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 1997, i.e. July 1, 1997 through June 30, 1998 (this includes any available funds from Program Years 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 ". . . . 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 being granted under 20 CFR 627.201 for a period of four years from the effective date of this Grant Modification.

B. 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.

C. 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.

D. The Secretary shall apply the requirements in TEIN 26-96 transmitting the "Guide to JTPA Performance Standards for Program Years 1996 and 1997", such that title III performance standards calculations exclude participants terminating after receiving objective assessment only, consistent with title II.

E. The Secretary waives JTPA §§ 108(b)(1), (4) and (c); the 15% administration cost limitation under §§ 253(a)(3) and 315(a), (b), and (c); 20 CFR 627.445(a), (b)(3), and (d); 631.14(a), (b), (c), (d), (f), and (g) eliminating all cost limitations for titles II and III [except for national reserve account (NRA) grants]; and will apply JTPA § 108(b)(2) and (3); 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. Reporting instructions for the two cost category reporting method have been developed and will be provided to the State.

F. In consideration of the waivers contained in this grant modification, the State agrees to a performance improvement of at least five percent at the State and local levels 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. States will take into account the SDAs' performance improvement targets in determining the receipt of Title II incentive grant awards for PY 1997. In considering whether the State and the SDAs have 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 July 1, 1997.

STATE OF TENNESSEE

_________________________________________________________________

Governor or JTPA Signatory Official

Date

(Typed Name/Signature)

U.S. DEPARTMENT OF LABOR

_________________________________________________________________

JAMES C. DE LUCA

Date

JTPA GRANT RECIPIENT

Tennessee Department of Labor
Employment and Training Division
710 James Robertson Parkway, 4th Floor
Nashville, Tennessee 37243-0658

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

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