References. 20 CFR 632.4 and DINAP Bulletin 94-2 and 94-29. Background. The Department of Health and Human Services (DHHS) published revised poverty income guidelines in the Federal Register on March 4, 1996. The Job Training Partnership Act (JTPA) regulations at 20 CFR 632.4 provide for the use of DHHS poverty guidelines in determining economically disadvantaged persons and program eligibility. However, DHHS has definitions of "income" and "family" which are not applicable to the JTPA program. JTPA definitions can be found at 20 CFR 632.4. Action. The revised guidelines are effective from the date of this bulletin. Questions. Contact your DINAP Federal Representative at (202) 219-5511.

Reference. DINAP Bulletins Nos. 95-03; 95-12; 95-18; and 95-20. Background. On Thursday, July 27, 1995, the President signed the 1995 rescission bill, which became Public Law 104-19. This act eliminated all new funding for JTPA title II-B programs for the summer of 1996. However, as a result of input from a wide variety of sources, Congress became convinced of the importance of the Summer Youth program and agreed to restore some $625 million in JTPA title II-B funds for the summer of 1996. Approximately $11.4 million of this total is available to those section 401 grantees who qualify for title II-B funds. Policy. As stated in DINAP Bulletin No. 95-03 (now rescinded), all carry-in limits previously issued for title II-B funds are hereby withdrawn, including limits imposed on the deobligation of II-B funds from the now-expired 99-1/B-3 grants to the new B-5 grants which (for title II-B purposes) became effective on May 15, 1995. Grantees operating Summer Youth programs during 1996 must submit a Summer Plan for DOL approval, and will be expected to report on the expenditure of Federal funds (Financial Status Report) and program outcomes (Program Status Summary), as previously instructed, by November 15, 1996. Action. Attached are individual allocation levels for those grantees eligible to receive JTPA title II-B funds for the summer of 1996. These grantees need to submit new CY 1996 title II-B planning documents as soon as possible, due to the extremely short lead time remaining for processing and funding. To facilitate this effort, the Department will require only the following documents with the 1996 Summer Plans: (1) a new Budget Information Summary (BIS), showing actual title II-B carry-in amounts from the summer of 1995 (regardless of funds source); (2) a new Program Planning Summary (PPS); (3) a new grant signature sheet (attached), with the appropriate boxes checked under the Summer Plan section; and (4) a new narrative portion, if?necessary. Grantees wishing to omit the narrative and operate essentially the same title II-B program as they operated during 1995 need only check line a. "Program substantially unchanged from CY 1995". Because the procedures accompanying DINAP Bulletin No. 95-20 are now obsolete, all grantees eligible to receive title II-B funds MUST submit the above-referenced documents, whether or not they have already submitted paperwork pursuant to Bulletin 95-20. New Summer Plans must be sent as soon as possible to the following address: U.S. Department of Labor Employment and Training Administration Division of Indian and Native American Programs Room N-4641 FPB 200 Constitution Avenue, N.W. Washington, D.C. 20210 ATTENTION: SUMMER PLANS DESK Questions. Contact your DINAP Federal Representative Team.

References. P.L. 97-300, Section 4(8) (JTPA); and Internal Revenue Code, Section 51 (TJTC). Background. JTPA regulations at 20 CFR 632.4 provide for the use of either of two sets of data in determining economically disadvantaged persons and program eligibility: the Health and Human Services Poverty Guidelines or the LLSIL. The attached Federal Register Notice (Vol. 61, No. 65) contains updated LLSIL and detailed instructions for their use, effective April 3, 1996. Action. Grantees will use one of the three tables on pages 14825 and 14826 of the Notice to find their 70 percent LLSIL for a family of four. Those grantees in one of the 25 Metropolitan Statistical Areas will use Table 3; grantees in Alaska or Hawaii will use Table 2; all other grantees will use Table 1. Grantees using Table 1 can find which region they are in by referring to the list on page 14824. Grantees using Tables 1 or 2 must also determine if they are in a metro or non-metro area; this information can be obtained from the grantee's State JTPA. Having found the applicable 70 percent LLSIL for a family of four on Tables 1, 2 or 3, the grantee can then find the 70 percent LLSIL for a family larger or smaller than four on Table 4. For example: a grantee in a non-metro area of Arizona is in the "West" region. On Table 1 its 70 percent LLSIL is 18,270. To find the applicable 70 percent for a family of six, the grantee finds 18,270 in column "four" of Table 4 and reads across that line to Column "six" to find 25,210. Grantees should note the disclaimer on page 14825 that the figures in this notice are valid only for eligibility determination under the JTPA and TJTC programs and should not be used for any statistical purposes. DINAP grantees are to disregard the instructions to Governors on page 14825 in the paragraph entitled "Use of These Data." Questions. Contact your DINAP Federal Representative at (202) 219-5511

