Yolo County Workforce Innovation Board

Transcription

1 Board Members All Phase Security Inc. Buckhorn Steakhouse/ Putah Creek Café California Dept. of Rehabilitation California Employment Development Department City of Woodland Economic Development Clark Pacific DMG Mori Eclasstic, Thrive Interactive La Cooperative Campesina Los Rios Community College District Olam Tomato Processors Optimum Zendejas Home Loans PrideStaff Sacramento Central Labor Council (3) Seminis Vegetable Seeds The Scoop Frozen Yogurt Shop Woodland Aviation Woodland Adult Education Woodland Community College Yolo Food Bank Yolo Employment Services, Inc. Yolo County Workforce Innovation Board A proud partner of America s Job Center of California SM network. American s Job Center of California - One-Stop Career Center Locations West Sacramento Woodland 500-A Jefferson Blvd., Building A 25 N. Cottonwood St (916) x4327 (530) x4327 > > > NOTICE OF PUBLIC MEETING < < < Workforce Innovation Board November 8, :00 10:30 AM America s Job Center of California / Community Room / 25 North Cottonwood St., Woodland AGENDA 8:30 a.m. Call to Order Pledge of Allegiance 1. Welcome Comments, Introductions and Group Discussion 2. Public Comment / Announcements Non-Agenda Items Workforce Innovation Board (WIB) members, staff, or the public may address the WIB on subjects relating to employment and training in Yolo County. A time limit of 3 minutes may be imposed. No action may be taken on non-agenda items. 3. Establish Quorum 4. Consider Agenda Approval 5. Consent Agenda Approved with one motion unless item withdrawn for discussion a. Approve WIB minutes September 13, 2017 (Attachment) Page 1 b. Ratify the WIB Executive Committee recommendation of November 7, 2017, to appoint Randy Bloomfield of the Employment Development Department (EDD) to the WIB (Attachment) Page 4 c. Ratify the WIB Executive Committee decision of November 7, 2017, to approve Elaine Lytle and key staff to work in collaboration with other Capital Region staff with the development and submittal of a proposal in response to a Request for Application Regional Plan Implementation (Attachment) Page 7 6. Regular Agenda a. Discuss Succession Plan for WIB Elected Positions (Chair, Vice Chair, and 2 nd Vice Chair) 7. Guest Speaker / Trainer to be determined 8. Information Items a. Receive Resignation from WIB member Mary Renteria of EDD (Attachment) Page 8 b. Receive Resignation from WIB member Kevin Sanchez of Yolo Food Bank (Attachment) Page 9 c. Receive Progress Report from Michael Indiveri the One-Stop Operator (Attachment) Page 10 d. Update: Phase II MOUs Resource Sharing Agreement e. Update: Conflict of Interest Form 700 f. Update: Regional and Local Plan for g. Receive Workforce Services Draft Directive (WSDD) 171/WIOA Youth Program Requirements (Attachment) Page 11 h. Receive WSDD 172/Procurement (Attachment) Page 39 i. Receive Workforce Services Directive 17-05/Oversight and Monitoring (Attachment) Page 54 j. Receive Workforce Services Information Notice (WSIN) 17-07/Workforce Accelerator Fund 6.0 Request for Applications (Attachment) Page 62 k. Receive WSIN 17-10/EDD Introduces Benefit Programs Online (Attachment) Page 63 l. Receive WSIN 17-13/Disaster Unemployment Assistance for Workers Impacted by California

2 Wildfires (Attachment) Page 64 m. Receive WSIN 17-14/The EDD Encourages Stronger Partnerships with PHA though the JPI (Attachment) Page 65 n. Receive WSIN 17-15/RR WARN Contact List and CalJOBS Manage WARN Notifications Module (Attachment) Page WIOA Update 10. Reports a. Gary Pelfrey, WIB Chair b. Elaine Lytle, Executive Director 11. Other Business That May Come Before the Board 12. Adjourn Next Meeting: January 10, 2018 Yolo County Health and Human Services Agency America s Job Center of California 25 North Cottonwood St., Woodland / Community Room B Accommodation: In accordance with Section 202 of the Americans with Disabilities Act, if you require special assistance, meeting materials to be in an alternative format, auxiliary aids, or other person to assist you while attending the meeting, we will provide reasonable accommodation to allow participation. Contact Cyndi Sechler at (530) at least 3 business days prior to the meeting to facilitate arrangement. For more about the Yolo County Workforce Innovation Board log on to

3 Board Members All Phase Security Inc. Buckhorn Steakhouse/ Putah Creek Café California Dept. of Rehabilitation California Employment Development Department City of Woodland Economic Development Clark Pacific DMG Mori Eclasstic, Thrive Interactive La Cooperative Campesina Los Rios Community College District Olam Tomato Processors Optimum Zendejas Home Loans PrideStaff Sacramento Central Labor Council (3) Seminis Vegetable Seeds The Scoop Frozen Yogurt Shop Woodland Aviation Woodland Adult Education Woodland Community College Yolo Food Bank Yolo Employment Services, Inc. Yolo County Workforce Innovation Board A proud partner of America s Job Center of California SM network. America s Job Center of California One-Stop Career Center Locations West Sacramento Woodland 500-A Jefferson Blvd., Building A 25 N. Cottonwood Street (916) x4327 (530) x4327 Yolo County Workforce Innovation Board DRAFT Minutes September 13, 2017 The Yolo County Workforce Innovation Board convened in the offices of Yolo County Health and Human Services Agency at 25 North Cottonwood Street, Woodland, CA, with the following persons in attendance: Present: Absent: Staff: Guests: Alice Tapley, Benny Mitchell, Brett Sanders, Don Palm, Gary Pelfrey, Jennifer Pike, Ken Garrett, Kevin Sanchez, Matthew J. Vendryes, Maggie Campbell, Mary Renteria, Michelle N. Fadling, Paul Basi, Rob Carrion, Robyn David-Harris, and Susan Moylan Alfred Konuwa, Brett Sanders, John Rodriguez, Marco C. Lizarraga, Randy Young, and Wendy Ross Elaine Lytle, Lisa Vincent, Cyndi Sechler, and Steve Roberts Pete Smith, Project Specialist II, Yolo Day Reporting Center Charles Richards, Apprenticeship Consultant, State Department of Industrial Relations Sheila Zurich, Apprenticeship Consultant, State Department of Industrial Relations Cara Welch, Labor Market Information Department, E.D.D. Ioanna Iatridis, Dean CTE, Woodland Community College Dan Maguire, Economic Developer, City of Winters Lorie Perez, Yolo County Office of Education Alissa Villegas, Job Developer, Yolo Employment Services Christina Blackman, Davis Chamber of Commerce Call to Order Pledge of Allegiance Meeting called to order at 8:35 a.m. by WIB Chair, Gary Pelfrey. 1. Welcome Comments, Introductions and Group Discussion 2. Public Comment / Announcements Non-Agenda Items WIB members, staff, or the public may address the Workforce Innovation Board Executive Committee on subjects relating to employment and training in Yolo County. A time limit may be imposed. No action may be taken on non-agenda items. Lorie Perez announced Yolo County Office of Education is working to open a new Yolo County Career Academy Charter School that will be serving year old students. The focus will be direct instruction in Core Academic Subjects, Career Technical Education (CTE), and online learning resources. The CTE Industry Sectors will be Building, Trades and Construction; Hospitality and Tourism; Manufacturing and Product Development; and Transportation. Jennifer Pike announced Clark Pacific has several projects going on, and is looking to hire 130 people now, and possibly another 150 toward the end of the year. The hiring range is from entry level to Foreman, and Management. 1

4 Page 2 Workforce Innovation Board September 13, Establish Quorum Quorum established. 4. Consider Agenda Approval Gary Pelfrey asked to include Pete Smith as an additional Guest Speaker; and to move item 10-b up in the agenda. Maggie Campbell moved to approve Pete Smith as an additional Guest Speaker, and to move Agenda Item 10-b up in the agenda; Rob Carrion seconded; motion passed. 5. Consent Agenda Approved with on motion unless item withdrawn for discussion a. Approve WIB minutes July 12, 2017 b. Ratify the WIB Executive Committee decisions of August 23, 2017, regarding Phase II MOUs Resource Sharing Agreement c. Ratify the WIB Executive Committee decisions of August 23, 2017, regarding WIOA AJCC Operator d. Ratify the WIB Executive Committee decisions of August 23, 2017, regarding WIOA AJCC Certification Process Maggie Campbell moved to approve all Consent Agenda items; Don Palm seconded; motion passed. 6. Regular Agenda a. Receive/Review/Approve 2018 WIB Meeting Calendar Don Palm moved to approve the 2018 WIB Meeting Calendar; Rob Carrion seconded; motion passed. b. Discuss Potential Revisions to WIB Bylaws/Authorize (if recommended) WIB Staff to Move Forward Elaine Lytle acknowledged the membership of the WIB, acknowledged the Executive Committee members, and commended everyone on the information they have shared, their participation, and the work they have done over the last four years. Elaine stated per our Bylaws, we have an election coming up in January 2018, and want to encourage you to keep this momentum going. Please think about the Leadership roles, and consider moving forward and be nominated. 7. Guest Speakers / Trainers Charles Richards, Apprenticeship Consultant, Department of Industrial Relations Division of Apprenticeship Standards Mr. Richards gave a presentation on the programs and services offered through the Division of Apprenticeship Standards, both Union and Non-Union. Pete Smith, Project Specialist II, Yolo County Day Reporting Center/Sacramento Office of Education Mr. Smith gave a presentation on the programs and services offered through the Yolo Day Reporting Center. 8. Information Items a. Receive 2018 WIB Executive Meeting Calendar b. Update: Conflict of Interest Form 700 Lisa Vincent reported that we still have two outstanding Conflict of Interest Forms that need to be completed. c. Update: Local Plan for Lisa Vincent announced we have received verbal notification that our Local and Regional Plans have been reviewed and approved by the State Board, but waiting to receive the official written documentation. d. Receive HHSA-HHSA and WIB Staff Reassignments Memo e. Receive Workforce Services Draft Directive Percent LLSIL and Poverty Guidelines for 2017 f. Receive Workforce Services Directive 17-02/Salary and Bonus Limitations for 2017 g. Receive Workforce Services Information Notice 17-01/Second Revised Amendment to WIOA Formula Allocation PY h. Receive WSIN 17-03/Program Year Rapid Response Funding 2

5 Page 3 Workforce Innovation Board September 13, 2017 i. Receive WSIN 17-04/Deaf and Hard of Hearing Grantees for WIOA Update No updates. 10. Reports Information items were discussed and received by WIB members. a. Gary Pelfrey, WIB Chair Gary talked about the devastation in Texas and Florida, all the work and rebuilding that needs to be done, is there any way to reach out to their WIBs or would it be beneficial. Lisa Vincent stated that typically, when events like this happen, National Emergency Grants will come out, and they will be available to those Regional/Local Boards. b. Elaine Lytle, Executive Director Elaine encouraged members to think about the Leadership roles on the board. 11. Other Business That May Come Before the Board Lisa Vincent commented that the topics of discussions today in regards to partnerships, apprenticeships, adult educations, and community colleges are in alignment with the conference both her and Elaine attended last week; and we are reflective of what is going on at the state level, so thank you everyone. Gary Pelfrey stated Turkovich Winery in Winters, is building a new 73 room hotel, with a boutique, and the Buckhorn will be doing the restaurant portion. Dan Maguire stated a Fairfield Inn and Suites will be built in Winters, near the Chevron and Interstate 505. Gary Pelfrey also reported that PG&E has a brand new training center in Winters. Steve Roberts announced a Yolo County Job Fair, at the Civic Center Galleria, in West Sacramento, on October 11 th, from 10am-1:00pm. If you are interested in having a table, please let him know. Maggie Campbell announced a Building Trades Job Fair, at Raley Field, on October 6 th, from 12-4pm. Mary Renteria announced Unemployment Insurance, and Disability Insurance, will be updating their computer systems in October, so that recipients only have to use one pin number for both programs. The only problem is that recipients will have to re-enroll to receive their money. Gary Pelfrey 12. Adjourn Don Palm moved to adjourn the meeting; Ken Garrett seconded; meeting adjourned at 10:24 a.m. Next Meeting November 8, 2017 Yolo County HHSA/Community Room B Woodland One-Stop 8:30-10:30 a.m. Accommodation: In accordance with Section 202 of the Americans with Disabilities Act, if you require special assistance, meeting materials to be in an alternative format, auxiliary aids, or other person to assist you while attending this meeting, we will provide reasonable accommodation to allow participation. Contact Cyndi Sechler at at least three business days prior to the meeting to facilitate arrangements. For more about the Yolo County Workforce Innovation Board, log on to 3

6 Board Members TO: Yolo County Workforce Innovation Board A proud partner of America s Job Center of California SM network. American s Job Center of California - One-Stop Career Center Locations West Sacramento Woodland 500-A Jefferson Blvd., Building A 25 N. Cottonwood St (916) x4327 (530) x4327 Members of the Workforce Innovation Board All Phase Security Inc. Buckhorn Steakhouse/ Putah Creek Café California Dept. of Rehabilitation California Employment Development Department City of Woodland Economic Development Clark Pacific DMG Mori Eclasstic, Thrive Interactive La Cooperative Campesina Los Rios Community College District Olam Tomato Processors Optimum Zendejas Home Loans PrideStaff Sacramento Central Labor Council (3) Seminis Vegetable Seeds The Scoop Frozen Yogurt Shop Woodland Aviation Woodland Adult Education Woodland Community College Yolo Food Bank Yolo Employment Services, Inc. FROM: Gary Pelfrey, Chair DATE: November 8, 2017 SUBJECT: RECOMMENDED ACTION APPOINTMENT OF WORKFORCE INNOVATION BOARD MEMBER Ratify the Executive Committee decision of November 7, 2017, to recommend appointment of Randy Bloomfield to a four (4) year term on the Workforce Innovation Board. FISCAL IMPACT There is no fiscal impact to this action. REASON FOR RECOMMENDED ACTION Randy Bloomfield is recommended for membership to the Workforce Innovation Board by Mary Renteria. BACKGROUND Randy is employed by the State of California Employment Development Department (EDD) Northern Workforce Services Division as an Employment Program Manager III Sacramento Cluster Manager. EDD is a one-stop partner and provides a comprehensive range of employment and training services in partnership with state and local agencies and organizations through the One-Stop Career Center network system. Representatives of one-stop partners are mandated members of the local Workforce Innovation Board as created by the Workforce Innovation and Opportunity Act. The WIB By-laws state that 8(a) The term of office for each WIB members is four (4) years from the date of appointment by the Board of Supervisors. AGENCY COORDINATION If ratified by the Workforce Innovation Board, the nomination for appointment will be submitted to the Yolo County Board of Supervisors for approval. Attachment: Workforce Innovation Board Application for Randy Bloomfield. 4

