, provide assistance and answer any installation questions. Additionally, SESAs were and continue to be allocated special funding for data processing support of the automation necessary to telecommunicate data under the interstate and combined wage program procedures. During the past year, all States have been contacted by the Regional Offices and offered on- site assistance. Yet some SESAs have not requested assistance and have not installed the required applications necessary to telecommunicate the data. SESAs' failure to telecommunicate the required data is having an adverse affect on all other States as they must continue to maintain a manual system in order to handle requests and responses to and from such States. Requirement for Conformity and Compliance: Section 3304(a)(9)(B) of the Federal Unemployment Tax Act requires States to participate in any combined wage claim arrangement approved by the Secretary of Labor (in consultation with the State agencies). 20 CFR 616.13, in pertinent part, implements this arrangement by providing that: Each State agency will cooperate with every other State agency by implementing such rules, regulations, and procedures as may be prescribed for the operation of this [combined wage] arrangement. Effective April 5, 1993, electronic data communication, as described in Section 5, is the prescribed procedure for handling wage transfer requests and responses, and reports on the determination of combined wage claims. Action Required: State Administrators are requested to take the necessary actions to ensure that effective April 5, 1993: a. all requests for wage transfers are sent and received via INTERNET; b. all responses to wage transfer requests are sent and received via INTERNET; c. all reports on the disposition of transferred wages (IB- 5) are sent and received via INTERNET; and d. the use of hard copy forms for these purposes are discontinued.

Background: The National Defense Authorization Act for Fiscal Year 1990 amended the Job Training Partnership Act (JTPA) with a new Section 325, The Defense Conversion Adjustment (DCA) Program. The Department of Labor published a notice in the May 12, 1992 Federal Register to solicit grant applications from eligible grantees for demonstration projects to provide services to workers experiencing defense related dislocations. The Department of Labor (DOL) and the Department of Defense are providing nearly $5 million in support of the demonstration projects selected pursuant to the May 12 announcement to provide retraining and readjustment services to workers dislocated as a result of military reductions and base closures.

References: UIPL No. 16-94 (3/15/94), UIPL No. 31-94 (6/24/94), UIPL No. 32-94 (6/24/94), UIPL No.42-94 (8/16/94), ET Handbook No. 401. 2nd Edition, Change 5 (10/11/94). Background: The RQC staff compiles questions and issues that arise during Regional and National Office (NO) monitoring trips, and from other sources in order to develop a generic set of answers to those questions believed to be of universal interest to the State staff implementing RQC. Revised 581: The 581 report has been revised and approved by the Office of Management and Budget (OMB) to accommodate planned changes in data elements for accounts receivable and to include the proper data elements for RQC Computed Measures. Instructions for completing the revised 581 were issued in ET Handbook No. 401, 2nd Edition, Change 5, October 11, 1994. The revised form will become effective with the report for the quarter ending March 31, 1995, due in the NO on May 20, 1995. State Employment Security Agency staff have raised additional questions concerning changes on the revised form. Answers to 581 questions are now included in this third group of Q&A's dated November 1994. Questions and Answers: The Q&As are arranged by categories of the 581 report and by each major RQC tax function. Numbering of the questions in each section is continuous. This format provides the necessary flexibility to allow periodic Q&A updates to be inserted in the appropriate section. There may be some overlap between 581 and RQC Computed Measures questions. Effective with this compilation, questions relating to interpretation of Computed Measures data elements have been included in the appropriate 581 category and questions relating to calculation are included in the appropriate Computed Measures tax function. Action Required: The SESA Administrators are requested to provide the attached Q&As to the SESA Tax staff, the agency organizational unit responsible for the accuracy and completion of the 581, RQC Reviewers and appropriate DP staff. Five copies are attached for your convenience.

References: The EUC Act of 1991, Public Law 102-164, as amended; GAL No. 4-92 and Changes 1-4 as consolidated in GAL 12-92; UIPL No. 9-92 and Changes 1-4; the Federal-State Extended Unemployment Compensation Act of 1970, as amended; 20 CFR Part 615; 20 CFR Part 616; ET Handbook 392; ET Handbook 399; ET Handbook 401; Section 5100, Part V, Employment Security Manual and UIPL No. 6-92. Background: Many questions have been received from States about options available to claimants under Public Law 102-318. This change to the program letter provides to all States answers that have been given to individual State questions. Action Required: State Administrators are requested to make a copy of this UIPL available to all appropriate staff.

References: TEGL No. 3-94. Background: TEGL No. 3-94 was transmitted to all State JTPA liaisons, State Employment Security Agency (SESA) Administrators, and State Worker Adjustment liaisons. It is being retransmitted to all SESA administrators to ensure that the UI components in each SESA are informed of the contents so that they can coordinate their efforts to implement the WP/RS system. Action Required: SESA Administrators are requested to provide this information to all UI staff participating in WP/RS.

