Federal Register / Vol. 69, No. 197 / Wednesday, October 13, 2004 / Notices 60903

a. Convey the information in this 

directive to appropriate staff. 

b. Request that Trade program staff 

review the information and ensure that 

appropriate arrangements are made with 

both program and resource allocation 

staff to implement these revised 

applicant processing procedures. 

c. Encourage appropriate officials to 

review the present State TAA program 

funding and benefits delivery system to 

identify potential problem areas and 

ensure that regular Trade and NAFTA–

TAA program funds are tracked and 

monitored in accordance with the 

information provided in this transmittal. 

7. Inquiries. Inquiries should be 

directed to appropriate Regional Offices.

[FR Doc. 04–22920 Filed 10–12–04; 8:45 am] 

BILLING CODE 4510–30–U

DEPARTMENT OF LABOR

Employment and Training 

Administration 

Trade Adjustment Assistance 

Program: Training and Employment 

Guidance Letter Interpreting Federal 

Law 

The Employment and Training 

Administration interprets federal law 

requirements pertaining to Trade 

Adjustment Assistance (TAA). These 

interpretations are issued in Training 

and Employment Guidance Letters 

(TEGLs) to the State Workforce 

Agencies. The TEGL described below is 

published in the Federal Register in 

order to inform the public. 

TEGL 11–02, Change 1 

TEGL 11–02, Change 1 advises states 

of the federal law requirements 

applicable to implementing reforms of 

the Trade Adjustment Assistance (TAA) 

program enacted by the TAA Reform 

Act of 2002. 

The operating instructions in TEGL 

11–02, Change 1 are issued to the states 

and the cooperating state workforce 

agencies (SWAs) as guidance provided 

by the Department of Labor (DOL) in its 

role as the principal in the TAA 

program. As agents of the Secretary of 

Labor, the states and cooperating SWAs 

may not vary from the operating 

instructions in TEGL 11–02, Change 1 

without prior approval from DOL. 

Pending the issuance of regulations 

implementing the provisions of the TAA 

Reform Act of 2002, the operating 

instructions in TEGL 11–02 and TEGL 

11–02, Change 1 constitute the 

controlling guidance for the states and 

the cooperating SWAs in implementing 

and administering the Trade Act of 

1974, as amended, pursuant to the 

agreements between the states and the 

Secretary of Labor under Section 239 of 

the Trade Act of 1974, as amended. 

Changes to the TAA program 

operating instructions in TEGL 11–02, 

Change 1 focus on further explanation 

of requirements relating to eligibility 

deadlines and to the issuance of training 

waivers, and supplement the guidance 

issued in TEGL 11–02.

Dated: October 6, 2004. 

Emily Stover DeRocco, 

Assistant Secretary for Training and 

Employment.

Training and Employment Guidance Letter 

No. 11–02, Change 1 

To: All State Workforce Agencies, All State 

Workforce Liaisons, All One-Stop Center 

System Leads. 

From: Emily Stover DeRocco, Assistant 

Secretary. 

Subject: Change 1 to the Operating 

Instructions for Implementing the 

Amendments to the Trade Act of 1974 

Enacted by the Trade Act of 2002. 

1. Purpose. To provide guidance to State 

Workforce Agencies (SWAs) on training 

deadlines, issuing waivers to the Trade 

Adjustment Assistance (TAA) program 

training requirements, and additional 

information on implementing the TAA 

Reform Act of 2002. 

2. References. The Trade Act of 1974, as 

amended (Pub. L. 93–618, as amended) (‘‘the 

Trade Act’’); the Trade Act of 2002 (Pub. L. 

107–210) (‘‘the 2002 amendments’’); 20 CFR 

Part 617; Training and Employment 

Guidance Letter (TEGL) No. 11–02 (October 

10, 2002); TEGL No. 20–02 (March 3, 2003); 

General Administration Letter (GAL) No. 7–

94 (December 28, 1993); Unemployment 

Insurance Program Letter (UIPL) No. 24–03 

and No. 33–03. The 2002 amendments to the 

TAA program are also known as the Trade 

Adjustment Assistance Reform Act of 2002. 

