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FolderlD:
Folder Title:
The Reemployment Act of 1994 Product / Materials Book [Binder] [2]
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�CHARTS/GRAPHS
�African Americans in the Workforce
14
African Americans as a Percent of Total
12
10
8
6
4
0
0
'- ol Total W o r k l o r c e
% ot Displaced Workers (DW)
% ol DW with 1 3 years
On the job belore layoff
Source Current Population Survey Displaced Worfcer Supplement, January 1992
Prepared by O/ASP. 4\19\94
% of D W with 3+ years
O n the job before layoff
�Hispanics in the Workforce
12
Hispanics as a Percent of Total
10
8
0
nf Tntnl W o r k f o r c f
°o ol DisplaceH Workers (DW)
"o ol DW with 1 3 years
On the job beloie layoll
Source Current Population Survey Displaced Worker Supplement, January 1992
Prepared by O/ASP. 4\19\94
% of D W with 3+ years
On the job before layoff
�Where The New Jobs Are
Managerial, Professional, & Technical
- Technical Sales Support
- Technical Marketing
- Laboratory Technicians (including health)
- Factory Technicians
- Technical/Clerical
�r
Unemployed Not Expecting toGet, obs Back
Other Job Losers
56%
Average for Four Prior Recessions
Other Job Losers
86%
Recent Labor Market Contraction
July 1990-June 1992
Note: The National Bureau of Economic Research has determined that the recent recession began in
July 1990 and ended in March 1991. However, the July 1990-June 1992 period is used for the
comparison with earlier recessions because the number of job losers did not peak until June 1992,
well past the official endpoint of the recession. In prior recessions the peak in the number of job
coincident with the official endpoints.
Source: DOL\Bureau of Labor Statistics, Current Population Survey.
�THE REEMPLOYMENT ACT OF 1994 IS EXPECTED TO SERVE OVER 6 MILLION
PARTICIPANTS * By FISCAL YEAR 2000
Thousands
1400
1200
1000
1993
1994
1995
1996
1997
1998
1999
*Defined as those who voluntarily participate in program services.
Source: EDWAA
Prepared ^ ^ A S P 3/7/94
2000
�Ean *i gs Gap Wde I'I g
Annual Mean Income b Years of School
y
Percent of M e a n A n n u a l Income
160%
140%
140%
120%
Mean Annual L
Income
160%
120%
100%
100%
80%
80%
60%
60%
40%
40%
1974 1976 1978 1980 1982 1984 1986 1988 1990 1992
Source: Bureau of Census. Current Population Survey, as tabulated by DOUOASP.
Note:
_Workcrs 25 to 64 years with earnings. Data on educational attainment for 1991 and 1992
|e not directly comparable to prior years due to c h ^ ^ H in the questionnaires.
i
Mean Annual
Income
�Long Term Unemployment is Increasing
Persons Unemployed 6 Months or More as a Percent of Total Unemployment'
Percent
20
18
16.5
16
14
12
10.3
10
1950s
1960s
1970s
Decade
(through 1993)
Source: BL
Prepared
SP 3/7/94
1980s
1990s*
�THE REEMPLOYMENT ACT OF 1994
(MOST OF THE FUNDING IS DISCRETIONARY)
Discretionary Services
and Income Support
Mandatory Income
Support
$4000
$3237
$3436
$2815 $2891
$3500
$3000
$2500
$2000
$1500
$1000
$500
$0
1993
1994 1995 1996 1997 1998 1999 2000
Note: FY93-94 includes only EDWAA
(Does not includ^TAA, DDP, DCA,
Clean Air dr^^MTA Bridge)
�REEMPLOYMENT ACT BENEFICIARIES
(Full-Implementation in FY 2000)
Dislocated W. Universe
Job Search Assistance
Participants*
Assessment/Counseling
Classroom Training
(OJT)
(Basic Educ.)
Income Support
0
500
100
,0
150
,0
Thousands
Source: EDWAA
Prepared by: GASP 3/7/94
'Defined as those who volunt
rticipate in program services.
2,000
2,500
�VIDEO
�U.S. Department of Labor Video
"One Stop Shop": The Reemployment Act of 1994
Length: 7:05
This short video outlines the need for a structural change in the traditional approaches to
unemployment.
Gone are the days when American workers needed unemployment insurance "just to tide
them over" until they returned to their old jobs. In today's changing labor market, many
workers are finding their jobs are simply disappearing - due to international trade,
corporate downsizing, or technological changes.
The President's Reemployment Art of 1994 will change our current unemployment system
into a "reemployment system." Designed to help workers get their next job when faced
with long-term unemployment, the Reemployment Act is based on several current
examples of what works across America.
The seven minute video is narrated by Labor Secretary Robert Reich, includes excerpts
from President Clinton's State of the Union address, and features several workers and
business people who have experienced firsthand how programs that work can make a
difference.
ror more information, call the DOL Office of Public Attain at (202) 219-8211.
�TECHNICAL RESOURCES
�AMERICA'S JOB BANK
FACT SHEET
America's^
Job Bank
AMERICA'S JOB BANK
America's Job Bank is a computerized national employment referral system
that matches jobseekers with employers looking to fill job vacancies. The
network links each state and the District of Columbia, Puerto Rico, the Virgin
Islands and Guam. The Job Bank provides a data base of employment
opportunities in each location and electronically transmits the information to
each state. States, in turn, link qualified candidates with the existing openings
through more than 2,000 local Job Service offices. America's Job Bank
routinely helps states address labor imbalances at local, state and national
levels. It is particularly timely because of the rapid and profound changes that
are occurring in our national labor market, including the downsizing of our
nation's military and defense industry. America's Job Bank was formerly
known as the Interstate Job Bank. The name change reflects the greatly
expanded services and nationwide participation.
ORIGIN OF JOBS
Each state provides its residents with job-related services that operate under
names such as Employment Security Agency, Labor Department and
Community Service Center. Employers in each state are encouraged to list
their job openings with their state agency. The state agency then provides
information on the openings to job seekers through local offices. Over
750,000 jobs are available on any day through the nation's state-operated
offices.
Jobs that may be difficult to fill from the local pool of •workers are listed in
America's Job Bank. Approximately 60,000 job openings meet the
qualifications. Most of the jobs listed are full time, although temporary and
part-time listings are included, and most are in the private sector.
Approximately 5 percent are in government. The openings come from all
over the United States and represent the following categories:
Professional and Technical
Managerial
Clerical and Sales
Blue Collar
32 percent
14 percent
19 percent
35 percent
�JOB LISTINGS
When an employer lists a job vacancy with a state's employment service
agency, the vacancy is entered into the agency's statewide computer network
so that it is available to job seekers locally as well as to job seekers in other
areas of the state who may wish to relocate. Each listing contains a brief job
description; salary and benefit information; education, skill and experience
requirements; and the state and city in which the job is located.
Once the job opening is entered into a state's system, it can then be passed on
to the America's Job Bank Service Center in Albany, New York, for inclusion
in America's Job Bank. Approximately 30,000 new job listings are received
each month. This is accomplished overnight when states electronically
submit listings to the America's Job Bank computer. At the same time, states
can electronically cancel job listings that have been filled. Each night, the new
jobs and updated listings received by individual states are downloaded to each
state's computer.
Employment Service staff in 40 states have the capability of accessing
America's Job Bank vacancies through their statewide networks. Job seekers
can directly access America's Job Bank in 34 states where the employment
service has installed self-service computer systems in local offices. In 18
states, America's Job Bank is available on touch-screen computers located in
shopping malls, convenience stores and other public buildings.
In states that have not installed the new technology, America's Job Bank
vacancies are available on microfiche viewers.
Military personnel located at 350 bases in 17 countries also have access to
America's Job Bank. Personal Computer diskettes containing updated
America's Job Bank listings are mailed to bases and other facilities where
military personnel, spouses and civilian defense workers are being impacted
by defense downsizing.
America's Job Bank Service Center operates toll-free help lines that are
available to military bases in Europe and the United States. The service
center staff is available to answer questions concerning job listings as well as
questions related to services available to returning military personnel
through their local employment service and other government agencies.
�JOB SEEKERS
When a job seeker is informed of a job opportunity in another state or learns
of the opening using a self-initiated computer search, the employment
service staffer serving the applicant phones the help desk at the America's Job
Bank Service Center in Albany. Here, a member of the referral assistance staff
can provide up-to-the-minute information on the availability of the job and
how the employer wants the job seeker to apply for the job.
In most cases, an employer will request a resume. In other cases the
individual is requested to contact the employer directly. The staff at the
Albany Service Center currently handles over 3,000 inquiries each week.
PERFORMANCE
Since 1991, America's Job Bank has listed 717,000 jobs on its nationwide
computer network. A total of 218,000 client referrals have been reported to
America's Job bank since 1991.
1991
Listings
Referrals reported to AJB
Placements
1992
1993
156,000
45,000
221,000
66,000
340,000
107,000
15,537
COST
There is no charge to either employers that list their job vacancies or to job
seekers who utilize America's Job Bank to locate employment. The services
provided by America's Job Bank and each state's Job Service program are prepaid through Unemployment Insurance taxes paid by employers.
ADMINISTRATION
The America's Job Bank Service Center, located in Albany, is operated by the
New York State Department of Labor under a cooperative agreement with the
Employment and Training Administration of the U.S. Department of Labor.
The Service Center is staffed by 30 employees who provide technical and
program support to public employment service agencies in each state, district
and territory. America's Job Bank utilizes the New York State Department of
Labor's mainframe computer for its data processing and data communication
tasks. America's Job Bank operates on an annual budget of $1.9 million.
AJB R-l
�ALLOCATION OF DISLOCATED WORKER FUNDING UNDER THE REA
As shown in the attached table , the Reemployment Act of 1994 (REA) proposes
several changes that would affect the initial allocation of dislocated worker funding
among the States - an increase in the share of funds to be retained at the Federal
level and 2 changes in the formula used to allocate theremainingfunds to the States.
The Reemployment Act proposes to increase the share of program funds that is
initially retained at the National levelfrom20% to 25% for the primary purpose of
providing discretionary grants to States and localities to allow them to address
unexpected large scale economic dislocations and major natural disasters. This is
needed because:
-
Most large scale economic dislocations and natural disasters are unexpected
and cannot be adequately addressed through formula allocations in advance of
the dislocation or disaster, a larger nationalreservewill enable the system to be
moreresponsivein terms of providing money quickly to deal with such events.
-
The occurrence of large scale economic dislocations will be increased over the
1990's by the scheduled closing of major military bases; the resulting
economic dislocations cannot be addressed through formula allocations because
the exact location of most of these closings is not known.
The Reemployment Act also proposes to base the initial allocation of funds to the
States on a revised formula that more effectively targets program funds to those States
withrelativelygreater numbers of dislocated workers.
The current EDWAA formula allocates funds to a specific State on the basis of three
factors that are given equal weight - therelativeshares of the State of total
unemployed persons, of total excess unemployed persons (above 4.5%), and of total
long-term unemployed persons (unemployed 15 weeks or longer).
The REA proposes torevisethis formula by changing the number of weeks defining
long-term unemployed, from 15 weeks or more of unemployment to 27 weeks or
more. This change will more effectively target the formula funds on dislocated
workers in need of readjustment assistance because:
-
Research has shown that , unemployment of 27 weeks or longo- is a highly
effective indicator that a person has suffered a permanent job loss and is need
ofreadjustmentservices to obtain reemployment
The REA also proposes to include a stop gain/stop loss provision that would prevent
year-to-year changes in a State's allocationfromfalling more than 10% or increasing
more than 30%, in order to prevent disruption of on-going program operations due to
year-to-year changes in funding.
USDOL, MARCH 1994
�- 2 -
REEMPLOYMENT ACT: PROPOSED CHANGES IMPACTING
ON INITIAL ALLOCATION OF FUNDS TO THE STATES
CURRENT I AW
PROPOSED LAW
20%
25%
1). Unemployed
One-third allotted based
on relative State share of
total unemployment.
Same
2). Excess unemployed
One-third allotted based
on relative State share of
unemployment in excess
of 4.5%
Same
3). Long-term unemployed
One-third allotted based
onrelativeState share of
the number of persons
unemployed 15 weeks or more.
Same, except length
of unemployment
changed to 27 weeks
or more
4). Stop gain/stop loss
No provision
Limits year-to-year
change in State
allotment to 1 %
0
loss and 30% gain.
FEDERAL SHARE
OF PROGRAM FUNDS
FORMULA FOR
STATE ALLOCATIONS
�February 15, 1994
TH2 PROPQSBD REEMPLOYMENT ACT OP 1994
COMPARED TO O O RECOMMENDATIONS
A
OAO Mndingi/lUcoanvadaeioaa
ftsenployaeae Act Proposal
Reduce duplication of
services.•
Consolidates six separate dislocated worker
programs into comprehensive one, eliminacing
differing e l i g i b i l i t y rules, definitions, data
collection and accounting requirements. Waiver
authority will help States and localities
integrate or consolidate DOL (and other)
programs. M w governance system is intended no
e
provide framework for development of unified,
streamlined structure for a l l programs.
Case confusion and access to
services.*
Dislocated workers can access information,
services, and benefits through single contact
point. Workers will have access to performance
data on Career Centers and other local
providers of education, training, and
employment services. Through One-Stop, offers
States incentives to integrate training and
employment-related services for a l l Americans.
Lower administrative costs.*
Efficiency and f l e x i b i l i t y generated by
integration and consolidation of DOL programs
and services, including client tracking
systems, may result in substantial
administrative savings.
Improve client tracking.*
Case management will be available for workers
needing intensive services, including
development of an individual reemployment plan.
Investments in LMI systems and technology will
provide States and localities the opportunity
to develop integrated client-centered tracking
systems, using common application form and
uniform reporting requirements.
Flawed certification process
means that TAA benefits are
not equally accessible to
a l l workers.••
Establishes a single standard of eligibility
for DOL dislocated worker programs, covering
a l l permanently laid-off workers without regard
to cause of dislocation. Ensures easier and
quicker access to services through State rapid
response.
Services not tailored to
individual needs.**
Dislocated workers receiving intensive services
will develop individual reemployment plans for
customizing services to individual needa and
local labor market circumstances.
�February 15,
1994
Insufficient counseling for
participants in training;
not linked to related
:obs.
Dislocated workers receiving intensive services
and training will have access to individualized
counseling and career planning that targets
short- and long-term employment prospects.
Training waiver provision is
too lax.**
There is no provision for waiving training; in
order to receive extended income support,
eligible workers must have exhausted UI
benefits and be successfully participating in
training.
Need system to monitor
performance and evaluate
effectiveness.
Customers will have access to performance data
on career centers and other local service
providers in order to make informed decisions
about their employmer.- future. One-Stop
centers will be evaluated each year using
various measures of tangible results.
Continued operation will depend on successful
performance against established customeroriented measures.
If assisting workers to
obtain new s k i l l s , tie
receipt of benefits closely
to participation in
training.••«
Eligible workers who are enrolled in training
and who have exhausted their UI benefits will
receive income support, as long as they are
successfully participating in approved
training.
Help dislocated workers
before or at the time of job
loss.•••
Early outreach and information to affected
workers i s emphasised. States must contact
representatives of affected workers and the
employer within 48 hours of learning about a
large-scale closure or layoff, within 5 days,
they must provide workers with onsite
information and appropriate reemployment
services. Profiling identifies workers at risk
of exhausting their UI benefits within five
weeks of unemployment, referring them to
immediate job search assistance and other
services.
To sustain workers and
communities, need to create
new job opportunities as
well as provide retraining
and incoma support.*«•
States may use funds to provide services to
upgrade s k i l l s of workers at risk of permanent
lay-offs or to help in business conversion or
restructuring to avert closings or substantial
layoffs. States also may pay UI benefits under
short-time compensation program to employees
working reduced hours to avoid layoff or
closure. National demonstrations to develop or
improve ways to address economic dislocation
and to promote worker adjustmeno may include
s k i l l s upgrading of workers at risk or business
conversion or restructuring.
*
•
*•
GAO Report on Multiple Employment Training Programs, January 28,. 1994.
GAO Report on Flaws in TAA Program, October 19, 1993.
GAO Report on Redwood Training Programs. December 13, 1993.
�COMPARISON OF EXISTING DISLOCATED WORKER PROGRAMS
WITH THE REEMPLOYMENT ACT OF 1994
PROGRAM DESIGN
ELEMENT
Eligibility
CURRENT TRADE
ADJUSTMENT ASSISTANCE
PROGRAM
Workers are eligible if
increased imports are
determined to have
"contributed importantly" to
unemployment at the subject
firm.
CURRENT EDWAA
NAFTA TRANSITION
PROGRAM
PROGRAM
All permanently laid-off
workers are eligible for all
services regardless of
reason for job loss.
Separated workers are
eligible if increased imports
from Canada and Mexico
are determined to have
"contributed importantly" to
decreased production or
sales at the subject firm, or
if the workers' firm has
shifted production to Canada
or Mexico.
Reemployment Act
Of 1994 (Dislocated Worker
Provisions Only)
Establishes a single standard
of eligibility for DOL
dislocated worker programs.
Covers all permanently laidoff workers, including parttime and seasonal
employees, without regard to
cause of dislocation.
Expected to serve 750,000
workers in 1995, building to
1.3 million at full
implementation in 2000. All
eligible dislocated workers
who need and want
reemployment services will
receive them.
updated April 2 9 ,
�Comparison of Existing Dislocated Worker Programs
with the Re-employment Act of 1994
PROGRAM DESIGN
ELEMENT
Certification
CURRENT TRADE
ADJUSTMENT ASSISTANCE
PROGRAM
CURRENT EDWAA
NAFTA TRANSITION
PROGRAM
PROGRAM
After workers, their
representative, or employer
petition for certification, DOL
conducts an investigation to
determine the impact of
imports on employment at
the subject firm.
Local grantees determine
individual eligibility by
applying the definition of
"dislocated worker" to
individuals applying for
program services, taking into
account local service
priorities and available
resources.
Individuals belonging to
worker groups that are
certified as eligible to apply
for TAA benefits are notified
by mail and by publication of
the certification information
in newspapers of general
circulation.
Workers or their
representative, including
Title III grantees and
community-based
organizations, may file a
petition with the Governor,
who must make a
preliminary finding within 10
days. DOL then has 30
days to review the petition
once it is submitted by the
Governor.
Individuals belonging to the
worker groups certified by
the Secretary as eligible for
NAFTA Transition benefits
will be notified by mail and
by publication of the
certification information in
newspapers of general
circulation.
Reemployment Act
Of 1994 (Dislocated Worker
Provisions Only)
Local grantees determine
individual eligibility by
applying the definition of
"dislocated worker" to
individuals applying for
program services.
TAA program will be
absorbed into REA on July 1,
1995. Any worker certified as
eligible under TAA before July
1, 1995 will continue to
receive the remaining TAA
services and benefits to which
they are entitled.
From July 1995 through July
1999, workers will be able to
apply for trade-impacted
certification through a process
under REA similar to that
under current TAA. Worker
who receive such certification
will receive mandatory income
support while in training
regardless of their tenure with
their previous employer.
updated April 29, 1
�Comparison of Existing Dislocated Worker Programs
with the Re-employment Act of 1994
PROGRAM DESIGN
ELEMENT
CURRENT TRADE
ADJUSTMENT ASSISTANCE
PROGRAM
Early Intervention
TAA program information is
made available to clients at
local offices of State
Unemployment Insurance
and Job Sen/ice agencies.
CURRENT EDWAA
NAFTA TRANSITION
PROGRAM
PROGRAM
Governors may provide onsite response to plant
closures and substantial
layoffs upon notification, and
training may begin before
workers are laid off.
Governors will provide onsite assistance under
EDWAA in response to
notification of plant closures
or substantial layoffs.
NAFTA Transition program
information is also made
available to clients at local
offices of State
Unemployment Insurance
and Job Service agencies.
Reemployment Act
Of 1994 (Dislocated Worker
Provisions Only)
Early intervention and
outreach are key to
reemployment approach. Onsite rapid response for
dislocated workers provided
by State within 5 days of
receiving WARN notice.
Profiling will identify UI
claimants likely to exhaust UI
benefits before obtaining
employment and refer them
for services.
updated April 2 9 , 1,
�PROGRAM DESIGN
ELEMENT
Services
CURRENT TRADE
ADJUSTMENT ASSISTANCE
PROGRAM
Provides readjustment
sen/ices, including skill and
remedial training (up to 104
weeks), job search
assistance, and relocation
assistance.
CURRENT EDWAA
NAFTA TRANSITION
PROGRAM
PROGRAM
A broad menu of basic
readjustment services,
including: labor market
information and career
counseling, testing and
assessment, and job search
and placement assistance
such as resume preparation
and interviewing skills, job
matching and referral.
Upon a finding by the
Governor that the layoff is
NAFTA-related, rapid
response assistance and
basic readjustment services
will be made available under
EDWAA
Basic and remedial
education and skill training,
including classroom and onthe-job training.
Entrepreneurial training.
Out-of-area job search and
relocation assistance.
Upon certification by the
Secretary, the NAFTA
Transition program provides
readjustment services,
including skill and remedial
training (up to 104 weeks),
job search assistance, and
relocation assistance.
Reemployment Act
Of 1994 (Dislocated Worker
Provisions Only)
Eligible dislocated workers
will have access to basic
readjustment services,
including information on
possible careers, job
openings, training programs,
and the performance of
training and education
programs, assessment of
general skills and aptitudes,
and job search assistance.
Dislocated workers unable to
obtain employment through
basic services will have
access to more intensive
services, including diagnostic
testing, development of a
customized reemployment
plan, and assistance in
selecting appropriate training
and support service providers.
Dislocated workers who need
new or higher-level skills will
be provided education or
training (up to 104 weeks)
and will be able to choose
training and service providers
based on performance data.
Employed workers at risk of
dislocation who need
improved skills to retain their
current job may receive skills
upgrading for a broad range
of training activities (e.g.,
basic skills, high performance
practices)
updated April 2 9 , 1,
�PROGRAM DESIGN
ELEMENT
Income Support
CURRENT TRADE
ADJUSTMENT ASSISTANCE
PROGRAM
CURRENT EDWAA
NAFTA TRANSITION
PROGRAM
PROGRAM
Workers in approved training
qualify for TRA payments
equal to the weekly UI
amount. Combined UI and
TRA payments may be up to
a maximum of 78 weeks. A
worker may receive TRA
even if not in training if the
State Agency finds that
training is not appropriate or
feasible for the worker.
Needs-related payments at
the UI level following
exhaustion of UI for
participants in training who
enrolled by the 13th week of
their UI benefit period.
Participants enrolled in
NAFTA Transition program
training by 16th week of UI
benefit period are entitled to
receive income support
payments. Combined UI
and income support
payments may be up to a
maximum of 78 weeks while
workers are in approved
training. There is no
authority to waive the
requirement that workers
must be in training to
receive income support
payments after exhausting
UI.
Reemployment Act
Of 1994 (Dislocated Worker
Provisions Only)
Beginning in 2000, all eligible
dislocated workers enrolled in
long-term training or
education will receive capped
mandatory income support
beyond the receipt of regular
UI if they have one or more
years of tenure with their
previous employer, maximum
extended income support will
be 26 weeks for those with
tenure of more than 1 year
but less than 3 years and 52
weeks for those with 3 or
more years.
During the 1995-99 transition
period, extended income
support will be provided on a
capped mandatory basis only
to those participants who
have 3 years or more of
tenure. Dislocated workers
with 1-3 years of tenure may
be eligible for discretionary
income support during this
period.
Upon full implementation of
the program in FY 2000, all
extended income support will
be capped mandatory
funding.
updated April 2 9 , 1
�Reemployment Act
Of 1994 (Dislocated Worker
Provisions Only)
CURRENT TRADE
ADJUSTMENT ASSISTANCE
PROGRAM
CURRENT EDWAA
NAFTA TRANSITION
PROGRAM
PROGRAM
Participant
Support
No support services are
provided under TAA per se.
Access to support services
is provided through referrals
to other programs.
Supportive services
including child care,
transportation, meals,
emergency medical
assistance, family
counseling, or other services
so the individual can
participate in the program.
States are directed to
provide participant support
for certified workers through
the EDWAA system
Supportive services include
child care, transportation,
meals, emergency medical
assistance, family
counseling, or other services
so the individual can
participate in training.
Those dislocated workers not
meeting a tenure screen for
extended income support may
qualify for needs-based
payments under support
services Some dislocated
workers may also receive
relocation assistance, out-ofarea job search, and other
supportive services (e.g.,
dependent care,
transportation).
Funding
Funds, classified as
mandatory, are appropriated
annually by Congress. TRA
is an entitlement to workers
who meet the eligibility
criteria. TAA training and
assistance are capped
entitlements (capped
currently at $80 million
per year).
Funds classified as
discretionary are
appropriated annually by
Congress. Approximately
$1.1 billion will be available
as part of the 1994
appropriation under Title III
of the Job Training
Partnership Act.
Funds, classified as
mandatory, are appropriated
by Congress. Income
support is an entitlement to
workers who meet the
eligibility criteria (i.e.,
enrollment in training).
NAFTA Transition program
training and assistance are
capped entitlements ($30
million for one year).
Funds classified as
discretionary are appropriated
annually by Congress. The
Administration has requested
$1,465 million in the FY 1995
budget under current EDWAA
authority.
PROGRAM DESIGN
ELEMENT
During FY 1995-99, a portion
of the income support costs
will be provided through the
UI system as capped
mandatory funding.
Beginning in 2000, all
extended income support will
be provided through the UI
system as capped mandatory
funding
updated April 2 9 , 1
�PROGRAM DESIGN
ELEMENT
Effective Period
CURRENT TRADE
ADJUSTMENT ASSISTANCE
PROGRAM
Authorized on a Fiscal Year
basis through FY 1998.
CURRENT EDWAA
NAFTA TRANSITION
PROGRAM
PROGRAM
On-going authorization on a
Program Year basis as part
of the Job Training
Partnership Act.
Takes effect on January 1,
1994. Assistance is phased
in to the comprehensive
program upon enactment, or
ended as of September 30,
1998
Reemployment Act
Of 1994 (Dislocated Worker
Provisions Only)
Ongoing authorization on a
Program Year basis beginning
with Program Year 1995
(July 1, 1995).
updated A p r i l 2 9 , 1
�COMPARISON OF DISLOCATED WORKER PROVISIONS
IN THE CLEAN AIR PROGRAM AND THE REEMPLOYMENT ACT OF 1994
PROGRAM DESIGN ELEMENT
CLEAN A I R EMPLOYMENT
TRANSITION ASSISTANCE
PROGRAM
REEMPLOYMENT A C T OK 1994
(DISLOCATED WOKKEK
PROVISIONS ONLY)
Permanently laid off workers are eligible if they
meet the eligibility requirements under Section
301(a) of the current EDWAA program and are
terminated or laid off as a consequence of
compliance with the Clean Air Act as amended.
Establishes a single standard of eligibility for DOL dislocated worker
programs. Covers all permanently laid-off workers, including part-time
and seasonal employees, without regard to cause of dislocation.
Certification
Grantees determine individual eligibility by
applying the definition of "dislocated worker"
to individuals applying for program services.
The grantee must demonstrate that the
employment loss is the consequence of
compliance with the Clean Air Act as amended.
Local grantees determine individual eligibility by applying the definition
of "dislocated worker" to individuals applying for program services.
Early Intervention
Governors may provide on-site response to
plant closures and substantial layoffs upon
notification. The provision of training and
other program services may begin before
workers are laid off.
Early intervention and outreach are key to reemployment approach. Onsite rapid response for dislocated workers provided by State within 5
days of receiving WARN notice. Profiling will identify UI claimants
likely to exhaust UI benefits before obtaining employment and refer them
for services.
Eligibility
Expected to serve 750,000 workers in 1995, building to 1.3 million upon
full implementation. All eligible dislocated workers who need and want
reemployment services will receive them.
:9, 1994
�PROGRAM DESIGN ELEMENT
Services
CLEAN AIR EMPLOYMENT
TRANSITION ASSISTANCE
PROGRAM
REEMPLOYMENT A C T OK 1994
(DISLOCATED WORKER
PROVISIONS ONLY)
A broad menu of basic readjustment services,
including: labor market information and career
counseling, testing and assessment, and job
search and placement assistance such as resume
preparation and interviewing skills, job
matching, and referral.
Eligible dislocated workers will have access to basic readjustment
services, including information on possible careers, job openings, training
programs and the performance training and education programs,
assessment of general skills and aptitudes, and job search assistance.
Basic and remedial education and skill training,
including classroom and on-the-job training.
Entrepreneurial training.
Out-of-area job search and relocation assistance.
Dislocated workers unable to obtain employmenl through basic services
will have access to more intensive services, including diagnostic testing,
development of a customized reemployment plan, and assistance in
selecting appropriate training and support service providers.
Dislocated workers who need new or higher-level skills will be provided
education or training (up to 104 weeks) and will be able to choose
training and service providers.
Employed workers at risk of dislocation who need improved skills to
retain their current job may receive skills upgrading for a broad range of
training activities (e.g., basic skills, high performance practices).
Income Support
Grantees must provide for needs-related
payments on a means-tested basis at the higher
of the UI benefit level or the poverty level for
the affected individual's family size. Payment
follows exhaustion of UI for participants in
training who enrolled by the end of the 13th
week of their UI benefit period, or within 8
weeks of learning that a short term layoff will
exceed 6 months.
Beginning in 2000, all eligible dislocated workers enrolled in long-term
training or education will receive capped mandatory income support
beyond the receipt of regular UI if they have at least one year of tenure
with their previous employer; maximum extended income will be 26
additional weeks for those with 1-3 years of tenure and 52 additional
weeks for those with 3 or more years of tenure.
During the 1995-99 transition period, extended income support will be
provided on a capped mandatory basis only to those participants who
have 3 years or more of tenure. Dislocated workers with 1-3 years of
tenure may be eligible for discretionary income support during this
period.
Upon ftill implementation of the program in FY 2000, all extended
income support will be capped mandatory funding.
updatcd^^^W, 1994
«
�1
PROGRAM
REEMPLOYMENT ACT OK 1994
(DISLOCATED WORKER
PROVISIONS ONLY)
Participant Support
Supportive services including child care,
transportation, meals, emergency medical
assistance, family counseling or other services
so the individual can participate in the program.
Those dislocated workers not meeting a tenure screen may qualify for
needs-based payments under support services. Some dislocated workers
may also receive relocation assistance, out-of-area job search, and other
supportive services (e.g., dependent care, transportation).
Funding
Discretionary funds in the amount of $50
million were appropriated by Congress in both
FY 1992 and FY 1993. These funds are due
to expire June 30, 1994. For FY 1995,
CAETA projects will continue to be funded, but
will use the Secretary's discretionary account
until enactment of the comprehensive program.
Funds classified as discretionary are appropriated annually by Congress.
