§ 730 TITLE 29—LABOR Page 226

1See References in Text note below.

ally to subchapter I (§12111 et seq.) of chapter 126 of

Title 42, The Public Health and Welfare. For complete

classification of this Act to the Code, see Short Title

note set out under section 12101 of Title 42 and Tables.

PART B—BASIC VOCATIONAL REHABILITATION

SERVICES

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in sections 706, 718, 720, 721,

724, 740, 787 of this title.

§ 730. State allotments

(a) Computation; additional amount; minimum

amount; adjustments; additional allotment

(1) Subject to the provisions of subsection (d)

of this section, for each fiscal year beginning before October 1, 1978, each State shall be entitled

to an allotment of an amount bearing the same

ratio to the amount authorized to be appropriated under section 720(b)(1) of this title for allotment under this section as the product of (A)

the population of the State, and (B) the square

of its allotment percentage, bears to the sum of

the corresponding products for all the States.

(2)(A) For each fiscal year beginning on or

after October 1, 1978, each State shall be entitled

to an allotment in an amount equal to the

amount such State received under paragraph (1)

for the fiscal year ending September 30, 1978, and

an additional amount determined pursuant to

subparagraph (B) of this paragraph.

(B) For each fiscal year beginning on or after

October 1, 1978, each State shall be entitled to

an allotment, from any amount authorized to be

appropriated for such fiscal year under section

720(b)(1)(A) 1 of this title for allotment under

this section in excess of the amount appropriated under section 720(b)(1)(A) 1 of this title

for the fiscal year ending September 30, 1978, in

an amount equal to the sum of—

(i) an amount bearing the same ratio to 50 percent of such excess amount as the product of the

population of the State and the square of its allotment percentage bears to the sum of the corresponding products for all the States; and

(ii) an amount bearing the same ratio to 50

percent of such excess amount as the product of

the population of the State and its allotment

percentage bears to the sum of the corresponding products for all the States.

(3) The sum of the payment to any State

(other than Guam, American Samoa, the Virgin

Islands, the Northern Mariana Islands, and the

Republic of Palau) under this subsection for any

fiscal year which is less than one-third of 1 percent of the amount appropriated under section

720(b)(1)(A) 1 of this title, or $3,000,000, whichever

is greater, shall be increased to that amount,

the total of the increases thereby required being

derived by proportionately reducing the allotment to each of the remaining such States

under this subsection, but with such adjustments as may be necessary to prevent the sum

of the allotments made under this subsection to

any such remaining State from being thereby

reduced to less than that amount.

(4) For each fiscal year beginning on or after

October 1, 1984, for which any amount is appropriated pursuant to section 720(b)(1)(B) 1 of this

title, each State shall receive an allocation

(from such appropriated amount) in addition to

the allotment to which such State is entitled

under paragraphs (2) and (3) of this subsection.

Such additional allocation shall be an amount

which bears the same ratio to the amount so appropriated as that State’s allotment under paragraphs (2) and (3) of this subsection bears to the

sum of such allotments of all the States.

(5) The Republic of Palau may receive allotments or allocations under this section only

until the Compact of Free Association with

Palau takes effect.

(b) Additional payments; authorization of additional appropriations

(1) If the payment to a State under section

731(a) of this title for a fiscal year is less than

the total payments such State received under

section 2 of the Vocational Rehabilitation Act

for the fiscal year ending June 30, 1973, such

State shall be entitled to an additional payment

(subject to the same terms and conditions applicable to other payments under this part) equal

to the difference between such payment under

section 731(a) of this title and the amount so received by it.

(2) If a State receives as its Federal share

under section 731(a) of this title for any fiscal

year less than the applicable Federal share of

the expenditure of such State for fiscal year 1972

for vocational rehabilitation services under the

plan for such State approved under section 721 of

this title (including any amount expended by

such State for the administration of the State

plan but excluding any amount expended by

such State from non-Federal sources for construction under such plan), such State shall be

entitled to an additional payment for such fiscal

year, subject to the same terms and conditions

applicable to other payments under this part,

equal to the difference between such payment

under section 731(a) of this title and an amount

equal to the applicable Federal share of such expenditure for vocational rehabilitation services.

(3) Any payment attributable to the additional

payment to a State under this subsection shall

be made only from appropriations specifically

made to carry out this subsection, and such additional appropriations are hereby authorized.

(c) Unused funds; redistribution; increase in

amount

(1) Not later than forty-five days prior to the

end of the fiscal year, the Commissioner shall

determine, after reasonable opportunity for the

submission to the Commissioner of comments

by the State agency administering or supervising the program established under this subchapter, that any payment of an allotment to a

State under section 731(a) of this title for any

fiscal year will not be utilized by such State in

carrying out the purposes of this subchapter.

