Implementing the Salary and Bonus Limitations in Public Law 109-234, 48557-48559 [06-7056]
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Federal Register / Vol. 71, No. 161 / Monday, August 21, 2006 / Notices
be sent to DEA Headquarters, Attention:
DEA Federal Register Representative/
ODL, 2401 Jefferson-Davis Highway,
Alexandria, Virginia 22301; and must be
filed no later than September 20, 2006.
This procedure is to be conducted
simultaneously with and independent
of the procedures described in 21 CFR
1301.34(b), (c), (d), (e) and (f). As noted
in a previous notice published in the
Federal Register on September 23, 1975,
(40 FR 43745–46), all applicants for
registration to import a basic class of
any controlled substance listed in
Schedule I or II are, and will continue
to be required to demonstrate to the
Deputy Assistant Administrator, Office
of Diversion Control, Drug Enforcement
Administration, that the requirements
for such registration pursuant to 21
U.S.C. 958(a), 21 U.S.C. 823(a), and 21
CFR 1301.34(b), (c), (d), (e) and (f) are
satisfied.
No comments or objections have been
received. DEA has considered the
factors in 21 U.S.C. 823(a) and
determined that the registration of
Noramco Inc. to manufacture the listed
basic classes of controlled substances is
consistent with the public interest at
this time. DEA has investigated
Noramco Inc. to ensure that the
company’s registration is consistent
with the public interest. The
investigation has included inspection
and testing of the company’s physical
security systems, verification of the
company’s compliance with state and
local laws, and a review of the
company’s background and history.
Therefore, pursuant to 21 U.S.C. 823,
and in accordance with 21 CFR 1301.33,
the above named company is granted
registration as a bulk manufacturer of
the basic classes of controlled
substances listed.
Dated: August 14, 2006.
Joseph T. Rannazzisi,
Deputy Assistant Administrator, Office of
Diversion Control, Drug Enforcement
Administration.
[FR Doc. E6–13727 Filed 8–18–06; 8:45 am]
Dated: August 14, 2006.
Joseph T. Rannazzisi,
Deputy Assistant Administrator, Office of
Diversion Control, Drug Enforcement
Administration.
[FR Doc. E6–13724 Filed 8–18–06; 8:45 am]
BILLING CODE 4410–09–P
BILLING CODE 4410–09–P
DEPARTMENT OF JUSTICE
DEPARTMENT OF LABOR
Drug Enforcement Administration
Employment and Training
Administration
Manufacturer of Controlled
Substances; Notice of Registration
By Notice dated April 18, 2006, and
published in the Federal Register on
April 25, 2006, (71 FR 23950), Noramco
Inc., 1440 Olympic Drive, Athens,
Georgia 30601, made application by
renewal to the Drug Enforcement
Administration (DEA) to be registered as
a bulk manufacturer of the basic classes
of controlled substances listed in
Schedules I and II:
Drug
Schedule
hsrobinson on PROD1PC72 with NOTICES
Codeine-N-oxide (9053) ...............
Morphine-N-oxide (9307) ..............
Amphetamine (1100) ....................
Codeine (9050) .............................
Dihydrocodeine (9120) .................
Oxycodone (9143) ........................
Hydromorphone (9150) .................
Hydrocodone (9193) .....................
Morphine (9300) ...........................
Thebaine (9333) ...........................
Sufentanil (9740) ..........................
Fentanyl (9801) .............................
I
I
II
II
II
II
II
II
II
II
II
II
The company plans to manufacture
small quantities of the Schedule I
controlled substances for internal
testing; the Schedule II controlled
substances will be manufactured in bulk
for distribution to its customers.
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17:53 Aug 18, 2006
Jkt 208001
Implementing the Salary and Bonus
Limitations in Public Law 109–234
Employment and Training
Administration, Labor.
ACTION: Notice.
