References: Sections 206, 256, and 266 of Title II of Public Law 102-367; TEIN No. 16-92, transfer of 1992 Title II-B Summer Youth Funds to Title II-A. Background: The JTPA Amendments of 1992 established new criteria for operating Title II program activities, identified new Title II cost categories, and provided SDAs with the option to transfer funds between the "Parts" within Title II. Program Year 1993 will serve as a transition period for using remaining balances of prior year available funds, and initiating the SDA option of intra-Title II fund transfers. This guidance is being provided to alert States and SDAs to the options for the use of PY 1992 and earlier funds in the local planning process for PY 1993, and for PY 1993 funds to be transferred among parts in PY 1993 and in subsequent years. Using Prior Year Title II Funds: The Interim Final Rule at 20 CFR 627.903(d) provides that the balance of any available Title II-A funds as of June 30, 1993, may be used for PY 1993 activity. Any affected Title II-A funds will be governed by Section 203(b)(1). Of these funds, not less than 40 percent, or the rate approved by the Governor as established under Section 203(b)(2), must be used in PY 1993 as Title II-C funds to provide services to eligible youth. All affected amounts will be subject to the cost limitation and reporting requirements of the new JTPA Amendments and implementing regulations and will assume the identity of the Title II "Part~ receiving the funds; i.e., Title II-A or Title II-C. Accounting requirements: For accounting and record keeping purposes, all prior year funds used for PY 1993 activity will retain their appropriation year identity. Cash will continue to be drawn under the Payment Management System as Title II-A until all amounts have been expended. Residual Title II-A amounts not used for PY 1993 activity will be governed by current requirements. Prior year funds used for PY 1993 activity must be accounted for and reported separately. Reporting instructions for all JTPA funds will be issued shortly. Intra-Title II Funds Transfer: The Interim Final Rule at 20 CFR 628.550 provides SDAs with the flexibility to transfer funds within Title II, if such transfers are described in the job training plan and approved by the Governor. The three optional fund transfers include: (a) Section 206 states that a service delivery area may transfer up to 10 percent of the amounts allocated under part A to the program under part C if such transfer is described in the job training plan and the transfer is approved by the governor; (b) Section 256 states that a service delivery area may transfer up to 10 percent of the funds provided to the program under part B to the program under part C if the transfer is approved by the Governor; and (c) Section 266 states that a service delivery area may transfer up to 10 percent of the amounts allocated under part C to the program under part A if such transfer is described in the job training plan and the transfer is approved by the Governor. Beginning with the PY 1993 funding period, transferring amounts within Title II are optional for the SDAs. The Governor is responsible for determining the frequency of such transfers and ensuring that job training plans are modified as necessary. Notices of obligational authority, funding availability, or other similar documents issued by the State to the SDAs will be revised to reflect all transfers. The Department encourages all such transfers to be completed prior to the end of the affected program year. All transfers must be reflected on appropriate financial reports. Financial reporting instructions will be issued separately. Action: For the PY 1993 planning process, SDAs may use available PY 1992 and earlier Title II-A funds for Titles II-A and Title II-C purposes in PY 1993, and may also transfer PY 1993 Title II-A, II-B, and II-C funds to Titles II-A and II-C. States should ensure that prior year Title II-A funds used for PY 1993 activity and intra-Title II fund transfers are consistent with this issuance.

References: JTPA Interim Final Regulations published on December 29, 1992; TEIN No. 16-92; TEGL No. 2-92; TEGL No. 4-92; and TEGL No. 6-92. Background: Public Law 102-367, dated September 7, 1992, established major revisions to JTPA. Section 701(i) of Public Law 102-367 permits the Department to "establish such rules and procedures as may be necessary to provide for an orderly implementation of the amendments...." Interim final rules published December 29, 1992, provide policy on transition to the new requirements at 20 CFR 627 Subpart I. The JTPA Amendments of 1992 made significant enhancements to program requirements and administrative systems. The regulations state that transition activities will be accomplished during the balance of Program Year (PY) 1992 in order to fully implement the Amendments on July 1, 1993, unless otherwise stated. Comments on the interim final rule have indicated considerable concern with the transition provisions. The anticipated expansion and enrichment of the Title II-B program for the upcoming summer has also prompted a reexamination of transition provisions. Accordingly, pursuant to the authority provided by Section 701(i) of Public Law 102-367, this issuance provides rules and procedures which the Department finds necessary to provide for the orderly implementation of the Amendments. It is intended that these guidelines may be relied on by States and SDAs. The Department will issue conforming amendments to the JTPA Interim Final Regulations as soon as possible. Program Implementation: The Department recognizes that implementation by the States and SDAs of the new program design requirements, particularly objective assessment and development of the individual service strategies (ISS), may require additional time to fully implement beyond July 1, 1993. The Department intends that the program design changes be undertaken in a manner which ensures the long term quality of service delivery in JTPA. Reasonable efforts to implement the provisions of 20 CFR 628.515, 628.520, and 628.530, objective assessment, individual service strategy, and referrals of participants to non-Title II services as soon after July 1, 1993 as possible, are expected to be made. However, all new participants will not be expected to initially receive such services until January 1, 1994. The Department acknowledges that the quality of those activities is expected to be improved and refined during PY 1993, as are all aspects of the JTPA program. Monitoring of the program aspects of the Amendments during PY 1993 by all levels of the JTPA system, including the Department, should focus heavily on improving service quality. In determining compliance with the program design requirements during PY 1993, the grant officer will consider the extent to which the States and SDAs have made good faith efforts to implement the new provisions during PY 1993. Immediate action: In order to make the transition from the old to the new requirements, the JTPA Regulations at 20 CFR 627.902 identified actions that must be accomplished by the Governor prior to July 1, 1993. These actions cover four major areas: (a) Funding; (b) Participants; (c) Procurement; and (d) Reporting. a. Funding Effective July 1, 1993, PY 1993 funds must be administered in accordance with the new legislation and regulations. PY 1992 funds unexpended on June 30 may be expended after July 1 to serve "grandparented" participants under "old" rules, or they may be expended after July 1 to serve "new" or "old" participants under new rules. Whatever amount is used under the "old" rules is to be reported on the "old" reporting