[Federal Register Volume 62, Number 68 (Wednesday, April 9, 1997)]
[Notices]
[Pages 17204-17207]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8976]


-----------------------------------------------------------------------

DEPARTMENT OF LABOR

Employment and Training Administration


Work-Flex Partnership Demonstration Program; Availability

AGENCY: Employment and Training Administration, DOL.

ACTION: Request for Applications for Work-Flex Designation.

-----------------------------------------------------------------------

SUMMARY: Applications are invited from States under the Workforce 
Flexibility Partnership Demonstration Program (Work-Flex) which is 
authorized under the Department of Labor Appropriations Act of 1997 
(Pub. L. 104-208). The Secretary may authorize Work-Flex waivers in not 
more than six States, of which at least three must have populations not 
in excess of 3,500,000, with preference given to those States 
designated as Ed-Flex Partnership States under Goals 2000: Educate 
America Act (Pub. L. 103-227). Work-Flex designation will be made 
pursuant to an application and plan submitted by the State for the 
provision of workforce employment and training activities which is 
approved by the Secretary.

DATES: The deadline for submittal of applications will be May 30, 1997, 
close of business. After that date, applications will be accepted only 
if: (1) Fewer than 6 States apply: (2) fewer than 3 States

[[Page 17205]]

with a population under 3,500,000 apply; or (3) fewer than 6 proposals 
received by that date are approved by the Secretary.

ADDRESSES: Applications must be submitted to the U.S. Department of 
Labor, Employment and Training Administration, Office of Job Training 
Programs, 200 Constitution Avenue, N.W., Room N4459, Attention: Work-
Flex Application, Washington, DC 20210.

FOR FURTHER INFORMATION CONTACT:
James M. Aaron, Director, Office of Employment and Training Programs, 
200 Constitution Avenue N.W., Washington, DC 20210, (202) 219-5580 
(this is not a toll-free number).

SUPPLEMENTARY INFORMATION: 

Background

    The specific provision authorizing the Work-Flex program is as 
follows:

    ``* * * the Secretary of Labor shall establish a workforce 
flexibility (Work-Flex) partnership demonstration program under 
which the Secretary shall authorize not more than six States, of 
which at least three States shall each have populations not in 
excess of 3,500,000, with a preference given to those States that 
have been designated Ed-Flex Partnership States under section 311(e) 
of Public Law 103-227, to waive any statutory or regulatory 
requirement applicable to service delivery areas or substate areas 
within the State under titles I-III of the Job Training Partnership 
Act (except for requirements relating to wage and labor standards, 
grievance procedures and judicial review, non-discrimination, 
allotment of funds, and eligibility), and any of the statutory or 
regulatory requirements of sections 8-10 of the Wagner-Peyser Act 
(except for requirements relating to the provision of services to 
unemployment insurance claimants and veterans, and to universal 
access to basic labor exchange services without cost to job 
seekers), and for a duration not to exceed the waiver period 
authorized under section 311(e) of Public Law 103-227, pursuant to a 
plan submitted by such States and approved by the Secretary for the 
provision of workforce employment and training activities in the 
States, which includes a description of the process by which service 
delivery areas and substate areas may apply for and have waivers 
approved by the State, the requirements of the Wagner-Peyser Act to 
be waived, the outcomes to be achieved and other measures to be 
taken to ensure appropriate accountability for federal funds.''
    The Work-Flex program is a demonstration program under which the 
Secretary may grant six States the authority to waive certain statutory 
or regulatory requirements applicable to service delivery areas or 
substate areas within the State under titles I-III of the Job Training 
Partnership Act (JTPA) or sections 8-10 of the Wagner-Peyser Act (W-P 
Act). The legislation also contains certain provisions that may not be 
waived under the JTPA and the W-P Act. The types of these non-waivable 
provisions and the specific provisions are discussed below.
    The granting of authority to issue waivers is intended to provide 
flexibility to States to enhance the development of a comprehensive 
workforce development system and to improve the quality and quantity of 
outcomes for persons served. The legislation provides that at least 
three of the six States shall have a population not in excess of 
3,500,000 and that preference be given to States designated under Ed-
Flex. The States proposal for workforce development system improvement 
must provide a description of the process by which service delivery 
areas and substate areas may apply for and have waivers approved: 
examples of the requirements of JTPA and the requirements of the W-P 
Act to be waived; the outcomes to be achieved; and the measures to be 
taken to ensure appropriate accountability for Federal funds.
    The Department is very interested in working with States within the 
statutory authority to make improvements in the workforce delivery 
system. To this end, the Department wants the States to know it will 
actively consider applications which will assist the State and its 
local service delivery structure in implementing workforce delivery 
system improvements. The Department of Labor's guiding principles for 
reform of the job training systems include:
     Individual Opportunity and Customer Choice. Empowering 
participants who need employment and training services with the 
resources and information needed to make good choices.
     Leaner Government. Replacing separate programs with 
streamlined systems for youth and adults, organized around the 
principles espoused by the School-to-Work and One-Stop concepts.
     Greater Accountability. Ensuring a clear focus on results, 
not process, through mutually agreed upon improved performance 
outcomes.
     State and Local Flexibility. Provides States, local 
communities and training systems with the freedom to tailor programs to 
meet real, locally determined needs.
     Strong Private Sector Roles. Ensuring that business, labor 
and community organizations are full partners in systems design and 
quality assurance.
    Finally, the Department wishes to remind the States of the 
importance of maintaining programs for the disadvantaged and dislocated 
workers, maintaining adequate and comparable reporting and, within the 
School-to--Work framework, providing work opportunities, especially 
during the summer months, to disadvantaged youth.

