# Workforce Investment Act of 1998

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/fr%3A98-30228

## Record

- **Collection:** Federal Register
- **Document type:** Notice
- **Published:** November 12, 1998
- **Citation:** 63 FR 63374

## Text

SUMMARY: The purpose of this notice is to obtain comments on the
Department of Labor's draft White Paper on the implementation of the
Workforce Investment Act (WIA or Act ), Public Law 105-220 (August 7,
1998). The paper sets forth in general terms the approach the
Department is taking to implement title I, III and V of the Act. The
implementation of title V will be conducted in conjunction with the
Department of Education. This paper is only one of a series of
documents and other materials that will guide the implementation of the
Act. It is not intended to answer all questions relating to
implementation, but rather to provide the general philosophy and
approach to implementation. Other documents will address more specific
issues. While the Department does not plan to revise this paper, all
comments received by the closing date will be considered in future
aspects of the implementation process. This notice is not a proposed
rule. The Department will consider comments on regulations throughout
the rulemaking process.

DATES: The Department invites written comments on this notice. Comments
received on or before December 1, 1998 will be considered in the
development of regulations and policy guidance as well as the overall
implementation strategy. Statute requires regulations to be promulgated
by February 1999.

ADDRESSES: Submit written comments to Mr. Eric Johnson, Workforce
Investment Implementation Taskforce Office, U.S. Department of Labor,
200 Constitution Avenue, NW., Room S5513, Washington, DC 20210. All
comments will be available for public inspection and copying during
normal business hours at the address above. Copies of the draft White
Paper are available at the address above, as well as on the WIA web
site at http://usworkforce.org. Comments may be submitted
electronically to that web address. Commenters wishing acknowledgment
of receipt of their comments must submit them by certified mail, return
receipt requested.

FOR FURTHER INFORMATION CONTACT: Mr. Eric Johnson, Workforce Investment
Implementation Taskforce Office, U.S. Department of Labor, 200
Constitution Avenue, NW., Room S5513, Washington, DC 20210, Telephone:
(202) 219-0316 (voice) (This is not a toll-free number), or 1-800-326-
2577 (TDD).

SUPPLEMENTARY INFORMATION: Signed into law on August 7, 1998, the
Workforce Investment Act provides the framework for a unique national
workforce preparation and employment system designed to meet the needs
of job seekers, individuals who want to further their career, as well
as the nation's businesses. The Act encourages States to reform
existing employment and training programs and to think broadly about
how Federal, State and local resources can be integrated into a
comprehensive workforce investment system. The Act builds on the most
successful elements of previous Federal legislation. Just as important,
its key components are based on local and State input and extensive
research and evaluation studies of successful training and employment
innovations over the past decade. The Act makes changes to the current
funding streams, target populations, delivery systems, accountability
systems, labor market information systems, and governance structures.
The White Paper is attached.

Signed at Washington, D.C., this 5th day of November, 1998.
Raymond L. Bramucci,
Assistant Secretary of Labor.

Message From the Secretary of Labor

With an economy more vibrant than any we've seen in 30 years,
America is looking forward to a new century filled with endless
possibilities for growth and opportunity. Just this year, millions of
new jobs have been created. Unemployment is at an all-time low, and
wages are on the rise.
But with new high-skill jobs growing at nearly three times the rate
of other jobs, many employers are having a hard time attracting
qualified workers. And millions of workers with few or no skills feel
trapped in jobs leading nowhere.
As Secretary of Labor, one of my chief goals is bridging the gap
between job opportunities and the pool of workers who are qualified to
fill them. I want to equip every American worker with skills that will
not only secure a good job, but guarantee every step up the workforce
ladder leads to even greater opportunities.
That is why the Department of Labor worked with Congress to create
the historic Workforce Investment Act, signed into law this year. Five
years in the making, the Workforce Investment Act represents a total
overhaul of our country's job-training system--a customer-driven
overhaul that will help employers get the workers they need and empower
job seekers to meet the challenges of the new century by getting the
training they need for the jobs they want.
The Workforce Investment Act makes this possible through an
innovative ``One-Stop'' system designed to provide a full menu of job
training, education and employment services at a single neighborhood
location where adults, veterans, dislocated workers and youth will
receive skills assessment services, information on employment and
training opportunities, unemployment, services, job search and
placement assistance, and up-to-date information on job vacancies--all
at one center specifically tailored to meet the needs of the community
it serves.
Best of all, job seekers will control their own careers by choosing
the training programs and services that fit their needs. And they'll
keep that control for life. So when it's time to make another move up
the career ladder, sharpen a skill, learn a new one, or just get
information, workers will be able to continue to rely on their local
One-Stop Center.
The Workforce Investment Act also provides for increased
accountability. The performance of states, localities and training
providers will be monitored against goals set by the Act --including
job placement rates, earnings, retention in employment, and skill
gains. Failure to meet the goals will lead to sanctions, while
exceeding them will lead to incentive funds.
But the Workforce Investment Act is more than a new job training
system. It's a strong network of interlinked programs designed to
provide wide choices to Americans seeking new opportunities and
valuable information. And, it's a chance for us to harness today's
opportunities for success and invest them in the workforce of tomorrow.
I am immensely proud that 15 million young out of school Americans
will not be left out of this system. The law focuses on the needs of
kids in left-out communities to ensure they are pulled into the inner
circle of opportunity offering all of us a pool of talent for the
future. That is why I am inviting everyone--government, business, labor
and communities to work together to prepare America's workforce for the
challenges of the 21st Century.

Implementing the Workforce Investment Act of 1998

(10/8/98 DRAFT)
The Workforce Investment Act will empower all workers--young and
old--

[[Page 63375]]

with the skills and knowledge to build better lives for themselves and
their families as we enter the new century.
Secretary of Labor Alexis Herman
August 8, 1998.

