ALASKA DEPARTMENT OF LABOR AND WORKFORCE …8 AAC 87.110(a), (b), and (d) are amended to read: 8 AAC 87.110. Targeted projects or services. (a) Priority shall be given to training

ALASKA DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT

AND

ALASKA WORKFORCE INVESTMENT BOARD

CHANGES TO REGULATIONS IN

8 AAC 87 State Training and Employment Program

♦

ADOPTION DRAFT

March 26, 2004

Register ____, _______ 2004 LABOR AND WORKFORCE DEVELOPMENT

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Title 8. Labor and Workforce Development.

Chapter 87. State Training and Employment Program. The contents list for 8 AAC 87 is amended to read: Section 10. Establishment of State Training and Employment Program (STEP)

20. Purpose of program

30. Pilot program

40. Residency

45. Program eligibility

50. Period of eligibility

60. Verification [CERTIFICATION] of displacement from employment

70. Demonstration required by employment assistance or training entity [SCOPE OF THE

PROGRAM ]

80. Services to participants

85. Grants; availability of alternative sources of funds for services

90. Limitations on services

100. (Repealed)

110. Targeted projects or services

120. Participant priority

130. (Repealed)

135. Repayment by former participants


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136. Collection procedures

140. (Repealed)

150. Accounting procedures

160. Provision of program data

170. Records inspection and retention; program [PROGRAM] monitoring and audit

180. Administrative costs

190. Date of reports

200. Financial reports

210. Performance report

990. Definitions

8 AAC 87.010 is amended to read:

8 AAC 87.010. Establishment of State Training and Employment Program (STEP).

AS 23.15.620 - 23.15.660 establish a state training and employment program (STEP).

(Eff. 7/26/90, Register 115; am 9/30/94, Register 131; am 9/19/97, Register 143;

am ____/____/2004, Register ____)

Authority: AS 23.15.620 AS 23.15.645 AS 23.15.651


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8 AAC 87.020 is amended to read: 8 AAC 87.020. Purpose of program. (a) The purpose of STEP [THE PROGRAM] is

to reduce current and future claims against unemployment benefits, foster new jobs due to the

availability of a skilled labor force, and increase training opportunities to the state's workers to

protect against fluctuations in the economy and to prepare for technological changes in the

workplace. Services to participants in STEP training include one or more of the program

elements set out in AS 23.15.640(a), subject to the restrictions and the reimbursement

requirements set out in AS 23.15.640(b) – (d) [CAREER ASSESSMENT AND

VOCATIONAL COUNSELING; CLASSROOM, CUSTOMIZED, OR ON-THE-JOB

TRAINING; SUPPORTIVE SERVICES; AND RELOCATION OR OTHER JOB-RELATED

ASSISTANCE THAT IS NECESSARY TO OBTAIN OR RETAIN EMPLOYMENT]. STEP

[THE PROGRAM] is a demonstration to evaluate state-funded training and employment

program effectiveness and the need for future funding.

(b) The Alaska Workforce Investment Board (board) will evaluate how STEP has

achieved its purpose, using the applicable standards set out in AS 23.15.580, 8 AAC 84, and

this chapter. (Eff. 7/26/90, Register 115; am ____/____/2004, Register ____)


AS 23.15.635


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8 AAC 87.030. Pilot program. Unless extended or made permanent by the

legislature, STEP [THE PROGRAM] will operate until June 30, 2004 [JUNE 30, 1998], as a

demonstration project to evaluate the effectiveness of publicly-funded [STATE-FUNDED]

training and employment services and the need for future funding. [PROJECTS FUNDED BY

THE PILOT PROGRAM MAY PROVIDE SERVICES TO PARTICIPANTS ENROLLED

BEFORE JUNE 30, 1998 IF MONEY FOR THOSE PURPOSES IS OBLIGATED BEFORE

JULY 1, 1998.] (Eff. 7/26/90, Register 115; am 8/22/92, Register 123; am 9/30/94,

Register 131; am 9/19/97, Register 143; am ____/____/2004, Register ____)

Authority: AS 23.15.645 Ch. 116, SLA 1996 Ch. 86, SLA 2002 8 AAC 87.045 is amended to read:

8 AAC 87.045. Program eligibility. (a) Except as provided in (b) of this section, a

person who meets the criteria of AS 23.15.635 is eligible for STEP training.

