[Federal Register: October 13, 2004 (Volume 69, Number 197)]
[Notices]               
[Page 60898-60903]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13oc04-82]                         

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DEPARTMENT OF LABOR

Employment and Training Administration

 
North American Free Trade Agreement--Transitional Adjustment 
Assistance Program: General Administration Letter Interpreting Federal 
Law

    The Employment and Training Administration interprets Federal law 
requirements pertaining to the North American Free Trade Agreement--
Transitional Adjustment Assistance (NAFTA--TAA). These interpretations 
are issued in General Administration Letters (GALs) to the State 
Workforce Agencies. Several GALs were inadvertently omitted from 
publication in the Federal Register by a previous Administration. In 
order to correct these omissions, the GALs described below are 
published in the Federal Register in order to inform the public.
    GAL 7-94, Change 1, Change 2, and Change 3 to amend operating 
instructions issued in GAL 7-94 that address applicant processing 
procedures for workers certified as eligible to apply for benefits 
under both subchapters A (the regular TAA program), and D (the NAFTA-
TAA program), of Chapter II, Title II of the Trade Act of 1974, as 
amended.

GAL 7-94, Change 1

    Changes to the TAA program operating instructions in GAL 7-94, 
Change 1 focus on revising operating instructions to the States 
pertaining to nonduplication of assistance, allowing workers eligible 
for both NAFTA-TAA and regular TAA programs to make a one-time change 
in program participation in cases where certification for a second 
Trade program occurs after the worker has begun to receive benefits 
under the other Trade program. States are also encouraged to implement 
applicant tracking and reporting procedures that will ensure States' 
compliance and allow the States to evaluate Trade program 
effectiveness.

GAL 7-94, Change 2

    Changes to the TAA program operating instructions in GAL 7-94, 
Change 2 focus on amended operating instructions to the State Agencies 
in regard to making individual eligibility determinations for Trade 
Readjustment Allowance (TRA) benefits under the NAFTA-TAA program. 
These new instructions implement the United States District Court for 
the District of Columbia preliminary approval, pending a hearing for 
class members, of a settlement of Baker v. Reich between the Department 
of Labor and the United Auto Workers Union (UAW).

GAL 7-94, Change 3

    This GAL provides for States use of NAFTA-TAA program funds for 
dual eligible workers that opt for TAA, in order to provide training, 
job search and relocation services in cases where regular Trade program 
funds are not available (either the State does not have funds in its 
regular Trade account or has not received requested regular Trade funds 
from the National Office).

    Dated: October 6, 2004.
Emily Stover DeRocco,
Assistant Secretary for Employment and Training.

U.S. Department of Labor, Employment and Training Administration, 
Washington, DC 20210

Classification: TAA.
Correspondence Symbol: TWT.
Issue Date: March 29, 1996.
Expiration Date: March 31, 1997.
Rescissions: None.

    Directive: General Administration Letter No. 07-94, Change 1.

[[Page 60899]]

    To: All State Employment Security Agencies.
    From: Barbara Ann Farmer, Administrator for Regional Management.
    Subject: Trade Adjustment Assistance (TAA) Program Revised 
Applicant Processing Procedures.
    1. Purpose. To amend operating instructions issued in GAL 7-94 that 
address applicant processing procedures for workers certified as 
eligible to apply for benefits under both subchapters A (the regular 
TAA program), and D (the NAFTA-TAA program), of Chapter II, Title II of 
the Trade Act of 1974, as amended.
    2. References. The Trade Act of 1974, as amended; Title V of the 
North American Free Trade Agreement Implementation Act (Pub. L. 103-
182), 20 CFR part 617; GAL 6-94; and GAL 7-94.
    3. Background. The Trade Adjustment Assistance program provides 
reemployment services, including training, job search and relocation 
allowances and trade readjustment allowances (TRA) to individuals whose 
unemployment is linked to increased imports, or, in the case of the 
NAFTA-TAA program, to a shift in production to Mexico or Canada. 
Chapter II, Title II of the Trade Act of 1974, as amended, requires the 
Secretary of Labor to implement and carry out the specified worker 
adjustment assistance provisions. The Secretary has executed agreements 
with each State to administer adjustment services.
    In response to inquiries from the States, this GAL contains amended 
Employment and Training Administration (ETA) operating instructions for 
the States. It requires States to provide every dual eligible worker 
(that is, a worker whose separation is covered by certifications under 
both the regular and NAFTA-TAA programs), at the point where they 
become eligible under the second Trade program, with the information 
necessary to make a fully informed choice regarding the Trade program 
under which they wish to permanently participate.
    4. Nonduplication of Assistance. Section 249A (19 U.S.C. 2322) of 
the Trade Act of 1974, as amended, addresses nonduplication of 
assistance:

No worker may receive assistance relating to a separation pursuant 
to certifications under both subchapters A and D of this chapter.

    The intent of this section is to prevent a worker from receiving 
duplicate benefits under both the regular TAA and NAFTA-TAA programs.
    General Administration Letter (GAL) 7-94 contains operating 
instructions to State agencies for implementing the amendments to the 
Trade Act contained in the NAFTA Implementation Act. GAL 7-94, page 16 
contains instructions pertinent to the ``Non-duplication of 
Assistance'' provision of the Law. The ``Administration'' portion of 
this instruction states:

This new section is intended to eliminate duplication of assistance 
and benefits to a worker in situations where a worker group is 
certified concurrently for both regular TAA and NAFTA-TAA. These 
situations should be uncommon. However, should this occur, the 
worker will be provided benefits under one or the other 
certification. The worker is to make the decision regarding which 
certification will apply. Once a decision is made by the worker, it 
cannot be changed. Also, State agency staff must explain the 
difference between programs so workers can make an informed choice.

    5. Revised Operating Instructions. The instructions to the States 
pertaining to Nonduplication of Assistance are revised to read as 
follows:

The intent of this section is to prevent duplication of assistance 
to workers who are eligible to receive assistance pursuant to 
certifications issued under both the regular and NAFTA-TAA programs 
(dual eligible workers). In order to fairly administer this section, 
State agency staff must fully explain the difference between 
programs to dual eligible workers. This will assure that the 
affected workers are provided with the ability to make a completely 
informed choice regarding the application of benefits under both 
programs. A dual eligible worker who has entered, or is otherwise 
receiving benefits under one program, may elect to switch after 
being certified as eligible to apply under the second program. Under 
such circumstances, the State may allow the worker's benefits to 
continue to be paid by the first program until the first convenient 
break in training as determined by the State. This approach is 
currently used with Trade eligible workers who are also enrolled 
under the Job Training Partnership Act (JTPA) Title III program. In 
order to minimize the administrative burden on the States, once a 
decision is made by the worker after becoming eligible for the 
second program, it may not be changed. This election will also stand 
in the case of a subsequent separation covered by the same two 
certifications.