Purpose

This paper sets forth in general terms the approach the Department
of Labor is taking to implement titles I, III, and V of the Workforce
Investment Act. The implementation of title V will be conducted in
conjunction with the Department of Education. Implementation is guided
by the goals and specific requirements of the new law, as well as by
the Act's legislative history, the bipartisan ``reform'' principles
that have been articulated by the President and Members of Congress,
the views of workforce investment system stakeholders, and specific
Departmental and Administration principles that affect implementation
(such as regulatory reform).
This paper is only one of a series of documents and other
materials--including regulations, questions and answers, technical
assistance guides, etc.--that will guide implementation of the Act. It
is not intended to answer all questions relating to implementation, but
rather to provide the general philosophy and approach to
implementation.
Other documents will address more specific issues. Comments on this
paper and other implementation materials are welcome and should be sent
to the address at the end of this paper.

Introduction

The Workforce Investment Act of 1998 represents the first major
reform of the nation's job training system in over 15 years. The
enactment of this legislation is the culmination of a four year
bipartisan effort on the part of the Administration and Congress to
design, with States and local communities, a revitalized system that
provides workers with the information, advice, job search assistance,
and training they need to get and keep good jobs--and provides
employers with skilled workers.
This reform comes at an opportune time. The American economy is
stronger than it has been in a generation, and it is increasingly
driven by creativity, innovation and technology. New high-skill jobs
are growing at nearly three times the rate of other jobs. Many
employers are finding it increasingly difficult to locate and attract
qualified workers for high-skilled, high-paying jobs--as well as
qualified workers for entry-level jobs. At the same time, millions of
workers with little or no skills feel trapped in low-wage, dead end
jobs. Reforms under the Workforce Investment Act will permit us to
build a delivery system in which any adult interested in advancing his
or her career--regardless of income--can keep on learning, and where
job seekers--such as low-income adults including welfare parents,
disadvantaged youth, unemployed or displaced workers, and others
willing to learn and work--can access high quality information and
services. This delivery system should be designed with the
participation of employers, labor, education and community groups which
have a large stake in its success.
The enactment of the Workforce Investment Act provides
unprecedented opportunity for major reforms that will result in a
reinvigorated, integrated workforce investment system. States and local
communities should seize this historic opportunity by thinking
expansively and designing a customer-focused, comprehensive delivery
system. New, strong, business-led local boards can contribute fresh
thinking about the labor market and its needs--as well as about quality
and continuous improvement--in a way that earns sustained support by
local business leaders. We will know if we have successfully
implemented this legislation if in less than five years, businesses
actively use the workforce investment system to fill their labor force
needs, ``graduates'' increase their skills and earnings, and more and
more Americans seek access to the system's services.
States and communities will be able to strengthen ongoing reforms
that have been supported by the Department of Labor through the One-
Stop initiative, the School-to-Work Opportunities initiative which is
administered jointly with the Department of Education, and through
flexibility provided through waivers and Work-Flex. By eliminating many
of the administrative and regulatory barriers that have previously
existed, this Act provides States and local communities with the tools
they need to finally build the comprehensive systems they have been
striving towards.

Background

The current patchwork of Federal job training programs has taken
shape over the last six decades, each element responding to a
particular concern at a specific time, but never fully brought into
alignment with the other components of the ``system''. The effects of
this approach include:
Limited choice. In most programs, choices about job
training are made through bureaucratic processes. Men and women seeking
new opportunities must settle for what the system has available rather
than being permitted to search the market to select the job training
that is right for them.
Lack of quality information. Good choices call for
reliable data about what jobs are available, what skills they require,
and which training institutions offer the best value and performance.
But, the current system too often does not provide this type of
information to individual job seekers and employers.
Weak strategies. Confronted with splintered and
disorganized programs, States and local communities have found it
challenging to devise effective strategies for deploying Federal
resources, or for effectively integrating Federal efforts with one
another and with their own resources. As a result, the private sector
has questioned the value of the system.
Absence of strong accountability. The quality of training
and related services is highly uneven. Institutions can continue to get
Federal funds regardless of performance. Too often, rewards are not
targeted to the best programs.
By integrating numerous Federal education, training and employment
programs into a comprehensive, streamlined system, the Workforce
Investment Act strives to overcome these and other shortcomings of the
nation's job training system.

Principles

The Workforce Investment Act gives American workers the chance to
equip themselves with the skills and information needed to compete in
the new economy, and helps workers take responsibility for building a
better future for themselves and their families. To accomplish the
goals of the new legislation, the new workforce investment system will
be built around several key principles:
Streamlining services. Multiple employment and training
programs will be integrated at the ``street level'' through the One-
Stop delivery system. By building on One-Stop implementation efforts
already underway in the vast majority of States, this integrated system
will simplify and expand access to services for job seekers and
employers.
Empowering individuals. Individuals will be empowered to
obtain the services and skills they need to enhance their employment
opportunities. This empowerment will be accomplished through Individual
Training Accounts which will enable eligible participants to choose the

[[Page 63376]]

qualified training program that best meets their needs. The development
of ``consumer reports'' containing information for each training
provider will allow individuals to make informed training choices.
Universal access. Through the One-Stop system, every
individual will have access to core employment-related services.
Customers can obtain job search assistance as well as labor market
information about job vacancies, the skills needed for occupations in
demand, wages paid, and other relevant employment trends in the local,
regional and national economy.
Increased accountability. States, localities and training
providers will be held accountable for their performance. The Act
identifies core indicators of performance--including job placement
rates, earnings, retention in employment, skill gains, and credentials
earned--that States and local areas would have to meet. Failure to meet
the performance goals will lead to sanctions, while exceeding the
levels could lead to the receipt of incentive funds. Training providers
will have to meet performance goals to remain eligible to receive funds
under the Act.
Strong role for local boards and the private sector. Local
boards will become business-led ``Boards of Directors'' for the local
areas. By relieving them from ``nitty-gritty'' operational details, the
Act ensures they will be able to focus on strategic planning, policy
development and oversight of the local system.
State and local flexibility. States and localities will
have exceptional flexibility to build on existing reforms in order to
implement innovative and comprehensive workforce investment systems.
Through such mechanisms as unified planning, waivers, and Work-Flex--as
well as through the Act's grandfathering provisions which allow States
to continue innovative practices--States and their local partners have
the flexibility to tailor delivery systems to meet the particular needs
of individual communities.
Improved youth programs. Youth programs will be linked
more closely to local labor market needs and the community as a whole,
and will provide a strong connection between academic and occupational
learning. In addition, traditional employment and training services
will be augmented by an array of youth development activities. The
establishment of a youth council in every local area will raise the
visibility of youth programs and facilitate coordination and strategic
design. The Act also authorizes Youth Opportunity Grants that are
designed to provide funding to increase job opportunities for youth in
high poverty areas. In addition, the Act reforms the Job Corps program
by strengthening linkages among Job Corps centers, the State workforce
investment systems, the local communities in which they are located,
and employers.
A fundamental reform of Federal programs and policies based on
these principles will permit communities and States to craft a
workforce investment system that respects individual choices, reflects
local conditions, and delivers results.

