Modification to add clause 8 for the period July 1, 1997 through June 30, 1998 (or longer where specified herein or if subsequently modified).

8. Pursuant to the statutory waiver authority at Pub. L. 104-208 § 101(e) for JTPA funds available for expenditure during Program Year (PY) 1997, i.e., July 1, 1997 through June 30, 1998 (this includes available funds from PYs 1995, 1996 and 1997), and pursuant to the administrative regulatory waiver authority provided for at 20 CFR 627.201:

A. The Secretary will apply the definition of "family income" in 20 CFR 626.5 such that ". . . such income shall also exclude Social Security Disability Income for an individual with a disability. . . ." This administrative regulatory waiver is being granted under 20 CFR 627.201 for a period of four years from the effective date of this Grant Modification.

B. The Secretary will apply the definition of "family income" in 20 CFR 626.5 such that ". . . . The Governor may, for the purposes of determining income eligibility for services under title II of the Act, exclude up to 50 percent of Social Security and Old Age Survivors' Insurance benefit payments. . . from the definition of family income." This administrative regulatory waiver is granted under the provisions of 20 CFR 627.201 for a period of four years from the effective date of this Grant Modification.

C. The Governor agrees to continue to require an objective assessment and individual service strategy at entry and on an on-going basis for all participants under titles I, II, and III that is tailored to the background and needs of the participant and where services identified in the individual service strategy (ISS) will be secured for the individual. The Secretary waives 20 CFR 628.515(a) and 628.520(a), and will apply JTPA §§ 204(a)(1) and 264(b)(1), and remaining sections of 20 CFR 628.515 and 628.520 as providing non-binding guidance for the alternative state policy that the Governor shall implement.

Until such time as the alternate policy is in place for title II adults and youth, the requirements specified in the preceding sentence will continue to apply to any decision to provide the stand-alone activities permitted in paragraphs D. and F. below (i.e., work experience, job search assistance, job search skills training, job club for both youth and adults and pre-employment and work maturity skills) which rely on the objective assessment and ISS.

D. The Secretary waives the prohibition on stand-alone work experience, job search assistance, job search skills training, and job club, for both youth and adults, in instances when an individual service strategy substantiates its use as appropriate, by waiving JTPA § 204(c)(2)(B)(ii) and 20 CFR 628.535(b)(2) and (c)(1)(ii) and applying JTPA § 264(d)(3)(A) and (B) as if they read ". . . shall be accompanied by . . . additional services . . . unless the individual service strategy demonstrates such additional services are not warranted." Additionally, the title III prohibition on work experience at 20 CFR 627.245(e), where such strategy is supported by an individual assessment, and the combination requirements at 20 CFR 627.245(d) and 628.804(e) and (f), are waived.

E. The Secretary will apply the provisions of needs-based payments at JTPA § 204(b)(2)(I) and (c)(3) and 20 CFR 627.305(b)(1) to title III participants. However, the eligibility provisions of JTPA § 314(e)(1) and 20 CFR 631.20 shall continue to apply to needs-related payments and additionally to needs-based payments, for title III participants.

F. The Secretary waives the requirements at JTPA § 264(d)(3)(A) and 20 CFR 628.804(d) and (f) that prohibit pre-employment and work maturity skills training as a stand-alone activity in cases where the objective assessment and individual service strategy indicate it is the appropriate intervention.

G. The Secretary waives the youth OJT wage requirement at JTPA § 264(d)(3)(C)(i)(I) and the related regulations at 20 CFR 628.804(j)(1)(i) and the participation requirement at JTPA § 264(d)(3)(C)(iii) and the related regulation at 20 CFR 628.804(j)(2), when indicated as appropriate in the assessment and individual service strategy for youth on-the-job training. The State shall assure that the OJT positions for youth have substantial training content and that the training time is correctly determined.

H. The Secretary waives the requirements at JTPA § 141(k) that prohibit subsidized employment with private for-profit employers to permit limited internships with private for-profit employers, for youth who do not meet the economically disadvantaged requirements at JTPA §§ 264(a)(2) or (c)(2), in cases where the objective assessment and individual service strategy indicate it is the appropriate intervention and when:

1. The provision of services under this waiver are subject to the requirements at JTPA § 264(e) for services to the non-economically disadvantaged under the "10-percent window," which may not be exceeded;

2. It is used in the private for-profit sector, as in the public and private non-profit sectors, for those participants who need to build and demonstrate labor market skills or undertake career exploration, in jobs for which there is a demand in the community and which are within the skill goals of the participant. This waiver authority shall be administered so as to preclude the reintroduction of the abuses where participants are placed in low skill, low wage paying jobs as a subsidy to the employer;
   
   
3. It is used when on-the-job training is not available or is inappropriate;
   
   
4. The worker protections under JTPA § 143 are in place, particularly health and safety standards and workers' compensation, and no displacement or reduction in hours of regular employees occurs; and
   
   
5. It is provided as a temporary activity, of limited duration. The State agrees to set a policy governing duration of such employment with private for-profit employers.