AGENCY:
SUMMARY: This notice provides
information regarding implementing
salary and bonus limitations in Public
Law 109–234. It is directed to all
Employment and Training
Administration (ETA) grantees,
contractors and other recipients of ETA
appropriated funds. The purpose of this
Notice is to inform States and other
ETA-fund recipients and sub-recipients
of a new limitation on salary and bonus
payments that can be made with funds
appropriated to ETA and provide
guidance on implementing this new
provision.
SUPPLEMENTARY INFORMATION:
I. References
Public Law 109–234.
II. Background
On June 15, 2006, President Bush
signed into law an emergency
supplemental appropriations bill, Public
Law 109–234. Section 7013 of this
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Fmt 4703
Sfmt 4703
48557
public law limits salary and bonus
compensation for individuals who are
paid by funds appropriated to the
Employment and Training
Administration and provided to
recipients and sub-recipients.
Specifically, section 7013 states:
None of the funds appropriated in Public
Law 109–149 or prior Acts under the heading
‘‘Employment and Training’’ that are
available for expenditure on or after the date
of enactment of this section shall be used by
a recipient or subrecipient of such funds to
pay the salary and bonuses of an individual,
either as direct costs or indirect costs, at a
rate in excess of Executive Level II, except as
provided for under section 101 of Public Law
109–149. This limitation shall not apply to
vendors providing goods and services as
defined in OMB Circular A–133. Where
States are recipients of such funds, States
may establish a lower limit for salaries and
bonuses of those receiving salaries and
bonuses from subrecipients of such funds,
taking into account factors including the
relative cost-of-living in the State, the
compensation levels for comparable State or
local government employees, and the size of
the organizations that administer Federal
programs involved including Employment
and Training Administration programs.
III. Policy Guidance
This policy guidance provides the
workforce investment system with
information on programs that are
impacted by this provision; the effective
date and cycles of funding that are
impacted; covered individuals and
transactions; the application of the
limitation; related grant and contract
modifications; action required; and
where to direct inquiries.
IV. Programs Impacted by This
Provision
The new salary and bonus limitation
applies to all programs and activities
undertaken through grants and contracts
funded by an appropriation to ETA.
Therefore, this limitation applies to all
programs administered by ETA, unless
the program falls within an exception
outlined below.
The salary and bonus limitation also
applies to programs funded by an ETA
appropriation, but administered by
another agency. For example, certain
programs funded by ETA appropriations
are administered by the Department of
Labor’s Veterans Employment and
Training Service or the Department of
the Interior. ETA will inform agencies
which administer such programs of this
new requirement. Any questions should
be directed to the administering agency.
A recipient or sub-recipient may
receive funds from ETA that are a
combination of funds appropriated to
ETA and funds that are not appropriated
to ETA. In this situation, the limitations
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48558
Federal Register / Vol. 71, No. 161 / Monday, August 21, 2006 / Notices
of section 7013 as described in this
TEGL apply to the portion of the
funding that is appropriated to ETA.
Exceptions: This limitation does not
apply to programs funded by H–1B
grant funds. These funds are received
from employer paid fees and are not
appropriated. Therefore, the programs
they fund are not covered by the salary
and bonus limitation. Examples of such
programs include activities funded
through the WIRED Initiative and some
High Growth Job Training Initiative
grants.
The limitation also does not apply to
the Disaster Unemployment Assistance
(DUA) program. These funds are
appropriated to the Federal Emergency
Management Agency (FEMA) and
transferred to ETA.
WIA incentive grants financed only
through Department of Education
appropriations are not covered by this
limitation.
Public Law 109–234 specifically
states that it does not change the
limitations that Public Law 109–149
section 101 previously set for
individuals paid through the Job Corps
program. These limitations are still in
effect. Questions concerning the
applicability of the new provision to
any Job Corps funds should be directed
to Job Corps officials.
Any limitation on payments to
individuals contained in grants or
contracts with ETA which are more
restrictive than Public Law 109–234 are
not changed by Public Law 109–234.