3. Clarification of Training Deadlines for 

Eligibility for Trade Readjustment 

Allowances (TRA). The training deadlines 

requiring clarification include the following: 

• ‘‘8/16 week deadline’’ for enrolling in 

training. 

• 45-day extension of the 8/16 week 

deadline for extenuating circumstances. 

• 210-day time limit for applying for 

training. 

Section 114 of the 2002 amendments, 

which amended section 231(a)(5)(A) of the 

Trade Act, imposed a deadline by which a 

worker must be enrolled in approved 

training, or have a waiver of this 

requirement, in order to be eligible for TRA. 

This deadline is either the last day of the 

8th week after the week of issuance of the 

certification of eligibility covering the worker 

or the last day of the 16th week after the 

worker’s most recent total qualifying 

separation, whichever is later (commonly 

referred to as the 8/16 week deadline). The 

‘‘8/16 week deadline’’ applies to eligibility 

for all TRA, both basic and additional TRA. 

If a worker fails to meet the applicable 8/16 

week deadline, then the worker is not eligible 

for any TRA (basic TRA or additional TRA, 

including TRA for remedial training) under 

the relevant certification. In many cases, the 

8/16 week deadline for a worker will be 

reached while the worker is still receiving 

unemployment insurance (UI). Some workers 

are not aware that this deadline may apply 

before they exhaust their UI. The SWA is 

responsible for informing workers of these 

requirements. The SWA must also assist such 

workers in enrolling in an approved training 

program prior to the 8/16 week deadline, or 

issue the workers waivers prior to the 8/16 

week deadline, if appropriate. 

Under certain extenuating circumstances, 

the 8/16 week deadline for enrollment may 

be extended for up to 45 days. TEGL No. 11–

02 explained the definition of ‘‘extenuating 

circumstances.’’ That definition applies and 

includes situations that could arise, such as 

when a worker has been enrolled in a 

training program that is abruptly cancelled, 

where a worker suffers injury or illness that 

adversely affects the worker’s ability to enroll 

in a training program, or other events where 

the states can justify and document that the 

application of extenuating circumstances is 

warranted. 

The 2002 amendments did not change the 

210-day time limit applicable to additional 

TRA. Additional TRA, beyond basic TRA, 

may be paid to workers participating in 

approved training who meet all TRA 

eligibility requirements, including the 210-

day deadline. This means, in order to be 

eligible for additional TRA, a worker must 

have filed a bona fide application for training 

with the SWA within 210 days of either the 

issuance of the certification covering the 

worker or the worker’s most recent 

separation, whichever is later. This 210-day 

deadline applies to additional TRA, but not 

to remedial TRA that may be received by 

workers enrolled in remedial training. 

SWAs should be mindful that the 210-day 

deadline may pass if a worker has a longterm waiver of the training requirement. This 

could happen if a worker (who lacks 

marketable skills) receives a waiver due to 

lack of training funds. For example, if a 

worker receives a waiver 16 weeks after the 

worker’s most recent qualifying separation 

and that waiver remains in effect for the 

maximum 26 weeks, then a total of 42 weeks 

(294 days) might pass without the worker 

being required to be enrolled in approved 

training. If the worker does not file a bona 

fide application for training with the SWA 

during this 210-day period, then the worker 

is ineligible for additional TRA. Therefore, 

SWA’s are responsible for ensuring that 

workers are informed of this deadline. 

Issuance of a waiver before the 8/16 week 

deadline might occur while the worker is still 

receiving UI. In these instances, workers 

must meet the Extended Benefit work test 

requirement (except as provided in 20 CFR 

617.11 (a)(2)(vi)(B)) as a condition of TRA. 

