
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: 29USC2863]

 
                             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. 2863. Within State allocations


(a) Reservations for State activities

            (1) Statewide workforce investment activities

        The Governor of a State shall make the reservation required 
    under section 2853(a) of this title.

               (2) Statewide rapid response activities

        The Governor of the State shall reserve not more than 25 percent 
    of the total amount allotted to the State under section 
    2862(b)(2)(B) of this title for a fiscal year for statewide rapid 
    response activities described in section 2864(a)(2)(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--
            (A) the funds that are allotted to the State for adult 
        employment and training activities and statewide workforce 
        investment activities under section 2862(b)(1)(B) of this title 
        and are not reserved under subsection (a)(1) of this section, in 
        accordance with paragraph (2) or (3); and
            (B) the funds that are allotted to the State for dislocated 
        worker employment and training activities under section 
        2862(b)(2)(B) of this title and are not reserved under paragraph 
        (1) or (2) of subsection (a) of this section, in accordance with 
        paragraph (2).

                       (2) Formula allocations

        (A) Adult employment and training activities

            (i) Allocation

                In allocating the funds described in paragraph (1)(A) to 
            local areas, a State may allocate--
                    (I) 33\1/3\ percent of the funds on the basis 
                described in section 2862(b)(1)(B)(ii)(I) of this title;
                    (II) 33\1/3\ percent of the funds on the basis 
                described in section 2862(b)(1)(B)(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 
                2862(b)(1)(B) 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) Dislocated worker employment and training activities

            (i) Formula

                In allocating the funds described in paragraph (1)(B) to 
            local areas, a State shall allocate the funds based on an 
            allocation formula prescribed by the Governor of the State. 
            Such formula may be amended by the Governor not more than 
            once for each program year. Such formula shall utilize the 
            most appropriate information available to the Governor to 
            distribute amounts to address the State's worker 
            readjustment assistance needs.
            (ii) Information

                The information described in clause (i) shall include 
            insured unemployment data, unemployment concentrations, 
            plant closing and mass layoff data, declining industries 
            data, farmer-rancher economic hardship data, and long-term 
            unemployment data.

        (C) Application

            For purposes of carrying out subparagraph (A)--
                (i) references in section 2862(b) of this title to a 
            State shall be deemed to be references to a local area;
                (ii) references in section 2862(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 2862(b)(1) of this title to the term ``excess 
            number'' shall be considered to be references to the term as 
            defined in section 2862(b)(1) of this title.

     (3) Adult employment and training discretionary allocations

        In lieu of making the allocation described in paragraph (2)(A), 
    in allocating the funds described in paragraph (1)(A) 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 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) Transfer authority

        A local board may transfer, if such a transfer is approved by 
    the Governor, not more than 20 percent of the funds allocated to the 
    local area under paragraph (2)(A) or (3), and 20 percent of the 
    funds allocated to the local area under paragraph (2)(B), for a 
    fiscal year between--
            (A) adult employment and training activities; and
            (B) dislocated worker employment and training activities.

                           (5) Allocation

        (A) In general

            The Governor of the State shall allocate the funds described 
        in paragraph (1) to local areas under paragraphs (2) and (3) for 
        the purpose of providing a single system of employment and 
        training activities for adults and dislocated workers in 
        accordance with subsections (d) and (e) of section 2864 of this 
        title.

        (B) Additional requirements

            (i) Adults

                Funds allocated under paragraph (2)(A) or (3) shall be 
            used by a local area to contribute proportionately to the 
            costs of the one-stop delivery system described in section 
            2864(c) of this title in the local area, and to pay for 
            employment and training activities provided to adults in the 
            local area, consistent with section 2864 of this title.
            (ii) Dislocated workers

                Funds allocated under paragraph (2)(B) shall be used by 
            a local area to contribute proportionately to the costs of 
            the one-stop delivery system described in section 2864(c) of 
            this title in the local area, and to pay for employment and 
            training activities provided to dislocated workers in the 
            local area, consistent with section 2864 of this title.

(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 
    adult employment and training 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. 133, Aug. 7, 1998, 112 Stat. 987.)

                  Section Referred to in Other Sections

    This section is referred to in sections 2821, 2822, 2832, 2842, 
2853, 2854, 2864, 2916, 2918, 2932 of this title.
