29 U.S.C. § 3162 — State allotments

Page 863 TITLE 29—LABOR § 3162 (2) Collection and dissemination of information A one-stop operator in a local area shall col- lect such performance information from pro- viders of on-the-job training, customized training, incumbent worker training, intern- ships, paid or unpaid work experience opportu- nities, and transitional employment as the Governor may require, and use the informa- tion to determine whether the providers meet such performance criteria as the Governor may require. The one-stop operator shall dis- seminate information identifying such pro- viders that meet the criteria as eligible pro- viders, and the performance information, through the one-stop delivery system. Pro- viders determined to meet the criteria shall be considered to be identified as eligible pro- viders of training services. (i) Transition period for implementation The Governor and local boards shall imple- ment the requirements of this section not later than 12 months after July 22, 2014. In order to fa- cilitate early implementation of this section, the Governor may establish transition proce- dures under which providers eligible to provide training services under chapter 5 of subtitle B of title I of the Workforce Investment Act of 1998 [29 U.S.C. 2861 et seq.], as such chapter was in ef- fect on the day before July 22, 2014, may con- tinue to be eligible to provide such services until December 31, 2015, or until such earlier date as the Governor determines to be appro- priate. (Pub. L. 113–128, title I, § 122, July 22, 2014, 128 Stat. 1492.) Editorial Notes REFERENCES IN TEXT The National Apprenticeship Act, referred to in sub- sec. (a)(2)(B), is act Aug. 16, 1937, ch. 663, 50 Stat. 664, which is classified generally to chapter 4C (§ 50 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 50 of this title and Tables. The Workforce Investment Act of 1998, referred to in subsecs. (f)(1)(B), (C), and (i), 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 L. 105–220, Aug. 7, 1998, 112 Stat. 936, and was repealed by Pub.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, ef- fective July 1, 2015. Title I of the Act was classified principally to chapter 30 (§ 2801 et seq.) of this title. Chapter 5 of subtitle B of title I of the Act was classi- fied generally to part E (§ 2861 et seq.) of subchapter II of chapter 30 of this title. For complete classification of this Act to the Code, see 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. § 3153. Eligible providers of youth workforce in- vestment activities (a) In general From the funds allocated under section 3163(b) of this title to a local area, the local board for such area shall award grants or contracts on a competitive basis to providers of youth work- force investment activities identified based on the criteria in the State plan (including such quality criteria as the Governor shall establish for a training program that leads to a recog- nized postsecondary credential), and taking into consideration the ability of the providers to meet performance accountability measures based on primary indicators of performance for the youth program as described in section 3141(b)(2)(A)(ii) of this title, as described in sec- tion 3112(b)(2)(D)(i)(V) of this title, and shall conduct oversight with respect to such pro- viders. (b) Exceptions A local board may award grants or contracts on a sole-source basis if such board determines there is an insufficient number of eligible pro- viders of youth workforce investment activities in the local area involved (such as a rural area) for grants and contracts to be awarded on a competitive basis under subsection (a). (Pub. L. 113–128, title I, § 123, July 22, 2014, 128 Stat. 1498.) 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. SUBPART 2—YOUTH WORKFORCE INVESTMENT ACTIVITIES § 3161. General authorization The Secretary shall make an allotment under section 3162(b)(1)(C) of this title to each State that meets the requirements of section 3112 or 3113 of this title and a grant under section 3162(b)(1)(B) of this title to each outlying area that complies with the requirements of this sub- chapter, to assist the State or outlying area, and to enable the State or outlying area to as- sist local areas, for the purpose of providing workforce investment activities for eligible youth in the State or outlying area and in the local areas. (Pub. L. 113–128, title I, § 126, July 22, 2014, 128 Stat. 1498.) 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. § 3162. State allotments (a) In general The Secretary shall— (1) for each fiscal year for which the amount appropriated under section 3181(a) of this title exceeds $925,000,000, reserve 4 percent of the ex- cess amount to provide youth workforce in- vestment activities under section 3222 of this title (relating to migrant and seasonal farm- workers); and (2) use the remainder of the amount appro- priated under section 3181(a) of this title for a Page 864 TITLE 29—LABOR § 3162 fiscal year to make allotments and grants in accordance with subsection (b). (b) Allotment among States (1) Youth workforce investment activities (A) Native Americans From the amount appropriated under sec- tion 3181(a) of this title for a fiscal year that is not reserved under subsection (a)(1), the Secretary shall