Submission for OMB Emergency Review; Comment Request

DEPARTMENT OF LABOR

Office of the Secretary

Submission for OMB Emergency Review; Comment Request

AGENCY: Employment and Training Administration, Labor.

ACTION: Supplemental information.

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SUMMARY: In notice document 97-1226 beginning on page 2689 in the issue

of Friday, January 17, 1997, and in notice document 97-1228 beginning

on page 2689, the supplemental information is being provided.

On January 14, 1997, the Department of Labor submitted an emergency

processing public information collection request (ICR) to the Office of

Management and Budget (OMB) for review and clearance under the

Paperwork Reduction Act of 1995 (Pub. L. 104-13, 44 U.S.C. Chapter 35).

As indicated, a copy of the applicable supporting documentation, may be

obtained by calling the Department of Labor Acting Departmental

Clearance Officer, Theresa M. O'Malley ((202) 219-5096, x. 143).

However, to assist persons interested in reviewing the documents

contained in these emergency processing public information collection

requests, the Department of Labor is publishing the text of the two

draft Training and Employment Guidance Letters.

Dated: January 21, 1997.

Theresa M. O'Malley,

Departmental Clearance Officer.

Directive: Training and Employment Guidance Letter No.

To: All State JTPA Liaisons, All State Worker Adjustment Liaisons, All

State Employment Security Agencies, All One-stop Career Center System

Leads

From: Barbara Ann Farmer, Administrator for Regional Management

Subject: Workforce Flexibility (Work-Flex) Partnership Demonstration

Program

1. Purpose. To announce the request for applications from States

for the Workforce Flexibility (Work-Flex) Partnership Demonstration

Program.

2. Background. The 1997 Department of Labor's Appropriations Act

(Public Law 104-208) authorizes the Workforce Flexibility (Work-Flex)

Partnership Demonstration Program. This directive transmits the

excerpts from the draft Federal Register Notice describing the process

for submittal of applications.

The appropriations legislation provides that the Secretary of Labor

may authorize Work-Flex demonstration program for provision of

workforce employment and training activities in ``* * * not more than

six States, of which at least three States shall each have populations

not in excess of 3,500,000 * * *''. The Work-Flex waiver may be for a

period of up to five years. Under this provision, the Secretary would

authorize a State ``to waive any statutory or regulatory requirement

applicable to service delivery areas or substate areas within the State

under titles I-III of the Job Training Partnership Act, with certain

exceptions and ``any of the statutory or regulatory requirements of

sections 8-10 of the Wagner-Peyser Act''.

The legislation authorizes the granting of the Work-flex waiver to

a state pursuant to a plan submitted by the State and approved by the

Secretary. Preference is to be given to States that have been

designated as Ed-Flex partnership States under section 311(e) of Public

Law 103-227. Excerpts from the draft Federal Register Notice which

announces this application process is attached.

Unlike the legislative provisions for Ed-Flex, the legislative

report language for Work-flex does not permit the Secretary of Labor to

consider State waiver requests. Instead, such authority is restricted

to the general waivers provisions. To address this deficiency, States

may submit both a Work-flex application and a general waiver request at

the same time. While there are differences in time coverage and

exceptions for the two sets of waiver authorities, a combined request

would permit a State to obtain waivers for both the State level and the

service delivery area/substate level for a minimum of one year. We are

entertaining joint submissions to permit streamlined submission and to

facilitate the objectives of the overall waiver authority. If the

general waiver authority is continued, then subsequent approvals of

State waiver requests could be continued.

3. Process for Submitting Applications. Applications will be

accepted by the Department until March 28, 1997. After that date,

proposals will

[[Page 3917]]

be accepted only if fewer than six States apply or fewer than three

with a population under 3,500,000 or fewer than six applications

received by that date are approved by the Secretary.

4. Action Required. States which are interested in obtaining

authority to grant waivers under the legislative authority provided

must follow the requirements contained in the attached excerpts from

the draft Federal Register Notice.

5. Inquiries. Questions regarding this directive should be referred

to your Employment and Training Administration regional office.

