[Federal Register: December 4, 2002 (Volume 67, Number 233)]
[Notices]
[Page 72222-72234]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04de02-89]
-----------------------------------------------------------------------
DEPARTMENT OF LABOR
Office of the Secretary
Submission for OMB Emergency Review; Comment Request
November 27, 2002.
The Department of Labor (DOL) has submitted the following (see
below) information collection request (ICR), utilizing emergency review
procedures, to the Office of Management and Budget (OMB) for review and
clearance in accordance with the Paperwork Reduction Act of 1995 (Pub.
L. 104-13, 44 U.S.C. Chapter 35). OMB approval has been requested by
December 23, 2002. Attached is a copy of the proposed application
procedures for the National Emergency Grants for Trade Health Insurance
Assistance. A copy of this ICR, with applicable supporting
documentation and application procedures, may be obtained by calling
the Department of Labor. To obtain documentation, contact Darrin King
on 202-693-4129 or e-mail: king-darrin@dol.gov.
Comments and questions about the ICR listed below should be
forwarded by December 20, 2002 to the Office of Information and
Regulatory Affairs, Attn: OMB Desk Officer for the Employment and
Training Administration, Room 10235, Washington, DC 20503. The Office
of Management and Budget is particularly interested in comments which:
[sbull] Evaluate whether the proposed collection of information is
necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility;
[sbull] Evaluate the accuracy of the agency's estimate of the
burden of the proposed collection of information, including the
validity of the methodology and assumptions used;
[sbull] Enhance the quality, utility, and clarify of the
information to be collected; andminimize the burden of the collection
of information on those who are to respond, including through the use
of appropriate automated, electronic, mechanical, or other
[[Page 72223]]
technological collection techniques or other forms of information
technology, e.g., permitting electronic submissions of responses.
Agency: Employment and Training Administration (ETA).
Title: Workforce Investment Act: National Emergency Grants for
Trade Health Insurance Assistance-Application and Reporting Procedures.
OMB Number: 1205-0NEW.
Affected Public: State, Local, or Tribal Government.
----------------------------------------------------------------------------------------------------------------
Number of Annual Average time Total annual
Reference respondents * Frequency responses * per response burden hours *
----------------------------------------------------------------------------------------------------------------
Narrative Summary............ 50 On occasion..... 50 1.0 hour....... 50.0
ETA 9103..................... 50 On occasion..... 50 90 minutes..... 75.0
ETA 9105..................... 50 On occasion..... 50 30 minutes..... 25.0
ETA 9106..................... 50 On occasion..... 50 1.0 hour....... 50.0
Reports: ETA 9104............ 50 Quarterly....... 200 30 minutes..... 100.0
Grant Modifications.......... 40 On occasion..... 40 30 minutes..... 20.0
-----------------
Total.................. .............. ................ 440 ............... 320
----------------------------------------------------------------------------------------------------------------
* Actual number will vary, because the information collection is required to obtain a benefit.
Total Burden Cost (capital/startup): $0.
Total Burden Cost (operating/maintaining): $0.
Description: The Department of Labor/Employment and Training
Administration announces proposed application and reporting procedures
for states to enable them to access funds in order to implement Trade
Health Insurance Assistance National Emergency Grant (NEG) programs.
Trade Health Insurance Assistance NEG funds provide specialized
assistance, including health insurance coverage, to trade-impacted
workers and other individuals eligible under the Trade Adjustment
Assistance Reform Act of 2002.
Ira L. Mills,
Departmental Clearance Officer.