Application Requirements and Criteria

    1. Who may apply and when may applications be submitted? Any State 
may apply for designation as a Work-Flex State. As required under the 
legislation and as discussed below, preference will be given to States 
designated by the Secretary of Education as Ed-Flex States. Initially, 
applications will be received until May 30, 1997. Since the Secretary 
may delegate waiver authority to only six States, applications will be 
accepted after the date only if: (1) fewer than six States apply; or 
(2) fewer than three States apply with a population under 3,500,000 or 
(3) fewer than six applications received by May 30 are approved by the 
Secretary. Please note that not more than a total of six States will be 
designated under Work-Flex. If six applications are approved in FY 
1997, no additional designations will be made. If six States are not 
designated in FY 1997, and proposed language in the 1998 budget is 
approved, additional States up to a total of six may be designated.
    Single SDA States with one State-wide SDA/SSA may apply for Work-
Flex designation. In such States, the application must specify the 
entity which may request such waivers (typically the SJTCC or portion 
thereof which serves as the Private Industry Council). The Department 
recommends that States which have a single SDA identify a different 
body with responsibility for mailing decisions on requested waivers.
    2. What information should be included in a State's Work-Flex 
proposal? To be considered for designation as a Work-Flex State, the 
Governor must submit an application to the Secretary. This application 
must include the following:
    a. Plan. A plan for the provision of workforce employment and 
training activities for the State. This may be a summary of the State 
plan for employment and training activities, but should be in 
sufficient detail to describe how the State envisions using the Work-
Flex authority to enhance the development of a comprehensive employment 
and training system.
    b. JTPA Requirements. A description of the process by which service 
delivery areas and substate areas may apply for and have waivers 
approved; and

[[Page 17206]]

    c. W-P Act Requirements. A description of the specific requirements 
in Section 8, 9 and 10 of the W-P Act and applicable regulations to be 
waived.
    d. Specific Elements to be Addressed. To be responsive to the 
above, the application must contain a specific description of the 
process and requirements for JTPA and W-P Act waivers (as appropriate), 
including:
    (1) Identification of the State official designated by the Governor 
who would have authority to grant requested waivers, including 
documentation that the Governor has granted the official such 
authority;
    (2) Requirements for application for a waiver by service delivery 
areas and substate areas;
    (3) Identification of the JTPA requirement(s) for which the 
waiver(s) will likely be requested (either specific, if known, or 
examples);
    (4) Description of the criteria for approval of waivers, including 
a description of the process for assuring that waivers proposed for 
approval are not prohibited by the provisions of legislation (including 
requirements of legislation other than JTPA), or provisions under which 
the Work-Flex authority is granted;
    (5) Process for providing an opportunity for public review and 
comment;
    (6) Requirement(s) for identification of improvement in outcomes to 
be expected as the result of granting a waiver, including how the 
baseline will be established and what data sources will be used;
    (7) Measures to be taken to ensure the appropriate accountability 
for federal funds and reporting;
    (8) Procedures that the State will use to monitor and evaluate the 
implementation of waivers by local areas, including the outcomes to be 
achieved;
    (9) A statement of State legislative, regulatory or other 
impediments to administration of the waiver authority sought and 
planned State action to resolve such matters; and
    (10) Assurance that the State has the capacity to administer the 
waiver system.
    As provided in the legislation, certain provisions are not subject 
to waiver under Work-Flex. For the JTPA, these include requirements 
relating to wage and labor standards, grievance procedures, judicial 
review, nondiscrimination, allotment of funds and eligibility. Also, 
waiver authority must be requested by and granted to service delivery 
areas or substate areas. State responsibilities or programs operated 
under statewide authority are not subject to waiver under this program. 
For example, this includes designation of service delivery areas or 
substate areas, the State planning process, the State Education and 
Coordination grants under section 123, the Services to Older 
Individuals under section 204(d), the Title III funds reserved for 
State activities (Governors' Reserve) under section 302(c) and grants 
awarded to States with Title III National Reserve Account (NRA) funds.

    Note: Some provisions (such as certain State responsibilities) 
not subject to waiver under the Work-Flex authority may be eligible 
for waiver under the other new statutory or regulatory waiver 
authority included in the Appropriations Act. For example, a State 
may apply for waivers for State-based programs. Such general waiver 
requests may be submitted as part of the Work-Flex proposal or may 
be submitted separately. General waiver requests will be reviewed in 
the context of the requested Work-Flex authority, but will be 
subject to the one-year limit applicable to such general waivers.