Goals

Through the establishment of comprehensive State and local
workforce investment systems that are constructed around the basic
principles described above, the Act strives to increase the employment,
retention, and earnings of participants, and increase occupational
skills attainment by participants. In achieving these goals, the new
system will also:
1. Improve the quality of the workforce. Finding workers to sustain
America's economic growth is becoming one of the most crucial concerns
of business owners and managers across the United States. Changing job
requirements and the resulting demand for new skills, the desire for
reliable worker credentials, and shifting company and industry
structures mean continuing intense demand for high-quality services
that enable workers to meet the needs of the labor market. The Act was
developed with the recognition that, as the 21st century approaches, we
have to develop training opportunities that respond to market needs and
provide consumer choices.
2. Enhance the productivity and competitiveness of the Nation. The
world of work is continuously changing. Economic progress greatly
benefits many American workers and American businesses, but it poses
important challenges as well. New technologies, changes in
international trade, deregulation, and greater competition have led to
structural changes in the U.S. labor markets. Research suggests that
rapid technological progress, fierce competition, further integration
of the U.S. economy with other economies, and significant demographic
changes will continue. This Act will create a system that can quickly
respond to such changes, and that is intended to efficiently prepare
workers to meet the needs of the labor market, provide key labor market
information, and help provide businesses with the resources to remain
competitive. An integrated, highly accountable workforce investment
system is critical if American workers and businesses are to keep pace
in this rapidly changing economic environment.
3. Reduce welfare dependency. Working with the hardest to serve is
a major challenge in welfare reform despite reduced caseloads. This Act
aims to reduce welfare dependency and provide the tools to do so
through the One-Stop system that includes the Welfare-to-Work program,
and is able to integrate TANF and other programs that serve the welfare
customer--in order to invest in the employment and job retention of the
hardest to serve. In areas where adult funding is limited, welfare
recipients and other low wage individuals will receive priority for
intensive and training services. Collaboration between the workforce
investment and welfare systems is important for several reasons. Both
systems now focus on helping clients become employed. In addition, the
two systems serve many of the same customers. Common customers also
include employers who hire clients of the two systems. Finally, given
scarce resources, strong collaboration will ensure that efforts are not
duplicated.

Fundamental Change in Service Delivery

This bill is tailored to meet the local needs of both workers and
business for years to come. It will help all Americans who want to take
advantage of the new high paying jobs that our economy is creating. It
will provide business with the skilled employees they need to compete
in the global high-tech economy. Above all it will make sure that as
our economy moves into the 21st century, our job training system does
too.
Secretary of Labor Alexis Herman
July 31, 1998.

One-Stop Service Delivery

The cornerstone of the new workforce investment system is One-Stop
service delivery which will unify numerous training, education and
employment programs into a single, customer-friendly system. The
underlying notion of ``One-Stop'' is the integration of programs,
services and governance structures. The Employment Service plays a
critical role in One-Stop service delivery as the primary job finding
source, especially for unemployment insurance (UI) claimants. It
provides quality information to the public about jobs, the dynamics of
the labor market, available training and education opportunities, and
the links to other public and private services.

[[Page 63377]]

It is envisioned that each State could use common intake and case
management systems in order to take full advantage of the One-Stops'
potential for efficiency and effectiveness. A wide range of services
from multiple training and employment programs will be available to
meet the needs of a variety of customers--employers and job seekers. In
addition, these local One-Stop centers will be places where all
Americans can access high quality local information on available jobs,
skill requirements, and training provider performance.
The Act requires the establishment of a One-Stop system in each
local area. The local board, in collaboration with the local elected
official, is responsible for overseeing the One-Stop system in their
local area. While the Act establishes certain minimum requirements for
the structure of the local system, it allows local communities
significant flexibility in the design and implementation of their One-
Stop systems.
Each local One-Stop system will be comprised of numerous partners
that will provide core services through the One-Stop system. It is
envisioned that every local system will represent true collaboration
between all of the One-Stop partners. Partners will provide such
services in a way that is consistent with their authorizing
legislation.