The Administration has requested $1,465 million in the FY 1995 budget
under current EDWAA authority.
PROGRAM DESIGN ELEMENT
C L E A N AIR EMPLOYMENT
TRANSITION ASSISTANCE
Effective Period
The program is authorized through FY 1995.
During FY 1995-99, a portion of the income support costs will be
provided through the UI system as capped mandatory funding.
Beginning in 2000, all extended income support will be provided through
the UI system as capped mandatory funding.
Ongoing authorization on a Program Year basis beginning with Program
Year 1995 (July 1, 1995).
updated
, 1994
�CO]\ PARISON OF DEFENSE-RELATED DISLOCATE ) WORKER PROGRAMS
WITH THE REEMPLOYMENT ACT OF 1994
PROGRAM DESIGN
DEFENSE CONVERSION
ELEMENT
DEFENSE DIVERSIFICATION PROGRAM
ADJUSTMENT PROGRAM
Eligibility
Permanently laid-off workers are
eligible if they meet the eligibility
requirements under the current
EDWAA program and are
adversely affected by reductions in
expenditures by the United States
for defense or by the closure of
United States military facilities.
R E E M P L O Y M E N T A C T O F 1994
(Dislocated Worker
Provisions Only)
Members of the Armed Forces -- if the
member was on active duty or full-time
National Guard duty on 09-30-90; and
during the 5 year period beginning on that
date is involuntarily separated from active
duty or full time National Guard duty; or is
separated from active duty or full time
National Guard duty pursuant to a special
separation benefits program under 1174a of
title 10, USC, or the voluntary separation
incentive program under section 1175 of that
title; is not entitled to retired or retainer pay
incident to that separation; and applies for
services before the end of the 180-day
period beginning on the date of that
separation.
Defense Employees - Civilian employees of
the Depts. of Defense or Energy if, during
the 5 year period beginning 10-01-92, are
terminated as a result of reductions in
defense spending; and are not entitled to
retired or retainer pay incident to that
separation.
Defense Contractor Employees ~ Employees
of private defense contractors if, during the
5 year period beginning 10-01-92, are
terminated as a result of reductions in
defense spending; and are not entitled to
retired or retainer pay incident to that
separation.
updated April 29, 1994
Establishes a single standard of
eligibility for DOL dislocated
worker programs. Covers all
permanently laid-off workers,
including part-time and seasonal
employees, without regard to
cause of dislocation.
Expected to serve 750,000
workers in 1995, building to 1.3
million upon full
implementation. All eligible
dislocated workers who need and
want reemployment services will
receive them.
�Comparison of Defense-Related Dislocated Worker Programs
with the Re-employment Act of 1994
PROGRAM DESIGN
DEFENSE CONVERSION
ELEMENT
ADJUSTMENT PROGRAM
DEFENSE DIVERSIFICATION PROGRAM
REEMPLOYMENT A C T OF 1994
(Dislocated Worker
Provisions Only)
Certification
Grantees determine individual
eligibility by applying the definition
of "dislocated worker" to
individuals applying for program
services. The grantee must
demonstrate that the employment
loss is the consequence of
reductions in expenditures by the
United States for defense or by the
closure of United States military
facilities.
Grantees determine individual eligibility by
applying the definition of "dislocated
worker" to individuals applying for program
services. The grantee must demonstrate that
the employment loss is the consequence of
reductions in expenditures by the United
States for defense or by the closure of
United States military facilities.
Local grantees determine
individual eligibility by applying
the definition of "dislocated
worker" to individuals applying
for program services.
Early Intervention
Governors may provide on-site
response to plant closures and
substantial layoffs upon
notification. The provision of
training and other program services
may begin before workers are laid
off.
Governors shall provide on-site response to
plant closures and substantial layoffs upon
notification. The formation of labormanagement committee should be promoted.
An initial survey of the affected workers and
the provision of initial basic readjustment
service should be undertaken. The provision
of training and other program services may
begin before workers are laid off.
Early intervention and outreach
are key to reemployment
approach. On-site rapid response
for dislocated workers provided
by State within 5 days of
receiving WARN notice.
Profiling will identify UI
claimants likely to exhaust UI
benefits before obtaining
employment and refer them for
services.
•
updated April 29, 1994
�Comparison of Defense-Related Dislocated Worker Programs
with the Re-employment Act of 1994
PROGRAM DESIGN
ELEMENT
Services
DEFENSE CONVERSION
DEFENSE DIVERSIFICATION PROGRAM
Basic and remedial education and
skill training, including classroom
and on-the-job training.
Entrepreneurial training.
Out-of-area job search and
relocation assistance.
1994
(Dislocated Worker
Provisions Only)
ADJUSTMENT PROGRAM
A broad menu of basic
readjustment services, including:
labor market information and career
counseling, testing and assessment,
and job search and placement
assistance such as resume.
preparation and interviewing skills,
job matching, and referral.
REEMPLOYMENT ACT OF
A broad menu of basic readjustment
services, including: labor market
information and career counseling, testing
and assessment, and job search and
placement assistance such as resume
preparation and interviewing skills, job
matching, and referral.
Basic and remedial education and skill
training, including classroom and on-the-job
training.
Skills upgrading, if it is integral to the
conversion of a defense facility and
necessary to prevent a closure or mass
layoff, and is to replace or update obsolete
skills with marketable skills.
Entrepreneurial training.
Out-of-area job search and relocation
assistance.
Funds may also be used for the development
and introduction of high performance
workplace systems, employee and
participative management systems, and
workforce participation in the evaluation,
selection and implementation of new
production technologies.
updated April 29, 1994
Eligible dislocated workers will
have access to basic readjustment
services, including information
on possible careers, job openings
and on the performance of
training and education programs,
assessment of general skills and
aptitudes, and job search
assistance.
Dislocated workers unable to
obtain employment through basic
services will have access to more
intensive services, including
diagnostic testing, development
of a customized reemployment
plan, and assistance in selecting
appropriate training and support
service providers.
Dislocated workers who need
new or higher-level skills will be
provided education or training
and will be able to choose
training and service providers
based on performance data.
Employed workers at risk of
dislocation who need improved
skills to retain their current job
may receive skills upgrading for
a broad range of training
activities (e.g., basic skills, high
performance practices).
�Comparison of Defense-Related Dislocated Worker Programs
with the Re-employment Act of 1994
PROGRAM DESIGN
ELEMENT
Income Support
DEFENSE CONVERSION
DEFENSE DIVERSIFICATION PROGRAM
Grantees may offer needs-related
payments at the UI level following
exhaustion of UI for participants in
training who enrolled by the 13th
week of their UI benefit period.
REEMPLOYMENT A C T OF 1994
(Dislocated Worker
Provisions Only)
ADJUSTMENT PROGRAM
Grantees must provide for needs-related
payments at the higher of the UI level or the
poverty level for the affected individual's
family size. Payment follows exhaustion of
UI for participants in training who enrolled
by the end of the 13th week of their UI
benefit period, or within 8 weeks of learning
that a short term layoff will exceed 6
months.
Beginning in 2000, all eligible
dislocated workers enrolled in
long-term training or education
will receive capped mandatory
income support beyond the
receipt of regular UI if they
have at least one year of tenure
with their previous employer;
maximum extended income
support will be 26 weeks for
those with tenure of more than 1
year but less than 3 years of
tenure, and 52 weeks for those
with 3 or more years.
During the 1995-99 transition
period, extended income support
will be provided on a capped
mandatory basis only to those
participants who have 3 years or
more of tenure. Dislocated
workers with 1-3 years of tenure
may be eligible for discretionary
income support during this
period.
Upon full implementation of the
program in FY 2000, all
extended income support will be
capped mandatory funding.
--
4
updated April 29, 1994
�Comparison of Defense-Related Dislocated Worker Programs
with the Re-employment Act of 1994
PROGRAM DESIGN
ELEMENT
DEFENSE CONVERSION
ADJUSTMENT PROGRAM
DEFENSE DIVERSIFICATION PROGRAM
REEMPLOYMENT ACT OF 1994
(Dislocated Worker
Provisions Only)
Participant Support
Supportive services including child
care, transportation, meals,
emergency medical assistance,
family counseling or other services
so the individual can participate in
the program.
Supportive services including child care,
transportation, meals, emergency medical
assistance, family counseling or other
services so the individual can participate in
the program.
Those dislocated workers not
meeting a tenure screen may
qualify for needs-based payments
under support services. Some
dislocated workers may also
receive relocation assistance, outof-area job search, and other
supportive services (e.g.,
dependent care, transportation).
Funding
Discretionary funds in the amount
of $150 million were appropriated
in FY 1991 and transferred from
the Department of Defense to DOL.
Once these funds are exhausted,
DCA projects will continue to be
funded, using the Secretary's
discretionary account until the
comprehensive program is enacted.
Discretionary funds in the amount of $75
million were appropriated in FY 1993 and
transferred from the Department of Defense
to DOL. Once these funds are exhausted,
DCA projects will continue to be funded,
using the Secretary's discretionary account
until the comprehensive program is enacted.
Funds classified as discretionary
are appropriated annually by
Congress. The Administration
has requested $1,465 million in
the FY 1995 budget under
current EDWAA authority.
Authorized on a Fiscal Year basis,
with obligational authority until
September 30, 1997.
Authorized on a Fiscal Year basis, with
obligational authority until September 30,
1997.
Effective Period
* 'V ". -'
During FY 1995-99, a portion of
the income support costs will be
provided through the UI system
as capped mandatory funding.
Beginning in FY 2000, all
extended income support will be
provided through the UI system
as capped mandatory funding.
;
updated April 29, 1994
Ongoing authorization on a
Program Year basis beginning
with Program Year 1995
(July 1, 1995).
�REEMPLOYMENT ACT OF 1994
SECTION-BY-SECTION ANALYSIS
The Reemployment Act of 1994 i s the f i r s t step i n b u i l d i n g a
coherent, i n t e g r a t e d reemployment system f o r the Nation.
The
current unemployment system, designed i n a d i f f e r e n t time for a
fundamentally d i f f e r e n t economy, i s premised on the expectation
that l a i d - o f f workers would r e t u r n t o t h e i r former jobs f o l l o w i n g
p e r i o d i c c y c l i c a l downturns i n the economy. Today, • m i l l i o n s of
workers are f i n d i n g t h e i r jobs imperiled by global economic
i n t e g r a t i o n and technological change. Many of them do not have
the s k i l l s necessary f o r reemployment i n good jobs t o replace the
ones they have l o s t .
Workers looking f o r help i n making workforce t r a n s i t i o n s
c u r r e n t l y face a d u p l i c a t i v e tangle of programs, services and
r u l e s . Students, workers, and the unemployed have a d i f f i c u l t
time g e t t i n g information on the b e n e f i t s and services that are
a v a i l a b l e , where they can get h i g h - q u a l i t y t r a i n i n g , and what
they need t o know to f i n d and hold good jobs and b u i l d
sustainable careers.
The underlying problem i s the lack of a coherent employment
and t r a i n i n g system. The Reemployment Act of 1994 w i l l address
t h i s need by:
o
e s t a b l i s h i n g a comprehensive system f o r reemployment
services, t r a i n i n g , and income support f o r permanently
l a i d - o f f workers;
o
f a c i l i t a t i n g the establishment of one-stop career
centers t h a t w i l l serve as a common point of access to
employment, education and t r a i n i n g information and
services;
o
.developing an e f f e c t i v e n a t i o n a l labor market
information system; and
o
p r o v i d i n g a d d i t i o n a l f l e x i b i l i t y f o r States i n payment
of unemployment insurance b e n e f i t s .
T i t l e I of the Reemployment Act of 1994 would e s t a b l i s h a
comprehensive program f o r reemployment of d i s l o c a t e d workers -those who are permanently l a i d o f f or are long-term unemployed.
This t i t l e would consolidate and replace s i x current programs
that serve various categories of d i s l o c a t e d workers. A l l workers
c u r r e n t l y e l i g i b l e under e x i s t i n g programs would be covered. The
program would be administered through a State and substate
d e l i v e r y system. State Dislocated Worker Units would carry out
rapid response a c t i v i t i e s a t the s i t e of d i s l o c a t i o n s , substate.
grantees would receive and administer funds, and Career Centers
provide a comprehensive array of reemployment services to
d i s l o c a t e d workers. Career Centers would make a v a i l a b l e to a l l
�e l i g i b l e d i s l o c a t e d workers a set of basic services, i n c l u d i n g
job search assistance. Intensive reemployment services would be
made a v a i l a b l e t o d i s l o c a t e d workers who are not able to f i n d
jobs through the basic services. Each worker r e c e i v i n g intensive
services would have a reemployment plan developed j o i n t l y by the
i n d i v i d u a l and a career counselor which i d e n t i f i e s an employment
goal and a combination of services designed to. achieve the goal.
Education and t r a i n i n g services w i l l be a v a i l a b l e t o workers
who need new or h i g h e r - l e v e l s k i l l s t o obtain employment. To
help them make decisions, workers w i l l have information about the
q u a l i t y of services and the l o c a l economy, as w e l l as an
understanding of t h e i r career o b j e c t i v e s . Income support beyond
regular UI payments w i l l be a v a i l a b l e f o r most d i s l o c a t e d workers
to enable them to p a r t i c i p a t e i n long-term t r a i n i n g . The
duration of income support payments w i l l be based on the length
of t r a i n i n g needed, and on the job tenure the i n d i v i d u a l had i n
the l a s t job.
T i t l e I also establishes performance standards and q u a l i t y
assurance systems. A customer service compact-is t o be developed
among the p a r t i e s administering t i t l e I programs. The Secretary
i s also to e s t a b l i s h performance standards f o r substate grantees
and Career Centers, and substate grantees are t o e s t a b l i s h
methods f o r obtaining feedback from customers — i n d i v i d u a l s and
employers -- on the effectiveness and q u a l i t y of services they
have received. E l i g i b i l i t y requirements are established f o r
providers of education and t r a i n i n g services which include the
p r o v i s i o n of performance-based information t o preclude
i n e f f e c t i v e service providers from receiving Federal funds and to
a s s i s t customers i n choosing e f f e c t i v e services.
T i t l e I I of the Reemployment Act of 1994 extends the focus
of the unemployment insurance program beyond i t s o r i g i n a l purpose
of ensuring a source of income t o workers who were temporarily
out of work and creates new and a c t i v e options which workers and
employers may a v a i l themselves t o help ease the o f t e n - r a p i d and
u n s e t t l i n g pace of labor market t r a n s i t i o n and change. F i r s t and
foremost, t h i s proposal w i l l provide income support beyond
unemployment insurance b e n e f i t s t o permanently l a i d - o f f workers
who need and decide t o r e t r a i n f o r new jobs and occupations which
w i l l o f f e r them a more secure f u t u r e . Second, t h i s proposal
o f f e r s new f l e x i b i l i t y i n the basic unemployment insurance
program so that i f States so chose, a.short-time compensation
program would be a v a i l a b l e f o r t o compensate employees who are
working reduced hours f o r an employer who i s attempting t o avert
a l a y o f f or closure. I n a d d i t i o n , the proposal would o f f e r a new
unemployment insurance option t o l a i d - o f f workers i n the form of
reemployment bonuses f o r those who q u i c k l y f i n d new jobs.
T i t l e I I I of the Reemployment Act establishes a program to
encourage States t o develop and implement Statewide networks of
�one-stop career centers, which w i l l provide a common point of
access t o employment, education and t r a i n i n g information and
services t o students, workers and employers. The centers would
make services a v a i l a b l e under employment and t r a i n i n g programs
administered by the Department of Labor and other human resource
programs that choose t o p a r t i c i p a t e .
Key components of the voluntary one-stop career centers
system are as follows: The chief l o c a l elected o f f i c i a l i n each
substate area designated by the Governor i s to e s t a b l i s h a
workforce investment board, which i s t o plan, set p o l i c y and
oversee the one-stop career center system i n that area (but not
•administer career centers). One-stop career centers may be
established through a consortium of the Employment Service and
other employment and t r a i n i n g programs, or through a competitive
process, c a l l e d the m u l t i p l e independent operator option. I n
e i t h e r case, career centers are issued a charter by the Board,
that i d e n t i f i e s the number and l o c a t i o n of the centers.
One-stop career centers must make available t o the public
free of charge a set of basic services. Intensive services are
made a v a i l a b l e pursuant t o an operating agreement between
p a r t i c i p a t i n g programs. The centers also provide specialized
services t o employers.
Programs ithat are t o p a r t i c i p a t e i n the
operation of the centers are the t i t l e I comprehensive dislocated
workers program, the Employment Service, the Veterans' Employment
Service, JTPA t i t l e I I programs, unemployment insurance programs,
and the Senior Community Service Employment Program. Other human
resource programs, such as JOBS, may also p a r t i c i p a t e . Quality
assurance i s b u i l t i n t o the one-stop career center system through
the establishment of performance standards and customer feedback
mechanisms.
Other components of the one-stop career center system are
the establishment of a State Human Resource Investment Council
authorized under JTPA, arid a customer service compact, i n v o l v i n g
a l l p a r t i e s that administer the one-stop system. States that
wish t o e s t a b l i s h one-stop career center systems may apply t o the
Secretary f o r competitive grants t o a s s i s t i n the planning and
development of the one-stop system, and f o r competitive grants to
a s s i s t i n the implementation of the one-stop system. States may
also apply f o r waivers of Federal s t a t u t o r y and regulatory
requirements t o implement one-stop systems.
T i t l e IV establishes a National Labor Market Information
System that b u i l d s upon and strengthens e x i s t i n g c a p a b i l i t i e s at
the Federal, State and l o c a l l e v e l s .
T i t l e V amends t i t l e I I of the Job Training Partnership Act
to add a new p a r t D, "Reinvention Labs". This new part allows
waiver of Federal s t a t u t o r y or regulatory provisions t o encourage
innovative program designs f o r serving economically disadvantaged
�youth and adults, and to provide service d e l i v e r y areas w i t h
increased f l e x i b i l i t y i n operating job t r a i n i n g programs i n
e:-:change f o r higher l e v e l s of a c c o u n t a b i l i t y f o r r e s u l t s .
Together, these provisions w i l l begin to b u i l d a
reemployment system that i s coherent, comprehensive, customerdriven, accountable, and based on evidence of what works i n
employment and t r a i n i n g .
Section 1 of the b i l l provides that t h i s Act i s e n t i t l e d the
"Reemployment Act of 1994."
Section 2 contains the Table of Contents.
Section 3 contains the statement of Findings and Purpose of
the Act. The f i n d i n g s are t h a t : i n recent years the nature of
job uncertainty and job loss has changed; a s u b s t a n t i a l number of
Americans lose jobs because of s t r u c t u r a l changes i n the economy
rather than c y c l i c a l downturns; job uncertainty and d i s l o c a t i o n
carry s u b s t a n t i a l emotional and f i n a n c i a l costs to the nation;
Americans seeking f i r s t jobs, new jobs, or b e t t e r jobs confront
an economy i n continuous t r a n s i t i o n and must have access to new
s k i l l s and b e t t e r job and career information; our current worker
adjustment p o l i c i e s were designed f o r an e a r l i e r economy and
o f t e n do not equip Americans to prosper i n the current and
emerging atmosphere of constant change; the primary governmental
response to job loss -- the unemployment insurance system -- i s
not designed to b u i l d re-employment s e c u r i t y ; the current
governmental response to d i s l o c a t i o n i s a patchwork of
c a t e g o r i c a l programs; job search assistance and r e t r a i n i n g are
not a v a i l a b l e to a l l who need i t and income support i s t y p i c a l l y
not. a v a i l a b l e to f a c i l i t a t e t r a i n i n g ; there i s a lack of r e l i a b l e
labor market information; and a d m i n i s t r a t i v e and regulatory
obstacles hamper State and l o c a l e f f o r t s to e s t a b l i s h
comprehensive reemployment systems.
The purpose of the Act i s t o : begin the transformation of
the unemployment system i n t o a comprehensive, u n i v e r s a l , highq u a l i t y reemployment system; consolidate current c a t e g o r i c a l
d i s l o c a t e d worker programs i n t o a. comprehensive program f o r a l l
permanently l a i d - o f f workers, regardless of the cause of the
d i s l o c a t i o n ; f a c i l i t a t e long-term t r a i n i n g f o r permanently l a i d o f f workers who want and need i t ; provide customer-centered,
h i g h - q u a l i t y employment and t r a i n i n g services that a s s i s t
d i s l o c a t e d workers i n making informed career and t r a i n i n g
choices; b u i l d on innovative State and l o c a l e f f o r t s , to begin to
streamline employment and t r a i n i n g programs i n t o a comprehensive,
h i g h - q u a l i t y , . nationwide system'of one-stop career center
networks which provide access to a l l Americans who want and need
new, b e t t e r and f i r s t jobs; and create a National Labor Market
Information System t h a t gives h i g h - q u a l i t y and t i m e l y data on the
�l o c a l economy, labor market and other occupational information to
employers, employees, and t r a i n i n g providers.
Section 4 authorizes appropriations f o r the Act. The
a u t h o r i z a t i o n f o r T i t l e I (Comprehensive Program for Worker
Reemployment) i s f o r $1,465 b i l l i o n f o r f i s c a l year 1995 and for
such sums as may be necessary f o r succeeding f i s c a l years. For
T i t l e I I I and T i t l e IV (One-Stop Career Center System and
National Labor Market Information System, r e s p e c t i v e l y ) , the
a u t h o r i z a t i o n i s f o r $250 m i l l i o n f o r each of f i s c a l years 1995
through 1999, and f o r such sums as may be necessary f o r f i s c a l
years 2000 through 2003.
Section 5 provides d e f i n i t i o n s f o r basic terms used i n the
Act. The f o l l o w i n g terms are defined: career center; communitybased organizations; economic development agencies; Governor;
labor market area; l o c a l elected o f f i c i a l ; n o n t r a d i t i o n a l
employment; one-stop career center; p r i v a t e industry c o u n c i l ;
Secretary; service d e l i v e r y area; service provider; State; State
c o u n c i l ; State Human Resource .Investment Council; substate area;
substate grantee; and u n i t of general l o c a l government.
T i t l e I of the b i l l establishes the Comprehensive Program
for Worker Reemployment.
Section 101 provides f o r the allotment of funds.
Section
101(a) requires that 75 percent of the funds appropriated each
f i s c a l year f o r t h i s t i t l e be a l l o t t e d t o the States. The
remaining 25 percent i s reserved f o r the Secretary t o carry out
the n a t i o n a l a c t i v i t i e s i n Part B and f o r a l l o c a t i o n s t o the
Commonwealth of the Northern Mariana Islands and the t e r r i t o r i e s .
Section 101(b) requires that the allotment t o the States be
based o n e - t h i r d on the r e l a t i v e number of unemployed i n d i v i d u a l s ,
o n e - t h i r d on the r e l a t i v e number of unemployed persons i n excess
of 4.5 percent, and o n e - t h i r d on the r e l a t i v e number of
i n d i v i d u a l s unemployed f o r more than 26 weeks. This i s the same
formula that i s c u r r e n t l y used under t i t l e I I I of the Job
Training Partnership Act, except t h a t the long-term unemployed
f a c t o r under the new program i s based on more than 26 weeks of
unemployment (to conform t o the e l i g i b i l i t y section) rather than
15 weeks. Unlike JTPA, t h i s formula contains hold-harmless and
stop-gain provisions s p e c i f y i n g t h a t no State may receive less
than 90 percent or more than 130 percent of the previous year's
allotment percentage.
Subsection (b) requires, as does JTPA, that as soon as
s a t i s f a c t o r y data are a v a i l a b l e , allotments t o the States are to
be based 25 percent on the r e l a t i v e number of d i s l o c a t e d workers
r e s i d i n g i n each s t a t e and 25 percent based on each of the three
unemployment f a c t o r s described above.
�Section 101(c) allows the Governor to reserve up to 30
percent of the State's allotment to carry out State a c t i v i t i e s
and r e s p o n s i b i l i t i e s authorized under t h i s t i t l e . Of t h i s
amount, up to 5 percent may be used f o r State Grants f o r Job
Retention Projects under section 116, not more than 15 percent
may be used f o r program a d m i n i s t r a t i o n , and not more than 20
percent may be used f o r the combined costs of program
a d m i n i s t r a t i o n and t e c h n i c a l assistance.
Section 101(d) requires the Governor to a l l o t the remainder
of the State allotment (a minimum of 70% of the State allotment)
to substate areas under a formula determined by the Governor,
which i s to include the factors described above, and a d d i t i o n a l
o b j e c t i v e and measurable factors that the Governor determines are
appropriate. The Governor's formula may be amended only once for
each program year. Substate a l l o c a t i o n s are also subject to a
cost l i m i t a t i o n of 15 percent f o r a d m i n i s t r a t i o n .
Section 101(e) reserves a small amount of the Secretary's
reserve fund (0.3 p e r c e n t ) f o r a l l o c a t i o n to the Commonwealth of
the Northern Mariana Islands and the t e r r i t o r i e s .
Section 101(f) reserves the remainder of the Secretary's
funds f o r n a t i o n a l a c t i v i t i e s . For each of f i s c a l years 19951999, a minimum of 80 percent i s earmarked f o r National
Discretionary Grants under section 131 and Disaster R e l i e f
Employment Assistance under section 132; and not more than 20
percent may be expended f o r evaluation, research, and
demonstrations under section 133 and capacity b u i l d i n g , s t a f f
development and t r a i n i n g , and t e c h n i c a l assistance under section
134. I n program year 2000 and succeeding program years, the
d i s t r i b u t i o n of funds among n a t i o n a l a c t i v i e s changes to a
minimum of 85 percent f o r National D i s c r e t i o n a r y Grants and
Disaster R e l i e f Employment Assistance, and not more than 15
percent f o r evaluation, research, demonstrations, capacity
b u i l d i n g , s t a f f development and t r a i n i n g , and t e c h n i c a l
assistance.
Section 102 requires the Secretary, beginning i n program
year 1996, to recapture unexpended, formula-funded State
allotments upon a determination that the unexpended balance of
the State allotment at the end of the p r i o r program year exceeds
20 percent of the p r i o r year's allotment. The recapture also
includes the unexpended balance of a State allotment from any
other previous program year. Recapture may be accomplished by
reducing the State allotment f o r the subsequent program year by
an equal amount. A l l recaptured funds w i l l be used f o r n a t i o n a l
d i s c r e t i o n a r y grants.
Section 103 provides the e l i g i b i l i t y requirements f o r
services under the new worker reemployment program.
�Section 103(a) establishes t h a t an e l i g i b l e i n d i v i d u a l i s a
person who: (1) has been permanently l a i d o f f from f u l l - t i m e ,
part-time or seasonal (including farmworkers and fishermen)
employment w i t h i n the preceding 12-month period or has received
notice that he/she w i l l be permanently l a i d o f f , and i s e i t h e r
u n l i k e l y to obtain employment i n the same or s i m i l a r occupation
due to obsolete s k i l l s or a lack of job opportunities, or the
l a y o f f was due to any permanent closure or any s u b s t a n t i a l l a y o f f
at a p l a n t , f a c i l i t y or e n t e r p r i s e ; (2) i s employed at a f a c i l i t y
where the employer has given p u b l i c notice that the f a c i l i t y w i l l
be closed w i t h i n one year, and the i n d i v i d u a l i s u n l i k e l y to
remain employed w i t h the same employer at another l o c a t i o n or
r e t i r e from the labor force; (3) was self-employed (including
farmers, fishermen and ranchers) and i s unemployed due to l o c a l
economic conditions or because of a n a t u r a l d i s a s t e r ; (4) i s
long-term unemployed; (5) i s c e r t i f i e d as e l i g i b l e under the
t r a n s i t i o n a l program f o r c e r t i f i c a t i o n of trade-impacted workers
under p a r t D of t i t l e I I ; or (6) was, pursuant to regulations
established by the Secretary, i d e n t i f i e d and r e f e r r e d to the
program by a State unemployment insurance worker p r o f i l i n g
system..
Section 103(b) provides t h a t displaced homemakers who were
displaced w i t h i n the preceding 12 months, are unemployed, and
meet the other s e r v i c e - r e l a t e d requirements are elig-ible to
receive basic services, and may receive other t i t l e I services to
the extent the Governor determines such a d d i t i o n a l services are
appropriate.
Section 103(c) defines terms f o r purposes of t h i s section.
"Permanently l a i d o f f " i s defined as a l a y o f f under which a
r e c a l l i s not expected w i t h i n 26 weeks. "Long-term unemployed"
r e f e r s to a period of unemployment defined by the Governor of not
less than 27 weeks. "Displaced homemakers" are defined the same'
as i n section 4(29) of the Job T r a i n i n g Partnership Act.
Part A of T i t l e I establishes a State and substate d e l i v e r y
system f o r the worker reemployment program.
Section 111 s p e c i f i e s that the State i s responsible f o r
developing and operating a d m i n i s t r a t i v e and management systems
that ensure proper f i s c a l c o n t r o l and a c c o u n t a b i l i t y , consistent
w i t h both the requirements of Part E and the accomplishment of
the o b j e c t i v e s of t h i s t i t l e .
Section 112 contains provisions f o r a State d i s l o c a t e d
worker u n i t and i t s required f u n c t i o n s .
Section 112(a) requires each Governor to designate or
e s t a b l i s h a State d i s l o c a t e d worker u n i t to carry out the rapid
response, i n f o r m a t i o n c o l l e c t i o n and dissemination, program
support, and c o o r d i n a t i o n f u n c t i o n s .
7
�Section 112(b) describes each of the u n i t ' s functions.
F i r s t , rapid response a c t i v i t i e s include: (1) r e c e i v i n g notices
provided under the Worker Adjustment and Retraining N o t i f i c a t i o n
Act (WARN) and c o l l e c t i n g information on other s i t e s where
permanent closures and l a y o f f s a f f e c t 50 or more workers; (2)
e s t a b l i s h i n g contact w i t h representatives of the employer,
a f f e c t e d workers and a f f e c t e d unions, and a f f e c t e d substate
grantees, w i t h i n 48 hours of notice or i d e n t i f i c a t i o n of these
closures and l a y o f f s ; (3) p r o v i d i n g assistance on s i t e ( i . e . , at
or near the closure or l a y o f f location) w i t h i n 5 days (unless
representatives of a f f e c t e d workers agree to defer s t a r t - u p ) ,
i n c l u d i n g information and assistance i n accessing programs and
services, providing appropriate emergency reemployment services,
and providing basic reemployment services i n a group s e t t i n g ; (4)
promoting the formation of worker-management t r a n s i t i o n
assistance committees by: f i r s t , p r o v i d i n g immediate assistance
m c r e a t i o n of the committee, i n c l u d i n g f i n a n c i a l assistance for
s t a r t - u p costs, providing a l i s t of i n d i v i d u a l s from which
committee chairperson may be selected, and a s s i s t i n g i n s e l e c t i o n
of worker representatives i n absence of union; and second,
providing t e c h n i c a l assistance i n developing a strategy f o r
assessing the employment and t r a i n i n g needs of each a f f e c t e d
worker and obtaining necessary services and assistance, such as
advice and information on sources of assistance, and serving as
l i a i s o n w i t h p u b l i c and p r i v a t e services and programs; and (5)
preparing an a c t i o n plan, which may include a s s i s t i n g i n the
p r o v i s i o n of reemployment and t r a i n i n g services, i n c l u d i n g group
counseling, p r e l i m i n a r y assessments, and labor market
information, and i n planning f o r the establishment of on-site
t r a n s i t i o n centers described i n section 115(c).