6. Attachment. Excerpts from the draft Federal Register Notice.

Background

The Work-Flex program is a demonstration program under which the

Secretary may grant six States the authority to waive certain statutory

may grant six States the authority to waive certain statutory or

regulatory requirements applicable to service delivery areas or

substate areas within the State under titles I-III of the Job Training

Partnership Act (JTPA) or sections 8-10 of the Wagner-Peyser Act (W-P

Act). The legislation also contains certain provisions that may not be

waived under the JTPA and the W-P Act. The types of these non-waivable

provisions and the specific provisions are discussed below.

The granting of authority to issue waivers is intended to provide

flexibility to States to enhance the development of a comprehensive

work force development system and to improve the quality and quantity

of outcomes for persons served. The legislation provides that at least

three of the six States shall have a population not in excess of

3,500,000 and that preference be given to States designated under Ed-

Flex. The proposal must provide a description of the process by which

service delivery areas and substate areas may apply for and have

waivers approved, the requirements of JTPA and the W-P Act to be

waived, the outcomes to be achieved, and the measures to be taken to

ensure appropriate accountability for Federal funds.

The Department is very interested in working with States within the

statutory authority to make improvements in the work force delivery

system. To this end, the Department wants the States to know it will

actively consider applications which will assist the State and its

local service delivery structure in implementing structure work force

delivery system improvements. The Department of Labor's guiding

principles for reform of the job training systems include:

Individual Opportunity and Customer Choice. Empowering

participants who need employment and training services with the

resources and information needed to make good choices.

Leaner Government. Replacing separate programs with

streamlined systems for youth and adults, organized around the

principles espoused by the School-to-Work and One-Stop concepts.

Greater Accountability. Ensuring a clear focus on results,

not process, through mutually agreed upon improved performance

outcomes.

State and Local Flexibility. Providing States, local

communities and training systems with the freedom to tailor programs to

meet real, locally determined needs.

Strong Private Sector Roles. Ensuring that business, labor

and community organizations are full partners in systems design and

quality assurance.

Finally, the Department wishes to remind the States of the

importance, especially within the School-to-Work framework, of

providing work opportunities, especially during the summer months to

disadvantaged youth.

Application Requirements and Criteria

1. Who may apply and when may applications be submitted? Any State

may apply for designation as a Work-Flex State. As required under the

legislation and as discussed below, preference will be given to States

designated as Ed-Flex States. Initially, applications will be received

until March 28, 1997. Since the Secretary may delegate waiver authority

to only six States, applications will be accepted after that date only

if fewer than six States apply, or if fewer than three States apply

with a population under 3,500,000 or if fewer than six States are

approved for designation as Work-Flex States.

2. What Information should be included in a State's Work-Flex

proposal? To be considered for designation as a Work-Flex State, the

Governor, or agency administrator with jurisdiction over both the JTPA,

titles I-III, and the WPA agency must submit an application to the

Secretary. This application must include the following:

a. Plan. A plan for the provision of workforce employment and

training activities for the State.

b. JTPA Requirements. A description of the process by which service

delivery areas and substate areas may apply for and have waivers

approved, including the criteria for approval and examples of the

waivers which will be considered for approval; and

c. W-P Act Requirements. A description of the specific requirements

in Sections 8, 9 and 10 of the W-P Act and applicable regulations to be

waived.

d. Specific Elements to be Addressed. To be responsive to the

above, the application must contain a specific description of the

process and requirements for JTPA and W-P Act waivers (as appropriate),

including:

(1) Identification of the State official who would have authority

to grant requested waivers, including documentation that the State has

granted the official such authority;

(2) Requirements for application for a waiver by service delivery

areas and substate areas;

(3) Identification of the JTPA provision(s) for which the waiver(s)

will likely be requested (either specific, if known, or examples);

(4) Description of the criteria for approval of waivers;

(5) Process for providing an opportunity for public review and

comment;

(6) Requirement(s) for identification of improvement in outcomes to

be expected as the result of granting a waiver;

(7) Measures to be taken to ensure the appropriate accountability

for federal funds;

(8) Procedures that the State will use to monitor and evaluate the

implementation of waivers by local areas, including the outcomes to be

achieved;

(9) A statement that there are no state legislative, regulatory or

other impediments to administration of the waiver authority sought; and

(10) Assurance that the state has the capacity to administer the

waiver system.