Required Partners

Adult, Dislocated Worker, and Youth Activities.
Employment Service.
Adult Education.
Postsecondary Vocational Education.
Vocational Rehabilitation.
Welfare-to-Work.
Title V of the Older Americans Act.
Trade Adjustment Assistance.
NAFTA Transitional Adjustment Assistance.
Veterans Employment and Training Programs.
Community Services Block Grant.
Employment and training activities carried out by the U.S.
Department of Housing and Urban Development.
Unemployment Insurance.
The Act specifies several Federal programs and activities that are
required to participate in each local One-Stop system. The local area
may also include other appropriate Federal, State or local programs--as
well as private sector initiatives--as partners in the One-Stop system.
Ultimately, a local community could have dozens of designated partners
in their system.
Each One-Stop partner is required to enter into a Memorandum of
Understanding (MOU) with the local board. The MOU will describe: (1)
the services to be provided through the One-Stop system; (2) how the
costs of the services and the operating costs of the system will be
funded; (3) methods of referral of individuals between the One-Stop
Operator and the One-Stop partners; (4) the duration of the MOU; and
(5) the procedures for amending the MOU. The MOU may also be used to
address such other issues as the parties determine are appropriate.
One-Stop partners also are required members of the local board --in
order to provide them with an integral role in policy development and
overall system evaluation
A One-Stop operator will be designated to manage the day-to-day
functioning of the local One-Stop system. One-Stop operators may be
designated or certified through a competitive process or in accordance
with an agreement reached between the local board and a consortium of
entities that, at a minimum, includes three or more of the mandatory
One-Stop partners. A wide range of organizations and entities--such as
postsecondary educational institutions, local Employment Service
offices, community-based organizations, private for-profit entities, or
government agencies--are eligible to be designated or certified as a
One-Stop operators. However, a local board may only be designated or
certified as a One-Stop operator with the agreement of the chief local
elected official and the Governor.
Each local area is required to have at least one physical ``full
service'' center at which customers can access services from each of
the One-Stop partners. This comprehensive center can be augmented by
additional ``full service'' centers and through a network of affiliated
sites, or a network of One-Stop partners that can consist of physical
sites or electronic access points.
Regardless of the design that a local area chooses, it must be
based on a ``no wrong door'' approach which will assure customers that
information all of the core services will be available regardless of
where the individuals initially enter the system. This means it does
not matter whether an individual enters the system as a UI claimant or
as a job seeker seeking information through the Employment Service--in
either case, he or she will have access to the full range of services
available through the local system.
Adults and Dislocated Workers--A Continuum of Services. It is
envisioned that One-Stop centers will offer a wide spectrum of
services--ranging from self-service activities such as using a computer
to get information from America's Job Bank, to intensive staff-assisted
services such as group counseling, and include access to training and
other services for which the individual may be eligible. While this
range of services is to be made available, the levels to be offered are
not prescribed in the Act. Individuals with special needs--for example,
persons with disabilities, non-English speaking persons, or those who
lack computer skills--will be accommodated so that they can access all
services offered for which they are eligible.
There are separate funding streams for adults and dislocated
workers. For both, the Act provides for three levels of services: core
services; intensive services; and training. These levels of services
are to be accessed sequentially--that is the more extensive levels of
services are provided when the individual is unable to obtain
employment with the more basic services.
In the new system, ``placement'' no longer needs to be immediately
followed by ``termination.'' This will result in a shift from short-
term ``episodic'' fixes to a system where individuals can access
information and services continuously throughout their lifetime. This
focus will provide new opportunities for low-wage workers to benefit
from the workforce investment system. For example, former welfare
recipients who are placed in a job through the Welfare-to-Work
initiative will be able to remain in the workforce investment system
and continue to obtain the information and services they need in order
to progress through the labor market.
Core Services. In the new workforce investment system, all
Americans will see the One-Stop Centers as a community resource they
can use throughout their lifetime to enhance their job skills as they
move up the career ladder--rather than just a place to go in times of a
crisis, such as when they lose their jobs. Previously, only Wagner-
Peyser funds could be used to provide labor market information and
labor exchange services for any employer or job seeker without regard
to specific program eligibility. This Act expands the concept of
universal access to all core services provided through the One-Stop
Centers. By integrating the services offered through multiple programs
and using available technology, the One-Stop system will be able to
offer customers--job seekers and employers--a choice of any or all core
services and information. The combination of Wagner-Peyser funds, funds
from the Workforce Investment

[[Page 63378]]

Act, and funds from other One-Stop partners should result in a dramatic
expansion of accessability to core services.

Core Services

Determination of eligibility of services.
Outreach, intake (which may include worker profiling), and
orientation to the One-Stop system.
Initial assessment.
Job search and placement assistance, and career
counseling.
Provision of labor market information.
Provision of information on:
Eligible training providers;
Local performance outcomes;
One-stop activities;
Filing claims for Unemployment Insurance;
Supportive services.
Assistance in establishing eligibility for Welfare-to-Work
and financial aid assistance.
Follow-up service.
Consistent with the MOU and the legal requirements applicable to
each One-Stop partner, the core services in the centers and One-Stop
system may be provided by the partners, the operator, or through other
arrangements. Local boards cannot directly provide core services unless
the chief local elected official and the Governor agree to allow the
board to provide such services.
It is important to note that the Employment Service has been and
will continue to be an essential component of any One-Stop system. The
Act requires that all basic Wagner-Peyser-funded labor exchange
services be provided as part of the One-Stop system. Similarly, the
One-Stop system is intended to maintain close linkages to the
unemployment insurance system. In addition to providing information on
filing for UI as a core service, the system would also be the provider
of reemployment services to UI claimants who are ``profiled'' as
needing these services to become reemployed. The UI program may be co-
located in the centers, the centers may be a source for filing
telephone claims for UI assistance, or other arrangements may be made.
Finally, through the Employment Service component of the One-Stop, the
system will continue to assist the UI program in verifying that UI
claimants are actively seeking employment.
Intensive Services. Intensive services may be provided to adults
and dislocated workers who are unemployed and are unable to obtain
employment through core services, if the One-Stop operator determines
that the individual is in need of more intensive services in order to
obtain employment. Adults and dislocated workers who are employed, but
who are determined by the One-Stop operator to be in need of intensive
services in order to obtain or retain employment that allows for self-
sufficiency are also eligible to receive intensive services.