With regard to information c o l l e c t i o n and dissemination
a c t i v i t i e s , the State d i s l o c a t e d worker u n i t ' s s p e c i f i c r o l e i s :
to provide to employers and employees Statewide information on
the W R Act, the Act's requirements, and the e l i g i b i l i t y
AN
requirements, services and b e n e f i t s a v a i l a b l e under t h i s t i t l e ;
to c o l l e c t information r e l a t e d to economic d i s l o c a t i o n — i n c l u d i n g
p o t e n t i a l closings and l a y o f f s and impacts of those to which the
u n i t has responded, and on Statewide programs and resources for
services to a f f e c t e d workers; to provide the economic d i s l o c a t i o n
information to Governor to a s s i s t i n providing an information
base f o r e f f e c t i v e program management, review, and evaluation;
and to disseminate information Statewide on the State dislocated
worker u n i t ' s services and a c t i v i t i e s .
The State d i s l o c a t e d worker u n i t ' s program support functions
are to provide t e c h n i c a l assistance and advice to substate
grantees, work w i t h employers and representatives of employees i n
promoting labor-management cooperation to achieve program
o b j e c t i v e s , and a s s i s t each l o c a l community a f f e c t e d by a mass
l a y o f f or p l a n t c l o s i n g i n developing and implementing an
�adjustment plan, i n c l u d i n g assistance i n obtaining State economic
development assistance.
The u n i t ' s coordination role i s t o exchange information and
coordinate programs w i t h : economic development agencies and •
section 116 job r e t e n t i o n p r o j e c t s to i d e n t i f y p o t e n t i a l l a y o f f s ,
avert plant closings and mass l a y o f f s and accelerate d i s l o c a t e d
workers' reemployment; State education, t r a i n i n g and s o c i a l
services programs; State labor federations; S t a t e - l e v e l general
purpose business organizations; and a l l other programs a v a i l a b l e
to a s s i s t d i s l o c a t e d workers, i n c l u d i n g the Employment Service,
UI system, one-stop career centers established under T i t l e I I I of
t h i s Act, and student f i n a n c i a l a i d programs.
Section 112(c) requires the State dislocated worker u n i t to
coordinate i t s actions w i t h the relevant substate grantees and
career centers.
Section 112(d) requires that the worker-management
t r a n s i t i o n assistance committees o r d i n a r i l y include (but are not
l i m i t e d t o ) : shared and equal p a r t i c i p a t i o n by workers and. t h e i r
representatives, and management, and p a r t i c i p a t i o n from community
representatives as appropriate; shared employer and State
f i n a n c i a l p a r t i c i p a t i o n , using funds from t h i s t i t l e f o r
operating expenses; j o i n t s e l e c t i o n by worker and management
representatives of the committee of a chairperson to guide and
oversee committee a c t i v i t i e s , provide advice and leadership, and
prepare a report on committee a c t i v i t i e s (the chairperson or
members of the chairperson's immediate family cannot be employed
or under contract w i t h labor or management at the s i t e ) ; and
operation under a formal agreement which may be terminated at
w i l l by workers or management and f o r cause by the Governor.
Section 112(e) authorizes the Governor t o provide rapid
response a c t i v i t i e s to l a y o f f s of less than 50 workers i f the
Governor determines t h a t the l a y o f f s have a s i g n i f i c a n t adverse
economic impact on a l o c a l community.
Where there i s an impending permanent closure or s u b s t a n t i a l
l a y o f f and other resources are not expeditiously, a v a i l a b l e ,
section 112(f) authorizes the State to provide funds f o r a
p r e l i m i n a r y assessment of the a d v i s a b i l i t y of a buyout and
continued operation of the p l a n t by a company or group, including
the workers.
Section 112(g) p r o h i b i t s the State from t r a n s f e r r i n g the
r e s p o n s i b i l i t y f o r the State d i s l o c a t e d worker u n i t ' s rapid
response f u n c t i o n to another e n t i t y , but permits agreements,
grants, c o n t r a c t s , or other arrangements w i t h a career center or
other e n t i t y f o r r a p i d response assistance services.
�Section 112(h) requires Federal oversight of the State
a d m i n i s t r a t i o n and the q u a l i t y of rapid response assistance
services, authorizes the Secretary to e s t a b l i s h performance
standards r e l a t i n g to the State's p r o v i s i o n of rapid response
services, and requires the Secretary to implement appropriate
c o r r e c t i v e a c t i o n i f performance i s determined to be inadequate.
Section 113 provides f o r the development and maintenance of
State and l o c a l labor market i n f o r m a t i o n (LMI) systems. Section
113(a) requires the Governor to i d e n t i f y , or develop and maintain
a comprehensive LMI system i n the State that (1) promotes the
c o l l e c t i o n , use, exchange and dissemination of q u a l i t y LMI that
w i l l enhance the employment o p p o r t u n i t i e s a v a i l a b l e to
permanently l a i d o f f workers and other i n d i v i d u a l s seeking
employment; and (2) provides support f o r needed improvements i n
LMI systems.
Section 113(b) and (c) l i n k the contents of and standards
for LMI i n t h i s section to those prescribed i n t i t l e IV of t h i s
Act.
Section 113(d) requires the' Governor to ensure, to the
extent f e a s i b l e , that automated technology w i l l be used i n data
c o l l e c t i o n and dissemination; the State d i s l o c a t e d worker u n i t ,
the substate grantee, and career centers have t i m e l y access to
q u a l i t y LMI; a d m i n i s t r a t i v e records are designed to reduce
paperwork; and a v a i l a b l e a d m i n i s t r a t i v e data and surveys are
shared or consolidated to reduce d u p l i c a t i o n of record keeping.
Section 113(e) requires the Governor to designate an agent
w i t h i n the State to be responsible f o r oversight and management
of a Statewide comprehensive labor market and occupational
information system. This agent i s to be responsible f o r
p r o v i d i n g t r a i n i n g and t e c h n i c a l assistance to c o l l e c t and
disseminate i n f o r m a t i o n through programs under t h i s t i t l e ,
p r o v i d i n g funding f o r the State share of the cooperative
agreements authorized i n t i t l e IV to implement the n a t i o n a l LMI
strategy, and funding research, evaluation and demonstration
p r o j e c t s to improve the Statewide LMI system.
Section 113(f) provides that the Governor i s to coordinate
the a c t i v i t i e s c a r r i e d out under t i t l e I w i t h LMI c a r r i e d out i n
the State pursuant to other Federal laws, and w i t h the n a t i o n a l
LMI program i n t i t l e IV. The Governor i s authorized to use LMI
funds under other Federal laws to maintain the State LMI system.
Section 113(g) requires the Governor to i d e n t i f y and u t i l i z e
c o s t - e f f e c t i v e methods f o r o b t a i n i n g the labor market information
and data. This may include access to earnings records, State
employment s e c u r i t y records, AFDC records, education records, and
s i m i l a r records, w i t h appropriate safeguards to p r o t e c t the
c o n f i d e n t i a l i t y of the i n f o r m a t i o n obtained. The Governor i s
10
�also t o p u b l i s h and make a v a i l a b l e labor market and occupational
supply and demand information and i n d i v i d u a l i z e d career
information t o p u b l i c agencies, employers, and other users of
this information.
Section 114 requires the Governor to coordinate worker
reemployment programs w i t h the r e t r a i n i n g income support program
authorized under t i t l e I I and the State worker p r o f i l i n g system.
Coordination w i t h the p r o f i l i n g system i s t o include methods f o r
ensuring the prompt r e f e r r a l , i n accordance w i t h the Secretary's
regulations, of UI claimants p r o f i l e d as dislocated workers to
career centers, and the sharing of information.
Section 115 authorizes State supplementary grants f o r areas
of special need. I n areas of a State experiencing s u b s t a n t i a l
increases i n the number of e l i g i b l e d i s l o c a t e d workers due t o
plant or base closures and mass l a y o f f s , State grants may be
awarded t o provide t o workers the f u l l range of services
authorized under section 119. E n t i t i e s e l i g i b l e t o receive these
grants include substate grantees i n the a f f e c t e d areas, employers
and employer associations, t r a n s i t i o n assistance committees•and
other employer-employee groups, representatives of employees,
industry consortia, and State agencies. The Governor may, a f t e r
formal c o n s u l t a t i o n w i t h the area substate grantee, also use
grant funds t o e s t a b l i s h an o n - s i t e centers, i n c l u d i n g on-site
t r a n s i t i o n centers s p e c i f i e d below, t o provide services.
Operations of any o n - s i t e center must be coordinated w i t h area
career centers. S p e c i f i c a u t h o r i t y i s provided f o r grants f o r
temporary o n - s i t e t r a n s i t i o n centers at p l a n t and base closure or
mass l a y o f f s i t e s that meet c e r t a i n conditions. These include
that such centers would: be operated w i t h the approval and
p a r t i c i p a t i o n of employers and workers and t h e i r representat i v e s , i n c l u d i n g worker-management t r a n s i t i o n assistance
committees; include s u b s t a n t i a l funding from non-public sources;
and provide the f u l l range of reemployment services d i r e c t l y or
through contracts, such as contracts w i t h outplacement agencies.
Center a c t i v i t i e s would be coordinated w i t h the l o c a l career
centers and workers could receive services at e i t h e r the
t r a n s i t i o n or career centers.
Section 116 authorizes State grants f o r job r e t e n t i o n
p r o j e c t s . The Governor, a f t e r c o n s u l t a t i o n w i t h unions
representing a f f e c t e d workers, may award grants t o p r o j e c t s
p r o v i d i n g services t o upgrade the s k i l l s of employed workers who
are at r i s k of being permanently l a i d o f f , and p r o j e c t s a s s i s t i n g
the r e t r a i n i n g of employed workers t o f a c i l i t a t e business
conversion or r e s t r u c t u r i n g (e.g., t o u t i l i z e new manufacturing
technology or transform t o a high-performance workplace) to avert
s u b s t a n t i a l l a y o f f s or p l a n t closings. A 100 percent match of
the grant i s required, and i s t o be provided by a combination of
State funds (from funds other than federal funds) and funds
provided by the a f f e c t e d employers or businesses. As indicated
11
�above, a maximum of 5 percent of the State reserve funds may be
used f o r these p r o j e c t s .
Section 117 establishes the substate a d m i n i s t r a t i v e
s t r u c t u r e f o r the program.
Section 117(a) provides f o r the designation of substate
areas f o r the d e l i v e r y of program services. I t requires the
Governor, a f t e r c o n s u l t a t i o n w i t h the State council and l o c a l
elected o f f i c i a l s , t o designate substate areas. I t also requires
that each service d e l i v e r y area under the Job Training
Partnership Act be included i n a substate area and prohibins the
d i v i s i o n of a service d e l i v e r y area among substate areas.
The
designation process must also take i n t o consideration the
Statewide a v a i l a b i l i t y of services, the c a p a b i l i t y t o coordinate
service d e l i v e r y w i t h other j o b t r a i n i n g , human services and
economic development programs, and the geographic boundaries of
labor market areas i n the State. Subject t o the above
requirements, a service d e l i v e r y area w i t h a population of
200,000 or more that requests designation, any two or more
contiguous service delivery:areas w i t h an aggregate population of
200,000 or more that request designation, and any concentrated
employment program grantee f o r a r u r a l area authorized under
section 101 of the Job T r a i n i n g Partnership Act must be
designated as a substate area, except t h a t a request- from the
contiguous service d e l i v e r y areas may be denied i f the Governor
determines the designation would be i n c o n s i s t e n t w i t h the
e f f e c t i v e d e l i v e r y of services t o workers i n State labor market
areas or would not otherwise be appropriate t o carry out t h i s
program. Substate areas established under the EDWAA program,
which i s one the programs t h i s t i t l e replaces, could be
designated i f they otherwise meet the requirements of t h i s
section. The section p r o h i b i t s the designation of any area w i t h
a population under 200,000 as a substate area unless i t i s a JTPA
r u r a l concentrated employment program grantee. The Governor i s
authorized t o award i n c e n t i v e grants t o encourage the formation
of substate areas based on labor market areas. Substate area
designations may not be revised more than once every 4 years.
Section 117(b) provides f o r the designation of a substate
grantee f o r each substate area f o r a 4-year period. The
designation i s based on agreement among the Governor, area l o c a l
elected o f f i c i a l ( s ) , and area p r i v a t e i n d u s t r y council (s).
Absent agreement, the Governor selects the'substate grantee.
E n t i t i e s e l i g i b l e f o r designation as substate grantee include:
area PICs; SDA grant r e c i p i e n t s or a d m i n i s t r a t i v e e n t i t i e s ;
p r i v a t e n o n p r o f i t organizations; u n i t s of l o c a l government, or
agencies thereof, i n the substate area; l o c a l o f f i c e s of State
agencies; other p u b l i c agencies, such as community colleges and
area vocational schools; and consortia of the above.
12
�Section 117(c) establishes the functions of substate
grantees. Substate grantees are to receive and administer funds
a l l o c a t e d to the substate area, i n c l u d i n g a d m i n i s t r a t i o n of
payments to service providers of education and t r a i n i n g services
in accordance w i t h section 119(d)(2); administer the process for
s e l e c t i o n of career center operators established i n section 118;
oversee and monitor the area program and coordinate the operation
of career centers i n the substate area; and prepare and publish
b i e n n i a l l y a plan describing proposed program a c t i v i t i e s and
objectives i n the substate area.
When a substate grantee desires to be selected to operate a
career center, the process f o r s e l e c t i n g career center operators
i n that area must be administered by the PIC(s). I f the substate
grantee i s the PIC, the Governor administers the s e l e c t i o n
process. Where substate grantees operate career centers, the
career center oversight f u n c t i o n i s to be performed by the
Governor.
Section 118 provides f o r the establishment of career
centers. The substate grantee i s required to e s t a b l i s h one or
more career centers i n the substate area. The career center i s
to be the p o i n t of access f o r e l i g i b l e i n d i v i d u a l s to the
services provided under section 119.
Section 118(c) describes the career center s e l e c t i o n
process. Any e n t i t y or consortium of e n t i t i e s located i n the
substate area may apply f o r s e l e c t i o n as a career center
operator. The e n t i t i e s may include Employment Service o f f i c e s ,
SDA grant r e c i p i e n t s or a d m i n i s t r a t i v e e n t i t i e s under JTPA,
substate grantees under t h i s t i t l e , community colleges and area
vocational schools, community-based and other p r i v a t e , n o n p r o f i t
organizations, and other i n t e r e s t e d p r i v a t e f o r - p r o f i t and p u b l i c
organizations and e n t i t i e s .
A f t e r c o n s u l t a t i o n w i t h the Governor and l o c a l elected
o f f i c i a l s , the substate grantee i s required to. p u b l i s h a p u b l i c
notice informing i n d i v i d u a l s and organizations i n the substate
area of: the estimated number of career centers to be established
i n the substate area, i n f o r m a t i o n on a p p l i c a t i o n procedures,
s e l e c t i o n c r i t e r i a f o r career center operators, and other
information the substate grantee considers relevant to the
s e l e c t i o n of operators and a d m i n i s t r a t i o n of the centers.
The substate grantee, consistent w i t h guidelines issued by
the Secretary, i s required to use o b j e c t i v e c r i t e r i a and
performance measures i n assessing the a p p l i c a t i o n s . Applicants
must demonstrate the a b i l i t y to operate a career center that
would: provide the services described i n section 119; use
automated systems to f a c i l i t a t e information exchange among career
centers; meet the performance standards prescribed pursuant to
section 152; meet the f i s c a l requirements of Part E of t h i s
13
�t i t l e ; o b j e c t i v e l y and e q u i t a b l y administer the process of
r e f e r r i n g p a r t i c i p a n t s to education and t r a i n i n g services; and
meet any other requirements the substate grantee determines
appropriate. While o v e r a l l costs may be taken i n t o consideration
i n the s e l e c t i o n process, the l e v e l of wages and b e n e f i t s paid to
nonmanagerial employees by an applicant i s not to be a f a c t o r i n
the s e l e c t i o n process.
Career center operators w i l l be selected by the substate
grantee once every 4 years.
Substate grantees are t o review at least annually the
education and t r a i n i n g r e f e r r a l p r a c t i c e s of any career center
operator that concurrently provides education and t r a i n i n g
services to program p a r t i c i p a n t s . Should the substate grantee
f i n d a p a t t e r n of inappropriate r e f e r r a l s to education and
t r a i n i n g services, the substate grantee may require the center
operator to cease p r o v i s i o n of these services to program
p a r t i c i p a n t s as a c o n d i t i o n f o r continuing as center operator, or
may terminate the agreement t o operate a center.
Section 119 describes the services that are to be provided
to e l i g i b l e i n d i v i d u a l s . The services are grouped i n t o 6
categories: basic reemployment services, i n t e n s i v e reemployment
services, education and t r a i n i n g services, r e t r a i n i n g income
support, supportive services, and supplemental wage allowances
for older workers.
Section 119(b) requires each career center to make a v a i l a b l e
to e l i g i b l e i n d i v i d u a l s the f o l l o w i n g basic reemployment
services: outreach t o inform i n d i v i d u a l s of and encourage use of
employment and t r a i n i n g services, i n c l u d i n g e f f o r t s to expand
awareness of t r a i n i n g and placement o p p o r t u n i t i e s f o r i n d i v i d u a l s
w i t h l i m i t e d English p r o f i c i e n c y and i n d i v i d u a l s w i t h
d i s a b i l i t i e s ; intake and e l i g i b i l i t y determination f o r assistance
for t h i s program; o r i e n t a t i o n to i n f o r m a t i o n and services
a v a i l a b l e through the center; assistance i n f i l i n g an i n i t i a l UI
claim; a general assessment of the i n d i v i d u a l ' s s k i l l levels
(including appropriate t e s t i n g ) and service needs, which may
include basic and occupational s k i l l s , p r i o r work experience,
e m p l o y a b i l i t y , i n t e r e s t s , a p t i t u d e s , and supportive service
needs; l o c a l , regional and n a t i o n a l labor market information,
i n c l u d i n g job vacancy l i s t i n g s and l o c a l occupations i n demand
and r e l a t e d earnings and s k i l l requirements; job search
assistance ( i n c l u d i n g resume and i n t e r v i e w preparation, and
workshops); j o b r e f e r r a l and placement assistance such as job
search t r a i n i n g ; i n f o r m a t i o n on education, and job t r a i n i n g
programs--including e l i g i b i l i t y requirements, services provided,
the a v a i l a b i l i t y and q u a l i t y of the programs, and student,
f i n a n c i a l assistance a v a i l a b l e — a n d r e f e r r a l s as appropriate;
assistance i n evaluating i n d i v i d u a l ' s e l i g i b i l i t y f o r any other
DOL-administered employment and t r a i n i n g programs; information
14
�c o l l e c t e d under performance standards and q u a l i t y assurance
requirements; i n f o r m a t i o n on programs and providers of dependent
care and other supportive services a v a i l a b l e l o c a l l y ; group
counseling, i n c l u d i n g peer counseling, available j o i n t l y w i t h
immediate family members, on stress management and f i n a n c i a l
management; and s o l i c i t a t i o n and acceptance of job orders of area
employers and r e f e r r a l of appropriate applicants.
Section 119(c) describes the i n t e n s i v e reemployment services
each career center i s t o make a v a i l a b l e to e l i g i b l e i n d i v i d u a l s
who have received but are not able to f i n d jobs through the basic
reemployment services. The i n t e n s i v e services are: comprehensive
and s p e c i a l i z e d assessment of an i n d i v i d u a l ' s s k i l l l e v e l s and
service needs, such as diagnostic t e s t i n g , and in-depth
i n t e r v i e w i n g and evaluation to i d e n t i f y employment b a r r i e r s and
appropriate employment goals; the development of an i n d i v i d u a l
reemployment plan which i d e n t i f i e s the employment goal, including
appropriate n o n t r a d i t i o n a l employment, achievement objectives and
the appropriate combination of services to achieve- the.goal;
i n d i v i d u a l counseling and career planning, i n c l u d i n g peer
counseling and counseling and planning f o r n o n t r a d i t i o n a l
employment o p p o r t u n i t i e s ; assistance i n s e l e c t i o n of education
and t r a i n i n g providers and i n o b t a i n i n g income support, i n c l u d i n g
student f i n a n c i a l assistance; case management f o r those r e c e i v i n g
education, t r a i n i n g and supportive services; job development;
out-of-area job search allowances; r e l o c a t i o n allowances; and
follow-up counseling f o r those placed i n t r a i n i n g or employment.
The section f u r t h e r requires that the reemployment plan be
both developed and signed j o i n t l y by the i n d i v i d u a l and a career
counselor, and that there be a review of the i n d i v i d u a l ' s
progress i n meeting the o b j e c t i v e s i n the plan. Should the
p a r t i e s disagree regarding the plan's content, appeal of the
career counselor's recommendation i s a v a i l a b l e t o the i n d i v i d u a l
under the grievance procedure i n section 164. The employment
goal i n the plan must r e l a t e t o employment i n an occupation i n
demand e i t h e r l o c a l l y or i n another area to which the i n d i v i d u a l
i s w i l l i n g to r e l o c a t e .
The out-of-area j o b search allowance may not exceed 90
percent of the costs of necessary job search expenses, up to a
maximum payment s p e c i f i e d by the Secretary i n r e g u l a t i o n s . The
allowance i s payable only i f the search i s to obtain a job w i t h i n
the United States and the career center determines the i n d i v i d u a l
cannot reasonably be expected t o f i n d s u i t a b l e employment i n the
i n d i v i d u a l ' s l o c a l commuting area.
The r e l o c a t i o n allowance i s payable- only f o r r e l o c a t i o n
expenses i n c u r r e d w i t h i n the United States and only i f the career
center determines the i n d i v i d u a l cannot reasonably be expected to
f i n d s u i t a b l e employment i n the i n d i v i d u a l ' s l o c a l commuting
15
�area, and the i n d i v i d u a l has obtained s u i t a b l e employment w i t h
reasonable prospects f o r long-term d u r a t i o n i n the r e l o c a t i o n
area, or has received a bona f i d e employment o f f e r and i s t o t a l l y
separated from employment at commencement of the r e l o c a t i o n .
The
amount of the r e l o c a t i o n allowance may not exceed the t o t a l of:
90 percent of reasonable and necessary expenses, s p e c i f i e d by the
Secretary i n r e g u l a t i o n s , incurred i n moving the i n d i v i d u a l , anyfamily and household e f f e c t s ; and a lump sum equivalent to 3
times the i n d i v i d u a l ' s preceding average weekly wage, up to a
maximum payment s p e c i f i e d by the Secretary i n r e g u l a t i o n s .
Section 119(d) contains provisions f o r education and
t r a i n i n g services. Each career center i s required to make
a v a i l a b l e a l i s t of e l i g i b l e providers of basic s k i l l s t r a i n i n g
(including remedial education, l i t e r a c y t r a i n i n g , and English-asa-second language i n s t r u c t i o n ) , classroom and on-the-job
occupational s k i l l s t r a i n i n g ; and other s k i l l s - b a s e d education
and t r a i n i n g considered appropriate, which may include
entrepreneurial t r a i n i n g and s k i l l s t r a i n i n g f o r high performance
work organizations, such as problem s o l v i n g s k i l l s and those
r e l a t e d to the use of new technologies. E l i g i b l e providers of
education and t r a i n i n g services are those meeting the
requirements of section 154.
When an i n d i v i d u a l has a j o i n t l y executed i n d i v i d u a l
reemployment plan that specifies' that education and t r a i n i n g
services are necessary to the person's reemployment, the
i n d i v i d u a l , i n c o n s u l t a t i o n w i t h a career counselor, i s to select
a service provider from the l i s t of e l i g i b l e providers. The
career center then r e f e r s the person to the provider and arranges
for payment to be made to the provider by the substate grantee.
Education and t r a i n i n g services may also be provided under a
contract between the substate grantee and an e l i g i b l e service
provider i f the services .are customized to meet the needs of a
s p e c i f i c e l i g i b l e group i n the substate area or are f o r on-thejob t r a i n i n g .
Education and t r a i n i n g costs payable under t h i s t i t l e are
capped at $4,750 per i n d i v i d u a l over any 12-month period, and may
not exceed 104 weeks i n a 5-year period. Funds provided under
the program f o r education and t r a i n i n g may be supplemented w i t h
funds from other sources such as P e l l grants, student loans or
work assistance under the Higher Education Act, and other student
f i n a n c i a l a i d . I t i s intended that an e l i g i b l e i n d i v i d u a l
receive funds f o r t r a i n i n g under t h i s t i t l e before applying f o r
Federal student f i n a n c i a l assistance, and the amounts provided by
t h i s program w i l l be c a l c u l a t e d i n determining an i n d i v i d u a l ' s
e l i g i b i l i t y f o r such assistance.
For purposes of the income support program under t i t l e I I ,
the career centers are considered an agency c e r t i f i e d by the
16
�Secretary to develop a reemployment plan. E l i g i b l e i n d i v i d u a l s
p a r t i c i p a t i n g i n education and t r a i n i n g services under t h i s t i t l e
are also deemed to be i n approved t r a i n i n g f o r purposes of the
unemployment compensation program.
Section 119(e) establishes a r e t r a i n i n g income support
program f o r c e r t a i n i n d i v i d u a l s e l i g i b l e f o r the comprehensive
reemployment program. For program years 1995 through 1999,
workers who q u a l i f y f o r income support under t i t l e I I (those with
three or more years of tenure w i t h the l a y o f f employer and those
c e r t i f i e d as trade-impacted) would be r e f e r r e d to that program.
Workers w i t h at least one but less than three years of tenure
would receive income support under t h i s t i t l e . Beginning i n
program year 2000, a l l workers w i t h one or more years of tenure
w i l l q u a l i f y f o r r e t r a i n i n g income support under t i t l e I I and
w i l l be r e f e r r e d to that program f o r such support. With respect
to the t r a n s i t i o n a l income support program under t h i s t i t l e ,
permanently l a i d - o f f i n d i v i d u a l s w i l l be provided up to 26 weeks
of income support at the UI b e n e f i t l e v e l under t h i s t i t l e to
enable them t o p a r t i c i p a t e i n education and t r a i n i n g i f the
i n d i v i d u a l : had at least one and less than three years of tenure
w i t h the l a y o f f employer; was e n t i t l e d or would have been
e n t i t l e d to unemployment compensation under State or Federal law,
has exhausted a l l r i g h t s to UI to which the person was or would
have been e n t i t l e d , and does not have an unexpired w a i t i n g
period; was e n r o l l e d i n education or t r a i n i n g by the 16th week of
the permanent l a y o f f or 14th week a f t e r being informed the l a y o f f
w i l l exceed 6 months; and i s p a r t i c i p a t i n g and making
s a t i s f a c t o r y progress i n education and t r a i n i n g under t h i s t i t l e
( i n c l u d i n g any week which includes a break from t r a i n i n g not
exceeding 28 days which i s provided under the program). The 16week and 14-week enrollment requirements may be extended up to 30
days i f the Secretary determines there are extenuating
circumstances such as c a n c e l l a t i o n of a course or a l a t e r f i r s t
a v a i l a b l e enrollment date that j u s t i f y the extension.
This subsection includes several special rules that provide
that continuous employment would include p e r i o d i c i n t e r r u p t i o n s
r e s u l t i n g from sickness, maternity leave, m i l i t a r y service,
representation of a labor organization, and temporary l a y o f f s up
to a s p e c i f i e d number of weeks. I n a d d i t i o n , employment with a
s i n g l e employer i s to include a l l employment covered by
multiemployer plans, obtained through a single h i r i n g h a l l ,
employment w i t h a successor and predecessor employer i n cases of
a merger or a c q u i s i t i o n , and employment under a leasing
arrangement.
The r e t r a i n i n g income support payment w i l l be o f f s e t by the
extended b e n e f i t s or other Federal supplemental compensation
program to which the i n d i v i d u a l i s or would have been e n t i t l e d ,
any weekly t r a i n i n g income support provided under another Federal
program, or earned income t h a t exceeds 50 percent of the
17
�i n d i v i d u a l ' s weekly UI b e n e f i t . This l a s t p r o v i s i o n establishes
a n a t i o n a l standard f o r disregarding income that would allow f o r
the part-time employment of i n d i v i d u a l s while they are
p a r t i c i p a t i n g i n the program.
Under a cost-reimbursable agreement, the income support
payments w i l l be administered by the State agency which
administers the unemployment compensation program. The career
center w i l l a s s i s t i n d i v i d u a l s i n education or t r a i n i n g i n
applying f o r r e t r a i n i n g income support under t h i s t i t l e or under
t i t l e I I , as appropriate. I n d i v i d u a l s not e l i g i b l e f o r income
support under e i t h e r program, and needing income support to
p a r t i c i p a t e i n t r a i n i n g , w i l l also be assisted i n applying f o r
other appropriate resources, i n c l u d i n g student f i n a n c i a l a i d .
The career center i s t o inform i n d i v i d u a l s determined
e l i g i b l e of the a v a i l a b i l i t y and requirements r e l a t i n g t o income
support, p a r t i c u l a r l y the requirement that an i n d i v i d u a l be
e n r o l l e d i n t r a i n i n g by the 16th week of unemployment i n order to
q u a l i f y . The substate grantee i s also t o make arrangements w i t h
the State UI agency t o make t h i s information, along w i t h other
information about the program, a v a i l a b l e to claimants.
Section 119(f) requires that the supportive services be made
a v a i l a b l e when the i n d i v i d u a l reemployment plan i d e n t i f i e s the
need f o r such services t o enable the i n d i v i d u a l ' s p a r t i c i p a t i o n
i n i n t e n s i v e reemployment services or education and t r a i n i n g
services. The services may include, but are not l i m i t e d t o ,
t r a n s p o r t a t i o n , dependent care, meals, health care, temporary
s h e l t e r , needs-related payments, drug and alcohol abuse
counseling and r e f e r r a l , f a m i l y counseling, and other s i m i l a r
services. At the option of the career center, supportive
services may also be made a v a i l a b l e t o i n d i v i d u a l s p a r t i c i p a t i n g
in basic reemployment services. These services may be paid
d i r e c t l y by the center, t o a service provider, or through
arrangements w i t h appropriate agencies.
Section 119(g) authorizes a supplemental wage allowance f o r
older workers. An e l i g i b l e i n d i v i d u a l who i s age 55 or over may
receive a supplemental wage allowance i f the i n d i v i d u a l :
accepts
f u l l - t i m e employment at a weekly wage t h a t i s less than the p r i o r
wage, was unable t o obtain higher-wage employment through the
basic reemployment services a v a i l a b l e under t h i s program, and
agrees j o i n t l y w i t h a career center counselor that the allowance
is the most e f f e c t i v e adjustment option a v a i l a b l e . The allowance
is payable f o r up t o 52 weeks and equals three-quarters of the
d i f f e r e n c e between the weekly wage received i n a reemployment job
and 80 percent of the i n d i v i d u a l ' s preceding average weekly wage.
I t may not exceed 50 percent of the regular weekly UI b e n e f i t
l e v e l . The allowance i s t o be administered on a costreimbursable basis through a substate grantee agreement w i t h the
State unemployment compensation agency. An i n d i v i d u a l who has.
18
�received a c e r t i f i c a t e of continuing e l i g i b i l i t y may not •
subsequently receive a supplemental wage allowance.
Section 120 authorizes c e r t i f i c a t e s of continuing e l i g i b i l i ty. A career center may issue a c e r t i f i c a t e for continuing
e l i g i b i l i t y to i n d i v i d u a l s who are accepting new employment at a
s i g n i f i c a n t l y lower wage than t h e i r previous wage or i n an
occupation s i g n i f i c a n t l y d i f f e r e n t from t h e i r previous
occupation. The c e r t i f i c a t e w i l l specify a period not to exceed
104 weeks w i t h i n which the worker w i l l remain e l i g i b l e for
.reemployment services and f o r r e t r a i n i n g income support payments
under t h i s program or under t i t l e I I . The i n d i v i d u a l ' s
continuing e l i g i b i l i t y f o r such support w i l l be based on his or
her UI status at the time the c e r t i f i c a t e i s received rather than
at the time the i n d i v i d u a l returns to the program. This w i l l
ensure that the i n d i v i d u a l i s held harmless. The requirements
r e l a t i n g to enrollment i n t r a i n i n g to be e l i g i b l e f o r income
support remain applicable except that the 16- and 14-week periods
s t a r t w i t h the i n d i v i d u a l ' s separation from t h i s new, subsequent
employment.
Part B of t i t l e I defines Federal r e s p o n s i b i l i t i e s .
Section
131 establishes a National D i s c r e t i o n a r y Grant Program. Section
131(a) s p e c i f i e s that the n a t i o n a l grants are to. address large
scale economic d i s l o c a t i o n s r e s u l t i n g from p l a n t closures, base
closures, or mass l a y o f f s .
Section 131(b) states that the services provided under the
n a t i o n a l grant program are to be the same types of services as
those provided by career centers i n substate areas. Grants may
be awarded to such p r o j e c t s as those a s s i s t i n g industry-wide
d i s l o c a t i o n s , m u l t i s t a t e d i s l o c a t i o n s , and -dislocations' r e s u l t i n g
from defense cutbacks, i n t e r n a t i o n a l trade, environmental laws
and r e g u l a t i o n s , or special circumstances i n the State. The
Secretary may also award grants f o r p r o j e c t s that provide
comprehensive planning services to a s s i s t communities i n
responding to an economic d i s l o c a t i o n . I n a d d i t i o n , grants may
be awarded f o r o n - s i t e t r a n s i t i o n centers described i n section
115 (c) (2) .
Section 131(c) contains the a d m i n i s t r a t i v e provisions
governing the n a t i o n a l d i s c r e t i o n a r y grant program. To receive a
grant, an e l i g i b l e e n t i t y must submit an a p p l i c a t i o n to the
Secretary at such time, i n such manner, and accompanied by such
information as the Secretary determines i s appropriate. E n t i t i e s
that are e l i g i b l e to receive grants are States, substate grantees
under t h i s program, employers and employer associations, workermanagement t r a n s i t i o n assistance committees, representatives of
employees, community development corporations and community-based
organizations, and i n d u s t r y c o n s o r t i a .
19
�Section 132 authorizes Disaster R e l i e f Employment
Assistance.
Funds appropriated to carry out t h i s section are to
be made a v a i l a b l e by the Secretary to the Governor of any State
w i t h i n which i s located an area which has suffered an emergency
or a major d i s a s t e r . The provisions of section 132 c u r r e n t l y are
contained i n part J of t i t l e IV of the Job Training Partnership
Act. The e l i g i b i l i t y provisions now contained i n part J have
been revised to specify that notwithstanding the general
e l i g i b i l i t y requirements f o r t h i s program, an i n d i v i d u a l i s
e l i g i b l e for disaster employment i f the i n d i v i d u a l i s unemployed
(whether permanently or temporarily) as a consequence of the
d i s a s t e r . In a d d i t i o n , there are other t e c h n i c a l changes i n the
provisions now i n part J.
Section 133 authorizes the Secretary to conduct evaluations,
research and demonstrations. Section 133(a) s p e c i f i e s that the
Secretary s h a l l provide f o r the continuing evaluation of t i t l e I
programs, i n c l u d i n g t h e i r .cost-effectiveness- i n achieving the
purposes of the t i t l e . Such evaluations must u t i l i z e recognized
s t a t i s t i c a l methods and techniques of the behavioral and s o c i a l
sciences, i n c l u d i n g methodologies t h a t c o n t r o l f o r s e l f
s e l e c t i o n , where i n d i c a t e d . The evaluations may include cost
b e n e f i t analyses, impact analyses, analyses of the extent to
which t i t l e I programs meet the needs of various demographic
groups, and the effectiveness of d e l i v e r y systems us-ed by the
various programs. Also required are evaluations of the
effectiveness of t i t l e I programs w i t h respect to the s t a t u t o r y
goals, the performance standards established by the Secretary,
and the extent to which the programs enhance p a r t i c i p a n t
employment and earnings, reduce income support costs, improve
p a r t i c i p a n t s ' employment competencies compared to a nonp a r t i c i p a n t c o n t r o l group, and, to the extent f e a s i b l e , increase
the l e v e l of t o t a l employment beyond t h a t i n the absence of the
programs.
Section 133(b) requires the Secretary to e s t a b l i s h a
research program t h a t r e l a t e s to addressing economic d i s l o c a t i o n ,
f a c i l i t a t i n g the t r a n s i t i o n of permanently l a i d o f f workers to
reemployment, and upgrading the s k i l l s of employed workers.
Section 133(b)(2) requires the Secretary to develop and maintain
s t a t i s t i c a l data r e l a t i n g to permanent l a y o f f s and plant
closings, and to p u b l i s h a report based on such data as soon as
p r a c t i c a b l e a f t e r the end of each calendar year. This p r o v i s i o n
i s c u r r e n t l y contained i n section 461.(e) of the Job Training
Partnership Act.
Section 133(c) requires the Secretary to conduct a program
of demonstration p r o j e c t s to develop and improve the methods for
addressing economic d i s l o c a t i o n and promoting worker adjustment.
Projects t h a t may be funded include those t h a t upgrade the s k i l l s
of employed workers who are at r i s k of being permanently l a i d
o f f , and those t h a t a s s i s t i n the conversion or r e s t r u c t u r i n g of
20
�businesses i n order to avert p l a n t closings or s u b s t a n t i a l
l a y o f f s . Demonstration p r o j e c t s are l i m i t e d to three years'
duration and each p r o j e c t must contain an evaluation component.
Section 134 requires the Secretary to provide s t a f f t r a i n i n g
and t e c h n i c a l assistance to States, substate grantees, career
centers, communities, business and labor organizations, service
providers, i n d u s t r y consortia, and other e n t i t i e s . Such t r a i n i n g
and t e c h n i c a l assistance may be provided through grants,
contracts or other arrangements, and i s intended to enhance the
capacity of these p a r t i e s to d e l i v e r e f f e c t i v e adjustment
assistance services and to avert plant closings or s u b s t a n t i a l
l a y o f f s . The assistance may include development of management
information systems, customized t r a i n i n g programs, and
dissemination of computer-accessed l e a r n i n g systems. Training
and t e c h n i c a l assistance provided under t h i s section must be
coordinated w i t h the a c t i v i t i e s of the Capacity B u i l d i n g and
Information and Dissemination Network established under section
453 of the Job Training Partnership Act.
Section 135 provides Federal by-pass a u t h o r i t y f o r operation
of the program. I f a State chooses not to p a r t i c i p a t e i n the
program, the Secretary i s to use the funds that would be a l l o t t e d
to the State to provide services to e l i g i b l e workers i n t h a t
State.
Part C of t i t l e I establishes performance standards and
q u a l i t y assurance systems.
Section 151 requires the Secretary to e s t a b l i s h a process
w i t h i n each State to promote the development of a customer
service compact among the p a r t i e s administering t i t l e .1 programs:
the Secretary, the Governor, each substate grantee, and each
career center. The compact i s an informal agreement rather than
a formal l e g a l document. I t i s to i d e n t i f y the shared goals and
values that w i l l govern the a d m i n i s t r a t i o n of the program, the
respective roles and r e s p o n s i b i l i t i e s of each party, methods f o r
ensuring t h a t the s a t i s f a c t i o n of p a r t i c i p a n t s w i t h services
received i s a primary consideration i n the a d m i n i s t r a t i o n of the
program, and other matters on which there i s agreement. This
compact r e f l e c t s a new customer-driven view of the r e l a t i o n s h i p
between the local,. State and Federal partners i n providing
employment and t r a i n i n g services. I t i s a pledge to d e l i v e r
q u a l i t y customer services, and i s part of the process to
continuously develop customer-based performance measures and
improve performance. Each year, the p a r t n e r s - w i l l meet to
discuss goals' and s t r a t e g i e s f o r serving t h e i r customers i n the
coming year.
Section 152 establishes performance standards f o r t i t l e I .
Section 152(a) requires the Secretary, a f t e r consulting w i t h the
Secretary of Education, Governors, substate grantees, and career
21
�centers, to prescribe separate performance standards for substate
grantees and career centers. The standards are to be based on
factors the Secretary determines are appropriate, and may include
(1) placement; (2) the a c q u i s i t i o n of s k i l l s based on the s k i l l
standards and c e r t i f i c a t i o n system endorsed by the National S k i l l
Standards Board established under the Goals 2000: Educate America
Act; (3) p a r t i c i p a n t and employer s a t i s f a c t i o n w i t h services
provided and employment outcomes; (4) employer s a t i s f a c t i o n w i t h
the job performance of the i n d i v i d u a l s placed; and (5) the
q u a l i t y of services to hard-to-serve populations, such as lowincome and older workers.
Section 152(b) requires each Governor to prescribe
adjustments to the Secretary's standards, w i t h i n parameters
established by the Secretary and a f t e r c o n s u l t a t i o n w i t h substate
grantees and career centers. • Such adjustments must be based on
(1) economic, geographic and demographic f a c t o r s , and (2)
c h a r a c t e r i s t i c s of the population to be served.
Section 152(c) s p e c i f i e s that the Governor i s to provide
technical assistance to substate grantees and-career centers that
f a i l to meet performance standards under uniform c r i t e r i a
prescribed by the Secretary. Governors must report annually to
the Secretary on the f i n a l performance standards and performance
for each substate grantee and career center, as w e l l as the
t e c h n i c a l assistance the Governor plans and has provided. I f a
substate grantee f a i l s to meet performance standards f o r two
consecutive program years, the Governor must terminate the
grantee agreement and designate another e n t i t y as the substate
grantee. S i m i l a r l y , the substate grantee must terminate the
career center agreement and select another e n t i t y as a career
center operator i f the center has f a i l e d to meet standards f o r
two consecutive years. Subsection (c) provides substate grantees
and career centers w i t h an appeal process to the Secretary
regarding such terminations.
Section 152(d) s p e c i f i e s that Governors are to award
incentive grants, out of the Governor's reserved funds, to
substate grantees and career qenters exceeding performance
standards. Incentive grants are to be used by substate grantees
and career centers to enhance or expand services.
Section 153 requires that each substate grantee e s t a b l i s h
methods f o r o b t a i n i n g feedback from qustomers--individuals and
employers—on the e f f e c t i v e n e s s and q u a l i t y of the services they
have received and of the service providers. Surveys, interviews
and focus groups may be used to obtain t h i s feedback. The
information obtained must be analyzed by the substate grantee on
a regular basis, and a summary of the information and the
analysis i s to be provided to the career center f o r use i n
improving i t s a d m i n i s t r a t i o n of t i t l e I programs and a i d i n g
customer choice i n s e l e c t i n g e l i g i b l e service providers.
22
�Section 154 establishes e l i g i b i l i t y requirements f o r
providers of education and t r a i n i n g services. The purpose of
such requirements i s to provide i n d i v i d u a l customers w i t h
information on the performance of service providers that w i l l
assist them i n choosing types of services and where to obtain
those services, and to preclude i n e f f e c t i v e service providers
from receiving Federal funds.
Section 154(a) states that i n order to be e l i g i b l e to
receive t i t l e I funds, an education and t r a i n i n g service provider
must be e l i g i b l e to p a r t i c i p a t e i n t i t l e IV of the Higher
Education Act or be determined to be e l i g i b l e under the
a l t e r n a t i v e e l i g i b i l i t y procedures i n subsection (b). Such
provider must also provide the performance-based information
required i n subsection ( c ) .
Section 154(b) requires the Governor to e s t a b l i s h an
a l t e r n a t i v e e l i g i b i l i t y procedure f o r education and t r a i n i n g
providers that desire to be funded under t h i s Act, but are not
e l i g i b l e under the Higher Education Act. This procedure must
e s t a b l i s h minimum l e v e l s of performance and be based on factors
and guidelines developed by the Secretary, a f t e r c o n s u l t a t i o n
w i t h the Secretary of Education. The factors must be comparable
to those that are used to determine an i n s t i t u t i o n of higher
education's e l i g i b i l i t y to p a r t i c i p a t e i n t i t l e IV programs. I f
the p a r t i c i p a t i o n of an i n s t i t u t i o n of higher education i n
programs under t i t l e IV of the Higher Education Act i s
terminated, the i n s t i t u t i o n may not receive funds under the
Reemployment Act f o r a period of two years.
Section 154(c) describes the types of performance-based
information that must be submitted by a l l service providers
(except f o r on-the-job t r a i n i n g ) i n order to q u a l i f y under t h i s
section. Such i n f o r m a t i o n i s to be i d e n t i f i e d by the Secretary
i n c o n s u l t a t i o n w i t h the .Secretary of Education and may include
program completion rates, licensure rates, placement and
r e t e n t i o n i n employment rates, the percentage of graduates who
meet s k i l l standards and c e r t i f i c a t i o n requirements, and the
percentage of students who o b t a i n employment i n an occupation
r e l a t e d to the provider's program. Governors may prescribe
a d d i t i o n a l performance-based i n f o r m a t i o n to be submitted by
providers.' I t i s intended that the Secretary w i l l closely
coordinate w i t h the Secretary of Education to promote consistency
i n the i n f o r m a t i o n requested of service providers under t h i s
program and under the Higher Education Act.
Section 154(d) s p e c i f i e s how the system of e l i g i b i l i t y
requirements i s to be administered. Each State must designate a
State agency w i t h r e s p o n s i b i l i t y f o r compiling a l i s t of e l i g i b l e
providers and performance-based i n f o r m a t i o n and disseminating
t h i s l i s t to substate e n t i t i e s and career centers i n the State.
Service providers d e s i r i n g to receive t i t l e I funds must submit
23
�the performance-based i n f o r m a t i o n described above to the
designated State agency at such time and i n such form as the
agency requires. The designated State agency may provide
technical assistance to providers i n developing the required
information, i n c l u d i n g f a c i l i t a t i n g the use of State
a d m i n i s t r a t i v e records.
I f the State agency determines that information concerning a
provider i s inaccurate, the provider i s d i s q u a l i f i e d from
receiving t i t l e I funds f o r two years, unless the provider can
demonstrate that the information was provided i n good, f a i t h .
The
Governor must e s t a b l i s h a procedure f o r service providers to
appeal d i s q u a l i f i c a t i o n . The procedure must provide an
opportunity f o r a hearing and prescribe appropriate time l i m i t s
to ensure prompt r e s o l u t i o n of the appeal.
The Secretary of Labor must also consult w i t h the Secretary
o f Education regarding the e l i g i b i l i t y of i n s t i t u t i o n s of higher
education and other providers of education and t r a i n i n g under the
Reemployment Act and the Higher Education Act.
Section 154(e) s p e c i f i e s that providers of on-the-job
t r a i n i n g are not subject to the e l i g i b i l i t y requirements
described i n t h i s section, but the substate grantee i s required
to c o l l e c t performance-based information required by the
Secretary from on-the-job t r a i n i n g providers and disseminate t h i s
information to career centers.
Part D of t i t l e I contains a v a r i e t y of requirements
generally applicable to a l l program under t i t l e I . These
provisions are adapted almost e x c l u s i v e l y from the provisions
contained i n part C of the Job T r a i n i n g Partnership Act and also
incorporate a labor c o n s u l t a t i o n p r o v i s i o n from section 311 of
JTPA.
Section 161 contains general program requirements.
F i r s t , i t p r o h i b i t s the use of funds under t h i s t i t l e to induce,
encourage, or a s s i s t r e l o c a t i o n s i f the move r e s u l t s i n the loss
of employment at the o r i g i n a l s i t e . I n a d d i t i o n , funds cannot be
used f o r 120 days f o r on-the-job t r a i n i n g , customized or s k i l l
t r a i n i n g , or company s p e c i f i c assessment of job applicants or
employees f o r an establishment that has relocated, i f the
r e l o c a t i o n led to loss of employment at the o r i g i n a l s i t e .
The
Secretary must i n v e s t i g a t e a l l e g a t i o n s that funds under t h i s
t i t l e have been improperly used. Where the Secretary determines
a v i o l a t i o n by a State, substate area, or substate grantee,
repayments of misspent funds to the Treasury i s required. The
Secretary i s also required to c o l l e c t an a d d i t i o n a l amount equal
to the repayment unless the v i o l a t o r s demonstrate they n e i t h e r
knew nor could have known the funds were improperly used, and
these funds would be provided to the t i t l e I program.
24
�Second, the section requires that e f f o r t s be made to develop
programs under t h i s t i t l e to encourage occupational development,
upward m o b i l i t y , the development of new careers, and to overcome
sex-stereotyping i n n o n - t r a d i t i o n a l employment.
Third, the section authorizes j o i n t agreements or contracts
between substate grantees to pay or share education, t r a i n i n g ,
placement or supportive services costs under t h i s t i t l e .
Fourth, the section establishes l i m i t a t i o n s on OJT.
Payments to employers f o r OJT may not exceed the average of 50
percent of wages paid to program p a r t i c i p a n t s . In a d d i t i o n , OJT
is l i m i t e d to the period generally necessary to acquire s k i l l s
r e l a t e d to the occupation, but i s not to exceed 6.months. OJT
contracts must specify the type' and duration of t r a i n i n g , and OJT
contracts w i t h brokers must include a d d i t i o n a l information on
services to 'the c l i e n t by the broker and the employers.
Contracts are p r o h i b i t e d w i t h employers who have e x h i b i t e d a
p a t t e r n of not p r o v i d i n g OJT p a r t i c i p a n t s w i t h regular employment
a f t e r the t r a i n i n g period w i t h wages and b e n e f i t s comparable to
other employees.
F i f t h , charging an i n d i v i d u a l a fee f o r the placement or
r e f e r r a l of that i n d i v i d u a l i n or to a t r a i n i n g program under
this t i t l e is prohibited.
The section also contains provisions t h a t p r o h i b i t subsidy
of p r i v a t e f o r - p r o f i t employment; cover the r e t e n t i o n of program
income by p u b l i c and n o n p r o f i t e n t i t i e s ; specify n o t i f i c a t i o n and
c o n s u l t a t i o n requirements; permit cooperative agreements between
States; p r o h i b i t funding f o r p u b l i c service employment except for
disaster r e l i e f employment assistance; p r o h i b i t funding for
employment generating and r e l a t e d a c t i v i t i e s except f o r disaster
r e l i e f employment assistance; and cover Federal r e a l property
requirements.
Section 162 provides standards f o r the wages to be paid to
participants in training.
Section 163 provides labor standards r e l a t i n g to general
working c o n d i t i o n s ; h e a l t h and safety standards; workers'
compensation; equitable treatment; p r o h i b i t i o n of displacement;
r e l a t i o n s h i p w i t h organized labor, i n c l u d i n g the requirement that
programs under t i t l e p r o v i d i n g services to a s u b s t a n t i a l number
of labor organization members w i l l be established only a f t e r f u l l
c o n s u l t a t i o n w i t h the o r g a n i z a t i o n .
Section 164 provides f o r grievance procedures and the
remedies a v a i l a b l e to g r i e v a n t s .
Part E of t i t l e I contains f i s c a l a d m i n i s t r a t i v e provisions
governing t i t l e I . These provisions are adapted from the
25
�provisions contained i n p a r t D of t i t l e I of the Job Training
Partnership Act. This p a r t assumes that the O f f i c e of Management
and Budget C i r c u l a r s A-102 and A-87, governing a d m i n i s t r a t i v e
requirements and cost p r i n c i p l e s applicable to Federal grant
programs, w i l l not apply to t i t l e I . Rather, the provisions of
part E, many of which are s i m i l a r to the C i r c u l a r s , w i l l apply.
Currently, these C i r c u l a r s do not apply to t i t l e I I or t i t l e I I I
of the Job Training Partnership Act.
Section 171(a) d i r e c t s that appropriations under t i t l e I f o r
any f i s c a l year s h a l l be a v a i l a b l e f o r o b l i g a t i o n only on the
basis of a program year, which begins on July 1 i n the f i s c a l
year f o r which the a p p r o p r i a t i o n i s made.
Section 171(b) authorizes r e c i p i e n t s to expend funds
o b l i g a t e d i n a program year e i t h e r during that program year or
the two succeeding program years.
Section 172 contains procedural requirements regarding the
p u b l i c a t i o n of formula a l l o c a t i o n s and allotments, and any
d i s c r e t i o n a r y a l l o c a t i o n formula.
Section 173 authorizes the Secretary t o monitor a l l
r e c i p i e n t s of f i n a n c i a l assistance under t i t l e I , and to conduct
i n v e s t i g a t i o n s to determine compliance w i t h the t i t l e and
implementing r e g u l a t i o n s .
Section 174(a) contains requirements f o r States t o follow i n
e s t a b l i s h i n g f i s c a l c o n t r o l s and fund accounting procedures
necessary to assure the proper d i s b u r s a l of, and accounting f o r
Federal funds paid to r e c i p i e n t s under t i t l e I .
Section 174 (b) contains the requirements and procedures to
follow i n the event the Governor determines that there i s a
s u b s t a n t i a l v i o l a t i o n of the Act or i t s r e g u l a t i o n s .
Section 174(c) s p e c i f i e s requirements for.repayment of funds
by r e c i p i e n t s of amounts found not t o have been expended i n
accordance w i t h t i t l e I .
Section 174(d) establishes l i a b i l i t y of r e c i p i e n t s f o r
repayment of funds, and s p e c i f i e s conditions f o r the Secretary's
imposition of sanctions against a r e c i p i e n t .
Section
terminate or
necessary to
operation of
174(e) gives the Secretary emergency a u t h o r i t y to
suspend f i n a n c i a l assistance, when i t i s deemed
p r o t e c t the i n t e g r i t y of funds or ensure the proper
the program.
Section 174(f) requires the Secretary t o take a c t i o n or
order c o r r e c t i v e measures w i t h respect to p a r t i c i p a n t s who have
26
�been discharged or d i s c r i m i n a t e d against, or who have f i l e d a
complaint or been denied a b e n e f i t .
Section 174(g) s p e c i f i e s that the remedies under section 174
are not to be exclusive remedies.
Section 175 requires each r e c i p i e n t of f i n a n c i a l assistance
to maintain records on funds, p a r t i c i p a n t s and programs, and keep
such records f o r the inspection of the Secretary, the Inspector
General, and the Comptroller General. The section also s p e c i f i e s
the r e s p o n s i b i l i t i e s of fund r e c i p i e n t s f o r maintaining
management information systems, f i n a n c i a l records, and monitoring
the performance of service providers. Each Governor must
e s t a b l i s h record r e t e n t i o n requirements.
Section 176 establishes procedures f o r a d m i n i s t r a t i v e
a d j u d i c a t i o n to be used whenever any applicant for f i n a n c i a l
assistance i s d i s s a t i s f i e d because the Secretary has made a
determination not t o award such assistance.
Section 177(a) makes programs under t i t l e ' I subject to the
nondiscrimination provisions of the Age D i s c r i m i n a t i o n Act of
1975, Section 504 of the R e h a b i l i t a t i o n Act, t i t l e IX of the
Education Amendments of 1972, and t i t l e VI of the C i v i l Rights
Act of 1964. Section 177(a) also p r o h i b i t s d i s c r i m i n a t i o n under
t i t l e I on the basis of race, color, r e l i g i o n , sex, n a t i o n a l
o r i g i n , age, d i s a b i l i t y , or p o l i t i c a l a f f i l i a t i o n or b e l i e f ;
p r o h i b i t s employment of p a r t i c i p a n t s on the c o n s t r u c t i o n ,
operation or maintenance of r e l i g i o u s f a c i l i t i e s ; p r o h i b i t s
d i s c r i m i n a t i o n against p a r t i c i p a n t s i n t i t l e I because of t h e i r
status as p a r t i c i p a n t s ; and allows p a r t i c i p a t i o n i n t i t l e I
programs of c e r t a i n aliens and refugees.
Section 177(b) establishes procedures to be used by the
Secretary whenever the Secretary determines that a State or other
r e c i p i e n t has f a i l e d to comply w i t h a p r o v i s i o n of law or
r e g u l a t i o n governing nondiscrimination.
Section 177(c) authorizes the Attorney General to b r i n g
c i v i l a c t i o n i n any appropriate U.S. d i s t r i c t court f o r
appropriate r e l i e f i n d i s c r i m i n a t i o n cases.
Section 178 provides f o r review i n the courts of appeals
w i t h respect t o the Secretary's f i n a l determinations to award or
not award f i n a n c i a l assistance, terminate assistance, withhold
funds, or otherwise sanction a r e c i p i e n t , or i f any i n t e r e s t e d
party i s d i s s a t i s f i e d w i t h or aggrieved by any f i n a l action' of
the Secretary.
1
Section 179 authorizes the Secretary to prescribe rules and
r e g u l a t i o n s , accept g i f t s to carry out t i t l e I programs, a l l o c a t e
or spend funds, and u t i l i z e s services and f a c i l i t i e s of other
27
�Federal, State, or substate agencies.
Section 179 also p r o h i b i t s
f i n a n c i a l assistance t o be used for p o l i t i c a l a c t i v i t i e s .
Section 180 s p e c i f i e s that no a u t h o r i t y t o enter i n t o
contracts or f i n a n c i a l assistance agreements under t i t l e I s h a l l
be e f f e c t i v e except t o the extent or i n such amount as are
provided i n advance i n a p p r o p r i a t i o n Acts.
Section 181 amends section 665 of t i t l e 18, United States
Code, to provide c r i m i n a l p e n a l t i e s for anyone who knowingly
e n r o l l s an i n e l i g i b l e p a r t i c i p a n t , embezzles or steals any money,
assets or property of a program assisted under t i t l e I , or who
w i l l f u l l y obstructs or impedes a Federal i n v e s t i g a t i o n conducted
under t i t l e I .
Section 182 provides t h a t , upon enactment of t h i s Act,
references i n other s t a t u t e s t o the Job Training Partnership Act
s h a l l be deemed also t o r e f e r t o the Reemployment Act of 1994.
Part F contains miscellaneous provisions r e l a t i n g to t i t l e
I.
Section 191 establishes July 1, 1995 as the e f f e c t i v e date
of - t i t l e I .
Section 192 terminates the EDWAA program (sections 301-324
of the Job Training Partnership Act (JTPA), the Defense
Conversion Adjustment Program, the Defense D i v e r s i f i c a t i o n
Program, and the Clean A i r Employment T r a n s i t i o n Assistance
Program on July 1, 1995. Funds authorized under these programs
w i l l be permitted t o be expended u n t i l they are exhausted.
The Disaster R e l i e f Employment Assistance Program, T i t l e IVJ of JTPA and the mass l a y o f f study provisions i n section 462(e)
of JTPA (which are t r a n s f e r r e d to t h i s Act) are also terminated
on July 1, 1995.
Section 193 provides the Secretary w i t h general a u t h o r i t y t o
e s t a b l i s h rules and procedures t o provide f o r an o r d e r l y
t r a n s i t i o n from the terminated programs t o the comprehensive
program established under t i t l e I .
T i t l e I I contains r e t r a i n i n g income support and unemployment
compensation f l e x i b i l i t y p r o v i s i o n s . Part A contains the
provisions which would e s t a b l i s h a system of r e t r a i n i n g income
support f o r unemployed i n d i v i d u a l s i n long-term t r a i n i n g .
Section 201 would e s t a b l i s h the r e t r a i n i n g income support
program. The program i s designed t o a s s i s t permanently l a i d - o f f
i n d i v i d u a l s who are p a r t i c i p a t i n g i n t r a i n i n g programs a f t e r
those i n d i v i d u a l s have exhausted a l l unemployment compensation to
which they may have been e n t i t l e d under State or Federal
unemployment compensation 1-aws.
28
�Section 202 would require, subject to the a v a i l a b i l i t y of
funds i n the account established by part B' of the t i t l e , payment
of r e t r a i n i n g income support to i n d i v i d u a l s who meet the
e l i g i b i l i t y requirements of subsections (a), (b) and ( c ) .
Subsection (a) describes those requirements for i n d i v i d u a l s who
have three years or more of work with the employer from which the
i n d i v i d u a l was l a i d - o f f . Subsection (b) describes the
e l i g i b i l i t y requirements f o r i n d i v i d u a l s who have been determined
to be adversely a f f e c t e d due to i n t e r n a t i o n a l trade under a
temporary c e r t i f i c a t i o n procedure established by part D of the
t i t l e . Subsection (c) would extend e l i g i b i l i t y , beginning i n
program year 2000, f o r r e t r a i n i n g income support to i n d i v i d u a l s
who have at least one year, but less than three years, of
employment w i t h the employer from which they were l a i d - o f f and to
i n d i v i d u a l s who have worked f o r a previous employer i n the
occupation f o r one year or more and i n the industry of the job
from which they were l a i d o f f .
Subsection (a) would become e f f e c t i v e f o r weeks beginning
a f t e r July 1, 1995. Subsection (b) would be e f f e c t i v e between
July 1, 1995 and before October 1, 1999. Subsection (c) would
become e f f e c t i v e f o r weeks beginning a f t e r September 30, 1999.
