29 U.S.C. § 3172 — State allotments

Page 878 TITLE 29—LABOR § 3172 ‘‘(1) on behalf of a veteran who initially applies for a program of job training under this Act after Sep- tember 30, 1989; or ‘‘(2) for any such program which begins after March 31, 1990. ‘‘EXPANSION OF TARGETED DELIMITING DATE EXTENSION ‘‘SEC. 18. (a) Subject to the limitation on the avail- ability of funds set forth in subsection (b), an associate degree program which is predominantly vocational in content may be considered by the Administrator, for the purposes of section 3462(a)(3) of title 38, United States Code, to be a course with an approved vocational objective if such degree program meets the require- ments established in such title for approval of such pro- gram. ‘‘(b) Funds for the purpose of carrying out subsection (a) shall be derived only from amounts appropriated pursuant to the authorizations of appropriations in sec- tion 16. Not more than a total of $25,000,000 of amounts so appropriated for fiscal years 1984 and 1985 shall be available for that purpose. ‘‘EFFECTIVE DATE ‘‘SEC. 19. This Act shall take effect on October 1, 1983.’’ [Amendment of Pub. L. 98–77, set out above, by Pub. L. 100–323 effective on 60th day after May 20, 1988, see section 16(b)(2) of Pub. L. 100–323, set out as a note under section 3104 of Title 38, Veterans’ Benefits.] [Pub. L. 99–238, title II, § 201(f), Jan. 13, 1986, 99 Stat. 1768, provided that: [‘‘(1) Except as provided in paragraph (2), the amend- ments made by this section [amending Pub. L. 98–77 above] shall take effect on the date of the enactment of this Act [Jan. 13, 1986]. [‘‘(2) The amendment made by subsection (e)(2) [amending section 17(a)(1) of Pub. L. 98–77 above] shall take effect on February 1, 1986.’’] COORDINATION WITH PROGRAMS UNDER OTHER LAWS For provisions requiring coordination of programs under section 3116(b) of Title 38, Veterans’ Benefits, with programs under the Veterans’ Job Training Act, Pub. L. 98–77, set out above, see section 202 of Pub. L. 99–238, set out as a note under section 3116 of Title 38. § 3172. State allotments (a) In general The Secretary shall— (1) make allotments and grants from the amount appropriated under section 3181(b) of this title for a fiscal year in accordance with subsection (b)(1); and (2)(A) reserve 20 percent of the amount ap- propriated under section 3181(c) of this title for the fiscal year for use under subsection (b)(2)(A), and under sections 3223(b) (relating to dislocated worker technical assistance), 3224(c) (relating to dislocated worker projects), and 3225 of this title (relating to national dis- located worker grants); and (B) make allotments from 80 percent of the amount appropriated under section 3181(c) of this title for the fiscal year in accordance with subsection (b)(2)(B). (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) for a fiscal year, the Sec- retary shall reserve not more than 1⁄4 of 1 percent of such amount to provide assist- ance to the outlying areas. (ii) Applicability of additional require- ments From the amount reserved under clause (i), the Secretary shall provide assistance to the outlying areas for adult employ- ment and training activities and statewide workforce investment activities in accord- ance with the requirements of section 3162(b)(1)(B) of this title. (B) States (i) In general After determining the amount to be re- served under subparagraph (A), the Sec- retary shall allot the remainder of the amount made available under subsection (a)(1) for that fiscal year to the States pur- suant to clause (ii) for adult employment and training activities and statewide workforce 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 adults in each State, com- pared to the total number of disadvan- taged adults 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 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 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 an amount based on 90 percent of the allotment percentage of the State for the preceding fiscal year. Page 879 TITLE 29—LABOR § 3172 (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 ex- cess. (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 $960,000,000, the minimum allot- ments under subclauses (I) and (II) shall be calculated by the methodology speci- fied in section 132(b)(1)(B)(iv)(IV) of the Workforce Investment Act of 1998 [29 U.S.C. 2862(b)(1)(B)(iv)(IV)] (as in effect on the day before July 22, 2014). (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 2015 or a subsequent fiscal year, means a percent- age 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 2014, means the percentage of the amount allotted to States under section 132(b)(1)(B) of the Workforce In- vestment Act of 1998 [29 U.S.C. 2862(b)(1)(B)] (as in effect on the day be- fore July 22, 2014) that is received under such section by the State involved for fiscal year 2014. (III) Area of substantial unemployment The term ‘‘area of substantial unem- ployment’’ means any area that is of suf- ficient size and scope to sustain a pro- gram of workforce investment activities carried out under this part 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, deter- minations of areas of substantial unem- ployment 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 un- employment in such State. (VII) 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. (2) Dislocated worker employment and train- ing activities (A) Reservation for outlying areas (i) In general From the amount made available under subsection (a)(2)(A) for a fiscal year, the Secretary shall reserve not more than 1⁄4 of 1 percent of the amount appropriated under section 3181(c) of this title for the fiscal year to provide assistance to the outlying areas. (ii) Applicability of additional require- ments 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 3162(b)(1)(B) of this title. (B) States (i) In general The Secretary shall allot the amount re- ferred to in subsection (a)(2)(B) for a fiscal year to the States pursuant to clause (ii) for dislocated worker employment and training activities and statewide work- force investment activities. Page 880 TITLE 29—LABOR § 3172 (ii) Formula Subject to clause (iii), of the amount— (I) 331⁄3 percent shall be allotted on the basis of the relative number of unem- ployed individuals in each State, com- pared to the total number of unemployed individuals 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 indi- viduals in each State who have been un- employed for 15 weeks or more, com- pared to the total number of individuals in all States who have been unemployed for 15 weeks or more. (iii) Minimum and maximum percentages and minimum allotments In making allotments under this sub- paragraph, for fiscal year 2016 and each subsequent fiscal year, the Secretary shall ensure the following: (I) Minimum percentage and allotment The Secretary shall ensure that no State shall receive an allotment for a fiscal year that is less than an amount based on 90 percent of the allotment per- centage of the State for the preceding fiscal year. (II) 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) Definitions For the purpose of the formula specified in this subparagraph: (I) Allotment percentage The term ‘‘allotment percentage’’, used with respect to fiscal year 2015 or a subsequent fiscal year, means a percent- age of the amount described in clause (i) that is received through an allotment made under this subparagraph for the fiscal year. (II) Excess number 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 ex- cess of 4.5 percent of the civilian labor force in the State. (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 employment and training activities and statewide workforce investment activities (referred to individually in this sub- section as a ‘‘State allotment’’) and that are available for reallotment. (2) Amount The amount available for reallotment for a program year for programs funded under sub- section (b)(1)(B) (relating to adult employ- ment and training) or for programs funded under subsection (b)(2)(B) (relating to dis- located worker employment and training) is equal to the amount by which the unobligated balance of the State allotments for adult em- ployment and training activities or dislocated worker employment and training activities, respectively, at the end of the program year prior to the program year for which the deter- mination under this paragraph is made, ex- ceeds 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 of the State allotment under paragraph (1)(B) or (2)(B), respectively, of sub- section (b) for the program year for which the determination is made, as compared to the total amount of the State allotments under paragraph (1)(B) or (2)(B), respectively, of sub- section (b) for all eligible States for such pro- gram year. (4) Eligibility For purposes of this subsection, an eligible State means— (A) with respect to funds allotted through a State allotment for adult employment and training activities, a State that does not have an amount of such funds available for reallotment under paragraph (2) for the pro- gram year for which the determination under paragraph (2) is made; and (B) with respect to funds allotted through a State allotment for dislocated worker em- ployment and training activities, a State that does not have an amount of such funds available for reallotment under paragraph (2) for the program year for which the deter- mination 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. (Pub. L. 113–128, title I, § 132, July 22, 2014, 128 Stat. 1511; Pub. L. 114–18, § 2(d), May 22, 2015, 129 Stat. 213.) 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