MARYLAND

JOB TRAINING PARTNERSHIP ACT (JTPA) GRANT AGREEMENT

MODIFICATION

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 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.

B. The Secretary waives for a period of four years the regulatory provision at 20 CFR 631.12(a)(1)(ii). This will permit the State to expend title III funds in the year of allotment plus two following years, provided the State expends at least eighty percent of allotted funds in the year of allotment.

C. The Secretary waives the JTPA procurement requirements and the implementing regulations at JTPA §164(a)(3) and 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 consistent with Office of Management and Budget (OMB) Circular A-102 as codified in the DOL regulations at 29 CFR 97.36 (The Common Rule). The Circular/Common Rule requires the State to follow the same policies and procedures it uses for procurements from its non-Federal funds when procuring property and services under a grant. References elsewhere in JTPA to § 164(a)(3) should be understood to apply to State and local procurement provisions.

D. The Secretary waives 20 CFR 627.420(d)(1)(i), the JTPA small purchase threshold of $25,000 for individual referral training, provided that the State abides by the federal threshold of $100,000 set at 41 USC, 403(11).

E. The Secretary waives 20 CFR 631.2 which defines "substantial layoff" for the purpose of determining a worker's eligibility for title III pursuant to JTPA § 301(a)(1)(B). However, this does not waive the eligibility requirement at § 301(a)(1)(B), nor does it waive the statutory definition of substantial layoff for the purpose of providing rapid response assistance assistance pursuant to §314(b).

F. The Secretary waives for a period of four years the regulatory definition of "enrolled in training" at 20 CFR 631.20(b)(2) and will apply the following definition for individuals who have met the eligibility criteria at JTPA § 314(e) and who require needs-related payments in order to participate in training--

"the term 'enrolled in training or education programs' means that the worker has completed and

agreed to a re-employment plan with his/her Case Manager, has been accepted for the training

authorized in that re-employment plan by the training institution, and is scheduled to start that training

at the first date on which the training will become available."

G. The Secretary waives the requirement at JTPA § 106(b)(7)(E) that limits the amount of incentive funds that can be applied to performance standards established by the Governor. The State agrees not to use more than 50 percent of the incentive grants for new performance standards established by the Governor.

H. 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 are waived 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 future implementing guidance.

I. The Secretary waives the prohibition on stand-alone work experience, job search assistance and job search skills training 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 "work experience, job search assistance, job search skills training. . . 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) -- as they apply only to work experience, job search assistance and job search skills training -- are waived.

J. The Secretary waives the requirements of 20 CFR 627.240(b), which provide maximum time limits during on-the-job training, provided the training time during the OJT is correctly determined, taking into consideration the necessary occupational skills, and the time required to acquire such skills, for the participant to function in the job for which the OJT is contracted. The Secretary also waives that portion of 20 CFR 627.240(f)(3) which precludes OJT with a participant's "current employer" in "an upgraded job" for title II eligible participants. This waiver will permit OJT with a title II eligible participant's current employer on condition that the OJT results in the acquisition of new skills and higher pay by the participant.

K. The Secretary will apply JTPA § 204(b)(2)(J) and (c)(4) and 20 CFR 627.310(e) to title III to enable title III participants to receive post-termination services, except financial assistance, for up to one year consistent with title II. Additionally, the Secretary will apply JTPA §§ 204(b)(2)(J) and (c)(4), 264(d)(5) and 314(c)(15), and 20 CFR 627.310(e) so as to authorize training as a post-termination service contingent upon the Governor:

i. Developing a record keeping system that will track post-termination training provided

and outcomes achieved for any post-termination training provided.

ii. Maintaining current safeguards to ensure that employers do not receive federal funding for

training/retraining laid off and subsequently recalled/rehired employees.

However, 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 and needs-related payments are not post-termination options under this waiver for both title II and III.

L. The Secretary waives the requirement at JTPA § 141(k) to the extent that it limits subsidized employment with private for-profit employers to title II-C, and will apply 20 CFR 627.245(a) and 628.705(c), to permit work experience for title II-B participants with private for-profit employers, in cases where the objective assessment and individual service strategy indicate it is the appropriate intervention when:

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;
Compensation to participants is in accordance with the applicable provisions at JTPA § 142(a). 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 type jobs as a subsidy to the employer; and.
Work experience is provided in accordance with the limitations for operation of the summer program at JTPA § 254(a). The State agrees to set a policy governing duration of such employment with private for-profit employers.

M. 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 objective 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.

N. 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 Program 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 MARYLAND

_________________________________________________________________
Governor or JTPA Signatory Official Date

U.S. DEPARTMENT OF LABOR

_________________________________________________________________
JAMES C. DE LUCA Date

JTPA GRANT RECIPIENT

Maryland Department of Labor,
Licensing and Regulation
217 East Redwood Street
Baltimore, Maryland 21202

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

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