Workforce Security Programs: Training and Employment Guidance Letter Interpreting Federal Law, 69991-69992 [E5-6387]
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Federal Register / Vol. 70, No. 222 / Friday, November 18, 2005 / Notices
• Evaluate whether the proposed
collection of information is necessary
for the proper performance of the
functions of the agency, including
whether the information will have
practical utility;
• Evaluate the accuracy of the
agency’s estimate of the burden of the
collection of information, including the
validity of the methodology and
assumptions used;
• Enhance the quality, utility, and
clarity of the information to be
collected; and
• Minimize the burden of the
collection of information on those who
are to respond, including through the
use of appropriate automated,
electronic, mechanical, or other
technological collection techniques or
other forms of information technology,
e.g., by permitting electronic submission
of responses.
III. Current Action
This notice requests comments on an
extension of the information collections
in ERISA Technical Release 91–1. EBSA
is not proposing or implementing
changes to the existing ICR at this time.
A summary of the ICR and the current
burden estimates follows:
Type of Review: Extension of a
currently approved collection of
information.
Agency: Employee Benefits Security
Administration, Department of Labor.
Titles: ERISA Technical Release 91–1.
OMB Number: 1210–0084.
Affected Public: Individuals or
households; Business or other for-profit;
Not-for-profit institutions.
Respondents: 21.
Frequency of Response: One time.
Responses: 135,450.
Estimated Total Burden Hours: 3,386.
Total Burden Cost (Operating and
Maintenance): $26,413.
Comments submitted in response to
this notice will be summarized and/or
included in the request for OMB
approval of the information collection
request and will also become a matter of
public record.
Dated: November 14, 2005.
Susan G. Lahne,
Senior Pension Law Specialist, Office of
Policy and Research, Employee Benefits
Security Administration.
[FR Doc. 05–22867 Filed 11–17–05; 8:45 am]
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69991
DEPARTMENT OF LABOR
Correspondence Symbol: OWS/DL
Date: September 29, 2005
Employment and Training
Administration
Training and Employment Guidance Letter
No. 6–05
To: All State Workforce Agencies. All State
Workforce Liaisons. All One-Stop Center
System Leads.
From: Emily Stover DeRocco, Assistant
Secretary.
Subject: Allocation of Costs of Assessing
and Collecting State Taxes that are Collected
in Conjunction with the State.
Unemployment Compensation Tax.
1. Purpose. To provide guidance to the
states in determining and allocating the costs
of assessing and collecting state taxes that are
collected along with state unemployment
compensation (UC) taxes, but are not used
solely for UC purposes.
2. References. Title III of the Social
Security Act (SSA); 39 U.S.C. 3201(1); 29
CFR 97.22; Office of Management and Budget
(OMB) Circular No. A–87, ‘‘Cost Principles
for State and Local Governments’’ (as revised
May 10, 2004); General Administration Letter
(GAL) No. 4–91; Unemployment Insurance
Program Letter (UIPL) No. 25–92; and OneStop Comprehensive Financial Management
Technical Assistance Guide, Part II.
3. Background. The laws in many states
requires the state UC agency to collect taxes
that are used for non-UC purposes, and
additional states have considered enacting
such laws. Examples of non-UC taxes
collected by state UC agencies include
personal income, temporary disability,
economic development, and job trainingrelated taxes.
In GAL 4–91, the Department outlined the
requirements related to the costs of collecting
these non-UC taxes. Specifically, these costs
may not be paid from UC grant funds, and
when a state UC agency collects non-UC
taxes, the state must submit a plan for
allocating such costs. Although that GAL has
expired, these requirements remain in effect.
Recissions: None
Expiration Date: Continuing
This advisory is being issued to eliminate
any confusion caused by the expiration of
GAL 4–91. Also, although this advisory
merely states what is already required by
Federal law and regulation regarding cost
allocation for all Federal grants to states,
states have found it useful to have a concise
statement of these requirements available,
particularly as it regards tax collection.
