The federal JTPA legislation expired June 30, 2000 and WIA was to be fully implemented on July 1, 2000. However, USDOL has declared a "Transition Year" for WIA implementation. They now acknowledge that not all states are ready for full implementation. Training and Employment Guidance Letter (TEGL) #15-99 describes contingency planning options for State Plans under WIA and the Wagner Peyser Act. Three Categories of Implementation are outlined in the TEGL: Category One: those states that are fully consistent with all required elements of WIA. These states will have no funding restrictions and will be eligible for performance incentive grants. Category Two: those states whose plans are consistent with 5 critical requirements of WIA, (Public Comment; Compliant State Board; All Local Areas Designated, Funds Allocated and Approved Performance Levels), but not all planned services are fully operational (e.g. ITAs). These states are approved as transitional and will receive technical assistance and are held to firm implementation timelines. They will be ineligible for incentive grants unless fully operational by 12/31/2000. Category Three: those states whose plans do not meet the 5 critical requirements. These plans will not be approved; restrictions will be placed on allotments and expenditures; technical assistance will be provided; and these states will not be eligible for incentive funds.