In general, the e l i g i b i l i t y requirements are intended to
provides r e t r a i n i n g income support to i n d i v i d u a l s who have (1)
been permanently l a i d o f f (as defined i n section 203), (2)
received (or would have received had they applied) unemployment
compensation as a r e s u l t of the l a y o f f , (3) exhausted a l l r i g h t s
to unemployment compensation (or would have exhausted had they
a p p l i e d ) , and (4) are p a r t i c i p a t i n g and making s a t i s f a c t o r y
progress i n an approved education or t r a i n i n g program as part of
a reemployment plan developed f o r the i n d i v i d u a l by an agency
c e r t i f i e d by the Secretary to develop such plans.
In a d d i t i o n , the b i l l would generally require i n d i v i d u a l s to
be e n r o l l e d i n an education or t r a i n i n g program by the l a t e r - o f
the 16th week a f t e r the permanent l a y o f f or by the 14th week
a f t e r he, or she, i s aware that the l a y o f f i s permanent i n order
to q u a l i f y f o r r e t r a i n i n g income support. I n s i t u a t i o n s where
there were extenuating circumstances that j u s t i f i e d a delay i n
e n r o l l i n g i n such a program, i n d i v i d u a l s would be able to get a
30 day extension from the enrollment date requirement. I n
a d d i t i o n , i n d i v i d u a l s who have been issued.a c e r t i f i c a t e of
continuing e l i g i b i l i t y under s e c t i o n ' ^ O would have u n t i l the
Sixteenth week a f t e r t h e i r separation from the subsequent
employment to e n r o l l i n t r a i n i n g .
Subsection (d) would provide that periods of temporary
l a y o f f , of up to 26 weeks, would be counted i n determining the
length of employment w i t h the l a y o f f employer.
In addition,
subsection (d) describes other non-work periods that would be
29
�included i n determining the length of employment w i t h the l a y o f f
employer. These include the f o l l o w i n g :
o
up t o 7 weeks i n any one-year period of employerauthorized leave or i n service as a f u l l - t i m e labor
representative;
o
up to 12 weeks i n a one-year period f o r conditions that
are described i n section 102 of the Family and Medical
Leave Act of 1993; and
o
up t o 26 weeks i n any one-year period f o r a compensable
d i s a b i l i t y under worker's compensation or f o r c a l l - u p
for a c t i v e duty i n the Armed Forces of the United
States.
Subsection (e) would make i t clear that f o r the purpose of
determining an i n d i v i d u a l ' s length of tenure w i t h an employer,
a l l jobs worked by an i n d i v i d u a l that are covered by a m u l t i employer pension plan defined i n ERISA, and a l l jobs worked that
were obtained through a single h i r i n g h a l l , would be considered
employment f o r the same employer. I n a d d i t i o n , the subsection
would include as employment f o r the same employer a l l employment
for a predecessor employer or a j o i n t employer. As a r e s u l t of
the i n c l u s i o n of employment f o r a predecessor employer, employees
who work f o r a business t h a t has been the subject of a merger,
sale or s p i n o f f would not have t h e i r job tenure reduced as a
r e s u l t of that t r a n s a c t i o n . As a r e s u l t of the i n c l u s i o n of
employment f o r j o i n t employers, employees who are leased t o
another employer would s u f f e r no diminution of t h e i r job tenure
as a r e s u l t of the leasing.
Subsection ( f ) would provide t h a t b r i e f breaks of up t o
twenty-eight days, from an education or t r a i n i n g program,
p r o v i d i n g the i n d i v i d u a l was p a r t i c i p a t i n g i n the program before
the break and the break i s provided under the program, would be
treated as a period i n t r a i n i n g . As a r e s u l t , an i n d i v i d u a l
could continue t o receive r e t r a i n i n g income support during such a
break.
Section 203 would set the weekly r e t r a i n i n g income support
amount payable t o an e l i g i b l e i n d i v i d u a l at the amount equal to
the most recent b e n e f i t amount payable t o the i n d i v i d u a l f o r a
week of t o t a l unemployment under the'State's unemployment
compensation law. That amount would be reduced, d o l l a r f o r
d o l l a r , by any t r a i n i n g income support provided f o r that same
week under another Federal program. The weekly amount would also
be reduced d o l l a r f o r d o l l a r by any income earned by the
i n d i v i d u a l i n employment t h a t exceeds h a l f of the i n d i v i d u a l ' s
weekly r e t r a i n i n g income support.
30
�Section 204 would set the maximum amount of r e t r a i n i n g
income support that i s payable to an i n d i v i d u a l . Under
subsection (a), i n d i v i d u a l s who are e i t h e r e l i g i b l e f o r
r e t r a i n i n g income support under section 202(a), or would have
been e l i g i b l e f o r income support under the trade adjustment
assistance program, would be e l i g i b l e f o r up to 52 weeks of
r e t r a i n i n g income support i n a 104 week period beginning with the
date of permanent l a y o f f . Under subsection (b), i n d i v i d u a l s with
at least one, but less than three, years of work w i t h the same
l a y o f f employer (or w i t h at least one year with an employer
immediately preceding employment w i t h the l a y o f f employer i n the
same occupation), would be l i m i t e d to 26 weeks of r e t r a i n i n g
income support w i t h i n a 78 week period beginning w i t h the date of
permanent l a y o f f . Both subsections (a) and (b) would reduce the
amount of r e t r a i n i n g support by the amount the i n d i v i d u a l has
received from extended or emergency unemployment compensation.
Subsection (c) would p r o h i b i t the payment of r e t r a i n i n g
income support to an i n d i v i d u a l who receiving remuneration from
an on-the-job t r a i n i n g program.
Subsection (d) would address the rare s i t u a t i o n where an
i n d i v i d u a l becomes e l i g i b l e f o r extended unemployment
compensation a f t e r he, or she, has received the maximum amount of
r e t r a i n i n g income support. I n such a case, the number of weeks
of extended b e n e f i t s would be reduced by the number of weeks that
the i n d i v i d u a l was e n t i t l e d to r e t r a i n i n g income support.
Section 205 would authorize the Secretary to enter i n t o
agreements w i t h the States to pay r e t r a i n i n g income support to
e l i g i b l e i n d i v i d u a l s . Such agreements would, among other things,
require the States to n o t i f y applicants that p a r t i c i p a t i o n ' i n an
education and t r a i n i n g program i s a requirement f o r - t h e receipt
of r e t r a i n i n g income support and to provide f o r a system of
voluntary w i t h h o l d i n g of Federal i n d i v i d u a l income tax.
Section 206 would require the Secretary to e s t a b l i s h a
system to pay r e t r a i n i n g income support to i n d i v i d u a l s i n a State
where there i s no agreement f o r the payment of such support with
the State.
Section 207 would l i m i t the l i a b i l i t y of p u b l i c o f f i c i a l s i n
making payments under t h i s t i t l e .
Section 208 describes the procedures which would have to be
followed i n cases of fraud and overpayment. Under subsection
(a), i n d i v i d u a l s who receive overpayments would be l i a b l e to
repay the amount overpaid. However, repayment could be waived i f
i t were determined that the payment was made without f a u l t on the
part of the i n d i v i d u a l and that r e q u i r i n g repayment would be
contrary to equity and good conscience. The Secretary could
require a State to recover any overpayment by deducting such
31
�overpayment from any other unemployment compensation payable to
the i n d i v i d u a l under State or Federal law, as long as the amount
deducted would not exceed 50 percent of the amount otherwise
payable.
Subsection (b) would define fraud and would specify that an
i n d i v i d u a l who has been found to have committed such would, i n
a d d i t i o n to any other penalties provided by law, be i n e l i g i b l e
for any f u r t h e r payments of r e t r a i n i n g income support.
Subsection (c) would provide that no repayments or
deductions could be made u n t i l notice and a f a i r hearing have
been provided to the i n d i v i d u a l and the determination has become
f i n a l . Under subsection (d) amounts recovered would be returned
to the Retraining Income Support Account which would be
established by section 221.
Section 209 would provide f o r a penalty of a f i n e of $1000
or imprisonment f o r not more than a year, or both, f o r anyone who
makes a false statement of a material fact or who f a i l s to
disclose a material fact for .the purpose of obtaining or
increasing any r e t r a i n i n g income support payment.
Section 210 would define the terms s p e c i f i c to part A of the
bill.
Section 211 would authorize the Secretary of Labor to prescribe such regulations as may be necessary t o carry out part A.
Section 212 would provide that the provisions of p a r t A
become e f f e c t i v e on July 1, 1995.
Subpart B establishes a Retraining Income Support Account.
Section 221 would amend T i t l e IX of the Social Security Act to
include a new section 911 e s t a b l i s h a Retraining Income Support
Account as a separate book account i n the Unemployment Trust
Fund. For f i s c a l years 1996 through 2000, t h i s new account would
be funded from an annually escalating f r a c t i o n of the proceeds of
the 0.2 percent Federal surtax c o l l e c t e d under section 3301 of
the I n t e r n a l Revenue Code. • Beginning i n f i s c a l year 2001, the
e n t i r e 0.2 percent w i l l be d i r e c t l y deposited i n t o the account.
The flow of funds to other Federal accounts (ESAA, EUCA, FUA)
would not be a f f e c t e d by t r a n s f e r of funds to t h i s account, and
the account would not p a r t i c i p a t e i n the borrowing among Federal
accounts required by section 910. At a l l times spending f o r
r e t r a i n i n g income support would be capped at the amount of funds
i n the account.
The new section 911 of the Social Security Act would provide
for a permanent a p p r o p r i a t i o n of the funds i n the Retraining
Income Support Account. This section would also provide f o r the
t r a n s f e r of funds to the States that have entered i n t o agreements
32
�to pay r e t r a i n i n g income support. Under the section, the
Secretary from time to time would t r a n s f e r funds f o r the payment
of that support. A l l money received by a State under t h i s
section would have to be used s o l e l y f o r the payment of
r e t r a i n i n g income support, except that deductions from a payment
would be allowed f o r the purpose of paying health insurance or
withholding Federal i n d i v i d u a l income tax i f the r e c i p i e n t of the
payment so elected. Any funds not so used i n accordance w i t h
these provisions would be returned to the Retraining Income
Support Account.
Section 222 would amend section 901(c) of the Social
Security Act to permit payment from the Employment Security
A d m i n i s t r a t i o n Account (ESAA) f o r a d m i n i s t r a t i v e expenses
incurred by States i n r e t r a i n i n g income support payments.
Section 223 sets f o r t h conforming amendments to the Social
Security Act and the I n t e r n a l Revenue Code. Subsection (a) would
amend section 905 the Social Security Act to adjust the funding
of the Extended Unemployment Compensation Account to take i n t o
account the funding of the Retraining Income Support Account.
Subsection (b) would amend section 3302 of the I n t e r n a l Revenue
Code to reduce the c r e d i t employers i n a p a r t i c u l a r State receive
for c o n t r i b u t i o n s to a State unemployment fund by 7.5 percent i f
such State d i d not enter an agreement under section 205 to
administer a program f o r the payment of r e t r a i n i n g income
support, or d i d not f u l f i l l i t s commitments under such an
agreement.
Part C contains the changes i n the Tax Code that are
necessary f o r f i n a n c i n g the costs of the r e t r a i n i n g income
support program.
•Section 231 would provide f o r a permanent extension of the
0.2 percent surtax that i s scheduled to expire at the end of
calendar 1998. .For budget purposes, the r e t r a i n i n g income
support program i s p r i m a r i l y financed by program o f f s e t s u n t i l
f i s c a l year 2000. I n that and succeeding f i s c a l years, the
program w i l l be financed e n t i r e l y by the FUTA surtax.
Section 232 would amend the Tax Code to require States to
allow i n d i v i d u a l s r e c e i v i n g unemployment compensation or
r e t r a i n i n g income support to have Federal i n d i v i d u a l income tax
w i t h h e l d at a rate of 15 percent from such compensation on a
voluntary basis. States would be required to conform t h e i r
unemployment compensation laws to provide f o r voluntary
w i t h h o l d i n g by January 1, 1996. Conforming amendments would be
made to allow the use of t r u s t fund monies to pay f o r the
w i t h h o l d i n g of Federal i n d i v i d u a l income tax.
33
�Part D provides f o r the i n t e g r a t i o n of trade-impacted
workers i n t o the Comprehensive Reemployment System established
under t i t l e I and part A of t i t l e I I of t h i s Act.
Section 241 would phase out both the Trade Adjustment
Assistance program and the NAFTA T r a n s i t i o n a l Adjustment
Assistance program. Under subsection (b), those i n d i v i d u a l s
receiving assistance under these programs before July 1, 1995
would be able to receive the balance of t h e i r b e n e f i t s .
Section 242 would e s t a b l i s h a t r a n s i t i o n a l c e r t i f i c a t i o n
program f o r trade-impacted i n d i v i d u a l s . Subsection (a)
establishes w i t h i n the Department of Labor a temporary,
t r a n s i t i o n a l c e r t i f i c a t i o n program. Upon c e r t i f i c a t i o n , tradeimpacted workers would be e l i g i b l e f o r services under the
comprehensive reemployment program authorized by t i t l e I and
income support under part A of t i t l e I I . The c e r t i f i c a t i o n
process would be the same as i s c a r r i e d out under the current TAA
program.
Subsection (b) sets f o r t h the components of the t r a n s i t i o n a l
c e r t i f i c a t i o n program. Paragraph (1) sets f o r t h the e l i g i b i l i t y
requirements f o r c e r t i f y i n g a group of workers. Paragraph (2)
establishes a p e t i t i o n process by which groups of workers may
p e t i t i o n , for c e r t i f i c a t i o n . Paragraph (3) d e t a i l s the process by
which the Secretary i s to make a determination on such a
p e t i t i o n , and excludes those whose l a s t l a y o f f from an impacted
f i r m was more than one year before the date of the p e t i t i o n on
which the c e r t i f i c a t i o n was granted. In a d d i t i o n , paragraph (3)
would require the Secretary to publish a summary of the
determination i n the Federal Register, and also authorizes the
Secretary to terminate c e r t i f i c a t i o n s f o r firms or subdivisions
where l a y o f f s from those e n t i t i e s are no longer a t t r i b u t a b l e to
foreign trade. Paragraph (4) would give the Secretary the power
to subpena witnesses and documents necessary f o r the making of
such a determination.
Subsection (c) l i m i t s the f i l i n g period f o r p e t i t i o n s f o r
c e r t i f i c a t i o n under the t r a n s i t i o n a l program to the period a f t e r
June 30, 1995 and before July 1, 1999.
Part E includes amendments to the Federal Unemployment Tax
Act which would permit States to amend t h e i r laws to pay
unemployment compensation under a short-time compensation program
to an i n d i v i d u a l who i s working reduced hours f o r the employer,
and to pay reemployment bonuses to c e r t a i n i n d i v i d u a l s .
Section 251 i s b a s i c a l l y a t e c h n i c a l amendment which would
redefine the current d e f i n i t i o n of short-time compensation
program as i t was defined i n T i t l e IV of the Unemployment
Compensation Amendments of 1992 (P.L. 102-318) and include that
d e f i n i t i o n i n section 3306(u) of the Federal Unemployment Tax
34
�Act.
The short-time compensation program i s designed to avert
l a y o f f s . Under the program, a worker's hours are reduced i n l i e u
of a l a y o f f and the worker i s e l i g i b l e f o r unemployment •
compensation based on the proportion of such reduction.
Section 252 would permit States to amend t h e i r laws to o f f e r
reemployment bonuses equal to no more than four times the
i n d i v i d u a l ' s weekly amount of unemployment compensation to
i n d i v i d u a l s who are: unemployed; e l i g i b l e f o r unemployment
compensation, determined as l i k e l y to exhaust t h e i r unemployment
compensation; and who f i n d f u l l - t i m e employment w i t h i n no more
than 12 weeks from the date of f i l i n g t h e i r i n i t i a l claim f o r
unemployment compensation. I n a d d i t i o n , the new employment must
be w i t h an employer other than the one w i t h whom the i n d i v i d u a l
was employed p r i o r to r e c e i v i n g unemployment compensation, and
the new employment must continue f o r at least four months. A
State would only be allowed to use t h i s program i f i t d i d not add
any a d d i t i o n a l costs to the Unemployment Trust Fund and i f the
State has a plan f o r implementing the program that i s approved
by the Secretary.
Appropriate conforming amendments would also be made to the
withdrawal standards i n section 3304(a)(4) of the Federal
Unemployment Tax Act and section 303(a)(5) of the Social Security
Act.
Section 253 would remove the sunset p r o v i s i o n from the SelfEmployment Assistance Program, which provides self-employment
allowances i n l i e u of unemployment compensation to assist
unemployed workers i n s t a r t i n g businesses and becoming s e l f employed. The sunset p r o v i s i o n discourages States from
developing the supportive program, i n c l u d i n g entrepreneurial
t r a i n i n g , that i s to accompany the self-employment e f f o r t .
Section 254 provides- that the provisions of t i t l e I I take
e f f e c t on the date of enactment.
T i t l e I I I of the b i l l would e s t a b l i s h a program to encourage
States to develop and implement Statewide networks of one-stop
career centers. These networks would provide a common point of
access to employment, education and t r a i n i n g information and
services to students, workers, and employers. The centers would
make services a v a i l a b l e under employment and t r a i n i n g programs
administered by the Secretary and would encourage the
p a r t i c i p a t i o n of other Federal, State and l o c a l human resource
programs.
Section 301 describes the purposes of t i t l e I I I . These
include: e s t a b l i s h i n g a n a t i o n a l program of grants and waivers
of Federal s t a t u t o r y and regulatory requirements to provide
States w i t h the opportunity to develop and implement one-stop
. career center networks; p r o v i d i n g seed money to encourage a
35
�f l e x i b l e , nationwide system of one-stop career centers; promoting
universal access to a comprehensive menu of q u a l i t y employment:,
education and t r a i n i n g information and services; encouraging a
customer-oriented approach to the p r o v i s i o n of services,
i n c l u d i n g features to enhance customer choice and ensure that the
s a t i s f a c t i o n of i n d i v i d u a l s w i t h services received i s a primary
consideration i n the a d m i n i s t r a t i o n of the program; e s t a b l i s h i n g
a governance s t r u c t u r e composed of State, l o c a l and Federal
partners to ensure common goals, planning, service coordination
and oversight of the networks; and p r o v i d i n g State and l o c a l
areas w i t h increased f l e x i b i l i t y i n the a d m i n i s t r a t i o n of
employment and t r a i n i n g programs i n exchange f o r greater
a c c o u n t a b i l i t y f o r outcomes.
Part A of t i t l e I I I contains the components of the voluntary
one-stop career center system. Section 311 i d e n t i f i e s the seven
basic components, which are: the establishment of a workforce
investment board; the establishment of one-stop career centers;
the p r o v i s i o n of c e r t a i n common services through the one-stop
career centers; the p a r t i c i p a t i o n of Federal employment and
t r a i n i n g programs; an agreement between a l l a f f e c t e d p a r t i e s
regarding the operation of the centers; q u a l i t y assurance
systems, i n c l u d i n g performance standards; and the establishment
of a State Human Resource Investment Council.
Section 312 describes the establishment and functions of the
workforce investment boards. Under section 312(a), the Governor
is to designate one-stop service areas (OSSAs) w i t h i n the State.
The OSSAs are to be e i t h e r the geographic boundaries of the labor
market areas w i t h i n the State (although no service d e l i v e r y area
or substate area may be subdivided among the OSSAs), the substate
areas established under t i t l e I of the Act or a consortium of
such areas, or the service d e l i v e r y areas established under JTPA
or a .consortium of such areas. In order to promote planning and
s t a b i l i t y , OSSAs may not be redesignated more f r e q u e n t l y than
once every four years.
Under section 312(b), f o r each OSSA, the chief l o c a l elected
o f f i c i a l or o f f i c i a l s i s to e s t a b l i s h a workforce investment
board. The board i s to be composed of f i v e categories of
members: f i r s t , representatives of p r i v a t e sector employers, who
are to be a m a j o r i t y of the board and consist of owners, chief
executives or c h i e f managers of businesses; second,
representatives of organized labor, and community-based
organizations, who are to be at l e a s t 25 percent of the board
membership and o f f i c e r s of t h e i r organizations; t h i r d ,
representatives of educational i n s t i t u t i o n s ; f o u r t h , appropriate
community leaders, such as leaders of economic development
agencies, human service agencies and i n s t i t u t i o n s , veterans'
organizations and e n t i t i e s p r o v i d i n g job t r a i n i n g ; and f i f t h , a
chief l o c a l elected o f f i c i a l , who i s to be a non-voting member.
36
�The employer representatives are to be nominated by general
purpose business organizations. The labor representatives are to
be nominated by recognized State and l o c a l labor federations,
except that i f the federations are unable to nominate a
s u f f i c i e n t number of representatives, i n d i v i d u a l workers may be
included. The elected o f f i c i a l i s to be selected from among the
elected o f f i c i a l s i n the area by such o f f i c i a l s . A l l other
members are to be nominated by i n t e r e s t e d organizations.
The appointments are to be made by the chief l o c a l elected
o f f i c i a l , except i f there i s more than one u n i t of government i n
the OSSA the appointments are to be made i n accordance w i t h an
agreement between the o f f i c i a l s f o r such u n i t s . Absent such
agreement, the Governor would appoint the members. The size of
the board i s to be i n i t i a l l y determined by the chief l o c a l
elected o f f i c i a l or o f f i c i a l s , and t h e r e a f t e r by the board
i t s e l f . The members are to be appointed f o r f i x e d and staggered
terms, and any vacancy i s to be f i l l e d i n the same manner as the
o r i g i n a l appointment. Any board member may be removed for cause.
The board i s to e l e c t a chairperson, from among members who
are not p u b l i c o f f i c i a l s or the head of a p u b l i c agency, f o r a
period to be determined by the board. The chairperson i s t o
appoint appropriate s t a f f , who are not t o serve concurrently as
the s t a f f of any of the p a r t i c i p a t i n g programs. The'staff may
include an executive d i r e c t o r .
The board i s to be funded pursuant to the one-stop career
center operating agreements, based on a budget requested by the
board and approved by the chief l o c a l elected o f f i c i a l .
No
member of the board may cast a vote that would provide d i r e c t
f i n a n c i a l b e n e f i t s t o that member.
A p r i v a t e i n d u s t r y council (PIC) may become a board w i t h the
approval of the c h i e f elected o f f i c i a l s i f the PIC meets the
composition requirements or i s r e c o n s t i t u t e d to meet such
requirements. A State Human Resource Investment Council may, i n
any case where the OSSA i s the State, be r e c o n s t i t u t e d as the
board.
The Governor i s to c e r t i f y t h a t a board meets the
requirements of t h i s section.
Section 312(c) describes the six'basic functions of the
board. F i r s t , the board i s to develop s t r a t e g i c plans and
provide p o l i c y guidance to the workforce development programs i n
the OSSA. The s t r a t e g i c plan i s to be consistent w i t h the
statewide s t r a t e g i c plan developed by the State Human Resource
Investment Council and to include measurable objectives f o r
improving the q u a l i t y and effectiveness of workforce preparation,
development, and t r a i n i n g i n the OSSA and methods f o r
coordinating the programs to provide maximum coverage of the
37
�workforce, ensuring equitable access by population subgroups, and
enhancing the d e l i v e r y of services i n the OSSA. Second, the
board i s to u t i l i z e a v a i l a b l e labor market information and other
methods t o i d e n t i f y a v a i l a b l e jobs and occupations i n demand
c u r r e n t l y and i n the f u t u r e , the s k i l l requirements r e l a t i n g t o
those jobs and occupations, and the education and t r a i n i n g
services a v a i l a b l e to develop such s k i l l s . This information i s
to be used by the board to develop goals and i d e n t i f y a c t i v i t i e s
to be provided by the workforce development programs. Third, the
board i s t o review and approve budgets f o r c e r t a i n Department of
Labor-administered employment and t r a i n i n g programs and review
and provide recommendations regarding the budgets of other
programs p a r t i c i p a t i n g i n the one-stop career centers. Fourth,
the board i s to assume the policy-making functions of the PICs
under t i t l e I I of JTPA and of the Job Service Employer
Committees. However, the board may not be the a d m i n i s t r a t i v e
e n t i t y f o r programs under JTPA (as are some PICs), and may not
operate any other programs. F i f t h , the board i s to conduct
oversight of implementation of the s t r a t e g i c plan i t develops and
of the o v e r a l l performance (rather than day-to-day operations) of
programs p a r t i c i p a t i n g i n the one-stop system. F i n a l l y , the
board i s to administer the procedures f o r e s t a b l i s h i n g one-stop
career centers described below.
Section 313 describes the two options f o r e s t a b l i s h i n g onestop career centers. Section 313(a) provides that the Governor
and the c h i e f l o c a l elected o f f i c i a l or o f f i c i a l s are t o j o i n t l y
select e i t h e r a consortium option or a m u l t i p l e independent
operator option to e s t a b l i s h the centers.
Section 313(b) describes the consortium o p t i o n . Under t h i s
option, the one-stop career centers i n the OSSA are to be
administered by a consortium t h a t . c o n s i s t s of the Employment
Service, the substate grantee or grantees under t i t l e I of the
Act, the a d m i n i s t r a t i v e e n t i t y or e n t i t i e s under t i t l e I I of
JTPA, the State UI agency (unless such agency chooses not t o
p a r t i c i p a t e ) , and one or more a d d i t i o n a l partners that i s e i t h e r
a u n i t of government, a p u b l i c or p r i v a t e service provider, or a
consortium of such u n i t s and providers.
A consortium may not be designated to operate a one-stop
career center system unless i t meets c r i t e r i a described below
under the m u l t i p l e operator o p t i o n and agrees to provide f o r
customer choice by operating two or more centers, by
administering budget resources t o r e f l e c t , a t least i n p a r t , the
extent to which each center i s used by the p u b l i c , and by
p r o v i d i n g equitable'access to centers by segments of the
population w i t h i n the one-stop service area.
A consortium i s also to i d e n t i f y to the board the procedures
that would be used to i n t e g r a t e the a d m i n i s t r a t i o n of programs,
38
�such as procedures f o r c r o s s - t r a i n i n g of s t a f f , c o l l o c a t i o n of
f a c i l i t i e s , and use of common forms and practices.
The Governor and c h i e f l o c a l elected o f f i c i a l or o f f i c i a l s ,
in c o n s u l t a t i o n w i t h the workforce investment board, are to
review each consortium's performance and once every four years to
determine whether t o renew the charter.
Section 313(c) describes the m u l t i p l e independent operator
option. Under t h i s option, the board i s t o select two or more
e n t i t i e s to operate one-stop career centers pursuant to an open
s e l e c t i o n process. Any e n t i t y or consortium of e n t i t i e s may
apply t o be selected as an operator, i n c l u d i n g employment service
o f f i c e s , career center operators under t i t l e I , service d e l i v e r y
areas or a d m i n i s t r a t i v e e n t i t i e s under t i t l e I I of JTPA,
community colleges and area vocational schools, community-based,
organizations and other i n t e r e s t e d organizations.
There i s a special r u l e under t h i s s e l e c t i o n option whereby
i f the Employment Service or a consortium i n c l u d i n g the
Employment Service applies t o be selected and meets the s e l e c t i o n
c r i t e r i a , i t must be selected as an operator.
The board i s t o p u b l i s h information t o n o t i f y organizations
and i n d i v i d u a l s i n the area of: the s e l e c t i o n procedures,
i n c l u d i n g the estimated number of one-stop career centers needed
and the proposed number of operators t o be selected; the
a p p l i c a t i o n procedures; the c r i t e r i a f o r s e l e c t i o n ; and other
information the board deems r e l e v a n t . I n determining the number
of one-stop career center operators t o be selected, which i s to
be two or more (see s i n g l e operator exception below), the board
is to consider the size of the labor market, the number of
i n d i v i d u a l s l i k e l y t o use the centers', the number and
c a p a b i l i t i e s of p o t e n t i a l operators, and equitable access by
segments of the population t o the centers.
The s e l e c t i o n c r i t e r i a are t o be issued by the board,
consistent w i t h guidelines provided by the Secretary, and based
on o b j e c t i v e c r i t e r i a and measures. An applicant may not be
selected as an operator (under e i t h e r s e l e c t i o n option) unless
the applicant demonstrates t o the s a t i s f a c t i o n of the board that
i t would: operate a center t h a t would provide the s p e c i f i e d
common services; u t i l i z e automated information systems t o
exchange i n f o r m a t i o n among centers; meet performance standards;
ensure e f f e c t i v e f i s c a l and program management; administer the
process of r e f e r r i n g p a r t i c i p a n t s t o education and t r a i n i n g i n an
o b j e c t i v e and equitable manner; and provide services on a
nondiscriminatory basis.
Notwithstanding the requirement f o r two or more operators,
i f only one applicant meets the s e l e c t i o n c r i t e r i a , that
applicant may be selected as the sole career center operator i n
39
�the OSSA. This open s e l e c t i o n process, under t h i s option, i s to
be conducted once every four years.
The career centers established under e i t h e r option are to be
•issued a charter by the board that w i l l i d e n t i f y the number and
l o c a t i o n of one-stop centers i n the OSSA and the e n t i t i e s
operating the centers, provide f o r d i s p l a y of a n a t i o n a l one-stop
career center logo, and include such other conditions as the
board determines i s appropriate.
Section 313(e) contains "honest broker" provisions for onestop career center operators that concurrently provide education
and t r a i n i n g services t o t i t l e I p a r t i c i p a n t s . I f the workforce
investment board, i n an annual review, determines that such
center has engaged i n a p a t t e r n of inappropriate r e f e r r a l s t o the
education and t r a i n i n g services of the operator, the Board may
terminate the charter of the center or require the operator t o
cease p r o v i d i n g services t o p a r t i c i p a n t s as- a c o n d i t i o n for
continuing to operate the center.
Section 314 describes the services to be provided through
the one-stop career centers. Section 314(a) describes the basic
services which are t o be made a v a i l a b l e t o the p u b l i c by each
center free of charge. These twelve services are: outreach,
i n c l u d i n g e f f o r t s t o expand awareness of t r a i n i n g and placement
opportunities for limited-English p r o f i c i e n t individuals,
disadvantaged youth and a d u l t s , and i n d i v i d u a l s w i t h
d i s a b i l i t i e s ; intake and o r i e n t a t i o n t o the center; assistance i n
f i l i n g an i n i t i a l unemployment compensation claim; a p r e l i m i n a r y
assessment of s k i l l l e v e l s and service needs; l o c a l , regional and
n a t i o n a l labor market i n f o r m a t i o n , i n c l u d i n g job vacancies, l o c a l
occupations i n demand and the earnings and s k i l l requirements for
such occupations; job search assistance; job r e f e r r a l s and job
placement assistance; i n f o r m a t i o n r e l a t i n g t o job t r a i n i n g and
education programs ( i n c l u d i n g student f i n a n c i a l assistance),
i n c l u d i n g the q u a l i t y and requirements of such programs, and
appropriate r e f e r r a l s t o such programs; i n f o r m a t i o n c o l l e c t e d
pursuant t o the performance standards and customer feedback
requirements; assistance i n evaluating whether an i n d i v i d u a l i s
l i k e l y to be e l i g i b l e f o r any p a r t i c i p a t i n g programs; information
on programs and providers of dependent care and other supportive
services; and s o l i c i t i n g and accepting job orders submitted by
employers and r e f e r r i n g i n d i v i d u a l s i n accordance w i t h such
orders.
