
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: 29USC2862]

 
                             TITLE 29--LABOR
 
                CHAPTER 30--WORKFORCE INVESTMENT SYSTEMS
 
     SUBCHAPTER II--STATEWIDE AND LOCAL WORKFORCE INVESTMENT SYSTEMS
 
 Part E--Adult and Dislocated Worker Employment and Training Activities
 
Sec. 2862. State allotments


(a) In general

    The Secretary shall--
        (1) make allotments and grants from the total amount 
    appropriated under section 2872(b) of this title for a fiscal year 
    in accordance with subsection (b)(1) of this section; and
        (2)(A) reserve 20 percent of the amount appropriated under 
    section 2872(c) of this title for a fiscal year for use under 
    subsection (b)(2)(A) of this section, and under sections 2915(b) 
    (relating to dislocated worker technical assistance), 2916(d) 
    (relating to dislocated worker projects), and 2918 (relating to 
    national emergency grants) of this title; and
        (B) make allotments from 80 percent of the amount appropriated 
    under section 2872(c) of this title for a fiscal year in accordance 
    with subsection (b)(2)(B) of this section.

(b) Allotment among States

            (1) Adult employment and training activities

        (A) Reservation for outlying areas

            (i) In general

                From the amount made available under subsection (a)(1) 
            of this section for a fiscal year, the Secretary shall 
            reserve not more than \1/4\ of 1 percent to provide 
            assistance to the outlying areas.
            (ii) Applicability of additional requirements

                From the amount reserved under clause (i), the Secretary 
            shall provide assistance to the outlying areas for adult 
            employment and training activities and statewide workforce 
            investment activities in accordance with the requirements of 
            section 2852(b)(1)(B) of this title, except that the 
            reference in section 2852(b)(1)(B)(i)(II) of this title to 
            sections 252(d) and 262(a)(1) of the Job Training 
            Partnership Act shall be deemed to be a reference to section 
            202(a)(1) of the Job Training Partnership Act (as in effect 
            on the day before August 7, 1998).

        (B) States

            (i) In general

                After determining the amount to be reserved under 
            subparagraph (A), the Secretary shall allot the remainder of 
            the amount referred to in subsection (a)(1) of this section 
            for a fiscal year to the States pursuant to clause (ii) for 
            adult employment and training activities and statewide 
            workforce investment activities.
            (ii) Formula

                Subject to clauses (iii) and (iv), of the remainder--
                    (I) 33\1/3\ percent shall be allotted on the basis 
                of the relative number of unemployed individuals in 
                areas of substantial unemployment in each State, 
                compared to the total number of unemployed individuals 
                in areas of substantial unemployment in all States;
                    (II) 33\1/3\ percent shall be allotted on the basis 
                of the relative excess number of unemployed individuals 
                in each State, compared to the total excess number of 
                unemployed individuals in all States; and
                    (III) 33\1/3\ percent shall be allotted on the basis 
                of the relative number of disadvantaged adults in each 
                State, compared to the total number of disadvantaged 
                adults in all States, except as described in clause 
                (iii).
            (iii) Calculation

                In determining an allotment under clause (ii)(III) for 
            any State in which there is a local area designated under 
            section 2831(a)(2)(B) of this title, the allotment shall be 
            based on the higher of--
                    (I) the number of adults in families with an income 
                below the low-income level in such area; or
                    (II) the number of disadvantaged adults in such 
                area.
            (iv) Minimum and maximum percentages and minimum 
                    allotments

                In making allotments under this subparagraph, the 
            Secretary shall ensure the following:
                (I) Minimum percentage and allotment

                    Subject to subclause (IV), the Secretary shall 
                ensure that no State shall receive an allotment for a 
                fiscal year that is less than the greater of--
                        (aa) an amount based on 90 percent of the 
                    allotment percentage of the State for the preceding 
                    fiscal year; or
                        (bb) 100 percent of the allotment of the State 
                    under section 202 of the Job Training Partnership 
                    Act (as in effect on the day before August 7, 1998) 
                    for fiscal year 1998.
                (II) Small State minimum allotment