Intensive Services

Comprehensive and specialized assessments of skill levels
(i.e. diagnostic testing);
Development of an individual employment plan;
Group counseling;
Individual counseling and career planning;
Case management;
Short-term prevocational services.
Intensive services may be provided by One-Stop operators or through
contracts with service providers, including contracts with public,
private for-profit and private nonprofit service providers, approved by
the local board. Local boards cannot directly provide intensive
services unless the chief local elected official and the Governor agree
to allow the board to provide such services. If the local board and the
Governor determine that there is a shortage of adult funds in the local
area, they will direct the One-Stop operator to give priority in the
use of these funds for intensive services to welfare recipients and
other low-income individuals.
Training Services. Individuals who have met the eligibility
requirements for intensive services, and are unable to obtain or retain
employment through intensive services may receive training services.
Through the One-Stop system, these individuals will be evaluated to
determine whether or not they are in need of training and if they
possess the skills and qualifications needed to participate
successfully in the training program in which they express an interest.
Training services must be directly linked to occupations that are in
demand in the local area, or in another area to which the individual
receiving services is willing to relocate. As with intensive services,
in areas where the local board and the Governor determine that adult
funds are limited, welfare recipients and other low-income individuals
shall receive priority in the use of such funds for training services.
The underlying principle of the provision of training services
under the Act is customer choice. One-Stop centers will provide access
to consumer information relating to training providers that can assist
individuals in gaining relevant skills--including information on the
performance of such providers in placing graduates in employment.
Through local boards, each State will compile a list of eligible
training providers that meet performance levels as set by the Governor,
and adjusted upward, as appropriate, by local boards. Individuals may
choose any provider from the list of approved providers, whether or not
the provider is located in the local area where the individual resides.
In addition, States may enter into agreements on a reciprocal basis
which allow individuals to access training in another State.
The Act creates a market-based system for training services, and
will provide ``a level-playing field'' for a wide array of providers--
large and small, public and private. Those who provide training
services under the Act will have to meet the test private businesses
face every day. They will have to deliver value to their customers, or
risk losing them. With individuals making their choices based on past
performance, ineffective training providers will not survive.
With limited exceptions, training services will be provided through
the use of Individual Training Accounts (ITAs). States and local boards
will determine how to structure the ITA system in their local areas.
For example, an ITA could take a variety of forms such as a voucher,
credit, debit card, or even a repository for training funds from other
programs. In addition, the law does not prescribe a limit on the amount
that may be provided to assist an individual in obtaining training, but
does not preclude a State or locality from establishing such limits.
Training services may be provided through a contract for services
instead of an ITA only if: (1) such services are on-the-job training
provided by an employer or customized training; (2) the local board
determines there are an insufficient number of eligible providers of
training services in the local area (such as rural areas) to accomplish
the purposes of the ITA system; or (3) the local board determines that
there is a training program of demonstrated effectiveness offered in
the local area by a community-based organization or another private
organization to serve special participant populations that face
multiple barriers to employment (e.g. individuals with substantial
language or cultural barriers, offenders, homeless individuals, or
other hard-to-serve populations as determined by the Governor). Local
boards may not directly provide training services unless they receive a
waiver from the Governor. Since the intent of the Act is to reform the
local service delivery system, and to move away from the

[[Page 63379]]

current practice of contracting for blocks of services, and then
finding participants to fill them--these exceptions are meant to be
limited.
Youth Programs. Through the reform of the current youth training
system and the Job Corps program, and the authorization of the Youth
Opportunity Area initiative, the Act provides a variety of activities
that will prepare youth for academic and employment success. The youth
programs authorized under this Act are designed to create youth systems
that are closely linked to the labor market and are designed to provide
participants with a comprehensive set of service strategies.
Formula Youth Program. Through the combination of the Year-Round
Youth Training funding stream and the Summer Youth Employment Program
funding stream into a single youth funding stream, local areas will
have greater discretion in determining how to allocate resources to
serve youth. The new single youth program fuses youth development
activities (i.e. leadership growth opportunities such as community
service) with traditional employment and training activities. It is
based upon several key elements: integrated academic and vocational
education; integrated work-based and classroom-based instruction;
effective connections to intermediaries with strong links to the job
market and employers; and intensive private-sector involvement.
A Youth Council will be established as a subgroup of the local
board in each local area and will include representatives of: youth
service agencies; parents; public housing authorities; Job Corps;
former youth program participants; and other appropriate individuals.
The Youth Council will be responsible for developing portions of the
local plan relating to youth, recommending the providers of youth
activities to be awarded grants by the local board, conducting
oversight of these providers, and coordinating youth activities in the
local area. The creation of these councils will be an unprecedented
opportunity for a broad range of entities to play an integral role in
the development and oversight of the youth development and training
system, and facilitate the enhanced coordination of youth services.
Youth services are to be delivered by entities that are competitively
awarded a grant or contract by the local board to provide such
services. Such entities may or may not be the same as those providing
services under the One-Stop system in the local area. Each local area
can determine the extent to which they want to integrate youth services
with the adult and dislocated worker delivery system based in the One-
Stop. It is envisioned that States and localities would make
connections to the adult system through relationships with the private
sector and higher education institutions, and through their streamlined
administrative structure.
In order to be eligible for services, a youth must be ages 14-21,
low income, and meet at least one of the six specified barriers to
employment. Five percent of the youth served in a local area may be
non-low-income if they experience one or more specified barriers to
school completion or employment. In addition, in an attempt to focus
resources on those most in need, thirty percent of funds in each local
area must be expended on out-of-school youth. Youth that do not meet
the eligibility requirements must be referred to the One-Stop or
another appropriate program for further assessment in order to meet the
basic skills and training needs of the individual.