(b) A person eligible for training under the Workforce Investment Act (WIA) [JTPA]

is not eligible for similar training under STEP [THIS PILOT PROGRAM]. However, if the

WIA program [JTPA] determines that it is inappropriate to serve an otherwise eligible person

under the WIA program [JTPA] or if WIA program money is [JTPA MONIES ARE] not

available to provide similar services, the person may receive training or services under STEP

[THIS PROGRAM] if the person meets the [STATUTORY] criteria of AS 23.15.635. (Eff.

8/22/92, Register 123; am 9/19/97, Register 143; am ____/____/2004, Register ____)


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Authority: AS 23.15.635 AS 23.15.645 AS 23.15.651 8 AAC 87.060 is amended to read:

8 AAC 87.060. Verification [CERTIFICATION] of displacement from employment.

(a) An individual who is eligible because of a pending job loss described in AS 23.15.635(2)

[LIABLE TO BE DISPLACED] must have verification [CERTIFICATION FROM HIS OR

HER EMPLOYER] that the job loss [TERMINATION] will, or is likely to, occur. Verification

under this subsection may be in the form of a letter signed by the individual’s employer or

supervisor, a public announcement, or similar proof that the job loss will, or is likely to,

occur.

(b) An employment assistance and training entity [TRAINING ENTITIES] must

obtain the verification [CERTIFICATION] of displacement from the employer before services

may be provided. (Eff. 7/26/90, Register 115; am ____/____/2004, Register ____)

Authority: AS 23.15.635 AS 23.15.645


8 AAC 87.070. Demonstration required by employment assistance or training entity

[SCOPE OF THE PROGRAM]. In addition to the other applicable requirements of

AS 23.15 and this chapter, to [TO] receive a grant under STEP [THE PROGRAM], an

employment assistance and [A] training entity must demonstrate how the training or services to

be provided will accomplish the purpose of the program, as set out in 8 AAC 87.020.

(Eff. 7/26/90, Register 115; am ____/____/2004, Register ____)


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Authority: AS 23.15.640 AS 23.15.645


8 AAC 87.080. Services to participants. (a) When a grant is awarded to the board

[COUNCIL], the department will [SHALL] prescribe the terms and conditions of the grant. To

receive a STEP [PROGRAM] grant through the board [COUNCIL], an entity must demonstrate

that services to be provided will accomplish the purpose of the program as set out in 8 AAC

87.020 [PREPARE PARTICIPANTS FOR JOBS AS TARGETED IN THE TERMS AND

CONDITIONS OF THE GRANT].

(b) The department will provide the board [COUNCIL] with updated lists of

occupations and geographic areas that [WHICH] are appropriate to be served by STEP grants

[UNDER THIS PROGRAM] as changes are documented.

(c) In order to meet the diverse employment needs of the state, the department may

[WILL, IN ITS DISCRETION,] set spending goals to assure that expenditures provide a variety

of services and serve a variety of industry and occupational groups. (Eff. 7/26/90, Register 115;

am 8/22/92, Register 123; am 9/19/97, Register 143; am ____/____/2004, Register ____)



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8 AAC 87.085 is amended to read: 8 AAC 87.085. Grants; availability of alternative sources of funds for services. A

[WHEN A] granting entity shall determine [DETERMINES THAT], under AS 23.15.640(b),

whether alternative sources of funds for services specified in AS 23.15.640(b) are [NOT]

available [OR HAVE BEEN EXHAUSTED,]. Before awarding a grant, the granting entity

shall certify to the board, in writing, that, after a diligent inquiry, the granting entity has [IT]

determined that alternative sources of [THOSE] funds are not available, are not appropriate,

or have been exhausted. (Eff. 11/28/2001, Register 160; am ____/____/2004, Register ____)

Authority: AS 23.15.640 AS 23.15.645 AS 23.15.651 8 AAC 87.090 is amended to read:

8 AAC 87.090. Limitations on services. No more than $20,000 every five years

[$10,000] may be spent on a participant. Costs must be reasonable and customary to achieve the

purpose of the grant. (Eff. 7/26/90, Register 115; am ____/____/2004, Register ____)

Authority: AS 23.15.645


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8 AAC 87.110(a), (b), and (d) are amended to read:

8 AAC 87.110. Targeted projects or services. (a) Priority shall be given to training

that prepares participants for jobs that provide the participants with the potential to earn at

least the average annual wage within three years after completing the training and

(1) that [WHICH] require certification recognized by the Alaska Postsecondary

Education Commission, trade or labor organizations, or other skill competencies recognized by

the board [JTPA PRIVATE INDUSTRY COUNCILS];

(2) for which there are documented employment opportunities due to labor

shortages or rapidly expanding job opportunities;

(3) in occupations that [WHICH] have a high number of nonresidents or for

which alien certifications are being issued; or

(4) in geographic areas with high numbers or rates of unemployment or

discouraged workers, as documented by a local government or other reliable local resource.