Attachment--Workforce Investment Act: Application Procedures for Trade
Health Insurance Assistance National Emergency Grants
Overview
This application package provides information and procedures by
which states can apply for newly authorized National Emergency Grant
(NEG) funds to provide health insurance assistance and related support
services to certain eligible individuals. It consists of the following
eight parts and two appendices:
[sbull] Part I provides background regarding the purpose and use of
National Emergency Grant (NEG) funds to provide health insurance
assistance for eligible individuals under the Trade Adjustment
Assistance Reform Act of 2002 (Pub. L. 107-210);
[sbull] Part II describes key policies regarding eligible
individuals for assistance, allowable uses of grant funds, eligible
entities for grant awards, and coordination;
[sbull] Part III identifies the policies governing administrative
and project design requirements on Health Insurance Assistance NEGs;
[sbull] Part IV provides an overview of the application submission
requirements for Health Insurance Assistance NEG projects;
[sbull] Part V identifies the elements in the application review
process including the criteria that will be used to determine the
appropriateness of the request for funds;
[sbull] Part VI describes alternative approaches to grant funding
and the requirements associated with partial funding requests and
actions;
[sbull] Part VII describes the follow-up planning, oversight and
reporting requirements for awarded grants;
[sbull] Part VIII describes the grant modification process.
Appendix A contains copies of the required grant application forms.
States are not required to submit these forms until OMB approval has
been obtained. The forms are in an electronic format for ease of
completion and timeliness of submission by the applicant. The
Department seeks to establish a process that provides both timely
submission of applications for funding, in relation to worker
eligibility for assistance, and timely processing of such applications.
The electronic formats have been developed to facilitate accomplishment
of this objective.
Appendix B contains a directory of Regional Office contacts.
A companion piece to this document, Training and Employment
Guidance Letter (TEGL) 10-02, was issued on October 10, 2002. It
provides information and procedures by which states may apply for newly
authorized NEG system-building funds to develop and implement the
infrastructure needed to make the health insurance assistance
authorized in the Trade Act of 2002 available.
Applications for NEG funds to provide the assistance described in
this notice may be submitted at any time. The maximum allowable project
performance period is defined by the months remaining in the Program
Year in which the grant award is made plus the subsequent two Program
Years. The ProgramYear for these projects is the twelve month period
July 1-June 30. USDOL/ETA expects that the project performance period
in any NEG application will reflect a time efficient approach to
returning eligible individuals to appropriate employment consistent
with the performance goals that apply to NEG projects.
The application procedures, application review process, and project
oversight and reporting requirements described in this notice are
issued under the WIA regulations at 20 CFR 671.125.
Applications may be filed electronically using the website http://testetareports.doleta.gov.
To submit an application electronically,
applicants will need to use a PIN that has been assigned to
them by USDOL. A PIN can be obtained by contacting the
appropriate Regional Office. Alternatively, applications may be mailed
or hand-delivered to: Office of Grants and Contracts Management,
Division of Federal Assistance, Employment and Training Administration,
U.S. Department of Labor, Room S-4203, 200 Constitution Avenue, NW.,
Washington, DC 20210; Attention: E. Fred Tello, Grant Officer.
Applications may also be FAXed to the attention of Mr. Tello at (202)
693-2879. Applicants submitting by mail should be aware that mail
delivery in the Washington, D.C. area may be delayed due to
decontamination procedures. For non-electronic applications, a copy of
the application should be concurrently submitted (via e-mail, mail, or
FAX) to
[[Page 72224]]
the appropriate Regional Administrator of USDOL/ETA.
For further information you may contact Shirley M. Smith,
Administrator, Office of National Response at (202) 693-3501. (This is
not a toll-free number.) A user's guide on preparing and submitting an
application electronically, and technical assistance on application
requirements are available from Regional Offices of ETA and from the
Office of National Response, Employment and Training Administration,
U.S. Department of Labor, Room N-5426, 200 Constitution Avenue, NW.,
Washington DC 20210.
Part I: Background
The Trade Adjustment Assistance Reform Act of 2002 (Pub. L. 107-
210), (the Act) was signed by the President on August 6, 2002. Title I
of the Act amends the Trade Act of 1974 to consolidate the prior TAA
and NAFTA-TAA programs into one comprehensive program of assistance.
The Act expands the eligibility for TAA to additional groups of workers
and enhances the assistance available under the program. Title II of
the Act amends the Internal Revenue Code of 1986 and the Workforce
Investment Act of 1998 (WIA) to establish new mechanisms by which
certain TAA participants, as well as eligible Pension Benefit Guaranty
Corporation (PBGC) pension recipients, can receive assistance in
covering the cost of health insurance.
