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 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.

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 being 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 Secretary will interpret the requirements of 20 CFR 628.803(b) that define in-school youth to include 14 and 15 year-old youth who are not attending school full-time because of expulsion, suspension, or truancy, so long as there is a written agreement with the school system to serve such youth and that services do not include specific vocational training.

D. 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; 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 20 CFR 627.445(b)(3) will remain in effect. 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 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 will be provided to the State.

E. The Governor agrees to continue to require an objective assessment and individual service strategy (ISS) 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 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 standalone activities permitted in paragraphs F. and G. 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 training for youth) which relies on the objective assessment and ISS.

F. 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.

G. 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.

H. 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.

I. The Secretary will apply JTPA § 204(b)(2)(J) and (c)(4), and 20 CFR 627.310(e) to authorize training as a post-termination service contingent upon the Governor: