Background: An analysis of results from a survey of companies that provide payroll and/or tax filing services or that sell payroll software has lead to the conclusion that these companies do not have all the information necessary from State QCR forms, or within "Employer's Handbooks" provided by States, to be able to provide data which conforms to the State definition of monthly employment. This results in inaccurate data being submitted. Recommendation: This data is of vital importance in a number of national statistics and is used widely by the Bureau of Labor Statistics, the Department of Commerce and the Unemployment Insurance Service. Therefore, it is recommended that States add a statement such as the following to their QCR: "The monthly employment data reported on line item should be a count of all full-time and part-time workers in covered employment (subject to this State's Unemployment Compensation Law) who performed services during the payroll period which includes the 12th of the month. If no employment in the payroll period, enter zero." Further, it is recommended that this statement and more detailed information on monthly employment be included in the State's "Employer's Handbook". Action Required: State Administrators should share this information with appropriate staff. State administrators might consider forwarding inquiries on the issue to the State Labor Market Information units which should be able to respond.

References: Public Law (P.L.) 101-453 (CMIA); P.L. 102-589 (CMIA effective date extended); 31 CFR Part 205 (CMIA Final Rule), 57 Fed. Reg. 44272 (September 24, 1992); Employment Security Manual, Part V, Sections 9300-9315; ETA Handbook No. 336, 10th Edition. Background: The DOL, in consultation with the States and other interested parties, has been developing a comprehensive, integrated approach to unemployment fund cash management for an extended period. The goal of this approach is to combine modern cash management practices with the immediate deposit and limited withdrawal requirements of the Social Security Act (SSA) at Section 303(a)(4) and (5) and the Federal Unemployment Tax Act (FUTA) at Section 3304(a)(3) and (4). DOL published for comment a proposed State unemployment fund cash management program in the Federal Register on May 16, 1990. However, enactment of the CMIA compelled modifications to this program. Among other things, the CMIA amended 31 U.S.C. 6503. Section 6503(c)(3)(B) requires that "actual interest earnings" less "related banking costs" be returned to the State's account in the Unemployment Trust Fund (UTF). The Treasury Department published a proposed rule to implement the CMIA at 57 Fed. Reg. 10102 on March 23, 1992. Subpart B of that proposed rule addressed UTF issues. However, the final rule, 57 Fed. Reg. 44272, 44278-44279 deleted Subpart B. Treasury's rationale for the deletion was that Subpart B went beyond strict CMIA issues because it contained unemployment fund cash management program issues best left to DOL regulations. After publication of the final rule, the effective date of the CMIA regulations was extended to July 1, 1993, by P.L. 102-589. DOL plans to develop regulations which will spell out, subject to the constraints of the CMIA, specific requirements for State compliance with the immediate deposit and limited withdrawal requirements of the SSA and the FUTA. However, a final rule cannot be published by July 1, 1993, the effective date of the CMIA regulations. Therefore, States are provided this controlling interim guidance, which will remain in effect until the effective date of DOL regulations. States may not vary from this guidance without the prior approval of DOL. Interim Guidance and Instructions: The following sections provide interim guidance and instructions on the unemployment fund cash management program issues affected by the CMIA. All current UTF cash management requirements not addressed in the following sections remain unchanged (specifically the Desired Level of Achievement (DLA) for the deposit of funds for the UTF into State clearing accounts and the transfer of those funds to the UTF, and fund management requirements in the Employment Security Manual Sections 9300-9315). See ETA Handbook 336, 10th edition, for DLAs. Current ETA cash management reports (specifically, the ETA 8401, 8405, 8413, and 8414) will continue unchanged during the interim period. The DOL has requested the Office of Management and Budget to extend the expiration date of these reports to September 30, 1995. A. Performance Measures. State benefit payment account cash management performance is currently monitored through the Quality Appraisal (QA) process. State cash management performance is measured by a DLA. This DLA limits withdrawals from the State account in the UTF to an amount sufficient to maintain in the benefit payment account a balance equivalent to not more than one day's benefit payments. The CMIA makes this DLA obsolete; therefore this DLA is now rescinded. During the interim period, a State will be required to comply with the following: The withdrawal of funds from the State account in the UTF must adhere to the funding technique specified in the Treasury - State agreement