The primary mechanism for such assistance is a federal tax credit
to be administered by the Internal Revenue Service. The tax credit is
equal to 65% of the amount paid by an eligible individual for coverage
of the individual and certain family members under qualified health
insurance. The tax credit is applicable to qualified health insurance
coverage costs paid by eligible individuals beginning December 2002,
and the credit is to be made available on an advance payment basis by
August 1, 2003. The provisions related to this tax credit are contained
in Sections 201 and 202 of the Act.
The Act also establishes an additional mechanism, which is intended
to be used as a bridge to when eligible individuals can receive the tax
credit on an advance basis, by authorizing the use of NEG funds under
the WIA to assist in paying the cost of qualified health insurance
coverage for eligible individuals. These provisions are contained in
section 203 of the Act, which establishes a new section 173(g) of WIA.
Section 203 of the Act identifies the specific groups of
individuals who are eligible to receive the health insurance coverage
assistance and the types of health insurance coverage programs that can
qualify for this assistance. They are described in more detail in Part
II of this document.
The approach to Health Insurance Assistance NEG grant awards will
be based on quick turnaround initial funding actions where the
following can be demonstrated:
[sbull] The individuals to receive assistance with grant funds are
currently eligible to receive such assistance;
[sbull] The costs of heath insurance coverage assistance,
processing payments to providers, and other allowable services are
reasonable.
USDOL/ETA is committed to making a decision to approve or
disapprove all submitted applications within 15 working days from
receipt of a complete application. However, because of the variation
between initial planning assumptions and subsequent implementation that
has historically characterized NEGs, most applications for Trade Act
Health Insurance coverage assistance will be partially funded at the
outset. Approximately 90 days following grant award, a site review will
be conducted to assess implementation status. This review will help
verify the full amount of NEG funding needed.
Part II: Policies Governing the Award and Use of NEG Funds
A. Eligible Individuals for Assistance
In general, individuals eligible for health insurance coverage
assistance under the Trade Adjustment Assistance Reform Act are:
--``An eligible TAA recipient'' which is defined as an individual who
is receiving a trade readjustment allowance (TRA) under the TAA
program, or would be eligible for TRA except that he/she has not yet
exhausted Unemployment Insurance benefits;
--``An eligible alternative TAA recipient'' which is defined as an
individual who is receiving benefits under a demonstration program of
alternative trade adjustment assistance for older workers under section
246 of the Trade Act of 1974 (as amended by the Act), although it
should be noted that the demonstration program does not commence until
August 6, 2003; or
--``An eligible PBGC pension recipient'' which is defined as an
individual who is 55 years of age or older and is receiving a pension
benefit paid in whole or part by the Pension Benefit Guaranty
Corporation (PBGC).
Coverage may also be provided for the spouse and dependents of an
eligible individual where such persons are not otherwise covered by
health insurance. Dependents are limited under the law to those persons
who are allowable dependent deductions on the eligible individual's tax
return.
B. Allowable Uses and Limitations on the Use of NEG Funds
In general, NEG funds provided under section 173(g) may be used to
provide assistance and support services to eligible individuals,
including qualifying health insurance coverage, transportation,
childcare, dependent care and income assistance. For both health
insurance coverage and income support assistance, the assistance cannot
supplant other federal, state, or local assistance for which the
individual is eligible.
In order to promote consistency with, and a transition to, the
advance payment tax credit and to conserve NEG resources in a manner
that will allow broad participation by the states and eligible
individuals, these NEG funds may be used to pay no more than 65% of the
amount paid by an eligible individual for qualified health insurance
coverage of the eligible individual and qualifying family members. This
is the same level of assistance provided under the tax credit
mechanisms and is intended to fulfill the objective of this NEG of
providing a bridge to the advance payment tax credit mechanism.