Section 314(b) describes the i n t e n s i v e services that are t o
be provided by the center i n accordance w i t h the operating
agreement and which must be made a v a i l a b l e t o t i t l e I
p a r t i c i p a n t s who are unable t o obtain employment through the
basic services. These twelve services are: comprehensive and
specialized assessments o f s k i l l l e v e l s and service needs,
i n c l u d i n g d i a g n o s t i c t e s t i n g and in-depth i n t e r v i e w i n g ; the
40
�development of i n d i v i d u a l reemployment plans i d e n t i f y i n g the
employment goal, achievement o b j e c t i v e s , and the appropriate
combination of services f o r an i n d i v i d u a l to achieve the goal;
i n d i v i d u a l i z e d counseling and career planning, i n c l u d i n g peer
counseling and counseling and planning r e l a t i n g to n o n t r a d i t i o n a l
employment o p p o r t u n i t i e s ; group counseling, including peer •
counseling, which may be a v a i l a b l e . t o i n d i v i d u a l s j o i n t l y w i t h
immediate family members, and may include counseling on stress
management and f i n a n c i a l management, and which s h a l l be a basic
service f o r p a r t i c i p a n t s i n t i t l e I under t h i s Act; case
management and p e r i o d i c review of progress toward the employment
goal; job development; out-of-area job search allowances;
r e l o c a t i o n allowances; follow-up counseling; assistance i n the
s e l e c t i o n of education and t r a i n i n g providers; 'assistance i n
obtaining income support to enable an i n d i v i d u a l to p a r t i c i p a t e
in t r a i n i n g ; and supportive services.
Section 314(c) describes s p e c i a l i z e d employer services which
may be provided. These are: customized screening and r e f e r r a l
of i n d i v i d u a l s f o r employment; customized assessment of the s k i l l
l e v e l s of current employees;, analysis of an employer's workforce
s k i l l needs; and other s p e c i a l i z e d services.
Section 314(d) authorizes the one-stop career centers to
provide such other a d d i t i o n a l services as are s p e c i f i e d i n the
operating agreement.
Section 314(e) authorizes a one-stop career center to charge
fees f o r the i n t e n s i v e services, s p e c i a l i z e d employer services,
and the a d d i t i o n a l services described above i f the board approves
the fees. However, no fees may be charged for any service an
i n d i v i d u a l i s e l i g i b l e to receive free of charge from a
p a r t i c i p a t i n g program unless there are no funds a v a i l a b l e under
the program to provide those services. A l l income received from
the fees by a p u b l i c or p r i v a t e n o n - p r o f i t center operator are to
be used to expand or enhance the services provided through the
centers.
Section 315 i d e n t i f i e s , the programs that are to p a r t i c i p a t e
in the operation of the one-stop career centers. Section 315(a)
provides that the programs that are to make basic services
a v a i l a b l e to p a r t i c i p a n t s through the one-stop centers are:
programs under t i t l e I ; programs under the Wagner-Peyser Act;
programs under t i t l e I I of JTPA; the Veterans' Employment
Service; the Senior Community Service Employment program under
t i t l e V of the Older Americans Act; and programs authorized under
Federal and State UI laws.
Of these programs, t i t l e I programs are to provide basic and
i n t e n s i v e services through one-stop centers (which are to replace
the career centers established under that t i t l e ) . The WagnerPeyser Act program i s to make applicable basic and intensive
41
�services a v a i l a b l e only through the centers. The Veterans
Employment Service i s to make applicable basic and i n t e n s i v e
services a v a i l a b l e through the centers, but may also provide such
services at other l o c a t i o n s . A l l other i d e n t i f i e d programs may
make basic services a v a i l a b l e through other l o c a t i o n s and
providers i n a d d i t i o n to making them a v a i l a b l e through the
centers. A l l i d e n t i f i e d programs may provide a d d i t i o n a l services
through the centers i n accordance w i t h the operating agreement:.
Section 315(b) provides that other human resource programs
may also provide services through the centers and become a party
agreement i f the board, the l o c a l elected o f f i c i a l or o f f i c i a l s ,
the Governor and executive o f f i c e r of other p a r t i c i p a t i n g
programs concur. These programs may include the Job
Opportunities and Basic S k i l l s (JOBS) program, the Food Stamp
Employment and Training program, the Job Corps, veterans t r a i n i n g
programs under t i t l e IV-C of JTPA, the Perkins Vocational and
Applied Technology Education Act programs, Adult Education Act
programs, Vocational R e h a b i l i t a t i o n Act programs, and programs
under the School-to-Work Opportunities Act.
Section 316 describes the operating agreements that are to
govern the a d m i n i s t r a t i o n of the one-stop career center system i n
the OSSA. The operators are to enter i n t o a w r i t t e n agreement
w i t h the board and p a r t i c i p a t i n g programs covering the operation
of the centers. The Governor and c h i e f l o c a l elected o f f i c i a l or
o f f i c i a l s must approve the agreement and are to oversee the
development of the agreement, ensure that i t meets applicable
requirements, and monitor i t s implementation.
Section 316(b) describes the contents of the agreement. I t
is to i d e n t i f y : the services to be provided by the centers and
the extent to which the p a r t i c i p a t i n g programs w i l l provide
services•through-the centers; methods f o r the r e f e r r a l of
i n d i v i d u a l s by the centers to appropriate services and programs;
the f i n a n c i a l and n o n f i n a n c i a l c o n t r i b u t i o n s to be made to the
centers by the p a r t i c i p a t i n g programs, which are to be based on
factors i n c l u d i n g the number of p a r t i c i p a n t s served by the
centers and the q u a l i t y of the services; the f i n a n c i a l l i a b i l i t y
of the respective p a r t i e s r e l a t i n g to the funds c o n t r i b u t e d by
the p a r t i c i p a t i n g programs; the f i n a n c i a l c o n t r i b u t i o n s to be
made f o r the a d m i n i s t r a t i o n of the workforce investment board by
each p a r t i c i p a t i n g program; methods of a d m i n i s t r a t i o n and
oversight; a d e s c r i p t i o n of how services are to be provided, such
as the methods f o r assessing the s k i l l s of i n d i v i d u a l s ;
procedures to ensure the u t i l i z a t i o n of a common l o c a l job bank;
procedures to be used to ensure compliance w i t h the s t a t u t o r y and
regulatory requirements of the p a r t i c i p a t i n g programs; the
duration of the agreement and procedures f o r amendment; and other
provisions the p a r t i e s deem appropriate.
�Section 316(c) requires the p a r t i e s t o the w r i t t e n agreement
(center operators, the workforce investment board, and
p a r t i c i p a t i n g programs) t o develop an annual budget f o r the onestop career centers and the workforce investment board. The
budget f o r the board i s subject t o the approval of the l o c a l
elected o f f i c i a l , and the one-stop career center budgets are
subject to the approval of both the l o c a l elected o f f i c i a l and
the Governor.
Section 317 describes the q u a l i t y assurance systems r e l a t i n g
to the performance of the centers and workforce investment
boards. Section 317(a) describes the performance standards
system. The Secretary i s t o prescribe separate performance
standards f o r the centers and boards. The standards f o r centers
are t o be based on factors the Secretary determines are
appropriate. These factors may include: placement; r e t e n t i o n
and earnings of p a r t i c i p a n t s i n unsubsidized employment; the
p r o v i s i o n of services t o hard-to-serve populations; the
a c q u i s i t i o n of s k i l l s based on s k i l l standards and the
c e r t i f i c a t i o n system established and endorsed under the Goals
2000: Educate America Act; the s a t i s f a c t i o n of p a r t i c i p a n t s w i t h
services provided and employment outcomes; the s a t i s f a c t i o n of
employers w i t h the job performance of i n d i v i d u a l s placed; and
measures of cost e f f i c i e n c y . The standards f o r workforce
investment boards are t o be based on the number of job openings
received and the p r o p o r t i o n of employers l i s t i n g such openings,
the number of job openings f i l l e d , and the o v e r a l l performance of
career centers i n the one-stop service area. The Governor' i s to
adjust the performance standards f o r centers and boards, w i t h i n
parameters established by the Secretary, based on economic,
geographic and demographic f a c t o r s i n the State and l o c a l areas
and the c h a r a c t e r i s t i c s of the population t o be served.
.The Secretary i s t o e s t a b l i s h uniform c r i t e r i a f o r
determining whether a one-stop career center or workforce
investment board f a i l s t o meet performance standards. The
Governor i s t o provide t e c h n i c a l assistance t o one-stop career
centers and boards f a i l i n g t o meet performance standards and i s
to report annually t o the Secretary on the performance of each
center and board and the t e c h n i c a l assistance t o be provided. I f
a center f a i l s t o meet the performance standards f o r two
consecutive years, the board i s t o revoke the charter of the
center.. I f the center i s operated under the consortium option,
the board i s t o select another e n t i t y t o operate the center
pursuant t o the multiple.independent operator s e l e c t i o n process.
I f the center operator was selected pursuant t o that open
s e l e c t i o n process, then another operator i s t o be selected
pursuant t o that same process.
I f a board continues t o f a i l t o
meet performance standards f o r two consecutive years, the
Governor must n o t i f y the Secretary and the board, and must
replace the members of the board, d i r e c t the board t o replace
s t a f f , d i r e c t the board t o replace the chairperson, or take other
43
�appropriate a c t i o n . The board's revocation of a charter may be
appealed by an operator t o the Governor and then t o the
Secretary. A board may s i m i l a r l y appeal any sanctions imposed bv
the Governor.
Section 317(b) describes the customer feedback process that
is to be i n place to ensure that each center i s responsive to the
needs of the i n d i v i d u a l s r e c e i v i n g services. Under t h i s
subsection, the board i s t o e s t a b l i s h methods f o r o b t a i n i n g , on a
regular basis, information from i n d i v i d u a l s and employers
receiving services through a center on the effectiveness and
q u a l i t y of the services. The feedback mechanisms may include
surveys, i n t e r v i e w s , focus groups and other techniques. The
board i s to analyze the i n f o r m a t i o n obtained and provide a
summary of the information and the analysis t o the center f o r use
in improving the q u a l i t y of services.
Section 318 provides f o r the establishment of a State Human
Resource Investment Council (HRIC) as part of the one-stop career
center system. Such councils are authorized under t i t l e V I I of
JTPA and are intended t o consolidate separate advisory e n t i t i e s
to provide the Governor w i t h a source of coordinated and
comprehensive advice r e l a t i n g t o the a d m i n i s t r a t i o n of Federal
human resource programs i n the State. Those human resource
programs include JTPA, Perkins Vocational Education, Adult
Education Act programs, JOBS, and the Food Stamp Employment and
Training programs.
Under t h i s section, the State must e s t a b l i s h a HRIC and the
HRIC i s to i d e n t i f y the human investment needs i n the State and
recommend to the Governor goals f o r meeting those needs,
recommend to the Governor goals f o r the development and
coordination of the human resource system i n the State, prepare
and recommend t o the Governor a s t r a t e g i c plan f o r accomplishing
the goals, and monitor the implementation and evaluating the
effectiveness of the plan (such plan i s an o p t i o n a l a c t i v i t y
under JTPA). I n a d d i t i o n , the HRIC i s t o advise the Governor
w i t h respect t o a l l aspects of the development and implementation
of the one-stop career center system. Such advice would r e l a t e
to assessing the labor market, economic and workforce development
needs i n the State, the designation of OSSAs, measures t o
evaluate the e f f e c t i v e n e s s of the workforce investment boards and
to f a c i l i t a t e the p r o v i s i o n of resources and t e c h n i c a l assistance
to the boards, developing a mechanism f o r waiving State s t a t u t o r y
and r e g u l a t o r y requirements that would .impede the one-stop
system, and developing a s t r a t e g y f o r c o l l e c t i n g i n f o r m a t i o n to
evaluate the e f f e c t i v e n e s s of the system and workforce investment
programs i n the State.
Part B of t i t l e I I I authorizes grants and waivers t o promote
the development and implementation of the one-stop career center
system.
44
�Section 331 authorizes planning and development grants.
Section 331(a) authorizes the Secretary t o establish a program of
competitive grants t o the States t o assist i n the planning and
development of.a comprehensive Statewide network of one-stop
career centers.
Section 331(b) provides that a State desiring a grant i s to
submit an a p p l i c a t i o n t o the Secretary at the time, i n the
manner, and containing the information specified by the
Secretary. The a p p l i c a t i o n i s , at a minimum, to include a
timetable and estimated amount of funds needed to plan and
develop the one-stop career center system i n the State and to
describe the manner i n which the Governor, l o c a l elected
o f f i c i a l s , representatives of employees and voluntary
organizations, community and business leaders, representatives of
a f f e c t e d programs and service providers w i l l work together i n the
planning and development process.
Section 331(c) authorizes the planning grant funds to be
used f o r a c t i v i t i e s i n c l u d i n g : . i d e n t i f y i n g and e s t a b l i s h i n g an
appropriate State a d m i n i s t r a t i v e s t r u c t u r e ; e s t a b l i s h i n g broadbased partnerships t o p a r t i c i p a t e i n the one-stop system;
developing plans t o e s t a b l i s h the workforce investment boards and
the State Human Resource Investment Council; developing the
process f o r s e l e c t i n g and c h a r t e r i n g centers; supporting l o c a l
planning e f f o r t s ; i n i t i a t i n g p i l o t programs t o t e s t components of
the system, such as designing common intake forms; analyzing
State and l o c a l labor markets t o assist i n the design of the
system; analyzing current s t a t u t o r y and regulatory impediments to
the establishment of the one-stop system and preparing waiver
requests; preparing the Statewide implementation plan required as
part of the a p p l i c a t i o n f o r an implementation grant; and other
related a c t i v i t i e s .
Section 332 authorizes State implementation grants. Section
332(a) authorizes the Secretary t o e s t a b l i s h a program of
competitive grants t o States t o a s s i s t i n the implementation of
the Statewide one-stop career center system.
Section 332(b) provides that any State d e s i r i n g a grant i s
to submit, w i t h the agreement of the l o c a l elected o f f i c i a l s from
the OSSAs that are scheduled t o immediately begin implementation
of the system, an a p p l i c a t i o n t o Secretary i n accordance w i t h
procedures s p e c i f i e d by the Secretary. The a p p l i c a t i o n i s , at a
minimum, t o contain: a plan f o r a comprehensive, statewide onestop career center system that includes the seven basic
components described i n p a r t A; requests, i f any, f o r waivers of
Federal s t a t u t o r y or r e g u l a t o r y requirements necessary to
implement the system; and other information s p e c i f i e d by the
Secretary.
�The comprehensive State plan i s t o : designate a f i s c a l
agent to be accountable f o r grant funds provided under t h i s
section; i d e n t i f y the OSSAs; i d e n t i f y the OSSAs that w i l l
immediately begin implementation and the implementation schedule
for the remaining OSSAs i n the State; i d e n t i f y the workforce
development programs that w i l l p a r t i c i p a t e i n the system;
i d e n t i f y the s e l e c t i o n process option that w i l l be used i n each
OSSA; describe the performance standards the State intends to
meet; describe the c o l l a b o r a t i v e procedures t o be used by the
Governor, l o c a l elected o f f i c i a l s and o f f i c i a l s administering the
p a r t i c i p a t i n g programs; describe the procedures f o r ensuring the
active involvement of a l l a f f e c t e d p a r t i e s , i n c l u d i n g employers,
educators, labor organizations, community-based organizations,
service providers, and State and l o c a l human resource agencies;
specify the manner i n which States w i l l ensure equitable
o p p o r t u n i t i e s f o r jobseekers, students and employees to receive
services from the centers; describe the way i n which e x i s t i n g
one-stop i n i t i a t i v e s , i f any, w i l l be i n t e g r a t e d i n t o the onestop system; i d e n t i f y the a d m i n i s t r a t i v e and management systems
that w i l l be used, and the resources that w i l l be used to
maintain the system a f t e r the grant funds are exhausted.
Section 332(c) s p e c i f i e s the factors which w i l l be given
special consideration i n the evaluation of the State grant
a p p l i c a t i o n . The f a c t o r s are: the extent t o which the State onestop service areas are based on labor market areas, the number of
Federal programs that w i l l p a r t i c i p a t e i n the centers, i n c l u s i o n
of JOBS and Perkins vocational education programs i n the one-stop
system, the extent t o which a State has already implemented
components of the one-stop system described i n Part A, the
p r o p o r t i o n of the State's population that would be covered by
one-stop service areas agreeing to immediate implementation, and
the extent t o which the State w i l l supplement access t o the onestop career center services through methods such as kiosks i n
shopping centers, l i b r a r i e s , community colleges and other
community organizations, and through personal telephones or
computer l i n e s .
Section 332(d) describes a p p l i c a t i o n review procedures. The
Secretary determines whether t o approve the State's plan. When
the determination i s p o s i t i v e , the Secretary f u r t h e r determines
whether t o do one or more of the f o l l o w i n g : award an
implementation grant; approve the State's request, i f applicable,
for a waiver; or inform the State of the o p p o r t u n i t y t o apply f o r
f u r t h e r development funds, unless the State i s r e c e i v i n g an
implementation grant.
Section 332(e) p r o h i b i t s the expenditure of grant funds f o r
c o n s t r u c t i o n of new b u i l d i n g s .
Section 332(f) s p e c i f i e s that implementation grants are f o r
a one-year period and are renewable f o r each of the two
46
�succeeding years i f the Secretary determines the State i s making
s a t i s f a c t o r y progress i n implementing i t s plan.
Section 333 authorizes the waiver of Federal s t a t u t o r y and
regulatory requirements that would impede implementation of the
one-stop career center system. Section 333(a) provides that a
State may, at any p o i n t during the development or implementation
of the one-stop career center system, request that the Secretary
waive s t a t u t o r y and regulatory requirements r e l a t i n g to c e r t a i n
employment and t r a i n i n g programs administered by the Secretary of
Labor.
Section 333(b) authorizes the Secretary to waive the
requirements of the s t a t u t e s and (with the concurrence of the
Director of OMB) OMB c i r c u l a r s l i s t e d i n subsection (c) and
r e l a t e d regulations i n response to a request from a State i f four
conditions are met. These conditions are t h a t : the State
submits a plan (containing information the Secretary requires)
for a comprehensive statewide one-stop career center system that
e i t h e r includes the seven basic components described i n part A
( t h i s plan may or may not be p a r t of an a p p l i c a t i o n f o r an
implementation grant) or, while not i n c l u d i n g a l l these
components, demonstrates that the one-stop system w i l l
s u b s t a n t i a l l y achieve the o b j e c t i v e s of the one-stop system; the
Secretary determines that the requirement requested to be waived
impedes the a b i l i t y of the State to implement the system; the
State waives or agrees to waive s i m i l a r provisions of State law;
and the State has provided an o p p o r t u n i t y f o r the State council
or the State Human Resource Investment Council and other
i n t e r e s t e d e n t i t i e s and i n d i v i d u a l s to comment on the proposed
waiver and included such comments w i t h the request.
The
Secretary i s to act promptly on each request and each waiver may
be approved f o r a period of up to four years. This period may be
extended i f the Secretary determines that the waiver has been
e f f e c t i v e i n a s s i s t i n g the State i n implementing the one-stop
system.
Section 333(c) i d e n t i f i e s the s i x statutes that may be
waived, which are: t i t l e I of t h i s Act, JTPA, the Wagner-Peyser
Act, t i t l e V of the Older Americans Act, t i t l e I I I of the Social
Security Act (which provides f o r UI a d m i n i s t r a t i v e grants to the
States), and chapter 41 of t i t l e 38 (veterans employment
programs).
I n a d d i t i o n , t h i s section.authorizes the Secretary to
waive OMB c i r c u l a r s A-87 ( r e l a t i n g to cost p r i n c i p l e s f o r State
and l o c a l governments), A-102 ( r e l a t i n g to grants and cooperative
agreements w i t h State and l o c a l governments), A-122 ( r e l a t i n g to
n o n - p r o f i t o r g a n i z a t i o n s ) , and the regulations at 29 CFR 97
( r e l a t i n g to uniform a d m i n i s t r a t i v e regulations f o r grants and
cooperative agreements to State and l o c a l governments).
Section 333(d) provides that the Secretary may not waive any
requirements of the s t a t u t e s i d e n t i f i e d above that r e l a t e t o :
47
�the basic purposes or goals of the a f f e c t e d programs; maintenance
of e f f o r t ; the formula a l l o c a t i o n of funds; the e l i g i b i l i t y of
i n d i v i d u a l s ; p u b l i c health or safety, labor standards, c i v i l
r i g h t s , occupational safety and health or environmental
p r o t e c t i o n ; or p r o h i b i t i o n s or r e s t r i c t i o n s r e l a t i n g to the
construction of b u i l d i n g s or f a c i l i t i e s .
Section 333(e) provides that the Secretary i s to
p e r i o d i c a l l y review the performance of the States that have been
granted waivers and i s to terminate a waiver i f the State's
performance i s inadequate or the State has f a i l e d to waive
s i m i l a r requirements of State law.
Section 333(f) provides that i f there i s s u f f i c i e n t
information from waiver requests to i d e n t i f y provisions of the
c i r c u l a r s or r e l a t e d r e g u l a t i o n s that c o n s i s t e n t l y impede
implementation of a one-stop system, the Secretary i s to submit a
plan to OMB to grant a general waiver f o r one-stop areas. The
Director of OMB may approve the plan and authorize the Secretary
to grant these general waivers i f the Director determines the
plan would not jeopardize the i n t e g r i t y of Federal funds and
would be consistent w i t h the o b j e c t i v e s of t i t l e I I I .
Section 334 authorizes the pooling of a d m i n i s t r a t i v e
resources. During the implementation of a one-stop system, a
State may, at any p o i n t , on behalf of one or more one-stop
service areas, submit to the Secretary a plan f o r the pooling of
a d m i n i s t r a t i v e funds a v a i l a b l e under two or more of the mandatory
p a r t i c i p a t i n g programs. Under the State plan, each p a r t i c i p a t i n g
program may t r a n s f e r a d m i n i s t r a t i v e funds to the one-stop system
and a l l o c a t e the t r a n s f e r r e d amount to a d m i n i s t r a t i v e costs at
the time of t r a n s f e r . No f u r t h e r a l l o c a t i o n of the t r a n s f e r r e d
funds would have to be made to the p a r t i c u l a r program.
A d m i n i s t r a t i v e funds so t r a n s f e r r e d must be spent only f o r the
a d m i n i s t r a t i o n of allowable a c t i v i t i e s under the one-stop career
center system.
Notwithstanding section 31 U.S.C. 1301, which requires a l l
funds to be a l l o c a t e d to the source of t h e i r a p p r o p r i a t i o n , or
other provisions of law, the Secretary may approve a State
pooling plan i f the Secretary determines the plan would not
jeopardize the a d m i n i s t r a t i o n of the p a r t i c i p a t i n g programs and
would f a c i l i t a t e implementation of the one-stop system. Where
pooling plans are approved, the Secretary i s required to
r e g u l a r l y review the performance of the applicable one-stop
service areas and t o rescind the approval i f the Secretary
determines the area's performance does not adequately j u s t i f y
c o n t i n u a t i o n of the plan or there has been a s i g n i f i c a n t adverse
e f f e c t on the p a r t i c i p a t i n g programs.
Section 334(c) provides t h a t , upon approval of the Governor,
real property purchased pursuant to UI a d m i n i s t r a t i v e grants, the
48
�Reed Act, or the Wagner-Peyser Act before the e f f e c t i v e date of
t h i s Act may be used f o r the one-stop career center. Under
current law, such property may only be used f o r UI or ES
programs, depending on the source of funds, and, i f such property
is to be used f o r any other purposes, i t must be sold. This
change w i l l f a c i l i t a t e c o l l o c a t i o n and an e f f e c t i v e one-stop
s e t t i n g . Except i f otherwise provided i n a pooling arrangement,
there are c e r t a i n l i m i t a t i o n s included on the future use of such
funds to pay f o r property used by the one-stop center i n order to
protect the i n t e g r i t y of such funds.
Part C includes a d d i t i o n a l a c t i v i t i e s which support one-stop
career center systems.
Section 351 provides f o r the development of a customer
service compact. The Secretary i s to e s t a b l i s h w i t h i n each onestop s t a t e a process, which includes an annual meeting, i n v o l v i n g
a l l p a r t i e s who administer the one-stop system—the Secretary,
Governor, each workforce investment board, and each one-stop
career c e n t e r — t o reach an informal agreement among the p a r t i e s .
The agreement i s to r e l a t e to the shared goals and values that
w i l l govern a d m i n i s t r a t i o n of the system, the roles and
r e s p o n s i b i l i t i e s of each party i n t a i l o r i n g and strengthening
p a r t i c i p a n t services, methods to ensure that p a r t i c i p a n t
s a t i s f a c t i o n w i t h services i s a primary consideration i n
a d m i n i s t r a t i o n of the one-stop system, and other appropriate
matters.
Section 352 s p e c i f i e s a d d i t i o n a l State r e s p o n s i b i l i t i e s f o r
States implementing a one-stop career center system. These
include developing and operating a d m i n i s t r a t i v e and management
systems that promote the e f f e c t i v e operation of the system;
monitoring compliance of the workforce investment boards with the
requirements of t h i s t i t l e ; and p r o v i d i n g any necessary technical
assistance to workforce investment boards.
Section 353 defines a d d i t i o n a l Federal r e s p o n s i b i l i t i e s .
The Secretary i s authorized to monitor a l l r e c i p i e n t s of funds
under the t i t l e f o r compliance w i t h the t i t l e ' s provisions.
The Secretary i s required to provide s t a f f t r a i n i n g and technical
assistance to improve the capacity of the f u l l range of public
and p r i v a t e partners i n the one-stop system to develop and
implement the system, and to i n t e g r a t e the c a p a c i t y - b u i l d i n g
a c t i v i t i e s w i t h the Information Disselnination Network established
under section 453 of the Job Training Partnership Act. In
a d d i t i o n , the Secretary i s to develop a n a t i o n a l logo and name
for one-stop career centers as part of a nationwide workforce
s e c u r i t y system, so that i n d i v i d u a l s w i l l r e a d i l y be able to
recognize and access one-stop career centers wherever they are
located. F i n a l l y , the Secretary i s to provide f o r evaluation of
the programs under t h i s t i t l e , i n c l u d i n g t h e i r cost-effectiveness
i n achieving the intended purposes. The evaluations must use
49
�recognized s t a t i s t i c a l methods and techniques of the behavior and
s o c i a l sciences, i n c l u d i n g methods that c o n t r o l f o r s e l f
s e l e c t i o n , where f e a s i b l e , and may include analyses of the costs
and b e n e f i t s of programs, p a r t i c i p a n t and community impacts, and
the extent to which needs of various demographic groups are met,
and the effectiveness of the various d e l i v e r y systems.
Part D provides f o r the e f f e c t i v e date of t h i s t i t l e .
Section 371 provides that the t i t l e i s to take e f f e c t on July I ,
1995, except performance standards, which take e f f e c t July f,
1996.
T i t l e IV establishes a National Labor Market Information
System that b u i l d s upon and strengthens e x i s t i n g c a p a b i l i t i e s at
the Federal, State and l o c a l l e v e l s .
Section 401 states t h a t i t i s the purpose of the t i t l e to
provide f o r the development of a labor market information system
that w i l l provide locally-based, accurate, up-to-date, e a s i l y
a c c e s s i b l e , . u s e r - f r i e n d l y labor.market information, i n c l u d i n g
comprehensive i n f o r m a t i o n on job opening's, labor supply,
occupational trends, wage rates and trends, s k i l l requirements,
and performance of programs p r o v i d i n g r e q u i s i t e s k i l l s , and labor
market data necessary f o r the e f f e c t i v e a l l o c a t i o n of resources.
Section 402 requires the Secretary t o develop, i n
coordination w i t h other Federal, State and l o c a l e n t i t i e s , a
strategy to e s t a b l i s h a n a t i o n a l labor market i n f o r m a t i o n system.
This strategy must be designed t o f u l f i l l the labor market
information requirements of other s p e c i f i e d Federal programs. I n
implementing the strategy, the Secretary i s authorized.to expend
funds authorized under t h i s t i t l e and funds otherwise a v a i l a b l e
for such purposes, and t o enter i n t o ' intergovernmental
cooperative agreements, award grants, and f o s t e r the c r e a t i o n of
p u b l i c - p r i v a t e partnerships. The Secretary i s also authorized to
conduct research and demonstration p r o j e c t s .
Section 403 contains the components of the n a t i o n a l labor
market i n f o r m a t i o n system. Section 403(a) s p e c i f i e s that the
Secretary, i n cooperation w i t h Federal, State and l o c a l e n t i t i e s ,
and p u b l i c - p r i v a t e partnerships, i s t o develop a n a t i o n a l labor
market i n f o r m a t i o n system t h a t makes a v a i l a b l e the f o l l o w i n g
information: i n f o r m a t i o n on the l o c a l economy, automated
l i s t i n g s of job openings and j o b candidates, growth and
replacement need p r o j e c t i o n s , current supply of labor w i t h
s p e c i f i c occupational s k i l l s and experience, automated screening
systems t o determine candidate e l i g i b i l i t y f o r services, consumer
reports on l o c a l education and t r a i n i n g providers, r e s u l t s of
customer s a t i s f a c t i o n measures f o r Career Centers, One-Stop
Career Centers and other providers; n a t i o n a l , State and substate
p r o f i l e s of i n d u s t r i e s , and automated occupational and career
information and e x p l o r a t i o n systems.
50
�Section 403(b)
t e c h n i c a l standards
information between
i n c l u d i n g standards
requires the Secretary to promulgate
necessary t o promote e f f i c i e n t exchange of
the l o c a l , State and national levels,to ensure that data are comparable.
Section 403(c) requires the Secretary, i n c o n s u l t a t i o n w i t h
the Secretary of Education, other Federal agencies and State and
l o c a l governments, t o set standards f o r consumer reports, and
create a mechanism f o r c o l l e c t i o n and dissemination of the
reports.
Section 403(d) requires the Secretary t o provide for the
evaluation of n a t i o n a l labor market information procedures,
products and services, i n c l u d i n g cost-effectiveness and the l e v e l
of customer s a t i s f a c t i o n . The evaluations may include analyses
of the p r e c i s i o n of estimates produced or c o l l e c t e d , examination
of the uses of the data, appropriateness of the uses, and
r e l a t i v e data c o s t s / b e n e f i t s .