executed under 31 CFR 205.9. In the absence of such an Agreement, the default provisions of the CMIA regulations will apply (Section 205.9(f)). Section 205.9 of the CMIA final rule describes the Federal-State Agreements and the essential components thereof. One required component is the selection and specification of a "Funding Technique" (Section 205.9(b)(2)). In effect, benefit payment account balance levels are now controlled by the permissible funding techniques described in Section 205.6 of the CMIA rule and, to support the CMIA, the focus for DOL performance measurement is changed from a benefit payment account balance amount to compliance with the stipulated withdrawal technique. B. Program Requirements. (1). Interest Earnings. States may have balances in their benefit payment account; in some cases these balances will be significant. Good cash management dictates that States take steps which ensure that benefit payment account balances provide value to the State unemployment fund through generation of interest or earnings credits which may be used to pay "related banking costs". Related banking costs are charges by commercial banks or State Treasurers for the maintenance of a State's benefit payment account relating to the drawdown of unemployment funds from the UTF and the disbursement of unemployment compensation checks or warrants. These steps must conserve the security and liquidity of unemployment funds. To this end, for the benefit payment account only, States may: (A) Use earnings credits generated by balances in benefit payment accounts, including benefit payment accounts residing with State Treasurers, to offset related banking costs for the maintenance of said benefit payment accounts. (B) Invest from the close of bank business one night to the opening of bank business the next business day in repurchase agreements in U.S. Government securities or securities backed by or insured by the full faith of the U.S. Government. Broker/Dealers used in such repurchase agreements must be subject to and in compliance with Treasury regulations issued under the Government Securities Act of 1986, at 31 U.S.C. 3121(h) and, 9110, and must conform in substance to the Public Securities Association master repurchase agreement. Interest earnings must be deposited into the State's account in the UTF unless used for the payment of related banking costs defined as stand-alone, non-credit services which are considered necessary and/or customary for sustaining an account in a financial institution, whether in a commercial institution or State Treasurer account. Investment service fees are not considered related banking costs under CMIA. See 31 CFR 205.13(i) for the description of the interest calculation process and 31 CFR 205.15(a)(6) for the annual requirements for reporting actual interest earned and related banking costs. (2). Federal Funds. Funds originating in the Federal Employees Compensation Account (FECA) and the Extended Unemployment Compensation Account (EUCA) are not subject to the same treatment provided funds withdrawn from the State's account in the UTF. Instead, FECA and EUCA funds are excluded under 31 CFR Part 205.13(i)(3) and are subject to the same conditions and requirements as other funds under the CMIA. Therefore, interest on FECA or EUCA funds must be returned to the respective account, and interest earned may not be used to pay related banking costs. (3). Tracking and Accounting for UTF funds. All State unemployment funds must be identifiable at all times, separately and completely accounted for, so that all types and volumes of transactions can be tracked as they flow through the State bank accounts. Moneys withdrawn from the State's account, the FECA, the EUCA, and the Federal Unemployment Account in the UTF may be deposited into the same benefit payment account. Separate tracking, accounting, and record keeping must be maintained for these commingled funds from the source in the UTF through redemption of the payment instrument. Related banking costs and actual interest earning on funds withdrawn from the State's account in the UTF must be allocated reasonably according to the appropriate source of funds. See 31 CFR Part 205.13. Action Required: SESA Administrators are requested to: A. Review the guidance and instructions in the UIPL; B. Implement changes that may be required due to the CMIA; C. Relay to the appropriate Regional Office any comments and concerns by July 15, 1993. States will be regularly apprised of the progress of the development of DOL regulations.

References. 20 CFR 632.4 and DINAP Bulletin 93-12. Background. The Department of Health and Human Services (DHHS) published revised poverty income guidelines in the Federal Register on February 9, 1995. The Job Training Partnership Act (JTPA) regulations at 20 CFR 632.4 provide for the use of DHHS poverty guidelines in determining economically disadvantaged persons and program eligibility. However, DHHS has definitions of "income" and "family" which are not applicable to the JTPA program. JTPA definitions can be found at 20 CFR 632.4. Action. The revised guidelines are effective from the date of this bulletin. Questions. Contact your DINAP Federal Representative.