As provided in the legislation, certain provisions are not subject

to waiver under Work-flex. For the JTPA, these include requirements

relating to wage and labor standards, grievances procedures, judicial

review, nondiscrimination, allotment of funds and eligibility. Also,

since waiver authority must be requested by and granted to service

delivery areas or substate areas, state responsibilities or programs

operated under statewide authority are not subject to waiver. For

example, this includes designation of service delivery areas or

substate areas, the state planning process, the State Education

Coordination and grants under section 123, the Services to Older

Individuals under section 204(d), the Title III funds reserved for

state

[[Page 3918]]

activities (Governors' Reserve) under section 302(c) and grants awarded

to States with Title III National Reserve Account (NRA) funds. Note:

Some provisions (such as certain States responsibilities) not subject

to waiver under the Work-flex authority may be eligible for waiver

under the other new statutory or regulatory waiver authority included

in the Appropriations Act. For example, a State may apply for waivers

for State based programs. States must apply separately for such

waivers.

For the W-P Act, only the requirements of sections 8-10, which

relate to the development, review and approval of State plans,

recordkeeping and reporting are waiverable. The law also specifically

excludes from waivers any such requirements relating to provision of

services to unemployment insurance claimants and veterans and to

universal access to basic labor exchange services without cost to job

seekers.

c. Public Consultation and Comment Process. The Department expects

the State to involve the local elected officials, the private industry

councils, and community-based organizations and other stakeholders in

the process when developing the application. Consistent with the

general waiver request, the State must provide interested parties an

opportunity to review and comment on the proposed application. At a

minimum, the following groups must be afforded the opportunity to

review and comment on the proposed application; (1) The State Job

Training Coordinating Council; (2) each house of the State legislature;

(3) local elected officials and Private Industry Councils; (4)

appropriate local education and other public and non-profit agencies in

the service delivery areas; and (5) labor organizations in the area

which represent employees having the skills in which training is

proposed. Also, the proposed application must be made reasonably

available to the general public through such means as public hearings

and local news facilities.

The Work-Flex authority is intended to provide States with the

ability to enhance the development of a comprehensive workforce

development system, including implementation of the one-stop Career

system and the School-to-Work system. Another area of importance is the

area of improving both the quality and quantity of outcomes of

individuals served. Both of these will be of substantial importance in

reviewing of proposals requesting the granting of the Secretary's

authority for issuing waivers under Work-flex.

Criteria for Evaluation of Work-Flex Applications

Criteria for evaluation of Work-Flex proposals include:

1. Plan and Outcomes. The extent to which the authority sought will

result in:

a. Improving the outcomes to persons served, and

b. The enhancing implementation of a comprehensive workforce

development system in one or more areas.

The extent to which the authority sought will enhance the

implementation of the One-Stop Career Center system and/or the School-

to-Work System will be major factors in the evaluation of proposals.

2. Responsiveness. The extent to which the application meets the

requirements of the legislation and this Notice for submission of an

application. This includes the quality of the process for reviewing and

approving local applications for waivers and for documenting and

monitoring the results of waivers.

3. Accountability of Funds. Measures to be taken to ensure the

accountability of federal funds, including monitoring, evaluation and

reports.

4. Preference for Ed-Flex States--Tie-Breaking Procedures.

Proposals will be evaluated based on the quality and specificity of the

proposal. In the event that proposals submitted are judged to be

substantially equal, preference will be given to States previously

designated as Ed-Flex States.

5. Public Comments. All comments received on the application should

be forwarded with the application to the Department of Labor.

Conditions

1. Federal Review of Work-Flex Waivers Granted. In applying for

waivers, States must recognize that the impact of the use of Work-Flex

authority to achieve goals and outcomes specified in the State proposal

will be reviewed annually against stated goals. The Department reserves

the right to withdraw the authority to issue waivers if: Goals

specified are not met for two consecutive years; use of the waiver

authority is abused; or the state grants waivers for non-waivable

provisions.

2. Duration and Coverage. Work-flex authority may be granted for up

to five years. States granted such authority may approve waivers

requested from all service delivery areas or substate areas or selected

areas.

3. Notification of the Granting of Waivers. States will be required

to submit reports on a quarterly basis concerning the administration of

the waiver authority and on the accomplishments under this authority.

States shall notify the appropriate ETA Regional Administrator of the

granting of a waiver(s) each quarter. This notification shall include

the area for which the waiver is granted, the provision of legislation

and/or regulations waived and the duration of the waiver.