form. Whatever amount is used under the "new" rules is to be reported on the "new" reporting form. There will be an increase allowed in the administrative cost limitation for PY 1992 funds from 15 percent to 20 percent, with a corresponding adjustment to the other cost limitations. Specifically, not less than 80 percent of Title II-A funds may be expended for training and participant support, and not less than 65 percent may be expended for training. Any unexpended PY 1992 funds to be used after June 30, 1993, may be used according to the "old" rules (20 CFR 626 et al., published September 22, 1989) so long as these funds are used to provide training to participants who were enrolled on or before June 30, 1993. When all such participants are terminated, remaining unspent funds must be used and accounted for in accordance with the rules implementing the 1992 Amendments. States and SDAs should identify PY 1992 and earlier funds that will be used in PY 1993 for programs operating under the new Amendments. Of these funds, not less than 40 percent, or the rate approved by the Governor as established under Section 203(b)(2), must be used in PY 1993 as Title II-C funds to provide services to eligible youth. The cost limitations, cost classifications, and allowable costs requirements in the 1992 JTPA Amendments apply to these funds. The Interim Final Regulations provide that administrative cost pool funds must be allocated on the basis of benefits received, rather than the past practice in some States and SDAs of allocating costs on the basis of proportionate fund contribution to the pool. Many commentors viewed this as unduly restrictive. It is important to note that States, in setting policy in this area, may apply whatever allocation methodology is in accordance with generally accepted accounting practices and is acceptable to its auditors. Pursuant to TEGL 2-92, any available section 202(b)(3) PY 1992 or earlier "6 percent" funds may be used to develop and implement data collection and management information systems to track the program experience of participants. The JTPA Amendments of 1992 provide SDAs with the option to transfer funds between the "Parts" within Title II. For the PY 1993 planning process, SDAs may use available PY 1992 and earlier Title II-A funds for Titles II-A and Title II-C purposes in PY 1993, and may also transfer PY 1993 Title II-A, II-B, and II-C funds to Titles II-A and II-C. Guidance that address this was issued separately in TEGL No. 6-92. b. Participants "Grandparenting" Participants Participants enrolled in JTPA programs prior to July 1, 1993, may continue to be served under the "old" rules and regulations. As previously noted, all new Title II-A and II-C participants enrolled after January 1, 1994, must be served under the requirements of the 1992 JTPA Amendments, e.g., assessment, ISS, and referral. The 65 percent barrier requirement for Titles II-A and IIC, however, will apply to all participants newly enrolled after June 30, 1993. The 50 percent out-of-school participants requirement at 20 CFR 628.803(h) will not be the subject of compliance review until the period following July 1, 1994. During PY 1993, however, SDAs must show improvement in the proportion of out-of-school youth being served and ETA and States will monitor performance in increasing the proportion. The Interim Final Regulations call for all participants to come under the requirements of the Amendments as of July 1, 1994. Final Regulations will allow participants on board prior to July 1, 1993 to continue service under the old arrangements until they terminate, which may be after June 30, 1994. c. Procurement Section 627.904(e) of the Interim Final Regulations states that "All procurements initiated on or after July 1, 1993, shall be governed by and follow the requirements in 20 CFR 627.420...." Initiation of a procurement, for purposes of this section, is considered to be either the award of a sole source grant/contract, the award of a small purchase contract or the issuance of an Invitation For Bid or Request For Proposal. In accordance with 20 CFR 627.905, contracts, awards, and agreements entered into on or before June 30, 1993, are to be used to serve only participants enrolled on or before June 30, 1993, unless the contracts, awards and agreements are modified to comply with the new amendments and regulations. d. Reporting Financial Reports States/SDAs may continue to use PY 1992 money for grandparented participants under old requirements, or PY 1992 funds may be used for new participants under new requirements. PY 1992 money used to implement the 1992 Amendments will be reported on the new Title II financial report format, and will be subject to the new financial management requirements. States will continue to report on the JTPA Annual Status Report (JASR), as usual, PY 1992 and earlier money that is not used to implement the 1992 Amendments. Reporting instructions for PY 1993 are forthcoming. As soon as OMB approval has been secured, the Department will issue instructions for the new fiscal reports. PY 1992 and earlier funds used for PY 1993 activity will assume PY 1993 characteristics and cost limitations and audit requirements. They will not, however, lose their appropriation identity. These funds will be reported separately on the new financial report under new cost categories in accordance with the reporting instructions issued for PY 1993 funds. Participant Reporting All current annual and semi-annual reporting requirements for Title II and Title III will continue until full implementation of the Standardized Program Information Reporting (SPIR) system. Full SPIR implementation is required for PY 1993, beginning July 1, 1993. For PY 1992, a dual system of participant reporting will be required as follows: (1) PY 1992 aggregate data required in the JASR and Worker AdJustment Program Annual Program Report (WAPR) will be reported no later than August 15, 1993; and (2) SPIR participant reports for all individuals terminating during PY 1992 will be reported no later than November 15, 1993. Reports will contain, at a minimum, that information needed to complete the JASR and WAPR. Title II-B information will be reported on the JTPA Summer Performance Report. Additional requirements may be added, depending on the proposed summer supplemental. Other Issues of Immediate Concern: a. State Human Resource Investment Council (HRIC) Pursuant to Section 701 of the JTPA as amended, States may establish an HRIC that would supersede and replace the State Job Training Coordination Council and other State councils. Section 703(c) provides that a State electing to establish an HRIC shall certify to the Secretary such establishment at least 90 days before the beginning of the 2-program year planning period. The 2-year period for the next State and local plans begins July 1, 1994. Therefore, an HRIC may be established now, or at any time during PY 1993. The certification for the HRIC is required 90 days prior to July 1, 1994. b. Instructions necessary for SDAs to operate the 1993 summer Program There is contradictory language in the Interim Final Regulations at 20 CFR 627.902(j) and 627.904(k). The calendar year 1993 Title II-B Summer Youth Employment and Training Program will be governed by the Act and regulations in effect prior to the 1992 JTPA Amendments pursuant to 20 CFR 627.904(k). Additional guidance will follow related to the proposed summer supplemental. c. Capacity building and technical assistance The JTPA Amendments of 1992 made capacity building and technical assistance priorities at the National, State and local levels. Governors are encouraged to use Section 