    6. Applicant Processing. States are encouraged to implement 
applicant tracking and reporting procedures that will ensure States' 
compliance with these instructions and allow the States to evaluate 
Trade program effectiveness.
    Section 225 (19 U.S.C. 2275) of the Trade Act requires that workers 
be provided with full information about benefits. Therefore, when 
workers become certified as eligible to apply for benefits under the 
second program, Trade staff are to fully explain the difference between 
the programs so that workers can make a completely informed choice as 
to the program under which the workers elect to receive benefits. 
States are to counsel workers who are receiving benefits under one 
program and later become eligible to receive benefits under a second 
certification. States are to determine the workers' choice of the 
program under which they wish to permanently participate within 15 
working days from the date the second certification is signed by the 
National Office. Workers are also to be clearly informed about 
eligibility requirements for TRA under both programs. Once the worker 
has made a decision it may not be changed. This election will also 
stand in the case of a subsequent separation covered by the same two 
certifications.
    A change from one program to the other can never result in 
increasing the amount of benefits for training, job search, and 
relocation allowances that a claimant may receive. However, some 
claimants may become eligible for TRA by changing from the NAFTA-TAA 
program to the regular program. The reason for this is that the regular 
program does not require, as a condition of eligibility for TRA, that a 
worker enter a training program within a fixed period. In any event, 
such claimants would never be entitled to more than one full round of 
TRA benefits on the basis of the two certifications.
    In order to minimize the administrative burden on the States, when 
a worker receiving benefits under one program elects to switch after 
becoming eligible for the second program, the State may, as is current 
practice with Trade eligible workers who are dual enrolled under the 
JTPA Title III program, allow the workers' benefits to continue to be 
paid by the first program until the first convenient break (e.g., the 
end of a semester/quarter) in training as determined by the State.
    Since the Trade program will often depend upon the local Job 
Service office staff to ``counsel'' a claimant to choose between NAFTA 
and regular Trade benefits, written instructions are to be provided by 
the State to all local Office staff who counsel trade applicants. The 
instructions provided by the State must continue to encourage workers 
to enter training as quickly as possible after they are initially 
certified as eligible to receive benefits, regardless of which program 
they are certified under.
    7. Action Required. States are required to implement the revised 
administrative procedures for ensuring non-duplication of assistance as 
set forth in this document as of April 1, 1996. States are advised to 
inform all

[[Page 60900]]

appropriate State staff of the contents of this document and ensure 
that staff have the management information system (MIS) capability to 
effectively track and report on benefits and services provided to dual 
eligible workers to avoid duplication of services.
    8. Inquiries. States are to direct all inquiries to the appropriate 
ETA Regional Office.

U.S. Department of Labor, Employment and Training Administration 
Washington, DC 20210

Classification: TAA.
Correspondence Symbol: TWT.
Issue Date: October 23, 1996.
Expiration Date: October 31, 1997.
Rescissions: None.

    Directive: General Administration Letter No. 07-94, Change 2.
    To: All State Employment Security Agencies.
    From: Barbara Ann Farmer, Administrator for Regional Management.
    Subject: Trade Adjustment Assistance (TAA) Program Revised 
Applicant Processing Procedures.
    1. Purpose. To amend operating instructions issued in GAL 7-94 that 
address applicant processing procedures for workers certified as 
eligible to apply for benefits under both subchapters A (the regular 
TAA program), and D (the North American Free Trade Agreement-
Transitional Adjustment Assistance (NAFTA-TAA) program), of Chapter II, 
Title II of the Trade Act of 1974, as amended.
    2. References. The Trade Act of 1974, as amended; Title V of the 
North American Free Trade Agreement Implementation Act (Pub. L. 103-
182), 20 CFR part 617; GAL 6-94; and GAL 7-94.
    3. Background. General Administration Letter (GAL) 7-94 contains 
operating instructions to State agencies for implementing the 
amendments to the Trade Act contained in the NAFTA Implementation Act. 
This Change 2 contains amended operating instructions to the State 
Agencies in regard to making individual eligibility determinations for 
Trade Readjustment Allowance (TRA) benefits under the NAFTA-TAA 
program. These new instructions implement the United States District 
Court for the District of Columbia preliminary approval, pending a 
hearing for class members, of a settlement of Baker v. Reich between 
the Department of Labor and the United Auto Workers Union (UAW).
    Pursuant to the Court decision and order issued on June 11, 1996, 
the settlement approved on September 9, 1996 bars the use of the 
current NAFTA-TAA definition, as set forth in GAL 7-94, of ``initial 
unemployment compensation benefit period'' currently employed by State 
Agencies in determining applicants' eligibility for TRA benefits under 
the NAFTA-TAA program.
    In accordance with this settlement, this GAL also contains 
Employment and Training Administration (ETA) operating instructions for 
the States for providing relief for workers who were incorrectly 
denied, or who otherwise incorrectly did not receive, TRA benefits 
under the prior definition.
    4. Trade Readjustment Allowances--Previous Operating Instructions. 
GAL 7-94, page 13, contains instructions pertinent to the ``Trade 
Readjustment Allowances'' provision of the NAFTA Implementation Act. 
These instructions address TRA as follows:

