DIRECTIVE	:	GENERAL ADMINISTRATION LETTER NO. 04-98
TO	:	ALL STATE EMPLOYMENT SECURITY AGENCIES
FROM	:	DAVID HENSON Director Office of Regional Management
SUBJECT	:	Classification of Labor Surplus Areas (LSAs)

1. Purpose. To transmit the new expiration date for reporting requirements approved under Office of Management and Budget (OMB) No. 1205-1207, burden hour estimates for completing petitions, and procedures for classifying Labor Surplus Areas.

2. References. Executive Orders 12073 and 10582; 20 CFR Parts 651 and 654.

3. Background. Under Executive Orders 12073 and 10582, the Secretary of Labor is required to classify LSAs and disseminate this information for the use of all Federal agencies. At present, Federal agencies utilize the LSA classifications for various purposes including procurement decisions, food stamp waiver decisions, certain Small Business loan decisions, as well as other purposes determined by the agencies.

   The Department of Labor's regulations for classifying LSAs are at 20 CFR Parts 651 and 654. The regulations were published in the Federal Register on January 5, 1979, (44 FR 1688). These regulations were modified and published in the Federal Register on April 12, 1983, (48 FR 15615). Revised regulations to add Metropolitan Statistical Areas and Primary Metropolitan Statistical Areas were published in the Federal Register on June 21, 1988.

4. Burden hour estimates. The estimated burden for completing a petition is one hour. The estimated burden includes time for reviewing instructions, gathering and maintaining data needed, and completing and reviewing the information. Comments regarding this estimate, or another aspect of the data collection, including suggestions for reducing the burden should be sent to the U.S. Employment Service, U.S. Department of Labor, Room N-4470, 200 Constitution Avenue, N.W., Washington, D.C. 20210 (Paperwork Reduction Project 1205-0207).

5. Office of Management and Budget (OMB) Approval. The reporting requirements for classification of labor surplus areas have been approved by the OMB according to the Paperwork Reduction Act of 1995, under OMB approval No. 1205-0207, expiration date 07/31/2001.

   NOTE: Persons are not required to respond to this collection of information unless it displays a currently valid OMB control number.

   Respondent's obligation to obtain or retain benefits are required under Executive Orders 12073 and 10582

6. Action Required. SESAs should provide this information and classification procedures to appropriate staff.

7. Inquiries. Direct question to William Mc Garrity, telephone number (202) 219-5185, ext. 129, or FAX (202) 208-5844.

8. Attachment. Procedures for Classifying Labor Surplus Areas