(2) As soon as practicable but not later than

the end of the fiscal year, the Commissioner

shall make such amount available for carrying

out the purposes of this subchapter to one or

more other States to the extent the Commissioner determines that such other State will be

able to use such additional amount during that

fiscal year or the subsequent fiscal year for car-
Page 227 TITLE 29—LABOR § 730

rying out such purposes. The Commissioner

shall make such amount available only if such

other State will be able to make sufficient payments from non-Federal sources to pay for the

non-Federal share of the cost of vocational rehabilitation services under the State plan for the

fiscal year for which the amount was appropriated.

(3) For the purposes of this part, any amount

made available to a State for any fiscal year

pursuant to this subsection shall be regarded as

an increase of such State’s allotment (as determined under the preceding provisions of this

section) for such year.

(d) Funds for American Indian vocational rehabilitation services

(1) For fiscal year 1987 and for each subsequent

fiscal year, the Commissioner shall reserve from

the amount appropriated under section 720(b)(1)

of this title for allotment under this section a

sum, determined under paragraph (2), to carry

out the purposes of part D of this subchapter.

(2) The sum referred to in paragraph (1) shall

be, as determined by the Secretary—

(A) not less than one-third of one percent

and not more than 1.5 percent of the amount

under paragraph (1), for fiscal years 1993 and

1994; and

(B) not less than one-half of one percent and

not more than 1.5 percent of the amount under

paragraph (1), for fiscal years 1995, 1996, and

1997.

(Pub. L. 93–112, title I, §110, Sept. 26, 1973, 87

Stat. 370; Pub. L. 95–602, title I, §§101(c), (d),

122(b)(1), Nov. 6, 1978, 92 Stat. 2956, 2957, 2987;

Pub. L. 98–221, title I, §111(e), Feb. 22, 1984, 98

Stat. 20; Pub. L. 99–506, title I, §103(c)(2), title II,

§§206, 207, Oct. 21, 1986, 100 Stat. 1810, 1817, 1818;

Pub. L. 102–569, title I, §131, Oct. 29, 1992, 106

Stat. 4389; Pub. L. 103–73, title I, §107(e), Aug. 11,

1993, 107 Stat. 723.)

REFERENCES IN TEXT

Section 720(b)(1) of this title, referred to in subsec.

(a)(2)(B), (3), (4), was amended generally by Pub. L.

102–569, title I, §121(b)(1), Oct. 29, 1992, 106 Stat. 4367,

and, as so amended, no longer contains subpars. (A) and

(B).

For Oct. 1, 1994, as the date the Compact of Free Association with Palau takes effect, referred to in subsec.

(a)(5), see Proc. No. 6726, Sept. 27, 1994, 59 F.R. 49777, set

out as a note under section 1931 of Title 48, Territories

and Insular Possessions.

Section 2 of the Vocational Rehabilitation Act, referred to in subsec. (b)(1), is section 2 of act June 2,

1920, ch. 219, 41 Stat. 735, as amended, which provided

for grants to States for vocational rehabilitation services, including computation of allotments, amount of

payments, adjusted Federal shares, and private contributions for construction or establishment of facilities, and which was classified to section 32 of this title.

Section 32 was repealed by section 500(a) of Pub. L.

93–112, effective 90 days after Sept. 26, 1973, and is covered by this section and sections 724 and 731 of this

title.

PRIOR PROVISIONS

Prior similar provisions were contained in former

sections 32 and 42–1 of this title.

AMENDMENTS

1993—Subsec. (c)(2). Pub. L. 103–73, §107(e)(1), struck

out ‘‘to pay for initial expenditures during’’ before ‘‘the

subsequent fiscal year’’ in first sentence, and inserted

at end: ‘‘The Commissioner shall make such amount

available only if such other State will be able to make

sufficient payments from non-Federal sources to pay

for the non-Federal share of the cost of vocational rehabilitation services under the State plan for the fiscal

year for which the amount was appropriated.’’

Subsec. (c)(4). Pub. L. 103–73, §107(e)(2), struck out

par. (4) which read as follows: ‘‘If the Commissioner determines, under paragraph (1), that any payment of an

allotment to a State under section 731(a) of this title

for any fiscal year will not be utilized by such State in

carrying out the purposes of this subchapter, the payment shall remain available for reallotment to other

States until reallotted.’’

1992—Subsec. (a)(3). Pub. L. 102–569, §131(a)(1), substituted ‘‘and the Republic of Palau’’ for ‘‘and the

Trust Territory of the Pacific Islands’’.