    To qualify for TRA payments, an eligible worker must be enrolled 
in a training program approved by the later of--
    i. The last day of the 16th week of such worker's initial 
unemployment compensation benefit period, or
    ii. The last day of the 6th week after the week in which the 
Secretary of Labor issues a certification covering such worker.
    Application of time periods. The 16-week time requirement for 
enrolling in training in order to qualify for TRA will be applied 
literally. In order to be eligible to receive TRA under a NAFTA-TAA 
certification, the worker must be enrolled in an approved training 
program by the end of the 16th week of that worker's initial 
unemployment compensation benefit period.
    This fixed 16-week period begins with the effective date of the 
claim and ends with the last day of the 16th week thereafter. 
Included in this 16-week fixed period are weeks of waiting period 
credit, weeks of disqualification, weeks of employment, and weeks of 
unemployment.
    Initial unemployment compensation benefit period means the same 
as the term ``first benefit period'' defined at 20 CFR 617.3(r). 
``First benefit period'' means the benefit period established after 
the individual's first qualifying separation or in which such 
separation occurs.

    5. Trade Readjustment Allowances--Revised Operating Instructions. 
The instructions to the States pertaining to TRA are revised to read as 
follows:

    To qualify for TRA payments, an eligible worker must be enrolled 
in a training program approved by the later of--
    i. The last day of the 16th week of such worker's initial 
unemployment compensation benefit period, or
    ii. The last day of the 6th week after the week in which the 
Secretary of Labor issues a certification covering such worker.
    Section 250(d)(3)(B) of the Trade Act provides for a 30-day 
extension of these deadlines in case of extenuating circumstances.
    Application of time periods. The 16-week time requirement for 
enrolling in training in order to qualify for TRA will be applied as 
set forth below. In order to be eligible to receive TRA benefits 
under a NAFTA-TAA certification, the worker must be enrolled in an 
approved training program by the end of the 16th week of that 
worker's ``initial unemployment compensation benefit period''.
    This 16-week period begins with the first day of the first 
calendar week following the worker's most recent qualifying 
separation and ends with the last day of the 15th consecutive 
calendar week thereafter. Included in this 16-week period are weeks 
of waiting period credit, weeks of disqualification, weeks of 
employment, and weeks of unemployment.
    Initial unemployment compensation benefit period means the 
period beginning with the first week following a worker's most 
recent qualifying separation due to import competition from or 
production shift to Canada or Mexico. This term is not the same as 
the term ``first benefit period'' defined at 20 CFR 617.3(r).

    6. Retroactive Relief. In order to provide relief for all workers 
incorrectly denied TRA benefits, or who would not have qualified for 
benefits, under GAL 7-94, the States will implement the following 
actions:
    a. Each State NAFTA-TAA coordinator must compile a list of all 
workers who, since the inception of the NAFTA-TAA program, had 
qualifying separations from employment for NAFTA-related reasons and 
who were denied or otherwise did not receive TRA benefits under either 
the NAFTA-TAA program or the regular TAA program (i.e., dual certified) 
for the same qualifying separation. (The State need not include on the 
list anyone determined ineligible for TRA benefits under the NAFTA-TAA 
program for reasons other than the State's application of the original 
definition of ``initial unemployment compensation benefit period''.)
    b. State NAFTA--TAA coordinators must then notify, no later than 
November 22, 1996, all the workers on the list (at their last known 
address), that as a result of the U.S. District Court's action, they 
may now be eligible to receive TRA benefits under the NAFTA-TAA program 
if they enroll in TAA-approved training, or receive basic TRA if they 
have already completed training that is TAA approved.
    c. The notification sent to the workers must include the attached 
Court documents which include instructions for claimants to contact 
their local Employment Service office by April 15, 1997, for a 
determination or redetermination of their individual eligibility for 
training assistance and TRA benefits under the NAFTA-TAA program. Upon 
request, the worker notifications, including the Court