4. Federal law and cost principles. Section
302(a), SSA, provides that the Secretary of
Labor shall certify for payment to a state such
amounts as the Secretary determines to be
necessary for the proper and efficient
administration of the state’s UC law. These
payments are sometimes referred to as Title
III grants. Further, section 303(a)(8), SSA,
provides that, as a condition of receiving a
Title III grant, the state may expend its Title
III grant solely ‘‘for the proper and efficient
administration’’ of the state’s UC law. Since
state UC tax administration is an integral part
of administering a state’s UC law, these
administrative costs may be charged to Title
III grants consistent with Federal laws and
regulations. Conversely, since collecting
taxes that will not be used for state UC
Workforce Security Programs: Training
and Employment Guidance Letter
Interpreting Federal Law
The Employment and Training
Administration interprets Federal law
requirements pertaining to
unemployment compensation (UC) and
workforce program. These
interpretations are issued in Training
and Employment Guidance Letters
(TEGLs) to the State Workforce
Agencies. The TEGL described below is
published in the Federal Register in
order to inform the public.
TEGL 6–05
TEGL 6–05 advises states of the
Federal law requirements related to
determining and allocating the cost of
assessing and collecting state taxes that
are collected along with state
unemployment compensation (UC)
taxes, but are not used solely for UC
purposes.
The laws in many states require the
state UC agency to collect taxes that are
used for non-UC purposes, and
additional states have considered
enacting such laws. Examples of nonUC taxes collected by state UC agencies
include personal income, temporary
disability, economic development, and
job training-related taxes.
In General Administration Letter
(GAL) 4–91, the Department outlined
the requirements related to the costs of
collecting these non-UC taxes.
Specifically, these costs may not be paid
from UC grant funds, and when a state
UC agency collects non-UC taxes, the
state must submit a plan for allocating
such costs. Although that GAL has
expired, these requirements remain in
effect.
TEGL 6–05 is being issued to
eliminate any confusion caused by the
expiration of GAL 4–91. Although this
advisory merely states what is already
required by Federal law and regulation
regarding the allocation of costs for all
Federal grants to states, states have
found it useful to have a concise
statement of these requirements
available, particularly as it regards tax
collection.
Dated: November 14, 2005.
Emily Stover DeRocco,
Assistant Secretary of Labor.
Employment and Training Administration,
Advisory System, U.S. Department of Labor,
Washington, D.C. 20210
Classification: Grants/Cost Allocation
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69992
Federal Register / Vol. 70, No. 222 / Friday, November 18, 2005 / Notices
purposes is not necessary for the proper and
efficient administration of a state’s UC law,
the costs of collecting those taxes may not be
charged to Title III grants.
Departmental regulations at 29 CFR
97.22(b) provide that, for purposes of
determining allowable costs under a grant to
a state (including the Title III grant), the
Department will follow the cost principles in
OMB Circular A–87. Section C.3 of
Attachment A of the Circular provides that—
(a) A cost is allocable to a particular cost
objective if the goods or services involved are
chargeable or assignable to such cost
objective in accordance with relative benefits
received.
* * *
(d) Where an accumulation of indirect
costs will ultimately result in charges to a
Federal award, a cost allocation plan will be
required. * * *
Applying these principles to Title III
grants, a cost allocation plan must be
developed whenever a state UC agency
incurs costs for a ‘‘cost objective’’ unrelated
to the administration of the UC program.
Collection of a tax that is not used entirely
for Title III (that is, UC) purposes is such a
cost objective.
5. Application.
a. In general. Whenever a state UC agency
collects a tax that is not used entirely for UC
purposes, the state must obtain the cognizant
Federal agency’s approval of its plan for
allocating the costs of assessing, processing,
and collecting the tax. The following
indicates whether Title III grants may be used
to collect a tax and whether collection of the
particular tax requires a plan for allocating
costs:
• Title III grants may be used to administer
a tax when all revenues from the tax are (1)
deposited in the state’s unemployment fund
to be used for the payment of compensation,
(2) used to pay interest on advances under
Title XII, SSA, or (3) used for the
administration of the UC program. No cost
allocation plan is required.
• Title III funds may not be used for any
costs of collecting a tax that is used entirely
for non-UC purposes, such as administering
other workforce programs (including
providing employment services to UC
claimants), job training, economic
development, temporary disability payments,
health related benefits, or state income tax.
A cost allocation plan is required.
• Title III grants may be used in proportion
to the benefit received by the UC program if
a portion of the revenues of a tax are used
for UC purposes and a portion for non-UC
purposes. A cost allocation plan is required.
Cost allocation plans addressing taxes will
generally be included with the state’s annual
submission of its Indirect Cost Rate Proposal.
However, in some cases (such as newly
enacted taxes that are assessed immediately
after enactment), it will be necessary to
submit the tax plan as soon as possible to
assure proper allocation of costs.
b. Taxes which might be used for UC
purposes. Many state UC agencies collect
taxes which permit (but do not require) the
revenues, or a part thereof, to be used for UC
purposes. As a result, there is no guarantee
that the UC program will receive any benefit
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15:21 Nov 17, 2005
Jkt 208001
from these taxes. For any year in which such
taxes are collected, the state’s cost allocation
plan will need to address, to the extent
possible and taking into account prior history
regarding the tax’s revenues, whether any of
the revenues will be used for UC purposes.
c. Penalty mail. When a UC agency collects
a tax that is not solely restricted to UC
purposes, penalty mail, as defined in 39
U.S.C. 3201(1), must not be used for any
mailing related to the tax, whether or not the
mailing also includes UC material. When a
state UC agency collects a tax (or taxes) for
other than UC purposes, the allocation of
postage costs between the programs
supported by the tax (or taxes) must be
addressed in the state’s cost allocation plan.
d. Use of non-UC grants and state
financing. Funds granted for administering
the Wagner-Peyser Act and the Workforce
Investment Act are restricted to activities in
support of the specific purposes set forth in
those Acts. Unlike Federal UC law, these
Acts do not authorize the collection of taxes,
even if tax revenues enhance program
activities performed under either of these
Acts. As a result, funds granted under these
Acts may not under any circumstances be
used to collect any tax revenues. Aside from
any Federal limitations on the use of granted
funds, states are otherwise free to determine
how to finance the costs of collecting non-UC
or mixed-use taxes. States may use state
general revenues or deduct the costs of
collection from the revenues generated by the
non-UC or mixed-use tax.
e. Identification of taxes for FUTA credit
purposes. States must assure that employers
are aware that only contributions deposited
in the state’s unemployment fund may be
used to obtain credit against the Federal
unemployment tax. See UIPL 25–92. (This
matter does not need to be addressed in the
cost allocation plan.)
6. Action required. Administrators should
distribute this advisory to appropriate staff.
7. Inquiries. Please direct questions to the
appropriate Regional Office.
Inspector General’s Semiannual Report
to Congress for the period of April 1,
2005 through September 30, 2005.’’
[Emphasis added.]
TIME AND DATE:
November 28, 2005 at 12
p.m. (e.s.t.).
LOCATION: The Legal Services
Corporation, 3333 K Street, NW.,
Washington, DC, 3rd Floor.
STATUS OF MEETING:
Open.
Amended Agenda
MATTERS TO BE CONSIDERED:
Open Session
1. Approval of the agenda.
2. Consider and act on Board of
Directors’ response to the LSC Inspector
General’s Semiannual Report to
Congress for the period of April 1, 2005
through September 30, 2005.
3. Consider and act on other business.
4. Public comment.
5. Consider and act on adjournment of
meeting.
FOR FURTHER INFORMATION CONTACT:
Patricia D. Batie, Manager of Board
Operations, at (202) 295–1500.
Special Needs: Upon request, meeting
notices will be made available in
alternate formats to accommodate visual
and hearing impairments. Individuals
who have a disability and need an
accommodation to attend the meeting
may notify Patricia D. Batie, at (202)
295–1500.
[FR Doc. E5–6387 Filed 11–17–05; 8:45 am]
Dated: November 16, 2005.
Victor M. Fortuno,
Vice President for Legal Affairs, General
Counsel & Corporate Secretary.
[FR Doc. 05–23034 Filed 11–16–05; 3:13 pm]
BILLING CODE 4510–30–P
BILLING CODE 7050–01–P
LEGAL SERVICES CORPORATION
Sunshine Act Meeting of the Board of
Directors
Amended Notice; Technical Correction
to the Agenda
Notice
The Legal Services Corporation (LSC)
is announcing a technical amendment to
the notice of a meeting of the Board of
Directors. The amendment is being
made to reflect a technical correction to
the meeting Agenda. There are no other
changes.
Specifically, the following correction
has been made to the agenda.
• The language at item 2 has been
corrected to read: ‘‘Consider and act on
Board of Directors’ response to the LSC
PO 00000
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MILLENNIUM CHALLENGE
CORPORATION
[MCC FR 05–19]
Report on the Selection of Eligible
Countries for Fiscal Year 2006
Millennium Challenge
Corporation.
AGENCY:
SUMMARY: Section 608(d) of the
Millennium Challenge Act of 2003, Pub.
L. 108–199 (Division D) requires the
Millennium Challenge Corporation to
publish a report that lists the countries
determined by the Board of Directors of
the Corporation to be eligible for
assistance for Fiscal Year 2006. The
report is set forth in full below.