Eligible Youth--Barriers to Employment

Basic skills deficient;
A school dropout;
Homeless, a runaway, or a foster child;
Pregnant or a parent;
An offender;
An individual who requires additional assistance to
complete an educational program, or to secure and hold employment.
The new law requires an individual assessment of skill levels and
service needs and the development of a service strategy for each youth
participant. The Act also outlines the required elements of the youth
program. These elements are to include such activities as: tutoring,
study skills training and instruction; alternative secondary school
services; summer employment opportunities; paid and unpaid work
experiences; occupational skill training; leadership development
activities; supportive services; adult mentoring; and comprehensive
guidance and counseling. An emphasis is placed on longer-term service
through the provision of adult mentoring both during and after
participation, for a total of not less than one year, and follow up
services for not less than one year after the completion of
participation. In addition, each participant must be provided
information on the full array of appropriate services that are
available through the local One-Stop system.
Youth Opportunity Grants The Act authorizes the Youth Opportunity
Grants initiative to direct resources to Empowerment Zones, Enterprise
Communities, and other high-poverty areas, to provide comprehensive
services designed to increase employment and school completion rates of
youth. Through a national competitive grant process, the initiative
will provide employment and training services to all disadvantaged
youth in high-poverty areas for an extended period to change the
culture of joblessness and high unemployment. Local boards will be the
recipients of these grants, thus ensuring a strong linkage between
these targeted investments and the formula youth program. The funds
provided are to be used for the youth activities required under the
formula program, and youth development activities such as leadership
development, community service, and recreation activities. In addition,
the program must provide intensive placement services and follow-up
services for not less than two years after a youth has completed
participation in other activities.
Job Corps The Act contains several changes designed to strengthen
the Job Corps program and to ensure that it functions as an integral
part of the workforce investment system. The new provisions will ensure
strong linkages among Job Corps centers, State workforce investment
systems, employers, and local communities. It also assures that
applicants are assigned to centers nearest to their homes.
Due to the size and scope of the Job Corps investment, the Act
holds the program and individual Job Corps centers accountable to
additional requirements. The Act identifies core indicators of
performance including vocational completion and placement rates of
students, earnings and retention in employment. It also requires the
provision of continued services to graduates for one year after
completion of the program.
The Act requires Job Corps centers to have a business and community
liaison and an industry council to enhance cooperation with business.
These requirements ensure connections between local labor markets and
Job Corps centers, that the vocational training offered is relevant to
labor market needs, and that participants learn occupational skills
that are in demand in their home communities.

National Programs

Native Americans. Grants to support employment and training
activities for Indian, Alaska Native, and Native Hawaiian individuals
are authorized in order: (1) to develop more fully the academic,
occupational, and literacy

[[Page 63380]]

skills of such individuals; (2) to make such individuals more
competitive in the workforce; and (3) to promote the economic and
social development of Indian, Alaska Native, and Native Hawaiian
communities in accordance with the goals and values of these
communities. Provisions are similar to those contained in the Job
Training Partnership Act. The Native American Employment and Training
Council is retained to provide the Secretary of Labor with advice on
program operations and administration. In addition, authority was added
allowing the Secretary to waive statutory or regulatory requirements of
this program (other than labor standards) pursuant to a request from a
grantee.
Migrant and Seasonal Farmworkers. Similar to provisions in the Job
Training Partnership Act, grants to support migrant and seasonal
farmworkers and their dependents are authorized to: (1) strengthen the
ability of the eligible individuals to obtain or retain unsubsidized
employment or stabilize their unsubsidized employment; and (2) provide
supportive services and related assistance. The Act adds specific
eligibility criteria for migrant and seasonal farmworkers. In addition,
funds are specifically earmarked for migrant youth activities.
Veterans. The Act retains the current law veterans' employment
program (JTPA title IV-C) and expands the eligibility for the program
to include, in addition to veterans with service-connected disabilities
and recently separated veterans, veterans who have significant barriers
to employment and veterans who served on active duty in the armed
forces during a war or in which a campaign badge has been authorized
(e.g. the Persian Gulf War).

National Activities

The Act requires the Secretary to conduct a wide variety of
national activities. Every two years the Secretary must publish a plan
that describes the national activity priorities for the next five-
years. This plan, which will be published in the Federal Register and
shared with Congress, will ensure that investments are planned in a
strategic manner. The Act also requires the Secretary to conduct a
study on improving the formulas for allocating funds contained in Act.

National Activities

Technical Assistance.
Dislocated Worker Technical Assistance.
Pilot, Demonstration, Multiservice, Multistate and
Research projects.
Dislocated Worker Pilot, Demonstration, Multiservice,
Multistate and Research projects.
Evaluation.
National Emergency Grants.
Through this broad range of authorized activities, the Department
will develop and implement techniques and approaches, and demonstrate
the effectiveness of specialized methods, of addressing employment and
training needs of individuals. Funds will also be used to evaluate the
impact of workforce investment activities. In a change from current
law, most awards are subject to competitive requirements, matching
requirements, peer review, and time limits. These provisions will
ensure the continued integrity of these investments.

Holding States and Localities Responsible for Results

Consistent with the performance-based approach provided in the
Government Performance and Results Act (GPRA), the Department is
placing a special emphasis on the area of program performance. This
includes a focus on: outcomes rather than inputs; results rather than
process; and continuous improvement rather than management control. The
performance provisions contained in the Act reflect this emphasis, and
provide increased flexibility in service delivery in exchange for
increased accountability for results. Through these provisions, the Act
strives to establish a comprehensive performance accountability system
in order to optimize the return on investment of Federal funds in State
and local workforce investment activities. This accountability system
will assess the effectiveness of States and local areas in achieving
positive results as well as the continuous improvement of their
workforce investment systems.
Core Indicators of Performance. The Act establishes core indicators
of performance for all adult, dislocated worker, and youth programs to
be applied to States as well as local areas. The core indicators of
performance for adult and dislocated worker activities (except for
self-service and informational activities) and for youth participants
age 19-21 include:
1. Entry into unsubsidized employment;
2. Retention in unsubsidized employment 6 months after entry into
employment;
3. Earnings received in unsubsidized employment 6 months after
entry into the employment; and
4. Attainment of a recognized credential relating to achievement of
educational or occupational skills for individuals who enter
employment. (For youth age 19-21, educational and skill attainment is
measured for all individuals who enter postsecondary education,
advanced training, or employment.)
The core indicators of performance for youth age 14-18 include:
1. Attainment of basic skills and, as appropriate, work readiness
or occupational skills;
2. Attainment of secondary school diplomas and their recognized
equivalents; and
3. Placement and retention in postsecondary education or advanced
training, or placement and retention in military service, or
employment--including qualified apprenticeship.
In addition, a customer satisfaction indicator must be established
that measures employers' and participants' satisfaction with the
services received under this Act. The inclusion of a customer
satisfaction indicator is important because securing employment is not
the sole concern when job-seekers enter the workforce investment
system. Customers are also concerned with their access to quality
information, their treatment by program staff, and their access to
services--in short, how well they feel that the system met their needs.
Recent research suggests that satisfaction with these other aspects of
a system are important to individuals whether or not they find a stable
job as a result of a training program or other service.
States also have the ability to identify additional indicators of
performance, and must report annually on a number of other indicators
specified in the Act, including employment, retention and earnings (12
months after entry into employment) and performance information on
specific population groups.
Negotiated Levels of Performance. For each core indicator, and the
customer satisfaction indicator, the State will negotiate its expected
levels of performance for the State as a whole with the Secretary.
These levels must be included in the State Workforce Investment Plan
and the negotiation must be completed before a State receives any funds
under the Act. Several factors are to be taken into account in this
negotiation process: (1) the extent to which the levels will assist the
State in attaining a high level of customer satisfaction; (2) how the
levels compare with the levels for other States--taking into account
differences in economic conditions, characteristics of participants,
and the services to be provided; and (3) the extent to which