[[Page 60901]]

documents, must be supplied to a claimant in Spanish or other 
languages.
    d. States must also inform affected local labor unions and State 
and local central labor bodies of the settlement and of their members' 
rights to pursue a claim for TRA benefits.
    e. Finally, the States must publish, in the same manner as notices 
of Certification under the NAFTA-TAA program are published, the 
attached (or similar) press notice about the settlement in newspapers 
of general circulation. In order to inform as many eligible workers as 
possible of the right to receive a determination or redetermination of 
individual eligibility for training and TRA under the NAFTA-TAA 
program, States must also make this information available to television 
and post it on the Internet (where available).
    7. Eligibility Determinations and Redeterminations. In order to 
provide retroactive relief under the settlement, States must provide 
eligibility determinations or redeterminations to workers who were 
previously denied, or who would not have qualified for, TRA benefits 
under the NAFTA-TAA program based upon the prior definition of 
``initial unemployment compensation benefit period''. An individual 
need not have previously filed a claim to be eligible for retroactive 
relief under this settlement. Workers determined eligible for TRA 
benefits under the terms of the settlement must be advised that they 
have 16 weeks, from the date the eligibility determination or 
redetermination was made by the State, to enroll in a TAA-approved 
training program, if they have not previously completed one. (In the 
event that appropriate training is not scheduled to begin within 30 
days of the expiration of the 16-week period, a claimant will be 
permitted to take advantage of the 30-day extension period provided in 
Section 250(d)(3)(B) of the Trade Act.) Under the settlement, the 
States' calculation of the 104-week training period in 20 CFR 
617.22(f)(2) begins with the worker's first day of training and the 
104-week eligibility period for TRA begins with the first week 
following the week that the eligibility determination or 
redetermination for TRA was made.
    The 210-day rule under 19 U.S.C. 2293(b) is not applicable to 
individuals seeking retroactive relief under this settlement. A worker 
may receive basic and additional TRA benefits only during periods of 
participation in a TAA-approved training program or may continue to 
receive only basic TRA after completion of a TAA-approved training 
program.
    Retroactive relief is intended to cover all individuals affected 
between the time the NAFTA-TAA program was implemented and the time the 
settlement was approved by the Court on September 9, 1996.
    8. Reporting Required. The Department is required to report to the 
UAW on the States' implementation of the settlement. ETA is seeking 
expedited clearance for this requirement under the Paperwork Reduction 
Act of 1995. To assist this effort, States must provide the following 
information to the Department as directed:
    a. States must provide to the Office of Trade Adjustment 
Assistance, by December 31, 1996, either by phone, electronic mail, or 
in writing, a summary of the number of workers notified of the proposed 
settlement and the number of workers who have contacted the State 
agency for eligibility determinations.
    b. Beginning with the quarterly reporting period ending December 
31, 1996, the States will provide the National Office with quarterly 
written reports on: The number of people requesting determination or 
redetermination of entitlement; the number of people determined 
entitled to relief; and the number of people receiving TRA first 
payments under this settlement. ETA Form 563 should be used for this 
purpose.
    c. The States are required to continue to report the data described 
in paragraph b above on a quarterly basis for five additional quarters.
    9. Funding. In order to support the States' efforts to comply with 
the terms of this settlement, the Department will allow the States to 
request and/or access funds from the following sources:
    a. States may use or apply unspent or surplus NAFTA-TAA 
administration funds to cover the costs of notifying, processing and 
making referral to training for potentially affected workers.
    b. States should report redeterminations on line 5, section C of 
the UI-3 report. The MPU value is the same as the allocated initial 
claims MPU.
    c. States may, using the ETA form 9023, request special NAFTA-TAA 
administration funds to pay the costs of upgrading or enhancing their 
NAFTA-TAA MIS reporting capability systems, including improving the UI 
interface in order to help contact workers within the stipulated 
timeframes or to help track and report on benefits and services 
provided to workers determined eligible for relief.
    d. Additional NAFTA-TAA program funds will also be made available 
to the States through the usual ETA 9023 request form to help States 
provide NAFTA-TAA training to workers determined eligible for 
retroactive relief.
    10. Action Required.
    a. States are required to implement the revised instructions for 
making individual eligibility determinations for TRA benefits under the 
NAFTA-TAA program as set forth in these operating instructions and the 
settlement agreement.
    b. States must provide retroactive relief under the settlement to 
workers who were previously denied, or who would not have qualified 
for, TRA benefits under the NAFTA-TAA program through the States' use 
of the previous interpretation of ``initial unemployment compensation 
benefit period'' prohibited by the settlement and the Court's decision 
and order.
    c. States should inform all appropriate State staff of the contents 
of this document and ensure that staff have the necessary resources 
available to comply with the settlement.
    11. Inquiries. States should direct all inquiries to the 
appropriate ETA Regional Office.
    12. Attachment. Draft NAFTA News Release.