Section 404 requires the Secretary t o coordinate the
a c t i v i t i e s of Federal agencies responsible-for the c o l l e c t i o n and
dissemination of labor market information, and t o ensure the
appropriate dissemination of information that promotes
improvement i n the q u a l i t y of labor market information.
Section 405 s p e c i f i e s t h a t t i t l e IV w i l l take e f f e c t on July
1, 1995.
T i t l e V amends t i t l e I I of the Job Training Partnership Act
to e s t a b l i s h a new part D, "Reinvention Labs", p e r m i t t i n g the
Secretary t o waive Federal s t a t u t o r y or regulatory requirements
r e l a t i n g t o programs f o r the economically disadvantaged youth and
adults i n order t o promote program innovations.
Section 501 adds the new Part D t o t i t l e I I of JTPA. The
new section 281 of p a r t D states t h a t the purpose of the part i s
to encourage innovative program designs t o enhance the p r o v i s i o n
of services t o and outcomes f o r economically disadvantaged youth
and adults, t o develop knowledge r e l a t i n g t o e f f e c t i v e approaches
to serving these groups, and t o give service d e l i v e r y areas
(SDAs) greater f l e x i b i l i t y i n operating t h e i r programs i n
exchange f o r higher l e v e l s of a c c o u n t a b i l i t y f o r r e s u l t s .
The new section 282 describes the process f o r applying f o r a
waiver. Any SDA or consortium of SDAs that desires a waiver of
s t a t u t o r y or r e g u l a t o r y requirements r e l a t i n g t o parts A, B, or C
of t i t l e I I of JTPA must submit an a p p l i c a t i o n t o the Secretary
that includes a plan t h a t incorporates innovative a d m i n i s t r a t i v e ,
service d e l i v e r y , or other program design components, measurable
goals and outcomes t o be achieved, the s t a t u t o r y and regulatory
requirements t o be waived and the r a t i o n a l e , assurances that the
SDA and State w i l l p a r t i c i p a t e i n a rigorous evaluation t o
51
�determine whether the goals and outcomes have been achieved, and
other components and i n f o r m a t i o n the Secretary determines are
appropriate.
The new section 283 authorizes the Secretary to waive
s t a t u t o r y or r e g u l a t o r y requirements i f the Secretary determines
they would impede-the SDA i n carrying out i t s plan, the SDA and
State have provided i n t e r e s t e d e n t i t i e s and i n d i v i d u a l s an
opportunity f o r comment and have submitted such comments to the
Secretary, and the Secretary has approved the plan. The waivers
may not a l t e r the purposes or goals of the a f f e c t e d program; the
formula a l l o c a t i o n of funds under the program; e l i g i b i l i t y
requirements; any law respecting p u b l i c health or safety, labor
standards, c i v i l r i g h t s , occupational safety or h e a l t h , or
environmental p r o t e c t i o n ; or p r o h i b i t i o n s or r e s t r i c t i o n s
r e l a t i n g to c o n s t r u c t i o n of b u i l d i n g s or f a c i l i t i e s .
The
Secretary i s l i m i t e d to approving 75 a p p l i c a t i o n s nationwide, ana
each waiver i s l i m i t e d to 2 years, except that the Secretary may
extend the period of the waiver i f i t i s determined the waiver
has been e f f e c t i v e i n enabling the SDA to carry out the purposes
of JTPA (but i n no case may waivers remain i n e f f e c t a f t e r a date
that i s 4 years a f t e r enactment of the Reemployment A c t ) . The
Secretary must p e r i o d i c a l l y review the performance of SDAs
receiving waivers, and must terminate the waiver i f the
performance of the SDA i s inadequate to j u s t i f y the waiver's
continuation.
The new section 284 authorizes the Secretary to provide
technical assistance i n the development and implementation of the
programs and requires the Secretary to conduct an evaluation of
the program. The Secretary i s t o submit a report r e l a t i n g to the
evaluation to the Congress not l a t e r than 5 years a f t e r enactment
of t h i s Act.
Section 502 makes a t e c h n i c a l amendment to section
141(d)(3)(B) of JTPA to add postsecondary vocational i n s t i t u t i o n s
to the l i s t of other postsecondary i n s t i t u t i o n s that are exempt
from breaking down costs f o r purposes of the JTPA program.
Section 503 provides t h a t the Reinvention Lab provisions are
to take e f f e c t on the date of enactment and to terminate 5 years
t h e r e a f t e r . The t e c h n i c a l amendment to the t u i t i o n d e f i n i t i o n
would take e f f e c t on the date of enactment.
52
�COMPARISON CHART
CURRENT SYSTEM AND PRESIDENT'S PROPOSED REEMPLOYMENT ACT
1 ISSUE
CURRENT SYSTEM
PRESIDENT'S REEMPLOYMENT ACT
Business role in governance
"Private industry"
representation on PICs
not necessarily business
leaders
Highest-level business representatives required to
serve on Workforce Investment Board
Women and minorities
Women and minorities
disproportionately
affected by dislocation
Significant increase in funding for dislocated
workers, and therefore significantly more money
for women and minorities
•
More funding for supportive services like
transportation and childcare
Workforce investment oversight
No opportunities for
Virtually no access to
strategic planning; PICs
supportive services
focus on administrative
details
Workforce Investment Boards required to perform
strategic, oversight function for community
Job retention
No services for those at
risk of dislocation
Skills upgrading available for job retention
Displaced homemakers
No services to displaced
homemakers required;
disincentives to provide
Displaced homemakers have access to basic services
April 15, 19«»4
|
�COMPARISON CHART
CURRENT SYSTEM AND PRESIDENT'S PROPOSED REEMPLOYMENT ACT
1 ISSUE
CURRENT SYSTEM
PRESIDENT'S REEMPLOYMENT ACT
1 Role of community colleges
Often left out of
opportunities to
provide education and
training
Customers can choose from among all area
"qualified providers"
"One-stop career centers" and career centers
1 "One-stop" networks
Skilled workforce
Labor Market Information
•
•
Customers often have
to go all over the place
to get information and
services
Career centers offer information and services to
dislocated worker in one place; ultimately, all jobseekers can go to one-stop career centers
Numerous obstacles to
setting up one-stops
Encourages building of one-stop networks, with
implementation grants and waivers
Employers can have a
hard time identifying
and locating skilled
workers
Longer-term training yields larger pool of skilled
workers
Employers, job-seekers,
training providers,
others lack access to
good career and
occupational
information
Employers, job-seekers, training providers
(including community colleges) have easy access to
up-to-date occupational and job information
No nationwide LMI
system
Nationwide Labor Market Information system
Good LMI helps identify skills needed and sources
of skilled workers
A
-t
« r
4 nn 4
|
�COMPARISON CHART
CURRENT SYSTEM AND PRESIDENT'S PROPOSED REEMPLOYMENT ACT
CURRENT SYSTEM
PRESIDENT'S REEMPLOYMENT ACT
Puts focus on
unemployment assumes worker will get
old job back and just
needs income to get by
until old job comes
back
Puts focus on reemployment - what does
customer need to get new job?
Longer-term training
No income support for
longer-term training
(except for tradeaffected workers)
"Reemployment insurance" - financial support
during longer-term training
Capacity to serve
Serves only a fraction
of dislocated workers
When fully implemented, will serve all dislocated
workers
Accountability
Limited information on
outcomes
"Consumer reports" available, with information
such as graduation and placement rates and hourly
wages
Customer choice
Participants given
limited information and
choice
Customers have information and can choose from
among all qualified providers
Consolidation
Six different programs
for dislocated workers,
all with different
eligibility standards
Comprehensive reemployment system - one
program and set of standards for dislocated
workers
| ISSUE
r~
1
—'
"Unemployment" versus "reemployment"
1
Ar»ri! 15- 19<td
�3/14/94
REEMPLOYMENT ACT
FINANCING FACT SHEET
What i s t h e P r e s i d e n t ' s Proposal?
o
D i s l o c a t e d worker a s s i s t a n c e w i l l be provided t h r o u g h a new
comprehensive d i s l o c a t e d worker p r o g r a m — t h e Reemployment Act.
The
proposal—which w i l l
b e g i n changing
the current
unemployment system t o a reemployment s y s t e m — c r e a t e one
u n i v e r s a l system t o s e r v e a l l d i s l o c a t e d workers r e g a r d l e s s o f
the cause o f d i s l o c a t i o n .
o
REA w i l l c o n s o l i d a t e s i x e x i s t i n g programs s e r v i n g d i s l o c a t e d
workers:
Economic D i s l o c a t i o n and Worker Adjustment A s s i s t a n c e Act
(EDWAA)
Trade Adjustment A s s i s t a n c e (TAA)
NAFTA " b r i d g e "
Clean A i r Employment T r a n s i t i o n program (CAET)
Defense Conversion A c t (DCA)
Defense D i v e r s i f i c a t i o n Program (DDP)
o
T h i s comprehensive system w i l l ensure t h a t a l l d i s l o c a t e d
workers have easy access t o a broad a r r a y o f i n f o r m a t i o n ,
t r a n s i t i o n a s s i s t a n c e , and o p p o r t u n i t i e s f o r r e t r a i n i n g and
s k i l l development.
The t r a i n i n g they r e c e i v e i s c l o s e l y
geared t o t h e s k i l l s demanded by t h e workplace, w h i l e a t t h e
same t i m e , i t w i l l enhance employers' e f f o r t s t o f i n d h i g h q u a l i t y workers.
o
A l l d i s l o c a t e d workers w i l l be able t o r e c e i v e basic
reemployment s e r v i c e s , i n c l u d i n g i n f o r m a t i o n on j o b openings,
l a b o r market t r e n d s , and t h e performance o f e d u c a t i o n and
training
providers,
referral
t o appropriate
programs,
assessment,
j o b c o u n s e l i n g , and j o b search a s s i s t a n c e .
D i s l o c a t e d workers w i l l
have access t o more i n t e n s i v e
e d u c a t i o n and t r a i n i n g s e r v i c e s , and a m a j o r i t y o f these w i l l
have access t o t h e income support t h a t they need t o complete
long-term t r a i n i n g and t o s t a r t new c a r e e r s .
o
Automated
worker p r o f i l i n g
will
be used
to identify
s t r u c t u r a l l y unemployed workers a t t h e time they f i l e f o r UI
benefits.
T h i s w i l l f o s t e r s t r o n g e r t i e s between t h e UI
system and t h e p r o v i s i o n o f s e r v i c e s f o r d i s l o c a t e d workers,
t a r g e t i n g t h e e x t r a adjustment s e r v i c e s needed t o speed
reemployment.
o
Career Centers w i l l p r o v i d e a singe p o i n t o f e n t r y f o r
permanently l a i d - o f f workers t o r e c e i v e j o b assistance
s e r v i c e s , e l i g i b i l i t y i n f o r m a t i o n , and access t o t r a i n i n g .
Centers may a l s o p r o v i d e s e r v i c e s t o employers t o i d e n t i f y
l o c a l t r a i n i n g and employment needs.
�How
i s t h e Program Paid For?
o
The FY 1995 t o t a l investment f o r t h e Reemployment Act i s $1.5
billion.
By FY 2000 when i t i s f u l l y implemented, the annual
i n v e s t m e n t w i l l be about $3.4 b i l l i o n .
Since we c u r r e n t l y
spend $1.5 b i l l i o n on programs f o r d i s l o c a t e d workers, only
about h a l f o f t h i s r e p r e s e n t s a n e t increase. For the f i v e
year p e r i o d , t h e new program ( i n c l u d i n g One-Stop) c o s t s $13.1
b i l l i o n ; however, o n l y $5 .S b i l l i o n o f t h i s r e p r e s e n t s a net
JL
increase.
>
o
The f i v e s m a l l e r programs t h a t are merged cost between $300$450 m i l l i o n a year.
These funds are d i s c o n t i n u e d w i t h the
new program.
_o
I n FY 1995, t h e funds requested f o r t h i s i n i t i a t i v e are a l l i n
the d i s c r e t i o n a r y account.
I n o r d e r t o make room f o r t h i s
major f u n d i n g i n c r e a s e , the P r e s i d e n t made r e d u c t i o n s i n other
F e d e r a l programs t h a t are of a lower p r i o r i t y . Not o n l y d i d
he make these hard choices and c l e a r l y s e t f o r t h ' h i s
- p r i o r i t i e s i n t h e FY 1995 budget, the 5-year P r e s i d e n t ' s
budget a l s o makes room w i t h i n t h e budget caps f o r the 5-year
expansion p l a n by making f u r t h e r c u t s i n lower p r i o r i t y
programs i n t h e o u t y e a r s . Thus, he has' budgeted w i t h i n the
ever-tightening
spending
caps
for this
high
priority
initiative.
o
Beginning i n FY 1996, a s m a l l p o r t i o n of the program ( f o r
income s u p p o r t through t h e e x i s t i n g UI system) w i l l be funded
on t h e mandatory s i d e .
I n t o t a l over the 5 years,
$2.0
b i l l i o n o f mandatory spending w i l l be r e q u i r e d . I t i s capped
a t t h i s amount i n the l e g i s l a t i o n .
There can be no run away
costs.
o
T h i s mandatory spending
r e p l a c e s t h e c u r r e n t uncapped
e n t i t l e m e n t f o r TAA and NAFTA-bridge w i t h capped mandatory
spending. From FY 1995-99, t h e mandatory costs f o r REA are $2
b i l l i o n — c o m p a r e d t o $1 b i l l i o n f o r t h e two e x i s t i n g program;
t h e r e f o r e , o n l y h a l f of i t i s a net i n c r e a s e — $ 1 b i l l i o n over
5 years.
o
The b i l l c o n t a i n s o f f s e t s t o
costs.
(See l a s t s e c t i o n . )
How
fully
pay
f o r the
mandatory
Does t h e Income Support Operate?
o
The REA proposes income support f o r workers engaged i n longterm r e t r a i n i n g who have exhausted unemployment insurance
benefits.
o
A person can o n l y r e c e i v e income s u p p o r t i f he/she e n r o l l s in
t r a i n i n g e a r l y d u r i n g a s p e l l of unemployment (by 16th week),
�i f t h e y have exhausted t h e i r UI b e n e f i t s , i f t h e y need
t r a i n i n g i n o r d e r t o get a new
job, and
i f t h e y are
s u c c e s s f u l l y p a r t i c i p a t i n g i n the t r a i n i n g program.
o
Maximum d u r a t i o n o f income support ( i n c l u d i n g UI) i s l i m i t e d
t o 1 1/2 years ( w i t h s h o r t e r d u r a t i o n f o r workers w i t h less
t e n u r e ) . The l e n g t h of income support i s a l s o l i m i t e d by the
p e r i o d of t r a i n i n g .
o
Only a s m a l l p o r t i o n o f t h e d i s l o c a t e d workers p r o j e c t e d t o be
served (1.3 m i l l i o n ) when f u l l y implemented w i l l need and be
q u a l i f i e d f o r income s u p p o r t t o p a r t i c i p a t e i n t r a i n i n g —
a p p r o x i m a t e l y 17 p e r c e n t o r 222,000 workers. The m a j o r i t y of
d i s l o c a t e d workers o n l y need help i n f i n d i n g t h e next j o b
r a t h e r than r e t r a i n i n g .
o
I n i t i a l l y (from FY 1996-99), mandatory income s u p p o r t i s only
a v a i l a b l e f o r workers w i t h more than 3 years t e n u r e i n the
job.
Workers w i t h 1-3 years tenure w i l l r e c e i v e more l i m i t e d
income s u p p o r t and t h r o u g h d i s c r e t i o n a r y spending.
Beginning
i n FY 2000 when f u l l implementation i s reached and a d e d i c a t e d
f u n d i n g source i s f u l l y a v a i l a b l e , the b i l l c a l l s f o r a l l
income s u p p o r t t o be p a i d f o r on the mandatory s i d e .
o
I f t h e demand f o r payments exceed the funds a v a i l a b l e i n the
caps, t h e r e i s no e n t i t l e m e n t t o the i n d i v i d u a l t h a t must be
met ( i t i s c o n d i t i o n e d on fund a v a i l a b i l i t y ) .
I t w i l l be a
f i r s t c o m e / f i r s t serve b a s i s .
o
The mandatory spending i s capped a t s p e c i f i c amounts i n the
law.
The amounts s p e c i f i e d are based on t h e Department's
c u r r e n t e s t i m a t e s of demand f o r these payments.
o
When f u l l y implemented, o n l y approximately 30 p e r c e n t o f the
comprehensive d i s l o c a t e d program costs (those r e l a t i n g t o
income s u p p o r t ) w i l l be mandatory.
Why
I s Income Support Provided Through The UI Program?
o
The reemployment income support w i l l be p r o v i d e d t h r o u g h the
UI system.
From the customer's p e r s p e c t i v e , i f t h e y are i n
approved l o n g - t e r m t r a i n i n g and meet a l l t h e r e q u i r e m e n t s ,
t h e y w i l l q u a l i f y f o r an e x t e n s i o n o f t h e i r UI b e n e f i t s w h i l e
i n t r a i n i n g — a t t h e same amount.
o
T h i s program design r e f l e c t s the A d m i n i s t r a t i o n ' s commitment
t o change t h e c u r r e n t unemployment system t o a reemployment
system. I t was i m p o r t a n t t o t h i s goal t h a t t h e income support
needed f o r t h e r e t r a i n i n g program be p a r t o f t h e UI system
r a t h e r t h a n a stand alone program o u t s i d e o f t h e e x i s t i n g UI
system.
�o
UI i s an insurance program, i n which employers pay the costs
of insuring workers against involuntary wage loss.
The
payments are provided through a dedicated tax. The insurance
provides temporary income support, usually while workers
search f o r new jobs. UI i s not an entitlement program i n the
sense of many of the other Federal entitlement programs, such
as Veterans b e n e f i t s or AFDC.
o
The new income support f o r t r a i n i n g i s not a new e n t i t l e m e n t
p r o g r a m — i t i s a recognition that the e x i s t i n g Unemployment
Insurance program should deal with s t r u c t u r a l unemployment
problems t h a t characterize an increasing share of j o b loss.
o
I n the recent
recession
the Emergency Unemployment
Compensation (EUC) program was c a l l e d upon t o deal w i t h the
problems of the s t r u c t u r a l l y unemployed, as w e l l the c y c l i c a l
problems which i s the normal task of an extended benefit
program. This program was prolonged beyond the needs of a
c y c l i c a l unemployment program because of continued high levels
of long term unemployment and of worker d i s l o c a t i o n that
accompanied and lingered a f t e r the downturn had ended.
o
Over the past 2 1/2 years, the EUC program (which expired
February 5, 1994) cost taxpayers $28 b i l l i o n — h a l f of that
paid f o r by employers.
I n i t s use as a dislocated worker
income support program, i t became an extremely c o s t l y and
untargeted way t o address the changing nature of unemployment.
o
Reforming the unemployment system t o target on i n d i v i d u a l s who
need income support while i n t r a i n i n g should prevent the need
f o r future expansions of c y c l i c a l unemployment programs t o
deal with s t r u c t u r a l unemployment problems.
o
There are s i g n i f i c a n t savings over the long-run t o both the
Federal government and t o employers from t h i s proposal. I t i s
t r u l y investing t o save.
How and Why i s the FUTA .2% Surtax Being Used f o r Reemployment
Income Support?
o
Permanent features of the UI program have always been financed
by UI p a y r o l l t a x e s — t h e core design of t h i s insurance program
i s based on t h i s dedicated tax.
o
The FUTA tax i s very small--only $56 a year per worker--onlv
$14 a year i s a t t r i b u t e d t o the .2% surtax. This i s a very
small price f o r the benefits that w i l l accrue t o the employers
from t h i s investment.
o
There i s no a d d i t i o n a l tax on e m p l o y e r s — i t simply takes money
t h a t i s b u i l d i n g up i n the FUTA account from the .2 percent
surtax and s h i f t s i t t o a new account dedicated exclusively
�for
t h i s purpose.
The amount t o be t r a n s f e r r e d t o t h i s
account i s capped i n two w a y s — d u r i n g FY 1996-2000, i t i s
capped a t s p e c i f i c d o l l a r amounts i n the b i l l . A f t e r FY 2000,
i t i s capped a t t h e amount c o l l e c t e d from the FUTA .2% s u r t a x .
o
Since these funds e x i s t i n t h e T r u s t Fund, i t i s a d i r e c t
appropriation.
T h i s means i t i s n o t p a r t o f t h e annual
a p p r o p r i a t i o n s process; t h e r e f o r e , t h e r e i s no o p p o r t u n i t y t o
breach t h e cap through an a p p r o p r i a t i o n s b i l l .
o
The o n l y way t h e income support caps could be exceeded i s i f
a u t h o r i z i n g l e g i s l a t i o n were enacted which would r e q u i r e an
o f f s e t - under t h e PAYGO r u l e s t o cover any expansion o f t h e
caps.
o
The FUTA .2% s u r t a x was p u t i n p l a c e i n 1977. I t has been
extended f o u r times s i n c e t h e n and i s c u r r e n t l y extended
through 1998. Since 1987, t h i s s u r t a x has been used f o r o t h e r
purposes and t h e BEA budget r u l e s almost guarantee t h a t i t
w i l l c o n t i n u e t o be extended each t i m e i t e x p i r e s .
o
Although t h e FUTA .2% s u r t a x i s n o t needed f o r solvency o f t h e
Federal Accounts i n t h e UTF, t h e t a x i s n o t l i k e l y t o be
allowed t o e x p i r e . The REA p r o p o s a l recognizes t h i s r e a l i t y
and proposes a way i n which employers can see t h e i r taxes used
for
t h e intended p u r p o s e — t o
p r o v i d e income support f o r
unemployed workers.
o
There a r e p l e n t y o f funds i n t h e Federal Accounts i n t h e
Unemployment T r u s t Fund t o s u p p o r t t h i s i n i t i a t i v e w i t h no
a d d i t i o n a l taxes.
I n FY 2000, w i t h t h i s program i n f u l l
e f f e c t , t h e r e w i l l be a balance i n t h e Federal Accounts o f
over $20 b i l l i o n .
o
The Unemployment T r u s t Fund, l i k e a l l o t h e r T r u s t Funds
(except S o c i a l S e c u r i t y ) i s p a r t o f t h e u n i f i e d budget, which
does n o t exclude those funds based on d e d i c a t e d
taxes
generated f o r a s p e c i f i c a c t i v i t y .
The UTF i s unique among
a l l T r u s t Funds on t h e u n i f i e d b u d g e t — i t i s t h e o n l y program
i n which S t a t e T r u s t F u n d s — b o t h taxes c o l l e c t e d by t h e States
to f i n a n c e S t a t e unemployment b e n e f i t s , as w e l l as the payment
of those S t a t e b e n e f i t s — a r e i n c l u d e d i n t h e u n i f i e d budget.
Thus, any change i n Federal UI law t h a t i s p a i d f o r
e x c l u s i v e l y by S t a t e T r u s t Funds must be o f f s e t by c u t s i n
o t h e r Federal programs, r e g a r d l e s s o f t h e l e v e l o f State
accounts.
o
I f t h e UTF were n o t i n t h e u n i f i e d budget, t h i s expansion of
t h e UI program c o u l d be e a s i l y p a i d f o r w i t h funds b u i l t up i n
t h e T r u s t Fund.
However, t h e BEA ignores t h e concept of
d e d i c a t e d taxes and r e q u i r e s any expansion o f b e n e f i t s t o be
p a i d f o r a t t h e time t h a t l e g i s l a t i o n i s enacted.
�o
Employers have a r e s p o n s i b i l i t y t o workers, and s i n c e t h e
1930s, have p a i d b o t h S t a t e and Federal taxes t o s u p p o r t t h e
Unemployment Insurance system.
Employers d i r e c t l y b e n e f i t
from b e t t e r - t r a i n e d workers and b e t t e r - f u n c t i o n i n g l a b o r
markets, which i s an o v e r a l l g o a l o f the REA.
o
Employers a l s o b e n e f i t from opening o f markets.
Support f o r
worker r e t r a i n i n g t o p r e v e n t p o t e n t i a l a d v e r s e l y a f f e c t e d
workers from b l o c k i n g economic change i s a s m a l l p r i c e f o r
employers t o pay f o r t h e b e n e f i t s o f f r e e t r a d e .
What Are the O f f s e t s For F i n a n c i n g the REA Mandatory Costs?
o
T o t a l c o s t s f o r capped mandatory income s u p p o r t under t h e
proposed REA a r e p r o j e c t e d a t $1,980 m i l l i o n d u r i n g t h e FY
1995-99 t r a n s i t i o n p e r i o d .
o
To o f f s e t these mandatory c o s t s , o f f s e t s t o t a l l y $1,982
m i l l i o n have been i d e n t i f i e d , i n c l u d i n g $967 m i l l i o n from the
c o n s o l i d a t i o n o f t h e TAA and NAFTA Bridge, programs i n t o t h e
new comprehensive program, $914 m i l l i o n from t h e permanent
e x t e n s i o n o f t h e 0.2% FUTA s u r t a x beginning i n January 1999,
and $101 m i l l i o n from i n s t i t u t i n g v o l u n t a r y income t a x
w i t h h o l d i n g f o r UI c l a i m a n t s .
o
On a 5-year b a s i s , t h e proposal meets t h e Budget A c t PAYGO
(pay-as-you-go) requirements ( a l t h o u g h not on a year t o year
basis).
TAA/NAFTA Bridge Programs:
o
Beginning J u l y 1, 1995, o n l y those t r a d e - i m p a c t e d workers who
a l r e a d y a r e r e c e i v i n g a s s i s t a n c e under t h e Trade Adjustment
A s s i s t a n c e (TAA) o r the NAFTA Bridge programs w i l l c o n t i n u e t o
r e c e i v e t h e balance o f such a s s i s t a n c e under these programs.
o
A l l o t h e r t r a d e - i m p a c t e d workers w i l l
be e l i g i b l e f o r
r e a d j u s t m e n t a s s i s t a n c e s e r v i c e s under t h e REA, i n c l u d i n g
income s u p p o r t f o r those i n long-term t r a i n i n g .
o
During t h e 1995-99 t r a n s i t i o n p e r i o d , DOL w i l l m a i n t a i n a
c e r t i f i c a t i o n process under t h e REA s i m i l a r t o t h e process
used i n t h e c u r r e n t TAA program; those workers c e r t i f i e d as
being t r a d e - i m p a c t e d w i l l be p r o v i d e d t h e income support
b e n e f i t s under t h e REA t h a t they would have r e c e i v e d under
TAA, b u t o n l y i f they a r e i n t r a i n i n g .
o
The phase o u t o f t h e two c a t e g o r i c a l programs w i l l r e s u l t i n
d e c r e a s i n g e x p e n d i t u r e s under these programs d u r i n g FY 1995-97
and c o r r e s p o n d i n g l y i n c r e a s i n g o f f s e t s f o r t h e comprehensive
program; c a t e g o r i c a l program expenditures w i l l t o t a l $242
m i l l i o n i n FY 1995 w i t h $22 m i l l i o n i n o f f s e t s , $65 m i l l i o n i n
�FY 1996 with $204 m i l l i o n i n o f f s e t s , and $15 m i l l i o n i n FY
1997 w i t h $245 m i l l i o n i n o f f s e t s .
0.2% FDTA Surtax:
o
The b i l l proposes t o permanently extend the 0.2% FUTA surtax,
which i s scheduled t o expire on December 31, 1998.
o
I n budget scorekeeping terms, the revenues from the surtax are
c u r r e n t l y being used t o reduce the d e f i c i t and t h i s w i l l
continue u n t i l the December 31, 1998 e x p i r a t i o n date.
o
Given t h a t the REA w i l l make the surtax permanent beginning on
January 1, 1999, the revenues from the surtax f o r the f i r s t 9
months of calendar year 1999 ( l a s t 9 months of FY 1999) can be
used as an o f f s e t f o r REA expenditures during the FY 1995-99
period; t h i s y i e l d s an o f f s e t of $914 m i l l i o n f o r t h i s period.
Voluntary UI Withholding:
o
• UI benefits have been subject t o income tax since 1973 and- UI
claimants have been informed of t h i s l i a b i l i t y , but no
withholding from UI b e n e f i t s has been permitted under Federal
law.
o
Some UI claimants have expressed a desire t o have income tax
withheld from t h e i r b e n e f i t payments so t h a t they are not
faced with an unexpectedly large tax b i l l .
o
The REA w i l l require each State t o e s t a b l i s h a system f o r
withholding income tax from UI benefits, so t h a t UI claimants
can be given the option of choosing t o have withholding occur.
o
There w i l l be minimal administrative costs f o r States
associated with implementing t h i s provision; the Department of
Labor plans t o seek a d d i t i o n a l administrative funds t o cover
these minor costs once REA has been enacted.
o
I n budget scorekeeping terms, UI withholding w i l l
o f f s e t s by accelerating the c o l l e c t i o n of revenues.
o
This provision w i l l r e s u l t i n o f f s e t s of $101 m i l l i o n over the
Fy 1995-99 period, w i t h most of the o f f s e t s occurring i n FY
1996 and FY 1997 r e f l e c t i o n : (1) the time t h a t i t w i l l take
States t o enact the necessary l e g i s l a t i o n ; and (2) that the
revenue increase p r i m a r i l y occurs on a one-time basis.
Attachments
produce
�Re-e i p oyn e Ac
Consolidates Six Programs for
Dislocated Workers
EDWAA
RE-EMPLOYMENT
ACT
DCA
DDP
NAFTA
CLEAN
ADR.
Programs: l-DWAA - Economic Dislocation & Worker Assistance; TAA - 1 radc Atljustmcnt
Assistance; NA! TA - NAFTA Bridge Program; CLEAN AIR - C lean Air Fmploymcnt Tnmsition;
DDP - Defense DivcrsificHtion; DCA - DeTense Conversion Adjustment
�THli REEMPLOYMENT ACT OF 1994 IS EXPECTED TO SERVE OVER 6 MILLION
PARTICIPANTS* By FISCAL YEAR 2000
Thousands
1400
I
400 - 350
1993
1994
1995
1996
1997
1998
1999
•Defined as (hose who voluntarily participate in program services.