Background: Under a Memorandum of Agreement between the Department of Labor (DOL) and the Department of Defense (DOD), DOD is funding SCA demonstration projects as agreed to by DOD and DOL. On May 12, 1992, DOL published an announcement soliciting proposals for SCA demonstration projects. Twelve demonstration grants were awarded and announced on November 12, 1992. The Department is now announcing a second solicitation of DCA demonstration grant applications to establish demonstration projects for workers dislocated or threatened with dislocation due to reduced defense expenditures. -- Demonstration Topics DOL/DOD will consider applications in the following areas: -- Dislocation Aversion -- Increased Worker Mobility -- Community Planning -- Locally Initiated Response -- Eligible Grantees Eligible grantees for demonstration projects under this announcement include States, Title III substate grantees, employers, employer associations and representatives of employees. -- Closing Date The closing date for the receipt of applications for grant awards shall be August 2, 1993, at 2 P.M. (Eastern Time). Action Required: State JTPA or Workers Adjustment Liaisons are requested to distribute the attached Federal Register notice to appropriate officials within the State.

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Background: Sections (4) (37) and 203 (b) of the amended JTPA, and item 11 of the Standardized Program Information Reporting (SPIR), have defined program participation as beginning with objective assessment. This will result in a greater number of individuals being defined as participants. At the same time, with program targeting beginning in PY 1993, larger number of hard-to-serve participants are expected to be served by the program. Such participants may begin the assessment process, but terminate from the program before receiving training or other services. To accommodate this situation and ensure that the increased program focus on serving targeted groups will proceed as intended, a change in the way in which performance against required standards is to be measured was referenced in section 628.530 of the JTPA regulations published December 29, 1992. This Information Notice clarifies that reference. Exclusions From Performance Calculations: The following categories of terminees will be excluded from calculating service delivery area (SDA) performance against PY 1993 performance standards: -- Title II-A adults/adult welfare recipients who received only objective assessment (no training or job search assistance) will be excluded from the universe for follow-up and from the follow-up sample itself. Individuals who received skills training and/or job search assistance will be included as usual. -- Title IIC youth terminees who received only objective assessment (no training or job search assistance) will be excluded from the calculation of youth performance measures. Individuals who received any skills training and/or job search assistance will be included as usual. -- The statutory references to "objective assessment" apply only to Title II; there is not provision dealing with "objective assessment" in the Title III legislation. Participants in Title III, that is, those who receive retraining or basic readjustment services under the program, will be included at termination in the universe for follow-up, in the follow-up sample itself, and in the calculation of the Title III entered employment rate. Graphic illustrations of the calculation process, with references to specific SPIR line items, are included as attachments to this TEIN. Implementing Provisions: Other performance standards implementing provisions remain unchanged. Please refer to section 6, TEGL No. 9-89, dated June 29, 1990 for these provisions. State Action: These calculation procedures are effective beginning in PY 1993 (July 1, 1993). States are to distribute this Information Notice to all relevant officials within the State responsible for implementing performance management policies and requirements for Program Year 1993.