reserve not more than 11⁄2 percent of such amount to provide youth workforce investment activities under sec- tion 3221 of this title (relating to Native Americans). (B) Outlying areas (i) In general From the amount appropriated under section 3181(a) of this title for each fiscal year that is not reserved under subsection (a)(1) and subparagraph (A), the Secretary shall reserve not more than 1⁄4 of 1 percent of such amount to provide assistance to the outlying areas to carry out youth workforce investment activities and state- wide workforce investment activities. (ii) Limitation for outlying areas (I) Competitive grants The Secretary shall use funds reserved under clause (i) to award grants to out- lying areas to carry out youth workforce investment activities and statewide workforce investment activities. (II) Award basis The Secretary shall award grants pur- suant to subclause (I) on a competitive basis and pursuant to the recommenda- tions of experts in the field of employ- ment and training, working through the Pacific Region Educational Laboratory in Honolulu, Hawaii. (III) Administrative costs The Secretary may provide not more than 5 percent of the funds made avail- able for grants under subclause (I) to pay the administrative costs of the Pacific Region Educational Laboratory in Hono- lulu, Hawaii, regarding activities as- sisted under this clause. (iii) Additional requirement The provisions of section 1469a of title 48, permitting the consolidation of grants by the outlying areas, shall not apply to as- sistance provided to those areas, including Palau, under this subparagraph. (C) States (i) In general From the remainder of the amount ap- propriated under section 3181(a) of this title for a fiscal year that exists after the Secretary determines the amounts to be reserved under subsection (a)(1) and sub- paragraphs (A) and (B), the Secretary shall make allotments to the States in accord- ance with clause (ii) for youth workforce investment activities and statewide work- force investment activities. (ii) Formula Subject to clauses (iii) and (iv), of the re- mainder— (I) 331⁄3 percent shall be allotted on the basis of the relative number of unem- ployed individuals in areas of substantial unemployment in each State, compared to the total number of unemployed indi- viduals in areas of substantial unem- ployment in all States; (II) 331⁄3 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) 331⁄3 percent shall be allotted on the basis of the relative number of dis- advantaged youth in each State, com- pared to the total number of disadvan- taged youth in all States, except as de- scribed in clause (iii). (iii) Calculation In determining an allotment under clause (ii)(III) for any State in which there is an area that was designated as a local area as described in section 3122(c)(1)(C) of this title, the allotment shall be based on the higher of— (I) the number of individuals who are age 16 through 21 in families with an in- come below the low-income level in such area; or (II) the number of disadvantaged youth in such area. (iv) Minimum and maximum percentages and minimum allotments In making allotments under this sub- paragraph, the Secretary shall ensure the following: (I) Minimum percentage and allotment Subject to subclause (IV), the Sec- retary 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 allotments of the State under section 127(b)(1)(C) of the Workforce Investment Act of 1998 [29 U.S.C. 2852(b)(1)(C)] (as in effect on the day before July 22, 2014) for fiscal year 2014. (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 $1,000,000,000 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 $1,000,000,000, 2⁄5 of 1 percent of the ex- cess. Page 865 TITLE 29—LABOR § 3162 (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 al- lotment percentage of the State for the preceding fiscal year. (IV) Minimum funding In any fiscal year in which the remain- der described in clause (i) does not ex- ceed $1,000,000,000, the minimum allot- ments under subclauses (I) and (II) shall be calculated by the methodology speci- fied in section 127(b)(1)(C)(iv)(IV) of the Workforce Investment Act of 1998 [29 U.S.C. 2852(b)(1)(C)(iv)(IV)] (as in effect on the day before July 22, 2014). (2) Definitions For the purpose of the formula specified in paragraph (1)(C): (A) Allotment percentage The term ‘‘allotment percentage’’, used with respect to fiscal year 2015 or a subse- quent fiscal year, means a percentage of the remainder described in paragraph (1)(C)(i) that is received through an allotment made under paragraph (1)(C) for the fiscal year. The term, used with respect to fiscal year 2014, means the percentage of the amount al- lotted to States under section 127(b)(1)(C) of the Workforce Investment Act of 1998 [29 U.S.C. 2852(b)(1)(C)] (as in effect on the day before July 22, 2014) that is received under such section by the State involved for fiscal year 2014. (B) Area of substantial unemployment The term ‘‘area of substantial unemploy- ment’’ means any area that is of sufficient size and scope to sustain a program of work- force investment activities carried out under this part and that has an average rate of un- employment of at least 6.5 percent for the most recent 12 months, as determined by the Secretary. For purposes of this