Sec. 128. WITHIN STATE ALLOCATIONS

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## SEC. 128 WITHIN STATE ALLOCATIONS **[**[29 U.S.C. 2853](/us/usc/t29/s2853)**]** ###

(a)Reservations for State Activities ####

(1)In general The Governor of a State shall reserve not more than 15 percent of each of the amounts allotted to the State under section 127(b)(1)(C) and paragraphs (1)(B) and (2)(B) of section 132(b) for a fiscal year for statewide workforce investment activities. ####

(2)Use of funds Regardless of whether the reserved amounts were allotted under section 127(b)(1)(C), or under paragraph (1)(B) or (2)(B) of section 132(b), the Governor may use the reserved amounts to carry out statewide youth activities described in section 129(b) or statewide employment and training activities, for adults or for dislocated workers, described in paragraph (2)(B) or

(3)of section 134(a). ###

(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 the funds that are allotted to the State for youth activities and statewide workforce investment activities under section 127(b)(1)(C) 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 paragraph

(1)to local areas, a State may allocate— ######

(I)33⅓ percent of the funds on the basis described in section 127(b)(1)(C)(ii)(I); ######

(II)33⅓ percent of the funds on the basis described in section 127(b)(1)(C)(ii)(II); and ######

(III)33⅓ percent of the funds on the basis described in clauses (ii)(III) and

(iii)of section 127(b)(1)(C). ######

(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 116, 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)Application For purposes of carrying out subparagraph (A)— ######

(i)references in section 127(b) to a State shall be deemed to be references to a local area; ######

(ii)references in section 127(b) 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 127(b)(1) to the term “**excess number**” shall be considered to be references to the term as defined in section 127(b)(2). ####

(3)Youth discretionary allocation In lieu of making the allocation described in paragraph (2)(A), in allocating the funds described in paragraph

(1)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 youth 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)Limitation #####

(A)In general Of the amount allocated to a local area under this subsection and section 133(b) for a fiscal year, not more than 10 percent of the amount may be used by the local board for the administrative cost of carrying out local workforce investment activities described in subsection

(d)or

(e)of section 134 or in section 129(c). #####

(B)Use of funds Funds made available for administrative costs under subparagraph

(A)may be used for the administrative cost of any of the local workforce investment activities described in subsection

(d)or

(e)of section 134 or in section 129(c), regardless of whether the funds were allocated under this subsection or section 133(b). #####

(C)Regulations The Secretary, after consulting with the Governors, shall develop and issue regulations that define the term “**administrative cost**” for purposes of this title. Such definition shall be consistent with generally accepted accounting principles. ###

(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)for youth 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)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) 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) for such activities for such prior program year. For purposes of this paragraph, local areas that received allocations under subsection (b)(2)(A) for the prior program year shall be treated as if the local areas received allocations under subsection (b)(3) 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)for such activities, for the program year prior to the program year for which the determination under paragraph

(2)is made.

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29 USC 2853

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Sec. 128

WITHIN STATE ALLOCATIONS

Cite29 USC 2853

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