Source L D W A A
Prepared By: OASP
M1,VA
2000
�THE REEMPLOYMENT ACT OF 1994
Funding by Category'
Mandatory or Discretionary
$4000
$3500
$3245
$2826
$3000
1998
3 3 6 6
$2901
1997
S
$2500
$2000
$1500
$1000
$500
$0
1993
1994
1995
1996
1999
Discretionary Servt
Dlscr Income Support
Mand Income Support
One-Stop Funds
FT93 94 I n e l a d e i o n l r EDWAA
(Do*« not I n c l a d * TAA, DDP, DCA,
C l * a n Air or NAFTA Brtdg*)
2000
�REEMPLOYMENT ACT OF 1994: PROJECTED TOTAL COSTS
Total
(95 to 99)
2000
1995
1996
1997
1998
1999
DISLOC A T E D W O R K E R T O T A L
1,465
2,214
2,566
2.631
2.977
11,852 "
3,366
Discretionary Services
Discretionary Income Support
1.304
161
1,682
181
1,864
202
1.873
208
2.330
66
9,054
818
2.450
0
Total Discretionary Funding
Mandatory Income Support
1,465
0
1,864
350
2.066
500
2,081
550
2.397
580
9,872
1,980
2.450
916
250
250
250
250
250
1,250
70
1,715
2,464
2.816
2.881
3.227
13,102
One-Stop
REA TOTAL
3,4361
T
I
TOTAL OFFSETS VS. TOTAL MANDATORY COSTS
TRADE7NAFTA BRIDGE
0.2% FUTA EXTENSION
UI WITHHOLDING
TOTAL OFFSETS
22
0
0
22
204
0
67
271
245
0
30
275
261
0
2
263
235
914
2
1.151
967
914
101
1982
TOTAL MANDATORY COSTS
TOTAL OFFSETS
ANNUAL DIFFERENCE
0
22
22
350
271
-79
500
275
-225
" 550
263
-287
580
1,151
571
1980
1982
2
March 10 1994
:
�D I S L O C A T E D W O R K E R S FUNDING
($'5 in ttiotisands)
1993
1992
JTPA - Trtle III
Defense Conversion
Adjustment <D
1994
1995
$1,465,000
$526,986
$517,046
$1,113,000
30.751
6Z425
56,824
OefenM Diversification
Program
$
50,000
49,600
Disaster Assistance 3
—
——
64,600
226.000
154,000
72.000
Trade
Benefits
Training
NAFTA-TAA
Benefits
Training
Redwood
TotaJ
®
211,000
131,000
80.000
—
——
—
—
——
250
924,931
(75,000)
—
--
206.900^
126,900
80.000
231,000
151,000
60,000
24,VOC
24,100
0
13,500 9
5,000
8,500
43,400
22.000
21,400
29.9CC
17,000
12.9CC
—
250
833.987
$347,000
(56.824)
75,000
Clean Air
Difference
1994/1995
1,470,224
1,739,400
—
269.176
0 These are Department of Defense funds appropnai»d h 1991, wfiich are availabletorobligation thrj FY 199"
$ These are Department of Defense funds apprcpriat»dii 1993, which are availabletorobligation thai FY 199'
No obligations were incurred in FY 1993.
9 Emergency SupplementaJ funds were appropriated tor hurricane Hugo and the Mid-West flood.
9 Funding no longer required for tNs program.
$
Includes proposed 1994 suppl«m«ntai amourrt ol $30.4 million ($13.5 mdBcn NAFTA and Si 6 9 miiHcn Tra:
which is included in m« Advances to the Unemptaynwi Trust Fund and Other Funds appropriation.
-5-
�THE REEMPLOYMENT ACT OF 1994
PROGRAM DESIGN
JOB TENURE
TRAINING
GRANT
INCOME
SUPPORT
INCOME
SUPPORT
(Years with employer)
(Percent of tuition
covered by grant)*
FY 95-99
FY 2000
Less than 1 yr
100%
UI only
UI only
1-3 years
100%
UI + 26 wks
(Discretionary)
UI + 26 wks
(Mandatory)
3- years
.100%
UI + 52 wks
(Mandatory)
UI + 52 wks
(Mandatory)
•Training Grant capped at a maximum of S4,750/yr/person, with any additional
costs covered by income contingent loans.
** Beginning in FY2000, income support for those with 1-3 years of tenure
becomes mandatory.
-6-
�REEMPLOYMENT ACT BENEFICIARIES
(Full-Implementation in FY 2000)
Dislocated W. Universe
2,200
Job Search Assistance
1,600
Participants*
1,320
60% of Universe
i
i
Assessment/Counseling
660
Classroom Training
Income Support
495
'. 50% of Voluntary Participants
75% will receive intensive services beyond
counseling
80% of those in classroom training
0
500
1,000
1,500
Thousands
Source I DWAA
Prcparcil by: OASP W7/M4
•Defined as ihose who volunlarily parlicipalc in program services.
2,000
2,500
�REEMPLOYMENT INCOME SUPP
AND THE UI SYSTEM
UI Claimant
Profiling at
Initial Claim
Weeks
Available
DISLOCATED
NOT DISLOCATED
Regular UI
Regular UI
26 Weeks
Regular UI
Referred to
Reemployment
Services/Training
By Week 8
Week 1-2
By Week 5
Job Search Assistance Training
By Week 16
If State meets
EB Eligibility
Requirements :
13/20 Weeks
EB
EB
Reemployment
Income
Support
Total, including
Regular UI & EB,
up to a maximum total of :
78 Weeks
-8-
I
Starts
Week
27 or
40/47
�-9-
�-mergency Unemployment Compensation (EUC) Program
Estimated
Funding
Costs
Source
($ B)
Program
Beginning and
Ending Dates
Weeks of
Benefits Paid
EUC 1
11/91 • 6/92
20/13/6
20/13*
EUCA
6.7
3.2
2/92 - 7/92
33/26
EUCA
4.6
2.2
EUC 3
7/92 • 3/93
26/20
8.5
3.2
EUC 4
3/93 - 10/93
26/20
15/10
13/7
GR
6.5
1.9
EUC 5'
10/93- 2/94
13/7
EUCA
1.0
0.9
Claimants T
(Millions)
\
4
,QTNQTg!5
EUCA
GR
TotaJ Unemployment Rate (TUR) at point of enactment/extension.
Six weektierdropped in December 1991.
Prior to EUC 1 expring. EUC 2 was implemented extending benefits tfirougn July • 992
increasing the maximum number of weeks available to 33/26.
Weeks of benefits available based on tfie Seasonally Adjusted National TUR.
TUR for August 1993.
Extended Unemptoyment Compensation Account
General Revenues.
October u. 1993
DOUETA/UIS
-10-
�FUTA Flows Under Reemployment Act of 1994
($ b i l l i o n s )
k
FY 95
FUTA 0.8% Revenues
FUTA 0.16% Revenues *
Amount to RISA
FY 96
FY 97
FY 98
FY 99
FY 00
FY 01
5.54
1.11
0.00
5.63
1.13
0.35
5.71
1.14
0.50
5.79
1.16
0.55
5.87
1.19
0.58
5.94
1.19
0.92
6.00
1.20
1.20
T o t a l F e d e r a l Account
Balances (exc. RISA)
Current Law **
12.4
Proposed Law
12.4
14.7
14.4
17.3
16.4
20.2
18.8
23.1
21.1
26.0
23.1
28.8
24.7
FY 02
FY 03
6.07
1.21
1.21'
31.6
26.3
6.14
1.23
1.23
34.4
27.9
* Subset of 0.8% FUTA t a x ( r e f l e c t s amount of 0.2% surtax scored f o r PAYGO purposes)
** Assumes 0.2% surcharge would be extended even without passage of the REA
- RISA — R e t r a i n i n g Income Support Account
income support t o workers i n t r a i n i n g )
(new account to fund extended
- F e d e r a l accounts include the a d m i n i s t r a t i o n account, the extended b e n e f i t
account and the loan account.
- E s t i m a t e s based on FY 1995 President's Budget economic assumptions,
e x t r a p o l a t e d t o FY 2003
DOL/ETA/UIS
March 16, 1994
�oirfi e unemployment
hund
Unemployment
State Taxes
Trust
Fund
FUTA Taxes
Federal UTF Accounts
RISA*
Accounts
EUCA
Loans
UTF
Administration
FUA
State
ESAA
Income Support
4—
4
Extended Benefits
Daily D e p o s i t s
State UTF Acc ounts
Daily W i t h d r a w l s
>
•
FECA
Appropriations
Reimbursements
'7/<M
RiSA•=• ReemDloyment Income Support Account
3
�AMERICA'S JOB FAX
�AMERICA'S JOB F A X
" T h e only way to get a real job with a growing income is to have real
skills and the ability to leam new ones. We must streamline today's
patchwork of training programs and make them a source of new skills for
people who lose their jobs. Re-employment, not unemployment, will be the
centerpiece of our economic renewal."
-- President Clinton in Tuesday's State of the Union address
T h i s is the first in a series of regular Job Faxes from Secretary Reich -- to keep you
informed about developments concerning the President's workforce initiative.
T h e President's workforce initiative is designed to connect all Americans who want first
jobs, new jobs, and better jobs to state-of-the-art employment services and labor market
information. The key features of the proposal are:
/
•
•
/
•
One-stop delivery - quality basic services are provided by a single streamlined
system, easily accessible to all;
Re-employment services -- a full range of services - including early testing,
assessment, counseling, and career planning, along with information on training,
education, and where new jobs can be found ~ available to everyone;
Better information — a nationwide information network, to help workers make better
informed career and job choices and assist in their selection of proper training;
World class training - all dislocated workers will be eligible for effective long-term
training, regardless of the reason for their dislocation;
Customer focus - delivery of programs and services is designed to provide the widest
range of options possible; customer satisfaction is a prime measure of success.
C h a i r m a n Bill Ford has announced his intention to be the original House sponsor.
Extensive consultations have begun and are ongoing on the Hill and with relevant interest
groups, business and labor organizations, and representatives of State and local governments.
P u b l i c opinion polls show . . . "if Congress and the President could do only one thing
next year," number-one choice is " job training for the unemployed" (LA Times) . . . Majority
favor Federal government providing "more training for American workers to give them
competitive job skills" (Business Week).
U p c o m i n g events . . . "Building a National Re-employment System: What Is
Working" Conference - showcasing over twenty projects from across America that
demonstrate principles of successful re-employment programs ~ February 2 . . . This week
Secretary Reich addresses Center for National Policy, talks about what works with
Democratic Caucus, U.S. Conference of Mayors, National Governors Association
1121(1*
�AMERICA'S JOB FAX
"What
we are trying to do in our Administration with the leadership of the
Secretary of Labor and the Secretary of Education and many others is to establish a system of
lifelong learning, to recognize that people are going to change work seven or eight times in a
lifetime . . . And we are going to propose transforming the whole unemployment system . . .
to make it a continuous re-employment system."
-- President Clinton at Wednesday's conference on "What is Working"
"Building a Re-employment System: What Is Working Across America"
-- a day-long conference sponsored by the Department of Labor in Washington - featured a
diverse mix of "customers" and directors of job training programs. The conference
highlighted the challenges unemployed and dislocated workers face navigating the current
patchwork of employment and training programs. It also identified the critical common
elements of those programs that work.
President Clinton facilitated the third and final panel of the day, "Voices for Change"which spotlighted real "success story" participants and their programs. One common thread
was how hard it had been to get good information on available services - and, as one
participant noted, when you're unemployed and discouraged, "the last thing you need is to go
from pillar to post." The President agreed, emphasizing the need to "consolidate the programs
in law - and let them diversify, in fact" -- pointing out that, instead, "we have diversified the
programs in law so that they can't have any impact out there in the country."
Th e President announced his intention to have the proposed Re-employment Act of
1994, the Administration's workforce security initiative, introduced by the end of the month,
stating: "In a time in which we have to cut domestic spending, we have to find more money
to spend on this."
Senator Kennedy's keynote address to the conference also emphasized the need for "a
unitary program that addresses the needs of all dislocated workers, regardless of the reason for
the dislocation." "As President Clinton and Secretary Reich have said, we need to move from
an unemployment system -- whose primary purpose is to provide income support for workers
temporarily out of a job -- to a re-employment system which identifies those workers who
aren't going to get their old jobs back and gives them the training and support they need to
find new and better jobs."
Recent & upcoming events. . . Secretary Reich addressed the National Association of
Manufacturers Board of Directors Thursday. . . and spoke with the National Association of
Independent Colleges and Universities . . . Next week the Secretary meets with the presidents
of community colleges . . . and attends Senator Metzenbaum's conference on the contingent
workforce . . .
U.S. Department of Labor, February 4, 1994
�AMERICA'S JOB T A X
J O B F;
F i r s t and foremost, the goal of our economic strategy is to provide more and better
paying jobs for our people -- both today and in the future ~ and to educate and train them so
that they are prepared to do those jobs."
-- The Budget Message of President Clinton, February 7, 1994
Th e FY 1995 Budget which President Clinton submitted to the Congress last Monday
calls for an increased investment of $3.3 billion in education and training - an overall
increase of 24 percent over last year. That means an increased investment in the American
workforce -- from $5.5 billion to $6.5 billion -- and an increase of 21 percent for education.
The Senate's passage last week of the School-to-Work Opportunities Act and the Goals
2000: Educate America Act brings America's young people a giant step closer to economic
security. Both pieces of legislation will go back through conference for resolution of
relatively minor differences.
Consultations on the proposed Reemployment Act of 1994 will soon wind down, with
introduction expected in early March.
Recent & upcoming events . . . This week, Secretary Reich visits the Chicago
Manufacturing Institute - which teaches hi-tech plastic injection molding and automatic coil
operation and places 80 percent of its participants ~ and does not even begin a training
program unless 10-20 businesses have signed up to hire trainees. He then heads to
California, where he'll visit Touche Manufacturing in San Jose, which builds computer shells
for high-tech companies and hires as many workers as it can get from the Center for
Employment Training ~ also in San Jose ~ which provides an intensive training course that
integrates basic education and hands-on skills training. In San Francisco, Secretary Reich
will address the Education Summit sponsored by California State Assembly Speaker Willie
Brown. Next week, the Secretary is scheduled to testify on FY 1995 budget to House and
Senate . . . visits Bal Harbour for annual meeting of AFL-CIO . . .
U.S. Department of Labor, February 16, 1994
�AMERICA'S JOB FAX
"The Reemployment Act of 1994 will create a new comprehensive reemployment system that will
enhance service, improve access, and assist Americans in finding good new jobs."
- President Clinton, Transmittal Message, March 14, 1994
A poll released by the Times M i r r o r on April 6 reveals the public's deep concern about job
insecurity and unemployment. Improving the jobs situation was the number one response (26%) to the
question, "Which problem should President Clinton give the highest priority to?" -- ahead of crime
(23%) and the budget deficit (20%).
J o b s and unemployment was the only issue that registered in the poll as a problem on national,
community, and personal levels for those surveyed. As many as four in ten Americans at each income
level worried that they might lose a job or have to take a pay cut — with seven in ten or more
concerned about their children's job opportunities.
M ore job training was the most popular solution to the jobs problem (61% of those polled),
along with education (51%). Training and jobs programs were also seen as key to solving other
important problems, such as crime.
Other
polls echo the Times M i r r o r results . . . according to a recent poll published in the
New York Times, 45% of all currently employed workers in the Northeast (39% overall) "worry" that
during the next two years they might be laid off, have to work reduced hours, or be forced to take a
pay cut.
Also in the
news . . . the auto industry is hiring - and they're looking for highly-skilled entrylevel workers, according to a recent Wall Street Journal article. About a third of recent productionline hires at Ford, for example, have some education beyond high school. Elsewhere in Detroit - a
city plagued by staggering levels of long-term joblessness ~ nearly a thousand precision-machining
graduates of the Machinist Training Institute (MTI) have found jobs with area businesses,
U p c o m i n g events . . . Secretary Reich delivers the keynote address to the American Association
of Community Colleges convention. Hearings on the President's Reemployment legislation continue
after the congressional recess . . .
U.S. Department of Labor, April 6, 1994
�AMERICA'S JOB FAX
" P r e s i d e n t Clinton recently proposed a revamping of the [unemployment and job training]
process, one that would focus on getting people out of declining fields and into industries that do have
a future. The U.S. economy is still strong, but it is changing its shape, and workers will have to
change, too. Many can't do that without help . . . America's long-term economic success depends on
keeping people on the job, not on the dole. And if the jobs aren't going to be at Lockheed or
Northrop, or Boeing, or wherever, then we've got to find a way to get good, skilled employees from
those firms into the industries where there is work to be done."
Editorial, The Atlanta Journal (March 31, 1994)
Job cutbacks increased 29% from February to March, according to the Challenger Employment
Report - pushing the total jobs lost in the first quarter to 192,572. This is 11% more than last year's
first quarter total (170,615). One explanation is the increase in mergers, resulting in lost jobs. The
aerospace, computer, and communications industries accounted for 48% of the cutbacks announced in
March (the same industries accounted for 40% of cutbacks a year ago).
U « S » companies that since January 1993 have announced plans to eliminate 10,000 or more
jobs include: General Motors (69,5000), Sears, Roebuck (50,000), I.B.M. (38,500), A.T.&T. (33,525),
Boeing (31,000), GTE (27,975), Nynex (22,000), Phillip Morris (14,000), Procter & Gamble (13,000),
Woolworth (13,000), Martin Marietta (12,060), Eastman Kodak (12,000), Xerox (11,200), McDonnell
Douglas (10, 966), Raytheon (10,624), and Pacific Telesis (10,000), according to the New York Times
(March 22, 1994).
What' S behind
all this is a change in the global economy. Faster technological evolution
coupled with shorter product cycles. Goods and services are either specialized and knowledgeintensive, or become commodities. The bottom line: a shift in labor demand against less educated
workers and those doing routine tasks and toward workers with problem-solving skills.
T h e President's Reemployment Act of 1994 (REA) will tum our u/iemployment system into
a reemployment system. The REA will supply workers and businesses with up-to-date data about
where the jobs are and what skills they require. It will provide workers information on where to find
the education they need to find the right job, and will also help businesses to identify workers with the
skills that fit their needs.
O ur ability to compete and win depends on our ability to work together ~ business and
government - to invest in people. The Reemployment Act is a cornerstone of that partnership.
Recent and upcoming events . . . This week. Secretary Reich speaks to the Urban Institute
and to the National Center on Education and the Economy . . . Monday, he participates in an
"electronic town meeting" with the nation's community colleges.
U.S. Department of Labor, April 14, 1994
�AMERICA'S JOB FAX
1 his year we're going to try to change the unemployment system into a
reemployment system . . . It will cut the period of unemployment; it will increase the national
income; and it will certainly honor the values of the American middle class."
-- President Clinton, American Society of Newspaper Editors, April 13, 1994
Getting America Back to Work -- a Satellite Town Meeting on Reemployment -- was
broadcast live last night to more than 15,000 viewers nationwide.
. VIocIerated by Secretary Reich, the panel discussion featured William H. Kolberg, President
and CEO of the National Alliance of Business, David Pierce, president of the American Association
of Community Colleges, and Bert C. Roberts, Jr., chairman and CEO of MCI Communications Corp.
Business leaders, elected officials, educators, and labor representativesfromover 400
communities participated in the interactive segment of the discussion, which highlighted the changing
nature and focus of America's employment and training system.
Xhe formation of the Council for Reemployment
a coalition of businesses pushing for
passage of the Reemployment Act - was announced during the broadcast by Kolberg. Business
members will include: MCI, IBM, Xerox, General Electric, Allied Signal, Siemens Corp, Motorola,
Harman International, AT&T, K-Tron International, Ceridian Corp, Circuit City Stores, and Anderson
Consulting.
» «
T h e Business Roundtable, National Alliance of Business, National Association of Private Industry
Councils, National Small Business United, and The New England Council are among the business
groups supporting the general principles of the Reemployment Act of 1994.
National Small Business United "is particularly excited about the prospect of a strong worker
retraining system, since worker training is a major problem for small businesses," states NSBU
President Ron Cohen. "A more highly skilled workforce will greatly help the small business
community to continue leading our nation's economic growth."
» «
T h i s week, Secretary Reich meets with the Congressional Sunbelt Caucus and the
Congressional Black Caucus; speaks to members of the Building and Construction Trades . . .
U.S. Department of Labor, April 19, 1994
�AMERICA'S JOB FAX
Th e Reemployment Act of 1994 "will demand accountability. We cannot afford to
waste the taxpayers' time or money or the workers' time and the benefits that run by all too quickly,
on . . . govermnent programs long on red tape and short on results. We have to empower laid-off
workers to choose their training from among private and public providers who will compete for their
business and require that providers offer them consumer reports so that they'll be able to make
informed choices - how many people got what kind of jobs at what kind of pay? That, after all. is
the ultimate test."
-- President Clinton, announcing the Reemployment Act, March 9, 1994
Seventy percent o f the American public favors evaluating government agencies by the
results they produce - not the programs they initiate or the money they spend, according to a recent
survey by the Americans Talk Issues Foundation (Washington Post, April 20, 1994).
X h e Reemployment A c t (REA) builds in accountability the American people want - by
measuring program results - not their process. With the REA:
Customers get "consumer reports," with information on graduation and placement rates and
hourly wages, so job seekers can make well-informed education and training choices.
Training programs are market-driven - so training dollars prepare people for real jobs.
All six programs for dislocated workers are consolidated into a single program, with a single
eligibility standard - with further streamlining and consolidating where possible, so workers
don't have to spend any extra time or effort navigating bureaucratic mazes.
Programs focus on the customer - with customized service, quality information, meaningful
customer choice.
A governance structure makes career centers and one-stop centers accountable to workers,
employers, and the local community for quality service and outcomes.
T h i s is Jobs Week on N B C ~ all news shows will include employment-related segments.
Employers are urged to send jobs information to America's Job Bank, which is a computerized
national employment referral system that matches jobseekers with employers looking to fill job
vacancies.
U.S. Department of Labor, April 26, 1994
�AMERICA'S JOB FAX
"We
are l i v i n g i n a w o r l d where what you earn is a function of what you can leam."
-President Clinton, January 25, 1994
T h e School to W o r k Opportunities A c t o f 1994 is scheduled to be signed on
Wednesday, May 4, at the White House. The bill signing event on the South Lawn will showcase
current School to Work students from around the country and celebrate the School to Work
Opportunities movement. As Secretary Reich has said, "A School to Work transition system is
critical to improving the economic opportunities of our young people and will help us all on the road
to better jobs and greater economic security."
» «
E d u c a t i o n will continue to be a key to good jobs into the next century, according to the Bureau
of Labor Statistics. Between now and the year 2005, the fastest-growing job categories are projected
to be "professional specialties," such as engineers, architects, lawyers, judges, teachers, and doctors
(37%) and "technicians and related support," such as dental hygenists, drafters, computer
programmers, and paralegals (32%). Technician jobs generally require under two years of postsecondary education or training. Source: Monthly Labor Review, November 1993.
Occupations with the highest percentage of growth between now and then are estimated to be
home health aides (138% increase), human services (136%), personal and home care aides (130%),
computer engineers/scientists (112%), systems analysts (110%) physical and corrective therapy
assistants (93%), paralegals (86%), special education teachers (74%) and medical assistants (77%).
Source: USA Today, April 28, 1994.
» «
Th e President's Reemployment A c t is the key to finding workers who can fill those jobs.
Under the REA, workers who lose their jobs regardless of reason will be eligble for retraining in
fields with high job growth. The REA recently gained three new sponsors in the House ~ John
Olver, Sam Farr, and Frank McCloskey - as well as Patty Murray in the Senate.
U.S. Department of Labor, April 29, 1994
�AMERICA'S JOB FAX
1 he labor market information component of the Reemployment Act of 1994 will . . . show
the way to new jobs, through expanding access to good data on where jobs are and what skills they
require."
--President Clinton, Transmittal message
One promising new reemployment tool is the LASER, a survey developed by the Bureau of
Labor Statistics. LASER is designed to help job-seekers pinpoint job opportunities at a more detailed
level than ever before. LASER attempts to move workers away from thinking of themselves in
occupation-specific terms, by focusing on the skills they have. In pilot tests, LASER helped jobseekers identify new industries for employment that they had not previously known about.
rood labor market information, coupled with market-driven training, are key to the success of
Project Focus:HOPE in Detroit, which has so far placed 100% of its precision machining graduates.
Focus:HOPE pinpointed a dearth of machinists in the area and then set up a machinery skills training
program to tap into the demand.
High-quality, easily-accessible labor market information is a critical component of the
President's Reemployment initiative, which just gained four new sponsors in the House — Anthony
Beilenson, Martin Frost, John LaFalce and Gary Ackerman.
The legislation establishes a National Labor Market Information System, which will build on
and strengthen existing Federal, State, and local systems.
This user-friendly computer system will provide easily-accessed information on job openings,
job candidates, occupational trends, wage rates, and skill requirements.
"Consumer reports" will provide data on the performance of training program managers and
service providers - so customers can make informed training and career choices - and
effective training programs can show their results.
» «
U p c o m i n g . . . Tuesday, Secretary Reich visits Jay Leno on the Tonight Show . . . Wednesday,
President Clinton signs the School to Work Opportunities Act ~ on a desk designed and built by
School to Work students . . . Also on Wednesday, the 30th anniversary of Jobs Corps is celebrated at a
dinner - the invitation list includes President Clinton, Secretary Reich, and Marian Wright Edelman
of the Children's Legal Defense Fund. Job Corps has been widely recognized as a program that works
in helping prepare severely disadvantaged youth for jobs.
U.S. Department of Labor, May 3, 1994
�AMERICA'S JOB FAX
T h e unemployment system was designed for an era when workers often had the same job
from high school to retirement. Now, the average worker will change jobs seven times in a lifetime.
And in a workplace where ROMs and RAMs and robotics are the rage, there will never be a time
when workers don't need to leam new skills. The Reemployment Act will . . . ensure that every
worker is trained, and retrained, and retrained. It consolidates the spaghetti tangle of federal
programs, and will open one-stop shopping so that a worker can walk in off the street and get what
he or she needs. I look forward to returning here to sign that legislation before the year is out."
-President Clinton, signing the School to Work Opportunities Act, May 4, 1994
»«
A t a rally on jobs and the economy in Atlanta Tuesday, President Clinton pointed out that in
the first 14 months of the administration, two and a half million jobs were created. In the last year,
Georgia has produced 150,000 new jobs, he said, making it the fastest-growing economy east of the
Mississippi River.
T h e President also emphasized that many challenges remain, despite the positive job growth
figures. "This year, we have got to adopt new systems of educating and training our people so they
can compete in the global economy," he said, underscoring the need for the Reemployment Act of
1994 - which just gained four sponsors in the House ~ Pete Stark, William Lipinski, Thomas
Manton, and Alcee Hastings.
» «
President Clinton signed the School to Work Opportunities Act Wednesday on a
fiberglass and aluminum desk designed and built by School to Work students at the Manufacturing
Project in Flint, Michigan. Honored at the White House ceremony were 60 students in School to
Work programs across the country, in addition to businesspeople, educators, labor leaders, community
activists and public servants, who have been instrumental in developing the School to Work
movement and who will need to work in partnership to implement the new legislation.
» «
Upcoming hearings on the Reemployment Act of 1994 . . . Secretary Reich is scheduled
to testify before the Senate Finance Committee on May 26 . . . Key stakeholders testify before the
Senate Labor and Human Resources Committee on May 12, before the House Education and Labor
Committee's labor-management relations subcommittee on May 25, and before the House Education
and Labor Committee's postsecondary education and training subcommittee on June 8.
U.S. Department of Labor, May 6 1994
,
�America's Job F ;ax
o A recent DOL publication - - Reemployment Services: A Review of Their
Effectiveness extensively reviews the available evidence on our nations' reemployment
services. Its findings include:
--
Job Search Assistance Works: In States which provided unemployed workers job
search assistance, such as job clubs and resume writing workshops, those workers
found new jobs at better pay faster than workers in States which did not provide
these Services.
(National Bureau of Economic Research Working Paper #4197, 1992)
o Fact # 1 about the Reemployment Act (REA): Basic reemployment services such as
job clubs and resume writing workshops are a key component of the REA.
o Fact # 2 about the REA: The REA will build a nationwide data bank that links jobs
and job training programs to all unemployed workers.
Programs that encourage the unemployed to become self employed more than
double the number of unemployed who start their own business. (Abt Associates,
Bethesda, Md., Nov., 93)
o Fact # 3 about the REA: The REA encourages States to provide self employment
allowances and entrepreneurial training as an alternative to unemployment payments
for clients who wish to become self employed.
Reemployment bonuses save the government money and get people back to work
f a s t e r . (UI Occasional Paper 92-7, US DOL, 1992)
o Fact # 4 about the REA: Bonuses for getting people back to work faster - like those
offered under the REA -- significantly reduce the amount of time spent drawing
unemployment benefits.
o If you would like more mformation about these and other importantfindingsdescribed
in Reemployment Services: A Review of Their Effectiveness, you may contact the US
DOL, Department of Public Affairs at (202)-219-8211.
OTHER NEWS ABOUT THE REEMPLOYMENT ACT
--
The latest Congressional co-sponsor for the REA is Congresswoman Eleanor
Holmes Norton. There were a total of eight cosponsors who signed on to support
the Act last week.
U.S. Department of Labor, May 9, 1994
�
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Title
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Michael Waldman
Description
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<p>Michael Waldman was Assistant to the President and Director of Speechwriting from 1995-1999. His responsibilities were writing and editing nearly 2,000 speeches, which included four State of the Union speeches and two Inaugural Addresses. From 1993 -1995 he served as Special Assistant to the President for Policy Coordination.</p>
<p>The collection generally consists of copies of speeches and speech drafts, talking points, memoranda, background material, correspondence, reports, handwritten notes, articles, clippings, and presidential schedules. A large volume of this collection was for the State of the Union speeches. Many of the speech drafts are heavily annotated with additions or deletions. There are a lot of articles and clippings in this collection.</p>
<p>Due to the size of this collection it has been divided into two segments. Use links below for access to the individual segments:<br /><a href="http://clinton.presidentiallibraries.us/items/browse?advanced%5B0%5D%5Belement_id%5D=43&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=2006-0469-F+Segment+1">Segment One</a><br /><a href="http://clinton.presidentiallibraries.us/items/browse?advanced%5B0%5D%5Belement_id%5D=43&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=2006-0469-F+Segment+2">Segment Two</a></p>
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Michael Waldman
Office of Speechwriting
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1993-1999
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2006-0469-F
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Segment One contains 1071 folders in 72 boxes.
Segment Two contains 868 folders in 66 boxes.
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Clinton Presidential Records: White House Staff and Office Files
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William J. Clinton Presidential Library & Museum
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Adobe Acrobat Document
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paper
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The Reemployment Act of 1994 Product/Materials Book [Binder] [2]
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Office of Speechwriting
Michael Waldman
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Box 14
<a href="http://clinton.presidentiallibraries.us/items/show/36403"> Collection Finding Aid</a>
<a href="https://catalog.archives.gov/id/7763296">National Archives Catalog Description</a>
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2006-0469-F Segment 1
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White House Staff and Office Files
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William J. Clinton Presidential Library & Museum
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Adobe Acrobat Document
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Preservation-Reproduction-Reference
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6/3/2015
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7763296
42-t-7763296-20060469F-Seg1-014-006-2015