29 U.S.C. § 3173 — Within State allocations

Page 881 TITLE 29—LABOR § 3173 Editorial Notes REFERENCES IN TEXT The Workforce Investment Act of 1998, referred to in subsec. (c)(1), is Pub. L. 105–220, Aug. 7, 1998, 112 Stat. 936, and was repealed by Pub. L. 113–128, title V, §§ 506, 511(a), July 22, 2014, 128 Stat. 1703, 1705, effective July 1, 2015. Pursuant to section 3361(a) of this title, references to a provision of the Workforce Investment Act of 1998 are deemed to refer to the corresponding provision of the Workforce Innovation and Opportunity Act, Pub. L. 113–128, July 22, 2014, 128 Stat. 1425. For complete classi- fication of the Workforce Investment Act of 1998 to the Code, see Tables. For complete classification of the Workforce Innovation and Opportunity Act to the Code, see Short Title note set out under section 3101 of this title and Tables. AMENDMENTS 2015—Subsec. (b)(1)(B)(iv)(I), (2)(B)(iii)(I). Pub. L. 114–18 inserted ‘‘less than’’ after ‘‘fiscal year that is’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2015 AMENDMENT Amendment by Pub. L. 114–18 effective as if included in the Workforce Innovation and Opportunity Act [Pub. L. 113–128], see § 2(f) of Pub. L. 114–18, set out as a note under section 3112 of this title. EFFECTIVE DATE Section effective on the first day of the first full pro- gram year after July 22, 2014 (July 1, 2015), see section 506 of Pub. L. 113–128, set out as a note under section 3101 of this title. § 3173. Within State allocations (a) Reservations for State activities (1) Statewide workforce investment activities The Governor shall make the reservation re- quired under section 3163(a) of this title. (2) Statewide rapid response activities The Governor shall reserve not more than 25 percent of the total amount allotted to the State under section 3172(b)(2)(B) of this title for a fiscal year for statewide rapid response activities described in section 3174(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 and local boards 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 activi- ties under section 3172(b)(1)(B) of this title and are not reserved under subsection (a)(1), in accordance with paragraph (2) or (3); and (B) the funds that are allotted to the State for dislocated worker employment and train- ing activities and statewide workforce in- vestment activities under section 3172(b)(2)(B) of this title and are not reserved under paragraph (1) or (2) of subsection (a), in accordance with paragraph (2). (2) Formula allocations (A) Adult employment and training activities (i) Allocation In allocating the funds described in para- graph (1)(A) to local areas, a State may al- locate— (I) 331⁄3 percent of the funds on the basis described in section 3172(b)(1)(B)(ii)(I) of this title; (II) 331⁄3 percent of the funds on the basis described in section 3172(b)(1)(B)(ii)(II) of this title; and (III) 331⁄3 percent of the funds on the basis described in clauses (ii)(III) and (iii) of section 3172(b)(1)(B) of this title. (ii) Minimum percentage The local area shall not receive an allo- cation percentage for a fiscal year that is less than 90 percent of the average alloca- tion 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 sen- tence shall be obtained by ratably reduc- ing the allocations to be made to other local areas under this subparagraph. (iii) Definition In this subparagraph, the term ‘‘alloca- tion percentage’’, used with respect to fis- cal year 2015 or a subsequent fiscal year, means a percentage of the funds referred to in clause (i), received through an alloca- tion made under this subparagraph, for the fiscal year. The term, used with respect to fiscal year 2013 or 2014, means a percentage of the amount allocated to local areas under paragraphs (2)(A) and (3) of section 133(b) of the Workforce Investment Act of 1998 [29 U.S.C. 2863(b)] (as in effect on the day before July 22, 2014), received through an allocation made under paragraph (2)(A) or (3) of that section for fiscal year 2013 or 2014, respectively. (B) Dislocated worker employment and train- ing activities (i) Allocation In allocating the funds described in para- graph (1)(B) to local areas, a State shall al- locate 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 avail- able to the Governor to distribute amounts to address the State’s worker readjust- ment assistance needs. (ii) Information The information described in clause (i) shall include insured unemployment data, unemployment concentrations, plant clos- ing and mass layoff data, declining indus- tries data, farmer-rancher economic hard- ship data, and long-term unemployment data. (iii) Minimum percentage The local area shall not receive an allo- cation percentage for fiscal year 2016 or a subsequent fiscal year that is less than 90 percent of the average allocation percent- age of the local area for the 2 preceding fiscal years. Amounts necessary for in- creasing such allocations to local areas to Page 882 TITLE 29—LABOR § 3173 