(b) Subject to the restrictions and requirements set out in AS 23.15.640(b) - (d),

support services that may be offered to a participant in a training program include

(1) [PROGRAM GRANTS MAY BE USED TO PROVIDE ALTERNATIVE

METHODS FOR DELIVERY OF EMPLOYMENT ASSISTANCE TO CURRENT

UNEMPLOYMENT INSURANCE CLAIMANTS WHO DO NOT REQUIRE SPECIFIC JOB

SKILLS OR TRAINING. THESE GRANTS MAY BE USED TO PROVIDE SOME OR ALL

OF THE FOLLOWING] employment assistance that [:]


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(A) provides [(1) TO PERFORM] worker assessment and counseling

services;

(B) teaches [(2) TO TEACH] resume preparation, job search, work ethic,

interviewing and other job readiness skills;

(C) refers [(3) TO REFER] clients to support services, training and

education providers, and jobs or job placement services; and

(D) provides [(4) TO PROVIDE] experimental services and intense

levels of service that [WHICH] are not generally available to all employment service

clients; and

(2) travel to the training site and, when necessary, lodging, meals, and

incidental expenses related to the training.

. . . .

(d) The department will provide the board [COUNCIL] with updated lists of targeted

projects or services upon documenting that a project or service has potential to accomplish the

purpose of the program. (Eff. 7/26/90, Register 115; am 8/22/92, Register 123; am 9/19/97,

Register 143; am ____/____/2004, Register ____)



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8 AAC 87.120(a) and (b) are amended to read:

8 AAC 87.120. Participant priority. (a) Individuals eligible under 8 AAC 87.045

[AS 23.15.635] and within the following groups shall be targeted for program participation:

(1) current unemployment insurance claimants, including

(A) claimants who are [DETERMINED UNDER A DEPARTMENTAL

PROFILING SYSTEM TO BE] likely to exhaust benefits and need training and other

assistance [REEMPLOYMENT SERVICES] to obtain employment; [,]

(B) women; [,]

(C) minorities; [,] and

(D) persons who lack skills or whose skills have been outdated by

technological change; [PERSONS ENROLLED IN THE UNEMPLOYED PARENT

PROGRAM UNDER ALASKA TEMPORARY ASSISTANCE PROGRAM]; and

(2) persons responsible for court-ordered or administrative-ordered child support

payments.

(b) Individuals who are employed and who meet the criteria of AS 23.15.635 at the time

of application for program participation are eligible to receive services under this program.

However, service priority shall be given to those whose annual earned income, or base period

wages as determined for purposes of unemployment insurance claims, is less than the [ALASKA

ANNUAL] average annual wage for the calendar year preceding application.

. . . .


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(Eff. 7/26/90, Register 115; am 8/22/92, Register 123; am 9/30/94, Register 131; am 9/19/97,

Register 143; am ____/____/2004, Register ____)

Authority: AS 23.15.635 AS 23.15.645 8 AAC 87.135 is amended to read:

8 AAC 87.135. Repayment by former participants. (a) An individual who, while

participating in a program that received grant funds made available under AS 23.15.640(a)(6), is

provided with necessary tools, work-related clothing, safety gear, or other necessities to obtain or

retain employment shall reimburse the department an amount equal to that portion of grant funds

spent on those items. The [IF THE] individual shall begin repayment, in an amount not less

than $25 each month, no later than

[(1) HAS COMPLETED OR LEFT THE STATE TRAINING AND

EMPLOYMENT PROGRAM; AND

(2) HAS BEEN CONTINUOUSLY EMPLOYED FOR A MINIMUM OF] six

months after completing or leaving the state training and employment program.

(b) If a STEP grantee provides tools or any other item listed in (a) of this section to

a participant as an element of the program, the grantee shall require that participant to

[TO PARTICIPATE IN THE STATE TRAINING AND EMPLOYMENT PROGRAM AN

INDIVIDUAL MUST] sign a promissory note, on a form supplied by the department, for any

amount due under (a) of this section before providing the items to that individual. The

grantee shall deliver the signed promissory note to the state program manager within two

working days after it is signed.