                    Subject to subclauses (I), (III), and (IV), the 
                Secretary shall ensure that no State shall receive an 
                allotment under this subparagraph that is less than the 
                total of--
                        (aa) \3/10\ of 1 percent of $960,000,000 of the 
                    remainder described in clause (i) for the fiscal 
                    year; and
                        (bb) if the remainder described in clause (i) 
                    for the fiscal year exceeds $960,000,000, \2/5\ of 1 
                    percent of the excess.
                (III) Maximum percentage

                    Subject to subclause (I), the Secretary shall ensure 
                that no State shall receive an allotment percentage for 
                a fiscal year that is more than 130 percent of the 
                allotment percentage of the State for the preceding 
                fiscal year.
                (IV) Minimum funding

                    In any fiscal year in which the remainder described 
                in clause (i) does not exceed $960,000,000, the minimum 
                allotments under subclauses (I) and (II) shall be 
                calculated by the methodology for calculating the 
                corresponding allotments under part A of title II of the 
                Job Training Partnership Act, as in effect on July 1, 
                1998.
            (v) Definitions

                For the purpose of the formula specified in this 
            subparagraph:
                (I) Adult

                    The term ``adult'' means an individual who is not 
                less than age 22 and not more than age 72.
                (II) Allotment percentage

                    The term ``allotment percentage'', used with respect 
                to fiscal year 2000 or a subsequent fiscal year, means a 
                percentage of the remainder described in clause (i) that 
                is received through an allotment made under this 
                subparagraph for the fiscal year. The term, used with 
                respect to fiscal year 1998 or 1999, means the 
                percentage of the amounts allotted to States under 
                section 202(a) of the Job Training Partnership Act (as 
                in effect on the day before August 7, 1998) that is 
                received under such section by the State involved for 
                fiscal year 1998 or 1999.
                (III) Area of substantial unemployment

                    The term ``area of substantial unemployment'' means 
                any area that is of sufficient size and scope to sustain 
                a program of workforce investment activities carried out 
                under this subchapter and that has an average rate of 
                unemployment of at least 6.5 percent for the most recent 
                12 months, as determined by the Secretary. For purposes 
                of this subclause, determinations of areas of 
                substantial unemployment shall be made once each fiscal 
                year.
                (IV) Disadvantaged adult

                    Subject to subclause (V), the term ``disadvantaged 
                adult'' means an adult who received an income, or is a 
                member of a family that received a total family income, 
                that, in relation to family size, does not exceed the 
                higher of--
                        (aa) the poverty line; or
                        (bb) 70 percent of the lower living standard 
                    income level.
                (V) Disadvantaged adult special rule

                    The Secretary shall, as appropriate and to the 
                extent practicable, exclude college students and members 
                of the Armed Forces from the determination of the number 
                of disadvantaged adults.
                (VI) Excess number

                    The term ``excess number'' means, used with respect 
                to the excess number of unemployed individuals within a 
                State, the higher of--
                        (aa) the number that represents the number of 
                    unemployed individuals in excess of 4.5 percent of 
                    the civilian labor force in the State; or
                        (bb) the number that represents the number of 
                    unemployed individuals in excess of 4.5 percent of 
                    the civilian labor force in areas of substantial 
                    unemployment in such State.

            (2) Dislocated worker employment and training

        (A) Reservation for outlying areas

            (i) In general

                From the amount made available under subsection 
            (a)(2)(A) of this section for a fiscal year, the Secretary 
            shall reserve not more than \1/4\ of 1 percent of the amount 
            appropriated under section 2872(c) of this title for the 
            fiscal year to provide assistance to the outlying areas.
            (ii) Applicability of additional requirements

                From the amount reserved under clause (i), the Secretary 
            shall provide assistance to the outlying areas for 
            dislocated worker employment and training activities and 
            statewide workforce investment activities in accordance with 
            the requirements of section 2852(b)(1)(B) of this title, 
            except that the reference in section 2852(b)(1)(B)(i)(II) of 
            this title to sections 252(a) and 262(a)(1) of the Job 
            Training Partnership Act shall be deemed to be a reference 
            to section 302(e) of the Job Training Partnership Act [29 
            U.S.C. 1652(e)] (as in effect on the day before August 7, 
            1998).

