[Federal Register Volume 68, Number 121 (Tuesday, June 24, 2003)]
[Notices]
[Pages 37553-37567]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-15922]


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DEPARTMENT OF LABOR

Employment and Training Administration


Notice of Availability of Funds and Solicitation for Grant 
Applications (SGA) for Business-Led H-1B Technical Skills Training 
Grants

AGENCY: Employment and Training Administration.
SUMMARY: The Employment and Training Administration (ETA), U.S. 
Department of Labor (DOL), announces the availability of approximately 
$50 million in grant funds for technical skills training programs.
    Technical skills training grants were authorized under the American 
Competitiveness and Workforce Improvement Act of 1998 (ACWIA), as 
amended. Fees paid by employers who bring foreign workers into the 
United States to work in high skill or specialty occupations on a 
temporary basis under H-1B nonimmigrant visas finance these grants. 
Twenty-five percent of the grants are to be awarded to business 
partnerships and seventy-five percent are to be awarded to local 
workforce investment boards established under the Workforce Investment 
Act (WIA).
    This notice applies to the 25 percent of the total funds available 
for technical skills training grants that are required by ACWIA to be 
awarded to business partnerships that consist of at least two 
businesses or a business-related nonprofit organization that represents 
more than one business. The partnership may also include any 
educational, labor, faith-based or community organization, or workforce 
investment board.
    H-1B Technical Skills Training Grants are focused on addressing the 
high skill technology shortages of American businesses and are a long-
term solution to domestic skill shortages in high skill and high 
technology occupations. H-1B Technical Skills Training Grants are aimed 
at raising the technical skills levels of American workers so they can 
take advantage of the new technology-related employment opportunities. 
Raising the skill level of American workers will, in turn, help 
businesses reduce their dependence on skilled foreign professionals 
permitted to work in the United States using H-1B visas. H-1B Technical 
Skills Training Grants are not intended to address labor shortages due 
to reasons other than technical skills shortages.
    At least eighty percent of the grants are to be awarded to projects 
that train workers in high technology, information technology, and 
biotechnology skills, including skills needed for software and 
communications services, telecommunications, systems installation and 
integration, computers and communications hardware, advanced 
manufacturing, health care technology, biotechnology and biomedical 
research and manufacturing, and innovation services.
    Grant funds awarded under the 25 percent provision may be used only 
to carry out a strategy that would otherwise not be eligible for funds 
provided through workforce investment boards under the 75 percent 
provision. Applicants must explain the barriers that prevent them from 
meeting the 75 percent eligibility criteria. An announcement of the 
solicitation for grant applications (SGA/DFA 03-100) for the 75 percent 
of grants to be awarded to local boards was published in the Federal 
Register on January 6, 2003.
    In awarding H-1B Technical Skills Training Grants, every effort 
will be made to fairly distribute grants across rural and urban areas 
and across the different geographic regions of the United States. It is 
anticipated that individual awards will not exceed $3 million.
    This solicitation provides background information and describes the 
application submission requirements, the process that eligible entities 
must use to apply for funds covered by this solicitation, and how 
grantees will be selected.

DATES: The closing date for receipt of applications under this 
announcement is September 22, 2003. Applications must be received at 
the address below no later than 4 pm EST (Eastern Standard Time). Grant 
applications received after this date will not be considered.

ADDRESSES: Mailed applications must be addressed to the U.S. Department 
of Labor, Employment and Training Administration, Division of Federal 
Assistance, Attention: Mamie D. Williams, SGA/DFA 03-114, 200 
Constitution Avenue, NW., Room S-4203, Washington, DC 20210. 
Telefacsimile (FAX) applications will not be accepted. Applicants are 
advised that mail delivery in the Washington area may be delayed due to 
mail

[[Page 37554]]

decontamination procedures. Hand delivered proposals will be received 
at the above address.

FOR FURTHER INFORMATION CONTACT: Mamie D. Williams, Grants Management 
Specialist, Division of Federal Assistance, Telephone (202) 693-3301. 
(This is not a toll free number.) You must specifically ask for Mamie 
D. Williams. This announcement is also being made available on the ETA 
Web site at http://www.doleta.gov/h-1b.

SUPPLEMENTARY INFORMATION: The announcement consists of four parts:
    [sbull] Part I provides background information on the H-1B grant 
program, the principles of H-1B Technical Skills Training Grants, and 
DOL's policies and emphases.
    [sbull] Part II describes specific program, administrative and 
reporting requirements that will apply to all grant awards.
    [sbull] Part III describes the application process.
    [sbull] Part IV describes the review process and rating criteria 
that will be used to evaluate applications for funding.

Part I--Background, DOL Policies and Emphases

A. Background

    This section provides a summary overview of the intent and nature 
of the solicitation for grant award. Elements mentioned in this 
background summary may be covered in greater detail later in the 
document.
    Authorizing Legislation: In response to demands from industries 
that were experiencing skill shortages in areas such as information 
technology, Congress amended the Immigration and Nationality Act and 
created the H-1B visa category. The H-1B visa enables employers to hire 
non-immigrants in high skill or specialty occupations for work in the 
United States. An annual limit of 65,000 was established on the number 
of H-1B visas granted. In a subsequent effort to help employers access 
skilled foreign workers and compete internationally, Congress enacted 
the American Competitiveness and Workforce Improvement Act of 1998 
(ACWIA 1998) Public Law 105-277 in October 1998. The provisions of 
ACWIA 1998 created technical skills training grants under the 
Department of Labor's Employment and Training Administration.
    ACWIA 1998 increased the annual limit on H-1B visas temporarily to 
115,000 in fiscal years 1999 and 2000, and to 107,500 in 2001. In 
addition, a $500 user fee was imposed on employers for each H-1B 
application. ACWIA 1998 authorized the use of 56.3% of the fee to 
finance the H-1B Technical Skills Training Grant Program. Grants funded 
under ACWIA 1998 had the long-term goal of raising the technical skill 
levels of American workers in order to fill specialty occupations 
presently being filled by temporary workers admitted to the United 
States under the provisions of the H-1B visa. Eligible grant applicants 
were local Private Industry Councils (PICs) and Workforce Investment 
Boards (local boards) established under Section 117 of the Workforce 
Investment Act (WIA) or a consortium of local boards.
    ACWIA 1998 was amended by the American Competitiveness in the 
Twenty-first Century Act of 2000 (ACWIA 2000) Public Law 106-313, 
enacted on October 17, 2000. This law increased the temporary cap of H-
1B visas to 195,000 annually until the end of fiscal year 2003. 
Separate legislation raised the employer H-1B application fee from $500 
to $1,000. ACWIA 2000 authorized the use of 55% of the funds generated 
by H-1B visa fees to continue the Department of Labor's H-1B Technical 
Skills Training Grant Program through September 30, 2003. ACWIA 2000 H-
1B Technical Skills Training Grant Program statutory provisions are 
codified at 29 U.S.C. 2916 a.
    Nature of Funding: ACWIA 2000 also created a two-part eligibility 
and funding criteria for the H-1B program. Local boards are eligible to 
receive 75% of total funds awarded. These grants provide funds to 
partnerships consisting of one or more local boards, at least one 
business or business related non-profit (such as a trade association) 
and one community-based organization (which may be faith-based), higher 
education institution or labor union. The remaining 25% of funds, the 
subject of this solicitation, are made available through grants to 
eligible partnerships that consist of at least two businesses or a 
business-related nonprofit organization that represents more than one 
business. Partnerships may include any educational, labor, community 
and faith-based organization, or local board, but funds may be used 
only to carry out a strategy that would otherwise not be eligible for 
funds under the 75% clause due to barriers in meeting partnership 
eligibility criteria. The scope of the business partnerships, for 
example, may be national or multi-state, making the partnership 
ineligible for the 75% funding stream.
    Applications submitted by Business-Led partnerships require a 100 
percent match in cash or in kind. Partners cooperating in the proposed 
project may divide the responsibility for the match among themselves in 
any way they choose to do so, provided that at least 50 percent of the 
match comes from the business partners (see Part II, section E, 
Matching Funds). ACWIA 2000 also specified that consideration be given 
to applicants that provide a specific commitment from other public or 
private sources, or both, to demonstrate the long-term sustainability 
of the training program or project after the grant expires.
    Targeted Occupations: At least eighty percent of the grants are to 
be awarded to projects that train workers in high technology, 
information technology, and biotechnology skills. For example, this 
includes skills needed for software and communications services, 
telecommunications, systems installation and integration, computers and 
communications hardware, advanced manufacturing, health care 
technology, biotechnology and biomedical research and manufacturing, 
and innovation services. No more than 20 percent may be awarded to 
projects that train for skills related to any single specialty 
occupation. Specialty occupations require a theoretical and practical 
application of a body of highly specialized knowledge and sometimes may 
even require full state licensure to practice in the occupation. These 
occupations require at least a bachelor's degree or higher and/or 
experience in the specific specialty. They also may require recognition 
of expertise in the specialty through progressively responsible 
positions relative to the specialty occupation.
    The technical skills training portion of ACWIA 2000 (Section 111) 
is designed to help both employed and unemployed American workers 
acquire the requisite technical capabilities in high skill occupations 
that have shortages. Training generally is aimed at occupations at the 
H-1B skill levels, which are defined as a bachelor's degree or 
comparable experience. Under ACWIA 2000, training is not limited to 
skill levels commensurate with 4-year undergraduate degrees, but can 
include the preparation of workers for a broad range of positions along 
a career ladder leading to an H-1B skill level job.
    Occupational Skill Levels: To meet the legislative intent of 
training American workers to replace foreign workers under the H-1B 
visa program, technical skills training grants under this SGA must 
focus on a high level of training and on selected occupations. As shown 
on Table 1, foreign workers coming to the United States under the H-1B 
visa program are exceptionally well-educated; 50 percent possess a 
Bachelor's degree, 30 percent have a Master's degree, and 17 percent 
have a

