Work-Flex Partnership Demonstration Program; Availability

DEPARTMENT OF LABOR

Employment and Training Administration

Work-Flex Partnership Demonstration Program; Availability

AGENCY: Employment and Training Administration, DOL.

ACTION: Request for Applications for Work-Flex Designation.

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SUMMARY: Applications are invited from States under the Workforce

Flexibility Partnership Demonstration Program (Work-Flex) which is

authorized under the Department of Labor Appropriations Act of 1997

(Pub. L. 104-208). The Secretary may authorize Work-Flex waivers in not

more than six States, of which at least three must have populations not

in excess of 3,500,000, with preference given to those States

designated as Ed-Flex Partnership States under Goals 2000: Educate

America Act (Pub. L. 103-227). Work-Flex designation will be made

pursuant to an application and plan submitted by the State for the

provision of workforce employment and training activities which is

approved by the Secretary.

DATES: The deadline for submittal of applications will be May 30, 1997,

close of business. After that date, applications will be accepted only

if: (1) Fewer than 6 States apply: (2) fewer than 3 States

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with a population under 3,500,000 apply; or (3) fewer than 6 proposals

received by that date are approved by the Secretary.

ADDRESSES: Applications must be submitted to the U.S. Department of

Labor, Employment and Training Administration, Office of Job Training

Programs, 200 Constitution Avenue, N.W., Room N4459, Attention: Work-

Flex Application, Washington, DC 20210.

FOR FURTHER INFORMATION CONTACT:

James M. Aaron, Director, Office of Employment and Training Programs,

200 Constitution Avenue N.W., Washington, DC 20210, (202) 219-5580

(this is not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The specific provision authorizing the Work-Flex program is as

follows:

``* * * the Secretary of Labor shall establish a workforce

flexibility (Work-Flex) partnership demonstration program under

which the Secretary shall authorize not more than six States, of

which at least three States shall each have populations not in

excess of 3,500,000, with a preference given to those States that

have been designated Ed-Flex Partnership States under section 311(e)

of Public Law 103-227, 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 (except for requirements relating to wage and labor standards,

grievance procedures and judicial review, non-discrimination,

allotment of funds, and eligibility), and any of the statutory or

regulatory requirements of sections 8-10 of the Wagner-Peyser Act

(except for requirements relating to the provision of services to

unemployment insurance claimants and veterans, and to universal

access to basic labor exchange services without cost to job

seekers), and for a duration not to exceed the waiver period

authorized under section 311(e) of Public Law 103-227, pursuant to a

plan submitted by such States and approved by the Secretary for the

provision of workforce employment and training activities in the

States, which includes a description of the process by which service

delivery areas and substate areas may apply for and have waivers

approved by the State, the requirements of the Wagner-Peyser Act to

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

taken to ensure appropriate accountability for federal funds.''

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

Secretary 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

workforce 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 States proposal for workforce development system improvement

must provide a description of the process by which service delivery

areas and substate areas may apply for and have waivers approved:

examples of the requirements of JTPA and the requirements of 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 workforce 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 workforce 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. Provides 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 of maintaining programs for the disadvantaged and dislocated

workers, maintaining adequate and comparable reporting and, within the

School-to--Work framework, 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 by the Secretary of Education as Ed-Flex States. Initially,

applications will be received until May 30, 1997. Since the Secretary

may delegate waiver authority to only six States, applications will be

accepted after the date only if: (1) fewer than six States apply; or

(2) fewer than three States apply with a population under 3,500,000 or

(3) fewer than six applications received by May 30 are approved by the

Secretary. Please note that not more than a total of six States will be

designated under Work-Flex. If six applications are approved in FY

1997, no additional designations will be made. If six States are not

designated in FY 1997, and proposed language in the 1998 budget is

approved, additional States up to a total of six may be designated.

Single SDA States with one State-wide SDA/SSA may apply for Work-

Flex designation. In such States, the application must specify the

entity which may request such waivers (typically the SJTCC or portion

thereof which serves as the Private Industry Council). The Department

recommends that States which have a single SDA identify a different

body with responsibility for mailing decisions on requested waivers.

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 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. This may be a summary of the State

plan for employment and training activities, but should be in

sufficient detail to describe how the State envisions using the Work-

Flex authority to enhance the development of a comprehensive employment

and training system.

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

delivery areas and substate areas may apply for and have waivers

approved; and

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

in Section 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 designated by the Governor

who would have authority to grant requested waivers, including

documentation that the Governor 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 requirement(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, including

a description of the process for assuring that waivers proposed for

approval are not prohibited by the provisions of legislation (including

requirements of legislation other than JTPA), or provisions under which

the Work-Flex authority is granted;

(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, including how the

baseline will be established and what data sources will be used;

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

for federal funds and reporting;

(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 of State legislative, regulatory or other

impediments to administration of the waiver authority sought and

planned State action to resolve such matters; 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, grievance procedures, judicial

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

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 under this program.

For example, this includes designation of service delivery areas or

substate areas, the State planning process, the State Education and

Coordination grants under section 123, the Services to Older

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

State 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 State 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. Such general waiver

requests may be submitted as part of the Work-Flex proposal or may

be submitted separately. General waiver requests will be reviewed in

the context of the requested Work-Flex authority, but will be

subject to the one-year limit applicable to such general waivers.

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

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

recordkeeping and reporting may be waived. The law also specifically

excludes from waivers any 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.

(e) 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 Work-Flex 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 and public sector unions, where they may be affected. 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

Center 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. 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 designated as

Ed-Flex States on or before May 30, 1997.

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

be forwarded with the application to the Department of Labor together

with the State's disposition of such comments.

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

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withdraw the authority to issue waivers if: goals specified are not met

for two consecutive years; or the State grants waivers for non-waivable

provisions or for provisions of other legislation not subject to

waiver.

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 from

selected areas.

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

to submit reports on a semi-annual basis concerning the administration

of the waiver authority and on the accomplishments under this

authority. After one year, annual reporting will be required. States

shall notify the appropriate ETA Regional Administrator of the granting

of a waiver(s) semi-annually. This notification shall include the area

for which the waiver is granted, the provision of legislation and/or

regulation 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 are strongly urged

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 the planned evaluation of

the effectiveness of Work-Flex.

Dated: April 2, 1997.

Raymond J. Uhalde,

Acting Assistant Secretary of Labor.

[FR Doc. 97-8976 Filed 4-8-97; 8:45 am]

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