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9 Board Members TO: Yolo County Workforce Innovation Board A proud partner of America s Job Center of California SM network. American s Job Center of California - One-Stop Career Center Locations West Sacramento Woodland 500-A Jefferson Blvd., Building A 25 N. Cottonwood St (916) x4327 (530) x4327 Members of the Workforce Innovation Board All Phase Security Inc. Buckhorn Steakhouse/ Putah Creek Café California Dept. of Rehabilitation California Employment Development Department City of Woodland Economic Development Clark Pacific DMG Mori Eclasstic, Thrive Interactive La Cooperative Campesina Los Rios Community College District Olam Tomato Processors Optimum Zendejas Home Loans PrideStaff Sacramento Central Labor Council (3) Seminis Vegetable Seeds The Scoop Frozen Yogurt Shop Woodland Aviation Woodland Adult Education Woodland Community College Yolo Food Bank Yolo Employment Services, Inc. FROM: Gary Pelfrey, Chair DATE: November 8, 2017 SUBJECT: RECOMMENDED ACTION REQUEST FOR APPLICATIONS REGIONAL PLAN IMPLEMENTATION Ratify the Executive Committee decision of November 7, 2017, to approve Elaine Lytle (Executive Director) and key staff to work in collaboration with the other Capital Region Workforce Development Board Directors to develop and submit a list of strategies and actions in response to the pending Request For Applications. REASON FOR RECOMMENDED ACTION The California Workforce Development Board intends to release a Request For Applications for a second round of Regional Organizing funds that will increase its level of support for regional planning and organizing from $2.4 million to $7 million statewide. Local boards are expected to coordinate with Regional Organizers to develop an application with strategies and actions that help implement the regional plan priority goals. The proposed deadline for applications is early November. BACKGROUND On February 22, 2017, the Workforce Innovation Board approved the Draft Capital Regional Workforce Development Plan for Program Years The Draft Plan was conditionally approved by the California Workforce Development Board, with some additional information/clarification being requested prior to final approval. On July 31, 2017, Sacramento Employment and Training Agency staff on behalf of the Capital Region submitted the Final Plan to the California Workforce Development Board. The California Workforce Development Board approved the final Regional Plan on August 24, FISCAL IMPACT Increase funding to the Capital Region for the purpose of Regional Plan Implementation. Sacramento Employment and Training Agency is the fiscal entity for the Capital Region. AGENCY COORDINATION The Capital Region s Workforce Development Board Directors and key regional staff to draft an application which will be submitted by Sacramento Employment and Training Agency on behalf of the Capital Region. 7

10 Board Members All Phase Security Inc. Buckhorn Steakhouse/ Putah Creek Café California Dept. of Rehabilitation California Employment Development Department City of Woodland Economic Development Clark Pacific DMG Mori Eclasstic, Thrive Interactive La Cooperative Campesina Los Rios Community College District Olam Tomato Processors Optimum Zendejas Home Loans PrideStaff Sacramento Central Labor Council (3) Seminis Vegetable Seeds The Scoop Frozen Yogurt Shop West Sacramento Chamber of Commerce Woodland Aviation Woodland Adult Education Woodland Community College Yolo Food Bank Yolo Employment Services, Inc. TO: FROM: Yolo County Workforce Innovation Board A proud partner of America s Job Center of California SM network. American s Job Center of California - One-Stop Career Center Locations West Sacramento Woodland 500-A Jefferson Blvd., Building A 25 N. Cottonwood St (916) x4327 (530) x4327 Members of the Workforce Innovation Board Gary Pelfrey, Chair DATE: November 8, 2017 SUBJECT: RESIGNATION OF WORKFORCE INNOVATION BOARD MEMBER It was a great pleasure working/attending and being a part of the Yolo WIB however, I am submitting my notice of resignation. As we have a new Cluster Manager for the Sacramento/Yolo County Randy Bloomfield and he will be submitting the paperwork to become a member. I have passed on the book to Randy. Please let me know if any further information is needed. Thank you Mary Renteria Employment Program Manager I 8

11 Board Members All Phase Security Inc. Buckhorn Steakhouse/ Putah Creek Café California Dept. of Rehabilitation California Employment Development Department City of Woodland Economic Development Clark Pacific DMG Mori Eclasstic, Thrive Interactive La Cooperative Campesina Los Rios Community College District Olam Tomato Processors Optimum Zendejas Home Loans PrideStaff Sacramento Central Labor Council (3) Seminis Vegetable Seeds The Scoop Frozen Yogurt Shop West Sacramento Chamber of Commerce Woodland Aviation Woodland Adult Education Woodland Community College Yolo Food Bank Yolo Employment Services, Inc. TO: FROM: Yolo County Workforce Innovation Board A proud partner of America s Job Center of California SM network. American s Job Center of California - One-Stop Career Center Locations West Sacramento Woodland 500-A Jefferson Blvd., Building A 25 N. Cottonwood St (916) x4327 (530) x4327 Members of the Workforce Innovation Board Gary Pelfrey, Chair DATE: November 8, 2017 SUBJECT: Dear Gary, RESIGNATION OF WORKFORCE INNOVATION BOARD MEMBER In light of my recent appointment as the new Campaign and Project Director for Yolo Food Bank, I am no longer acting as its Executive Director. Therefore, this will serve as my letter of resignation from the Workforce Innovation Board (WIB), effective immediately. It has been a sincere pleasure to have served on the Board and to have interacted with so many of the other members. I wish the Board and all of its members the very best. Yours in community service, Kevin Sanchez Campaign & Project Director x101 9

12 ONE STOP OPERATOR (OSO) MEMORANDUM To: Yolo County Workforce Innovation Board Executive Committee From: Michael A. Indiveri (OSO) Subj: Progress Report Date: November 7, 2017 Since the last meeting of the WIB Executive Committee in August 2017, there have been some key milestones on the establishment of Yolo County s One Stop Operator. In late September, the County s HHSA has finalized the contract between the County and me to be the Yolo County One Stop Operator. I foresee the role of the One Stop Operator to be two fold. The first major area is to address, along with the AJCC partners, large system wide coordination, alignment and integration issues. This is to ensure that customers of the One stop system, (job seekers and local employers), will encounter no wrong door when they access the services of the AJCC Partners. To date, several of these issues have been identified: Common or unified intake procedures/forms Tracking partner referrals and enrollment status Alignment of customer support services Tracking performance standards & outcomes Unified outreach effort for business/employer engagement The second area is the conduct and completion of the Certification Process for Comprehensive AJCCs. This consists of the AJCC Baseline Criteria Review during the October December 2017 period, and then following in the January June 2018 period, completing the Hallmarks of Excellence. The Baseline review is to make sure that the basic services, agreements and partners are in place to offer the comprehensive service of the One Stop Centers. The Hallmarks review is to self examine 8 key areas of the system, assess where you currently are in terms of excellence, and how can each area be improved. I have developed an Action Plan for the initial Baseline Criteria Review, and those activities have started in October. Both stages of the Certification Process will involve review and documentation of MOUs, Cost Sharing Agreements, contracts, on site visits and interviews with staff and partners agencies. 10

13 WIOA YOUTH PROGRAM REQUIREMENTS GENERAL INSTRUCTIONS The attached Directive is being issued in draft to give the Workforce Development Community the opportunity to review and comment prior to final issuance. Submit any comments by or mail no later than September 27, All comments received within the comment period will be considered before issuing the final Directive. Commenters will not be responded to individually. Rather, a summary of comments will be released with the final Directive. Comments received after the specified due date will not be considered. Mail Anthony.Crouch@edd.ca.gov Include Draft Directive Comments in the subject line. Employment Development Department Attn.: WSD Policy Unit P.O. Box / MIC 50 Sacramento, CA Page 1 of 28 11

14 Date: September 14, 2017 Number: WSDD-171 EXECUTIVE SUMMARY WIOA YOUTH PROGRAM REQUIREMENTS This policy provides the guidance and establishes the procedures regarding the Workforce Innovation and Opportunity Act (WIOA) youth program, including the 75 percent out-of-school (OS) youth and 20 percent work experience minimum expenditure requirements. This policy applies to Local Workforce Development Boards (Local Boards) and Local Workforce Development Areas (Local Areas), and is effective immediately. This policy contains some state-imposed requirements. All state-imposed requirements are indicated by bold, italic type. This policy supersedes Workforce Services Directive WIOA Youth Program Requirements (WSD16-01), dated July 6, Retain this Directive until further notice. REFERENCES WIOA (Public Law ) Title 2 Code of Federal Regulations (CFR) Part 200: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Title 2 CFR Part 2900: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Department of Labor [DOL] Exceptions) Title 20 CFR Part 681: Youth Activities under Title I of the WIOA Title 20 United States Code (U.S.C.) Section 1401: Definitions Training and Employment Guidance Letter (TEGL) 21-16, Third WIOA Title I Youth Formula Program Guidance (March 2, 2017) TEGL 8-15, Subject: Second Title I WIOA Youth Program Transition Guidance (November 17, 2015) TEGL 23-14, Subject: WIOA Youth Program Transition (March 26, 2015) TEGL 19-14, Subject: Vision for the Workforce System and Initial Implementation of the WIOA (February 19, 2015) Page 2 of 28 69:244 12

15 TEGL 12-14, Subject: Allowable Uses and Funding Limits of Workforce Investment Act (WIA) Program Year (PY) 2014 funds for WIOA Transitional Activities (October 28, 2014) TEGL 13-09, Subject: Contracting Strategies That Facilitate Serving the Youth Most In Need (February 16, 2010) California Education Code (EC) Sections , 58500, and Workforce Services Directive WSD16-1, Subject: WIOA Youth Program Requirements (September 16, 2016) BACKGROUND The WIOA Section 129 introduces key investments in OS youth and work experience. Specifically, it increases the minimum OS youth expenditure rate from 30 percent under WIA to 75 percent under WIOA, and introduces a 20 percent work experience expenditure requirement. Additionally, it adds new program elements, increasing the number of required youth program elements from 10 under WIA to 14 under WIOA. Operational implementation of the WIOA youth program began July 1, 2015, with all provisions taking effect July 1, Local Areas were expected to use their PY WIOA youth formula funds to properly align their youth programs and services in preparation for full WIOA youth program implementation effective July 1, On August 19, 2016, the DOL issued the WIOA Final Rules. Among other things, the WIOA Final Rules establish a poverty rate of 25 percent for a high poverty area, allow Local Boards to directly provide youth services, allow for youth work experiences education and work components to be provided sequentially, and clarify youth program eligibility. The DOL has also published three additional TEGLs since 2015 providing further guidance and clarification for the WIOA Title I youth program. Therefore, the state is issuing its third iteration of the WIOA Youth Program Requirements directive to ensure state guidance is in full alignment with the WIOA Statute, the WIOA Final Rules, TEGL 23-14, TEGL 8-15, and TEGL Although some of the deadlines for implementation of the WIOA requirements have passed, the Employment Development Department (EDD) chose to retain past deadlines in this directive for compliance monitoring purposes. POLICY AND PROCEDURES Definitions For the purposes of this directive, the following definitions apply: Adult Education academic instruction and education services below the postsecondary level that increases an individual s ability to: read, write, and speak in English, and perform Draft Directive Page 3 of 28 13

16 mathematics or other activities necessary for the attainment of a secondary school diploma or its recognized equivalent; transition to postsecondary education and training; and obtain employment (WIOA Section 203). Attending School an individual is considered to be attending school if the individual is enrolled in secondary or postsecondary school. If a youth is between high school graduation and postsecondary education, the youth is considered an IS youth if they are registered for postsecondary education, even if they have not yet begun postsecondary classes. However, if the youth registers for postsecondary education, but does not follow through with attending classes, the youth is considered OS youth if the eligibility determination is made after youth decided not to attend postsecondary education. Youth on summer break are considered IS youth if they are enrolled to continue school in the fall (TEGL 21-16). Not Attending School an individual who is not attending a secondary or postsecondary school. In addition, individuals enrolled in the following programs would be considered an OS youth for eligibility purposes: WIOA Title II Adult Education, YouthBuild, Job Corps, high school equivalency program, or dropout re-engagement programs. o Youth attending high school equivalency programs funded by the public K-12 school system who are classified by the school system as still enrolled in school are the exception; they are considered IS youth (Title 20 CFR Section ). Non-credit bearing postsecondary classes only (TEGL 21-16). A charter school program that provides instruction exclusively in partnership with WIOA, federally-funded YouthBuild programs, federal Job Corps training or instruction, California Conservation Corps, or a state certified local conservation corps (in alignment with EC Section ). Offender - An adult or juvenile subject to any stage of the criminal justice process or an adult or juvenile who requires assistance in overcoming artificial barriers to employment resulting from a record of arrest or convictions or for whom services under WIOA may be beneficial (WIOA Section 3[38]). Postsecondary School California community colleges, and accredited public and private universities (EC Section 66010). School any secondary or postsecondary school (Title 20 CFR Section ). These include, but are not limited to: traditional K-12 public and private (e.g., continuation, magnet, charter, and home) schools. School Dropout an individual who is no longer attending any school and has not received a secondary school diploma or its recognized equivalent (WIOA Section 3[54]). Per TEGL 8-15, this term does not include individuals who dropped out of postsecondary school. Draft Directive Page 4 of 28 14