In addition, the Department would generally expect the assistance
provided under the NEG would be for prospective coverage, that is for
payments for coverage for months after the individual has been
determined eligible for assistance under the NEG. In extraordinary
cases, as demonstrated by the applicant, the Department would consider
the use of NEG funds to pay reimbursement for qualified health
insurance coverage premium payments that were made for coverage on or
after September 1, 2002. However, to qualify for such reimbursement,
the individual would have to be determined to have met the eligibility
requirements at the time such prior premiums were paid.
C. Qualified Health Insurance Coverage
In general, NEG funds can be used to pay for the following types of
health insurance coverage assistance:
(1) Coverage under a COBRA continuation provision.
(2) Coverage under a state-based continuation provision.
(3) Coverage through a qualified state high risk pool.
(4) Coverage under a program offered to state employees.
[[Page 72225]]
(5) Coverage under a state-based health insurance program
comparable to a program for state employees.
(6) Coverage through an arrangement between a state and
--A group health plan
--An issuer of healthcare coverage
--An administrator, or
--An employer
(7) Coverage offered through a state arrangement with a private
sector healthcare coverage purchasing pool.
(8) Coverage under a state-operated health plan that does not
receive any Federal financial participation.
(9) Coverage under a group health plan that is available through
the employment of the eligible individual's spouse.
(10) Coverage under individual health insurance in which the
eligible individual was enrolled during the entire 30 day period
preceding the date of separation by which the individual became
eligible for TAA assistance.
The health insurance coverage mechanisms described under items (2)
through (8) will only qualify for assistance under an NEG if the state
elects to establish and/or use those mechanisms and the coverage meets
certain requirements. Those requirements are contained in the new
section 173(f)(2)(B)(i) of WIA, and require that under such coverage a
``qualifying individual'' is (1) guaranteed enrollment; (2) no pre-
existing conditions are imposed; (3) the premium charged is
nondiscriminatory (i.e., a qualifying individual is not charged a
greater amount than a similarly situated individual who is not a
qualifying individual); and (4) the benefits are the same or
substantially similar to similarly situated individuals who are not
qualifying individuals. The term ``qualifying individual'' is defined
in the new section 173(f)(2)(B)(ii) of WIA, and means an individual who
is eligible for assistance under the NEG and who, as of the date the
individual seeks to enroll in one of these elected coverage mechanisms,
had an aggregate period of creditable health insurance coverage (as
defined in section 9801(c) of the IRC) of three months or longer. The
individual also must not have other specified coverage or be
imprisoned.
States must decide whether to elect to include all, some, or none
of the coverage mechanisms described in items (2) through (8). States
are encouraged to give consideration to these optional coverage
mechanisms and evaluate their appropriateness in light of the
particular circumstances in the state. The elected coverage mechanisms
must be identified in the NEG application. The coverage mechanisms
described in items (1), (9), and (10) qualify for assistance under the
NEG without election by the state.
D. Eligible Entities for Grant Awards
In order to ensure coordination with the state system-building
grants described in TEGL 10-02, eligible applicants for Health
Insurance Assistance projects under this notice are limited to states.
The award of these grants will be expedited where the application
for the NEG funds is submitted by the grant recipient under the current
NEG Master Agreement between the Department and the State. This is not
intended to limit the State regarding the participation in, or
administration of, activities carried out under the NEG by other
entities, including appropriate State agencies. For example, through
subgrants or the interagency transfer of NEG funds, the Governor may
decide to have other agencies provide aspects of the health insurance
coverage assistance. However, the use of the currently designated grant
recipient as the applicant ensures that the procedures necessary to
facilitate the award of funds are in place.
E. Coordination
The Department strongly encourages efforts by the State to
coordinate the provision of assistance under this NEG with the
activities of appropriate State agencies, such as the State insurance
commission, the State health licensing and regulatory board or entity,
and other departments or entities involved in the provision of health
insurance coverage.