References. DINAP Bulletin No. 94-26; A Guide to Smartlink II, Enclosure (1), SUB-ACCOUNT STRUCTURE AND PROGRAM YEAR AND TITLE CODES. Background. Within the next few weeks, most section 401 grantees will be receiving their signed grant documents and Notices of Obligation (NOO's), which will authorize them to operate title II-B programs for the summer of 1996 and title IV-A programs for PY 1996. Grantees who use the PMS to draw down their JTPA funds will need to know and use the following subaccount 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. Action. The new subaccount code for PY 1996 title IV-A funds will be 8L. Because of funding uncertainty and delays, the subaccount code required to access title II-B funds for the summer of 1996 will be 8K, not 6Y as indicated in last year's DINAP Bulletin No. 94-26. The title II-B subaccount corresponds to the planning levels (printout) transmitted to all grantees with DINAP Bulletin No. 95-24. Important Reminders. A. All other previously-issued subaccount codes remain the same, including the "split" subaccounts for title II-B funds for the summer of 1993. As a reminder, the subaccount code for PY 1994 title II-B funds is 5J, and the subaccount code for PY 1995 title IV-A funds is 6X. 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." B. Because all carry-in limits have been officially removed, the only exception to the "First In, First Out" (FIFO) rule is when a grantee is transferring funds between different grants (such as from the 99-1 grant to the B-5 grant) and wishes to leave the exact amount to be transferred (by title) in the appropriate subaccount to facilitate the transfer process. Effective date. Date of this bulletin. Inquiries. Questions should be addressed to William Stewart on (202) 219-7798, Karen Tekleberhan on (202) 219-8764, Julia Murray on (202) 219-8793, or Greg Gross on (202) 219-7509.

Refernce. DINAP Bulletins Nos. 95-12 and 95-18. Background. DINAP Bulletin No. 95-18 issued initial Title IV-A planning levels based on the House funding level of $50 million. The recently-signed DHHS/DOL/DOE appropriation bill contained a revised JTPA Title IV-A funding level of $52.502 million for PY 1996. Policy. As stated on page 3 of DINAP Bulletin No. 95-18, all carry-in limits previously issued for Title IV-A funds have been withdrawn, including limits imposed on the transfer of Title IV-A funds from the now-expired 99-1 grant (July 1, 1991 to June 30, 1995) to the new B-5 grants which (for Title IV-A purposes) became effective on July 1, 1995. Action. A. FOR GRANTEES THAT HAVE NOT SUBMITTED A PY 1996 CAP: -- Attached are final allocation levels for JTPA Title IV-A funds for PY 1996. Grantees should use the increased allocation levels to complete their planning documents prior to submission to DINAP. -- The due date for submitting CAPs has been extended to May 22, 1996. B. FOR GRANTEES THAT HAVE ALREADY SUBMITTED A PY 1996 CAP: -- Grantees who have already submitted their CAPs to DINAP need ONLY submit a new original revised Budget Information Sheet (BIS). DINAP will accept a faxed revised BIS (Fax number: 202-219-6338). - A new grant signature sheet IS NOT required - A revised BIS is due by the new CAP due date of May 22, 1996. C. IMPORTANT REMINDERS: -- Grantees that have carry over funds from their 99-1 grant must submit a transfer modification, as requested in DINAP Bulletin No. 95-12. If you have already done so, thank you; however, for those grantees that have not, failure to do so will delay the issuance of a Notice of Obligation for PY 1996 Title IV-A funds. -- Grantees that submit their PY 1996 CAPs or revised BIS forms late, the Department will deduct one week's worth of funding for every week late. If your CAP or revised BIS form is going to be submitted late, you need to contact Mr. Thomas Dowd, DINAP Chief on (202) 219-8502 IMMEDIATELY. D. All CAPs and revised BIS forms should be sent by May 22, 1996, to the following address: U.S. Department of Labor Employment and Training Administration Division of Indian and Native American Programs Room N-4641 FPB 200 Constitution Avenue, N.W. Washington, D.C. 20210 ATTENTION: MIS DESK Questions. Contact your DINAP Federal Representative Team.