17 Secondary School a nonprofit institutional day or resident school, including a public secondary charter school, that provides secondary education, as determined under state law, except that the term does not include any education beyond grade 12 (Title 20 U.S.C. Section 1401[27]). Youth Eligibility Criteria The WIOA Section 129(a)(1) provides new eligibility criteria for the WIOA youth program. To be eligible to participate in the WIOA youth program, an individual must be an OS youth or an inschool (IS) youth. Youth enrolled after July 1, 2015, must meet the WIOA eligibility criteria. After July 1, 2015, all WIA youth participants who are enrolled in the WIA youth program must be grandfathered into the WIOA youth program, even if the participant would not otherwise be eligible for the WIOA. Local youth programs are not required to complete an eligibility re-determination if the participant has been determined eligible and enrolled under the WIA. Furthermore, these participants must be allowed to complete the WIA services specified in their individual service strategy. OS Youth Eligibility In order to receive services as an OS youth, an individual must meet the following eligibility criteria: 1. Not attending any secondary or postsecondary school (not including Title II Adult Education, YouthBuild, Job Corps, high school equivalency programs [exceptions in definitions], non-credit bearing postsecondary classes, dropout reengagement programs or charter schools with federal and state workforce partnerships). 2. Age years old. 3. One or more of the following barriers: a. A school dropout. b. A youth who is within the age of compulsory school attendance, but has not attended school for at least the most recent complete school year quarter. i. Note If the school does not use school year quarters, Local Areas must use calendar quarters. c. A recipient of a secondary school diploma or its recognized equivalent who is a low-income individual and is either basic skills deficient or an English language learner. d. An offender. e. A homeless individual or a runaway. f. An individual in foster care or who has aged out of the foster care system or who has attained 16 years of age and left foster care for kinship guardianship or adoption, a child eligible for assistance under Section 477 of the Social Security Act, or in an out-of-home placement. g. An individual who is pregnant or parenting (custodial and non-custodial parent including non-custodial fathers). Draft Directive Page 5 of 28 15

18 h. An individual with a disability. i. A low-income individual who requires additional assistance to enter or complete an educational program or to secure or hold employment. (Title 20 CFR Section ) A youth participant s eligibility is determined at intake; therefore, the youth remains eligible for youth services until exited. For example, an individual who is an OS youth at time of enrollment and is subsequently placed in school is still considered an OS youth. Additionally, an individual who is an OS youth and between the ages of at the time of enrollment, and is now beyond the age of 24, is still considered an OS youth until exited. IS Youth Eligibility In order to receive services as an IS youth, an individual must meet the following eligibility criteria: 1. Attending school, including secondary and postsecondary school. 2. Age years old (A youth with disabilities who is in an individualized education program at the age of 22 may be enrolled as an IS youth [TEGL and EC 56026]). 3. Low income individual. 4. Meets one or more of the following barriers: a. Basic skills deficient. b. An English language learner. c. An offender. d. A homeless individual or runaway. e. An individual in foster care or who has aged out of the foster care system or who has attained 16 years of age and left foster care for kinship guardianship or adoption, a child eligible for assistance under Section 477 of the Social Security Act, or in an out-of-home placement. f. Pregnant or parenting (custodial and non-custodial parent including noncustodial fathers). g. An individual with a disability. h. An individual who requires additional assistance to complete an educational program or secure and hold employment. (Title 20 CFR Section ) A youth participant s eligibility is determined at intake; therefore, the youth remains eligible for youth services until exited. For example, an individual who is an IS youth and between the ages of at the time of enrollment, and is now beyond the age of 21, is still considered an IS youth until exited. Draft Directive Page 6 of 28 16

19 Low-Income Under WIOA, a youth who receives or is eligible to receive a free or reduced lunch under the Richard B. Russell National School Lunch Act, is considered to be low-income. While the free/reduced lunch low-income category primarily applies to IS Youth, OS youth may also qualify as low income if the youth is a parent living in the same household as a child who receives or is eligible to receive free or reduced price lunch based on their income level. However, not all youth who receive a free or reduced priced lunch automatically qualify as lowincome for the WIOA youth program eligibility. In areas where a school district subsidizes all student meals under the Hunger-Free Kids Act of 2010, the Local Area must base low-income status on an individual student s eligibility to receive free or reduced price lunch or on the youth s ability to meet one of the other low-income categories under WIOA. A youth living in a high-poverty area is automatically considered to be a low-income individual. A high-poverty area is a Census tract or county that has a poverty rate of at least 25 percent as set every 5 years using American Community Survey (ACS) 5-Year data. Local Areas may access ACS 5-Year data on the U.S. Census Fact Finder website to determine the poverty rate. TEGL 21-16, Attachment 2 - Determining Whether Youth are Living in a High Poverty Area, provides stepby-step instruction on how to calculate the poverty rate. Calculating Income For income calculation purposes, if an individual is not living in a single residence with other family members that individual is not considered a member of a family. When determining a youth s eligibility based on low-income status, Local Areas must do the following: Include Unemployment Insurance as income. Include child support payments as income. For IS youth with a disability, consider only the youth s own income rather than their family s income. (TEGL 21-16) Low-Income Exception The WIOA maintains a five percent low-income eligibility exception where five percent of Local Area youth participants who ordinarily would need to be low-income do not need to meet the low-income provision. However, because not all OS youth are required to be low-income, the five percent low-income exception under WIOA is calculated based on the five percent of youth enrolled in a given program year who would ordinarily be required to meet the low-income criteria. The five percent low-income exception may include OS youth under eligibility categories 3c and 3i, IS youth, or a combination of both, not to exceed five percent of all WIOA youth participants served in a given program year. Draft Directive Page 7 of 28 17

20 Requires Additional Assistance Under WIOA, no more than five percent of IS youth enrolled in a given program year may be found eligible based solely on meeting the criterion, requires additional assistance. This limitation applies to IS youth enrolled on or after July 1, Therefore, participants that were enrolled under WIA and carried into WIOA would not be factored in. Local Boards are responsible for establishing local definitions and eligibility documentation requirements for requires additional assistance as it relates to both OS and IS youth. The local policy should be reasonable, quantifiable, and based on evidence that the specific characteristic of the youth identified in the policy objectively requires additional assistance. As outlined in California s Unified Strategic Workforce Development Plan (State Plan), examples could include, but are not limited to, the following: Have repeated at least one secondary grade level or are one year over age for grade. Have a core grade point average of less than 1.5. For each year of secondary education, are at least two semester credits behind the rate required to graduate from high school. Are emancipated youth. Have aged out of foster care. Are previous dropouts or have been suspended five or more times or have been expelled. Have received court/agency referrals mandating school attendance. Are deemed at risk of dropping out of school by a school official. Have been referred to or are being treated by an agency for a substance abuse related problem. Have experienced recent traumatic events, are victims of abuse, or reside in an abusive environment as documented by a school official or other qualified professional. Have serious emotional, medical or psychological problems as documented by a qualified professional. Have never held a job (applies to OS youth). Have been fired from a job within the 12 months prior to application (applies to OS youth). Have never held a full-time job for more than 13 consecutive weeks (applies to OS youth). OS Youth The WIOA shifts the primary focus of youth formula funds to support the educational and career success of OS youth. As a result of this shift, the cost per participant under WIOA may increase as many OS youth require more intensive and costly services. Consequently, fewer participants might be served under the WIOA youth program due to the more intensive and costly services for the increased emphasis on the OS youth population. Draft Directive Page 8 of 28 18

21 OS Youth Expenditure Requirement Local Areas must spend at least 75 percent of their WIOA youth formula allocation on youth workforce investment activities for OS youth (WIOA Section 129[a][4]). The OS youth expenditure rate is calculated after subtracting funds spent on administrative costs. The following example illustrates how a Local Area would calculate its 75 percent OS youth expenditure requirement: Youth Formula Allocation Administration Costs Youth Program Expenditure 75 Percent Requirement $2,000,000 $180,000 $1,820,000 $1,365,000 In this example, the Local Area s OS youth expenditure requirement is $1,365,000. The Local Area received $2 million and spent $180,000 or nine percent (2,000,000 x.09) on administration costs. The remaining $1,820,000 ($2,000,000-$180,000) is subject to the 75 percent OS youth expenditure requirement. Therefore, the Local Area would be required to spend at least $1,365,000 ($1,820,000 x.75) on OS youth. Some Local Areas may not have been immediately prepared to spend at least 75 percent of their PY youth funds on OS youth. These Local Areas were required to demonstrate progress towards meeting the requirement through increased expenditures on OS youth (compared to their PY youth expenditures). Specifically, by June 30, 2016, Local Areas were required to increase their PY OS youth expenditures by at least 10 percentage points over their PY OS youth expenditures, and have a minimum OS youth expenditure rate of 50 percent. The following table and examples illustrate how a Local Area would have calculated their required increase in OS youth expenditures: PY OS youth expenditure rate First year PY expenditure requirement > 40% Must increase by 10 percentage points < 40% Must increase to at least 50% Draft Directive Page 9 of 28 19

22 Example Required 10 Percentage Point Increase Funding Year Youth Formula Allocation Administration Costs Youth Program Expenditure OS Youth Percentage OS Youth Expenditure PY $1,000,000 $90,000 $910,000 50% $455,000 PY $1,200,000 $108,000 $1,092,000 60% $655,200 In this example, the Local Area received a PY youth formula allocation of $1 million. The Local Area spent $455,000 or 50 percent ($910,000 x.50) of its program expenditures on OS youth. The Local Area received a PY youth formula allocation of $1.2 million. Since the Local Area had a PY OS youth expenditure rate of 50 percent, it was required to increase its PY OS youth expenditure rate at least 10 percentage points to at least 60 percent or $655,200 ($1,092,000 x.60). Example Required 50 Percent Minimum Expenditure Funding Year Youth Formula Allocation Administration Costs Youth Program Expenditure OS Youth Percentage OS Youth Expenditure PY $1,000,000 $90,000 $910,000 30% $273,000 PY $1,200,000 $108,000 $1,092,000 50% $546,000 In this example, the Local Area received a PY youth formula allocation of $1 million. The Local Area spent $273,000 or 30 percent ($910,000 x.30) of its program expenditures on OS youth. The Local Area received a PY youth formula allocation of $1.2 million. Since the Local Area had a PY OS youth expenditure rate of 30 percent, it was required to increase its PY OS youth expenditure rate to at least 50 percent or $546,000 ($1,092,000 x.50). Beginning with the PY youth funds, Local Areas are required to meet the full 75 percent OS youth expenditure requirement. The EDD calculated PY OS youth expenditures at the end of the first program year of the two year availability of the funds (i.e., June 30, 2016), and provided the figure to each Local Area. Local Areas that did not meet the 75 percent expenditure rate with their PY youth funds were required to submit a corrective action plan to their assigned Regional Advisor by December 31, The corrective action plan was required to include the following information: How the Local Area planned to meet the 75 percent OS youth expenditure rate with their PY youth formula funds. Strategies the Local Area had taken to secure contractors, establish partnerships, and transition their youth program focus from IS youth to OS youth. Draft Directive Page 10 of 28 20

23 Beginning PY , Local Areas must submit a corrective action plan for any program year in which they do not meet the 75 percent expenditure OS youth expenditure rate. A corrective action plan is included as Attachment 2 to this Directive. Local Areas must submit their corrective action plan as follows: Mail Courier FAX ATTN: (Name of Regional Advisor) Central Office Workforce Service Division, MIC 50 Employment Development Department P.O. Box Sacramento, CA ATTN: (Name of Regional Advisor) Central Office Workforce Services Division, MIC 50 Employment Development Department 722 Capitol Mall, Room 5099 Sacramento, CA , Attn: (Name of Regional Advisor) Recruiting OS Youth Under WIA, some Local Areas may have been serving low numbers of OS youth. These Local Areas should have used the first year of WIOA implementation (i.e., July 1, 2015, through June 30, 2016) to align their youth program design to start increasing recruitment and outreach to move towards meeting the 75 percent OS youth expenditure requirement. Youth outreach and recruitment are among the limited instances in which WIOA youth funds may be expended on costs related to individuals who are not yet participants. However, youth program services may not be provided until a formal eligibility determination being made. For tips and best practices regarding outreach and recruiting OS youth see Attachment 3 of this directive, Outreach and Recruitment of OS Youth. WIA 30 Percent Expenditure Requirement The WIA 30 percent OS youth expenditure requirement continued to apply to Local Areas serving OS youth with WIA funds after July 1, The OS youth expenditure rates are tracked and reported on a specific program year s allocation. For the PY WIA youth formula allocation, the 30 percent OS youth expenditure minimum applied. Draft Directive Page 11 of 28 21

24 Work Experience The WIOA places a priority on providing youth with occupational learning opportunities through work experience. Work Experience Criteria Work experience provides IS and OS youth an invaluable opportunity to develop work place skills. Paid and unpaid work experiences must include academic and occupational education (provided either concurrently or sequentially) and may include the following: Summer employment opportunities and other employment opportunities available throughout the school year. Local Areas may, but do not have to, provide summer employment opportunities. Under WIA, summer employment was its own program element. Under WIOA, it is incorporated into work experience. Local Areas have the flexibility to decide which work experiences are provided as long as the Local Area spends at least 20 percent of their WIOA youth formula allocation on work experience (Title 20 CFR Section ). Pre-apprenticeship programs. Pre-apprenticeship is a program designed to prepare individuals to enter and succeed in an apprenticeship program. Pre-apprenticeship programs include the following elements: o Training and curriculum that aligns with the skill needs of employers in the economy of the state or region involved. o Access to educational and career counseling and other supportive services, directly or indirectly. o Hands-on, meaningful learning activities that are connected to education and training activities. o Opportunities to attain at least one industry-recognized credential. o A partnership with one or more registered apprenticeship programs that assists in placing individuals who complete the pre-apprenticeship program in a registered apprenticeship program (Title 20 CFR Section ). Internships and job shadowing. Job shadowing is a temporary, unpaid exposure to the workplace in an occupational area of interest to the participant and may last anywhere from a few hours to a week or more (TEGL 21-16). On-the-job training (OJT) opportunities. OJT means training by an employer that is provided to a paid participant while engaged in in a job that meets the following criteria: o Provides knowledge or skills essential to the full and adequate performance of the job. o Is made available through a program that provides reimbursement to the employer of up to 50 percent of the wage rate of the participant or up to 75 percent in circumstance of extraordinary costs of providing the training and additional supervision related to the training. Draft Directive Page 12 of 28 22

25 o Is limited in duration to the occupation for which the participant is being trained, taking into account the content of the training, the prior work experience of the participant, and the service strategy of the participant as appropriate (WIOA Section 3[44]). The academic and occupational education component refers to contextual learning that accompanies a work experience. It includes the information necessary to understand and work in specific industries or occupations. For example, if a youth is in a work experience in a hospital, the occupational education could be learning about the duties of different types of hospital occupations such as a phlebotomist, radiology tech, or physical therapist. Whereas, the academic education could be learning some of the information individuals in those occupations need to know such as why blood type matters, the name of a specific bone in the body, or the function of a specific ligament. Local programs have the flexibility to determine the appropriate type of academic and occupational education necessary for a specific work experience. Further, Local Areas may decide who provides the academic and occupational education component. The academic component may take place inside or outside the work site, and the work experience employer may provide the academic and occupational education component or such components may be provided separately in the classroom or through other means (TEGL 21-16). Youth formula funds may be used to pay a participant s wages and related benefits for work experience in the public, private, for-profit or non-profit sectors when the participant s objective assessment and individual service strategy indicate that a work experience is appropriate. Additionally, youth formula funds may be used to pay wages and staffing costs for the development and management of work experience. Allowable expenditures beyond wages may include the following: Staff time spent identifying potential work experience opportunities. Staff time working with employers to develop the work experience. Staff time spent working with employers to ensure a successful work experience. Staff time spent evaluating the work experience. Classroom training or the required academic education component directly related to the work experience. Orientation sessions for participants and employers. Incentive payment to youth for an achievement directly tied to the work experience. Employability skills/job readiness training to prepare youth for a work experience. Local Policy Local Boards must establish local policies regarding work experience. At a minimum, these policies need to address the following: The duration of the work experience assignment. Draft Directive Page 13 of 28 23

26 Limitations on the number of hours. Appropriate incentives and stipends, including limitations on the types and dollar amount. The WIOA youth provisions went into effect July 1, Local Boards were required to begin implementing the work experience requirements July 1, 2015, and establish local policy and procedures for work experience no later than January 1, Work Experience Expenditure Requirement Local Areas must spend at least 20 percent of their WIOA youth formula allocation on work experience (WIOA Section 129[c][4]). Leveraged resources cannot be used to fulfill any part of the 20 percent minimum work experience expenditure requirement (TEGL 21-16). The work experience expenditure rate is calculated after subtracting funds spent on administrative costs. Additionally, the expenditure rate is not applied separately for IS youth and OS youth. The following example illustrates how a Local Area would calculate its 20 percent work experience expenditure requirement: Youth Formula Allocation Administration Costs Youth Program Expenditure 20 Percent Work Experience Requirement $2,000,000 $180,000 $1,820,000 $364,000 In this example, the Local Area s work experience expenditure requirement is $364,000. The Local Area received $2 million and spent $180,000 or nine percent ($2,000,000 x.09) on administration costs. The remaining $1,820,000 ($2,000,000-$180,000) is subject to the 20 percent work experience expenditure requirement. Therefore, the Local Area would be required to spend at least $364,000 ($1,820,000 x.20) on work experience for IS youth and OS youth. State Technical Assistance The EDD calculates work experience expenditures at the end of the first program year of the two year availability of the funds, and provides the results of these interim calculations to each Local Area and their Regional Advisor by September 30th. The Regional Advisor will assist Local Areas that appeared to be in jeopardy of not meeting the 20 percent work experience expenditure requirement by the end of the funding period. Calculating OS Youth and Work Experience Expenditures The Local Area s OS youth and work experience expenditure rates are tracked for a specific program year youth allocation. The EDD will determine whether Local Areas met their Draft Directive Page 14 of 28 24

27 expenditure requirements upon completion of expenditures of all funds in the specific program year s youth allocation as follows: Each Local Area s total youth allocation is issued as a subgrant under grant code 301. This amount is located on Line I item 5 of the Summary of WIOA Expenditures Report for Grant Code 301. At the end of the two-year life of the youth formula funds, the total allocation is adjusted by subtracting the actual administration costs (Line III item 3) reported on the June 30 expenditure report for Grant Code 301. The remaining dollar amount for a Local Area that fully spent its allocation (which is equal to the program dollars spent shown on Line V item 3) is the amount upon which the 75 percent OS youth and 20 percent work experience expenditure requirement will be based. The amount reported for OS youth (Line V, item 2) must be at least 75 percent of the total program expenditures (Line V, item 3). The amount reported for work experience (Line V item 3b) must be at least 20 percent of the total program expenditures (Line V, item 3). IS Youth Under WIOA, fewer resources are available to serve IS youth. As a result, Local Areas should identify resources and/or establish partnerships with youth providers that can provide services to IS youth. Local Boards, in collaboration with youth standing committees, may consider leveraging resources and establishing partnerships to continue serving IS youth that are cost effective, and reach more students. Transitioning WIA IS Youth Participants Local Areas may have been serving large numbers of IS youth as they transitioned into WIOA on July 1, Although there was a shift in emphasis under WIOA to OS youth, Local Areas should not have prematurely exited WIA IS youth from the program. Local Areas could have used a portion of their remaining PY funds for services to IS youth in order to assist them in successfully completing the program, while focusing PY funds on OS youth, consistent with the minimum 75 percent OS youth expenditure requirement on OS youth. Permissible Use of Youth Funds Individual Training Accounts In order to enhance individual participant choice in their education and training plans and provide flexibility to Local Areas, Local Areas may use youth funds for Individual Training Accounts (ITA) for OS youth between the ages of 16 to 24. When using youth funds for ITAs, only training providers on the Eligible Training Provider List can be used. Draft Directive Page 15 of 28 25

28 Braiding Funds Braiding funds is the process of using different funding streams to support different needs for the same participant while maintaining documentation to support the charging and allocations of cost to the separate funds. Local Areas may use braided funds to provide more comprehensive services to participants and maximize partner resources available to assist youth. Braiding funds must meet the following criteria: The cost to each funding stream is tracked, documented, and allocated based on the proportional benefit. The cost benefits two or more programs in proportions that can be determined without undue effort or cost. The youths meet the eligibility requirements for each program from which they are receiving funds. An example is when the WIOA Title I youth program and the WIOA Title II adult education program are used to serve eligible youth. The WIOA Title I resources can provide career guidance, work experiences, and leadership development, while the WIOA Title II resources can provide adult education and literacy activities. (TEGL 21-16) Incentives Local Areas may provide incentive payments to youth participants for recognition and achievement directly tied to training activities and work experiences. When offering incentive payments, Local Areas must do the following: Tie the incentive to the goals of the specific program. Outline in writing the incentive before the commencement of the program providing the payment. Align the incentive with the local program s organizational policy. Meet the requirements in 2 CFR part 200. (Title 20 CFR Section ) Youth Standing Committees Youth councils are not required under WIOA. However, Local Boards may continue to operate a youth council as a standing committee. The Youth Standing Committee may provide information and assist with planning, operations, oversight, and other issues related to the provision of services to youth. Youth Standing Committees should recommend youth policy direction, ensure quality services, and leverage financial and programmatic resources. If so delegated by the Local Board after consultation with the chief elected official, the Youth Standing Committee may oversee eligible youth providers. Draft Directive Page 16 of 28 26

29 An existing youth council may be designated as the Youth Standing Committee or a Local Board may design a Youth Standing Committee to meet the needs of the Local Area s youth program. If a Local Board does not establish a Youth Standing Committee, the Local Board is still responsible for conducting the oversight of youth activities under WIOA Section 129(c). Local Boards that choose to design a new Youth Standing Committee are reminded that the membership must include: (1) a member of the Local Board, who must chair the committee, (2) members of community based organizations with a demonstrated record of success in serving eligible youth, and (3) other individuals with appropriate expertise and experience who are not members of the Local Board. The committee may also include parents, participants, and youth. (Title 20 CFR Sections ) Procurement of WIOA Youth Service Providers Local Boards may directly provide some or all of the youth workforce service activities. If a Local Board serves as the youth service provider and performs other roles such as fiscal agent or AJCC Operator, the Local Board must have appropriate firewalls in place between the staff providing services, the staff responsible for oversight and monitoring of services, and the Local Board. The firewalls must conform to Title 20 CFR Section for demonstrating internal controls and preventing conflicts of interest. If a Local Board chooses to award grants or contracts to youth service providers for some or all activities, the Local Board must award such grants or contracts through a competitive process that does the following: Takes into consideration the ability of the youth service provider to meet performance accountability measures. Meets the procurement standards specified in Uniform Guidance and the DOL Exceptions. Follows state and local procurement laws. Local Boards must also identify youth service providers based on criteria in the State Plan (Title 20 CFR Section ). The State Plan establishes that Local Boards should select service providers that do the following: Employ proven recruitment strategies of effective outreach, engagement, enrollment, and retention of OS youth. Demonstrate meaningful partnerships with eligible training providers, institutions of higher education, and employers from in-demand industries. Offer a continuum of services that allow participants to obtain a GED/High School diploma, enroll into postsecondary education, and obtain employment within their chosen career path. Utilize career pathways and sector strategy models with a structured sequence of activities, as well as multiple entry and exit points that provide adequate supportive services. Draft Directive Page 17 of 28 27

30 Use structured work-based learning, such as paid and unpaid work experiences and career exploration that leads to gainful employment. Provide intensive case management and support services to help youth overcome complex barriers, successfully complete the program, and retain employment. Local Boards may do the following: Award youth service provider contracts on a sole source basis where the Local Board determines there is an insufficient number of eligible youth providers in the Local Area. Assign the function of selecting service provider contracts to the standing youth committee (if the Local Board has established a standing youth committee). When the Local Board awards a grant or contract to a youth service provider who also fulfills another role in the Local Area, a written agreement with Local Board and the Chief Elected Official must provide clarity on the expectation for those roles and clear methods of tracking execution and accountability for the distinct roles. Transitioning Contracts As Local Boards transitioned from WIA to WIOA, they were required to ensure their Request for Proposals (RFPs) and youth service provider contracts incorporated the new WIOA youth provisions, (e.g., new eligibility requirements for IS and OS youth, increased expenditure requirements for OS youth and work experience, and the five new program elements). Local Areas were allowed to either undergo a contract modification with their existing providers, if permissible, or procure new service providers. Since youth enrolled beginning July 1, 2015, had to meet the new WIOA eligibility criteria, Local Boards were required to have modified their existing contracts and/or procured new youth service providers by July 1, If a Local Area procured new youth service providers, the state encouraged the use of one-year contracts with additional option years, rather than multi-year contracts, to allow maximum flexibility during WIOA implementation. Local Boards may have opted to retain current WIA youth service contracts temporarily for various reasons (e.g., the contract did not include a clause that allowed for modifications to conform to new legislation, regulations, or requirements, etc.). The State Board and EDD wanted to provide Local Boards adequate time to transition to the new WIOA requirements, and, therefore, allowed Local Boards to retain their WIA youth service contracts through PY However, all RFPs and youth service provider contracts must have incorporated the new WIOA provisions by July 1, Program Elements The WIOA Section 129(c)(2) includes 14 program elements, which include the original 10 program elements under WIA (which have been consolidated to nine, as the summer employment opportunities program element is now a sub-element under paid and unpaid work experiences), and five new program elements: (1) financial literacy, (2) entrepreneurial skills Draft Directive Page 18 of 28 28

31 training, (3) services that provide labor market and employment information about in-demand industry sectors or occupations available in the Local Areas, (4) activities that help youth prepare for and transition to postsecondary education and training, and (5) education offered concurrently with and in the same context as workforce preparation activities and training for specific occupation or occupational clusters. Local Areas are not required to provide all 14 required elements to each participant. Local Areas have the flexibility to determine which specific services a youth will receive based upon the youth s assessment and service strategy. Local Boards, however, must ensure that all 14 program elements are available in their Local Area. The table below provides a list of the 14 youth program elements, identifies which program elements relate to one another, lists the DOL Participant Individual Record Layout (PIRL) data element, and provides federal citations where the program element requirements are described. In addition, the program elements are hyperlinked to the WorkforceGPS Youth Connections corresponding webpage. The Youth Connection webpage provides additional materials and resource to help service providers deliver youth services. WIOA Youth Program Element 1. Tutoring, study skills training, instruction, and dropout prevention 2. Alternative secondary school services or dropout recovery services 3. Paid and unpaid work experiences 4. Occupational skills training 5. Education offered concurrently with workforce preparation and training for a specific occupation 6. Leadership development opportunities Relates to or Overlaps with Other Program Element(s) Program elements 2 and 4 Program element 1 Program element 1 Program elements 2, 3, and 4 Applicable DOLonly PIRL Data Element Number(s) Program Description Citation 1402 TEGL TEGL ,1405 Title 20 CFR Sections , , and TEGL ,1302,1303, 1306, 1307, 1308 Title 20 CFR Sections , and TEGL Title 20 CFR Section and TEGL Title 20 CFR Sections , and TEGL Draft Directive Page 19 of 28 29

32 WIOA Youth Program Element Relates to or Overlaps with Other Program Element(s) Applicable DOLonly PIRL Data Element Number(s) Program Description Citation 7. Supportive services 1409 Title 20 CFR Section and TEGL Adult mentoring 1410 Title 20 CFR Sections and TEGL Follow-up services Program elements 7, 8, 11, 13, and Comprehensive guidance and counseling 11. Financial literacy education 12. Entrepreneurial skills training 13. Services that provide labor market information 14. Postsecondary preparation and transition activities 1412 Title 20 CFR Section and TEGL Title 20 CFR Section and TEGL Title 20 CFR Section and TEGL Title 20 CFR Section and TEGL Title 20 CFR Section and TEGL TEGL Program Element 1 Tutoring, Study Skills Training, Instruction, and Dropout Prevention Services Tutoring, study skills training and instruction that lead to a high school diploma or its equivalent, including a recognized certificate of attendance or similar document for individuals with disabilities, are reported under program element 1. These services focus on providing academic support, helping a youth identify areas of academic concern, assisting with overcoming learning obstacles, and providing tools and resources to develop learning strategies. Local Areas may provide tutoring, study skills training, and instruction in a one-onone or group setting, through resources and workshops. Program element 1 also includes secondary school dropout prevention strategies that keep a youth in school and engaged in formal learning or training. These activities include, but are not limited to, tutoring, literacy development, active learning experiences, after-school opportunities, and individualized instruction (TEGL 21-16). Draft Directive Page 20 of 28 30