4. HCTC and Waivers. All workers covered 

by TAA or NAFTA–TAA certified petitions 

who are receiving TRA, or would be 

receiving TRA except they have not 

exhausted their UI, may be eligible for the 

Health Coverage Tax Credit (HCTC) under 

the 2002 amendments. States are responsible 

for identifying and transmitting the names of 

60904 Federal Register / Vol. 69, No. 197 / Wednesday, October 13, 2004 / Notices 

those individuals to the Internal Revenue 

Service’s HCTC Program Office in accordance 

with instructions contained in UIPL No. 24–

03. The HCTC Program Office is ultimately 

responsible for determining whether HCTCeligible TAA recipients meet all other 

qualifying criteria for receipt of the HCTC. 

If a worker is still on UI and seeking the 

HCTC, actions must be taken to ensure that 

all criteria for TRA eligibility are met as 

described in TEGL No. 11–02, including that 

the worker is enrolled in an approved 

training program, has completed an approved 

training program, or has received a written 

waiver of the training requirement. 

A preliminary assessment of each trade 

affected worker’s skills must be carried out 

to identify workers for whom immediate 

enrollment in training is appropriate. Except 

where such an assessment of a worker clearly 

indicates a need to enroll in training 

immediately, the Department of Labor 

believes it would generally be appropriate to 

approve a waiver request under the 

marketable skills condition if such a 

determination is made shortly after 

separation and the worker qualifies for such 

a waiver. This waiver would allow some 

period of job search and avoid removing 

some workers prematurely from the labor 

force and investing training resources that 

may not be necessary to helping a worker 

obtain reemployment. All waivers must be 

reevaluated every 30 days for the duration of 

the waiver period. If the waiver is issued on 

the basis of marketable skills, the 

reevaluation will take into account the 

reasons the individual has been unable to 

obtain employment during the job search. If 

the difficulty finding work is attributed to 

skill deficiencies, it may be appropriate to 

revoke the waiver and immediately enroll the 

worker in training. 

It should be emphasized that waivers are 

not permitted under the NAFTA–TAA 

program. Therefore, workers covered by a 

NAFTA–TAA certification may only qualify 

for HCTC if the worker is receiving TRA or 

if the worker is enrolled in an approved 

training program, or has completed an 

approved training program, while still 

receiving UI and while satisfying the other 

TRA eligibility criteria found at 20 CFR 

617.11. 

5. Extension of Waivers Beyond Six 

Months. The discussion in sections 3 and 4 

above cover cases that may require a 

determination on whether to issue a waiver 

of the training requirement before a worker’s 

UI entitlement has expired. The TAA Reform 

Act of 2002 specifically limits the maximum 

duration of a waiver to six months, unless the 

Secretary determines otherwise (section 

231(c)(2)(A) of the Trade Act). In the absence 

of such a determination by the Secretary, a 

waiver issued during a worker’s UI period 

often will not cover the worker’s entire 

entitlement to basic TRA. For example, a sixmonth waiver could expire before all UI is 

exhausted and basic TRA begins for a worker 

who receives a waiver in order to establish 

HCTC eligibility. This can occur when a 

worker is granted a six-month waiver eight 

weeks after separation from employment. 

Such a waiver could expire one month before 

maximum entitlement to UI compensation 

(for example, 26 weeks of UI and 13 weeks 

of Temporary Extended Unemployment 

Compensation (TEUC) and basic TRA (13 

weeks) are exhausted). 

The Department interprets the wording of 

section 231(c)(2)(A) to cover cases in which 

it may be necessary to issue a waiver to a 

worker before the worker actually begins to 

receive basic TRA. Therefore, the Department 

has determined that a state may extend a 

worker’s waiver beyond six months in any 

case where it is necessary to cover the 

worker’s full entitlement to basic TRA. 

6. Action Required. States shall inform all 

appropriate staff of the contents of these 

instructions. 