202(c)(1)(B) funds to develop a Statewide capacity building and technical assistance strategy, including provisions for SDAs in State planning. Funds may be used for capacity building purposes beginning July 1, 1993. Consideration should be given to directing resources and/or training directly to staff of SDAs and local service providers. Other coordinated capacity building arrangements, including cost-sharing approaches, should also be considered. d. Performance standards Consistent with the transition provisions in Section 701, implementation of new performance standards requirements will begin on July 1, 1994 (PY 1994). Until that time, current requirements pertaining to measures and applications (i.e., adjustments, incentive awards, and imposition of sanctions) will remain in effect. Therefore, for calculating PY 1992 SDA performance on the post program performance employment and earnings measures, States are to use the PY 1992 JASR follow-up information (based on the first three quarters of PY 1992 and the fourth quarter of PY 1991). A similar procedure will be used for PY 1993 (using the first three quarters of PY 1993 from the August 15, 1994 SPIR and the fourth quarter of PY 1992 derived from the November 15, 1993 SPIR). This is consistent with the procedures used since the inception of post program measures. e. Grievances The transition provisions contained in the Interim Final Regulations appear to imply that "new" grievances procedures are required at the State and SDA levels as a result of the JTPA Amendments of 1992. This is not really the case. The basic requirements at Section 144 of the Act, to have and maintain a JTPA grievance procedure for complaints and alleged violations of the Act and regulations, were not changed by the Amendments. The Amendments revised Section 144 by adding new subsections which apply to the handling of alleged Section 143 labor standards violations. The States and SDAs will need to modify their grievance procedures accordingly to cover such complaints. Complaints and grievances will continue to be handled in accordance with established grievance procedures, except as modified by the changes in the Amendments to Section 144, and other minor revisions set forth at Subparts E, F, and H of the Interim Final Regulations. f. Coordination Requirements New coordination and linkage requirements are expected to be developed during PY 1993 so as to constructively impact the planning and coordination of PY 1994-95 activities under Titles I, II and III. g. Plans Modifications The Interim Final Regulations call for the modification of State and local job training plans. The plans need to reflect only those programmatic revisions which are necessary to implement the requirements that take effect on July 1, 1993 or during PY 1993. The plans must also reflect provisions for the new coordination requirements for local adult and youth programs which must be in place during PY 1993. h. SDA redesignation Policies for the designation of SDAs need not affect SDAs prior to the designations for PY 1994. It is expected that these policies will apply to SDA designations prior to the 1994-1995 program year Period . Action: States should ensure that transition activities are consistent with this guidance.

References: TEGL No. 2-94: "Dual Enrollment of Trade-Impacted Workers in Job Training Partnership Act (JTPA) Title III and Trade Adjustment Assistance (TAA) Programs, and Application Procedures for Funding for Special Projects," dated August 19, 1994; GAL No. 7-94: "Operating Instructions for Implementing the Amendments to the Trade Adjustment Assistance for Workers Program in Title V of the North American Free Trade Agreement (NAFTA) Implementation Act," dated December 28, 1993 (including the Attachment, "Statement of Administrative Action" which accompanied the North American Free Trade Agreement (NAFTA) Implementation Act); and TEGL No. 7-93: "Transitional Adjustment Assistance Provisions Related to the Implementation of the North American Free Trade Agreement (NAFTA)," dated April 19, 1994. Dual Enrollment: As discussed in TEGL No. 2-94, dual enrollment of dislocated workers in Trade Adjustment Assistance (TAA) and Title III programs is a valuable program practice which can provide a real opportunity to improve the quality of services and increase customer satisfaction for Trade participants. To encourage and support this program coordination, copies of every TAA and NAFTA- TAA petition received by the Department of Labor will be provided to the appropriate State Title III Dislocated Worker Unit for information and follow-up. Further, as provided for in TEGL No. 2-94 and revised in this Change 1, State JTPA Liaisons may request Title III National Reserve Account funds when needed to support establishment and/or expansion of dual enrollment efforts. NAFTA Impacted Workers: During the debates on the North American Free Trade Agreement, and as described in the "Statement of Administrative Action," the Administration had committed to provide effective readjustment assistance to workers impacted by NAFTA. This commitment for effective assistance under both NAFTA-TAA and Title III programs is discussed in GAL No. 7-94 and TEGL No. 7-93. States are encouraged to enroll all trade-impacted dislocated workers, especially those affected by NAFTA, in the Title III program to ensure that the workers have access to all the services needed to help them get a new job. This includes workers certified under TAA and NAFTA-TAA, as well as other trade-impacted workers who are not eligible for assistance under NAFTA-TAA, as explained in TEGL No. 7-93. Special Projects: In addition to broadening the dual enrollment efforts described in TEGL No. 2-94, the Department is making available Title III national reserve account funds for special projects to help workers dislocated as a result of NAFTA, as well as those being served under TAA. The original application deadline for special project funding requests under TEGL No. 2-94 of December 31, 1994 is extended until further notice. These Special Project funds can be used to: 1) improve coordination between the programs and increase the number of TAA or NAFTA-TAA certified workers being dual enrolled; 2) expand the services and benefits available for workers certified under TAA or NAFTA-TAA; or 3) provide services to NAFTA- impacted workers dislocated from secondary firms. The abbreviated application procedures, the Title III/TAA Special Project Assurances, Special Project Implementation Schedule Template, and Special Project Cumulative Quarterly Budget Projection Template which were attachments to TEGL No. 2-94 have been further streamlined and revised. The revised versions are attachments to this Change 1 and should be used to request funds for special projects described above. Action: a. Recipients of this TEGL should make it available to appropriate JTPA and TAA officials throughout the State and substate dislocated worker system, and encourage efforts aimed at dual enrollment and program coordination. b. Applications for funds for dual enrollment and/or NAFTA- impacted workers should be prepared in accordance with guidance in the attachments, and mailed to: Office of Grants and Contracts Management, Division of Acquisition and Assistance, Employment and Training Administration, U. S. Department of Labor, Room S-4203, 200 Constitution Avenue, N.W., Washington, D.C. 20210, Attention: Dislocated Worker Grants, Barbara J. Carroll, Grant Officer. A copy of the application should also be submitted to the appropriate Regional Office. Applications are currently being accepted and can be submitted until further notice.