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References. DINAP Bulletin No. 92-15. Background. The JTRA of 1992, public law 102-367, dated September 7, 1992, made substantive enhancements to JTPA program requirements and administrative systems. Pursuant to the authority provided by section 701(i) of the Amendments, which permits the Department to "establish such rules and procedures as may be necessary to provide an orderly implementation of the amendments . . . ," this bulletin provides guidance on certain programmatic and administrative areas through which the Department intends to assist Section 401 grantees in their implementation of the statutory changes. Revised regulations for the Section 401 program, which will incorporate the statutory changes as well as other changes to enhance the quality of the program, will not be proposed or finalized until after the commencement of Program Year 1993. In addition, these revised regulations will be promulgated only after an extensive review and comment period open to Section 401 grantees and other interested parties. Section 401 grantees must, nonetheless, implement the statutory requirements described below, by July 1, 1993. Policy. The Department will issue new regulations for the Indian and Native American program which conform to the Amendments as soon as possible after July 1, 1993. The current regulations for the Indian and Native American program remain in full force, except in those areas where they have been superseded by the Amendments. Information. Key Amendment provisions of the JTRA are discussed below. Sections quoted from the Act contain the Amendment language applicable to the Section 401 program. This language is followed by guidance. Grantees are expected to review each section of the Act which is applicable to the Section 401 program in its entirety. The key Amendment provisions include the following (where appropriate, citations are provided): A. Plant Relocation. Section 141(c) reads in relevant part: (1) No funds under this Act shall be used or proposed for use to encourage or induce the relocation, of an establishment or part thereof, that results in a loss of employment for any employee of such establishment at the original location. (2) No funds provided under this Act shall be used for customized or skill training, on-the-job training, or company specific assessments of job applicants or employees, for any establishment or part thereof, that has relocated, until 120 days after the date on which such establishment commences operations at the new location if the relocation of such establishment results in a loss of employment for any employee of such establishment at the original location. Guidance: This section of the Act was substantially revised to prohibit the use of JTPA funds to induce or encourage the relocation of a company when such relocations result in the loss of employment at the original location. A ban on use of JTPA funds for 120 days after the commencement of operations at the new location further restricts the use of JTPA funds in such instances. The Department interprets a relocating establishment to mean a business entity, including a successor-in-interest, which is moving any operations from a facility in one labor market area within the United States and its territories to a new or expanding facility in another labor market area. "Commences operations" means the commencement of commercial operations. B. On-the Job Training. Section 141(g) reads in relevant part: (2) On-the-job training authorized under the Act for a participant shall be limited in duration to a period not in excess of that generally required for acquisition of skills needed for the position within a particular occupation, but in no event shall exceed 6 months, unless the total number of hours of such training is less than 500 hours . . . (3) Each on-the-job training contract shall -- (i) specify the types and duration of on-the-job training and the other services to be provided in sufficient detail to allow for a fair analysis of the reasonableness of proposed costs; and (ii) comply with the applicable requirements of section 164 [Fiscal controls; Sanctions]. (4) In accordance with regulations issued by the Secretary, on-the-job training contracts under this Act shall not be entered into with employers who have received payments under previous contracts and have exhibited a pattern of failing to provide on-the-job training participants with continued long-term employment as regular employees with wages and employment benefits (including health benefits) and working conditions at the same level and to the same extent as other employees . . . Guidance: The Amendments provide that on-the-job training (OJT) contract language should contain specific training content in sufficient detail to support costs. OJT is a training option meant to be conducted in the highest skill occupation appropriate for an eligible participant. It is not intended to be subsidized employment for low-skill occupations which need very little training time. Contract duration is to be set at the length of time necessary to be trained in a specific job and which meets the specific training needs of the participant. Additionally, the contract shall not exceed six months duration unless the number of hours of the contract is less than 500 hours. The Department's policy on this provision focuses on legislative language to the effect that the number of reimbursable hours may not exceed the later of six months or 499 hours. In the following