1. (1) Section 617.22(6) of the Trade Act of 1974, as amended, requires that training be available at a reasonable cost. “Available at a reasonable cost” means that training may not be approved when the costs of the training are unreasonably high in comparison with the average cost of training of other workers in similar occupations at other providers.

2. (2) The cost of training which included tuition and related expenses (books, tools, and academic fees), transportation and subsistence expenses of active TAA participants is totaled and divided by the number of active TAA participants in order to determine the average cost of training. The calculation will be made as follows:

   Total training costs ÷ number of active participants = the average cost of training

3. (3) Another factor in determining if training is available at the reasonable cost is calculated by doubling the average cost of training of active TAA participants. This calculated amount is considered to be a reasonable cost for TAA funded training and will serve as the training cap for Alabama. When a Training Proposal for TAA funded training is received and the training cost is in excess of the training cap, a determination denying the training will be issued. The calculation will be made as follows:

   Average cost of training x two = reasonable cost of training

Author: Bonnie M. Lashley, Trade Act Coordinator, Unemployment Compensation Division

Statutory Authority: Trade Act of 1974, PL 93-618 as amended, §617.22.

History: New Rule: Filed December 23, 2005; effective January 27, 2006.