comply with the preceding sentence shall be obtained by ratably reducing the alloca- tions to be made to other local areas under this subparagraph. (iv) Definition In this subparagraph, the term ‘‘alloca- tion percentage’’, used with respect to fis- cal year 2015 or a subsequent fiscal year, means a percentage of the funds referred to in clause (i), received through an alloca- tion made under this subparagraph for the fiscal year. The term, used with respect to fiscal year 2014, means a percentage of the amount allocated to local areas under sec- tion 133(b)(2)(B) of the Workforce Invest- ment Act of 1998 [29 U.S.C. 2863(b)(2)(B)] (as in effect on the day before July 22, 2014), received through an allocation made under that section for fiscal year 2014. (C) Application For purposes of carrying out subparagraph (A)— (i) references in section 3172(b) of this title to a State shall be deemed to be ref- erences to a local area; (ii) references in section 3172(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), ref- erences in section 3172(b)(1) of this title to the term ‘‘excess number’’ shall be consid- ered to be references to the term as de- fined in section 3172(b)(1) of this title. (3) Adult employment and training discre- tionary allocations In lieu of making the allocation described in paragraph (2)(A), in allocating the funds de- scribed in paragraph (1)(A) to local areas, a State may distribute— (A) a portion equal to not less than 70 per- cent of the funds in accordance with para- graph (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 subur- ban 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 trans- fer is approved by the Governor, up to and in- cluding 100 percent of the funds allocated to the local area under paragraph (2)(A) or (3), and up to and including 100 percent of the funds allocated to the local area under para- graph (2)(B), for a fiscal year between— (A) adult employment and training activi- ties; and (B) dislocated worker employment and training activities. (5) Allocation (A) In general The Governor shall allocate the funds de- scribed in paragraph (1) to local areas under paragraphs (2) and (3) for the purpose of pro- viding a single system of employment and training activities for adults and dislocated workers in accordance with subsections (c) and (d) of section 3174 of this title. (B) Additional requirements (i) Adults Funds allocated under paragraph (2)(A) or (3) shall be used by a local area to con- tribute to the costs of the one-stop deliv- ery system described in section 3151(e) of this title as determined under section 3151(h) of this title and to pay for employ- ment and training activities provided to adults in the local area, consistent with section 3174 of this title. (ii) Dislocated workers Funds allocated under paragraph (2)(B) shall be used by a local area to contribute to the costs of the one-stop delivery sys- tem described in section 3151(e) of this title as determined under section 3151(h) of this title and to pay for employment and training activities provided to dislocated workers in the local area, consistent with section 3174 of this title. (c) Reallocation among local areas (1) In general The Governor may, in accordance with this subsection and after consultation with the State board, reallocate to eligible local areas within the State amounts that are made avail- able to local areas from allocations made under paragraph (2)(A) or (3) of subsection (b) or a corresponding provision of the Workforce Investment Act of 1998 for adult employment and training activities, or under subsection (b)(2)(B) or a corresponding provision of the Workforce Investment Act of 1998 for dis- located worker employment and training ac- tivities (referred to individually in this sub- section as a ‘‘local allocation’’) and that are available for reallocation. (2) Amount The amount available for reallocation for a program year— (A) for adult employment and training ac- tivities is equal to the amount by which the unobligated balance of the local allocation under paragraph (2)(A) or (3) of subsection (b) for such activities, at the end of the pro- gram year prior to the program year for which the determination under this subpara- graph is made, exceeds 20 percent of such al- location for the prior program year; and (B) for dislocated worker employment and training activities is equal to the amount by which the unobligated balance of the local allocation under subsection (b)(2)(B) for such activities, at the end of the program year prior to the program year for which the de- termination under this subparagraph is made, exceeds 20 percent of such allocation for the prior program year. Page 883 TITLE 29—LABOR § 3174 (3) Reallocation In making reallocations to eligible local areas of amounts available pursuant to para- graph (2) for a program year, the Governor shall allocate to each eligible local area with- in the State— (A) with respect to such available amounts that were