Draft NAFTA News Release

    Prenote to States: When you issue this release, make sure all 
references to the ``employment service'' conform to the name of the 
responsible agency in your State.

Benefits Extended to More Workers

U.S. Labor Department, Union Reach Agreement on Broader Definition of 
NAFTA Eligibility
    The U.S. Department of Labor and the United Autoworkers Union 
recently reached agreement on the conditions under which workers may 
receive benefits under the North American Free Trade Agreement 
Transitional Adjustment Assistance (NAFTA-TAA) program. The new, 
broader definition means that more workers will be eligible for income-
support payments while they train for new jobs.
    The settlement provides that a worker separated from employment for 
reasons related to trade with Mexico or Canada, or a shift of 
production to Mexico or Canada, may now be eligible to receive income-
support benefits, known as Trade Readjustment Allowances (TRA), if the 
worker has been certified by the Labor Department and is participating 
in an approved training program within 16 weeks of the worker's most 
recent qualifying separation (layoff).
    The issue was resolved September 9, 1996, when the United States 
District

[[Page 60902]]

Court for the District of Columbia issued preliminary approval, pending 
a fairness hearing for class members, of a settlement of Baker v. 
Reich, a case brought by the United Autoworkers Union against the 
Department of Labor, concerning the definition of eligibility.
    The settlement applies to individuals who had been certified for 
NAFTA-TAA but who were denied TRA benefits because they did not meet an 
earlier definition of eligibility, which was rejected by the court in 
June.
    State Employment Security Agencies have begun to notify workers 
certified for NAFTA-TAA that, as a result of the court's action, they 
may now be eligible to receive TRA benefits if they enroll in 
vocational training or have completed appropriate training.
    Workers who have been certified for NAFTA-TAA have until April 15, 
1997, to contact their local Employment Service office for a 
redetermination of their eligibility for assistance. If a worker is 
determined to be eligible for benefits under NAFTA, the worker may then 
receive TRA benefits if he or she is participating in, or has 
completed, a TAA-approved training program. A worker may have up to 104 
weeks from the date of redetermination to collect up to 52 weeks of TRA 
benefits.
    Employment Service offices are listed in the blue pages of the 
telephone directory under State government. Depending on the State, 
these offices may also be called the ``Job Service'' or the 
``Employment Security Commission.''

U.S. Department of Labor, Employment and Training Administration, 
Washington, DC 20210

Classification TAA.
Correspondence Symbol: TWT.
Date: July 3, 1997.