I. The Secretary waives the JTPA Standardized Program Information Report (SPIR) instructions in Training and Employment Information Notice (TEIN) 5-93, Change 1 that require follow-up by participant contact for the 13th week after termination on the condition that the State adopt the provisions in the Department's "JTPA Statutory Waiver Guidelines: Substitution of Wage Record Follow-Up for Survey Follow-Up in JTPA Performance Standards" and in future implementing guidance.

J. The Secretary waives JTPA § 108(b)(1), (4) and (c); the 15% administration cost limitation under JTPA §§ 253(a)(3) and 315(a), (b) and (c) and 20 CFR 627.445(a), (b)(3) and (d) and 631.14(a), (b), (c), (d), (f), and (g), eliminating all cost limitations for titles II and III [except for title III national reserve account (NRA) grants]; and will apply JTPA § 108(b)(2) and (3) and 20 CFR 627.440(c) and (d) and 631.13(a)(1) to reduce the number of cost categories to two: Administration and Program Costs. The costs of Administration shall be those defined at 20 CFR 627.440(d)(5) for title II and 631.13(f) for title III. Program costs will consist of all other costs including those defined at 20 CFR 627.440(d)(1), (2), (3), and (4) for title II and at 631.13(c), (d), and (e) for title III. The costs of Rapid Response activities identified at JTPA § 314(b) and 20 CFR 631.13(b) shall continue to be separately reported.

K. The Secretary approves the State's request to eliminate terminations due to illness or death from performance standards calculations. The State should develop a policy that details the conditions under which terminations due to illness should be excluded; all terminations due to death should be excluded. The State may exclude from both the numerator and the denominator of the titles II-A, II-C and III, and JTPA § 204(d) performance standards calculations terminations due to illness or death. ETA will provide revised SPIR reporting instructions.

L. In consideration of the waivers contained in this grant modification, the State agrees to a performance improvement of four percent (4%) at the State level measured at the conclusion of Program Year 1997 using actual performance in PY 1996 as the baseline for improvement. Performance improvements will apply to all the Secretary's performance measures or to their approved equivalents, for titles II-A, II-C, and III. In order to meet this performance improvement, the State is expected to require that each SDA/SSG make some improvement in performance and that those SDAs/SSGs which demonstrate comparatively lower levels of performance be required to make greater performance improvements. States will take into account the SDA's performance improvement targets in determining the receipt of title II incentive grant awards for PY 1997. In considering whether the State has attained the agreed upon performance improvement for PY 1997, the Department will apply the Secretary's Adjustment Models, exclusive of Governor's Adjustments, to the performance improvement goals. Program Year 1996 and Program Year 1997 performance will be calculated in the same way for both years.

The Standardized Participant Information Report (SPIR) instructions in Training and Employment Information Notice 5-93, Change 1 (dated June 23, 1994), as modified by Training and Employment Information Notice 5-93, Change 2 (dated January 24, 1997), remain in effect where not specifically waived or modified in this Agreement. Also in effect unless specifically waived are the Performance Standards Status Summary Report requirements put forth in Training and Employment Guidance Letter 2-95 (dated August 10, 1995). This requires Governors to report each SDA's final standard and actual performance for each of the Secretary's title II core standards, with required technical assistance plans and reorganization plans attached.

Clause 8 shall be open to further modification as authorized under the waiver authority. The effective date of this modification shall be September 30, 1997.

STATE OF IOWA

_________________________________________________________________

Governor or JTPA Signatory Official

Date

(Typed Name/Signature)

U.S. DEPARTMENT OF LABOR

_________________________________________________________________

JAMES C. DE LUCA

Date

JTPA GRANT RECIPIENT

Division of Workforce Development
Iowa Department of Economic Development
1000 East Grand Avenue
Des Moines, Iowa 50319-0209

Grant Agreement Nos.
(Check affected agreements, statutory waivers)

/ / PY 97 JTPA Grant Agreement
/ / PY 96 JTPA Grant Agreement
/ / PY 95 JTPA Grant Agreement