[[Page 63381]]

the levels promote continuous improvement in performance and ensure
optimal return on the investment of Federal funds.
The State will carry out a similar negotiation with the local areas
within their State--taking into account specific economic, demographic
and other characteristics of the areas--to establish their expected
levels of performance for each core indicator.
Incentives, Sanctions and Technical Assistance: In an effort to
drive positive results and continuous improvement, the Act contains
strong ties between performance and funding. If a State fails to meet
its expected levels of performance in any year, it can request
technical assistance from the Department of Labor. If a State continues
to fail to meet its agreed-upon performance levels for a second year--
or if a State fails to report its performance information in any year--
its funding can be reduced by up to five percent. If a State exceeds
its expected levels of performance--as well as its levels of
performance under Adult Education and Vocational Education--it will
receive an incentive grant which must be used to finance innovative
workforce investment projects within the State. The linking of
performance for these three programs--workforce investment, adult
education, and vocational education--illustrates the importance of
collaboration of those systems.

New Roles and Flexibility

Partnerships at all levels--local, State and Federal--and across
the system is the hallmark of the new workforce investment system. All
levels will be required to coordinate and collaborate with agencies and
entities that have not been a part of the ``traditional'' workforce
development system. The incorporation of programs and activities
administered by agencies other than the Department of Labor into the
One-Stop system will require enhanced coordination between Labor,
Education, Housing and Urban Development, Transportation, Health and
Human Services, and Agriculture--and will require these entities to
develop collaborative strategies for service delivery and work towards
common goals. In addition, it is envisioned that business, labor
organizations, community organizations, school, and other interested
entities will be fully involved in the design and quality assurance of
the new system. Dialogue with customers, partners, stakeholders, and
Congress will be ongoing and consistent--at every level, and between
levels.
Accountability and responsibility for outcomes at all levels of the
system will exist, with each level having unique and integral roles and
responsibilities. This will result in high quality, effective services
for customers.
Local: In the new system, the local level remains key for policy
and administrative decisions. It is where customers access services and
where the design for the new One-Stop system and the consumer-driven
training system will be implemented. Local Workforce Investment Boards
will have important roles in the new system. Some of these roles
include the development of a 5-year local plan, the identification of
eligible providers of training services, and coordination of activities
across programs. Through the local plan, the operation of the workforce
investment system can be tailored to meet local needs.
The chief local elected officials continue to have a central role
in the administration of workforce investment activities. Specifically,
the chief local elected official:
Appoints the members of the local board, which is
responsible for establishing workforce investment policies in the local
area;
Develops, in collaboration with the local board, the local
workforce investment plan, which specifies the types of services that
will be provided, such as summer youth employment and training;
Serves, or designates an entity to serve, as the grant
recipient for job training funds provided under the Act, which includes
the responsibility for receiving and disbursing formula grant funds;
Works with the local board to conduct oversight of the
One-Stop customer service system in the local area, designates and
certifies One-Stop operators, appoints One-Stop partners (i.e.,
participating programs) and develops and approves the memoranda of
understanding under which the One-Stop system will be administered; and
Works with the local board to negotiate with the Governor
the performance levels that will be applicable to local areas and that
could result in incentive funds or sanctions.
Additionally, representatives of chief elected officials are
members of the State board that develops the State plan and carries out
other statewide activities.
State: The Act includes numerous features designed to provide
States with increased flexibility in designing and implementing
workforce investment systems. It also prescribes new roles for
Governors. For example, the Workforce Investment Act:
Eliminates mandatory set-asides for education coordination
grants and older worker programs, and combines the year-round and
summer youth programs into a single funding stream--resulting in far
fewer funding constraints.
Requires that each State establish a business-led State
Workforce Investment Board, consisting of the Governor and appointees
of the Governor representing business, education, labor, local elected
officials and others, to develop a comprehensive 5-year strategic State
plan for all workforce investment activities, and monitor the operation
of the workforce investment system.
Allows Governors to submit a single ``unified'' State plan
covering numerous Federal education, training and employment programs.
This provision also includes a requirement for joint planning and
coordination through which the entities responsible for planning or
administering such programs will review and comment on all components
of the plan.
Allows, through the inclusion of grandfathering
provisions, features of State laws enacted prior to December 31, 1997
relating to designation of service areas and sanctioning of local areas
for poor performance that are inconsistent with the Act. In addition,
all States may retain their existing State councils and local boards
created under JTPA if they substantially meet the requirements of the
Act and were in existence on December 31, 1997.
Assures that States retain any existing waivers that they
have received from the Department of Labor and codifies the Secretary
of Labor's waiver authority that previously only existed in annual
Appropriations language. In addition, the Act expands eligibility for
``Work-Flex'' to all States--flexibility that is currently limited to a
six State demonstration.
Increases, significantly, the Governor's flexibility in
using State reserve funds to finance activities that are State
priorities. Under the Act, the State reserves fifteen percent from each
of the three funding streams and may merge those funds and use them for
an array of workforce investment activities--including incumbent worker
projects.
Provides the Governor with a significant new role in
developing performance measures. They will have an important new
opportunity to affect the measures that will be used to evaluate the
effectiveness of the workforce investment system in their State.