For example, any limitation on
consultant fees in grants or contracts are
generally more restrictive than the
limitations in Public Law 109–234,
when broken down as an hourly rate,
and will continue to apply.
hsrobinson on PROD1PC72 with NOTICES
V. Effective Date and Funding Cycles
Impacted
The limitation on salaries and
bonuses applies to funds appropriated
in Fiscal Year 2006 under Public Law
109–149 and prior year appropriation
funds under the heading ‘‘Employment
and Training’’ that remain available for
expenditure. It applies to funds that are
available for expenditure on or after
June 15, 2006. It does not apply to funds
expended before June 15, 2006.
VI. Covered Individuals and
Transactions
The provision in Public Law 109–234
limits the use of funds used by a
recipient or sub-recipient to pay for
salary and bonuses of an individual.
Examples of recipients include entities
and their funded partners that receive
contracts and grants from ETA.
Examples of sub-recipients include sub-
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17:53 Aug 18, 2006
Jkt 208001
contractors or sub-grantees. Any salary
or bonus payments made by a recipient
or a sub-recipient to an individual are
covered by this limitation. This
limitation applies to such payments
regardless of whether they are paid as a
direct or an indirect cost.
However, according to the law this
limitation does not apply to ‘‘vendors’’
as defined in OMB Circular A–133. A
vendor means a dealer, distributor,
merchant, or other seller providing
goods or services that are required for
the conduct of a Federal program.
Characteristics indicative of a payment
for goods and services received by a
vendor are when the organization: (1)
Provides the goods and services within
normal business operations; (2) Provides
similar goods or services to many
different purchasers; (3) Operates in a
competitive environment; (4) Provides
goods or services that are ancillary to
the operation of the Federal program;
and (5) Is not subject to compliance
requirements of the Federal program.
For example, an office supply
business that provides ‘‘off the shelf’’
paper, printers, computers, software,
etc. to other businesses, individuals, as
well as to grant programs would be a
vendor. Also, a training institution
which provides one of its accounting
courses/classes to any interested
individual as well as to clients of an
ETA funded grant program is acting as
a vendor. However, when that same
training institution develops and
delivers a training course specifically
for an ETA funded program it is acting
as a sub-recipient even if others are
allowed to attend and pay for the
course/class at the institution’s tuition
rate.
those instances the total sum of any
employee’s salary and bonuses may be
higher than Executive Level II.
However, in instances where funds
impacted by section 7013 only pay a
portion of the salary, the section 7013impacted funds may only be charged for
the share of the employee’s salary
attributable to the work on the section
7013-impacted grant or contract. That
portion cannot exceed the Executive
Level II rate. For example, if 25 percent
of an employee’s time is attributable to
work performed under grants covered
by the provision and the annual
Executive Level II amount is $165,200,
no more than $41,300 can be charged to
ETA during the year.
If not already done, all affected
recipients or sub-recipients must
implement these requirements
retroactively to the date of enactment,
June 15, 2006. This provision means
that salary payments will need to be
adjusted back to June 15, 2006.
Bonuses: The restriction applies to
both salaries and bonuses. The sum of
all bonuses received over the previous
12-month period when added to the
employee’s salary may not at any time
exceed the limitation. For example, an
employee paid at a $162,000 may not
receive bonuses in any 12-month period
that exceeds $3,200, assuming the
limitation of $165,200.
When States are the recipients of the
funds, States can set a limit below
Executive Level II for salaries paid by
sub-recipients. However, States should
take the factors listed in section 7013
into account when re-designating the
limit.
VII. Application of the Limitation
The law sets the limit on salaries and
bonuses at a rate equivalent to no more
than Executive Level II. A salary table
providing this rate is listed on the
Federal Office of Personnel Management
Web site (https://www.opm.gov) under
Federal Salaries & Wages. These levels
are adjusted annually and the Web site
is updated annually. For FY 2006, the
limit is set at $165,200. The Public Law
109–234 limitation does not apply to
benefits that are not salary and bonuses.
For example, fringe benefits, insurance
premiums or pension plans paid by a
recipient or sub-recipient are not
included in this calculation.
