Mr. Douglas E. Stites
Director
Michigan Employment Security Commission
7310 Woodward Avenue
Detroit, MI 48202

Dear Mr. Stites:

I am pleased to respond to Governor Engler's April 29, 1997 request for Wagner-Peyser Act waivers for Michigan. Although we are not able to grant all the Wagner-Peyser Act waivers submitted by Michigan, we appreciate the effort that was put forth to develop requests that contribute to an overall strategy to improve the delivery of Wagner-Peyser program services. Michigan's efforts in this area are to be commended.

The State's request was considered under the special appropriations act authority granting the Secretary of Labor authority to waive certain requirements of Titles I-III of JTPA, and Sections 8-10 of the Wagner-Peyser Act. This authority was granted to the Secretary in the Department of Labor's (DOL) Appropriation Act for 1997 [Pub. L. 104-208, section 101(e)].

This is a one-year authority and applies only to Wagner-Peyser funds available for expenditure during the period July 1, 1997 through June 30, 1998. Enclosed you will find a Waiver Request Disposition statement; a copy of our formal response to the Governor; and three copies of the Waiver Agreement for review and signature of the appropriate signatory official. The Agreement will also serve as an Addendum to the Governor-Secretary Agreement. We ask that the Waiver Agreement documents (3 originals) be signed by the appropriate official and returned to the Grant Officer for execution at the address indicated below:

Mr. Melvin J. Howard
Acting Regional Administrator
U.S. Department of Labor - ETA
230 S. Dearborn Street
Chicago, IL 60604

Upon execution by the appropriate USDOL grant officer a copy of the agreement will be returned for the State's official files. The agreement will be effective July 1, 1997.

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Thank you for submitting requests for Wagner-Peyser Act waivers. We appreciate Michigan's efforts to develop waivers that contribute to improving the administration of Wagner-Peyser Act programs. We anticipate this is the first step in a Federal- State partnership to develop waivers that contribute to streamlining the overall administration and delivery of Wagner-Peyser program services. If we can be of assistance as you develop additional waivers, please do not hesitate to contact us.

Sincerely,



Melvin J. Howard
Acting Regional Administrator

Enclosures



WAGNER-PEYSER WAIVER REQUEST DISPOSITION

FOR THE STATE OF MICHIGAN




OVERVIEW

Upon execution the enclosed Waiver Agreement document will serve as an addendum to the Governor-Secretary Agreement. The granted waivers are authorized for the period of Program Year 1997 (July 1, 1997 through June 30, 1998). Below is a discussion, including the disposition, of the State's Wagner-Peyser Act waiver requests.

Requests to waive program design components were honored except in the case where the request conflicted with the Department's guiding principles for waivers and the One-Stop Career Centers and School-to-Work Systems principles or were outside the authority granted by the 1997 Appropriations Act.

These waivers are based upon the Governor's request, meetings and discussions among staff, and the Department's familiarity with the program in Michigan. They do not necessarily constitute an endorsement of the examples in Michigan's waiver request.



WAIVERS

A. Submission of a Wagner-Peyser Annual Plan for PY 1997 as required by Wagner-Peyser § 8(a), and 20 CFR 652.6(a) is waived. The Wagner-Peyser Annual Plan submitted previously for Program Year 1996 will serve as a two-year (Program Year 1996-1997) plan and the certifications and assurances therein will apply for the period July 1, 1996 through June 30, 1998.

B. The State's waiver requests, in two areas for more flexible funding restrictions involving the use of administrative grants and use of Unemployment Insurance (UI) funds for Wagner-Peyser labor exchange activities, are denied. These requests are applicable to Title III of the Social Security Act. The 1997 Appropriations Act does not give authority to the Department of Labor to waive any requirements of the Social Security Act.

C. Michigan's waiver request applicable to Wagner-Peyser § 10(a) is denied. Reporting service activity provided to "individuals" in the ETA 9002 report is necessary to establish comparative rates of service by the Veterans Employment and Training Service (VETS) and ensure definitive performance standards are met as required by USC Title 38. The 1997 Appropriations Act does not grant the Department of Labor authority to waive statutes or regulations outside the Wagner-Peyser or the Job Training Partnership Acts.

WAGNER-PEYSER WAIVER AGREEMENT

ADDENDUM TO THE GOVERNOR-SECRETARY AGREEMENT


STATE OF MICHIGAN




Pursuant to the statutory waiver authority at Pub. L. No. 104-208 § 101(e) for Wagner-Peyser funds available for expenditure during Program year 1997 (July 1, 1997 through June 30, 1998), the U.S. Department of Labor and the State of Michigan agree to the following:

A. The Secretary of Labor waives the following provision of the Wagner-Peyser Act:

  1. 1. Submission of a Wagner-Peyser Annual Plan for PY 1997 as required by Wagner-Peyser § 8(a), and 20 CFR 652.6(a) is waived. The Wagner-Peyser Annual Plan submitted previously for Program Year 1996 will serve as a two-year (Program Year 1996-1997) plan and the certifications and assurances therein will apply for the period July 1, 1996 through June 30, 1998.


B. In consideration of this waiver, the State of Michigan agrees to the performance improvements referred to in clause 8 of the Job Training Partnership Act Grant Agreement Modification.

This waiver agreement shall be open to further modification as authorized under the waiver authority. The agreement shall serve as an addendum to the current Governor-Secretary Agreement. The effective date of this agreement shall be July 1, 1997.

GRANTEE:

_________________________________________________________________
Governor or Wagner-Peyser Signatory Official Date
(Type Named and Signature)

U.S. DEPARTMENT OF LABOR:

__________________________________________________________________
MELVIN J. HOWARDDate

Grant Officer



WAGNER-PEYSER GRANT RECIPIENT:

Michigan Employment Security Commission
7310 Woodward Avenue
Detroit, MI 48202