4. Federal Assistance. States are encouraged to regularly consult

with the ETA Regional office regarding any matters in which the

discussion and assistance in the Work-Flex administration would be

useful. Because Work-Flex is an important demonstration program with

implications for future job training and employment service delivery,

it is important that Work-flex be tested to ensure that appropriate

accountability can be maintained. ETA regional staff will be

responsible for providing information on Work-flex administration and

implementation. States granted Work-flex authority will be required to

work closely--on an ongoing basis--with Regional Office staff so that

both the federal and State partners are fully informed on the status

and issues under Work-flex. States may be asked to participate with ETA

staff in designing and conducting an evaluation of the effectiveness of

Work-flex.

Directive: Training and Employment Guidance Letter No.

To:

All JTPA State Liaisons

All Wagner-Peyser Administering Agencies

All State Worker, Readjustment Liaisons

All One-Stop Career Center System Leads

From: Barbara Ann Farmer, Administrator for Regional Management

Subject: Guidelines for Implementing Job Training System Improvements

through Waivers of the Job Training Partnership Act (JTPA) and the

Wagner-Peyser Act

1. Purpose. To transmit guidance for the development and submission

of a request for waiver of JTPA and Wagner-Peyser Act general

statutory/regulatory provisions.

2. Reference. The Department of Labor Appropriations Act of 1997

(Pub. L. 104-208 sections 101(e) and 105); Training Employment and

Information Notice No. 11-96, Statutory and Regulatory Waiver Authority

of the JTPA and the Wagner-Peyser Act.

3. Background. The Department of labor Appropriations Act for 1997,

(Pub. L. 104-208) contains three provisions relating to waivers:

[[Page 3919]]

a. General Statutory/Regulatory Waiver Authority for JTPA & Wagner-

Peyser;

b. The Work-Flex Partnership Demonstration Program; and

c. Continuation of the existing waiver authority for the State of

Oregon.

These guidelines do not address the continuation of the Oregon

waiver provision or the Work-Flex Partnership Demonstration Program. A

separate TEGL will be issued on Work-Flex.

The Statutory/Regulatory Waiver provision gives the Secretary

authority to grant both statutory and regulatory waivers of JTPA

(titles I-III) and Wagner-Peyser Act (Sections 8-10) and contains

``exclusions,'' i.e., provisions that may not be waived. The general

waiver authority is for a period of one program year beginning July 1,

1997 and provides:

Increased flexibility to States and local areas in

implementing reforms to the workforce development system in exchange

for accountability for results including improved performance.

An important opportunity for States and localities to

begin or continue to organize services into a workforce development

system through the concepts of One-Stop Career Centers and School-to-

Work systems which enhance the training and employment opportunities

available to adults and youths.

4. Principles for Further Reforms of the Job Training System. The

Department of Labor's (DOL) guiding principles for providing

flexibility to the job training systems include:

Individual Opportunity and Customer Choice. Empowering

participants who need employment and training services with the

resources and information needed to make good choices.

Leaner Government. Replacing separate programs with

streamlined systems for youth and adults, organized around the School-

to-Work and One-Stop concepts.

Greater Accountability. Ensuring a clear focus on results,

not process, through mutually agreed upon improved performance

outcomes.

State and Local Flexibility. Providing States, local

communities and training systems with the freedom to tailor programs to

meet real, locally determined needs.

Strong Private Sector Roles. Ensuring that business, labor

and community organizations are full partners in systems design and

quality assurance.

The employment and training community has been provided with new

authority to build a Workforce Development System. The Department

believes that effective use of the authority will demonstrate Federal,

State and local commitment to meeting the needs of our joint customers.

5. Statutory and/or Regulatory Requirements Covered by the Waiver

Authority. The statutory and regulatory waiver authority apply to

titles I-III of the Job Training Partnership Act and to sections 8-10

of the Wagner-Peyser Act.

Exclusions. Under the waiver provisions in the 1997 Appropriations

Act the following JTPA provisions may not be waived.

a. Wage and labor standards;

b. Worker rights, participation and protection;

c. Grievance procedures and judicial review;

d. Nondiscrimination;

e. Allocation of funds to local areas;

f. Eligibility;

g. Review and approval of plans;

h. Establishment and functions of service delivery areas and

private industry councils; and

i. The basic purposes of the act.

Requirements under the Wagner-Peyser Act relating to the following may

not be waived:

a. Services to unemployed insurance claimants and veterans;

b. Universal access to basic labor exchange services without cost

to job seekers.