[[Page 37555]]

Doctorate or Professional degree. Fewer than 2 percent of H-1B visas go 
to foreign workers with less than a Bachelor's degree. With respect to 
occupations in 2002, 38 percent are computer/information technology 
related occupations, such as programmers, database administrators and 
systems analysts. The second largest occupational area is architecture, 
engineering and surveying related occupations. It should be noted that 
of the medicine and health related occupations, the largest grouping is 
physicians and surgeons rather than nurses or other healthcare workers.
    Outcomes Expected from H-1B Grantees: ACWIA 2000 specified that the 
Secretary of Labor is to give consideration to applicants who commit to 
achieving certain outcome goals for individuals who complete training. 
These outcome goals are: (1) Hiring or causing the hiring of unemployed 
trainees; (2) increasing the wages or salary of incumbent workers, or 
(3) providing skill certifications to trainees or linking the training 
to industry accepted occupational skill standards, certificates, or 
licensing requirements. Applicants may propose additional goals or 
combine goals.
    ACWIA 2000 also specified that consideration in awarding H-1B 
grants be given to the use of grant funds to demonstrate a significant 
ability to expand a training program or project through such means as 
training more workers or offering more courses or projects resulting 
from collaborations, especially with more than one small business or 
with a labor management training program or project, or for a 
partnership that involves and directly benefits more than one small 
business.

 Table 1. Key Facts About H-1B Visa Approved Petitions, Fiscal Year 2002
------------------------------------------------------------------------
                                                              Percent of
                                                                 total
------------------------------------------------------------------------
                      Country of Birth
India.......................................................        33.0
China.......................................................         9.6
Canada......................................................         6.0
Philippines.................................................         4.7
United Kingdom..............................................         3.6
Korea.......................................................         3.0
Other.......................................................        40.1
                     Level of Education
Less than Bachelor's degree.................................         1.9
Bachelor's degree...........................................        50.4
Master's degree.............................................        30.4
Professional degree.........................................         5.3
Doctorate degree............................................        11.8
                      Occupational Area
Computer/information technology.............................        38.3
Architecture, engineering and surveying.....................        12.8
Administrative specialties..................................        10.8
Education...................................................        10.5
Medicine and health.........................................         6.6
Managers and officials......................................         5.4
Life sciences...............................................         3.5
Social sciences.............................................         2.8
Mathematics/physical sciences...............................         2.8
Other.......................................................        6.5
------------------------------------------------------------------------
Source: Yearbook of Immigration Statistics, Fiscal Year 2002, U.S.
  Bureau of Citizenship and Immigration Services, June 2003.

    Status of the H-1B Program: Forty-three H-1B Technical Skills 
Training Grants totaling $95.6 million were awarded under the 
provisions of ACWIA 1998. Under ACWIA 2000, the Department of Labor has 
awarded 56 grants totaling $148 million; of these, 42 grants totaling 
$113.3 million were under the 75 percent funding stream and 14 grants 
totaling $34.5 million were under the 25 percent funding stream. 
Combining all awards made under ACWIA 1998 and ACWIA 2000, the 
Department of Labor has awarded a total of 99 H-1B Technical Skills 
Training Grants totaling $243.3 million.
    H-1B grants under earlier SGAs were funded for up to a 24-month 
period, with the possibility of a no-cost extension for one additional 
year. Grants awarded under this solicitation will have a 36-month 
performance period, with the possibility of a no-cost extension for one 
additional year.
    Additional details on the background of the H-1B Technical Skills 
Training Grants program can be found at the H-1B Web site http://www.doleta.gov/h-1b. This Web site contains descriptions of current 
projects, legislative documents and research papers.

B. Principles of Business-Led H-1B Technical Skills Training Grants

    Development, implementation and operation of H-1B Technical Skills 
Training Grants as envisioned under the authorizing legislation (see 
Background above) are based on the following principles:
    Business Leadership: Businesses generate the demand for jobs, in 
particular those high skill occupations currently being filled by 
temporary H-1B workers. Businesses know, as only a consumer can, the 
exact skill needs of their workforce. To ensure these needs are met, 
business plays the critical leadership role in formulating, developing, 
and operating Business-Led Technical Skills Training Grants programs.
    Successful H-1B training programs are those in which business is 
seriously invested in the program and has translated this investment 
into material support at all levels, including: defining program 
strategy and goals; designing the training program and curricula; 
implementing the program, and contributing financial support to the 
program.
    For the purpose of these grants, it is desirable that businesses 
represented in the group applying for this grant include those with 
current high technology skills shortages. Some of these businesses may 
have in the past utilized foreign workers under the H-1B visa program. 
Now, they intend to hire, retain, or promote graduates of the H-1B 
Technical Skills Training Program.
    Partnership Sustainability: ETA intends that local and regional 
partnerships and training activities sustain themselves over the long 
term, well after the Federal resources from this initiative have been 
exhausted. For this to happen, applicants are encouraged to develop and 
nurture partnerships that reflect commitments, both financial and non-
financial, to the proposed training program as well as to the future 
success of the program. These partners may include businesses, non-
profit industry associations, local workforce investment boards, 
training providers, community and faith-based organizations, state and 
local government agencies and should provide the foundation for 
developing long-term systematic solutions to the high technology skills 
shortage challenge for employers and workers in a regional or local 
area.
    The matching requirement is an important, but not the only, 
indicator of the strength of the applicant's partnerships. The 
requirement that at least one-half of the matching funds must come from 
the business sector partners is designed to encourage the direct and 
active participation of employers whose high technology skills needs 
can be filled by this program. It may also demonstrate that business 
contributions could be made available in the future to operate 
technical skills training programs after Federal funds are exhausted.
    High Skill Level Focus and Innovative Service Delivery: Training 
selected employed and unemployed workers to fill current high skill 
level shortages is the immediate focus of this initiative. Training 
investments should be targeted in occupational areas that have been 
identified on the basis of H-1B occupations as high technology skills

[[Page 37556]]

shortage areas. H-1B Technical Skills Training Grants are not intended 
to address lower level skill labor shortages nor are they intended to 
fund training programs aimed at imparting basic educational skills. In 
addition, H-1B grants are not intended to address occupational 
shortages due to reasons other than high technology skills shortages.
    H-1B training projects may consider utilizing either innovative or 
proven tools or approaches to close particular skill gaps and provide 
strategies for training that promote regional development. These may 
include, but are not limited to, on-the-job training, distance 
learning, or combinations of training and educational techniques. H-1B 
grantees should tailor training to the specific needs of the selected 
incumbent and unemployed workers, both in content and delivery.
    Qualified Target Population: Technical skills training should be 
geared towards employed and unemployed workers who can be trained and 
placed directly in high skill H-1B occupations, or in the highest 
echelons of an H-1B career ladder. Candidates for training funded by H-
1B Technical Skills Training Grants should possess (and be identified 
through appropriate assessment tools) a high level of general 
educational background, the prerequisites for the occupational training 
being proposed, and certain characteristics such as drive and 
initiative that will help guarantee successful completion of the high 
skill level training.
    Employees at the H-1B skill level are generally characterized as 
having a Bachelor's degree or comparable work experience. H-1B 
technical skills training is not limited to skill levels commensurate 
with a four-year degree and may be used to prepare workers for a broad 
range of positions along a specified career ladder. ``Career ladder'' 
may generally be defined as a system of career and skill level 
``steps'' directly leading to a high skill level job within a 
reasonable period of time. Thus, potential trainees are not required to 
enter training with a four-year degree and trainees do not necessarily 
have to acquire a four-year degree to be successful. Many will have a 
four-year degree and others will possess two-year degrees. Career 
ladders create opportunities for individuals who may vary in experience 
and education levels (such as specialty training and Associate's 
degrees) to advance along a defined career ladder and qualify through 
additional training and education for H-1B level related occupations.
    Use of Skill Standards: Skill standards represent a benchmark by 
which an individual's achieved competence can be measured. Training 
programs that provide individuals with professionally recognized, 
portable skills certifications help ensure that these individuals have 
received useful knowledge and skills relevant to their employers needs 
and to their own careers. The documentation of skills standards and 
skills attainment is also indicative of the program's ability to meet 
industry needs and to reduce the dependence of American businesses on 
skilled foreign workers.
    Well-defined skills standards can be useful tools in matching 
training goals to targeted occupational areas. Work in the area of 
skills standards has been performed by private industry and trade 
associations, registered apprenticeship training systems, and public 
and private partnerships. Applicants are encouraged to survey the 
progress to date in developing occupational skills standards and 
incorporate appropriate ones into their H-1B Technical Skills Training 
Project.
    As alluded to earlier (In Part IA--Background), the definition of 
the minimum proficiency level required to be considered an H-1B 
occupation, contained in section 214(i), 8 U.S.C. 1184(i) of the 
Immigration and Nationality Act (INA), speaks to a very high skill 
level for these ``specialty occupations.'' These are occupations that 
require ``theoretical and practical application of a body of highly 
specialized knowledge,'' and full state licensure, if required for the 
occupation, to practice in the occupation. The standard for these 
occupations is either completion of at least a Bachelor's degree or 
experience in the specialty equivalent to the completion of such a 
degree and recognition of expertise in the specialty through 
progressively responsible positions relating to the specialty. In 
addition to academic degrees, specialized and professionally recognized 
certificates may also be characteristic of a high level of technical 
skill.
    Comprehensive Local and Regional Planning: Developing and 
implementing a training strategy that addresses businesses' high 
technology skill needs requires applicants seeking H-1B grants to 
engage in a process of comprehensive local and regional planning with 
their partners. This planning effort entails a thorough analysis and 
understanding of applicable local and regional labor markets, 
identification of high technology skills shortages in the areas, 
information on the employment opportunities, trends and training needs 
within the targeted occupations and industries, as well as knowledge of 
the impact of skills training in response to the identified skill 
shortages in the targeted regions.
    Applicants are strongly encouraged to utilize all available data 
sources to demonstrate the high technology skills shortages and 
training needs in their local or regional areas. Sources of data may 
include: area businesses and business associations, state labor and 
local market information systems, the Bureau of Labor Statistics (BLS), 
local employer surveys, academic sources, and the U.S. Census Bureau.
    In addition, current data on approved H-1B visa petitions should be 
utilized to the extent feasible to describe skill shortages in specific 
occupations. Appendix B to this solicitation is a listing of 
occupations for which H-1B visa petitions have been recently approved. 
Requests for H-1B visas for the applicant's region may reflect a skills 
shortage for those occupations. Applicants should use data from the 
business partners involved in submitting the H-1B grant proposal, and 
may consider surveying other local and regional employers to ascertain 
the extent of employer use of H-1B visas to obtain foreign workers and 
to obtain information on the specific occupations and skills imported 
in the regions.

C. DOL Policies and Emphases

    To implement the preceding principles and to meet the legislative 
intent of ACWIA 2000, DOL has established certain policies and emphases 
for awarding H-1B Technical Skills Training Grants under this 
solicitation. Applicants are encouraged to develop proposals based on 
the principles described above and the policies and emphases identified 
below.
    Connection to the Workforce Investment System: Utilizing Federal 
resources along with H-1B grant funds to strengthen the overall program 
is a strongly recommended course of action. In order to obtain these 
resources, applicants are encouraged to form partnerships with local 
workforce investment boards. Each local workforce investment board 
prepares a strategic workforce investment plan for its local area and 
also designates One-Stop center operators and certifies or approves 
eligible training providers. Local boards thus have a good base of 
knowledge about the local area, WIA, regional training efforts, ETA 
grant administration, One-Stop capabilities and training providers. 
This knowledge and experience should materially aid business 
partnerships in planning,

[[Page 37557]]