References. None. Background. The enclosed reports are being distributed as agreed during the October 1994 Advisory Council meeting to all grantees. The Advisory Council Summary Report summarizes the two day proceedings conducted in Washington, D.C. along with Dr. McDonald's Final Report as Chair of the Advisory Council. Action Required. None. Inquiries. For additional information or questions, please contact Mr. Thomas M. Dowd, DINAP Chief on (202) 219-5504 or Ms. Karen Kay, Advisory Council Chairperson on (517) 694-7800. Enclosures (2)

Reference: GAL 12-92 (September 11, 1992) Background: The amendments to the EUC program (effective July 3, 1992) included a provision that affects the work of QC -- the election provision. Under this provision, a claimant eligible for both regular Unemployment Insurance (UI) and EUC must be allowed to elect which benefit to receive. Although there is a general precedent for the election provision with Combined Wage Claims, this is the first instance of a program eligibility option for an extended benefits program and regular benefits. A further aspect is the "retroactive" provision. The election was effective for weeks after July 3, 1992. However, States have varied in how quickly they have implemented the requirements. Claimants must be offered the opportunity to elect EUC for weeks after July 3, 1992 already paid as regular UI or UCFE/UCX, etc., if they have the program eligibility option. The program eligibility option feature of the amendments requires the States to offer some claimants an election of EUC vs regular benefits more than once. At the end of the benefit year of a claimant who elects to defer the receipt of regular benefits to receive EUC, the claimant again has an election to postpone establishing a new benefit year to receive EUC on the most recently expired benefit year. The amendments affect the QC program as follows: I. The QC population includes regular benefit payments; it excludes all extended benefit-type payments, interstate, DUA, and TAA. The retroactive election provision makes this universe conceptually ambiguous. States are deleting retroactive EUC elections from the ET 5-159 report after the fact and unless adjusted the QC Population will diverge from the 5-159 figures. II. The election provision introduces two potential sources of payment error into the UI program. A. After the EUC amendments have been implemented, States can make mistakes by handling the election provisions incorrectly. For example, a claimant elects EUC but the State pays regular benefits. B. During the period between July 3, 1992 and the date of implementation of the EUC amendments, States will have made regular benefit payments to claimants that have the program eligibility option which were correctly included in the QC population. Some payments will appear in QC samples where the claimants were entitled to have been offered, and upon election receive, EUC payments. By the time QC investigates them, some may have been paid as EUC "retroactive" claims; QC may determine that others should have been paid as EUC claims or that an election should have been offered. Although the original payment decisions that put the payments in the QC sample were correct at the time they were made, some or all could be considered QC overpayments. This situation is complicated by the lack of an implementation period in the EUC amendments to define when retroactive payments are or are not timely. The total number of such payments depends on (a) the number of claimants with a program eligibility option in the State; (b) the speed with which the State implemented the new law; (c) the election decision made by the claimant. Policy: UI payments which subsequently become EUC payments will not be considered improper payments for QC purposes. Such cases need to be investigated and identified so that the QC population can be adjusted. The policy includes the following: a. Investigate all cases in the QC sample following standard QC procedures and code any UI errors. b. Identify ("flag") all program eligibility option cases for key weeks after July 3, 1992 and code them appropriately. This will be done by changing the Program Code. Most of the cases will be in the "retroactive" period, but some may also occur after full implementation. c. Additions will be made to the QC software to flag the sampled cases and a method will be devised to adjust the QC population. d. Program eligibility option cases in which the claimant elected regular benefits will remain in the QC population/sample. e. The only situation where the case will remain in the sample is one in which the regular monetary determination was in error: i.e.; the claimant should have exhausted in an earlier week but will receive EUC due to the additional EUC benefits. These are UI overpayments due to monetary determination errors, not related to implementation or operation of EUC. f. No EUC-related mistake will be counted as an error for QC purposes. Because the EUC program eligibility option cases are removed from the sample, they will not affect calculations of timeliness. Because they have been investigated fully for regular benefit eligibility, however, they will be counted toward meeting sample allocation requirements. g. The "flagged" cases will remain in the QC database for analysis: They may help explain any dramatic changes in a State's error rate from 1991 to 1992, if the program eligibility option cases prove to be significantly more or less error-prone in regard to regular program eligibility. Procedures: States must continue to fully investigate all cases in the QC sample and ascertain whether they met regular benefit eligibility criteria. States are required to: (a) review completed cases and structure current investigations to identify program eligibility option cases; (b) establish and maintain a list of affected cases for future coding. a. Identifying a Program Eligibility Option Payment. There are three basic classes of EUC program eligibility option cases that must be identified. (1) After presentation of the option by the agency, the claimant retroactively elected to substitute an EUC payment for the regular program payment. (2) Upon the presentation of the option by the QC Investigator (QCI) in the course of the QC verification (this could occur either for "retroactive" or post- implementation cases), the claimant elected EUC. (3) After review of completed QC cases, the QCI determines that the case had been or should have been transferred to EUC. Below is a selection of potential situations with coding instructions: 1. Payment made originally under regular program before State implementation of EUC. During the "implementation" period, State offered EUC, which claimant elected. QC investigation uncovered no regular benefits issues. CODING: Identify as EUC payment, for deletion from QC sample. 