reference chart (which reflects the revised policy), the conditions of Column A and Column B must be met for Column C to be true: A B C CONTRACT SPAN CONTRACT SPAN IN HOURS IN MONTHS REIMBURSABLE 1-499 any duration Yes over 499 over 6 No 1-1040* 0-6 Yes * e.g. full-time employment No portion of an OJT contract in excess of six months or 499 hours is reimbursable under the Act as amended. Employers who fail to sustain OJT placements in permanent unsubsidized employment shall be ineligible for future contracts. Employment and OJT contracts, awards and agreements entered into on or before June 30, 1993, are to be used to serve only participants enrolled on or before June 30, 1993, unless the contracts, awards and agreements are modified after June 30th to comply with the Amendments. C. Program Income. The Amendments add to the existing definition of program income the following three categories: (i) receipts from goods or services (including conferences) provided as a result of activities funded under the Act; (ii) funds provided to a grantee in excess of the costs associated with the services provided; and (iii) interest income earned on funds received under this Act. Guidance: Grantees may retain program income only if it is used to carry out grant activities, as per section 141(m) of the Act. Grantees which receive program income from PY 1993 funds must maintain records sufficient to determine the amount of such income received and the purposes for which such income is expended, as per section 141(m)(3) of the Act. D. Employment Generating Activities. Section 141(q) reads: No funds available under this Act shall be used for employment generating activities, economic development activities, investment in revolving loan funds, capitalization of businesses, investment in contract bidding resource centers, and similar activities. Guidance: The Amendments prohibit use of JTPA funds for certain types of employment generating activities. However, grantees may continue to undertake the following types of activities: -- normal employer outreach for participant placement purposes; -- memberships in business associations; -- participation on economic development boards and commissions; -- providing information on JTPA programs to economic development agencies; -- subscriptions to relevant publications; and -- conducting labor market surveys. E. Impairment of Contracts. Section 143(b) reads, in relevant part: (2) No program under this Act shall impair -- (A) existing contracts for services; or (B) existing collective bargaining agreements, unless the employer and the labor organization concur in writing with respect to any elements of the proposed activities which affect such agreement, or either such party fails to respond to written notification requesting its concurrence within 30 days of receipt thereof. Guidance: The Amendment provision, in effect, requires Section 401 grantees to undertake linkages and coordination with both employers and labor unions prior to the commencement of employment and training activities in a facility governed by a collective bargaining agreement. In the absence of a response from either management or labor, the activities may commence after a period of 30 days. F. Grievances. Section 144 reads, in relevant part: (d)(1) If a person alleges a violation of section 143 [Labor Standards] and such person exhausts the recipient's grievance procedure, or the 60-day time period described in subsection (a) [grievance filing deadlines] has elapsed without a decision, either party to such procedure may submit the grievance to the Secretary . . . (2) . . . the Secretary may modify or reverse the decision, or issue a decision if no decision has been issued, as the case may be, after an opportunity for a hearing in accordance with the procedures under section 166 [Administrative adjudication] . . . (f)(1) Except as provided in paragraph (2), remedies available to grievants under this section for violations of section 143 [Labor standards] shall be limited to -- (a) suspension or termination of payments under this Act; (b) prohibition of placement of a participant, for an appropriate period of time, in a program under this Act . . . (c) appropriate equitable relief (other than back pay). (2) In addition to the remedies available under paragraph (1), remedies under this section for violations of subsection (a)(4) [same benefits and working conditions as similarly situated employees], paragraphs (1) and (3) of subsection (b) [no displacement or layoff of current employees], and subsection (d) [Davis-Bacon Act requirements] of section 143 may include -- (a) reinstatement of grievant to the position held prior to displacement; (b) payment of lost wages and benefits, and (c) reestablishment of other relevant terms, conditions, and privileges of employment. (g) Nothing in subsection (f) shall be construed to prohibit a grievant from pursuing a remedy authorized under another Federal, State, or local law for a violation of section 143 [Labor Standards]. Guidance: The basic requirement at Section 144 of the Act, to have and maintain a grievance procedure for complaints and alleged violations of the Act and regulations, was not changed by the Amendments. The Amendments did add new subsections which apply to the handling of alleged section 143 Labor Standards violations. Grantees must modify their existing grievance procedures accordingly to cover such complaints. G. Recordkeeping and Investigations. Section 165 reads, in relevant part: (a)(3) In order to allow for