developing and implementing H-1B Technical Skills Training Projects.
    By building linkages to the One-Stop Career Center network, 
applicants can reach out, inform, and recruit individuals to 
participate in H-1B technical skills training and access a range of 
services for H-1B participants. ETA believes that co-enrollment in WIA 
and H-1B technical skills training allows for a much broader and 
comprehensive service provision for H-1B Program participants. For 
example, some H-1B participants may need supportive services, such as 
childcare and transportation, to enable them to be successful in both 
the learning environment and labor market. Supportive services are not 
allowable activities under the H-1B grant and by co-enrolling these H-
1B participants in WIA, some H-1B participants may have access to a 
full range of supportive services available through their local One-
Stop Career System, if determined necessary. Applicants may also 
consider working with community and faith-based organizations to access 
supportive services for H-1B participants.
    Coordination and consultation activities with the applicable state 
workforce agency and/or Governor's office or State Workforce Investment 
Board are also highly encouraged in order to connect to other relevant 
skills shortages projects that may be operating in the state as well as 
for sustainability purposes. Although Federal resources may not be 
counted towards the match requirement, leveraging WIA resources will 
help make the technical skills training more effective.
    Higher Level of Training: Under this SGA, DOL's goal is to fund 
grants that will provide training at the H-1B level, a level that 
clearly prepares individuals to meet the ``specialty occupation'' 
definition of ``a theoretical and practical application of a body of 
specialized knowledge and sometimes may even require full state 
licensure to practice in the occupation.'' These occupations require at 
least a bachelor's degree or higher and/or experience in the specific 
specialty. This will require a higher level of training than has 
occurred to date under some H-1B funded grants.
    To train at high levels, applicants should ensure that eligible 
participants have a fairly advanced education and skill sets and be 
capable of pursing training at the college level. In addition, the 
applicant should determine how these individuals will possess the 
capacity after completion of the training to perform in jobs that were 
previously filled via the H-1B visa process, or could be filled at the 
H-1B level.
    If career ladder training is proposed, applicants most demonstrate 
that the majority of participants will complete the highest rungs of 
the H-1B level training under the grant within a reasonable period of 
time. Proposals to fund training in non-H-1B level occupations and 
preparatory or introductory level information technology areas will 
receive low selection priority under this SGA.
    H-1B Occupational Focus: Since a major objective of H-1B Technical 
Skills Training Grants is to reduce dependency upon foreign workers in 
specialty occupations, DOL believes that increased priority is needed 
in occupations that are largely reflected in approved H-1B visa 
petitions and that are part of ACWIA legislation. These priority 
occupations include higher levels of computer science and information 
technology and architecture, engineering and surveying occupations. In 
accordance with ACWIA 2000, priority will also be given to proposals 
related to occupations in biotechnology, biomedical research and 
manufacturing, and advanced manufacturing technology. Proposals to 
provide training in other occupational areas such as nursing will 
receive low selection priority.
    Demonstrable Results: DOL will give consideration to applicants 
that commit to achieving the following outcome goals upon successful 
completion of training: (1) Hiring or causing the hiring of unemployed 
trainees; (2) increasing the wages or salary of incumbent workers; or 
(3) providing skill certifications to trainees or linking the training 
to industry accepted occupational skill standards, certificates, or 
licensing requirements. Applicants should provide a description of what 
demonstrable results are expected and how these results will be 
achieved and measured.
    Small Businesses: As required by ACWIA 2000, DOL will give 
consideration in awarding grants to any proposal which includes and 
directly benefits two or more small businesses (100 employees or less).

Part II--Requirements

A. Participants Eligible to Receive H-1B Training

    Employed and Unemployed Individuals: Training funded by a grantee 
may be for both individuals who are currently employed and who wish to 
obtain and upgrade skills and individuals who are unemployed. The aim 
of the skills training is to place employed and unemployed workers in 
highly skilled H-1B related occupations. Applicants are encouraged to 
consider using community and faith-based organizations in the 
recruitment of qualified unemployed workers into H-1B programs. As 
noted above, eligible participants for the H-1B Technical Skills 
Training Grant Program, prior to the beginning of H-1B training, should 
possess (and be identified as having through appropriate assessment 
tools) a fairly advanced educational background and skills set. In 
addition, eligible participants should have the prerequisites for the 
occupational training being proposed.
    Citizenship Status: Training may be provided to American citizens 
and nationals and immigrants authorized by the Attorney General to work 
in the United States, which includes lawfully admitted permanent 
resident aliens, refugees, asylees, and parolees, and other immigrants 
authorized by the Attorney General. Note that workers admitted under 
non-immigrant visas, such as the H-1B program and related programs, are 
not eligible for training with grant funds.
    Veterans Priority: In addition, this program is subject to the 
provisions of the ``Jobs for Veterans Act,'' Pub. L. 107-288, which 
provides priority of service to veterans and certain of their spouses 
in all Department of Labor-funded job training programs. Please note 
that, to obtain priority of service, a veteran must meet the program's 
eligibility requirements. Comprehensive policy guidance is being 
developed and will be issued in the near future.

B. Administrative Requirements

1. General
    Grantee organizations will be subject to: ACWIA 2000; these 
guidelines; the terms and conditions of the grant and any subsequent 
modifications; applicable Federal laws (including provisions in 
appropriations law), and any applicable requirements listed below:
    a. Workforce Investment Boards--20 Code of Federal Regulations 
(CFR) Part 667.220, published in the Federal Register on Friday, August 
11, 2000 (Administrative Costs).
    b. Non-Profit Organizations--Office of Management and Budget (OMB) 
Circulars A-122 (Cost Principles) and 29 CFR Part 95 (Administrative 
Requirements).
    c. Educational Institutions--OMB Circulars A-21 (Cost Principles) 
and 29 CFR Part 95 (Administrative Requirements).
    d. State and Local Governments--OMB Circulars A-87 (Cost 
Principles)

[[Page 37558]]

and 29 CFR Part 97 (Administrative Requirements).
    e. Profit Making Commercial Firms--Federal Acquisition Regulation 
(FAR)--48 CFR Part 31 (Cost Principles), and 29 CFR Part 95 
(Administrative Requirements). In addition, the audit requirements at 
20 CFR 627.480 applies to commercial recipients.
    f. All entities must comply with 29 CFR Parts 93 and 98, and, where 
applicable, 29 CFR Parts 96 and 99.
2. Administrative Costs
    ACWIA 2000 Section 111(c)(6) provides that an entity that receives 
a grant to carry out a program or project under section 414(c)(1)(A) of 
ACWIA may not use more than 10 percent of the amount of the grant to 
pay administrative costs associated with the program or project. 
Administrative costs are defined at 20 CFR 667.220. In general, 
however, this grant does not contemplate or permit the purchase of 
capital equipment.
3. Start-Up Costs
    ACWIA 2000 Section 111(c)(3) limits the amount of start-up costs of 
partnerships or new training projects, which may be charged to these 
grants. Except for partnerships of small businesses, the limit is the 
lesser of five (5) percent of any single grant or costs not to exceed 
$75,000. For partnerships consisting primarily of small businesses, the 
limit is the lesser of ten (10) percent of the cost allocable for a 
single grant or a maximum of $150,000.

C. Reporting Requirements

    The grantee is required to provide the reports and documents listed 
below:
    Quarterly Financial Reports. A Quarterly Financial Status Report 
(SF269) is required until such time as all funds have been expended or 
the period of availability has expired. Quarterly reports are due 30 
days after the end of each calendar year quarter. Grantees must use 
ETA's On-Line Electronic Reporting System.
    Progress Reports. The grantee must submit a quarterly progress 
report to the designated Federal Project Officer within 30 days 
following each quarter. Two copies are to be submitted providing a 
detailed account of activities undertaken during that quarter 
including:

1.  Completing training this quarter
2.  Completing training overall
3.  Enrolled in training
4.  Expected to complete training by end of project
5.  New job placements as a result of training
6.  Promotions resulting from the training
7.  Wage increases resulting from training and amount of wage 
increases resulting from training
8.  Certifications and/or /degrees, by type, awarded as result 
of training


    Note: DOL may require additional data elements, e.g., veteran 
status, to be collected and reported on either a regular basis or 
special request basis. Grantees must agree to meet DOL reporting 
requirements.


    A narrative section is also required for each quarterly report, 
including:

1. General overview of project progress, new developments and 
resolution of previous issues and problems.
2. Explanation of any problems and issues encountered and planned 
response.
3. Lessons learned in the areas of project administration and 
management, training delivery, partnership relationships and other 
related areas.
4. Discussion of the occupational areas for which skills training is 
being provided, including a listing of the occupations being trained, 
training delivery, number of students per occupation and other relevant 
information that provides a reasonable picture of the occupational 
training being conducted.

    Final Report. A draft final report which summarizes project 
activities and employment outcomes and related results of the training 
project must be submitted no later than 60 days prior to the expiration 
date of the grant. After responding to DOL questions and comments on 
the draft report, three copies of the final report must be submitted no 
later than the grant expiration date. Grantees must agree to use a 
designated format specified by DOL for preparing the final report.