2. Payment made originally under regular program before State implementation of EUC. During the "implementation" period, State offered EUC, which claimant elected. QC investigation revealed that the regular payment was improper. CODING: Identify as EUC payment, for deletion from QC sample. 3. Regular benefit payment made before State implementation of EUC. During the "implementation" period, State offered EUC, which claimant rejected. QC investigation uncovered no regular payment issues. CODING: Regular payment. 4. Regular benefit payment made before State implementation of EUC. During the "implementation" period, State offered EUC, which claimant rejected. QC investigation uncovered that a regular payment was improper. CODING: Regular payment. 5. Regular benefit payment made after State implementation of EUC. QC investigation uncovered no regular payment issues; also determined claimant was EUC-eligible, but that State either failed to offer EUC election to claimant, or presented it incorrectly, so that EUC was not elected. Upon presentation by QCI, EUC is elected by claimant. CODING: Identify as EUC payment, for deletion from sample. 6. Regular benefit payment made after State implementation of EUC. QC investigation determines that original payment was improper; also determined claimant was EUC-eligible but that State either failed to offer EUC election to claimant, or presented it incorrectly, so that EUC was not elected. Upon presentation by QCI, EUC is elected by claimant. CODING: Identify as EUC payment, for deletion from sample. 7. Regular benefit payment made after State implementation of EUC. QC investigation uncovered no regular payment issues; also determined claimant was EUC-eligible, but that State either failed to offer EUC election to claimant, or presented it incorrectly, so that EUC was not elected. Upon presentation by QCI, EUC is not elected by claimant. CODING: Regular payment. 8. Regular benefit payment made after State implementation of EUC. QC investigation determines that original payment was improper; also determined claimant was EUC-eligible but that State either failed to offer EUC election to claimant, or presented it incorrectly, so that EUC was not elected. Upon presentation by QCI, EUC is not elected by claimant. CODING: Regular payment. 9. Regular benefit payment made after State implementation of EUC. During the QC investigation, it was determined that (a) the regular monetary determination was in error and that the claimant should have exhausted regular benefit eligibility before the Key Week; and (b) claimant was EUC-eligible. Claimant elected EUC either as result of either SESA or QCI offer. CODING: Regular UI payment error. 10. Regular benefit payment made and the QC investigation was completed before State implementation of EUC. During the "implementation" period, State offered EUC, which claimant elected. QC investigation uncovered no regular benefit issues. CODING: Identify as EUC payment, for deletion from QC sample. 11. Regular benefit payment made and the QC investigation was completed after State implementation of EUC. QC review determined claimant was EUC-eligible, but that State either failed to offer EUC election to claimant, or presented it incorrectly, so that EUC was not elected. Upon presentation by QCI, EUC is elected by claimant. CODING: Identify as EUC payment, for deletion from sample. b. Listing of Cases, Coding, Reporting. States are to develop and maintain a list of affected cases for additional coding at a later date. The first release following introduction of the new QC software will contain instructions for coding QC cases impacted by the EUC program. At this point, it is intended that this will involve reopening the case and changing the PROGRAM TYPE to a new code created to embrace EUC. Edits will be changed so that cases with the EUC code are (a) included in case counts for allocation purposes; (b) excluded from timeliness calculations; (c) dropped from the QC sample and thus excluded from the QC annual report; and (d) excluded from other major reports. These cases will be available for analysis. Action Required: State Administrators should provide this information to the appropriate State staff and ensure that: a. All cases in the QC sample that have a program eligibility option are identified; and b. A list of all identified cases is established and maintained for future data entry.

References: Sections 162 and 303 of the JTPA; Training and Employment Guidance Letter (TEGL) No. 4-93, dated January 27, 1994. Background: TEGL No. 4-93 describes the reallotment process that was used to identify and reallot unexpended formula funds that were in excess of statutory limits at the end of Program Year 1993. Reallotment of funds has been based on expenditure reports submitted by the States. Action: Copies of the attachment should be distributed to appropriate staff. Equitable procedures for making funds available for reallotment, and distribution of funds requirements, are addressed in the notice.

Background: Attached is a copy of the current Directory of State Employment Security Agency Officials. This Directory will be updated periodically by issuing page changes as current information is received. Action Required: State agencies are requested to immediately inform their Regional Office of changes to the attached Directory.