Reference: Training and Employment Guidance Letter No. 7-93 dated April 19, 1994. Background: TEGL No. 7-93 provided information on the NAFTA-Title III program and the benefits and services available for NAFTA-impacted workers who would not be eligible to receive assistance under the NAFTA-TAA program. In response to inquiries from States concerning the NAFTA-Title III program, clarifications are being provided on eligibility for needs-related payments. Discussion: Under the NAFTA-Title III program funded with National Reserve funds, the date of last layoff, rather than the initial benefit period used under NAFTA-TAA, is used to determine eligibility for income support payments. If a dislocated worker has experienced a series of layoffs and callbacks, this could result in the individual being eligible for such payments under NAFTA-Title III. The list of extenuating circumstances which would allow the additional 30-day grace period for meeting the required time for enrolling in training is the same for NAFTA-TAA and NAFTA-Title III programs. The intent in TEGL 7-93 was that the same list apply. If an individual's training enrollment date is 1) past the end of the 16th week, or the sixth week after the Secretary has issued a certification (whichever is later); and 2) past the 30 days grace period added to the 16 weeks/6 week cutoff if extenuating circumstances apply, the individual is not eligible for income support payments under either the NAFTA-TAA (using the initial UI benefit period) or NAFTA-Title III program (using the date of last layoff).

Reference: National Defense Authorization Act (NDAA) for Fiscal Year 1993, P.L. 102-484, section 4467; interim final JTPA regulations published in the December 29, 1992 Federal Register (57 FR 62004-62073). Background: On October 23, 1992, the President signed into law the National Defense Authorization Act for Fiscal Year 1993. Included were amendments to Title III of JTPA. The NDAA amendments became effective immediately upon signature by the President. Discussion: The JTPA regulations that were published on December 29, 1992 include revisions required by the amendments in the NDAA. While the interim final JTPA regulations apply to JTPA programs in Program Year 1993 which begins on July 1, 1993, the relevant provisions of the interim final regulations can be useful when determining the immediate impact of the NDAA Amendments, as well. The NDAA amendments to Title III of JTPA are provided below, along with the relevant provisions of the interim final JTPA regulations. STATE PLAN A. Section 311(b)(3)(D) has been amended to read as follows: "The State unit will . . . provide technical assistance and advice to sub state grantees, including immediate notification to sub state grantees of current or projected permanent closures or substantial layoffs in the sub state area of such grantee to continue and expand the services initiated by the rapid response teams;" 631.30(a)(8) of the interim final regulations reads as follows: "The State dislocated worker unit or office shall...Immediately notify (within 48 hours) the appropriate sub state grantees following receipt of an employer notice of layoff or plant closing or of any other information that indicates a projected layoff or plant closing by an employer in the grantee's sub state area, in order to continue and expand the services initiated by the rapid response team (Section 311(b)(3)(D);" B. Section 311(b)(11) has been added and reads as follows: "the State unit will provide the Secretary with a cost breakdown of all funds made available under this title used by such unit for administrative expenditures;" 631.15 of the interim final regulations reads as follows: "Notwithstanding the requirements described in Subpart D of Part 627 of this chapter, the Governor shall report to the Secretary pursuant to instructions issued by the Secretary for programs and activities funded under this part. Such reports shall include a cost breakdown of all funds made available under this part used by the Dislocated Worker Unit for administrative expenditures, in accordance with instructions issued by the Secretary. Reports shall be provided to the Secretary within 45 calendar days after the end of the report period. (Sections 165(a)(2) and 311(b)(11))" C. Section 311(b)(12) has been added and reads as follows: "the State will not transfer the responsibility for the rapid response assistance functions of the State unit under Section 314(b) to another entity, but the State may contract with another entity to perform rapid response assistance services." ~631.30(b) of the interim final regulations reads as follows: "The dislocated worker unit shall have one or more rapid response specialists, and the capability to provide rapid response assistance, on-site, for dislocation events such as permanent closures and substantial layoffs throughout the State. The State will not transfer the responsibility for the rapid response assistance functions of the State dislocated worker unit to another entity, but the State may contract with another entity to perform rapid response assistance services. Nothing in this paragraph shall remove or diminish the dislocated worker unit's accountability for ensuring the effective delivery of rapid response assistance services throughout the State. (Section 311(b)(12))" RAPID RESPONSE D. Section 314(b)(3) has been added and reads as follows: "The Secretary shall oversee the administration by each State of the rapid response assistance services provided in such State and the effectiveness, efficiency, and timeliness of the delivery of such services. If the Secretary determines that such services are not being performed adequately, the Secretary shall implement appropriate corrective action, including, where necessary, the selection of a new rapid response assistance service provider." 631.17 of the interim final regulations reads as follows: "The Secretary shall conduct oversight of State administration of programs under this part, including the administration by each State of the rapid response assistance services provided in such State. The Secretary may review and determine the effectiveness, efficiency and timeliness of service conducted by the State in accordance with 631.30(b) of this part, and may specify any corrective actions deemed appropriate and necessary. (Section 3l4(b)(3))" E. Section 314(b)(4) has been added and reads as follows: "For purposes of rapid response assistance provided by a State dislocated worker unit, the term 'substantial layoff' means a layoff of 50 or more individuals." 631.2 of the interim final regulations includes the following: "Substantial layoff (for rapid response assistance) means any reduction-in-force which is not the result of a plant closing and which results in an employment loss at a single site of employment during any 30 day period for at least 50 employees (excluding employees regularly working less than 20 hours per week). (Section 314(b)(4))" 631.30(b)(6) of the interim final regulations reads as follows: "Notwithstanding the definition of 'substantial layoff (for rapid response assistance)' at 631.2 of this part, the Governor may, under exceptional circumstances, authorize rapid response assistance provided by a State dislocated worker unit when the layoff of 50 or more individuals is not at a single site of employment or is not during a single 30 day period. For purposes of this provision, "exceptional circumstances" include those situations in which layoffs or permanent closures would have a major impact upon the community(ies) in which they occur. (Section 314(b))" NEEDS-RELATED PAYMENTS F. Section 314(e)(1) has been amended to read as follows: "Funds allocated to a sub state grantee under section 302(D) may be used pursuant to a sub state plan under section 313 to provide needs-related payments to an eligible dislocated worker who is unemployed and does not qualify or has ceased to qualify for unemployment compensation in order to enable such worker to participate in training or education programs under this Title...." 