D. Evaluation

    As required by ACWIA 2000, applications must include an agreement 
that the program or project shall be subject to evaluation by the 
Secretary of Labor to measure its effectiveness. To measure the impact 
of these skill training grants, ETA will arrange for or conduct an 
independent evaluation of the outcomes and benefits of the projects. 
Grantees must agree to make records on participants, employers and 
funding available and to provide access to program operating personnel 
and to participants, as specified by the evaluator(s) under the 
direction of ETA, including after the expiration date of the grant.

E. Matching Funds

    Applicants must demonstrate the ability to provide resources 
equivalent to at least 100 percent of the grant award amount as a 
match. This statutory match may be provided in cash or in-kind, and 
Federal resources may not be counted against the matching requirement. 
At least one-half of the non-Federal matching funds must be from the 
business or businesses or business-related nonprofit organizations 
involved. The match requirement applies to the entire Federal grant 
funding level. The application must clearly describe the size, nature, 
and quality of the non-Federal match and how the match will be used to 
further the goals of the project.
    Applicants should describe the nature of the match to ensure that 
activities counted as match are permitted under the H-1B program. To be 
allowable as part of the match, a cost must be an allowable training 
cost that could conceivably be charged to Federal grant funds. If the 
cost cannot be charged to the grant funds, then it cannot be charged to 
match either.
    For the purposes of the H-1B Grant Program, there is one exception 
to the allowable cost rule for matching funds. Grantees may include as 
training costs the salaries and wages employers pay for their employees 
while the employees are participating in skills training. These costs 
are allowable as match provided that: (a) The trainees are bona-fide 
employees; (b) the employer pays only regular salary and wages, but not 
overtime, benefits, or other costs, for each trainee for time spent 
attending classes during working hours; and (c) the trainee remains 
employed with the employer for sixty days after the completion of 
training.

Part III--Application Process

A. Eligible Applicants

    ACWIA 2000, Section 111(c)(2)(A)(ii) [29 U.S.C. 2916 a 
(c)(2)(A)(ii)] specifies that the Secretary shall, in consultation with 
the Secretary of Commerce, subject to the availability of funds in the 
H-1B Nonimmigrant Petitioner Account, award 25 percent of the grants to 
partnerships that consist of at least two businesses or a business-
related nonprofit organization that represents more than one business, 
and that may include any educational, labor, community and faith-based 
organization, or workforce investment board.
    Grant funds awarded under the 25 percent provision may be used only 
to carry out a strategy that would otherwise not be eligible for funds

[[Page 37559]]

provided through the workforce investment boards under the 75 percent 
provision due to barriers in meeting those partnership eligibility 
criteria. For example, if the scope of the business partnerships is 
national or multi-state, this may make the partnership ineligible for 
the 75% funding stream. Applicants must explain the barriers that 
prevent them from working through their local workforce investment 
board and letting the workforce investment board be the applicant.
    The application must clearly identify the applicant as well as the 
fiscal agent, the grant recipient (and/or fiscal agent), and describe 
its capacity to administer this project. Applicants are encouraged to 
collaborate with entities that possess a sound grasp of the job market 
in the region and are in a position to address the issue of skill 
shortage occupations. These entities include organizations such as 
private, for-profit businesses--including small and medium-size 
businesses; business, trade, or industry associations such as local 
Chambers of Commerce and small business federations; and labor unions.
    According to Section 18 of the Lobbying Disclosure Act of 1995, an 
organization described in Section 501(c)(4) of the Internal Revenue 
Code of 1986 that engages in lobbying activities will not be eligible 
for the receipt of Federal funds constituting an award, grant, or loan.

    Note: Except as specifically provided in this Notice, DOL/ETA's 
acceptance of a proposal and an award of Federal funds to sponsor 
any program(s) does not provide a waiver of any grant requirements 
and/or procedures. For example, the OMB Circulars require and an 
entity's procurement procedures must require that all procurement 
transactions are conducted, as much as practical, to provide open 
and free competition. If a proposal identifies a specific entity to 
provide services, the DOL/ETA's award does not provide the 
justification or basis to sole-source the procurement, i.e., it does 
not authorize the applicant to avoid competition when procuring 
these services.

B. Submission of Proposals

    Applicants must submit an original signed application and two 
copies. The proposal must consist of two (2) separate and distinct 
parts, Parts I and II. Failure to adhere to the instructions in this 
section will be considered as non-responsive.
    Part I of the proposal must contain the Standard Form (SF) 424, 
``Application for Federal Assistance'' (Appendix C), the Budget 
Information Form (Appendix D) and the Project Profile Information form 
(Appendix E). Upon confirmation of an award, the individual signing the 
SF 424 on behalf of the applicant shall represent the responsible 
financial and administrative entity.
    In preparing the Budget Information form, the applicant must 
provide a concise narrative explanation to support the request. The 
statutory language of ACWIA 2000 is specific in stating that grant 
resources are to be expended for programs or projects to provide 
technical skills training. An illustrative, but not exclusive, list of 
allowable and allocable types of administrative costs is provided in 
the WIA regulations at 20 CFR 667.220. The budget narrative should 
discuss precisely how the administrative costs support the project 
goals.
    Part II of the application must contain a technical proposal that 
demonstrates the applicant's capabilities to plan and implement an H-1B 
Technical Skills Training Grant Program in accordance with the 
provisions of this solicitation. Part II of the grant application is 
limited to twenty-five (25) double-spaced, single-sided, 8.5 inch x 11 
inch pages with one-inch margins. In addition, the applicant may 
provide resumes, a staffing pattern, statistical information and 
related material in attachments, which may not exceed fifteen (15) 
pages. Although not required, letters of commitment from partners or 
from those providing matching resources may be submitted as 
attachments. Such letters will not count against the allowable maximum 
page total. The applicant must briefly itemize those participating 
entities in the text of the proposal. Text type shall be 12 point or 
larger. Applications that do not meet these requirements will not be 
considered. Each application must include a Time Line outlining project 
activities and an Executive Summary that is not to exceed two pages. 
The Time Line and the Executive Summary do not count against the 25-
page limit. No cost data or reference to prices should be included in 
the technical proposal.

C. Award Amount and Period of Performance

    It is anticipated that individual awards will not exceed $3 
million. The initial period of performance will be up to 36 months from 
the date of execution of the grant documents. ETA may elect to exercise 
its option to award no-cost extensions to these grants for an 
additional period not to exceed 12 months, based on the success of the 
program and other relevant factors.

Part IV--Review Process and Rating Criteria

A. The Review Process

    Applications for the H-1B Technical Skills Training Grants will be 
accepted after the publication of this announcement until the closing 
date. A technical review panel will make careful evaluation of 
applications against the criteria below which include the policy goals, 
principles, priorities and emphases set forth in this SGA. Final 
funding decisions will be based on the rating of applications as a 
result of the review process, and other factors such as regulatory and 
statutory requirements and considerations. These factors may include 
urban/rural and geographic balance, the requirement that at least 80 
percent of funds be awarded for high technology, information 
technology, and biotechnology occupational training, the availability 
of funds, and what is most advantageous to the Government. The panel 
results are advisory in nature and not binding on the Grant Officer. 
The Government may elect to award the grant(s) with or without 
discussions with the applicants. In situations without discussions, an 
award will be based on the applicant's signature on the SF 424, which 
constitutes a binding offer.