33 Program Element 2 Alternative Secondary School Services or Dropout Recovery Services Alternative secondary school services that assist youth who have struggled in traditional secondary school education, are reported under program element 2. These services include, but are not limited to, basic education skills training, individualized academic instruction, and English as a Second Language training. Program element 2 also includes dropout recovery services aimed at getting youth who have dropped out of secondary education back into a secondary school or alternative secondary school/high school equivalency program (TEGL 21-16). Examples of these services include credit recovery, counseling, and educational plan development. While there is some overlap with dropout prevention strategies (program element 1), the activities within both program elements are provided with the goal of helping youth re-engage and persist in education that leads to the completion of a recognized high school equivalent. Program Element 3 Paid and Unpaid Work Experience Work experience is covered in detail on pages 12 through 15 of the directive. Program Element 4 Occupational Skills Training Occupational skills training is an organized program of study that provides specific vocational skills that lead to proficiency in performing actual tasks and technical functions required by certain occupation fields at entry, intermediate, or advanced levels. Local Areas must give priority consideration to training programs that lead to recognized postsecondary credentials that align with in-demand industry sectors or occupations in the Local Area. Occupational skills training must meet the following criteria: Be outcome-oriented and focused on an occupational goal specified in the individual service strategy. Be of sufficient duration to impart the skills needed to meet the occupational goal. Lead to the attainment of a recognized postsecondary credential. Meet the quality standards in WIOA Section 123. (Title 20 CFR Section ) For a postsecondary credential received through occupational skills training to count toward performance, the credential must meet each of the following conditions: Awarded by a recognized public or private entity. Based on standards developed or endorsed by employers or industry associations. Awarded for a specific skill rather than a general skill, such as hygiene or safety training, even if such general skills certificates are broadly required to qualify for entry-level employment or advancement in employment. Draft Directive Page 21 of 28 31

34 Necessary to obtain employment or career advancement. Neither certificates awarded by Local Boards nor work readiness certificates are included in this definition because neither type of certificate documents the measurable technical or industry/occupational skills necessary to gain employment or advance within an occupation. Likewise, such certificates must recognize technology or industry/occupational skills for the specific industry/occupation rather than general skills related to safety, hygiene, etc., even if such general skills certificates are broadly required to qualify for entry-level employment or advancement in employment A variety of different public and private entities issue recognized postsecondary credentials. Below is a list of the types of organizations that award recognized postsecondary credentials, however, not all credentials offered by these entities meet the definition of a recognized postsecondary credential: A state educational agency or a state agency responsible for administering vocational and technical education within a state. An institution of higher education described in Section 102 of the Higher Education Act (20 USC 1002) that is qualified to participate in the student financial assistance programs authorized by Title IV of that Act. This includes community colleges, proprietary schools, and all other institutions of higher education that are eligible to participate in federal student financial aid programs. A professional, industry, or employer organization (e.g., National Institute for Automotive Service Excellence certification, National Institute for Metalworking Skills, Inc., Machining Level I credential) or a product manufacturer or developer (e.g., Microsoft Certified Database Administrator, Certified Novell Engineer, Sun Certified Java Programmer) using a valid and reliable assessment of an individual s knowledge, skills, and abilities. A registered apprenticeship program. A public regulatory agency, which awards a credential upon an individual s fulfillment of educational, work experience, or skill requirements that are legally necessary for an individual to use an occupational or professional title or to practice an occupation or profession (e.g., FAA aviation mechanic certification, state certified asbestos inspector). A program that has been approved by the Department of Veterans Affairs to offer education benefits to veterans and other eligible persons. Job Corps centers that issue certificates. An institution of higher education which is formally controlled, or has been formally sanctioned or chartered, by the governing body of an Indian tribe or tribes. (TEGL 10-16) WIOA Section 123 requires the Governor to establish quality criteria for a training program that leads to a recognized postsecondary credential. Local Areas must ensure youth providers develop and implement effective youth programs by aligning career pathways, employment, Draft Directive Page 22 of 28 32

35 training, education and supportive services. Aligning strategic partnerships, communication, coordination, and collaboration among employers, educational partners, economic development entities and service providers is the foundation of ensuring access to all program elements (California Unified State Plan). For a credential received through occupational skills training to meet quality criteria, the training provider must be listed on the Eligible Training Provider List or the Local Area must have competitively procured the training. Because not all courses offered by an eligible training provider may count toward the credential attainment indicator, Local Areas must collaborate with industries to understand what credentials an industry requires for employment or career advancement (TEGL 10-16). Examples that DO meet the postsecondary credential definition include the following: An automotive service excellence (ASE) certification. A crane operator certification. A certified nursing assistant (CNA) license. Examples that DO NOT meet the postsecondary credential definition include the following: Occupational Safety and Health Administration 10 hour course that provides awareness of job-related common safety and health hazards. Cardiopulmonary resuscitation (CPR) training. Basic food preparation and hygiene certificate. An assistive technology training program such as screen reading software. Orientation and mobility training. Work or Career Readiness Certificate Program Element 5 Education Offered Concurrently with Workforce Preparation and Training for a Specific Occupation This program element reflects an integrated education and training model. While basic academic skills that occur as part of alternative secondary school services or dropout recovery services (program element 2), workforce preparation activities that occur as part of a work experience (program element 3) and occupational skills training (program element 4) are counted as other program elements when provided separately and at different times, this program element refers to the concurrent delivery of workforce preparation activities, basic academic skills, and hands-on occupational skills training in a specific occupation, occupational cluster, or career pathway (TEGL 21-16). Program Element 6 Leadership Development Opportunities This program element encourages responsibility, confidence, employability, self-determination, and other positive social behaviors. Positive social behaviors include the following: Draft Directive Page 23 of 28 33

36 Exposure to postsecondary educational possibilities. Community and service learning projects. Peer-centered activities, including peer mentoring and tutoring. Organizational and team work training Training in decision-making such as determining priorities and problem solving. Citizenship training, including life skills training such as parenting and work behavior training. Civic engagement activities which promote quality of life in a community Other leadership activities that place youth in a leadership role such as serving on the Standing Youth Committee. (Title 20 CFR Section ) Program Element 7 Supportive Services Supportive services are services that enable an individual to participate in WIOA activities. Supportive services include, but are not limited to, the following: Linkages to community services. Assistance with transportation. Assistance with child care and dependent care. Assistance with housing. Needs-related payments. Assistance with educational testing. Reasonable accommodations for youth with disabilities. Legal aid services. Referrals to health care. Assistance with work attire and work related tools including eyeglasses and protective eye gear. Assistance with books, fees, school supplies, and other necessary items for student enrolled in postsecondary education classes. Payments and fees for employment and training-related application, tests, and certifications. (Title 20 CFR Section ) Program Element 8 Adult Mentoring Adult mentoring must last at least 12 months and may take place both during the program and following the youth s exit from the program. Local Areas may use group mentoring and electronic mentoring, but at a minimum, the youth program must match the youth with an individual mentor with whom the youth interacts on a face-to-face basis. Case managers may serve as adult mentors in areas where adult mentors are sparse, however, Local Areas are strongly encouraged to find adult mentors who are not case managers (TEGL 21-16). Draft Directive Page 24 of 28 34

37 Program Element 9 Follow-up Services Follow-up services for youth may include supportive services, adult mentoring, financial literacy education, services that provide labor market and employment information about in-demand industry sectors, and activities that help youth prepare for and transition to postsecondary education and training. When Local Areas provide these program elements as follow-up services, they must occur after the exit date in order to count as follow-up services. Additionally, Local Areas should document in the case file that the program elements were provided as follow-up services post exit (TEGL 21-16). Program Element 10 Comprehensive Guidance and Counseling This program element provides individualized counseling to participants and may include drug and alcohol abuse counseling, mental health counseling, and referral to partner programs. Local Areas and youth service providers may directly provide counseling. When a Local Area or youth service provider refers a youth for counseling services that they are unable to provide, the Local Area or service provider must coordinate with the referred counseling organization to ensure continuity of service (TEGL 21-16). Program Element 11 Financial Literacy Education Financial literacy education includes information and activities such as creating budgets, setting up checking and saving accounts, managing spending, understanding credit reports, and protecting against identity theft. Local Areas may find the Financial Literacy Education Commission s guide, Incorporating Financial Capability with Youth Employment Programs, a useful resource on how to partner with financial institutions (TEGL 21-16). Program Element 12 Entrepreneurial Skills Training This program element helps youth develop the skills associated with starting and operating a small business. Such skills may include the ability to take initiative, creatively seek out and identify business opportunities, develop budgets and forecast resource needs, understand various options for acquiring capital and the trade-offs associated with each option, and communicate effectively and market oneself and one s ideas. Approaches to teaching youth entrepreneurial skills may include the following: Entrepreneurship education that provides an introduction to the values and basics of starting and running a business, such as developing a business plan and simulations of business start-up and operation. Enterprise development which provides supports and services that incubate and help youth develop their own businesses, such as helping youth access small loans or grants and providing more individualized attention to the development of viable business ideas. Draft Directive Page 25 of 28 35

38 Experiential programs that provide youth with experience in the day-to-day operation of a business. (Title 20 CFR Section ) Program Element 13 Services that Provide Labor Market and Employment Information These services provide labor market and employment information about in-demand industry sectors or occupations available in the Local Area. Services may include career awareness, career counseling, and career exploration. Career counseling provides advice and support in making decisions about what career path to take and may include providing information about resume preparation, interview skills, potential opportunities for job shadowing, and the longterm benefits of postsecondary education and training. In addition to connecting youth to selfservice labor market information (LMI) tools, youth providers should share and discuss state and local LMI with youth participants (TEGL 21-16). Program Element 14 Postsecondary Preparation and Transition Activities This program element prepares IS youth and OS youth for postsecondary education after attaining a high school diploma or its recognized equivalent. Activities include exploring postsecondary education options such as registered apprenticeships, technical training schools, community colleges and 4-year colleges and universities. Additional services may include, but are not limited to, the following: Preparing youth for the SAT/ACT Assisting with college admission applications Searching and applying for scholarships and grants Filling out financial aid applications Connecting youth to postsecondary programs (Title 20 CFR Section ) Program Design The WIOA enhances the youth program design through an increased emphasis on individual participant needs by adding new components and incorporating career pathways to the objective assessment and individual service strategy. Additionally, the WIOA requires that the individual service strategy be directly linked to one or more of the performance indicators. A program design framework is an essential step to help Local Areas develop comprehensive service strategies based upon individual needs. Local Boards, in collaboration with a youth standing committee, can provide direction and leadership to assist local youth programs on improving the quality and effectiveness of youth services. A program design framework consists of an objective assessment, an individual service strategy, case management, and follow-up services that lead toward successful outcomes for youth participants (WIOA Section 129[c][1]). Draft Directive Page 26 of 28 36

39 Assessment Requirements The WIOA youth program design requires an objective assessment of academic levels, skill levels, and services needs of each participant, which includes a review of basic skills, occupational skills, prior work experience, employability, interests, aptitudes, supportive service needs, and developmental needs. Assessments must also consider a youth s strengths rather than just focusing on areas that need improvement. Local Areas must use assessments that are valid and appropriate for the target population, and must provide reasonable accommodation in the assessment process. Any formalized testing must also be cost effective, well-matched to the test administrator s qualifications, and easy to administer and interpret results. For basic skills assessment, Local Areas are not required to use assessments approved by the Department of Education s National Reporting System (NRS), nor are Local Areas required to determine an individual s grade equivalent or educational functioning level, although use of both tools is permitted. Local Areas may also use previous basic skills assessment results if such previous assessments have been conducting with the past six months. In contrast to the initial assessment requirements described above, If Local Areas measure Educational Functioning Level (EFL) gains after program enrollment under the measurable skills gain indicator, the Local Area must use an NRS-approved assessment for both the EFL pre and post-test to determine a youth s educational functioning level. In addition to the initial assessment, a career assessment can help youth understand how a variety of their personal attributes affect their potential success and satisfaction with different career options and work environments. Local Areas may provide career assessments through the WIOA youth program staff and/or through referrals to national and community-based partners and resources. (TEGL 21-16) ACTION Bring this directive to the attention of staff and other relevant parties. Draft Directive Page 27 of 28 37

40 INQUIRIES If you have any questions, contact Regional Advisor at /S/ JAIME L. GUTIERREZ, Chief Central Office Workforce Services Division Attachments are available on the internet: 1. Frequently Asked Questions 2. OS Youth Expenditure Requirement - Corrective Action Plan 3. Outreach and Recruitment of OS Youth Draft Directive Page 28 of 28 38

41 PROCUREMENT GENERAL INSTRUCTIONS The attached Directive is being issued in draft to give the Workforce Development Community the opportunity to review and comment prior to final issuance. Submit any comments by or mail no later than October 20, All comments received within the comment period will be considered before issuing the final Directive. Commenters will not be responded to individually. Rather, a summary of comments will be released with the final Directive. Comments received after the specified due date will not be considered. Mail Kevin.webb@edd.ca.gov Include Draft Directive Comments in the subject line. Employment Development Department Attn.: Financial Management Unit P.O. Box / MIC 69 Sacramento, CA If you have any questions, contact Kevin Webb at Page 1 of 14 39

42 Date: October 9, 2017 Number: WSDD-172 EXECUTIVE SUMMARY PROCUREMENT This policy provides the guidance and establishes the procedures regarding procurement for goods and services with Workforce Innovation and Opportunity Act (WIOA) funds. This policy applies to WIOA subrecipients and is effective on the date of issuance. This policy contains some state-imposed requirements. All state-imposed requirements are indicated by bold, italic type. This policy supersedes Workforce Services Directive Procurement (WSD12-10), dated November 30, Retain this directive until further notice. REFERENCES WIOA (Public Law ) Title 2 Code of Federal Regulations (CFR) Part 200: "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards" (Uniform Guidance) Title 2 CFR Part 2900: "Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards" (Department of Labor [DOL] Exceptions) Title 20 CFR WIOA, "DOL; Final Rule" Title 34 CFR WIOA, "Joint Rule for Unified and Combined State Plans, Performance Accountability, and the One-Stop System Joint Provisions; Final Rule" California State Contracting Manual, Subject: Chapter 5: Competitive Bidding Methods (April 2015) Workforce Services Directive WSD16-10, Subject: Property - Purchasing, Inventory, and Disposal (November 10, 2016) WSD16-05, Subject: WIOA Closeout Requirements (July 29, 2016) WSD15-15, Subject: Allowable Costs (January 22, 2016) Page 2 of 14 69:45 40