631.20 of the interim final regulations reads as follows: "Title III funds . . . may be used to provide needs-related payments to . . . [a]n eligible worker who has ceased to qualify for unemployment compensation . . . Needs-related payments shall not be provided to any participant for the period that such individual is employed, enrolled in or receiving on-the-job training, out-of-area job search, or basic readjustment services in programs under the Act, nor to any participant receiving trade readjustment allowances, on-the-job training, out-of-area job search allowances, or relocation allowances under Chapter 2 of Title II of the Trade Act of 1974 (19 U.S.C. 2271 et seq.) or Part 617 of this chapter. (Section 314(e)(1))" CLARIFICATION OF DEFINITION OF ELIGIBLE DISLOCATED WORKERS FOR CERTAIN SERVICES. G. Section 314(h) has been added and reads as follows: "CLARIFICATION OF DEFINITION OF ELIGIBLE DISLOCATED WORKERS FOR CERTAIN SERVICES. "(1) The term 'eligible dislocated workers' includes individuals who have not received specific notice of termination or lay off and work at a facility at which the employer has made a public announcement that such facility will close (except those individuals likely to remain employed with the same employer or likely to retire instead of seeking new employment) - "(A) with respect to basic readjustment services provided under paragraphs (1) through (14), (16), and (18) of subsection (c); and "(B) with respect to services provided under this section beginning 180 days before the date on which the facility is scheduled to close. "(2) Services described in paragraph (l)(A) and provided to the individuals described in paragraph (1) shall to the extent practicable be funded under section 302(c)(1)." 631.3(b) of the interim final regulations reads as follows: "(b)(1) Except as provided in paragraph (b)(3) of this section, workers who have not received an individual notice of termination but who are employed at a facility for which the employer has made a public announcement of planned closure shall be considered eligible dislocated workers with respect to provision of basic readjustment services specifically identified in section 314(c) of the Act with the exception of supportive services and relocation "(2) Such individuals identified in (b)(1) of this section shall be eligible to receive all services authorized in sections 314 of the Act after a date which is 180 days prior to the scheduled closure date of the facility, subject to the provisions of 631.20 of this part and other applicable provisions regarding receipt of supportive services. "(3) Paragraphs (b)(1) and (b)(2) of this section shall not apply to individuals who are likely to remain employed with the employer or to retire instead of seeking new employment. "(4) For the purposes of paragraph (b)(l) of this section, the Governor shall establish criteria for defining 'public announcement'. Such criteria shall include provisions that the public announcement shall be made by the employer and shall indicate a planned closure date for the facility. (Section 314(h))" 631.41(g) of the interim final regulations reads as follows: "Basic readjustment services described in 631.3(b)(1), provided to individuals who have not received a specific notice of termination or layoff and work at a facility at which the employer has made a public announcement that such facility will close, shall to the extent practicable be funded by the State with funds reserved under 631.32(c). (Section 314(h))" TERMINATION NOTICE FOR CIVILIAN DEFENSE EMPLOYEES H. Section 325(e) has been added and reads as follows: "NOTICE OF TERMINATION FOR CERTAIN DEFENSE EMPLOYEES. "(1) In General. A civilian employee of the Department of Defense employed at a military installation being closed or realigned under the laws referred to in paragraph (2) shall be eligible for training, adjustment assistance, and employment services under subsection (a) beginning on the date on which such employee receives actual notice of termination, or the date determined by the Secretary of Defense under paragraph (3), whichever occurs earlier. "(2) CERTAIN DEFENSE LAWS - The laws referred to in this paragraph are - "(A) the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note); and "(B) title II of the Defense Authorization Amendments and Base Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note). "(3) DATE. The date determined under this paragraph is the date that is 24 months before the date on which the military installation is to be closed or the realignment of the installation be completed, as the case may be." This provision is not reflected in current regulations. 5. Action Required. States should take actions necessary and appropriate to comply with the NDAA amendments to Title III of JTPA.

References: a. The Job Training Partnership Act (JTPA), as amended; b. Goals 2000: The Educate America Act; c. School-to-Work Opportunities Act of 1994; d. JTPA Final Rules, as published in the Federal Register on September 2, 1994; e. Training and Employment Guidance Letter No. 4-94 (December 19, 1994): "JTPA Titles II-A, II-C, and III Allotments for Program Year (PY) 1994; Title II-B Allotments for Calendar Year (CY) 1995; and Wagner-Peyser Preliminary Planning Estimates for PY 1994"; f. Training and Employment Guidance Letter No. 5-93 (April 11, 1994): "Summer Challenge II: A Program of Work and Learning for America's Youth"; g. Training and Employment Information Notice No. 6-93 (July 30, 1993): "Instructions for the Title II Job Training Partnership Act (JTPA) Quarterly Financial Status Report" and Change 1 to this TEIN (January 13, 1994); h. Training and Employment Information Notice No. 33-92 (June 1, 1993): "Child Labor Restrictions Applicable to Youth Participants in Job Training Partnership Act (JTPA) Funded Programs"; i. Training and Employment Information Notice No. 25-93 (November 23, 1993): "Job Training Partnership Act (JTPA) Youth Assessment and Program Design Options Technical Assistance Guides". Background a. Budgetary Concerns. While we recognize that the House Appropriations Committee has proposed elimination of all funding for the Title II-B Summer Youth Employment and Training Program (SYETP) for CY 1995, planning for the 1995 summer youth program needs to continue in the event that final action on Department of Labor appropriations allows the Title II-B program to go forward. A successful program requires early, orderly, and careful planning, procurement, recruitment, and negotiation of agreements with local business, public/private organizations and educational institutions, as well as staff training sessions. Therefore, consistent with our regular program cycle, we are issuing this Training and Employment Guidance Letter (TEGL) to provide necessary guidance to States and local communities to facilitate program planning and operations. Federal funds, expended prior to a notice by the Department of Labor of a rescission, which were provided to States (Service Delivery Areas) to operate the 1995 summer youth program in accordance with the SDAs' job training plans will not be deobligated by the Department of Labor.