References: JTPA Regulations at 20 CFR Parts 632 and 636; Federal Register, Vol. 60, No. 227, Monday, November 27, 1995 (60 FR 58228-9). Background: Because of new employment and training legislation pending before Congress, it was decided not to implement an entirely new set of JTPA Section 401 regulations. However, because the one really innovative Section of the current draft proposed Section 401 regulations involves the insertion of a general waiver capability, the Department and Advisory Council/Partnership Plan members agreed that publication of this general waiver provision as an amendment to the current regulations would be sufficient to enable grantees to improve their programs as in the revised draft proposed regulations. With this in mind, the Department published the general waiver section as an amendment to the 1983 program regulations on November 27, 1995. The Office of Management and Budget (OMB) recently approved this amendment, thereby giving Section 401 grantees the opportunity to request waivers for Program Year (PY) 1996. Policy: It is the Department's policy that a grantee may request a waiver to any regulatory or program requirement not contained in statute, whether JTPA or other legislation. However, grantees must be prepared to show how granting the requested waiver will improve program results/outcomes and enable them to provide better services to their participants. Information: It is the Department's intent to make this waiver process as simple as possible. To that end, waiver requests should be as concise as practicable and not involve a lot of paperwork. The Department is concerned with the quality of the waiver request, not the quantity of paper which can be submitted to support any individual request. The Department will not specify specific procedures or parameters for waiver requests, beyond the requirement that the request contain sufficient information to enable the Department to make an informed decision regarding the merits of each specific waiver requested. Attachment 1 is the text of 20 CFR 632.70. As the public comment period has not yet expired, grantees wishing to provide comments on any aspect of the general waiver provision should submit their responses. Attachment 2 contains general guidance on requesting the waiver of specific sections of the regulations. Attachment 3 is a list of requirements for the Section 401 program which may not be waived for statutory reasons, and a list of those items which may be waived. Attachment 4 is an optional waiver request form which grantees may find useful in submitting their waiver requests.

References: Federal Register, Vol. 61, No. 96, Thursday, May 16, 1996, Notices. Background: The Departments of Labor and Education are reserving funds appropriated for FY95 under the School-to-Work Opportunities Act, Public Law 103-239 for a competition for Indian Program Grants authorized under Title II, Subtitle C of the Act. Grants under this competition will be awarded to local partnerships that serve Indian youth and involve Bureau of Indian Affairs (BIA) funded schools. Approximately $650,000 is available for awards as explained in the attached Federal Register Notice. The following implementation grants were awarded in June 1995: Alamo Navajo School Board, New Mexico; Delaware Tribe of Western Oklahoma, Oklahoma; Puyallup Tribe of Indians and Yakama Indian Nation, Washington; and Lac Courte Oreilles, Wisconsin. Additionally, four development grants were also awarded to: Tohono O'Odham High School and Pascua Yaqui Tribe, Arizona; Hannahville Indian Community, Michigan; and St. Stephens Indian School, Wyoming. Action: Applications for grant awards will be accepted commencing May 16, 1996. The closing date for receipt of applications is July 15, 1996, at 2 p.m. (Eastern Time). Telefacsimile (FAX) applications will not be honored.