The Department is very interested in working with States within the

statutory authority to make improvements in the workforce delivery

system. To this end, the Department wants the States to know that it

will actively consider specific requests for waivers to remove

programmatic and administrative barriers that will result in improved

services to individuals, that will assist the State and its local

service delivery structure in implementing workforce delivery system

improvements, or that will remove requirements, either program or

administrative, that do not appear to add value to the organization or

delivery of quality services. Regional offices will work with States

regarding specific provisions of the JTPA that can or cannot be waived.

The Department cannot waive other legislation which extends the

authority provided in Public Law 104-208, other regulations, or Office

of Management and Budget Circulars which apply to the State employment

security agencies. Therefore, should a request be received for waivers

which extend beyond the existing authority, it will not be granted. In

a similar manner, the Department cannot entertain requests for

retroactive changes.

6. Policy. In developing waiver requests, States should take into

consideration that the Department will not entertain the granting of

waivers which result in the commingling of funds or which undermine

accountability, as discussed below. While, in addition to the

exclusions set forth in section 5 of this TEGL, there will be other

policy considerations that will impact the Department's decision on

granting waivers, the Department believes the areas identified in this

section to be significant enough to cite in this guidance.

a. Prohibition on Commingling of Funds. One of the purposes that

could be served with the waiver authority is to make programs almost

identical (or seamless) from the participant's perspective. For

example, a State or SDA could request that the program design

requirements for titles II-A and III be uniform. However, it also

should be noted that the waiver provisions do not authorize the

commingling of funds from separate appropriations. General

appropriations law (31 U.S.C. 1301(a)) requires that appropriations be

applied only to the objects for which the appropriations were made

unless the law otherwise provides. In this case, the waiver provisions

do not provide specific authority to merge (as opposed to transfer)

program funds. In fact, since eligibility is not waivable, it is clear

that, for example, funds appropriated to provide assistance to

dislocated workers under title III would have to be expended for that

purpose, even though the particular requirements relating to the form

of such assistance could be waived. Therefore, while the Department is

committed to assisting States and SDAs in minimizing accounting and

reporting burdens, the waiver authority does not permit the Department

to relieve these entities from the responsibility of assuring that each

appropriation is only expended for its intended purpose. Thus, while as

noted above, the waiver authority could be used to make the program

design requirements identical for titles II-A and III, the funds for

the two programs would still have to be accounted for separately.

b. Disadvantaged Youth. The Department wishes to remind the States

of the importance of serving economically disadvantaged youth during

the summer months. Given the transfer provisions, commingling of funds

does not present an issue between the title II-B and title II-C

programs. However, the Department emphasizes the importance maintaining

a summer component to serve economically disadvantaged youth during the

summer months.

[[Page 3920]]

c. Accountability. To ensure programmatic and fiscal integrity, it

is extremely important that there be both adequate oversight and

complete reporting. Reporting must be sufficient to provide a record of

individual need, the programmatic and financial outcomes achieved and

the resultant indication of success and improvement. Monitoring is key

to ensuring that the goals and objectives of both the program and any

waivers granted will be achieved. While the Department may entertain

waiver requests that pertain to reporting, it will not approve any such

request that undermines the ability to account to the Congress for

fundamental programmatic and financial outcomes or the ability to make

basic comparisons in the performance among States. Also, the Department

expects that State waiver requests will include plans to monitor

performance under the waiver(s) to assure that the anticipated goals

and objectives of the request(s) will be achieved.

7. Waiver Elements. Submission of waiver requests are voluntary. In

the event that a State desires to seek a waiver the appropriations

language requires that any such waiver request include:

a. Memorandum of Understanding (MOU). The MOU is between the

Secretary and the State (Governor) and among other things, requires the

State to ``meet agreed upon outcomes and implement other appropriate

measures to ensure accountability.'' The MOU will represent the

agreement between the Secretary and the State vis a vis the waiver and

constitute a modification to the Governor/Secretary Agreement or the ES

Master Agreement as appropriate; and

b. Waiver Plan. The Appropriations Act requires the State to

provide a minimum amount of information regarding the waiver requested

(see Item 9.b. below). The ``waiver plan'' is the State's request to

waive certain statutory or regulatory requirements. The ``waiver plan''

will be treated as a modification to the State's approved Governor's

Coordination and Special Services Plan (GCSSP) required by section 121

of JTPA, or the State's Employment and Training Assistance for

Dislocated Workers Biennial Plan, or the Wagner-Peyser Plans, whichever

is applicable.