Reference: Final JTPA Regulations, 20 CFR 627.201, published in the Federal Register on September 2, 1994. Background: One of the major changes in the above-referenced September 2, 1994, JTPA final regulations is the addition of a new section, 20 CFR 627.201, "Waivers." This section, unlike the rest of the final regulations, became effective 30 days from the date of publication of the JTPA final rule in the Federal Register-- October 3, 1994. This was intended to complement the Department's desire to enable States, service delivery areas (SDA's), and Title III substate grantees (SSG's) to implement beneficial changes in the final rule as quickly as they choose, as provided for in the final rule, and to apply for waivers of regulatory provisions to be effective before the beginning of Program Year (PY) 1995 and thereafter. The purpose of the new waiver provision was to be responsive to suggestions and comments which have stated that some of the administrative burden or unintended effect of many regulatory requirements may be reduced through the granting of waivers. In addition to receiving this type of suggestion through the formal regulations comment process, the Department also heard this belief echoed during its recent "JTPA Dialogue" and dislocated worker "Next Steps" meetings. In addition, this was also recommended in Vice President Gore's Report of the National Performance Review--From Red Tape to Results: Creating a Government that Works Better & Costs Less--which was published in September 1993. The Department believes that in order to be responsive to the needs of the JTPA system, some guidance is appropriate in order to maintain consistency in the way that waivers are handled at the Federal level. Accordingly, the Department is issuing the attached guidance to assist Governors in submitting requests for JTPA regu-latory waivers pursuant to 20 CFR 627.201. The Department expects that, as experience is gained regarding specific waiver requests, information will be created which we anticipate will be useful in future policy deliberations, including possible regulatory revisions. Also, as the waiver process evolves, it may be adjusted to respond to concerns and issues that may surface in handling such requests. The States may be contacted periodically for their views on the effectiveness of the waiver process and on the ways the process might be improved and made more responsive. Action: States are requested to share the attached information with appropriate individuals within the State, as well as with their SDA's and SSG's. States are also encouraged to develop as soon as possible standardized internal procedures/mechanisms for SDA/SSG submission of waiver requests to the State, as well as procedures/processes for State evaluation of local level waiver requests. The procedures established should conform to the provisions of 20 CFR 627.201 and the information contained herein.

References: JTPA, as amended; JTPA Regulations, 20 CFR Parts 629 and 630 as published in the Federal Register on September 22, 1989; Preamble to the JTPA Interim Final Regulations, as published in the Federal Register on December 29, 1992. Background: President Clinton included an expanded and enriched summer jobs program for economically disadvantaged youth in his economic stimulus proposal announced on February 17, 1993. The House of Representatives passed a supplemental appropriation bill which provided policy guidance on the program, through both the bill itself and the Appropriations Committee Report. The Senate has the matter under consideration but, as of this writing, no final Congressional action has been taken. However, in recognition of the planning time required to design an effective program, the Employment and Training Administration (ETA) is issuing this directive to provide the JTPA system with a policy framework in which the 1993 Summer Challenge is expected to operate. As with the preliminary planning estimates issued on March l, 1993, final policy guidance awaits the enactment of the supplemental appropriation into law. At that time, the policy framework articulated in this directive will be either confirmed or modified, as appropriate. Goals for the CY 1993 Summer Program: In addition to the purposes of the Summer Youth Employment and Training Program set forth in the statute, ETA has established the following goals: a. Ensure that youth have meaningful, well-supervised work experiences which: (1) demonstrate the value of the work performed to the individual and to the neighborhood or community; (2) ensure that the youth acquire basic work competencies and discipline, such as: working and completing assignments as directed by overall leadership and front-line supervision; showing up for work regularly, on time, and with a positive attitude; working as a member of a team; demonstrating sound reasoning abilities; and exercising independent judgement. (3) reinforce the relationship between the skills acquired on the job and what is learned in an educational setting. b. Ensure that enrollees are provided academic enrichment which, at a minimum, counteracts the erosion of basic educational skills associated with the summer months and, to the extent possible, increases the level of educational skills, particularly reading and mathematics. c. Provide income for work to economically disadvantaged youth to benefit them, their families, and their communities; d. Enhance the level and quality of public services provided to distressed neighborhoods and communities; e. Achieve the stimulus objective of providing well-supervised, productive jobs to as many eligible youth as possible this summer; f. Preserve the integrity of the funds by implementing sound administrative systems (e.g., time and attendance; payroll) which can adequately absorb the program expansion; g. Use this summer's experience as a means to further enhance and enrich subsequent summer jobs programs in such areas as: (1) innovative educational components; (2) the relationship between success in the world of work and educational attainment; (3) providing year-round services to youth to preserve educational gains achieved in the summer. Key New Feature: Academic Enrichment: The President, the Congress, the Secretary of Labor and the Secretary of Education have placed a high priority on enriching academic services to maintain and improve basic educational skills for all summer youth enrollees during the school vacation period(s). a. Academic enrichment activities should typically include: (1) assessment of the basic skills and supportive services needs of each participant; (2) skill-based instruction in reading and math; (3) curricula matched to the learning levels and interests of each individual participant; (4) use of educational technology as an integral part of participant learning; (5) not less that 90 hours of academic enrichment instruction during the period of participation, except where fewer or more hours are indicated by the participant assessment; (6) pre- and post-testing of participants' reading and math skill levels and gains, utilizing instruments appropriate to an individual's age. (The use of existing test results, such as those available from a public school system, is allowable, provided that they reflect a participant's current achievement level so that gain as a result of enrollment in the Summer Challenge can be identified.) While improvement in reading, math, and other educational competencies (e.g., science) are the primary emphases, this does not preclude the provision of other services and activities which have a direct correlation with improving educational performance and/or which enhance the citizenship skills of youth. Innovative approaches to all aspects of academic enrichment, tailored to the widely varying backgrounds and skill levels of the youth, are strongly encouraged. b. In furtherance of these ends: (1) a percentage or a fixed amount of supplemental funds will be earmarked for academic enrichment activities which: (a) can be spent only on such activities; (b) cannot be part of the ten percent of Title II-B funds which can be transferred to JTPA Title II-C; (c) is expected to be spent during the CY 1993 summer program; and (d) cannot include participant wages and/or other payments for time spent in academic enrichment. [Note: Participants may be paid wages and/or other payments while attending academic enrichment activities. What is being said here is that the source of such payments cannot be the earmarked academic enrichment funds.] (2) the academic enrichment funds cannot be used to supplant other Federal, State or local funds for existing academic services or activities and such funds should be an addition to the funds expended on remediation in the CY 1992 summer jobs program. (3) to the extent feasible, public educational systems should be utilized to provide academic enrichment services; (4) to the extent feasible, certified teachers should be utilized to deliver educational services. The use of teacher assistants, teacher aides, student teachers, community-based educators, etc. is allowable; however, these personnel should perform under the direction of certified teachers and/or certified educational administrators to the extent possible. Technical Assistance and Training: The Department of Labor (DOL) and the Department of Education (DOE) are committed to providing and arranging for as much technical assistance and training as needed. a. National Practitioners Work Group. The two Departments have established a work group consisting of individuals who have been successful in providing training, employment services and academic enrichment to youth. This group will identify successful program models, refine them as needed, and advise DOL and DOE on the most effective means of assisting States and SDAs in utilizing the models. To the extent feasible, these practitioners will also directly deliver technical assistance and training. b. State Practitioners Network. States are expected to establish a State Practitioners Network comprised of representatives of State and SDA staff; public educators; service providers, including community-based organizations; and other appropriate individuals. Members of the Network should have proven expertise in youth programs. Responsibilities of this peer group Network should include: (1) Providing technical assistance and training to SDAs and, in conjunction with SDAs, service providers, in program design and operations; (2) Reviewing, to the extent feasible, the summer jobs program plans of SDAs for the purpose of advising the State JTPA administrator as to whether such plans are satisfactory, particularly with regard to academic enrichment and worksite supervision; (3) Assistance to the State in the oversight of the Summer Challenge. States can meet this requirement by using existing structures such as Youth Service/Resource Networks or other similar entities which meet the membership and functional requirements listed above. c. Redirection of Current ETA Contractors. ETA is concluding negotiations with Brandeis University and its major subcontractor, Public/Private Ventures (P/PV), to enlist their efforts to provide technical assistance and training for the 1993 Summer Challenge. (1) Brandeis will prepare a program "primer" covering all aspects of the Summer Challenge, but with particular emphasis on academic enrichment and worksite supervision. (2) P/PV will replicate its academically enriched Summer Training and Education Program (STEP) in 75 SDAs where the SDAs and States make a commitment to utilize the STEP model. Private Sector Summer Jobs Campaign: When President Clinton presented his economic stimulus proposal to a joint session of Congress, he challenged the private sector to match the public sector effort in providing jobs to needy youth. With the assistance and support of business leaders and organizations, DOL will be promoting a National private sector summer jobs campaign. But the success of such a campaign rests on the efforts of localized public/private initiatives. Accordingly, DOL and National business organizations will be working with localities to activate local private sector summer jobs campaigns. Thus far, a large number of large corporations and business associations (e.g., the U.S. Chamber of Commerce, the National Association of Manufacturers, the National Alliance of Business) are committed to working with DOL. We expect other firms and private sector organizations to join DOL in this effort. States and localities are strongly urged to mount private sector summer jobs campaigns. Program Oversight and Monitoring: If the Summer Challenge is to be met, an energized oversight and monitoring effort is required at all levels: Federal, State, SDAs, and service providers. Further, such efforts must begin during the program design phase--the relative shortness of the summer program allows precious little time for corrective action once operations begin. Oversight and monitoring of program operations is essential to avert operational crises and to keep the program operating effectively. ETA Regional Offices and the States must coordinate their oversight efforts with SDAs to avoid duplication and undue burdens on SDAs and service providers. State Role/Responsibilities: ETA anticipates that up to three percent of the funds allocated to the SDAs within a State for academic enrichment may be used by the State for program administration, technical assistance, and oversight. ETA expects that most of these funds will be used for technical assistance and oversight, as described earlier in this issuance. Reporting and Data Collection: It is clear that the Summer Challenge will create a substantial demand for information on the progress of SDAs in achieving the Summer Challenge goals, especially enrollment and expenditure data. In anticipation of these information needs, States and SDAs should make preparations to: a. Provide information on planned total enrollment and planned total expenditures for the entire summer program, broken out by overall total and academic enrichment; b. Report cumulative total enrollment and cumulative enrollment in academic enrichment activities on a bi-weekly basis; c. Report monthly expenditures, broken out by overall total and by academic enrichment; d. Maintain information on pre- and post-assessment educational attainment levels for each individual; e. Submit SYETP end-of-program reports by November 15, 1993. Evaluation: Utilizing organizations recognized as having expertise in youth programs, ETA will evaluate the 1993 Summer Challenge program against four basic objectives: a. Acquisition of work competencies; b. Prevention of educational skills erosion; c. Stimulus effect; d. Impact on neighborhoods and communities. As an integral part of its evaluation endeavors, ETA will identify program designs and operational practices which prove useful in accomplishing these objectives and the goals specified in section four of this issuance. These can then form the basis for additional program enhancements for ensuing summers. Additional information on the evaluation process will be forthcoming in a future issuance. States' and SDAs' cooperation in the evaluation process is requested. Additional Guidance: More specifics on the policy guidance presented above will be forthcoming. In addition, working through its Regional Offices, ETA will operate a question-and-answer system as an integral, but identifiable, part of its JTPA Q&A system. Readers will note the "Sum Chal" classification and number in the upper right hand corner box of this directive. Because of the high priority attached to the Summer Challenge, this identification will be used to help you keep track of all issuances generated by this program. This identification scheme amplifies, but does not change, the regular TEGL and TEIN numbering system. States are strongly urged to transmit this and other TEGLs and TEINs to the SDAs as quickly as possible. In turn, States should strongly encourage SDAs to expeditiously provide relevant guidance to service providers. Success demands a truly "team effort" and information must be shared as rapidly as possible with all of those involved in the Summer Challenge. ETA is actively exploring ways of providing information via electronic bulletin boards so that the JTPA system may be kept fully informed. However, it is not our intent to interfere in State program guidance.

