 
             CHAPTER 44--VOCATIONAL AND TECHNICAL EDUCATION
 
   SUBCHAPTER I--VOCATIONAL AND TECHNICAL EDUCATION ASSISTANCE TO THE 
                                 STATES
 
                    Part A--Allotment and Allocation
 
Sec. 2321. Reservations and State allotment


(a) Reservations and State allotment

                          (1) Reservations

        From the sum appropriated under section 2307 of this title for 
    each fiscal year, the Secretary shall reserve--
            (A) 0.2 percent to carry out section 2325 of this title;
            (B) 1.50 percent to carry out section 2326 of this title, of 
        which--
                (i) 1.25 percent of the sum shall be available to carry 
            out section 2326(b) of this title; and
                (ii) 0.25 percent of the sum shall be available to carry 
            out section 2326(h) of this title; and

            (C) in the case of each of the fiscal years 2001 through 
        2003, 0.54 percent to carry out section 9273 of this title.

                     (2) State allotment formula

        Subject to paragraphs (3) and (4), from the remainder of the 
    sums appropriated under section 2307 of this title and not reserved 
    under paragraph (1) for a fiscal year, the Secretary shall allot to 
    a State for the fiscal year--
            (A) an amount that bears the same ratio to 50 percent of the 
        sums being allotted as the product of the population aged 15 to 
        19 inclusive, in the State in the fiscal year preceding the 
        fiscal year for which the determination is made and the State's 
        allotment ratio bears to the sum of the corresponding products 
        for all the States;
            (B) an amount that bears the same ratio to 20 percent of the 
        sums being allotted as the product of the population aged 20 to 
        24, inclusive, in the State in the fiscal year preceding the 
        fiscal year for which the determination is made and the State's 
        allotment ratio bears to the sum of the corresponding products 
        for all the States;
            (C) an amount that bears the same ratio to 15 percent of the 
        sums being allotted as the product of the population aged 25 to 
        65, inclusive, in the State in the fiscal year preceding the 
        fiscal year for which the determination is made and the State's 
        allotment ratio bears to the sum of the corresponding products 
        for all the States; and
            (D) an amount that bears the same ratio to 15 percent of the 
        sums being allotted as the amounts allotted to the State under 
        subparagraphs (A), (B), and (C) for such years bears to the sum 
        of the amounts allotted to all the States under subparagraphs 
        (A), (B), and (C) for such year.

                        (3) Minimum allotment

        (A) In general

            Notwithstanding any other provision of law and subject to 
        subparagraphs (B) and (C), and paragraph (4), no State shall 
        receive for a fiscal year under this subsection less than \1/2\ 
        of 1 percent of the amount appropriated under section 2307 of 
        this title and not reserved under paragraph (1) for such fiscal 
        year. Amounts necessary for increasing such payments to States 
        to comply with the preceding sentence shall be obtained by 
        ratably reducing the amounts to be paid to other States.

        (B) Requirement

            No State, by reason of the application of subparagraph (A), 
        shall receive for a fiscal year more than 150 percent of the 
        amount the State received under this subsection for the 
        preceding fiscal year (or in the case of fiscal year 1999 only, 
        under section 101 of the Carl D. Perkins Vocational and Applied 
        Technology Education Act, as such section was in effect on the 
        day before October 31, 1998).

        (C) Special rule

            (i) In general

                Subject to paragraph (4), no State, by reason of the 
            application of subparagraph (A), shall be allotted for a 
            fiscal year more than the lesser of--
                    (I) 150 percent of the amount that the State 
                received in the preceding fiscal year (or in the case of 
                fiscal year 1999 only, under section 101 of the Carl D. 
                Perkins Vocational and Applied Technology Education Act, 
                as such section was in effect on the day before October 
                31, 1998); and
                    (II) the amount calculated under clause (ii).
            (ii) Amount

                The amount calculated under this clause shall be 
            determined by multiplying--
                    (I) the number of individuals in the State counted 
                under paragraph (2) in the preceding fiscal year; by
                    (II) 150 percent of the national average per pupil 
                payment made with funds available under this section for 
                that year (or in the case of fiscal year 1999, only, 
                under section 101 of the Carl D. Perkins Vocational and 
                Applied Technology Education Act, as such section was in 
                effect on the day before October 31, 1998).

                          (4) Hold harmless

        (A) In general

            No State shall receive an allotment under this section for a 
        fiscal year that is less than the allotment the State received 
        under part A of title I of the Carl D. Perkins Vocational and 
        Applied Technology Education Act (as such part was in effect on 
        the day before October 31, 1998) for fiscal year 1998.