B. Rating Criteria

    This section identifies and describes the criteria that will be 
used to evaluate H-1B Technical Skills Grant proposals. These criteria 
and point values are:

------------------------------------------------------------------------
                           Criterion                             Points
------------------------------------------------------------------------
A. Statement of Need..........................................        10
B. Level of Training and Service Delivery Strategy............        25
C. Target Population..........................................        10
D. Sustainability.............................................        15
E. Linkages with Key Partners.................................        15
F. Outcomes, Management and Cost Effectiveness................        25
                                                               ---------
  Total Possible Points.......................................       100
------------------------------------------------------------------------

1. Statement of Need (10 points)
    Analysis of Labor Market: ACWIA 2000 is a response to high 
technology skill shortages around the country in specific occupations. 
Applicants must describe the local area or region for which training 
services are to be provided and the high technology skill shortages 
prevalent in the geographic area or region. The process through which 
training needs were identified to ensure that the proposed training is 
relevant to local and regional labor market shortages should be clearly 
explained. Evidence of a comprehensive

[[Page 37560]]

analysis of the region's labor market and skills shortages and identity 
of the source of the data used in the analysis should be provided. 
Include an explanation of how the skills training will impact the 
identified skills shortages of the region.
    A general description of the local area or region should provide 
information such as urban or rural and socioeconomic data, with a 
particular focus on general education and skills levels prevalent in 
the area. In addition, a description of the characteristics of the 
political, economic and administrative jurisdictions (local workforce 
boards, labor market areas, special district authorities) that led them 
to partner for the purpose of this application should be incorporated. 
Information on transportation patterns, demographics and other factors, 
as they affect the high skill shortage situation, may be useful in 
explaining the training needs.
    Business Environment: Answers should be provided to questions 
germane to the business environment such as:
    [sbull] What is the general business environment?
    [sbull] What industries and occupations are growing and declining?
    [sbull] What types of skills are being sought in the geographic 
area or region by the major employers in general, and this grant 
application's member companies, in particular?
    [sbull] How many H-1B visa petitions were filed by area employers 
and in this grant application's member companies, in particular? For 
which occupations? Which specific skills did H-1B visa workers have 
that were not available in the area?
    [sbull] What high skills needs are expected to be met through the 
H-1B grant project?

2. Level of Training and Service Delivery Strategy (25 points)
    Comprehensive Strategy: Applicants must lay out the comprehensive 
strategy proposed for providing the technical skills training that is 
mandated as the core activity of these grant awards. Applicants shall 
describe a service delivery strategy that provides training at or 
directly leading to an H-1B level skill. Part 1C of this SGA spells out 
very clearly DOL's strong interest in achieving a higher level of 
training than has occurred in some H-1B grants in the past and thus, 
training at a sufficiently high skill level will be an important factor 
in this criterion. Specific issues that must be addressed as part of 
this section include:

    [sbull] The range and identity of potential training providers, 
including identifying whether they are on the eligible training 
provider list as described in WIA, section 122, the types of skills 
training that will be offered, how the training will meet the local 
area or regional skills needs, and how the training will be provided.
    [sbull] The targeted occupations and skill level and how the skill 
upgrading will be measured. If degrees and/or certificates are 
contemplated, the type and recognition authority should be described as 
well as an estimate of the number and type to be attained.
    [sbull] What steps will be taken to reach out to the community(ies) 
to provide information about the project and planned training 
activities.
    [sbull] How will the types of training planned for project 
participants be determined.

    Career Ladders: If career ladder training is proposed, the 
applicant must provide adequate detail demonstrating that all rungs of 
the ladder lead to H-1B training at the top rung and that it is 
reasonably likely that the majority of individuals on the ladder will 
complete the highest rungs of H-1B level training under the H-1B 
Technical Skills Training Grant.
    Innovation: Applicants should fully describe any innovative and 
creative approaches to be undertaken in the context of service 
delivery. Innovation can be represented by a wide variety of creative 
approaches and techniques in which training services are provided, 
e.g., distance learning to provide instruction, interactive video self-
instructional materials, and flexible class scheduling (sections of the 
same class scheduled at different times of the day to accommodate 
workers whose schedules fluctuate).
    Business Involvement and Trainee Needs: The service delivery 
strategy must meet the needs of business partners, providing the skills 
identified in the statement of need. Evidence should be provided that 
business partners have been involved in developing the training service 
delivery plan, which may include designing the training program and 
curricula as well as operating the program. The service delivery 
strategy should also effectively reach out to and meet the needs of the 
target population, i.e., desired candidates are recruited and training 
conducted in such a manner that participants can attend without undue 
hardship (training during the workday, on weekends and/or through 
distance learning methods).
    Timing: DOL anticipates that the focus on a higher level of 
training and on H-1B occupations may necessitate formal education and/
or a longer period of training than many other employment and training 
programs. As a result, applicants should carefully plan and coordinate 
preparatory activities, such as recruitment and assessment, with 
training providers to ensure that there is sufficient time for 
participants to complete training during the grant period. Applicants 
should identify assessment/enrollment and training phase activities in 
project operation timeline charts.
3. Target Population (10 points)
    Employed and/or Unemployed Workers and Why: The eligibility 
criteria for skills training enumerated in ACWIA 2000 are extremely 
broad: employed and unemployed workers.
    Applicants must clearly describe how and why members of the target 
population will be selected as well as their technical skills training 
needs in such a way as to verify that H-1B level training is actually 
required, especially in the case of incumbent workers. Applicants 
should also describe the partners' involvement, particularly business, 
in the selection process as well as that of any involved community and 
faith-based organizations.
    Assessment: Applicants shall describe the assessment tools used to 
ensure that proposed trainees are qualified for the training and have a 
high likelihood of successful completion of the H-1B level training, in 
terms of ability and educational preparation. In addition, the 
applicant should discuss how those individuals will be determined to 
possess the capacity after the completion of training to accept jobs 
that previously were filled via the H-1B visa process, or could be 
filled at the H-1B level.
    Specificity: The applicant should address some specific issues 
relating to the targeted worker population such as:

    [sbull] How many employed workers and unemployed workers will be 
targeted for services and why?
    [sbull] What are the technical skills training needs of those 
workers to fulfill skill shortage occupations at the H-1B level? Note 
that employers' needs should be addressed in the Statement of Need 
section.
    [sbull] What criteria will be utilized to select employed and 
unemployed workers?
    [sbull] What assessment tools will be used to ensure trainees will 
be able to complete this high level of training?
    [sbull] What is the business partners' involvement in the selection 
of candidates?

[[Page 37561]]