Part III: Administrative and Project Design Requirements
1. General
Grantee organizations, administrative entities and service
providers are subject to the WIA law, regulations, grant application
instructions, the terms and conditions of the grant and any subsequent
modifications, and to all other applicable Federal laws (including
provisions in Federal appropriations law). Since eligible applicants
are limited to states, Health Insurance Assistance NEG grantees will be
subject to all administrative system requirements that apply to the use
of WIA formula funds for dislocated workers, except as otherwise
provided in these instructions.
2. Cost Limitations
Administrative cost limitations apply to all NEG grant awards. Cost
limitations shall apply to actual expenditures.
Although administrative cost limits on NEG projects are subject to
negotiation with the Grant Officer, in general, a ten percent (10%)
limit will apply. Any request for a higher limit will have to be
clearly and fully justified in terms of unusual project operating
circumstances. Applicants should recognize that any such request will
have to be negotiated with the Grant Officer and will delay the timing
of the funding action.
Any costs associated with administering a system of health
insurance coverage payments must be separately identified in the
application budget and justified in the narrative.
3. Indirect Costs
If an indirect cost rate is applied in calculating administrative
costs, the applicant must include information from the most recent
approval document that identifies the approved indirect cost rate and
base, the cognizant approval agency, and the date of the approval.
Generally, indirect costs will only be approved at the grantee level.
4. Allowable Activities and Services
For Health Insurance Assistance projects, funds may be used for the
services described in WIA section 173(g).
5. Project Design and Service Operations
Provision of services, in addition to health insurance coverage
assistance, should be consistent with similar services provided under
WIA including established policies and procedures of the state and
local area(s) in which the project is to operate.
Part IV: Application Submission Requirements
In order to be considered for funding, a Health Insurance
Assistance NEG application will need to include the following
information:
a. Completed and signed SF 424-Application for Federal Assistance.
This form is the required application for federal funds. Where the
electronic submission option is used, the authorized signatory of the
applicant will be issued a unique Personal Identification Number (PIN).
The entry of this PIN on the SF 424 will constitute authorized
signature.
b. Project Synopsis (ETA 9106). This form summarizes key aspects of
the proposed project such as project type, planned number of
participants, and contact information. It also includes identification
of the types of health insurance coverage options that will be
available to project participants.
[[Page 72226]]
c. Employer Data (ETA 9105). This form provides information on the
TAA petition and certification through which individuals are eligible
for assistance.
d. Planning Form (ETA 9103). This form provides cumulative
quarterly estimates on project scope (e.g., number of participants,
exits), design (e.g., mix of services), and budget (e.g., costs by type
of activity, administrative costs).
e. Narrative Statement. A narrative explanation must be provided in
cases where one or more of the following are reflected in the project
plan:
--Indirect costs are included in the budget, which requires identifying
the following: cognizant approval agency, approved cost rate and base,
and date of approval.
--``Other'' costs are included in the budget, which requires
identifying the specific cost items and amounts.
--Administrative costs related to processing payments for qualified
healthcare coverage and/or income support are included in the budget,
which requires explaining how the administrative cost estimate was
derived (i.e., based on number of check payments and check processing
costs).
In addition, the application must include a narrative description
of coordination activities and arrangements among appropriate state
agencies. The applicant is free to include narrative explanations of
other special factors, but the narrative should not exceed five pages.
A copy of forms that can be used to submit one or more the above
requirements is provided in Attachment A.
Part V: Application Review Process
To be considered for funding, a Health Insurance Assistance NEG
Project application must demonstrate that the proposed project meets
the purpose of and is consistent with the Act and Regulations and
provides all of the information required by these guidelines.
Applications that are not completely in accordance with the
requirements or do not contain all required submission forms will not
be considered as submitted and will not be evaluated for funding until
all required information and documentation is provided. Complete
applications will be evaluated for responsiveness to the criteria
identified in this part.
1. Eligibility: To ensure that NEG funds are only awarded where
there is a verifiable group that is both eligible and in need of
assistance.
a. TAA certifications and/or other appropriate documentation to
demonstrate eligibility is either provided in the application or can be
accessed from other sources in DOL/ETA.