        (B) Ratable reduction

            If for any fiscal year the amount appropriated for 
        allotments under this section is insufficient to satisfy the 
        provisions of subparagraph (A), the payments to all States under 
        such subparagraph shall be ratably reduced.

(b) Reallotment

    If the Secretary determines that any amount of any State's allotment 
under subsection (a) of this section for any fiscal year will not be 
required for such fiscal year for carrying out the activities for which 
such amount has been allotted, the Secretary shall make such amount 
available for reallotment. Any such reallotment among other States shall 
occur on such dates during the same year as the Secretary shall fix, and 
shall be made on the basis of criteria established by regulation. No 
funds may be reallotted for any use other than the use for which the 
funds were appropriated. Any amount reallotted to a State under this 
subsection for any fiscal year shall remain available for obligation 
during the succeeding fiscal year and shall be deemed to be part of the 
State's allotment for the year in which the amount is obligated.

(c) Allotment ratio

                           (1) In general

        The allotment ratio for any State shall be 1.00 less the product 
    of--
            (A) 0.50; and
            (B) the quotient obtained by dividing the per capita income 
        for the State by the per capita income for all the States 
        (exclusive of the Commonwealth of Puerto Rico and the United 
        States Virgin Islands), except that--
                (i) the allotment ratio in no case shall be more than 
            0.60 or less than 0.40; and
                (ii) the allotment ratio for the Commonwealth of Puerto 
            Rico and the United States Virgin Islands shall be 0.60.

                          (2) Promulgation

        The allotment ratios shall be promulgated by the Secretary for 
    each fiscal year between October 1 and December 31 of the fiscal 
    year preceding the fiscal year for which the determination is made. 
    Allotment ratios shall be computed on the basis of the average of 
    the appropriate per capita incomes for the 3 most recent consecutive 
    fiscal years for which satisfactory data are available.

                  (3) ``Per capita income'' defined

        For the purpose of this section, the term ``per capita income'' 
    means, with respect to a fiscal year, the total personal income in 
    the calendar year ending in such year, divided by the population of 
    the area concerned in such year.

                    (4) Population determination

        For the purposes of this section, population shall be determined 
    by the Secretary on the basis of the latest estimates available to 
    the Department of Education.

(d) ``State'' defined

    For the purpose of this section, the term ``State'' means each of 
the several States of the United States, the District of Columbia, the 
Commonwealth of Puerto Rico, and the United States Virgin Islands.

(Pub. L. 88-210, title I, Sec. 111, as added Pub. L. 105-332, Sec. 1(b), 
Oct. 31, 1998, 112 Stat. 3083; amended Pub. L. 106-246, div. B, title 
II, Sec. 2403(b), July 13, 2000, 114 Stat. 555.)

                       References in Text

    Section 101 and part A of title I of the Carl D. Perkins Vocational 
and Applied Technology Education Act, as such section and part were in 
effect on the day before October 31, 1998, referred to in subsec. 
(a)(3)(B), (C), (4)(A), means section 101 and part A of title I of Pub. 
L. 88-210, as added by Pub. L. 98-524, Sec. 1, Oct. 19, 1984, 98 Stat. 
2438, as amended, which were classified, respectively, to section 2311 
of this title and part A (Sec. 2311 et seq.) of subchapter I of this 
chapter prior to the general amendment of this chapter by Pub. L. 105-
332, Sec. 1(b), Oct. 31, 1998, 112 Stat. 3076.


                            Prior Provisions

    Provisions similar to this section were contained in section 2311 of 
this title, prior to the general amendment of this chapter by Pub. L. 
105-332.
    A prior section 2321, Pub. L. 88-210, title I, Sec. 111, as added 
Pub. L. 98-524, Sec. 1, Oct. 19, 1984, 98 Stat. 2441; amended Pub. L. 
101-392, title I, Sec. 111, Sept. 25, 1990, 104 Stat. 763; Pub. L. 103-
382, title III, Sec. 391(s)(1), Oct. 20, 1994, 108 Stat. 4024, related 
to State administration, prior to the general amendment of this chapter 
by Pub. L. 105-332. See section 2341 of this title.


                               Amendments

    2000--Subsec. (a)(1)(C). Pub. L. 106-246 substituted ``fiscal years 
2001'' for ``fiscal years 2000''.

                  Section Referred to in Other Sections

    This section is referred to in sections 2322, 2323, 2325, 2326, 
2342, 2343, 2372 of this title.
