Mr. Doug Jameson
Secretary
Florida Department of Labor and Employment Security
2012 Capital Circle, Southeast
Suite 303, Hartman Building
Tallahassee, Florida 32399-2152

Dear Mr. Jameson:

I am pleased to offer Florida JTPA waiver approvals in response to Governor Chiles' April 30, 1997 request. This could not have been done without the vision, strategy and planning that was produced by the local, State, and Federal (national and regional staff) partnership, of which it has been our pleasure to be a part. I thank you for your and your staff's hard work and patience.

The State's request was considered under the special appropriations act provision 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 JTPA funds available for expenditure during the period July 1, 1997 through June 30, 1998, and, therefore, could affect the JTPA Grant Agreements for Program Year (PY) 1997, 1996 and 1995 funds, depending on fund availability during the waiver period. Enclosed you will find an overview and our disposition with regard to each of your requests, as well as copies of our formal response to the Governor. Enclosed also is a grant modification (3 copies) that will require signature by the Governor or the State's JTPA signatory official. Please check off the applicable JTPA grant agreements (PY 97, 96, 95) that the statutory waiver modification will affect. We ask that the documents be signed by the appropriate official and returned to the Grant Officer at the address indicated below:

Mr. James C. De Luca
U.S. Department of Labor - ETA
Office of Grants and Contract Management - DAA
200 Constitution Avenue, N.W,
Room - South 4203
Washington, D.C. 20210





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Upon execution by the appropriate USDOL grant officer, we will return an executed copy for the State's official files. This modification is effective July 1, 1997.

We applaud Florida's efforts to focus on a workforce vision and the development of a strategy to meet that vision. Waivers, of course, are only a small part of this strategy. We will continue to work with Florida to reach these goals. We expect that these reforms will continue to reflect the Department of Labor's guiding principles: individual opportunity and customer choice; leaner government; greater accountability; State and local flexibility; and strong private sector roles.

This is a living document. As we continue our partnership be sure to let us know if additional waivers or other action would be beneficial.

Sincerely,





Toussaint Hayes
Regional Administrator


Enclosures




OVERVIEW

The JTPA Grant Agreement between the Governor and the Department will be modified upon the Governor (or his designee) signing the attached Modification. The granted waivers are authorized for the period of Program Year 1997. In exchange for these waivers Florida is expected to meet the agreed upon performance improvements. Below is a discussion, including the disposition, of all of the State's waiver requests.

Requests to waive program design components were honored except in the case where the request conflicted with the Secretary's statutory waiver authority, the Department's guiding principles for waivers and the One-Stop Career Centers and School-to-Work Systems principles. Administrative waivers were granted in such a manner as to maintain fiscal responsibility and accountability.

These waivers are based upon the Governor's request, meetings and discussions among staff, and the Department's familiarity with the program in Florida. They do not necessarily constitute an endorsement of the examples in Florida's waiver request. In several instances, the Department would recommend against the interventions proposed. For example, most research would caution against general use of stand-alone work experience, job search or on-the job training interventions, particularly for youth without a high school diploma or its equivalent. The Department continues to strongly encourage educational components for youth participants.

WAIVERS

A. As requested, 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 Florida 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.

These provisions were developed to provide some uniformity in systemwide measurement for the limited number of States that receive such waivers. The guidelines make provisions pertaining to: universal reporting; reporting elements, formats, and electronic media; reporting deadline; out-of-state placements; required core performance measures; adjustments to performance standards; alternative incentives and sanctions policy; sampling or baseline data for national follow-up measures; performance improvement; and other provisions deemed appropriate. The revised reporting instructions are attached for use by the State.

B. The State's request to waive the Ratio of Out-of-School to In-School Youth service requirements at JTPA § 263(f)(1) and 20 CFR 628.803(h)(1) has not been granted. It appears that this may be an eligibility requirement and, as such is, excepted under the Secretary's waiver authority granted in the 1997 DOL Appropriations Act. In any event, the Department believes that it is important to provide services to out-of-school youth, and the ratio requirement is the only statutory provision that guarantees services to this target population. Since funding for title II-C youth services has decreased in recent years, the Secretary is not prepared to permit further reduction of services to out-of-school youth by waiving the ratio requirement.