2. Reasonableness of Proposed Services and Costs: To ensure that
NEG projects are designed and operated in accordance with the federal
requirements and the state and local policies that apply to trade
adjustment assistance programs in the proposed project area.
a. The indirect costs are justified by identifying: (1) The
approved indirect cost rate and base; (2) the cognizant approval
agency; (3) the date of the approval.
b. ``Other'' expenditures that are included in the budget are
identified and justified in the narrative.
c. Total administrative costs, exclusive of health insurance
premium processing costs, are within the cost limitation, OR are
explained and justified.
d. The basis for administrative costs to process health insurance
premium payments is justified.
Part VI: Funding Approaches
Applications for NEG funds can be funded in whole or in part. Full
or partial funding can be at the applicant's request or at the
Secretary's discretion. In order to ensure the effective use of NEG
resources, in general these requests, when approved, will be funded
partially. Where the grant award reflects a partial funding action, the
grantee will be required to submit, at a later date, supplemental
information to request the balance of funds. This information will be
specified in the grant award letter but will include, at a minimum,
current information on actual participant levels, performance outcomes,
and expenditures.
Part VII: Post-Grant Award Requirements
A. Followup Planning Requirements
Recipients of a NEG will be required to develop a more complete
project operational plan as followup to the grant award. This plan
should be completed within 90 days of grant award and be available for
review at the office of the grant recipient. The information in this
plan will be used to verify the need for the full amount of requested
funds and the feasibility of the planned levels of performance based on
actual project implementation experience. The content of the plan will
vary by type of project but, in general, will need to address factors
such as participant enrollments, needs of participants for specific
services, implementation schedules, project operator agreements and
budgets, and project management structure.
B. Project Oversight
In addition to the 90 day review of the Project Operational Plan,
each project will be reviewed at the project midpoint. The purpose of
this review will be to verify core compliance factors such as
participant eligibility and adequate financial management, and to
assess the effectiveness of participant service policies and processes
in achieving project performance goals.
C. Project Performance Reporting
Each grant recipient will be required to submit to the Grant
Officer a Quarterly Report (ETA 9104) on actual performance to-date.
The report will include the same factors as the Planning Form in the
grant document. A copy of this form is included in Appendix A.
Part VII: Grant Modifications
Grant modifications will be required in the following
circumstances:
--When end-of-project performance is expected to vary by more than 10%
from the approved plan regarding: Total participants, participants to
be enrolled in training, or expenditures for retraining;
--To increase the number of participants receiving health insurance
premium assistance and/or the amount of expenditures for health
insurance premium assistance;
--To increase the approved amounts of administrative costs;
--To change the performance period for the project;
--When actual end-of-project expenditures will be less than the amount
of awarded funds.
Grant modifications must be submitted to the Grant Officer. They
may be submitted in writing or electronically.
Grant modifications will not be accepted within 90 days prior to
the scheduled expiration date of the project.
Where there is a need to increase the amount of approved funding
and/or to expand the target group to include additional layoffs, these
will have to submitted as a new request for funds.
Appendix A--e-Application and Reporting Forms
A. Application for Federal Assistance Form (SF 424)
BILLING CODE 4510-30-P
[[Page 72227]]
[GRAPHIC] [TIFF OMITTED] TN04DE02.044
[[Page 72228]]
[GRAPHIC] [TIFF OMITTED] TN04DE02.045
[[Page 72229]]
[GRAPHIC] [TIFF OMITTED] TN04DE02.046
[[Page 72230]]
[GRAPHIC] [TIFF OMITTED] TN04DE02.047
[[Page 72231]]
[GRAPHIC] [TIFF OMITTED] TN04DE02.048
[[Page 72232]]
[GRAPHIC] [TIFF OMITTED] TN04DE02.049
[[Page 72233]]
[GRAPHIC] [TIFF OMITTED] TN04DE02.050
[[Page 72234]]
[FR Doc. 02-30660 Filed 12-3-02; 8:45 am]
BILLING CODE 4510-30-C