Individuals can receive payments
from funds not impacted by section
7013 in addition to funds that are
impacted by 7013. For example an
entity may receive funds from other
Federal programs, from the State, from
municipalities, or even private funds. In
VIII. Grant and Contract Modifications
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Frm 00030
Fmt 4703
Sfmt 4703
Please be advised ETA will modify
appropriate grants and contracts to
conform to the new requirements of
Public Law 109–234.
IX. Action Required
All recipients of ETA appropriated
funds should become familiar with the
requirements of Public Law 109–234.
States shall inform all staff, subrecipients (sub-grantees and contractors)
and Local Workforce Investment Boards
of the contents of these instructions.
Discretionary grantees should similarly
familiarize themselves, their subrecipients (sub-grantees and subcontractors) with this guidance. If not
already done, all affected ETA fund
recipients or sub-recipients must
implement these new requirements
retroactively to the date of enactment,
June 15, 2006.
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21AUN1
48559
Federal Register / Vol. 71, No. 161 / Monday, August 21, 2006 / Notices
X. Inquiries
States, discretionary grantees and
other ETA appropriated fund recipients
should direct all inquiries to their Grant
Officer, Contract Officer or Federal
Project Officer.
This information is also released in
the form of a Training Employment
Guidance Letter (TEGL) which is
available at https://wdr.doleta.gov/
directives/.
MILLENNIUM CHALLENGE
CORPORATION
(Authority: 20 CFR 661.110)
SUMMARY: In accordance with Section
610(b)(2) of the Millennium Challenge
Act of 2003 (Pub. L. 108–199, Division
D), the Millennium Challenge
Corporation (MCC) published a
summary and the complete text of the
Millennium Challenge Compact
between the United States of America,
Signed at Washington, DC, this 15th day of
August, 2006.
Emily Stover DeRocco,
Assistant Secretary, Employment and
Training Administration, Labor.
[FR Doc. 06–7056 Filed 8–18–06; 8:45 am]
BILLING CODE 4510–30–P
[MCC FR 06–13]
Notice of Entering Into a Compact With
the Government of the Republic of
Benin; Correction
Millennium Challenge
Corporation.
ACTION: Notice; correction.
AGENCY:
acting through the Millennium
Challenge Corporation, and the
Government of the Republic of Benin,
dated February 22, 2006 (the
‘‘Compact’’). The complete text of the
Compact contained incorrect figures in
Exhibit A to Annex II.
FOR FURTHER INFORMATION CONTACT:
Maura Griffin, 202–521–3867.
Correction
In the Federal Register of March 13,
2006, in FR Doc. 06–2252, on pages
12979–12980, replace ‘‘Exhibit A.—
Multi-Year Financial Plan Summary’’
with the following:
EXHIBIT A.—MULTI-YEAR FINANCIAL PLAN SUMMARY
Project
Year 1
1. Access to Land
(a) Policy Activity ............................
(b) Registration Activity ..................
(c) Services and Information Activity 1 ..............................................
(d) IEC Activity ...............................
(e) Support Strategy Activity ..........
Year 2
Year 3
Year 4
Year 5
Total
520,000
3,310,000
260,000
6,550,000
520,000
4,605,000
0
4,375,000
0
4,320,000
1,300,000
23,160,000
510,000
100,000
120,000
3,350,000
150,000
120,000
3,205,000
100,000
120,000
2,775,000
100,000
120,000
620,000
50,000
120,000
10,460,000
500,000
600,000
Sub-Total ....................................
2. Access to Financial Services
(a) Capacity Building Activity .........
(b) Financial Enabling Environment
Activity .........................................
4,560,000
10,430,000
8,550,000
7,370,000
5,110,000
36,020,000
1,770,000
3,570,000
3,870,000
3,570,000
270,000
13,050,000
1,380,000
1,850,000
1,540,000
1,140,000
690,000
6,600,000
Sub-Total ....................................
3. Access to Justice
(a) Arbitration Center (CAMeC) Activity .............................................
(b) Business Registration Activity ..
