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

CLASSIFICATION

UT/DUA

CORRESPONDENCE SYMBOL

TEUMI

ISSUE DATE

October 11, 1994

RESCISSIONS

None

EXPIRATION DATE

October 31, 1995

DIRECTIVE

:

UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 49-94

 

TO

:

ALL STATE EMPLOYMENT SECURITY AGENCIES

 

FROM

:

MARY ANN WYRSCH
Director
Unemployment Insurance Service

 

SUBJECT

:

DISASTER UNEMPLOYMENT ASSISTANCE (DUA) PROGRAM AGENT STATE ACTIVITY

  1. Purpose. To implement a procedure to fund interstate DUA agent State claims activities.

  2. References. Section 410(a) of The Robert T. Stafford Disaster Relief and Emergency Assistance Act (P.L. 100-707) and 20 CFR Part 625.

  3. Background. DUA program administrative and benefit costs are funded by the Federal Emergency Management Agency (FEMA). The SESAs estimate their DUA administrative and benefit funding needs, and FEMA provides the funds to the SESAs for these expenses, via the Department of Labor.

    In previous disasters, there has been little, if any, interstate DUA activity. In the current disasters caused by the flooding in the Midwestern States, there appears to be the likelihood that there will be some significant interstate DUA activity mostly attributable to migrant farm workers unable to perform their customary agricultural services. Many of these migrant workers are presently located in the Southwest (mainly Texas). Due to the disasters, they cannot commence agricultural employment in those States affected by these disasters.

    In many cases, migrant workers are entitled to regular UI and, therefore, not entitled to DUA. However, other migrant workers will either not be covered for UI eligibility or not be monetarily eligible for UI and, therefore, entitled to DUA provided that they meet the DUA qualifying requirements. Those not entitled to UI will file DUA claims on an interstate basis. The State in which they file their DUA claims will be the "agent State."

    Under current DUA funding guidelines, there is no provision for paying DUA administrative costs for "agent State" DUA claims taking activities. DUA administrative funds are provided only to States with declared disasters, i.e., liable States. Furthermore, States are prohibited from using Title III grants for this DUA activity since Title III grants are used solely for the "proper and efficient administration" of a State unemployment compensation law that the Secretary of Labor has certified meets the requirements of the Federal Unemployment Tax Act (emphasis added).

  4. Funding Procedure. Agent State DUA workload will be reimbursed by the ETA in the following manner:

    1. The agent State claims activity will be reported to the appropriate ETA Regional Office when DUA interstate claimstaking activity ceases on the applicable disaster. This report will identify the disaster number and liable State of the applicable disaster. It will be the agent State's responsibility to coordinate the preparation of its fiscal close-out report with the liable State involved in the applicable disaster and to inform its Regional Office of its agent State DUA claims activity.

    2. The Regional Office of the agent State will forward two copies of the agent State's final workload activity report; one copy will be forwarded to the National Office; attention: TEUMI; and the other copy to the Regional Office of the liable State for the applicable disaster. This report will be utilized by the Regional Office of the liable State for DUA workload reconciliation purposes. The Regional Office of the liable State will include the workload report from the agent State(s) in the final fiscal close-out report for the applicable disaster and forward the final fiscal report to the ETA National Office.

    3. Upon the approval of the agent State's final workload activity report by the National Office, the ETA will reimburse the agent State for its costs in taking DUA claims through the agent State's Regional Office.

  5. Action Required. SESA Administrators are requested to communicate the contents of this directive to the appropriate staff and implementation should be initiated and concluded as quickly as possible.

  6. Inquiries. Direct questions to the appropriate ETA Regional Office.