    [sbull] What is the targeted education and skill level of trainees 
as they enter the program?
    [sbull] How will individuals eligible for priority of service under 
the Job for Veterans Act be identified and provided services?
4. Sustainability (15 points)
    Outlasting the Federal Investment: Sustainability refers to the 
continuation of the partnership and/or training activities based on the 
strength of that partnership and the ability of the training program to 
deliver value to employers. Applicants may address sustainability by 
providing concrete evidence that training activities of the partnership 
and/or the partnerships that were formed to create them will be 
continued through the use of other public or private resources after 
the expiration of the grant.
    Match: Matching resources and partnerships are considered an 
integral element of the project, as they support and strengthen the 
quality of the technical skills training provided and may contribute 
materially toward sustainability. Applicants must demonstrate that they 
will meet the statutory requirement to provide a 100 percent match to 
the resources for proposed projects. Applicants must describe to what 
extent the partners provide matching funds or services and how this 
contribution assists in building the foundation for a long-term 
partnership, i.e., sustainability. This section MUST contain a detailed 
discussion of the size, nature, and quality of the non-Federal match 
and how the match will be used to further the goals of the project. 
Proposals not meeting the statutory 100 percent match requirement will 
be considered non-responsive and will not be considered.
    Other Resources: Since H-1B Technical Skills Training Grant 
resources are limited to raising the skills levels of individuals to 
fill high skills H-1B occupations, applicants should identify other 
resources, both Federal and non-Federal, that can contribute materially 
toward quality outcomes and sustainability. (Note that although Federal 
resources may not be counted as match, they may help to demonstrate 
project sustainability). Applicants should enumerate these resources 
and describe any specific existing contractual commitments that support 
their sustainability strategies.
5. Linkages with Key Partners (15 points)
    Nature of Partnerships: The application must show the partnership 
required by Section 111(c)(2)(A)(ii) of ACWIA 2000 (at least 2 
businesses or a business-related nonprofit organization that represents 
more than one business, and that may include any educational, labor, 
community organization, or workforce investment board). ETA encourages, 
and will be looking for, applications that go beyond the minimum 
requirements of the statute and show broader, longer-term partnerships. 
The applicant should identify the partners and how they will interact 
together (e.g., what roles each will play and what resources each 
partner will offer). In particular, this section should identify 
partnerships with the private and public sectors, including ties with 
small- and medium-sized businesses and small business federations.
    Coordination and Consultation: In addition, the proposal should 
include a description of any coordination and consultation activities 
with the applicable local workforce board(s), state workforce agency 
and/or Governor's office. Evidence of such coordination and/or 
consultation such as written documentation should be included in the 
application. The Service Delivery Strategy section describes the role 
of each of the partners in delivering the proposed training services, 
while this section is intended to look at the linkages from a more 
structural perspective with particular emphasis on the employers in the 
consortium that are experiencing skills shortages and have hiring or 
upgrading needs.
    Small Businesses: As noted previously, ETA also is interested in 
the extent of the involvement of small businesses in the partnership. 
Consideration will be given to any partnership that involves and 
directly benefits more than one small business (each consisting of 100 
employees or less).
6. Outcomes, Management and Cost Effectiveness (25 points)
    This criterion includes three areas: (a) Program and training 
outcomes, (b) project and grant management, and (c) cost effectiveness. 
Applicants must describe fully the predicted outcomes resulting from 
the technical skills training. As stated previously, applicants should 
indicate how they plan to achieve the following outcome goals, if 
appropriate, upon successful completion of a training program:

(1) The hiring of unemployed trainees (if applicable);
(2) Increases in the wages or salaries of already employed trainees (if 
applicable); and
(3) Awards of educational degrees, credit toward degrees, skill 
certifications to trainees or links the trainees to industry-accepted 
occupational skill standards, certificates or licensing requirements.

    In addition, applicants should indicate if any additional goals or 
outcomes are anticipated and how these are expected to be achieved.
    Benefits as a Result of Training: Participants in the H-1B Training 
Program may be of differing skill levels and backgrounds and therefore, 
the outcomes section should discuss gains attained for individual 
participants in the context of their backgrounds and skills levels when 
they entered the program. Outcomes for employed workers may be at a 
somewhat higher level than for those unemployed workers who do not 
possess similar skills at the outset. The focus of the discussion in 
this section should emphasize very specifically the benefits that 
occurred because of the training. For example, an applicant might state 
that a certain skill level is projected for a given group and indicate 
what change in skills that represents and how that might translate into 
an increase in earnings.
    Qualifications for and Nature of Program Management: Project and 
Grant Management includes the organizational structure and capacity of 
the applicant and its partners and the utilization of automated data 
systems. In the management area, identification of a management entity, 
the proposed staffing pattern, the qualifications and experience of key 
staff members and detailed descriptions of the roles of the 
participating partners should be discussed. Each application MUST 
designate an individual who will serve as project director and who will 
devote a substantial portion of his/her time to the project, which may 
be defined as at least 60 percent. The applicant should also include a 
description of the organizational capacity and track record in high 
skills training and related activities of the primary actors in the 
partnership.
    Automated Tracking and Reporting: Applicants should include a 
description of the automated data system to be used for managing the 
project, collecting project data, monitoring and tracking progress, 
responding to issues and problems, and producing relevant reports for 
both the grantee and DOL. The grantee's automated system must be 
capable of collecting, storing and retrieving participant and training 
results information and producing reports needed for administrative, 
management, and analytical purposes. The grantee must identify the data

[[Page 37562]]

elements to be routinely collected and measures to ensure the accuracy 
and validity of information reported.
    Cost Benefit: Applicants should provide a detailed discussion of 
the expected cost effectiveness of their proposal in terms of the 
expected cost per participant compared to the expected benefits for 
these participants. Applicants should address the employment outcomes, 
such as placement, increased salary, promotion or retention and the 
level of skill to be achieved (such as attaining state licensing in an 
occupation), relative to the level and duration of training that the 
individual needed to receive to achieve those outcomes. Benefits can be 
described both qualitatively in terms of skills attained, including 
degrees and certificates attained, and quantitatively in terms of wage 
gains. Costs must be justified in relation to cost per participant and, 
when possible, contrasted with similar costs for training conducted 
elsewhere. The applicant's expectations regarding these measures should 
also be included.

    Signed in Washington, DC, this 19th day of June 2003.
James W. Stockton,
Grant Officer.

Appendix A: Legislative Mandate
Appendix B:--H-1B Petitions Approved in Fiscal Years 2001 and 2002 
for Top 10 Major
Occupational Groups: U.S. Bureau of Citizenship and Immigration 
Services, May 2003
Appendix C: (SF) 424--Application Form
Appenidx D: Budget Information Form
Appendix E: Project Profile Information (complete by applicant)