(c) Courts Activity 2, 3 ......................
3,150,000
5,420,000
5,410,000
4,710,000
960,000
19,650,000
400,000
470,000
2,960,000
160,000
830,000
6,860,000
140,000
330,000
8,590,000
180,000
200,000
6,590,000
0
0
6,560,000
880,000
1,830,000
31,560,000
3,830,000
7,850,000
9,060,000
6,970,000
6,560,000
34,270,000
5,993,000
3,251,000
2,101,000
4,876,000
0
1,196,000
0
980,000
0
1,016,000
8,094,000
11,319,000
200,000
23,154,000
42,158,000
8,151,000
200,000
73,863,000
0
0
22,939,000
53,232,000
0
76,171,000
Sub-Total ....................................
Monitoring and Evaluation .................
9,444,000
3,190,000
30,131,000
1,690,000
66,293,000
1,240,000
62,363,000
1,240,000
1,216,000
1,420,000
169,447,000
8,780,000
Sub-Total ....................................
Program Administration and Control
(a) Program Administration 6 ..........
(b) Fiscal and Procurement Agent
(c) Audits ........................................
3,190,000
1,690,000
1,240,000
1,240,000
1,420,000
8,780,000
3,395,000
3,398,688
1,416,120
2,795,000
3,398,688
1,416,120
2,933,000
3,398,688
1,416,120
2,919,000
3,398,688
1,416,120
3,015,000
3,398,688
1,416,120
15,057,000
16,993,440
7,080,600
Sub-Total 7 ..................................
8,209,808
7,609,808
7,747,808
7,733,808
7,829,808
39,131,040
Total Estimated MCC Contribution 8 ..........................
32,383,808
63,130,808
98,300,808
90,386,808
23,095,808
307,298,040
hsrobinson on PROD1PC72 with NOTICES
Sub-Total ....................................
4. Access to Markets
(a) Studies Activity .........................
(b) Port Institutional Activity ...........
(c) Port Security and Landside Improvements Activity 4 ..................
(d) Waterside Improvements Activity 5 ..............................................
1 MCC
Disbursements in connection with this Activity shall be conditioned upon, among others, the completion, satisfactory to MCC, of the relevant studies in Policy Activity and incorporation of the recommendations into implementation plans as appropriate.
2 After the first $1 million for the legal aid services sub-activity described in Section 2(c)(iv) of Schedule 3 to Annex I, any additional MCC Disbursement for this sub-activity shall be conditioned upon the Government obtaining matching funds to support the legal aid services program described in Section 2(c)(iv) of Schedule 3 of Annex I.
VerDate Aug<31>2005
17:53 Aug 18, 2006
Jkt 208001
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]]>Agencies
[Federal Register Volume 71, Number 161 (Monday, August 21, 2006)]
[Notices]
[Pages 48557-48559]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-7056]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF LABOR
Employment and Training Administration
Implementing the Salary and Bonus Limitations in Public Law 109-
234
AGENCY: Employment and Training Administration, Labor.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This notice provides information regarding implementing salary
and bonus limitations in Public Law 109-234. It is directed to all
Employment and Training Administration (ETA) grantees, contractors and
other recipients of ETA appropriated funds. The purpose of this Notice
is to inform States and other ETA-fund recipients and sub-recipients of
a new limitation on salary and bonus payments that can be made with
funds appropriated to ETA and provide guidance on implementing this new
provision.
SUPPLEMENTARY INFORMATION:
I. References
Public Law 109-234.
II. Background
On June 15, 2006, President Bush signed into law an emergency
supplemental appropriations bill, Public Law 109-234. Section 7013 of
this public law limits salary and bonus compensation for individuals
who are paid by funds appropriated to the Employment and Training
Administration and provided to recipients and sub-recipients.