the preparation of national estimates necessary to meet the requirements of subsection (c), recipients shall maintain standardized records for all individual participants and provide to the Secretary a sufficient number of such records to provide for an adequate analysis. (4)(A) Except as provided in subparagraph (B), records maintained by recipients pursuant to this subsection shall be made available to the public upon request. (b) Subparagraph (A) shall not apply to -- (i) information, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy; and (ii) trade secrets, or commercial or financial information obtained from a person and privileged or confidential. (c) Recipients may charge fees sufficient to recover costs applicable to the processing of requests for records under subparagraph (A) . . . . . (b)(3)(A) In carrying out any audit under this Act (other than any initial audit survey or any audit investigating possible criminal or fraudulent conduct), either directly or through grant or contract, the Secretary, the Inspector General, or the Comptroller General shall furnish to the State, administrative entity, recipient, or other entity to be audited, advance notification of the overall objectives and purposes of the audit, and any extensive recordkeeping or data requirements to be met, not fewer than 14 days (or as soon as practicable), prior to the commencement of the audit . . . (c) Each State, administrative entity, and each recipient (other than a subrecipient, grantee or contractor of a recipient) receiving funds under this Act shall -- (1) make readily accessible reports concerning its operations and expenditures as shall be prescribed by the Secretary; (2) prescribe and maintain comparable management information systems, in accordance with guidelines that shall be prescribed by the Secretary, designed to facilitate the uniform compilation, cross tabulation, and analysis of programmatic, participant, and financial data, on statewide and service delivery area bases, necessary for reporting, monitoring, and evaluating purposes, including data necessary to comply with section 167 [Nondiscrimination]; and (3) monitor the performance of service providers in complying with the terms of grants, contracts, or other agreements made pursuant to this Act. (d)(1) The reports required in subsection (c) shall include information pertaining to -- (a) the relevant demographic characteristics (including race, ethnicity, sex, and age) and other related information regarding participants; (b) the activities in which participants are enrolled, and the length of time that participants are engaged in such activities; (c) program outcomes, including occupations, for participants; (d) specified program costs; and (e) information necessary to prepare reports to comply with section 167 [Nondiscrimination]. . . Guidance: In general, grantees will continue to use the current forms and instructions for reporting program and fiscal data. Revision of reporting forms and instructions is under consideration by the Department. Guidance and instructions on any new forms will be issued as necessary. H. Nondiscrimination. The Amendments provide for additional duties for the Department's Directorate of Civil Rights. The JTPA Amendments of 1992 revised section 167 of the Act to require the Secretary of Labor to issue the final regulations to clarify the application of the nondiscrimination and equal opportunity provisions of the JTPA and provide uniform procedures for implementing these provisions. On January 15, 1993, the Directorate of Civil Rights, the DOL agency responsible for enforcing the various Federal nondiscrimination and equal opportunity statutes applicable to federally-assisted programs, issued a final rule to implement the nondiscrimination and equal employment opportunity requirements of the JTPA in 29 CFR part 34. The regulations became effective on February 15, 1993 and were transmitted to Section 401 grantees in DINAP Bulletin 92-22, "Final Rule to Implement the Nondiscrimination and Equal Opportunity Requirements of the Job Training Partnership Act of 1982," April 26, 1993. Guidance: This final rule is in addition to the Department's nondiscrimination and equal opportunity regulations at 29 CFR parts 31 and 32. All three parts are applicable to JTPA, Section 401 programs. In order to eliminate the burden of complying with other overlapping regulatory requirements, 29 CFR part 34 provides that compliance by JTPA grantees with part 34 constitutes compliance with the Department's Civil Rights Act of 1964 title VI regulations (29 CFR part 31) and with specified portions of the Department's Rehabilitation Act section 504 federally-assisted programs regulations (29 CFR part 32, subparts A, D and E). However, 29 CFR part 34 does not incorporate all of the requirements contained in 29 CFR part 32. Therefore, grantees remain responsible for the obligations imposed by subparts B and C and Appendix A of 29 CFR part 32, which pertain to employment practices and employment-related training, program accessibility, and accommodations under Rehabilitation Act section 504. Action. Section 401 grantees should ensure that their transition efforts are consistent with the guidelines found in this bulletin and Title I of the JTPA as amended. The text of the JTPA as amended is provided for reference and/or information purposes. Effective date. July 1, 1993 for JTPA Amendments (the provisions of 29 CFR part 34 were effective on February 15, 1993). Inquiries. Contact your DINAP Federal Representative.