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[Federal Register Volume 70, Number 222 (Friday, November 18, 2005)]
[Notices]
[Pages 69991-69992]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E5-6387]
-----------------------------------------------------------------------
DEPARTMENT OF LABOR
Employment and Training Administration
Workforce Security Programs: Training and Employment Guidance
Letter Interpreting Federal Law
The Employment and Training Administration interprets Federal law
requirements pertaining to unemployment compensation (UC) and workforce
program. These interpretations are issued in Training and Employment
Guidance Letters (TEGLs) to the State Workforce Agencies. The TEGL
described below is published in the Federal Register in order to inform
the public.
TEGL 6-05
TEGL 6-05 advises states of the Federal law requirements related to
determining and allocating the cost of assessing and collecting state
taxes that are collected along with state unemployment compensation
(UC) taxes, but are not used solely for UC purposes.
The laws in many states require the state UC agency to collect
taxes that are used for non-UC purposes, and additional states have
considered enacting such laws. Examples of non-UC taxes collected by
state UC agencies include personal income, temporary disability,
economic development, and job training-related taxes.
In General Administration Letter (GAL) 4-91, the Department
outlined the requirements related to the costs of collecting these non-
UC taxes. Specifically, these costs may not be paid from UC grant
funds, and when a state UC agency collects non-UC taxes, the state must
submit a plan for allocating such costs. Although that GAL has expired,
these requirements remain in effect.
TEGL 6-05 is being issued to eliminate any confusion caused by the
expiration of GAL 4-91. Although this advisory merely states what is
already required by Federal law and regulation regarding the allocation
of costs for all Federal grants to states, states have found it useful
to have a concise statement of these requirements available,
particularly as it regards tax collection.
Dated: November 14, 2005.
Emily Stover DeRocco,
Assistant Secretary of Labor.
Employment and Training Administration, Advisory System, U.S.
Department of Labor, Washington, D.C. 20210
Classification: Grants/Cost Allocation
Correspondence Symbol: OWS/DL
Date: September 29, 2005
Training and Employment Guidance Letter No. 6-05
To: All State Workforce Agencies. All State Workforce Liaisons.
All One-Stop Center System Leads.
From: Emily Stover DeRocco, Assistant Secretary.
Subject: Allocation of Costs of Assessing and Collecting State
Taxes that are Collected in Conjunction with the State. Unemployment
Compensation Tax.
1. Purpose. To provide guidance to the states in determining and
allocating the costs of assessing and collecting state taxes that
are collected along with state unemployment compensation (UC) taxes,
but are not used solely for UC purposes.
2. References. Title III of the Social Security Act (SSA); 39
U.S.C. 3201(1); 29 CFR 97.22; Office of Management and Budget (OMB)
Circular No. A-87, ``Cost Principles for State and Local
Governments'' (as revised May 10, 2004); General Administration
Letter (GAL) No. 4-91; Unemployment Insurance Program Letter (UIPL)
No. 25-92; and One-Stop Comprehensive Financial Management Technical
Assistance Guide, Part II.
3. Background. The laws in many states requires the state UC
agency to collect taxes that are used for non-UC purposes, and
additional states have considered enacting such laws. Examples of
non-UC taxes collected by state UC agencies include personal income,
temporary disability, economic development, and job training-related
taxes.
In GAL 4-91, the Department outlined the requirements related to
the costs of collecting these non-UC taxes. Specifically, these
costs may not be paid from UC grant funds, and when a state UC
agency collects non-UC taxes, the state must submit a plan for
allocating such costs. Although that GAL has expired, these
requirements remain in effect.
Recissions: None
Expiration Date: Continuing
This advisory is being issued to eliminate any confusion caused
by the expiration of GAL 4-91. Also, although this advisory merely
states what is already required by Federal law and regulation
regarding cost allocation for all Federal grants to states, states
have found it useful to have a concise statement of these
requirements available, particularly as it regards tax collection.
4. Federal law and cost principles. Section 302(a), SSA,
provides that the Secretary of Labor shall certify for payment to a
state such amounts as the Secretary determines to be necessary for
the proper and efficient administration of the state's UC law. These
payments are sometimes referred to as Title III grants. Further,
section 303(a)(8), SSA, provides that, as a condition of receiving a
Title III grant, the state may expend its Title III grant solely
``for the proper and efficient administration'' of the state's UC
law. Since state UC tax administration is an integral part of
administering a state's UC law, these administrative costs may be
charged to Title III grants consistent with Federal laws and
regulations. Conversely, since collecting taxes that will not be
used for state UC
[[Page 69992]]
purposes is not necessary for the proper and efficient
administration of a state's UC law, the costs of collecting those
taxes may not be charged to Title III grants.