8. Duration and Applicability of Waiver. The waivers are for one

year, starting on July 1, 1997, through June 30, 1998 and will apply to

funds available for expenditure in program year 1997. This includes

available funds from PY 1995, 1996 and 1997. While the ETA's statutory/

regulatory waiver authority is limited to one year, it is anticipated

that if the authority is extended by the Congress and the State has

used its authority prudently, then the waivers would be continued as

has been the case in other similar instances.

9. Waiver Plan Submission.

a. Development of Waiver Request. The Employment and Training

Administration (ETA) Regional Offices will be responsible for providing

guidance and assistance to the States as they are developing their

waiver requests, answering questions about the ETA waiver policy and

advising the Assistant Secretary regarding approval of the waiver

request(s). It is expected that the Regional Offices will have a

continuing dialogue with their States during the developmental stages

of waiver requests. The Regional Offices are available to review and

provide comments on draft proposals and provide assistance in

preparation of the waiver plan submission.

The Department intends that the process for development of waivers

will be in a partnership with the State. To this end, States are

invited to engage Regional Offices in the development of their waivers.

The ETA Regional Administrators will make themselves and their

appropriate staff available to consult with States and provide

technical assistance as necessary. Upon completion of the waiver

request, the States will submit two copies of their waiver request to

the appropriate Regional Administrator.

b. Minimum Requirements. The statute requires the Secretary to make

a determination of how a State's request to waive certain statutory and

regulatory requirements would remove impediments and improve the

State's or local service delivery areas's ability to achieve its goals.

It also requires the State to include a summary description of the

programmatic or administrative goals to be achieved in order to

overcome the barrier.

The Governor must provide at least the minimum information

indicated below in order for ETA to make an informed decision on

whether to approve the requested waiver. Where documentation (e.g.

statistical information, reports, focus groups, customer surveys) is

available, it should be provided to corroborate the statements made in

the waiver request. In the absence of such data the State is expected

to provide a substantive discussion and examples of barriers and

proposed solutions which support the proposed removal of the

requirements.

(1) State and Local Goals. An introductory statement on the State's

workforce development system that the State is attempting to build and

how the waivers relate to that broader vision, including the

accountability framework. The goals provided should take into

consideration the principles articulated above.

(2) Summary of Waiver Request(s). A matrix of the specific

waiver(s) requested (including the legislative and/or regulatory

citations); the barrier which the request addresses; and the outcome

that will be achieved by the granting of the waiver. A description of

how similar State requirements would be waived.

(3) Barriers/Requirements to be Waived. A summary description of

the programmatic or administrative goals to be achieved in order to

overcome the barriers and the individual waivers requested. For each

waiver requested, include a description of the specific barrier which

is preventing the achievement of the goals and an illustration of the

barrier; the specific statutory/regulatory requirement to be waived;

and a description of the expected benefit of the waiver.

(4) Impact of Waivers/Outcomes and Performance Targets. Description

of performance outcomes and other improvements that are the goals of

the waiver request. Describe the anticipated outcomes and/or

performance improvements. Include qualitative and/or quantitative

outcomes to be achieved. Specify how success and/or progress on

outcomes will be determined.

(5) State and Local Service Delivery Areas Actions Taken to Remove

Barriers. Specific actions taken or to be taken by the State or local

service delivery areas to remove state and local barriers (e.g.,

policies, guidelines, rules and regulations) should also be addressed.

(6) Comments Process. Description of the consultation process

within the State, as well as the process for review and comments on the

State's waiver request.

(7) Monitoring. Description of the process the State will use to

monitor the implementation of the waiver. Specify how the State will

evaluate progress and continuous improvement of the approved waiver and

the corresponding programmatic and operating systems, i.e., reports and

analysis. Specify how outcomes/progress will be reported to DOL and how

the integrity of public funds will be ensured.

c. Public Consultation and Comment Process. The Department expects

the State to involve the local elected officials, PICs, community-based

organizations and other stakeholders in the process when developing the

plan which accompanies the waiver application. Consistent with the

general

[[Page 3921]]

waiver request, the State must provide interested parties an

opportunity to review and comment on the proposed waiver. At a minimum,

the law requires that the following groups be afforded the opportunity

to review and comment on the proposed waiver request: (1) The State Job

Training Coordinating Council; (2) each house of the State legislature;

(3) local elected officials and Private Industry Councils; (4)

appropriate local educational and other public and private non-profit

agencies in the service delivery areas; and (5) labor organizations in

the area which represent employees having the skills in which training

is proposed. (NOTE: In the case of a waiver request concerning Title

III, the State is expected to consult with labor organizations

representing workers to be trained.)