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References: (a) Sections 314(c), 315(a) and 315(b) of the Job Training Partnership Act, as amended; (b) Sections 631.14(a), 631.14(b) and 631.20(b)(1) of the JTPA Regulations (Federal Register, September 4, 1994); (c) National Reserve Account Application Guidelines; (d) TEGL No. 10-94, "Needs-Related Payments in National Reserve Account (NRA) Projects under Title III of the Job Training Partnership Act (JTPA)", April 24, 1995. Effective Dates: The statutory and regulatory provision changes described herein are effective for funds appropriated for Program Year 1995 (during the period of availability, or until expended whichever occurs first). Statutory Provisions: The Conference Report from the Committee on Appropriations states that in order to enable States and local communities to deliver efficient and effective Title III readjustment programs, P.L. 103-333 (excerpt attached) adds greater flexibility in three areas. The 1995 Appropriations Act provides-- "that funds used from this Act to carry out title III of the Job Training Partnership Act shall not be subject to the limitation contained in subsection (b) of section 315 of such Act; "that the waiver allowing a reduction in the cost limitation relating to retraining services described in subsection (a)(2) of such section 315 may be granted with respect to funds used from this Act if a substate grantee demonstrates to the Governor that such waiver is appropriate due to the availability of low-cost retraining services, is necessary to facilitate the provision of needs-related payments to accompany long-term training, or is necessary to facilitate the provision of appropriate basic readjustment services; and "that funds used from this Act to carry out the Secretary's discretionary grants under part B of such title III may be used to provide needs-related payments to participants who, in lieu of meeting the requirements relating to enrollment in training under section 314(e) of such Act, are enrolled in training by the end of the sixth week after grant funds have been awarded." Policy: As a result of the P.L. 103-333 and the direction provided in the Conference Report from the Committee on Appropriations, this TEGL provides for the following Title III policy guidance for the administration of PY 1995 funds: a. Supportive Services and Needs-related Payments Cost Limitation: The twenty-five (25) percent spending limit contained in Sec. 315(b) of the Act and 20 CFR 631.14(b) for supportive services and needs-related payments under Title III is removed for programs operated with PY 1995 funds. Programs operated by the States and Substates with Part A formula block grants may be adjusted for PY 1995 according to State and Substate procedures. Cost limitations for projects being operated under Part B, Sec. 322 (Secretary's National Reserve Account) may be funded based upon the grant application and the award signed by the Grant Officer. b. Retraining Expenditure Minimum: The Conference Report states that this language modifies the State waiver authority under Sec. 315(a) permitting the Governor to reduce to 30 percent the requirement that not less than 50 percent of the funds be used for retraining services. The Report concludes that this language will enable local areas to determine the appropriate share of resources for up- front, cost-effective readjustment services that can facilitate rapid reemployment. Therefore, P.L. 103-333 modifies Sec. 315(a)(2) of the Act authorizing a Governor to waive the 50% retraining require- ment if a Substate Grantee demonstrates to a Governor that such waiver: (1) is appropriate due to the availability of low-cost retraining services; (2) is necessary to facilitate the provision of needs- related payments to accompany long-term training; or (3) is necessary to facilitate the provision of appropriate basic readjustment services. States are responsible for implementing systems which provide for Substate Grantees to request waivers pursuant to this provision. c. Enrollment in Training or Education Requirement for Needs-Related Payment Eligibility: The Conference Report states that this change allows for funds "awarded under the National Discretionary Grant Program to be used to provide needs-related payments to participants who, in lieu of meeting the general EDWAA requirement that they be enrolled in training by the 13th week after layoff, have enrolled in training or education by the end of the 6th week after the grant is awarded." The Report continues that this provision adds appropriate flexibility while "preserving the principle that retraining is most effective if individuals are enroll- ed in training early in the adjustment process." Therefore, grants awarded by the Department with National Reserve Account (Part B) PY 1995 funds shall include provisions allowing for participants to meet the "enrolled in training prerequisite" if they are enrolled in training or education programs by the end of the sixth week after funds have been awarded. This provision will be included in all National Reserve Account grants (except Additional Financial Assistance) which authorize expenditures for-4- needs-related payments, including projects under Sections 322 and projects like those authorized under Sections 325 (Defense Conversion Adjustment Program), 325A (Defense Diversification Program), and 326 (Clean Air Employment Transition Assistance). Action: For Part A, formula funds: States should take actions necessary and appropriate to advise Title III staff, Substate Grantees and other entities of the information provided in this TEGL in order to ensure the efficient and effective delivery of Title III readjustment programs consistent with these provisions. For Part B, NRA grant applicants: States should take actions necessary and appropriate to advise Title III staff, Substate Grantees and other entities of the provisions relating to needs- related payments in projects operated with the Secretary's Discretionary PY 1995 funds. These provisions are effective only for programs operated with funds appropriated for Program Year 1995.