    For the W-P Act, only the requirements of section 8-10, which 
relate to the development, review and approval of State plans, 
recordkeeping and reporting may be waived. The law also specifically 
excludes from waivers any requirements relating to provision of 
services to unemployment insurance claimants and veterans and to 
universal access to basic labor exchange services without cost to job 
seekers.
    (e) Public Consultation and Comment Process. The Department expects 
the State to involve the local elected officials, the private industry 
councils, and community-based organizations and other stakeholders in 
the process when developing the Work-Flex application. Consistent with 
the general waiver request, the State must provide interested parties 
an opportunity to review and comment on the proposed application. At a 
minimum, the following groups must be afforded the opportunity to 
review and comment on the proposed application: (1) The State Job 
Training Coordinating Council; (2) each house of the State legislature; 
(3) local elected officials and Private Industry Councils; (4) 
appropriate local education and other public and non-profit agencies in 
the service delivery areas; and (5) labor organizations in the area 
which represent employees having the skills in which training is 
proposed and public sector unions, where they may be affected. Also, 
the proposed application must be made reasonably available to the 
general public through such means as public hearings and local news 
facilities.
    The Work-Flex authority is intended to provide States with the 
ability to enhance the development of a comprehensive workforce 
development system, including implementation of the One-Stop Career 
Center system and the School-to-Work system. Another area of importance 
is the area of improving both the quality and quantity of outcomes of 
individuals served. Both of these will be of substantial importance in 
reviewing of proposals requesting the granting of the Secretary's 
authority for issuing waivers under Work-Flex.

Criteria for Evaluation of Work-flex Applications

    Criteria for evaluation of Work-Flex proposals include:
    1. Plan and Outcomes. The extent to which the authority sought will 
result in:
    a. Improving the outcomes to persons served, and
    b. Enhancing implementation of a comprehensive workforce 
development system in one or more areas.
    The extent to which the authority sought will enhance the 
implementation of the One-Stop Career Center system and/or the School-
to-Work system will be major factors in the evaluation of proposals.
    2. Responsiveness. The extent to which the application meets the 
requirements of the legislation and this Notice for submission of an 
application. This includes the quality of the process for reviewing and 
approving local applications for waivers and for documenting and 
monitoring the results of waivers.
    3. Accountability of Funds. Measures to be taken to ensure the 
accountability of federal funds, including monitoring, evaluation and 
reports.
    4. Preference for Ed-Flex States--Tie-Breaking Procedures. 
Proposals will be evaluated based on the quality and specificity of the 
proposal. In the event that proposals submitted are judged to be 
substantially equal, preference will be given to States designated as 
Ed-Flex States on or before May 30, 1997.
    5. Public Comments. All comments received on the application should 
be forwarded with the application to the Department of Labor together 
with the State's disposition of such comments.

Conditions

    1. Federal Review of Work-Flex Waivers Granted. In applying for 
waivers, States must recognize that the impact of the use of Work-Flex 
authority to achieve goals and outcomes specified in the State proposal 
will be reviewed annually against stated goals. The Department reserves 
the right to

[[Page 17207]]

withdraw the authority to issue waivers if: goals specified are not met 
for two consecutive years; or the State grants waivers for non-waivable 
provisions or for provisions of other legislation not subject to 
waiver.
    2. Duration and Coverage. Work-Flex authority may be granted for up 
to five years. States granted such authority may approve waivers 
requested from all service delivery areas or substate areas or from 
selected areas.
    3. Notification of the Granting of Waivers. States will be required 
to submit reports on a semi-annual basis concerning the administration 
of the waiver authority and on the accomplishments under this 
authority. After one year, annual reporting will be required. States 
shall notify the appropriate ETA Regional Administrator of the granting 
of a waiver(s) semi-annually. This notification shall include the area 
for which the waiver is granted, the provision of legislation and/or 
regulation waived and the duration of the waiver.
    4. Federal Assistance. States are encouraged to regularly consult 
with the ETA Regional Office regarding any matters in which the 
discussion and assistance in the Work-Flex administration would be 
useful. Because Work-Flex is an important demonstration program with 
implications for future job training and employment service delivery, 
it is important that Work-Flex be tested to ensure that appropriate 
accountability can be maintained. ETA Regional staff will be 
responsible for providing information on Work-Flex administration and 
implementation. States granted Work-Flex authority are strongly urged 
to work closely--on an ongoing basis--with Regional Office staff so 
that both the federal and State partners are fully informed on the 
status and issues under Work-Flex. States may be asked to participate 
with ETA staff in designing and conducting the planned evaluation of 
the effectiveness of Work-Flex.

    Dated: April 2, 1997.
Raymond J. Uhalde,
Acting Assistant Secretary of Labor.
[FR Doc. 97-8976 Filed 4-8-97; 8:45 am]
BILLING CODE 4510-30-M