C. The State's request to waive the relocation requirements of JTPA § 141(c)(2) has not been granted. Under the DOL Appropriations Act of 1997, the Secretary does not have authority to waive requirements relating to wage and labor standards, or workers' rights, participation and protection. Even though the State is requesting an exemption for intrastate movement, this exception precludes approval of this waiver request.

D. The State's request for waiver of the provisions at JTPA § 164(a)(3)(B), (C), & (I) has not been granted. Where we have agreed to a waiver of procurement requirements, we have required states to abide by the provisions found in the Office of Management and Budget (OMB) Circular A-102 as codified in the DOL regulations at 29 CFR, Part 97, to ensure financial accountability. The JTPA requirement to minimize the use of sole source procurement to the extent practicable and the requirement for cost and price analysis have comparable provisions in OMB Circular A-102. However, the State has not indicated an intention to follow the OMB Circular 102 requirements.

Further, the State's request for a waiver of the provisions at JTPA § 107(a), which requires that demonstrated performance be a primary consideration in the selection of service providers and that community based organizations (CBOs) be given proper consideration in the selection process, has not been granted. In the case of demonstrated performance, ETA considers this to be an important component in the selection of service providers. In the case of CBOs, historically they have provided integral employment and training services. The State is expected to not only take into consideration the demonstrated performance of entities being considered for funding, but also to include CBOs in the pool of entities being considered for funding.

In addition, waiver of the provision at JTPA § 107(e), which requires that selections be made on a competitive basis to the extent practicable, has not been granted. Competition has a positive impact on the services provided with JTPA monies, by leading to the selection of service providers with the capabilities to provide the services and by resulting in competitive pricing for the purchased services.

E. The State's request to modify the regulatory definition of accrued expenditures found at 20 CFR 626.5 to include payables and purchase orders, etc, has not been granted. To allow such a change would be contrary to our intent to ensure that JTPA funds are expended in a timely manner and that the use of JTPA funds is maximized for the States and localities where there is the greatest need for the funds. This waiver could appear to create the potential for avoidance of the recapture and reallotment provisions under title III.

F. It is not clear that the Secretary has authority to waive her statutory responsibilities for formula allotment and reallotment requirements, including the requirements under Sec. 303 for the recapture and reallotment of unexpended title III formula funds. However, except as noted below, the State's request to waive Sec. 303(b) and 20 CFR 631.12 is not approved for the following policy reasons:



It is noted that Florida was earlier granted a four-year waiver to the regulatory provision at 20 CFR 631.12(a)(1)(ii). This waiver permits the State to carryover prior year funds contingent upon meeting the eighty percent expenditure requirement in the year of allotment. DOL believes a State's policy for recapture and reallocation of unexpended title III funds within a State can accommodate obligations to serve dislocated workers across program years.

G. As requested, 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.

H. As requested, the Secretary waives the prohibition on the payment of nonregular wages for youth at 20 CFR 627.240(c)(2)(iii) and (iv) for youth in on-the-job training provided the State develops procedures which effectively ensure wage standards, labor standards, and worker rights.

I. As requested, 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) when indicated as appropriate in the assessment and individual service strategy for youth in 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. In addition, the State should issue policies to assure that youth OJT opportunities reflect positions with career potential and avoid the introduction of abuses in developing youth OJT slots in low wage, low skill positions which precipitated the enactment of the provisions for which this waiver is requested.

J. As requested, 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), the 15% limitation for title III, at JTPA § 315(c), and the 15% limitation for title II-B, at JTPA § 253(a)(3) and at 20 CFR 627.445(b)(3) of the JTPA regulations will remain in effect. The provisions at § 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 administration cost limitations. 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 are attached for use by the State.

K. 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.

These waivers are open for modification and the Department will also entertain additional requests for waivers during this program year. These waivers apply to the title II and the title III formula programs. However, ETA will consider requests to apply specific waivers to individual title III Secretary's National Reserve Account (NRA) grants which are active during Program Year 1997. In addition, ETA will consider requests to incorporate specific waivers into new individual NRA grants, as appropriate.