43 BACKGROUND On December 26, 2013, the U.S. Office of Management and Budget (OMB) issued the Uniform Guidance under Title 2 CFR Part 200, in order to streamline the guidance on administrative requirements, cost principles, and audit requirements for federal awards. The Uniform Guidance consolidated multiple, previously separate, sets of OMB guidance into one combined set of rules. On December 19, 2014, the DOL adopted the Uniform Guidance and issued DOL Exceptions under Title 2 CFR Part The Uniform Guidance provides fiscal and administrative guidance for the administration of the WIOA program, including specific requirements for purchasing goods or services. While the format and wording of the Uniform Guidance and DOL Exceptions vary slightly from OMB s previous circulars, the intent of the federal government is consistent. The intent is to ensure that purchases of goods or services are approved and performed through fair and open competition. POLICY AND PROCEDURES Definitions Contract A legal instrument by which a subrecipient purchases property or services needed to carry out the project or program under a federal award. This term does not include a legal instrument, even if the non-federal entity considers it a contract, when the substance of the transaction meets the definition of a federal award or subaward (Uniform Guidance Section ). Contractor An entity that receives a contract (Uniform Guidance Section ). Conflict of interest An employee, officer, agent, or any member of the organization that has interest in a financial gain or tangible benefit and who participates in the selection, award, or administration of a contract supported by a federal award (Uniform Guidance Section [c][1]). Cost Analysis An element-by-element review and evaluation of the estimated or actual cost to determine the probable cost to the contractor. This is a more detailed and costly method than price analysis in terms of both time and manpower. Equipment tangible personal property (including information technology systems) having a useful life of more than one year and an per unit acquisition cost of which equals or exceeds the lesser of the capitalization level established by the non-federal entity for financial statement purposes, or $5,000 (Uniform Guidance Section ). Draft Directive Page 3 of 14 41

44 Firewall An established policy or procedure that acts as a barrier or protection against an undesirable influence, outcome, or authority. Examples of firewalls include but are not limited to organizational arrangements that provide clear separation of duties and responsibilities, reporting hierarchy of managers and staff that provide clear separation between job duties and responsibilities, and conflict of interest/confidentiality/disclosure agreements. Information Technology Systems Computing devices, ancillary equipment, software, firmware, and similar procedures, services (including support services), licensing or subscriptions to software and software support services, and related resources (Uniform Guidance Section ). Invitation for Bid (IFB) A type of solicitation document used in a formal competitive bidding process, which contains a detailed statement of what the agency is attempting to purchase. An IFB is used to obtain simple, common, or routine services that may require personal or mechanical skills. Qualifying bidders compete solely on the basis of cost (California State Contracting Manual). Pass-through Entity A non-federal entity that provides a subaward to a subrecipient to carry out part of a federal program (Uniform Guidance Section ). Price Analysis The process of examining and evaluating a proposed price without evaluating its separate cost elements and proposed profit. This process determines whether the price is fair and reasonable. Procurement All stages of the process of acquiring property or services, beginning with the process for determining a need for property or services and ending with contract completion and closeout. Questioned costs Any cost or procurement that is questioned by an auditor, pass-through entity or awarding agency representative. Purchases can be questioned due to possible violations of statutes and regulations, inadequate documentation or possible unreasonable costs (Uniform Guidance Section ). Request for Proposal (RFP) A type of solicitation document, used in a formal competitive bidding process where an invitation is presented for suppliers to submit a proposal on a specific commodity or service. The RFP process brings structure to the procurement decision and is meant to allow the risks and benefits to be identified clearly up front. The RFP is used to obtain complex services in which professional expertise is needed and may vary and/or where different methods and approaches may be applied during performance. (California State Contracting Manual). Request for Quote (RFQ) A type of solicitation document, used in a formal competitive bidding process, mainly when the specifications of a product or service are already known and when price is the main or only factor in selecting the successful bidder. Draft Directive Page 4 of 14 42

45 Subaward An award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of a federal award received by the pass-through entity. It does not include payments to a contractor or payments to an individual that is a beneficiary of a federal program. A subaward may be provided through any form of legal agreement, including an agreement that the pass-through entity considers a contract (Uniform Guidance Section ). Subrecipient A non-federal entity that receives a subaward from a pass-through entity to carry out part of the federal program, but does not include an individual that is a beneficiary of such program. A subrecipient may also be a recipient of other federal awards directly from the federal awarding agency (Uniform Guidance Section ). Supplies All tangible personal property other than equipment (Uniform Guidance Section ). General Procurement Policy Requirements The guidance in this directive applies to all purchases of equipment (goods) and services for the operation and support of the WIOA program or for the benefit of WIOA participants. The procedures and guidelines described in this directive are to be used by all subrecipients using WIOA funds to make a purchase. Subrecipients may follow their own policies and procedures in regards to procurement as long as they are consistent with state and local laws and regulations and the procurements conform to the standards in Uniform Guidance Sections through Prequalified contractors must be noted in advance. Listing must include enough entities to ensure open and free competition. Subrecipients must have written procurement procedures that include, but are not limited to, the following: Procedures to administer contracts and ensure contractors perform in accordance with the terms, conditions and specifications of contracts. A written code of conduct for employees engaged in the award agreements or administration to avoid any internal or external conflict of interest. Procedures that detail the requirement for a review of prospective procurements to avoid purchase of unnecessary or duplicate items. Procedures that promote the use of shared resources and other agreements for common goods and services, as well as the use of federal excess and surplus property wherever possible. Standards to ensure that awards are made only to responsible contractors. The awarding agency standards should address integrity, compliance with public policy, past performance, and contractor resources (technical and financial) for prospective contractors. Draft Directive Page 5 of 14 43

46 Procedures should document each significant step in making an award. The documentation should include: rationale for method of procurement, selection of agreement type, selection or rejection criteria, and the basis for the contract price, including the independent agency estimate of price. Procedures which details the settlement of all procurement issues, including those related to source evaluation, protests, claims, and disputes. Procedures to utilize small, minority, or women owned business or labor surplus firms whenever possible. Procedures for analysis of lease versus purchase alterative to determine the most economical and practical procurement (Uniform Guidance Section ). Procedures for conducting a price or cost analysis for every procurement action that exceeds the Simplified Acquisition Threshold. The extent of the analysis should depend on factors of the procurement, but at minimum include an estimated cost of the purchases before bids or proposals are sought (Uniform Guidance Section ). Each subrecipient s written procurement policies must be established and available for review by the Employment Development Department (EDD) or the DOL. These policies may be selfcertified. Subrecipients may request a review of their policies by EDD staff to ensure compliance at the subrecipient s request (Uniform Guidance Section ). Additional WIOA Requirements In addition to the requirements of Uniform Guidance Sections through , the following requirements apply to procurements and agreements funded under the WIOA: All procurement contracts between local boards and units of government must be conducted on a cost-reimbursement basis (DOL Final Rule Section [c][4]). If a fixed amount award with a governmental or nonprofit agency results in revenues in excess of actual costs incurred, the excess revenues are considered to be program income (DOL Final Rule Section [c][7]). Any fixed amount awards should reference this requirement. For more information regarding program income refer to the directive Program Income (WSB 15-25) Local workforce investment plans must contain the competitive process used to award contracts funded under the WIOA and training services outside the Individual Training Account (ITA) (DOL Final Rule Section [b][15]). The procurement requirements do not apply to the identification of eligible training providers. The process for identification of eligible training providers for training services under the WIOA is described in DOL Final Rule Section 680, Subpart B. The state is responsible for the development and maintenance of a state-wide training provider list. While not a federal requirement, each grantee should have a formal agreement for services when a training provider is to deliver services. This may be in the form of a purchase order, contract, voucher, or other mechanism that provides for payment information and may be incorporated or referenced in the individual ITAs. Draft Directive Page 6 of 14 44

47 Reasonable Costs All WIOA procurements must be necessary and reasonable in the operation of the WIOA programs and conform to the following: Consistent with uniform guidance and established policies and procedures. Similar costs must be considered either direct or in-direct costs. Costs must be determined with generally accepted accounting principles. Costs must not be used as cost sharing or matching requirements. Costs must be adequately documented. Procurements may benefit other non-wioa/organizational operations as long as the procurement is necessary to WIOA program and the cost can be distributed in proportion of use. If the procurement benefits multiple WIOA projects the cost should be allocated based on relative benefit. If the relative benefit cannot be determined, a reasonable and documented method may be used. Costs cannot be shifted to additional programs to overcome fund deficiencies or to avoid federal restrictions (Uniform Guidance Section ). Prior Approval Written prior approval from the EDD is required under the following criteria: Procurements with a per-unit cost that exceeds $5,000. Procurements with cumulative costs that exceed $5,000 over a 12 month period. Procurements resulting in improvements to land, buildings, or equipment. Approval will be based on the reasonableness and allowable criteria (as outlined above), availability of funds, and other considerations. Written approval will include the timeframe or scope of the agreement (Uniform Guidance Section ). For further guidance on prior approval and approval process, please refer to Workforce Services Directive Allowable Costs and Prior Written Approval (WSD16-16). Procurement Methods All procurement actions are to be conducted in a manner that provides for full and open competition (Uniform Guidance ). No procurement transaction will contain any requirements that restrict competition, unfairly promotes a single contractor or product, places excess burden on a contractor, or presents an organizational conflict of interest. The type of purchase method is generally determined by the per transaction value of the procurement and the type of good or service being purchased. Per transaction is a single solicitation for a single item (e.g., copy machine), group of related items (e.g., office furniture), Draft Directive Page 7 of 14 45

48 or a specified service (e.g., staff training). Purchases are not to be broken down into smaller components to avoid more stringent procurement requirements. Within the context of open competition, there are five procurement methods by which subrecipients may procure goods or services; i.e., micro purchase, small purchase, sealed bids, competitive proposals, and noncompetitive proposals. Micro Purchase The micro purchase procurement method is used when the per transaction value of a purchase is less than the micro-purchase threshold (currently $3,500 per Federal Acquisition Regulation [FAR] 48 CFR Subpart 2.1), and may be used without soliciting competitive quotations if the price is reasonable. The micro-purchase threshold is periodically updated based on inflation. To the extent practicable, micro-purchases must be distributed equitably among qualified suppliers. Although micro-purchases are not required to receive written prior or purchase approval, they must still be documented. Small Purchase The small purchase procurement method may be used when the per transaction value of a purchase of supplies, equipment or services is less than the Simplified Acquisition Threshold (currently $150,000 per FAR Subpart 2.1). The Simplified Acquisition Threshold is periodically updated based on inflation. The use of informal quotations are used for small purchase procurements, in lieu of the more expensive and time consuming sealed bid or competitive proposal methods. Price as determined by a price analysis is generally the main factor when determining awards. However, other factors such as availability, delivery time, current stock, and location can be taken into consideration. Purchases between $3,500 and $9,999 require a minimum of two documented quotes. Documented quotes can be obtained from catalogs, price lists, prior receipts, or from a contractor in writing or via verbal quotes. Catalogs or price lists should be no more than one year old. Purchases between $10,000 and $150,000 require a formal Request for Quote (RFQ) and a minimum of three written quotes. The RFQ should include a detailed description of the procurement, quantity sought, timeframe, and any other requirements for procurements. The RFQ should be made available to contractors to provide formal written quotations. Written quotations specific to the procurement is required from three or more interested contractors. Proper documentation for a small purchase includes the following: The reason for selecting the small purchase method. The subrecipient s estimate of the potential purchase price. Draft Directive Page 8 of 14 46

49 A description of the goods or services being purchased, including the quantity and any additional criteria used to determine the procurement decision (a copy of the RFQ would suffice). All providers contacted/considered and the prices offered using current catalogs, price lists, prior sales receipts, or formal quotes depending on the amount of the purchase. Why the provider was selected, including how the provider met any additional criteria, and the price analysis. Copy of the purchase document (sales receipt, contract). Sealed Bids The sealed bid procurement method is generally used when the per transaction value of the good or service to be purchased will be more than the Simplified Acquisition Threshold, and its nature can be precisely defined. The desired procurement must have a complete, adequate and realistic specifications or purchase description. The sealed bid process requires the issuance of an Invitation for Bid (IFB). The IFB must be publicly solicited or advertised to an adequate number of known suppliers, provide sufficient time to respond, and clearly state specifications, bidding processes, and dates. The IFB defines the quantity, timeframes, product requirements, specifications, and pertinent attachments of the good or service being purchased. Contractors are notified of the purchase requirements and submit a sealed bid to a specified location by a specified date and time. A diligent effort should be made to secure at least three competitive bids. The responsible bidder (a bidder that can meet the technical requirements of the procurements) that submits the lowest bid will be awarded the contract. The lowest bid should be calculated with factors such as discounts, transportation, and life cycle costs. Any bidder that falls outside of the parameters will normally have their bid rejected. Award of a firm fixed-price or fixed unit price contract by written notice is sent to the lowest responsible bidder. Bids may be rejected with sound and documented rational. If only one bid is obtained and that bidder is deemed to be responsible, then the noncompetitive process may be used. Proper documentation for a sealed bid purchase includes the following: The reason for selecting the sealed bid method. The subrecipient s estimate of the potential purchase price. A copy of the IFB. Bids received. Determination of the responsibility of the bidder. Why the provider was selected. Copy of the award document. Competitive Proposals This method is typically used when the per transaction value of the good or services will be more than the Simplified Acquisition Threshold, but its nature cannot be defined as precisely as required by the sealed bid method. Competitive proposals are specifically used when factors Draft Directive Page 9 of 14 47

50 other than price are important in the selection decision or if the technical requirements or specifications are of a functional nature or unclear. The competitive proposal procurement method is generally used when conditions for a sealed bid cannot be met. The Request for proposal (RFP) must be publicly solicited or advertised to an adequate number of known suppliers. A RFP should be issued that defines quantity, timeframes, product requirements, specifications, and the evaluation factors used along with their importance. Contractors submit a proposal based on the purchase requirements of the RFP to a specified location by a specified date and time to be evaluated. All proposals should be considered on the merits of the proposal and a written review of technical evaluations should be retained for each. The review committee then makes a final recommendation as to which proposal(s) best meets the stated requirements. Careful documentation of the successful bidder selection should be maintained for reference. A public notice of intent to award should be issued followed by the award and the execution of the contract. If only one proposal is obtained and that proposal is deemed to be responsible, then the noncompetitive proposal method may be used. If less than three bids are received during a competitive process, justification must be written explaining the limited participation. The justification should include firms and individuals contacted. These documents should be kept in the agency s contract file and submitted with procurement requests, if applicable. Proper documentation for a competitive proposal purchase includes the following: The reason for selecting the competitive proposal method. The subrecipient s estimate of the potential purchase price. A copy of the RFP. Proposals received. The scoring criteria and the evaluation/scoring sheets for each proposal, including determination of the responsibility of the bidder and the cost analysis. Why the provider was selected. The public notice of intent to award. Copy of the award document. Noncompetitive Proposals Noncompetitive proposals may only be used under certain limited circumstances. The reason for selecting this method along with the justification for the provider selection must be carefully documented and maintained. Per Uniform Guidance Section (f), the purchase must be infeasible under one of the other methods discussed above, and one of the following conditions apply: The good or service is available from only one source. Draft Directive Page 10 of 14 48

