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 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 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 combination requirements at 20 CFR 627.245(d) and 628.804(e) and (f) are waived where such strategy is supported by an individual assessment.

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

§ 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 will apply JTPA §§ 204(b)(2)(J) and (c)(4), 264(d)(5) and 20 CFR 627.310(e) so as to authorize training as a title II post-termination service contingent upon the Governor developing a recordkeeping system that will track post-termination training provided and outcomes achieved for any such training. The provision within 20 CFR 627.310(e) which prohibits the use of financial assistance as a post-termination service is not waived. Therefore, needs-based payments are not a post-termination option under this waiver for title II.

D. The Secretary waives the JTPA procurement requirements at JTPA § 164(a)(3) and the implementing regulations at 20 CFR 627.420(a)(1), (2), (3), and (4); (b); (d)(1); (e)(1), (2), (3), and (5); (g) and (h). The Governor agrees to use State and local procurement procedures and to abide by Office of Management and Budget (OMB) Circular A-102 as codified in the DOL regulations at 29 CFR, Part 97. References elsewhere in JTPA to

§ 164(a)(3) will be understood to refer to State and local procurement provisions.

E. The Secretary waives JTPA §§ 108(b)(4)(B) and 315(a) and (b); 20 CFR 627.445(a)(1)(i), and (a)(2)(i) and 631.14(a) and (b) eliminating the non-administration cost limitations for titles II and III [except for national reserve account (NRA) grants]; the 20% administration limitation for titles II-A and II-C, at JTPA § 108(b)(4)(A), will remain in effect; and, the 15% limitation for title III, at JTPA § 315(c), as well as the 15% limitation for title II-B, at JTPA § 253(a)(3), and at 20 CFR 627.445(b)(3), will be waived and replaced by the same 20% administration limitation as for titles II-A and II-C, at JTPA

§ 108(b)(4)(A). The provisions at JTPA § 108(b)(1) and (c), and all references in the JTPA regulations that address the cost limitations under titles II-A, II-B, II-C, and III [except for national reserve account (NRA) grants] shall refer only to the 20% administration cost limitation. The Secretary will apply JTPA § 108(b)(2) and (3) and 20 CFR 627.440(b), (c)(1) 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. 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 the provisions of 20 CFR 627.201 for a period of four years from the effective date of this Grant Modification.

G. In consideration of the waivers contained in this grant modification, the State agrees to a performance improvement of five percent (5%) 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, States are expected to require each SDA/SSG to improve performance, and are expected to require relatively greater levels of improvement from SDAs/SSGs that are poor performers in relation to the Secretary's Adjustment Models. 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 July 1, 1997.

STATE OF KENTUCKY

_________________________________________________________________

Governor or JTPA Signatory Official

Date

(Typed Name/Signature)

U.S. DEPARTMENT OF LABOR

_________________________________________________________________

JAMES C. DE LUCA

Date

JTPA GRANT RECIPIENT

Department of Workforce Development
10 North Senate Avenue, Room 302
Frankfort, Kentucky 46204

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

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