Background: A number of States have inquired about whether or not it is permissible to "support or supplement" "training" funds which have been carried forward with "administration" funds allocated for another program year. More broadly, the question is how to treat any unspent funds, whether "administration" or "training" funds, which are carried forward to a subsequent program year. Many States, service delivery areas (SDAs), substate grantees (SSGs), and other subrecipients, upon receipt of their program year allocation, divide the allocation into fund accounts corresponding to the JTPA cost categories. The administration fund budget is usually set at the 15% or 20% maximum limit, and retraining services/direct training services is set at the 50% minimum limit. As costs are incurred in the delivery of program services, each fund account (cost category) is charged for its share of costs. Although SDAs/SSAs are likely to have most of a current year's allocation expended at the end of the program year, any unexpended fund balances are carried forward into the second year (or even the third year) and costs continue to be charged to each category, usually on a first-in, first-out (FIFO) basis. Section 161(b)(1) of the Act provides that JTPA funds appropriated for any program year are available for expenditure during that program year and the subsequent two program years. During the period of availability, the appropriated funds may be expended for any allowable JTPA cost, subject to the cost category limitations. Sections 108(b)(4) and 315(c) of the Act provide that of the funds allocated to a subgrantee for any program year, not more than 20% or 15% (depending on the Title) may be expended to cover the costs of administration. The JTPA regulations at 20 CFR 627.445(c)(2) and 20 CFR 631.14(g) indicate that States, SDAs and SSGs have the full three year period of fund availability to comply with the cost limitations. The relevant regulatory provisions require that expenditures be reported by program year of appropriation [20 CFR 627.455(d)(1)] and that administrative and other costs be charged to a JTPA program based on benefits received by that program [20 CFR 627.440(a)]. Interpretations: The first interpretation argues that each program year allotment is a separate grant and therefore a discrete program. In other words, if a grantee expends all of its allotted "administration" funds (20% of its PY 1 allocation) in year 1, but spends less than 100% of its allotted PY 1 "training" funds, then PY 2 "administration" funds cannot be used to support the expenditure of these carry-over "training" funds. This interpretation is based on the position that benefits derived from the expenditure of PY 1 funds on administration can accrue only to PY 1 program expenditures. Expenditure of PY 2 or PY 3 funds in support of the expenditure of PY 1 carry-over funds constitutes an impermissible "shifting of funds" in violation of 20 CFR 627.435(c). A second, alternative interpretation of the statutory and regulatory provisions gives greater weight to the three-year expenditure provisions of section 161(b)(1) of JTPA. This interpretation holds that the strict application of the "benefits received" test to individual grants has the effect of nullifying the three-year expenditure flexibility built into the statute. Under this alternative interpretation, funds from different PY appropriations may be expended along side each other for the operation of the "program" (e.g., Title II-A), as long as all other conditions governing allowability of costs are met. This means that funds appropriated for one PY are available for expenditures on "administrative costs" along side and in support of "program costs" charged to another PY allocation. Action Required: ETA will apply the second, more flexible interpretation in evaluating a State's expenditure of funds unless the State explicitly adopts the first, more restrictive interpretation. However, a State may adopt either of these two interpretations to govern the expenditure of JTPA funds in their individual States, and ETA will defer to the State's decision in this regard under 20 CFR 627.200(a)(1) of the regulations.

References: The Wagner-Peyser Act, as amended (P.L. 97-300); 20 CFR 652; TEGL No. 4-94. Background: The Secretary of Labor is issuing final planning allotments for each State's share of PY 1995 funds for basic labor exchange activities. These allotments (Attachment I) are based on the FY 1995 appropriation of $845,912,000 and are distributed by the statutory formula described in Section 6 of the Act. The allotments are also being published in the Federal Register. The data used are Calendar Year 1994 averages of civilian labor force (CLF) and number of unemployed individuals. Section 6(b)(4) of the Act authorizes the Secretary of Labor to reserve up to 3 percent of the total fund availability to assure that each State will have sufficient resources to maintain statewide employment service (ES) activities. The set-aside for distribution through an administrative formula for PY 1995 is $24,791,040. The 3 percent distribution is included in the total final allotment. The set-aside was distributed in two steps to States whose relative share of resources declined from the previous year. In Step 1, those States with a CLF below one million and that are also below the median CLF density were held harmless at 100 percent of their prior year relative share of resources. The remainder was distributed in Step 2 in pro rata shares to all other States that lost in relative share from the prior year but did not meet the size and density criteria for Step 1. Differences between preliminary and final planning estimates are caused by the use of Calendar Year data as opposed to the earlier data used for preliminary planning estimates and postage savings related to U.S. Postal Service changes in methodology of calculating charges and improved mail management practices. Postage costs incurred by States during the conduct of ES activities are billed directly to the Department of Labor by the U.S. Postal Service. The States' final allotments do not include $19,544,000 of the total amount available, which is withheld for the payment of the States' ES penalty mail costs. Action: State planning activities are to be guided by the process described in the Wagner-Peyser Act, Federal Regulations at 20 CFR Part 652, and planning guidance provided by ETA Regional Offices.