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(c) If a [A FORMER] participant defaults on the promissory note signed as required

by (b) of this section, the department will institute collection procedures under 8 AAC

87.136 [MAY NEGOTIATE A REPAYMENT SCHEDULE WITH THE DEPARTMENT. THE

SCHEDULE MAY NOT EXCEED A PERIOD OF 12 CONSECUTIVE MONTHS].

(d) For purposes of this section,

(1) “other necessities” means items such as specialized software or resource

books that are required to learn, do, or obtain a job;

(2) “safety gear” includes safety goggles, hard hats, and similar gear

required to learn, do, or obtain a job;

(3) “tools” means durable items required to learn or do a job;

(4) “work-related clothing” includes items such as work boots, uniforms,

and interview clothes necessary to learn, do, or obtain a job. (Eff. 11/28/2001, Register 160;

am ____/____/2004, Register ____)

Authority: AS 23.15.640 AS 23.15.645


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8 AAC 87 is amended by adding a new section to read:

8 AAC 87.136. Collection procedures. If an individual who is required to sign a

promissory note under 8 AAC 87.135 fails to make the required monthly payments, the

department will send a notice, by certified mail, return receipt requested, to the individual’s last-

known address. The notice will advise the individual that, unless payment of the amount in

default is received within 30 days after the individual receives the notice, the department will, as

required by AS 23.15.640(c),

(1) obtain a judgment for default on the promissory note; and

(2) seek satisfaction of the judgment from the individual’s permanent fund

dividend. (Eff. ____/____/2004, Register ____)

Authority: AS 23.15.640 AS 23.15.645 8 AAC 87.150 is amended to read:

8 AAC 87.150. Accounting procedures. (a) A training entity shall

(1) establish a separate fund and accounting codes for receipt and disbursement

of grant money under this chapter;

(2) administer the grant money according to generally accepted accounting

procedures; and

(3) provide regular periodic reporting to the board of

(A) grant-financed activities as prescribed in the grant agreement;

and


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(B) the disposition of grant proceeds in accordance with intended use.

(b) The board [COUNCIL] shall require the training entity to comply with the audit

requirements of 2 AAC 45.010 or, if 2 AAC 45.010 is not applicable, with other generally

accepted accounting principles. (Eff. 7/26/90, Register 115; am 9/19/97, Register 143;

am ____/____/2004, Register ____)

Authority: AS 23.15.645 AS 23.15.651 The lead-in to 8 AAC 87.160 is amended to read:

8 AAC 87.160. Provision of program data. A training entity shall provide the board

[COUNCIL] with program statistics within 30 days after receipt of a written request for that

information, or as otherwise required in the grant or contract. The board [COUNCIL] shall

provide to the department program data for

. . . . (Eff. 7/26/90, Register 115; am 9/19/97, Register 143; am ____/____/2004, Register ____) Authority: AS 23.15.635 AS 23.15.645 AS 23.15.651


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8 AAC 87.170. Records inspection and retention; program monitoring and audit. A

STEP grantee shall ensure that its [ALL] records, and the records of any subcontractor, [OF

A TRAINING ENTITY] relevant to the expenditure of money received under a [THE] program

grant are [MUST BE] available to the state program manager or designee for periodic

monitoring, and for audit, within 24 hours after request. Records must be open for inspection

for at least three years after grant closeout. (Eff. 7/26/90, Register 115; am ____/____/2004,

Register ____)

Authority: AS 23.15.620 AS 23.15.645


8 AAC 87.180. Administrative costs. Subject to the limit set by AS 23.15.645(e),

allowable [ADMINISTRATIVE COSTS MAY NOT EXCEED 20 PERCENT OF THE TOTAL

GRANTS AWARDED TO THE COUNCIL. ALLOWABLE] administrative costs are those

allowable administrative costs set out in 20 C.F.R. 667.220, revised as of April 7, 2004, [APRIL

1, 2001] and adopted by reference. (Eff. 7/26/90, Register 115; am 9/19/97, Register 143;

am 11/28/2001, Register 160; am ____/____/2004, Register ____)



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8 AAC 87.190. Date of reports. The board [COUNCIL] shall provide an annual report

to the department by January 15 [SEPTEMBER 15 OF] each year. (Eff. 7/26/90, Register 115;

am 9/19/97, Register 143; am ____/____/2004, Register ____)

Authority: AS 23.15.645 AS 23.15.651


8 AAC 87.200. Financial reports. The board [COUNCIL], in its annual report to the

department, shall account for the following financial data:

(1) total program revenue [MONEY RECEIVED];