51 Public emergency creates an immediate procurement need (e.g., a flood or fire requires the immediate availability of services). The federal awarding agency or pass-through entity authorizes the specific noncompetitive procurement (upon a formal request for approval). Competition is determined inadequate. This usually occurs after a sealed bid or competitive process has been used and there are insufficient bidders. Proper documentation for a noncompetitive proposal purchase includes the following: The reason for selecting the method, including why the procurement was infeasible under one of the other procurement methods and which of the additional conditions the procurement met. The estimate of the potential purchase price. A copy of the RFQ/IFB/RFP. A determination of the responsibility of the bidder. Why the provider was selected. Copy of the award document. Procurement Method Review Procurement Method Cost Limits Minimum Bids/Quotes Needed Micro Purchases Less than $3,500 One quote at a reasonable cost Small Purchases under $10,000 $3,500 $9,999 Two quotes: written, verbal or from a catalog Small Purchases over $10,000 $10,000 $150,000 Three formal written quotes in response to a RFQ Sealed Bids Any Three formal written bids in response to an IFB Competitive Proposals Any Three written competitive proposals in response to a RFP Noncompetitive Proposals Any All bids and quotes obtained Procurement Purchase Approval and Review Timeline Written approvals must be obtained by the subrecipients prior to the purchase of procurements valued over $5,000. To obtain purchase approval, subrecipients must complete the Procurement Request for Approval to Charge WIOA Funds (Attachment 1) and submit it with any other required paperwork, to their assigned Regional Advisor or Project Manager via . Procurement requests should be received no less than 30 calendar days before the requested procurement action is scheduled to occur (DOL Exceptions Section ). Procurement requests will include the following: Description of goods or services to be purchased (item[s] name and description) Estimated total cost (dollar amount of total cost) Draft Directive Page 11 of 14 49

52 Description of item(s) (detailed description of procurement, including functionality and use) Reasons for procurement (detailed justification of procurement and why the procurement is necessary to WIOA operations) Procurement methods and lease-option sharing considerations: o What procurement method was used and why Invoices and other documents as required by the procurement method o Justification of why a lease or property sharing cannot be used Cost (description of how the cost was determined, including any associated fees) Location (where the procurement item will be located or operated) Approval can take a month once submitted so it is crucial that requests are submitted timely. See the table below of approval process and timeline. A decision letter will be mailed to the entity s director at the end of the review process. Step Approver Approval Criteria Timeframe 1 Subrecipient s assigned Regional Advisor or Project Manager 2 Information Technology and Program Accountability Section (ITPAS) manager (if the procurement involves computer or Information Technology [IT] equipment, software, subscriptions or contracts) Proposed procurement is reasonable, allowable and necessary Cost sharing review Technical review of proposed procurement Proposed procurement cannot be provided by state or local partners 3 Financial Management Unit Proposed procurement is reasonable and allowable Availability of funds Procurement method review Up to 10 business days Up to 6 business days Up to 14 business days Once the procurement has been approved via an approval letter, the WIOA funds account may be charged for the purchase. If a procurement is denied, the subrecipient will receive a letter specifying the reason for the denial. If a procurement request is not approved and property is charged, the subrecipient may incur a disallowed cost. Subrecipients can appeal a denial of procurement through the Chief of the Central Office Workforce Services Division. Questioned and Disallowed Costs Funds used for procurements that are determined by an auditor, the cognizant agency, the pass-through entity or authorized awarding agency representative to be unallowable will be returned to the federal government (Uniform Guidance Section ). Such unallowable Draft Directive Page 12 of 14 50

53 procurements are defined as questioned costs in DOL Exceptions Section Questioned costs could result from the following: Procurements that violate statute, regulations, or terms and conditions of award. Procurements without support documentation. Procurements with unreasonable costs. For further guidance on the disposition of disallowed costs, please refer to Workforce Services Directive WIOA Closeout Requirements (WSD16-05). Conflicts of Interests and Firewalls A neutral third party must be established in the event of a conflicts of interest during any part of a procurement. A third party may be a consultant, professional, outside agency, or other independent entity. The local board must ensure that the third party does not participate in any way with the solicitation, bidding, competing, and approval or have any financial interests in the outcome of the procurement. In the event of a possible conflict of interest (ie One-Stop Operator who will submit a procurement proposal), the local board should have a third party solicit, review and award the procurement. A firewall should be created between the Local Board and the third party prior to the start of the process. The Local Board should furnish only the information relevant to seeking the specific procurement. The Local Board cannot draft any contract requirements, specifications or other related procurement documents. Required Contract Clauses Contracts entered into by subrecipients may be fixed price or cost reimbursement, depending on the method of procurement and goods or services being procured. Each agreement funded by federal funds must contain the following contract clauses referred to in Uniform Guidance Appendix II to Part 200, as appropriate: For all contracts in excess of the simplified acquisition threshold, administrative, contractual, or legal remedies where contractors violate or breach contract terms. The clause must also provide for sanctions or penalties, as appropriate. Termination for cause and for convenience by the awarding agency, including the process for exercising the clause and any basis for settlement (applies to contracts in excess of $10,000). Compliance with Equal Employment Opportunity provisions identified in 41 CFR Part 60. Compliance with the Davis-Bacon Act (40 U.S.C and 40 U.S.C ) for prime construction contracts in excess of $2,000. Compliance with the Contract Work Hours and Safety Standards Act (40 U.S.C ) for contracts in excess of $100,000 that involve the employment of mechanics or laborers. Draft Directive Page 13 of 14 51

54 Compliance with Rights to Inventions Made by Nonprofit Organizations and Small Business Firms under Government Grants (37 CFR Part 401) for any small business or nonprofit organization. Compliance with the Clean Air Act (42 U.S.C q.) and the Federal Water Pollution Control Act (33 U.S.C ) for any contract in excess of $150,000. A provision requiring that contracts should be issued for any entity listed on the Excluded Parties List System in the System for Award Management (SAM) Compliance with the Byrd Anti-Lobbying Amendment (31 U.S.C. 1352) for contractors bidding over $100,000. Compliance with Section 6002 of the Solid Waste Disposal Act and 40 CFR part 247 for items in excess of $10,000. It should also be included in all applicable agreements that, regardless of the procurement method, anyone who provides WIOA services must abide by the WIOA equal opportunity and nondiscrimination provisions of Section 188 and 29 CFR Part 38. ACTION Please bring this directive to the attention of all relevant parties. INQUIRIES If you have any questions, contact your assigned Regional Advisor or Project Manager. /S/ JAIME L. GUTIERREZ, Chief Central Office Workforce Services Division Attachments are available on the internet: Procurement Request for Approval to Charge WIOA Funds Draft Directive Page 14 of 14 52

55 PROCUREMENT REQUEST FOR APPROVAL TO CHARGE WIOA FUNDS ATTACHMENT 1 Requests should be submitted to Regional Advisors or Project Managers for all procurements exceeding $5,000 or if approval is required. Additional documentation (e.g., quotations, cost analyses, bid summaries) may be required. Please contact your Regional Advisor or Project Manager with any questions. Date: Subrecipient code: Subrecipient name: Item or property to be purchased: Estimated total cost of procurement: $ Anticipated procurement date: Procurement Method: Small purchase Competitive proposal (RFP) Sealed bid (IFB) Noncompetitive proposal Procurement Type: Purchase Lease/Rent Subscription/Contract Service Property sharing Description, Function, and Justification of Procurement Reason for Procurement Method and Type, Including Lease Option or Property Sharing Considerations Why provider was selected? Cost, Including any Maintenance, Installation, Taxes, or Fees Associated with the Procurement Authorized representative and title (Please print) Signature 53

56 Date: August 29, 2017 Number: WSD17-05 OVERSIGHT AND MONITORING OF NONDISCRIMINATION AND EO PROCEDURES EXECUTIVE SUMMARY This policy provides the guidance and establishes the procedures regarding the oversight and monitoring of the nondiscrimination and equal opportunity (EO) procedures for Local Workforce Development Areas (Local Area). This policy applies to all Local Areas, and is effective immediately. This policy contains some state-imposed requirements. All state-imposed requirements are indicated by bold, italic type. This Directive finalizes Workforce Services Draft Directive Oversight and Monitoring of Nondiscrimination and EO Procedures WSDD-170, issued for comment on July 26, The Workforce Development Community submitted 10 comments during the draft comment period. A summary of comments, including all changes, is provided as an attachment to this Directive. This policy supersedes Workforce Services Directive Biennial and Local Area Self-Assessment WSD15-21, dated March 25, Retain this Directive until further notice. REFERENCES Civil Rights Act of 1964 (Public Law ) Titles VI and VII Education Amendments of 1972 (Public Law ) Title IX Rehabilitation Act of 1973 (Public Law ) Title V, Section 504 Age Discrimination Act of 1975 (Public Law ) Americans with Disability Act of 1990 (Public Law ) Workforce Innovation and Opportunity Act (WIOA) (Public Law ) Sections 121(b), 183(c), and 188 Title 29 Code of Federal Regulations (CFR) Part 38 Title 20 CFR Section Title 28 CFR Part 35, Subpart A Page 1 of 5 69:175 54

57 Title 29 CFR Parts 31, 32, 34, 38, and Title 41 CFR Parts , Subpart Title 45 CFR Part 90, Subpart D, Section 90.43(c)(3) Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency (LEP) Dymally-Alatorre Bilingual Services Act, California Government Code Sections Fair Employment and Housing Act, California Government Code Sections California Government Code Section Workforce Services Directive WSD17-01, Subject: Nondiscrimination and Equal Opportunity Procedures (August 1, 2017) BACKGROUND The nondiscrimination and equal opportunity provisions outlined in Section 188 of WIOA and 29 CFR Part 38 prohibit discrimination on the basis of race, color, religion, sex (including pregnancy, childbirth, and related medical conditions, transgender status, and gender identity), national origin (including LEP), age, disability, or political affiliation or belief, or, for beneficiaries, applicants, and participants only on the basis of citizenship status or participation in a WIOA Title I financially assisted program or activity. Section 188 of WIOA and 29 CFR Part 38 require that states conduct annual monitoring reviews to determine whether each recipient is operating its WIOA Title I financially assisted program or activity in a nondiscriminatory way. In California, the Employment Development Department (EDD) is responsible for the oversight and monitoring of all WIOA Title I financially assisted state programs, which is one of the components of the Nondiscrimination Plan as outlined in WSD Consequently, the EDD s Equal Employment Opportunity (EEO) Office will conduct annual onsite compliance monitoring reviews of all Local Areas to ensure compliance with the nondiscrimination and equal opportunity provisions of Section 188 of WIOA and 29 CFR Part 38. POLICY AND PROCEDURES Definitions For purposes of this directive, the following definitions apply: Compliance Monitoring Guide A tool or instrument that the EDD EEO Office staff use to conduct compliance monitoring reviews of Local Areas. It contains all the different elements of the onsite compliance monitoring review and documents findings of noncompliance. Page 2 of 5 55

58 Corrective Action Plan A list of specific steps that recipients must take within a stated period of time in order to achieve compliance. Recipient Any entity to which financial assistance under WIOA Title I is extended, either directly from Department of Labor or through the Governor or another recipient (including any successor, assignee, or transferee of a recipient), but excluding the ultimate beneficiaries of the WIOA Title I funded program or activity. In addition, One-Stop partners, as defined in Section 121(b) of WIOA, are treated as "recipients" and are subject to the nondiscrimination and equal opportunity requirements of 29 CFR Part 38, to the extent that they participate in the One-Stop delivery system (29 CFR Section 38.4[zz]). Small recipient A recipient who serves a total of fewer than 15 beneficiaries during the entire grant year and employs fewer than 15 employees on any given day during the grant year (29 CFR Section 38.4[hhh]). State EO Officer The EDD s EO Officer. Local EO Officer The Local Area s EO Officer. Compliance Monitoring Review Process The compliance monitoring review process includes the following steps: 1. Notification Approximately two to four weeks prior to conducting a Local Area onsite compliance monitoring review, the EDD s EEO Office will notify each Local Area Director/Administrator and Local EO Officer about the upcoming review. 2. Request for Preliminary Information The notification of the onsite compliance monitoring review will include a request for preliminary information such as applicants/clients demographic data, random sample applications, Local Area compliance monitoring reports, discrimination complaint logs, etc. The request for preliminary information will also include a copy of the Compliance Monitoring Guide that the EDD EEO Office staff will use to conduct the compliance monitoring review. Having a copy of the Compliance Monitoring Guide will assist Local Areas to prepare for the compliance monitoring review. Preliminary information must be submitted to the EDD EEO Office within 10 days of the request. 3. Desk Review Upon receipt of the preliminary information and prior to the onsite compliance monitoring review, the EDD EEO Office staff will conduct a desk review that will include an analysis of applicants/clients demographic data, random sample applications, Local Area monitoring Page 3 of 5 56

59 reports, discrimination complaint logs, etc. The desk review will help identify potential items to be addressed during the onsite compliance monitoring review. 4. Onsite Compliance Monitoring Review The focus of the onsite compliance monitoring review is to determine compliance with the WIOA nondiscrimination and equal opportunity requirements and to review significant differences or disparities identified during the desk review. 5. Entrance Conference The EDD EEO Office staff will meet with the appropriate Local Area Director/Administrator and/or Local Area EO Officer to discuss the scope of the review, make arrangements for client and staff interviews or file reviews, and to discuss preliminary findings of the data analysis. 6. Exit Conference Immediately following the completion of the onsite compliance monitoring review, the EDD EEO Office staff will conduct an exit conference with the appropriate Local Area Director/Administrator and/or Local Area EO Officer to discuss the findings and clarify areas in question. A preliminary compliance status may be given at this time and corrective action(s) suggested. Corrective Action Process The corrective action process includes the following steps: 1. The EDD EEO Office will issue an initial written report within 30 days of completion of the onsite compliance monitoring review. The initial written report will be issued to the Local Area Director/Administrator and to the Local EO Officer. The initial written report will address areas of non-compliance and outline those areas that are found to be in compliance. 2. When areas of non-compliance are found, the EDD EEO Office will make recommendation(s) for corrective action(s) in the initial written report. 3. If the Local Area Director/Administrator or Local EO Officer agree with the recommendation(s) of the EDD EEO Office, a Corrective Action Plan (CAP) must be forwarded to the EDD EEO Office within 30 days of the date the Local Area received the recommendation(s). 4. If the Local Area Director/Administrator or Local EO Officer disagree with the EDD EEO Office recommendation(s), Local Area Director/Administrator or Local EO Officer may contact the EDD EEO Office to attempt an informal resolution of the issue(s). Page 4 of 5 57