Departmental regulations at 29 CFR 97.22(b) provide that, for
purposes of determining allowable costs under a grant to a state
(including the Title III grant), the Department will follow the cost
principles in OMB Circular A-87. Section C.3 of Attachment A of the
Circular provides that--
(a) A cost is allocable to a particular cost objective if the
goods or services involved are chargeable or assignable to such cost
objective in accordance with relative benefits received.
* * *
(d) Where an accumulation of indirect costs will ultimately
result in charges to a Federal award, a cost allocation plan will be
required. * * *
Applying these principles to Title III grants, a cost allocation
plan must be developed whenever a state UC agency incurs costs for a
``cost objective'' unrelated to the administration of the UC
program. Collection of a tax that is not used entirely for Title III
(that is, UC) purposes is such a cost objective.
5. Application.
a. In general. Whenever a state UC agency collects a tax that is
not used entirely for UC purposes, the state must obtain the
cognizant Federal agency's approval of its plan for allocating the
costs of assessing, processing, and collecting the tax. The
following indicates whether Title III grants may be used to collect
a tax and whether collection of the particular tax requires a plan
for allocating costs:
Title III grants may be used to administer a tax when
all revenues from the tax are (1) deposited in the state's
unemployment fund to be used for the payment of compensation, (2)
used to pay interest on advances under Title XII, SSA, or (3) used
for the administration of the UC program. No cost allocation plan is
required.
Title III funds may not be used for any costs of
collecting a tax that is used entirely for non-UC purposes, such as
administering other workforce programs (including providing
employment services to UC claimants), job training, economic
development, temporary disability payments, health related benefits,
or state income tax. A cost allocation plan is required.
Title III grants may be used in proportion to the
benefit received by the UC program if a portion of the revenues of a
tax are used for UC purposes and a portion for non-UC purposes. A
cost allocation plan is required.
Cost allocation plans addressing taxes will generally be
included with the state's annual submission of its Indirect Cost
Rate Proposal. However, in some cases (such as newly enacted taxes
that are assessed immediately after enactment), it will be necessary
to submit the tax plan as soon as possible to assure proper
allocation of costs.
b. Taxes which might be used for UC purposes. Many state UC
agencies collect taxes which permit (but do not require) the
revenues, or a part thereof, to be used for UC purposes. As a
result, there is no guarantee that the UC program will receive any
benefit from these taxes. For any year in which such taxes are
collected, the state's cost allocation plan will need to address, to
the extent possible and taking into account prior history regarding
the tax's revenues, whether any of the revenues will be used for UC
purposes.
c. Penalty mail. When a UC agency collects a tax that is not
solely restricted to UC purposes, penalty mail, as defined in 39
U.S.C. 3201(1), must not be used for any mailing related to the tax,
whether or not the mailing also includes UC material. When a state
UC agency collects a tax (or taxes) for other than UC purposes, the
allocation of postage costs between the programs supported by the
tax (or taxes) must be addressed in the state's cost allocation
plan.
d. Use of non-UC grants and state financing. Funds granted for
administering the Wagner-Peyser Act and the Workforce Investment Act
are restricted to activities in support of the specific purposes set
forth in those Acts. Unlike Federal UC law, these Acts do not
authorize the collection of taxes, even if tax revenues enhance
program activities performed under either of these Acts. As a
result, funds granted under these Acts may not under any
circumstances be used to collect any tax revenues. Aside from any
Federal limitations on the use of granted funds, states are
otherwise free to determine how to finance the costs of collecting
non-UC or mixed-use taxes. States may use state general revenues or
deduct the costs of collection from the revenues generated by the
non-UC or mixed-use tax.
e. Identification of taxes for FUTA credit purposes. States must
assure that employers are aware that only contributions deposited in
the state's unemployment fund may be used to obtain credit against
the Federal unemployment tax. See UIPL 25-92. (This matter does not
need to be addressed in the cost allocation plan.)
6. Action required. Administrators should distribute this
advisory to appropriate staff.
7. Inquiries. Please direct questions to the appropriate
Regional Office.
[FR Doc. E5-6387 Filed 11-17-05; 8:45 am]
BILLING CODE 4510-30-P