Also, the proposed plan must be made reasonably available to the

general public through such means as public hearings and local news

media. All comments received on the waiver request should be forwarded

with the waiver request to the Department of Labor.

d. Timeframe for Response. The Department will make every effort to

act upon proposals by July 1, 1997, if they are received by April 30.

In general, the Department intends to respond to most waiver requests

within 60 days from the date of receipt. Each wavier request will be

evaluated on its own merits, where necessary, the Department may seek

further discussions or negotiations on a waiver request either with

regard to changing certain aspects of the request or with regard to the

quality of the proposed improvements or outcomes. In order to provide a

prompt response, the Department may respond with a partial approval in

those instances where a request contains multiple parts and further

information or clarification is required on one or more parts of the

request. In the spirit of a continuing partnership to improve the

workforce development system, the Department recognizes that the need

for additional waivers may become apparent to the State during the

implementation of its plan. Therefore, States may submit a request for

an additional waiver as the need arises, following the process

described in this TEGL.

10. Impact of New Statutory/Regulatory Waiver Authority on Current

Regulatory Waiver Authority Promulgated at 20 CFR 627.210:

As indicated earlier in this TEGL, DOL's 1997 Appropriations Act

provided authority for the Secretary to grant waivers, within limits,

of statutory and regulatory requirements for titles I-III of the JTPA

and for Sections 8-10 of the Wagner-Peyser Act. Until the enactment of

the JTPA Amendments and the promulgation of the September 2, 1994,

Final Rule implementing those amendments, the Secretary did not have

the authority to waiver either the Act or regulations under either JTPA

or Wagner-Peyser. The Final Rule included a provision for the Secretary

of Labor to waiver certain administratively imposed requirements as set

forth at 20 CFR 627.201. This limited waiver authority did not extent

to statutory requirements or statutorily-based regulatory requirements,

which could not be waived. This authority also did not cover Wagner-

Peyser provisions.

Questions have been raised as to what impact the new JTPA statutory

and regulatory authority will have, if any, on waivers which have been

granted under the regulatory authority codified at 20 CFR 627.201. The

answer is, ``none.'' Waivers previously granted under the old

regulatory waiver authority will continue to remain in effect until

such time as the Governor decides that the waiver is no longer

necessary, or the duration of the granted waiver expires.

It is conceivable that a State may still wish to request a waiver

under the authority outlined at 20 CFR 627.201. States should clearly

indicate under which authority (i.e., JTPA regulations or DOL

Appropriations Act) they are requesting a waiver. Failure to do so can

slow down the review and approval/disapproval process.

11. Actions Required. States are expected to fully involve local

areas in the development of the waivers. They are also requested to

distribute the information on both the Federal process described in

this TEGL and the State-established waiver process to their State staff

(both JTPA and ES), the SESA local offices, the JTPA SDAs/SSAs, and

other interested stakeholders throughout the State.

12. Inquiries and Comments. Requests for technical assistance or

other inquiries should be directed to the Regional Office (see

Attachment for list of regional liaisons).

Attachment

List of Regional Liaisons on Waiver Requests

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Region and individual liaisons Telephone Nos.

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I Raymond H. Poet..................... 617-565-2243

II Thomas J. McKenna.................. 212-337-2180

III Barry Bridge...................... 215-596-6353

IV Ruby Campbell...................... 404-347-3495

V Donald Sutherland................... 312-353-2775

VI Anna C. Hall/Robert Larrea......... 214-767-2154

VII Roland Berg....................... 816-426-3796 x246

VIII Maxine Ugarte.................... 303-844-1650

IX Ann Marie Myers.................... 415-975-4669

X Smith Piper......................... 206-553-7798

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[FR Doc. 97-1796 Filed 1-24-97; 8:45 am]

BILLING CODE 4510-30-M