60 5. When an informal resolution is reached, a CAP must be forwarded to the EDD EEO Office within 30 days of the date the Local Area accepts the recommendation(s). 6. If an informal resolution is not reached, the State EO Officer will meet with the Local EO Officer and the appropriate management official for the Local Area to develop recommendations to bring the Local Area into full compliance. 7. Six months after the recommendations are implemented, a follow-up review may be scheduled to assess the progress made by the Local Area resolving the identified areas of noncompliance. It is important to note that monetary corrective actions may not be paid from federal funds. Local Area Monitoring Responsibilities Local Areas are required to annually monitor the compliance of all local grant recipients and sub-recipients of WIOA or Wagner-Peyser funds, including America s Job Center of California SM locations. Additionally, Local Areas must annually monitor all service providers, including eligible training providers, for compliance with Section 188 of the WIOA and 29 CFR Part 38. Local Areas must keep copies of their compliance monitoring efforts and reports on file. The Local Area s compliance monitoring reports should be used as an assessment reference when developing CAPs, and for scheduled onsite monitoring reviews that may be required by authorized federal and state reviewers. ACTION Bring this directive to the attention of all relevant parties. INQUIRIES If you have any questions, contact your Regional Advisor at /S/ JAIME L. GUTIERREZ, Chief Central Office Workforce Services Division Attachments are available on the internet: Summary of Comments Page 5 of 5 58

61 S U M M A R Y O F C O M M E N T S Draft Directive Oversight and Monitoring of Nondiscrimination and EO Procedures (WSDD 170) ATTACHMENT There were 10 comments to the draft version of this Directive: Comment #1 With regards to Local Workforce Development Area (Local Area) monitoring responsibilities and the eligible training providers, is the intent to have the Local Area that sponsored the eligible training provider be responsible for the annual Workforce Innovation and Opportunity Act (WIOA) Section 188 monitoring compliance or is it to have each Local Area that utilizes the eligible training provider complete a monitoring? In either case, will the state be providing a monitoring guide template to the Local Areas? Resolution The Local Area that submits an eligible training provider for placement on the Eligible Training Provider List (ETPL) is responsible for conducting annual monitoring reviews to ensure the provider is in compliance with WIOA Section 188 and 29 Code of Federal Regulations (CFR) Part 38. Since each Local Area has different policies and procedures for monitoring their lower tier sub recipients, providers, and contractors, the state does not intend to provide a local monitoring guide in order to allow for maximum local flexibility. However, the state will provide training and ongoing technical assistance to Local Equal Employment Opportunity (EEO) Officers regarding the new WIOA Section 188 requirements, including best practices for effectively conducting compliance monitoring. Comment #2 Will a draft Equal Opportunity (EO) Monitoring Guide be circulated? Resolution A copy of the Compliance Monitoring Guide that the Employment Development Department s (EDD) EEO staff will use to conduct the compliance monitoring review will be shared with Local Areas during the Notification and Request for Preliminary Information period, as outlined on page 3 of the Directive. Comment #3 and 4 Will the EDD provide Local Areas a checklist for monitoring service providers for compliance with WIOA Section 188 and 29 CFR Part 38? Resolution Since each Local Area has different policies and procedures for monitoring their lower tier sub recipients, providers, and contractors, the state does not intend to provide a local monitoring guide in order to allow for maximum local flexibility. However, the state will provide training and ongoing technical assistance to Local EEO Officers regarding the new WIOA Section 188 requirements, including best practices for effectively conducting compliance monitoring. Page 1 of 3 59

62 Comment #5 The new directive does not reference Title 24 California Code of Regulations (CCR): California Building Standards Code. This was used as the policy guidance around the Electronic Compliance Monitoring Checklist, which is divided into two checklists, the Compliance Monitoring Checklist (CMC) and the Physical and Program Accessibility Checklist (PPA) as required in previous years. Will these check lists be requested as part of the monitoring guide or request for preliminary information? Resolution Because of the new regulations outlined in 29 CFR Part 38, which require that states conduct annual monitoring reviews to determine whether each recipient is operating its WIOA Title I financially assisted program or activity in a nondiscriminatory way, the CMC and PPA checklists have been replaced with the Compliance Monitoring Guide. The EDD EEO Office staff will use this tool to conduct the annual onsite compliance monitoring reviews of the Local Areas. Comment #6 Should the directive reference Workforce Services Directive WSD17 01, Nondiscrimination and Equal Opportunity Procedures? Resolution The Directive Nondiscrimination and Equal Opportunity Procedures (WSD17 01) has been added as a reference to this guidance. Comment #7 Please verify that the following list (which is not all inclusive) are recipients that must be monitored for nondiscrimination compliance by the Local Areas: On the jobtraining (OJT) employers, vendors on the ETPL, sub recipients, America s Job Centers of California SM (AJCC), and all AJCC partners that are part of the one stop delivery system. Resolution Local Areas are required to annually monitor the compliance of all local grant recipients and sub recipients of WIOA or Wagner Peyser funds, including AJCC locations. Additionally, Local Areas must annually monitor all service providers, including eligible training providers, for compliance with Section 188 of the WIOA and 29 CFR Part 38, as outlined on page 5 of the Directive. Comment #8 Is the extent of monitoring required of Local Areas for their recipients the same as what is required of the Governor, which would include evaluation of physical access as well as all other compliance requirements? Resolution Yes, the extent of monitoring required of Local Areas is the same as what is required of the Governor and includes physical and programmatic access, among other compliance requirements. Comment #9 The requirement of onsite monitoring for Local Areas does not appear in the Directive. Does this mean that self certification and provision by the recipient of necessary Page 2 of 3 60

63 data and information to the Local Area for examination will satisfy the monitoring requirement? Resolution The Directive addresses the state compliance monitoring process which includes an annual onsite review. Each Local Area, as recipients of WIOA funds, will be required to conduct annual compliance monitoring of its lower tier sub recipients and/or contractors and providers, including providers on the ETPL. The Local Area annual monitoring effort could include a self certification and provision of data. The results of the state s compliance annual monitoring review of each Local Area will determine whether self certification and data provision will satisfy the monitoring requirement. Comment #10 Is there a possibility that certain entities such as the California State University system or certain vendors on the ETPL may have already been determined to be in compliance with the nondiscrimination requirements of Section 188 of WIOA and 29 CFR Part 38 through some other verification process? Resolution While it is possible that another entity reviewed a training provider s compliance with certain state or federal requirements at some point in time. As a recipient of WIOA funds, Local Areas are still responsible for conducting annual monitoring reviews of training providers to ensure their ongoing compliance with WIOA Section 188 and 29 CFR Part 38. Page 3 of 3 61

64 Date: September 18, 2017 Number: WSIN17-07 Expiration Date: 10/18/2019 WORKFORCE ACCELERATOR FUND 6.0 REQUEST FOR APPLICATIONS The California Workforce Development Board (State Board) and the Employment Development Department are pleased to announce the availability of up to $4.8 million in Workforce Innovation and Opportunity Act funds to design, develop, and implement projects that accelerate employment and re-employment strategies for targeted populations. The Workforce Accelerator Fund (WAF) 6.0 will support projects that bridge education and workforce gaps for target populations and build workforce system capacity through the following: Collaboration among partners in the development of service delivery strategies and alignment of resources to better connect disadvantaged and disconnected job seekers to employment. Innovation that creates new or adapts existing approaches or accelerates application of promising practices in workforce development and skill attainment. System change that uses these subgrants to incentivize adoption of proven strategies and innovations that are sustained beyond the grant period. The WAF 6.0 is open to both new applicants as well as current or previous grantees. Eligible applicants include Local Workforce Development Boards, labor organizations, K-12 education entities, community colleges, adult schools, county social services agencies, community-based organizations, business related non-profit organizations, and workforce intermediaries. An application workshop webinar will be held on September 21, 2017 for interested applicants. All applications must be received by Monday, October 16, 2017 at 3 p.m. For more information regarding this funding opportunity and its requirements, please visit the State Board s Workforce Accelerator Fund web page. /S/ JAIME L. GUTIERREZ, Chief Central Office Workforce Services Division Page 1 of 1 69:01 62

65 Date: October 4, 2017 Number: WSIN17-10 Expiration Date: 11/04/2019 EDD INTRODUCES BENEFIT PROGRAMS ONLINE On October 16, 2017, Employment Development Department (EDD) customers will have a new and simplified way to access Unemployment Insurance (UI), Disability Insurance (DI), and Paid Family Leave (PFL) online benefit services. The new Benefit Programs Online (BPO) portal will become the single access point for UI Online SM (UI claims) and SDI Online (DI and PFL claims). In addition to the convenience of a single login, BPO leverages the latest technology to help deter fraud and protect customers against cyber threats. To use the EDD benefit systems on or after October 16, 2017, all customers must first establish a BPO login by providing an address, creating a password, and setting up a security profile. They will use this single login to register for UI Online or SDI Online. Customers with an existing UI Online and SDI Online account may use a streamlined re-registration process through December 14, 2017, by using their current username and address. After this date, they must register as a new user. Should customers visiting an America s Job Center of California SM request assistance with establishing a BPO login, please refer them to the Benefit Programs Online webpage for more information and resources. After implementation, this webpage will be updated to include a video with step-by-step instructions on how to create a BPO login and register or re-register for UI Online and SDI Online. Refer customers to the Department Directory if they need further technical assistance with their account. The EDD Workforce Services Training Managers and the Local Workforce Development Area Regional Training Coordinators will soon receive an informational video and resources regarding the BPO to share with staff. Staff are encouraged to view the video and familiarize themselves with the new BPO prior to its launch. For questions regarding this notice, contact the EDD Capacity Building Unit at CBUTraining@edd.ca.gov. For more information regarding BPO, visit Benefit Programs Online. /S/ JAIME L. GUTIERREZ, Chief Central Office Workforce Services Division Page 1 of 1 69:15 63

66 Date: October 19, 2017 Number: WSIN17-13 Expiration Date: 11/19/2019 DISASTER UNEMPLOYMENT ASSISTANCE FOR WORKERS IMPACTED BY CALIFORNIA WILDFIRES Federal Disaster Unemployment Assistance (DUA) benefits are now available for a 26-week period, beginning October 15, 2017, to individuals who are unable to work as a direct result of the California wildfires in Butte, Lake, Mendocino, Napa, Nevada, Orange, Sonoma, and Yuba counties. The DUA program provides weekly federal unemployment benefit payments to individuals whose work or self-employment is interrupted due to a disaster. DUA benefits are available only to individuals who do not qualify for regular Unemployment Insurance (UI) benefits or State Disability Insurance or Paid Family Leave benefits and are unemployed as a direct result of the wildfires. America s Job Center of California SM staff should encourage affected customers to file a DUA claim online or by phone, noting that their job loss was due directly to the wildfires in order to have their claim identified as disaster-related. Individuals have until November 16, 2017 to file a DUA claim, but this filing deadline may be extended for good cause. The last payable week is the week ending April 14, The seven day waiting period does not apply. For more information on the DUA program, please refer to the Employment Development Department s (EDD) DUA Fact Sheet, Disaster Related Services web page, or contact an EDD representative at /S/ JAIME L. GUTIERREZ, Chief Central Office Workforce Services Division Page 1 of 1 69:15 64

67 Date: October 24, 2017 Number: WSIN17-14 Expiration Date: 11/24/2019 THE EDD ENCOURAGES STRONGER PARTNERSHIPS WITH PHA THROUGH THE JPI Local Workforce Development Areas (Local Area) and America s Job Center of California SM (AJCC) offices can strengthen partnerships by outreaching to Public Housing Authorities (PHA) through the Jobs Plus Initiative (JPI). The JPI is a funding opportunity available to eligible PHAs through the U.S. Department of Housing and Urban Development. The grant aligns with the California Unified Strategic Workforce Development Plan and Local Plans by providing Local Area/AJCC the opportunity to build collaborations among communities and strengthen partnerships to allow streamline access to services for participants. Although Local Areas and AJCCs are not eligible to apply, successful PHA applicants must partner with Local Areas/AJCCs to offer multiple employment-related services for PHA participants. The purpose of the JPI is to develop locally-based job-driven approaches to increase earnings and advance employment outcomes through work readiness, employer linkages, job placement, educational advancement, technology skills and financial literacy for residents of public housing. More information about the JPI can be found on the Grants.Gov web site. /S/ JAIME L. GUTIERREZ, Chief Central Office Workforce Services Division Page 1 of 1 88:95 65

68 Date: October 31, 2017 Number: WSIN17-15 Expiration Date: 11/30/2019 RR WARN CONTACT LIST AND CalJOBS SM MANAGE WARN NOTIFICATIONS MODULE The Employment Development Department (EDD) is providing all Local Workforce Development Areas (Local Areas) with an updated Rapid Response (RR) Worker Adjustment and Retraining Notification (WARN) Contact List and information pertaining to the Manage WARN Notifications module in CalJOBS. Rapid Response WARN Contact List The attached Rapid Response WARN Contact List (RR List) contains the list of RR contacts for each Local Area. The RR contacts included on the RR List are the only individuals that receive CalJOBS WARN notifications. The RR contacts and others appointed by the local Management Information System (MIS) Administrator are the only individuals authorized to submit revisions to add or remove contacts on the RR List. To submit revisions, the State WARN Coordinator at and include the name of the Local Area, and the RR contact s name, address, phone number, and fax number. Each Local Area is limited to two contacts: a primary contact and an alternate contact. The RR contacts are only subscribed to receive CalJOBS WARN notifications and are not granted access to the CalJOBS Manage WARN Notifications module. CalJOBS Manage WARN Notifications Module The Manage WARN Notifications module in CalJOBS contains filed WARN notifications and the employer s WARN letter(s). The employer s WARN letter(s) in Portable Document Format (PDF) can be found in the Uploaded Documents section of each WARN notification. Please contact your Local Area s MIS Administrator for access to this CalJOBS module. For more information, contact the State WARN Coordinator at WARNNotice@edd.ca.gov. /S/ JAIME L. GUTIERREZ, Chief Central Office Workforce Services Division Attachment is available on the internet: Rapid Response WARN Contact List Page 1 of 1 69:97 66