(2) total program expenditures [MONEY SPENT], including the amount spent

on

(A) administrative costs, by [STATE] budget line item; and

(B) training and other services, by program element;

(3) program fund [MONEY] balance; and

(4) expenditures for each participant who exits the program within the period

covered by the report. (Eff. 7/26/90, Register 115; am 9/19/97, Register 143;

am ____/____/2004, Register ____)

Authority: AS 23.15.645 AS 23.15.651


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8 AAC 87.210. Performance report. (a) As part of its annual report to the department,

the board [COUNCIL] shall include the following information in a performance report:

(1) number of and nature of [PILOT PROJECT]grants awarded;

(2) number of individuals registered [ENROLLED];

(3) number of individuals [PARTICIPANTS] served, by program element;

(4) total number of individuals served, by [PARTICIPANT

CHARACTERISTIC, INCLUDING] age group, sex, ethnicity, education, and employment

status at registration and at exit;

(5) total number of participants who have entered employment after exiting,

subtotaled by age group, sex, ethnicity, education, and employment status at registration

and at exit, [PARTICIPANT CHARACTERISTIC] and by program element;

(6) participant wage at time of job placement; and

(7) any findings by the board in applying the performance standards of

8 AAC 84.100.

(b) In addition to the information required under (a) of this section, the board will

report the following information:

(1) the percentage by which total unemployment insurance payments paid to

participants in the 12 months before registration decreased after exiting;

(2) the percentage of participants who claimed unemployment insurance in

the 12 months before registration who receive unemployment insurance benefits in the 12

months after exiting;


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(3) the percentage of participants who were receiving unemployment

insurance benefits at the time of registration who have not exhausted the total amount

available under their claim;

(4) the percentage of participants who are employed within the first quarter

after exiting;

(5) the percentage of participants employed in the first quarter after exiting

who are employed in the occupation identified in their individual employment plan;

(6) the percentage of participants who received training in the priority

occupations identified in 8 AAC 87.110;

(7) the percentage of participants who attained a credential or certificate of

completion. (Eff. 7/26/90, Register 115; am 9/19/97, Register 143; am ____/____/2004,

Register ____)

Authority: AS 23.15.645 AS 23.15.651


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8 AAC 87.990, including the editor’s note, is repealed and readopted to read:

8 AAC 87.990. Definitions. In AS 23.15.620 - 23.15.660 and this chapter,

(1) “Alaska Workforce Investment Board” means the board established in

AS 23.15.550;

(2) “average annual wage” has the meaning given in AS 23.20.520;

(3) “board” means the Alaska Workforce Investment Board;

(4) "department" means the Department of Labor and Workforce Development;

(5) "discouraged workers" means Alaska residents who are not working and are

not actively seeking employment because the workers are in an area with chronic

unemployment;

(6) "marginal" employment means that a person is employed for fewer than 30

hours a week and the person wishes to work 30 hours or more a week;

(7) "part-time" employment means employment of less than 37.5 hours per week;

(8) “program” means the STEP program;

(9) "seasonal" employment means employment of less than nine months during a

calendar year;

(10) “state program manager” means the individual within the department whose

duties include professional, technical, and administrative oversight of the state employment

training program under this chapter and AS 23.15.620 – 23.15.660;

(11) “STEP” means the state training and employment program established under

AS 23.15.620 – 23.15.660;


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(11) "temporary" employment means employment of less than 180 days during

the preceding 12 months;

(12) "underemployed" means

(A) employed in a job that requires less skill and training than a job for

which the employee is trained and qualified; or

(B) working less than full time and in need of training and other

assistance to obtain full-time employment;

(13) “Workforce Investment Act” or “WIA” means the federal program under 29

U.S.C. 2801 – 2945, administered by the department. (Eff. 7/26/90, Register 115; am 8/22/92,

Register 123; am 9/19/97, Register 143; am ____/____/2004, Register ____)


Editor's Notes: The average annual wage calculation referred to in 8 AAC 87.990 may be

reviewed at: http://www.labor.state.ak.us/research/unemployment insurance/taxbase.htm

As of Register 151 (October 1999), the regulations attorney made technical revisions under AS

44.62.125(b)(6) to reflect the name change of the Department of Labor to the Department of

Labor and Workforce Development made by ch. 58, SLA 1999 and the corresponding title

change of the commissioner of labor.

Documents

ALASKA DEPARTMENT OF LABOR AND WORKFORCE …8 AAC 87.110(a), (b), and (d) are amended to read: 8 AAC 87.110. Targeted projects or services. (a) Priority shall be given to training