allocated under paragraph (2)(A) or (3) of subsection (b), an amount based on the relative amount of the local allocation under paragraph (2)(A) or (3) of subsection (b), as appropriate, for the program year for which the determination is made, as com- pared to the total amount of the local allo- cations under paragraph (2)(A) or (3) of sub- section (b), as appropriate, for all eligible local areas in the State for such program year; and (B) with respect to such available amounts that were allocated under subsection (b)(2)(B), an amount based on the relative amount of the local allocation under sub- section (b)(2)(B) for the program year for which the determination is made, as com- pared to the total amount of the local allo- cations under subsection (b)(2)(B) for all eli- gible local areas in the State for such pro- gram year. (4) Eligibility For purposes of this subsection, an eligible local area means— (A) with respect to funds allocated through a local allocation for adult employment and training activities, a local area that does not have an amount of such funds available for reallocation under paragraph (2) for the program year for which the determination under paragraph (2) is made; and (B) with respect to funds allocated through a local allocation for dislocated worker em- ployment and training activities, a local area that does not have an amount of such funds available for reallocation under para- graph (2) for the program year for which the determination under paragraph (2) is made. (Pub. L. 113–128, title I, § 133, July 22, 2014, 128 Stat. 1516.) Editorial Notes REFERENCES IN TEXT The Workforce Investment Act of 1998, referred to in subsec. (c)(1), is Pub. L. 105–220, Aug. 7, 1998, 112 Stat. 936, and was repealed by Pub. L. 113–128, title V, §§ 506, 511(a), July 22, 2014, 128 Stat. 1703, 1705, effective July 1, 2015. Pursuant to section 3361(a) of this title, references to a provision of the Workforce Investment Act of 1998 are deemed to refer to the corresponding provision of the Workforce Innovation and Opportunity Act, Pub. L. 113–128, July 22, 2014, 128 Stat. 1425. For complete classi- fication of the Workforce Investment Act of 1998 to the Code, see Tables. For complete classification of the Workforce Innovation and Opportunity Act to the Code, see Short Title note set out under section 3101 of this title and Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the first day of the first full pro- gram year after July 22, 2014 (July 1, 2015), see section 506 of Pub. L. 113–128, set out as a note under section 3101 of this title. § 3174. Use of funds for employment and training activities (a) Statewide employment and training activities (1) In general Funds reserved by a Governor— (A) as described in section 3173(a)(2) of this title shall be used to carry out the statewide rapid response activities described in para- graph (2)(A); and (B) as described in sections 3163(a) and 3173(a)(1) of this title— (i) shall be used to carry out the state- wide employment and training activities described in paragraph (2)(B); and (ii) may be used to carry out any of the statewide employment and training activi- ties described in paragraph (3), regardless of whether the funds were allot- ted to the State under section 3162(b)(1) of this title or under paragraph (1) or (2) of sec- tion 3172(b) of this title. (2) Required statewide employment and train- ing activities (A) Statewide rapid response activities (i) In general A State shall carry out statewide rapid response activities using funds reserved by the Governor for the State under section 3173(a)(2) of this title, which activities shall include— (I) provision of rapid response activi- ties, carried out in local areas by the State or by an entity designated by the State, working in conjunction with the local boards and the chief elected offi- cials for the local areas; and (II) provision of additional assistance to local areas that experience disasters, mass layoffs, or plant closings, or other events that precipitate substantial in- creases in the number of unemployed in- dividuals, carried out in local areas by the State, working in conjunction with the local boards and the chief elected of- ficials for the local areas. (ii) Use of unobligated funds Funds reserved by a Governor under sec- tion 3173(a)(2) of this title, and section 2863(a)(2) of this title (as in effect on the day before July 22, 2014), to carry out this subparagraph that remain unobligated after the first program year for which such funds were allotted may be used by the Governor to carry out statewide activities authorized under subparagraph (B) or para- graph (3)(A), in addition to activities under this subparagraph. (B) Statewide employment and training ac- tivities Funds reserved by a Governor under sec- tions 3163(a)(1) and 3173(a)(1) of this title and not used under paragraph (1)(A) (regardless of whether the funds were allotted to the States under section 3162(b)(1)(C) of this title