Specifically, section 7013 states:
None of the funds appropriated in Public Law 109-149 or prior Acts
under the heading ``Employment and Training'' that are available for
expenditure on or after the date of enactment of this section shall
be used by a recipient or subrecipient of such funds to pay the
salary and bonuses of an individual, either as direct costs or
indirect costs, at a rate in excess of Executive Level II, except as
provided for under section 101 of Public Law 109-149. This
limitation shall not apply to vendors providing goods and services
as defined in OMB Circular A-133. Where States are recipients of
such funds, States may establish a lower limit for salaries and
bonuses of those receiving salaries and bonuses from subrecipients
of such funds, taking into account factors including the relative
cost-of-living in the State, the compensation levels for comparable
State or local government employees, and the size of the
organizations that administer Federal programs involved including
Employment and Training Administration programs.
III. Policy Guidance
This policy guidance provides the workforce investment system with
information on programs that are impacted by this provision; the
effective date and cycles of funding that are impacted; covered
individuals and transactions; the application of the limitation;
related grant and contract modifications; action required; and where to
direct inquiries.
IV. Programs Impacted by This Provision
The new salary and bonus limitation applies to all programs and
activities undertaken through grants and contracts funded by an
appropriation to ETA. Therefore, this limitation applies to all
programs administered by ETA, unless the program falls within an
exception outlined below.
The salary and bonus limitation also applies to programs funded by
an ETA appropriation, but administered by another agency. For example,
certain programs funded by ETA appropriations are administered by the
Department of Labor's Veterans Employment and Training Service or the
Department of the Interior. ETA will inform agencies which administer
such programs of this new requirement. Any questions should be directed
to the administering agency.
A recipient or sub-recipient may receive funds from ETA that are a
combination of funds appropriated to ETA and funds that are not
appropriated to ETA. In this situation, the limitations
[[Page 48558]]
of section 7013 as described in this TEGL apply to the portion of the
funding that is appropriated to ETA.
Exceptions: This limitation does not apply to programs funded by H-
1B grant funds. These funds are received from employer paid fees and
are not appropriated. Therefore, the programs they fund are not covered
by the salary and bonus limitation. Examples of such programs include
activities funded through the WIRED Initiative and some High Growth Job
Training Initiative grants.
The limitation also does not apply to the Disaster Unemployment
Assistance (DUA) program. These funds are appropriated to the Federal
Emergency Management Agency (FEMA) and transferred to ETA.
WIA incentive grants financed only through Department of Education
appropriations are not covered by this limitation.
Public Law 109-234 specifically states that it does not change the
limitations that Public Law 109-149 section 101 previously set for
individuals paid through the Job Corps program. These limitations are
still in effect. Questions concerning the applicability of the new
provision to any Job Corps funds should be directed to Job Corps
officials.
Any limitation on payments to individuals contained in grants or
contracts with ETA which are more restrictive than Public Law 109-234
are not changed by Public Law 109-234. For example, any limitation on
consultant fees in grants or contracts are generally more restrictive
than the limitations in Public Law 109-234, when broken down as an
hourly rate, and will continue to apply.
V. Effective Date and Funding Cycles Impacted
The limitation on salaries and bonuses applies to funds
appropriated in Fiscal Year 2006 under Public Law 109-149 and prior
year appropriation funds under the heading ``Employment and Training''
that remain available for expenditure. It applies to funds that are
available for expenditure on or after June 15, 2006. It does not apply
to funds expended before June 15, 2006.
VI. Covered Individuals and Transactions
The provision in Public Law 109-234 limits the use of funds used by
a recipient or sub-recipient to pay for salary and bonuses of an
individual. Examples of recipients include entities and their funded
partners that receive contracts and grants from ETA. Examples of sub-
recipients include sub-contractors or sub-grantees. Any salary or bonus
payments made by a recipient or a sub-recipient to an individual are
covered by this limitation. This limitation applies to such payments
regardless of whether they are paid as a direct or an indirect cost.
However, according to the law this limitation does not apply to
``vendors'' as defined in OMB Circular A-133. A vendor means a dealer,
distributor, merchant, or other seller providing goods or services that
are required for the conduct of a Federal program. Characteristics
indicative of a payment for goods and services received by a vendor are
when the organization: (1) Provides the goods and services within
normal business operations; (2) Provides similar goods or services to
many different purchasers; (3) Operates in a competitive environment;
(4) Provides goods or services that are ancillary to the operation of
the Federal program; and (5) Is not subject to compliance requirements
of the Federal program.