References: None. Background: Attached is a Memorandum from Assistant Secretary Timothy Barnicle soliciting your comments and suggestions on a proposed Strategic Plan for guiding ETA, its partners, and its stake-holders over the next few years. The Strategic Plan, which is being developed pursuant to the Government Performance and Results Act (GPRA), is presented as an attachment to the Memorandum. The draft Plan proposes a continuation of the PY 1995 goals through PY 1998. The PY 1995 goals are contained in the attached 1996 ETA Performance Agreement. Action Required: Section 401 grantees should take the time to review these attachments and provide us with your suggestions and insights. Since comments are expected in ETA by July 5, 1996, your immediate attention to this will be appreciated so that we may have the benefit of your insights. Section 401 grantees should send comments directly to DINAP, ATTN: Mr. Thomas M. Dowd, Chief, at the following address: Division of Indian and Native American Programs U.S. Department of Labor/ETA Room N-4641 FPB 200 Constitution Avenue, N.W. Washington, D.C. 20210

References. DINAP Bulletin 84-14, Master Plan System Instructions, p.9, Item (g); 20 CFR 632.81; 20 CFR 632.83; 20 CFR 632. 28(e); Job Training Partnership Act, -Section 142, October 13, 1982, P.L. 97-300. Background. Under JTPA, there are three types of payments which are made directly to participants and may be considered by the IRS as income for services rendered. They are: (a) wages paid by employers to individuals participating in on-the-job training programs; (b) wages paid by grantee to individuals participating in work experience programs; and (c) "needs-based payments" paid by the grantee to individuals participating in a variety of other authorized activities. The Department of Labor (DOL) requested the IRS to provide guidance on the tax treatment for these various payments to participants. This bulletin transmits the guidance provided by IRS on these issues. Action. Attached for your information is a copy of the IRS response to the DOL on the tax treatment of various payments to participants enrolled in JTPA activities. while the opening paragraph in the IRS letter indicates that IRS cannot provide any rulings on JTPA payments to participants at this time, the balance of the letter and further discussions by DOL staff with IRS staff indicated that the rulings cited in the response can be used as general guidance in determining the tax treatment for JTPA payments to participants. The attached letter provides significant guidance with respect to the three types of payments. IRS cautions that it is important to apply the tax principles to particular situations and not to apply them generally to all situations. The facts pertaining to each situation could be important. If there are concerns about particular circumstances, it is recommended that the circumstances be discussed with the local IRS office. Inquiries. Please address questions concerning this bulletin to your DINAP Federal Representative.

References: DINAP Bulletin No. 95-27; A Guide to Smartlink II, Enclosure (1), SUB-ACCOUNT STRUCTURE AND PROGRAM YEAR AND TITLE CODES. Background: Most section 401 grantees have already received their signed grant documents and Notices of Obligation (NOO's), which authorize them to operate title II-B programs for the summer of 1996 and title IV- A programs for PY 1996. Grantees who use the PMS to draw down their JTPA funds will need to use the following subaccount 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. Action: The new subaccount code for PY 1996 title IV-A is 8P, not 8L as previously announced in DINAP Bulletin No. 95-27. The subaccount code required to access title II-B funds for the summer of 1996 remains 8K. JTPA section 401 grantees should use these subaccount codes to draw down 1996 funds. Important Reminders: A. All other previously-issued subaccount codes remain the same, including the "split" subaccounts for title II-B funds for the summer of 1993. 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." B. Because all carry-in limits have been officially removed, the only exception to the "First In, First Out" (FIFO) rule is when a grantee is transferring funds between different grants (such as from the 99-1 grant to the B-5 grant) and wishes to leave the exact amount to be transferred (by title) in the appropriate subaccount to facilitate the transfer process. C. Grantees wishing to transfer funds from the 99-1/B-3 grant to the B-5 grant who have not already done so, should submit their transfer modifications to DINAP as soon as possible, pursuant to the instructions contained in DINAP Bulletin No. 95-12. Inquiries: Questions should be addressed to Ms. Karen Tekleberhan on (202) 219-8764 or Mr. Greg Gross on (202) 219-7509.