Appendix A

    Legislation

Applicable Sections of ACWIA 1988 and ACWIA 2000

    29 U.S.C. 2916a.
    Section II 2916a. Demonstration programs and projects to provide 
technical skills training for workers
    (1) In general--
    (A) Funding.
    The Secretary of Labor shall use funds available under section 
1356(s)(2) of Title 8 to establish demonstration programs or 
projects to provide technical skills training for workers, including 
both employed and unemployed workers.
    (B) Training provided.
    Training funded by a program or project described in 
subparagraph (A) shall be for persons who are currently employed and 
who wish to obtain and upgrade skills as well as for persons who are 
unemployed. Such training is not limited to skill levels 
commensurate with a four-year undergraduate degree, but should 
include the preparation of workers for a broad range of positions 
along a career ladder. Consideration shall be given to the use of 
grant funds to demonstrate a significant ability to expand a 
training program or project through such means as training more 
workers or offering more courses, and training programs or projects 
resulting from collaborations, especially with more than one small 
business or with a labor-management training program or project. The 
need for the training shall be justified through reliable regional, 
State, or local data.
    (2) Grants.
    (A) Eligibility.
    To carry out the programs and projects described in paragraph 
(1)(A), the Secretary of Labor shall, in consultation with the 
Secretary of Commerce, subject to the availability of funds in the 
H-1B Nonimmigrant Petitioner Account, award--
    (i) 75 percent of the grants to a local workforce investment 
board established under section 2831(b) or section 2832 of this 
title or consortia of such boards in a region. Each workforce 
investment board or consortia of boards receiving grant funds shall 
represent a local or regional public-private partnership consisting 
of at least--
    (I) one workforce investment board;
    (II) one community-based organization or higher education 
institution or labor union; and
    (III) one business or business-related nonprofit organization 
such as a trade associated: Provided, That the activities of such 
local or regional public-private partnership described in this 
subsection shall be conducted in coordination with the activities of 
the relevant local workforce investment board or boards established 
under the Workforce Investment Act of 1998 (29 U.S.C. 2832); and
    (ii) 25 percent of the grants under the Secretary of Labor's 
authority to award grants for demonstration projects or program 
sunder section 171 of the Workforce Investment Act [FN1] [29 
U.S.C.A. Sec.  2916] to partnership that shall consist of at least 2 
businesses or a business-related nonprofit organization that 
represents more than one business, and that may include any 
educational, labor, community organization, or workforce investment 
board, except that such grant funds may be used only to carry out a 
strategy that would otherwise not be eligible for funds provided 
under clause (i), due to barriers in meeting those partnership 
eligibility criteria, on a national, multistate, regional, or rural 
area (such as rural telework programs) basis.
    (B) Designation of responsible fiscal grants.
    Each partnership formed under subparagraph (A) shall designate a 
responsible fiscal agent to receive and disburse grant funds under 
this subsection.
    (C) Partnership considerations.
    Consideration in the awarding of grants shall be given to any 
partnership that involves and directly benefits more than one small 
business (each consisting of 100 employees or less).
    (D) Allocation of grants.
    In making grants under this paragraph, the Secretary shall make 
every effort to fairly distribute grants across rural and urban 
areas, and across the different geographic regions of the United 
States. The total amount of grants awarded to carry out program and 
projects described in paragraph (1)(A) shall be allocated as 
follows:
    (i) At least 80 percent of the grants shall be awarded to 
programs and projects that train employed and unemployed workers in 
skills in high technology, information technology, and 
biotechnology, including skills needed for software and 
communications services, telecommunications, systems installation 
and integration, computers and communications hardware, advanced 
manufacturing, health care technology, biotechnology and biomedical 
research and manufacturing, and innovation services.
    (ii) No more than 20 percent of the grants shall be available to 
programs and projects that train employed and unemployed workers for 
skills related to any single specialty occupation, as define din 
section 1184(i) of Title 8.
    (3) Start-up funds.
    (A) In general.
    Except as provided in subparagraph (B), not more than 5 percent 
of any single grant, or not to exceed $75,000, whichever is less, 
may be used toward the start-up costs of partnerships or new 
training programs and projects.
    (B) Exception.
    In the case of partnerships consisting primarily of small 
businesses, not more than 10 percent of any single grant, or 
$150,000, whichever is less, may be used toward the start-up costs 
of partnerships or new training programs and projects.
    (C) Duration of start-up period.
    For purposes of this subsection, a start-up period consists of a 
period of not more than 2 months after the grant period begins, at 
which time training shall immediately begin and no further Federal 
funds maybe used for start-up purposes.
    (4) Training outcomes.
    (A) Consideration for certain programs and projects.
    Consideration in the awarding of grants shall be given to 
applicants that provide a specific, measurable commitment upon 
successful completion of a training course, to--
    (i) hire or effectuate the hiring of unemployed trainees (where 
applicable);
    (ii) increase the wages or salary of incumbent workers (where 
applicable); and
    (iii) provide skill certifications to trainees or link the 
training to industry-accepted occupational skill standards, 
certificates, or licensing requirements.
    (B) Requirements for grant applications,
    Applications for grants shall--
    (i) articulate the level of skills that workers will be trained 
for and the manner by which attainment of those skills will be 
measured;
    (ii) include an agreement that the program or project shall be 
subject to evaluation by the Secretary of Labor to measure its 
effectiveness; and
    (iii) in the case of an application for a grant under paragraph 
(2)(A)(ii), explain what barriers prevent the strategy from being 
implemented through a grant made under paragraph (2)(A)(i).
    (5) Matching funds.

[[Page 37563]]

    Each application for a grant to carry out a program or project 
described in paragraph (1)(1) shall state the manner by which the 
partnership will provide non-Federal matching resources (cash, or 
in-kind contributions, or both) equal to at least 50 percent of the 
total grant a mount awarded under paragraph (2)(A)(i), and at least 
100 percent of the total grant amount awarded under paragraph 
(2)(A)(ii). At least one-half of the non-Federal matching funds 
shall be from the business or businesses or business-related 
nonprofit organizations involved. Consideration in the award of 
grants shall be given to applicants that provide a specific 
commitment or commitments of resources from other public or private 
source, or both, so as to demonstrate the long-term sustainability 
of the training program or project after the grant expires.
    (6) Administrative costs.
    An entity that receives a grant to carry out a program or 
project described in paragraph (1)(A) may not use more than 10 
percent of the amount of the grant to pay for administrative costs 
associated with the program or project.

Applicable Sections of the Immigration and Nationality Act

    The Immigration and Nationality Act (INA) (section 
101(a)(15)(h)(i)(b)) (8 U.S.C. 1101(a)(15)(H)(i)(B)) defines the H-
1B alien as one who is coming temporarily to the United States to 
perform services in a specialty occupation * * * or as a fashion 
model. * * *''
    The INA (Section 214(i)) sets criteria to define the term 
``speciality occupation:''
    (1) For purposes of section 1101(a)(15)(H)(i)(b) and paragraph 
1, a ``specialty occupation'' means an occupation that requires--(A) 
theoretical and practical application of a body of highly 
specialized knowledge and,
    (B) attainment of a bachelor's higher degree in the specific 
speciality (or its equivalent) as a minimum for entry into the 
occupation in the United States.
    (2) For purposes of section 1101(a)(15)(H)(i)(b)), the 
requirements of this paragraph with respect to a specialty 
occupation are--(A) full state licensure to practice in the 
occupation, if such licensure is required to practice in the 
occupation.
    (B) completion of the degree described in paragraph (1)(B) for 
the occupation, or (C)(i) experience in the specialty equivalent to 
the completion of such degree, and (ii) recognition of expertise in 
the specialty through progressively responsible positions relating 
to the specialty.

  Appendix B--H-1B Petitions Approved in Fiscal Years 2001 and 2002 for Top 10 Major Occupational Groups: U.S.
                            Bureau of Citizenship and Immigration Services, June 2003
----------------------------------------------------------------------------------------------------------------
                                                                                          FY 2001      FY 2002
                         Occupations                           Group rank   LCA* code     percent      percent
----------------------------------------------------------------------------------------------------------------
Computer-related............................................            1           03         58.0         38.3
Systems analysis and programming............................  ...........          030  ...........  ...........
Data communications and networks............................  ...........          031  ...........  ...........
Computer systems technical support..........................  ...........          033  ...........  ...........
Architecture, engineering and surveying.....................            2        00/01         12.2         12.8
Electrical/Electronics engineering..........................  ...........          003  ...........  ...........
Mechanical engineering......................................  ...........          007  ...........  ...........
Architectural...............................................  ...........          001  ...........  ...........
Civil engineering...........................................  ...........          005  ...........  ...........
Industrial engineering......................................  ...........          012  ...........  ...........
Administrative specializations..............................            3           16          7.2         10.7
Accountants, auditors and related occupations...............  ...........          160  ...........  ...........
Budget and management systems...............................  ...........          161  ...........  ...........
Sales and distribution management...........................  ...........          163  ...........  ...........
Education...................................................            4           09          5.3         10.5
College and university education............................  ...........          090  ...........  ...........
Preschool, primary school and kindergarten education........  ...........          092  ...........  ...........
Medicine and health.........................................        \1\ 6           07          3.4          6.6
                                                                    \2\ 5
Physicians and surgeons.....................................  ...........          070  ...........  ...........
Managers and officials......................................        \1\ 6           18          3.8          5.4
                                                                    \2\ 6
Life Sciences...............................................            7           04          2.0          3.5
Biological Sciences.........................................  ...........          041  ...........  ...........
Social Sciences.............................................            8           05          1.9          2.8
Economics...................................................  ...........          050  ...........  ...........
Mathematics and physical sciences...........................            9           02          1.7          2.8
Chemistry...................................................  ...........          022  ...........  ...........
Miscellaneous professional, technical and managerial........           10           19          1.7         2.5
----------------------------------------------------------------------------------------------------------------
\1\ FY 2001.
\2\ FY 2002.
* Labor Condition Application code.

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Appendix C
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Appendix D
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Appendix E: Project Profile Information
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[FR Doc. 03-15922 Filed 6-23-03; 8:45 am]
BILLING CODE 4510-30-C