For example, an office supply business that provides ``off the
shelf'' paper, printers, computers, software, etc. to other businesses,
individuals, as well as to grant programs would be a vendor. Also, a
training institution which provides one of its accounting courses/
classes to any interested individual as well as to clients of an ETA
funded grant program is acting as a vendor. However, when that same
training institution develops and delivers a training course
specifically for an ETA funded program it is acting as a sub-recipient
even if others are allowed to attend and pay for the course/class at
the institution's tuition rate.
VII. Application of the Limitation
The law sets the limit on salaries and bonuses at a rate equivalent
to no more than Executive Level II. A salary table providing this rate
is listed on the Federal Office of Personnel Management Web site
(https://www.opm.gov) under Federal Salaries & Wages. These levels are
adjusted annually and the Web site is updated annually. For FY 2006,
the limit is set at $165,200. The Public Law 109-234 limitation does
not apply to benefits that are not salary and bonuses. For example,
fringe benefits, insurance premiums or pension plans paid by a
recipient or sub-recipient are not included in this calculation.
Individuals can receive payments from funds not impacted by section
7013 in addition to funds that are impacted by 7013. For example an
entity may receive funds from other Federal programs, from the State,
from municipalities, or even private funds. In those instances the
total sum of any employee's salary and bonuses may be higher than
Executive Level II. However, in instances where funds impacted by
section 7013 only pay a portion of the salary, the section 7013-
impacted funds may only be charged for the share of the employee's
salary attributable to the work on the section 7013-impacted grant or
contract. That portion cannot exceed the Executive Level II rate. For
example, if 25 percent of an employee's time is attributable to work
performed under grants covered by the provision and the annual
Executive Level II amount is $165,200, no more than $41,300 can be
charged to ETA during the year.
If not already done, all affected recipients or sub-recipients must
implement these requirements retroactively to the date of enactment,
June 15, 2006. This provision means that salary payments will need to
be adjusted back to June 15, 2006.
Bonuses: The restriction applies to both salaries and bonuses. The
sum of all bonuses received over the previous 12-month period when
added to the employee's salary may not at any time exceed the
limitation. For example, an employee paid at a $162,000 may not receive
bonuses in any 12-month period that exceeds $3,200, assuming the
limitation of $165,200.
When States are the recipients of the funds, States can set a limit
below Executive Level II for salaries paid by sub-recipients. However,
States should take the factors listed in section 7013 into account when
re-designating the limit.
VIII. Grant and Contract Modifications
Please be advised ETA will modify appropriate grants and contracts
to conform to the new requirements of Public Law 109-234.
IX. Action Required
All recipients of ETA appropriated funds should become familiar
with the requirements of Public Law 109-234. States shall inform all
staff, sub-recipients (sub-grantees and contractors) and Local
Workforce Investment Boards of the contents of these instructions.
Discretionary grantees should similarly familiarize themselves, their
sub-recipients (sub-grantees and sub-contractors) with this guidance.
If not already done, all affected ETA fund recipients or sub-recipients
must implement these new requirements retroactively to the date of
enactment, June 15, 2006.
[[Page 48559]]
X. Inquiries
States, discretionary grantees and other ETA appropriated fund
recipients should direct all inquiries to their Grant Officer, Contract
Officer or Federal Project Officer.
This information is also released in the form of a Training
Employment Guidance Letter (TEGL) which is available at https://
wdr.doleta.gov/directives/.
(Authority: 20 CFR 661.110)
Signed at Washington, DC, this 15th day of August, 2006.
Emily Stover DeRocco,
Assistant Secretary, Employment and Training Administration, Labor.
[FR Doc. 06-7056 Filed 8-18-06; 8:45 am]
BILLING CODE 4510-30-P