    Directive: General Administration Letter No. 07-94, Change 3.
    To: All State Employment Security Agencies.
    From: Robert S. Kenyon, Acting Administrator for Regional 
Management.
    Subject: Trade Adjustment Assistance (TAA) Program, Revised 
Applicant Processing Procedures.
    1. Purpose. To clarify operating instructions issued in GAL 7-94, 
Change 1 regarding applicant processing procedures for workers 
certified as eligible to apply for benefits under both subchapters A 
(the Regular TAA program) and D (the NAFTA-TAA Program), of Chapter II, 
Title II of the Trade Act of 1974.
    2. References. The Trade Act of 1974; 20 CFR part 617; and GAL 7-94 
and 7-94, Change 1.
    3. Background. In response to inquiries from the States, GAL 7-94, 
Change 1 provided amended Employment and Training Administration 
Operating Instructions to the States regarding the delivery of services 
to any worker who is dual eligible (that is, a worker whose separation 
is covered by certifications under both the regular Trade and NAFTA-TAA 
programs). It required States to provide every dual eligible worker, at 
the point at which they become eligible under the second Trade 
certification, with the information necessary to make a fully informed 
choice regarding the Trade program under which they wish to permanently 
participate. The intent of the GAL was to help the States encourage 
workers to enter training as quickly as possible after they are 
initially certified as eligible to receive benefits, regardless of the 
program under which they are certified.
    This GAL amends the applicant processing procedures for States for 
implementing the amended Employment and Training operating instructions 
contained in GAL 7-94, Change 1.
    4. Operating Instructions. GAL 7-94, Change 1 revised the operating 
instructions to the States pertaining to Nonduplication of Assistance 
to read as follows:

The intent of this section is to prevent duplication of assistance 
to workers who are eligible to receive assistance pursuant to 
certifications issued under both the regular and NAFTA-TAA programs 
(dual eligible workers). In order to fairly administer this section, 
State agency staff must fully explain the difference between 
programs to dual eligible workers. This will assure that the 
affected workers are provided with the ability to make a fully 
informed choice regarding the application of benefits under both 
programs. A dual eligible worker who has entered, or is otherwise 
receiving benefits under one program, may elect to switch after 
being certified as eligible to apply under the second program. Under 
such circumstances, the State may allow the worker's benefits to 
continue to be paid by the first program until the first convenient 
break in training as determined by the State. This approach is 
currently used with Trade eligible workers who are also enrolled 
under the Job Training Partnership Act (JTPA) Title III program. In 
order to minimize the administrative burden on the States, once a 
decision is made by the worker after becoming eligible for the 
second program it may not be changed. This election will also stand 
in the case of a subsequent separation covered by the same two 
certifications.

    5. Revised Applicant Processing. GAL 7-94, Change 1 also revised 
applicant processing procedures to provide greater flexibility and 
reduce the administrative burden on the States to serve dislocated 
workers. States were informed that when a worker receiving benefits 
under one program elects to switch after becoming eligible for the 
second program, the State may, as is current practice with Trade 
eligible workers who are dual enrolled under the JTPA Title III 
program, allow the workers' benefits to continue to be paid by the 
first program until the first convenient break (e.g., the end of a 
semester/quarter) in training as determined by the State. This did not 
affect the prohibition that, in any event, claimants are never entitled 
to more than one full round of TAA services and TRA on the basis of the 
two certifications, nor does this new guidance change this prohibition.
    States have recently noted that with the increasing number of 
workers certified under both programs there may, at some point, be 
insufficient funding available to provide services to all workers 
requesting assistance under the regular Trade program. It is estimated 
that 65-70% of workers certified as eligible for NAFTA-TAA program 
assistance are also certified eligible for regular Trade program 
assistance and that a significant number of these NAFTA-TAA eligible 
workers currently elect to receive services under the regular Trade 
program.
    Therefore, to keep up with this increased demand for regular Trade 
program related services, States may, where regular Trade program funds 
are not available (either the State does not have funds in its regular 
Trade account or has not received requested regular Trade funds from 
the National Office), use NAFTA-TAA program funds to provide training, 
job search and relocation services to dual eligible workers. The State 
may fund such services for dual eligible workers from NAFTA-TAA program 
funds until regular Trade program funds are available, at the first 
convenient break in training as determined by the State. For purposes 
of participant tracking on the 563 report, workers should be counted as 
a participant in the program from which the funding for their training, 
job search or relocation services is sourced.
    The intent is to allow the States to effectively process the 
increasing number of NAFTA-impacted workers applying for assistance 
under the regular TAA program. This will ensure that a worker receives 
rapid assistance, including placement in training, regardless of the 
program from which the worker formally elects to receive services.
    6. Action Required. State Administrators are requested to:

[[Page 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