subpara- graph, determinations of areas of substan- tial unemployment shall be made once each fiscal year. (C) Disadvantaged youth Subject to paragraph (3), the term ‘‘dis- advantaged youth’’ means an individual who is age 16 through 21 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— (i) the poverty line; or (ii) 70 percent of the lower living stand- ard income level. (D) Excess number The term ‘‘excess number’’ means, used with respect to the excess number of unem- ployed individuals within a State, the higher of— (i) the number that represents the num- ber of unemployed individuals in excess of 4.5 percent of the civilian labor force in the State; or (ii) the number that represents the num- ber of unemployed individuals in excess of 4.5 percent of the civilian labor force in areas of substantial unemployment in such State. (E) 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 Con- sumer Price Index for 1969, rounded to the nearest $1,000. (3) Special rule For the purpose of the formula specified in paragraph (1)(C), the Secretary shall, as appro- priate and to the extent practicable, exclude college students and members of the Armed Forces from the determination of the number of disadvantaged youth. (c) Reallotment (1) In general The Secretary shall, in accordance with this subsection, reallot to eligible States amounts that are made available to States from allot- ments made under this section or a cor- responding provision of the Workforce Invest- ment Act of 1998 for youth workforce invest- ment activities and statewide workforce in- vestment activities (referred to individually in this subsection as a ‘‘State allotment’’) 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 allot- ment, at the end of the program year prior to the program year for which the determination under this paragraph is made, exceeds 20 per- cent of such allotment 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 of the State allotment for the program year for which the determination is made, as compared to the total amount of the State allotments for all eligible States for such program year. (4) Eligibility For purposes of this subsection, an eligible State means a State that does not have an amount available for reallotment under para- graph (2) for the program year for which the determination under paragraph (2) is made. (5) Procedures The Governor shall prescribe uniform proce- dures for the obligation of funds by local areas within the State in order to avoid the require- ment that funds be made available for reallot- ment 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 re- quired to make funds available for reallotment under this subsection. Page 866 TITLE 29—LABOR § 3163 (Pub. L. 113–128, title I, § 127, July 22, 2014, 128 Stat. 1498.) 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. § 3163. Within State allocations (a) Reservations for statewide activities (1) In general The Governor shall reserve not more than 15 percent of each of the amounts allotted to the State under section 3162(b)(1)(C) of this title and paragraphs (1)(B) and (2)(B) of section 3172(b) of this title for a fiscal year for state- wide workforce investment activities. (2) Use of funds Regardless of whether the reserved amounts were allotted under section 3162(b)(1)(C) of this title, or under paragraph (1)(B) or (2)(B) of sec- tion 3172(b) of this title, the Governor may use the reserved amounts to carry out statewide activities under section 3164(b) of this title or statewide employment and training activities, for adults or dislocated workers, under section 3174(a) of this title. (b) Within State allocations (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 the funds that are allot- ted to the State for youth activities and state- wide workforce investment activities under section 3162(b)(1)(C) of this title and are not reserved under subsection (a), in accordance with paragraph (2) or (3). (2) Formula allocation (A) Youth activities (i) Allocation In allocating the funds described in para- graph (1) to local areas, a State may allo- cate— (I) 331⁄3 percent of the funds on the basis described in section 3162(b)(1)(C)(ii)(I) of this title; (II) 331⁄3 percent of the funds on the basis described in section 3162(b)(1)(C)(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 3162(b)(1)(C) 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 funds referred to in section 128(b)(1) of the Workforce Investment Act of 1998 [29 U.S.C. 2853(b)(1)] (as in effect on the day before July 22, 2014), received through an allocation made under paragraph (2) or (3) of section 128(b) of the Workforce Invest- ment Act of 1998 (as so in effect), for the fiscal year 2013 or 2014, respectively. (B) Application For purposes of carrying out subparagraph (A)— (i) references in section 3162(b) of this title to a State shall be deemed to be ref- erences to a local area; (ii) references in section 3162(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 3162(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 3162(b)(2) of this title. (3) Youth discretionary allocation In lieu of making the allocation described in paragraph (2), in allocating the funds de- scribed in paragraph (1) 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 youth 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.