[[Page 63382]]

State Workforce Investment Boards will also play an important role
in the design and implementation of State systems. For example, the
Board will assist the Governor to develop a 5-year strategic plan,
continuously improve the system, designate local workforce investment
areas, develop State performance measures, and develop allocation
formulas.
Federal: The Federal role also is changing. The Federal role in the
new workforce investment system will be one of a leader and an
enabler--with a focus on ensuring overall accountability for results
rather than adherence to administrative process. The Federal role can
be separated into the following areas that range from the most ``hands-
on'' activities, to facilitating progress, to the administrative and
support functions needed in this new system:
Strategic planning and policy formulation which defines
and focuses the direction of the public system.
Performance accountability to ensure that States and
localities meet program performance requirements and provide the
highest level of service to customers.
Knowledge development which provides important research
and evaluation findings to the workforce investment system to
facilitate better ways of delivering workforce investment-related
activities.
Technical assistance which provides expert assistance to
State and local partners and other stakeholders.
Administration and oversight to ensure financial
accountability of programs and compliance with legal requirements.
Prototype information systems which design and support
national information and communication needs.

Transition Efforts

The Department is in the process of organizing for the transition
to the new workforce investment system. An implementation task force
has been appointed, and a number of workgroups have been established to
focus on a wide variety of transition issues. The following workgroups
have been established: (1) Policy Development; (2) Performance
Accountability; (3) Outreach and Communications; (4) Administration and
Close-Out; (5) Program Services; and (6) Technical Assistance.
Although States are not required to fully implement all of the
requirements of the Act until July 1, 2000--the Department encourages
States that are ready to implement early, beginning July 1, 1999. In
order to enable States to implement beginning in July of 1999--the
Department intends to work quickly to develop planning guidance. The
Department intends to publish interim final regulations in the Federal
Register by early February 1999.
The Department recognizes that flexibility is key to implementing
the legislation. The Act is not the status quo; and a ``do it this
way'' approach dictated by the Federal government will not work. States
and local areas must be able to work in partnership to address the
needs of workers and employers by designing systems that make sense for
local labor markets and produce results. We can help as a partner, but
the most important linkages will be ones forged at State and local
levels.
Consultation Process. The transition can only be enhanced by
tapping into established networks to draw on the broadest possible
participation and contribution to the planning, implementation and
follow up of the Workforce Investment Act by the organizations and
people who will be the ones to make it happen. The Department of Labor
is taking an all inclusive approach to engaging the system in the
implementation of the Act. A variety of strategies will be used to
ensure continuous, two-way communication between the Federal, State,
and local partners, stakeholders, and other interested organizations
and individuals.
Information will be openly shared throughout the planning and
implementation process. Input will be sought on a continuous basis to
ensure that this process is truly a collaborative one. Various meetings
of workforce investment partners, customers, and other stakeholders
will be used as an arena to share current information on proposed
implementation policies/strategies as well as seek input from the
system. In addition, various roundtables and policy forums will be held
in each of the Department's ten regions to facilitate and encourage a
continuous face-to-face dialogue throughout the planning and
implementation process.
A workforce investment website (http://usworkforce.org) has been
established to provide a vehicle for continuous, ongoing
communications. The website is intended to function as an open forum
for dialogue between federal, state, local partners, stakeholders and
other interested individuals and organizations. This website will
enable implementation plans to be shared as they are developed,
questions to be raised, issues to be surfaced, and solutions to be
proposed. A question and answer system is being developed to provide a
medium through which the Department can respond to questions raised by
State and local partners and individual stakeholders. Once answers are
developed, they will be posted promptly on the website. Hard copies of
questions and answers will be prepared and distributed to the system on
a periodic basis.
Regulations. The Department intends to publish interim final
regulations by early February 1999, with final regulations scheduled to
be issued by the end of 1999. The Department has developed a set of
principles to guide the regulations writing process. These principles
include:
Customer First. The first consideration in writing
regulations will be to consider how they may impact on service to the
customers--participants and employers.
Consistency. The regulations will be internally
consistent, in terms of the message, tone, length and quality, and
written in a style that conveys information in a manner that is easy to
read and understand.
Input on Key Issues. Input will be sought from the
workforce investment community as a whole through various media and
through individual workgroups, as appropriate, on issues which need to
be addressed in regulations before and during regulation writing.
Minimal Regulations. Regulations will be prepared only
when:--clarifications are needed to implement legislative provisions;--
explanations on how the agency intends to interpret the Act are
necessary;--specific issues are not addressed in the legislation
requiring a rule to fill gaps in the legislation; and--policy guidance
would be insufficient to allow grantees to ensure that critical
provisions are implemented.
Flexibility. All regulations will permit the maximum
flexibility to customers as well as State and local governments in
terms of service and implementation of legislative provisions.
Administrative Feasibility. Regulations will be written in
a manner which permits persons at State and local levels to use them
under a variety of circumstances.
Technical Assistance: By early 1999, a comprehensive technical
assistance strategy will be in place. It is envisioned that the
technical assistance effort will focus on three areas: (1) Assisting
States and localities in closing-out the JTPA system; (2) assisting
``early implementers''-- States that will begin operating under the Act
in 1999; and (3) assisting States that will not begin

[[Page 63383]]

implementing the new requirements until the year 2000.

Initial Implementation Timeline

The Department intends to meet the following timeline for the
implementation of the new system:

Begin Consultations on Planning/Program/Policy Guidance, September 1998
Regions and States Identify Closeout Issues, October 1998
Publish Planning Guidance, November 1998
Publish Interim Final Regulations, February 1, 1999
Early States Submit Plans, April 1, 1999
Early State Implementation and Operation, July 1, 1999
Publish Final Regulations, December 31, 1999
All States Implementing Workforce Investment Act, July 1, 2000

For Further Information Contact: Workforce Investment Act
Implementation Taskforce Office, U.S. Department of Labor, 200
Constitution Ave. NW, Room S5513, Washington, D.C. 20210, Telephone:
(202) 219-0316 (voice), 1-800-326-2577 (TDD), Fax: (202) 219-0323, E-
mail: [email protected], Website: http://usworkforce.org.

[FR Doc. 98-30228 Filed 11-10-98; 8:45 am]
BILLING CODE 4510-30-P

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A98-30228. Public record. Not legal advice.