DRAFT Waiver Request: ETPL

Waiver Request: ETPL

Iowa is facing a skilled worker shortage. To help meet the State’s workforce needs, Gov. Reynolds has led the Future Ready Iowa initiative, which has as its goal that 70% of the State’s workforce will have received postsecondary education or training that leads to a recognized credential. While Iowa recognizes the importance of consumer choice with respect to the WIOA list of eligible providers and programs (ETPL), the State believes that some of the federal requirements are unduly burdensome on providers and will hinder the ability to reach our Future Ready Iowa goal.

In consulting with stakeholders, including chief elected officials (CEOs), Local Workforce Development Boards, interested and concerned citizens, and Iowa’s community colleges, Iowa Workforce Development (IWD) developed this waiver request for requirements under WIOA section 122 and its final rules that apply to the list of eligible providers and programs (ETPL).

Required Elements of a Waiver Request Under WIOA

In satisfaction of the required elements identified in the U.S. Department of Labor (DOL) Waiver Request Tool:

1. The statutory and regulatory requirements are identified below, within each individual waiver request.

1. There are no State or local barriers, only Federal barriers imposed by WIOA and its final rules.

1. These waiver requests will help fulfill the consumer choice goals of the ETPL and the State’s Future Ready Iowa goal by contributing to the development of a robust selection of training providers and programs across the State for appropriate WIOA Title I program participants.

1. The State anticipates that this will help program outcomes by allowing Iowa to develop an ETPL with a wide selection of providers and programs, which will help participants pursue a career pathway that is aligned with their goals and interests.

1. These waiver requests will give program participants more choices when selecting a training program, reduce the burden on providers when submitting programs for inclusion on the ETPL, and reduce the burden on the State as well as Local Workforce Development Boards (WDBs) with respect to the administration of the ETPL.

1. IWD will continue to collect data from ETPs on their WIOA-funded students and to submit that data via IWD’s annual report to the U.S. Department of Labor (DOL). IWD will collect and include information about waiver outcomes in the State’s WIOA annual report.

1. IWD posted a draft of this waiver request on the State’s public comment portal for 30 days prior to submitting this waiver request.

ETPL Waiver Request No. 1

IWD is seeking a waiver from the requirements outlined in WIOA sections 116 and 122, and at 20 CFR section 677.230 and 20 CFR sections 680.400 through 680.530, which require the collection and reporting of performance related data on all students participating in training programs listed on the State’s ETPL.

Under WIOA section 116(d)(4)(A) and 20 CFR section 677.230(a)(5), Eligible Training Providers (ETPs) must report performance data with respect to all individuals engaging in a program of study (or the equivalent). While DWS recognizes the value and importance of monitoring provider performance, requiring ETPs to produce data on all individuals instead of just WIOA-funded participants places an undue burden on ETPs to collect, enter, and report excessive data. This is especially burdensome when ETPs have many students of whom only a small percentage are WIOA participants. The US Departments of Labor (DOL) and Education acknowledge this burden in their response to comments regarding 20 CFR section 677.230 in the preamble of the WIOA Final Rule by stating, “The Departments are cognizant of the reporting burden the ETP performance report places on ETPs and do not want to place additional burden on these entities,” however, there was no change to the regulatory text.

Requiring ETPs to provide data on all individuals instead of WIOA-funded participants may dissuade the institution from participating as a WIOA program provider, thereby significantly limiting consumer choice. 

IWD requests a waiver of the requirements in WIOA sections 116 and 122 and 20 CFR sections 677.230 and 680.400 through 680.530 that require the collection and reporting of performance related data on all participants in training programs on the State’s ETPL.

ETPL Waiver Request No. 2

IWD is seeking a waiver of the requirement that the continued eligible of providers and programs on the ETPL be reviewed biennially, as required under WIOA section 122(c)(2) and 20 CFR sections 680.460, 680.480, and 680.500. This requirement creates an undue administrative burden on providers, Local WDBs, and the State. IWD is asking for a waiver of the requirement for biennial review of ETPL eligibility. IWD asks that Iowa be allowed to use a quadrennial review of ETPL eligibility instead.

ETPL Waiver Request No. 3

WIOA section 122 and 20 CFR section 680.450 require providers to submit certain information for an ETPL initial eligibility determination. This requirement creates an undue administrative burden on providers, Local WDBs, and the State. IWD is asking for a waiver of the requirement that providers submit appropriate, accurate, and timely data relating to the following two required initial eligibility criteria:

1. Under 20 CFR section 680.450(e)(2), to provide information addressing a factor related to the indicators of performance, as described in WIOA secs. 116(b)(2)(A)(i)(I)-(IV) and §680.460(g)(1) through (4) which include unsubsidized employment during the second quarter after exit, unsubsidized employment during the fourth quarter after exit, median earnings and credentials attainment; and

1. Under 20 CFR section 680.450(e)(5), to provide information that addresses alignment of the training services with in-demand industry sectors and occupations.

This waiver would ease the administrative burden on providers, Local WDBs, and the State by making review and eligibility determinations easier and, therefore, quicker, which will allow more consumer choice for program participants because there will be more programs on the ETPL.

ETPL Waiver Request No. 4

WIOA section 122 and 20 CFR section 680.460 require providers to submit certain information for an ETPL initial eligibility determination. This requirement creates an undue administrative burden on providers, Local WDBs, and the State. IWD is asking for a waiver of the requirement that, in establishing continue eligibility criteria, the Governor must take into account, among other information:

1. Under 20 CFR section 680.460(g)(1)(i), the performance accountability measures described in WIOA secs. 116(b)(2)(A)(i)(I)-(IV) and the other matters required by WIOA sec. 122(b)(2); and

1. Under 20 CFR section 680.460(g)(4), the degree to which programs of training services relate to in-demand industry sectors and occupations in the State.

This waiver would ease the administrative burden on providers, Local WDBs, and the State by making review and eligibility determinations easier and, therefore, quicker, which will allow more consumer choice for program participants because there will be more programs on the ETPL.

ETPL Waiver Request No. 5

20 CFR section 680.480 governs the loss of provider eligibility for the ETPL. This requirement creates an undue administrative burden on providers, Local WDBs, and the State. IWD asks that the Secretary waive the requirement that providers that fail to meet the eligibility criteria be immediately removed from the ETPL so that IWD may place them in a two-year probationary period before removing them from the ETPL. This waiver would ease the administrative burden on providers, Local WDBs, and the State by making review and eligibility determinations easier and, therefore, quicker, which will allow more consumer choice for program participants because there will be more programs on the ETPL.