U.S. DEPARTMENT OF LABOR
Employment and Training Administration
Washington, D. C. 20210

CLASSIFICATION

JPTA

CORRESPONDENCE SYMBOL

TWRA

ISSUE DATE

July 17, 1995

RESCISSIONS

None

EXPIRATION DATE

Continuing

DIRECTIVE : TRAINING AND EMPLOYMENT INFORMATION NOTICE NO. 3-95
 
TO : ALL STATE JTPA LIAISONS
STATE WORKER-PEYSER ADMINISTERING AGENCIES
STATE WORKER ADJUSTMENT LIAISONS
 
FROM : BARBARA ANN FARMER
Administrator
for Regional Management
 
SUBJECT : Defense Conversion Adjustment Program and Defense Diversification Program Amendments

  1. Purpose. To transmit information on statutory amendments to the Defense Conversion Adjustment (DCA) Program and Defense Diversification Program (DDP) under Title III of the Job Training Partnership Act (JTPA).

  2. References. The National Defense Authorization Act for Fiscal Year (FY) 1994, P.L. 103-160, section 1339 and The

    National Defense Authorization Act for FY 1995, P.L. 103-337, sections 1136 and 1137.

  3. Background. The National Defense Authorization Act for FY 1994 was enacted on November 30, 1993. The National Defense Authorization Act for FY 1995 was enacted on October 5, 1994. Included were amendments to Sections 325 and 325A of Title III of JTPA.

  4. Discussion. The amendments to Sections 325 (DCA) and

    325A (DDP) essentially focused on three areas:

    1. Both DCA and DDP may be funded with "funds made

      available to carry out this section." That means that National Reserve Account funds under Part B of Title III may be awarded and administered in accordance with section 325 and 325A.

    2. DDP provisions were amended to clarify that the Secretary of Labor is responsible for Federal implementation of Section 325A.

    3. Eligible workers under both DCA and DDP include workers dislocated as a result of reduction in the export of defense articles and Defense services as a result of United States policy.

      Both DCA and DDP are administered by eligible grantees with funds awarded by the Secretary according to application guide- lines published in the Federal Register. The amendments clarify and expand the authorities of the Secretary and the eligible grantees, to serve dislocated defense workers with funds under Part B of Title III (the Secretary's National Reserve). Therefore, even though Department of Defense funds for these programs have already been obligated, Title IIIB funds can be used to fund new requests for DCA and DDP pro- grams. The amendments do not require any modifications to existing DCA or DDP grants, and they do not apply to funds under Part A of Title III (formula funds allotted to the States).

  5. Action Required. States should take actions necessary and appropriate to advise eligible grantees of the amendments to DCA and DDP under Title III of JTPA. States should also advise eligible grantees to continue preparing and submitting applications for DCA and DDP grants according to applicable guidelines.

  6. Inquiries. Direct questions regarding this TEIN to Eric Johnson, Program Manager, Office of Worker Retraining and Adjustment Programs at (202) 219-5577.

  7. Attachment. Text of Section 325, DCA and Section 325A, DDP of JTPA as amended.