
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 29USC2853]

 
                             TITLE 29--LABOR
 
                CHAPTER 30--WORKFORCE INVESTMENT SYSTEMS
 
     SUBCHAPTER II--STATEWIDE AND LOCAL WORKFORCE INVESTMENT SYSTEMS
 
                        Part D--Youth Activities
 
Sec. 2853. Within State allocations


(a) Reservations for State activities

                           (1) In general

        The Governor of a State shall reserve not more than 15 percent 
    of each of the amounts allotted to the State under section 
    2852(b)(1)(C) of this title and paragraphs (1)(B) and (2)(B) of 
    section 2862(b) of this title for a fiscal year for statewide 
    workforce investment activities.

                          (2) Use of funds

        Regardless of whether the reserved amounts were allotted under 
    section 2852(b)(1)(C) of this title, or under paragraph (1)(B) or 
    (2)(B) of section 2862(b) of this title, the Governor may use the 
    reserved amounts to carry out statewide youth activities described 
    in section 2854(b) of this title or statewide employment and 
    training activities, for adults or for dislocated workers, described 
    in paragraph (2)(B) or (3) of section 2864(a) of this title.

(b) Within State allocation

                             (1) Methods

        The Governor, acting in accordance with the State plan, and 
    after consulting with chief elected officials in the local areas, 
    shall allocate the funds that are allotted to the State for youth 
    activities and statewide workforce investment activities under 
    section 2852(b)(1)(C) of this title and are not reserved under 
    subsection (a) of this section, in accordance with paragraph (2) or 
    (3).

                       (2) Formula allocation

        (A) Youth activities

            (i) Allocation

                In allocating the funds described in paragraph (1) to 
            local areas, a State may allocate--
                    (I) 33\1/3\ percent of the funds on the basis 
                described in section 2852(b)(1)(C)(ii)(I) of this title;
                    (II) 33\1/3\ percent of the funds on the basis 
                described in section 2852(b)(1)(C)(ii)(II) of this 
                title; and
                    (III) 33\1/3\ percent of the funds on the basis 
                described in clauses (ii)(III) and (iii) of section 
                2852(b)(1)(C) of this title.
            (ii) Minimum percentage

                Effective at the end of the second full fiscal year 
            after the date on which a local area is designated under 
            section 2831 of this title, the local area shall not receive 
            an allocation percentage for a fiscal year that is less than 
            90 percent of the average allocation percentage of the local 
            area for the 2 preceding fiscal years. Amounts necessary for 
            increasing such allocations to local areas to comply with 
            the preceding sentence shall be obtained by ratably reducing 
            the allocations to be made to other local areas under this 
            subparagraph.
            (iii) Definition

                The term ``allocation percentage'', used with respect to 
            fiscal year 2000 or a subsequent fiscal year, means a 
            percentage of the funds referred to in clause (i), received 
            through an allocation made under this subparagraph, for the 
            fiscal year.

        (B) Application

            For purposes of carrying out subparagraph (A)--
                (i) references in section 2852(b) of this title to a 
            State shall be deemed to be references to a local area;
                (ii) references in section 2852(b) of this title to all 
            States shall be deemed to be references to all local areas 
            in the State involved; and
                (iii) except as described in clause (i), references in 
            section 2852(b)(1) of this title to the term ``excess 
            number'' shall be considered to be references to the term as 
            defined in section 2852(b)(2) of this title.

                 (3) Youth discretionary allocation

        In lieu of making the allocation described in paragraph (2)(A), 
    in allocating the funds described in paragraph (1) to local areas, a 
    State may distribute--
            (A) a portion equal to not less than 70 percent of the funds 
        in accordance with paragraph (2)(A); and
            (B) the remaining portion of the funds on the basis of a 
        formula that--
                (i) incorporates additional factors (other than the 
            factors described in paragraph (2)(A)) relating to--
                    (I) excess youth poverty in urban, rural, and 
                suburban local areas; and
                    (II) excess unemployment above the State average in 
                urban, rural, and suburban local areas; and

                (ii) was developed by the State board and approved by 
            the Secretary as part of the State plan.

                           (4) Limitation

        (A) In general

            Of the amount allocated to a local area under this 
        subsection and section 2863(b) of this title for a fiscal year, 
        not more than 10 percent of the amount may be used by the local 
        board for the administrative cost of carrying out local 
        workforce investment activities described in subsection (d) or 
        (e) of section 2864 of this title or in section 2854(c) of this 
        title.

        (B) Use of funds

            Funds made available for administrative costs under 
        subparagraph (A) may be used for the administrative cost of any 
        of the local workforce investment activities described in 
        subsection (d) or (e) of section 2864 of this title or in 
        section 2854(c) of this title, regardless of whether the funds 
        were allocated under this subsection or section 2863(b) of this 
        title.

        (C) Regulations

            The Secretary, after consulting with the Governors, shall 
        develop and issue regulations that define the term 
        ``administrative cost'' for purposes of this chapter. Such 
        definition shall be consistent with generally accepted 
        accounting principles.

(c) Reallocation among local areas

                           (1) In general

        The Governor may, in accordance with this subsection, reallocate 
    to eligible local areas within the State amounts that are allocated 
    under paragraph (2)(A) or (3) of subsection (b) of this section for 
    youth activities and that are available for reallocation.

                             (2) Amount

        The amount available for reallocation for a program year is 
    equal to the amount by which the unobligated balance of the local 
    area allocation under paragraph (2)(A) or (3) of subsection (b) of 
    this section for such activities, at the end of the program year 
    prior to the program year for which the determination under this 
    paragraph is made exceeds 20 percent of such allocation for the 
    prior program year.

                          (3) Reallocation

        In making reallocations to eligible local areas of amounts 
    available pursuant to paragraph (2) for a program year, the Governor 
    shall allocate to each eligible local area within the State an 
    amount based on the relative amount allocated to such local area 
    under subsection (b)(3) of this section for such activities for the 
    prior program year, as compared to the total amount allocated to all 
    eligible local areas in the State under subsection (b)(3) of this 
    section for such activities for such prior program year. For 
    purposes of this paragraph, local areas that received allocations 
    under subsection (b)(2)(A) of this section for the prior program 
    year shall be treated as if the local areas received allocations 
    under subsection (b)(3) of this section for such year.

                           (4) Eligibility

        For purposes of this subsection, an eligible local area means a 
    local area that has obligated at least 80 percent of the local area 
    allocation under paragraph (2)(A) or (3) of subsection (b) of this 
    section for such activities, for the program year prior to the 
    program year for which the determination under paragraph (2) is 
    made.

(Pub. L. 105-220, title I, Sec. 128, Aug. 7, 1998, 112 Stat. 976.)

                  Section Referred to in Other Sections

    This section is referred to in sections 2821, 2822, 2832, 2842, 
2843, 2854, 2863, 2864, 2932 of this title.