7. Inquiries. States should direct all 

inquiries to the appropriate ETA Regional 

Office.

[FR Doc. 04–22919 Filed 10–12–04; 8:45 am] 

BILLING CODE 4510–30–P

DEPARTMENT OF LABOR

Employment and Training 

Administration 

Alternative Trade Adjustment 

Assistance Program: Training and 

Employment Guidance Letter 

Interpreting Federal Law 

The Employment and Training 

Administration interprets federal law 

requirements pertaining to Alternative 

Trade Adjustment Assistance (ATAA). 

These interpretations are issued in 

Training and Employment Guidance 

Letters (TEGLs) to the state workforce 

agencies. The TEGL described below is 

published in the Federal Register in 

order to inform the public. 

TEGL 2–03 TEGL 2–03 advises states 

of the federal law requirements 

applicable to implementing the 

Alternative Trade Adjustment 

Assistance (ATAA) program enacted by 

the TAA Reform Act of 2002. 

The operating instructions in TEGL 2–

03 are issued to the states and the 

cooperating state workforce agencies 

(SWAs) as guidance provided by the 

Department of Labor (DOL) in its role as 

the principal in the ATAA program. As 

agents of the Secretary of Labor, the 

states and cooperating SWAs may not 

vary from the operating instructions in 

TEGL 2–03 without prior approval from 

DOL. 

Pending the issuance of regulations 

implementing the provisions of the TAA 

Reform Act of 2002, the operating 

instructions in TEGL 2–03 constitute the 

controlling guidance for the states and 

the cooperating SWAs in implementing 

and administering the ATAA program, 

pursuant to the agreements between the 

states and the Secretary of Labor under 

Section 239 of the Trade Act of 1974, as 

amended.

Dated: October 6, 2004. 

Emily Stover DeRocco, 

Assistant Secretary for Employment and 

Training.

Employment and Training 

Administration 

Advisory System 

U.S. Department of Labor 

Washington, DC 20210

Classification TAA

Employment and Training 

Administration 

Advisory System 

U.S. Department of Labor 

Washington, DC 20210 

Classification 

TAA

Correspondence Symbol ONR

Date: August 6, 2003

Training and Employment Guidance 

Letter No. 2–03

To: All State Workforce Agencies; All 

State Workforce Liaisons /s/ 

From: Emily Stover DeRocco, Assistant 

Secretary 

Subject: Interim Operating Instructions 

for Implementing the Alternative 

Trade Adjustment Assistance 

(ATAA) for Older Workers Program 

Established by the Trade 

Adjustment Assistance Reform Act 

of 2002

1. Purpose. To transmit interim 

operating instructions for implementing 

the Alternative Trade Adjustment 

Assistance (ATAA) for Older Workers 

Program established by the Trade 

Adjustment Assistance Reform Act of 

2002. 

2. References. The Trade Act of 1974 

(Pub. L. 93–619, as amended), the Trade 

Act of 2002 (Pub. L. 107–210); the 

Workforce Investment Act of 1998; 20 

CFR part 617; 29 CFR part 90; TEGL No. 

11–02; UIPL No. 24–03. The 

amendments to the Trade Adjustment 

Assistance (‘‘TAA’’) program may also 

be referred to as the Trade Adjustment 

Assistance Reform Act of 2002 (‘‘the 

Act’’ or ‘‘the Trade Act’’). These 

amendments were included in Title I of 

the Trade Act of 2002. 

3. Background. The Act establishes 

ATAA as an alternative assistance 

program for older workers certified 

eligible to apply for Trade Adjustment 

Assistance. This program is effective for 

petitions filed on or after August 6, 

2003. The Act requires that petitioners 

who request that workers be certified for 

the ATAA program must do so at the 

time the petition is filed. ATAA is 

designed to allow TAA eligible workers 

for whom retraining may not be 

appropriate and who find 

reemployment to receive a wage subsidy 

to help bridge the salary gap between