        (B) States

            (i) In general

                The Secretary shall allot the amount referred to in 
            subsection (a)(2)(B) of this section for a fiscal year to 
            the States pursuant to clause (ii) for dislocated worker 
            employment and training activities and statewide workforce 
            investment activities.
            (ii) Formula

                Of the amount--
                    (I) 33\1/3\ percent shall be allotted on the basis 
                of the relative number of unemployed individuals in each 
                State, compared to the total number of unemployed 
                individuals in all States;
                    (II) 33\1/3\ percent shall be allotted on the basis 
                of the relative excess number of unemployed individuals 
                in each State, compared to the total excess number of 
                unemployed individuals in all States; and
                    (III) 33\1/3\ percent shall be allotted on the basis 
                of the relative number of individuals in each State who 
                have been unemployed for 15 weeks or more, compared to 
                the total number of individuals in all States who have 
                been unemployed for 15 weeks or more.
            (iii) Definition

                In this subparagraph, the term ``excess number'' means, 
            used with respect to the excess number of unemployed 
            individuals within a State, the number that represents the 
            number of unemployed individuals in excess of 4.5 percent of 
            the civilian labor force in the State.

                           (3) Definitions

        For the purpose of the formulas specified in this subsection:

        (A) Freely Associated States

            The term ``Freely Associated States'' means the Republic of 
        the Marshall Islands, the Federated States of Micronesia, and 
        the Republic of Palau.

        (B) Low-income level

            The term ``low-income level'' means $7,000 with respect to 
        income in 1969, and for any later year means that amount that 
        bears the same relationship to $7,000 as the Consumer Price 
        Index for that year bears to the Consumer Price Index for 1969, 
        rounded to the nearest $1,000.

(c) Reallotment

                           (1) In general

        The Secretary shall, in accordance with this subsection, reallot 
    to eligible States amounts that are allotted under this section for 
    employment and training activities and statewide workforce 
    investment activities and that are available for reallotment.

                             (2) Amount

        The amount available for reallotment for a program year is equal 
    to the amount by which the unobligated balance of the State 
    allotments under 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 allotments 
    for the prior program year.

                           (3) Reallotment

        In making reallotments to eligible States of amounts available 
    pursuant to paragraph (2) for a program year, the Secretary shall 
    allot to each eligible State an amount based on the relative amount 
    allotted to such State under this section for such activities for 
    the prior program year, as compared to the total amount allotted to 
    all eligible States under this section for such activities for such 
    prior program year.

                           (4) Eligibility

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

                           (5) Procedures

        The Governor of each State shall prescribe uniform procedures 
    for the obligation of funds by local areas within the State in order 
    to avoid the requirement that funds be made available for 
    reallotment under this subsection. The Governor shall further 
    prescribe equitable procedures for making funds available from the 
    State and local areas in the event that a State is required to make 
    funds available for reallotment under this subsection.

(Pub. L. 105-220, title I, Sec. 132, Aug. 7, 1998, 112 Stat. 983.)

                       References in Text

    The Job Training Partnership Act, referred to in subsec. 
(b)(1)(A)(ii), (B)(iv)(I)(bb), (IV), (v)(II), (2)(A)(ii), is Pub. L. 97-
300, Oct. 13, 1982, 96 Stat. 1322, as amended, which was repealed by 
Pub. L. 105-220, title I, Sec. 199(b)(2), Aug. 7, 1998, 112 Stat. 1059, 
effective July 1, 2000. Part A of title II of the Act was classified 
generally to part A (Sec. 1601 et seq.) of subchapter II of chapter 19 
of this title, prior to repeal by Pub. L. 105-220. Sections 202, 252, 
262, and 302 of the Act were classified to sections 1602, 1631, 1642, 
and 1652 of this title, respectively, prior to repeal by Pub. L. 105-
220. For complete classification of this Act to the Code, see Tables.

                  Section Referred to in Other Sections

    This section is referred to in sections 2801, 2822, 2831, 2853, 
2854, 2861, 2863, 2864, 2871, 2872, 2915, 2916, 2918, 2932, 2944 of this 
title.