Subsec. (a)(5). Pub. L. 102–569, §131(a)(2), added par.

(5).

Subsec. (c)(4). Pub. L. 102–569, §131(b), added par. (4).

Subsec. (d)(2). Pub. L. 102–569, §131(c), added par. (2)

and struck out former par. (2) which read as follows:

‘‘For any fiscal year the sum shall be not less than 1

⁄4

of one percent and not more than one percent of the

amount under paragraph (1), as determined by the Secretary.’’

1986—Subsec. (a)(1). Pub. L. 99–506, §207(1), inserted

qualification relating to subsec. (d) of this section.

Subsec. (b)(2). Pub. L. 99–506, §206(a), struck out ‘‘, as

a result of the maintenance of effort provisions of such

section,’’ after ‘‘for any fiscal year’’ and inserted ‘‘for

fiscal year 1972’’ after ‘‘such State’’.

Pub. L. 99–506, §103(c)(2), substituted ‘‘the applicable

Federal share’’ for ‘‘80 percent’’ in two places.

Subsec. (c). Pub. L. 99–506, §206(b), amended subsec.

(c) generally. Prior to amendment, subsec. (c) read as

follows: ‘‘Whenever the Commissioner determines, after

reasonable opportunity for the submission to him of

comments by the State agency administering or supervising the program established under this subchapter

that any payment of an allotment to a State under section 731(a) of this title for any fiscal year will not be

utilized by such State in carrying out the purposes of

this subchapter, he shall make such amount available

for carrying out the purposes of this subchapter to one

or more other States to the extent he determines such

other State will be able to use such additional amount

during such year for carrying out such purposes. Any

amount made available to a State for any fiscal year

pursuant to the preceding sentence shall, for the purposes of this part, be regarded as an increase of such

State’s allotment (as determined under the preceding

provisions of this section) for such year.’’

Subsec. (d). Pub. L. 99–506, §207(2), added subsec. (d).

1984—Subsec. (a)(2)(B), (3). Pub. L. 98–221, §111(e)(1),

substituted ‘‘section 720(b)(1)(A)’’ for ‘‘section 720(b)(1)’’

wherever appearing.

Subsec. (a)(4). Pub. L. 98–221, §111(e)(2), added par. (4).

1978—Subsec. (a). Pub. L. 95–602, §101(c), substituted

provision establishing a computation formula for State

allotments for fiscal years beginning before Oct. 1, 1978,

and for fiscal years beginning on or after Oct. 1, 1978,

for provision establishing a computation formula for

each fiscal year, inserted a provision establishing a formula for additional amounts, excluded the Northern

Mariana Islands from consideration for adjustments,

and increased minimum amount of adjustment to

$3,000,000.

Subsec. (b). Pub. L. 95–602, §101(d), designated existing provision as par. (1), struck out provision requiring

payments attributable to the additional payment under

this subsection to be made only from appropriations

specifically made to carry out this subsection and such

additional appropriations as authorized, and added

pars. (2) and (3).

Subsec. (c). Pub. L. 95–602, §122(b)(1), substituted

‘‘Commissioner’’ for ‘‘Secretary’’.
§ 731 TITLE 29—LABOR Page 228

1So in original. The comma probably should not appear.

EFFECTIVE DATE OF 1986 AMENDMENT

Section 103(c)(2) of Pub. L. 99–506 provided that the

amendment made by that section is effective Oct. 1,

1988.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 707, 721, 725, 728,

731, 750, 795p, 797a of this title; title 42 section 1396n.

§ 731. Payments to States

(a) Amount

(1) Except as provided in paragraph (2), from

each State’s allotment under this part for any

fiscal year, the Commissioner shall pay to a

State an amount equal to the Federal share of

the cost of vocational rehabilitation services

under the plan for that State approved under

section 721 of this title, including expenditures

for the administration of the State plan and development and implementation of the strategic

plan as provided in section 721(a)(34)(A) of this

title. Any State that receives such an amount

shall expend, for development and implementation of the strategic plan, not less than the percentage of the allotment of the State referred to

in section 721(a)(34)(B) of this title.

(2)(A) The total of payments under paragraph

(1) to a State for a fiscal year may not exceed its

allotment under subsection (a),1 of section 730 of

this title for such year and such payments shall

not be made in an amount which would result in

a violation of the provisions of the State plan

required by section 721(a)(17) of this title.

(B)(i) For fiscal year 1993, the amount otherwise payable to a State for a fiscal year under

this section shall be reduced by the amount by

which expenditures from non-Federal sources

under the State plan under this subchapter for

the previous fiscal year are less than the average of the total of such expenditures for the 3

fiscal years preceding the previous fiscal year.

(ii) For fiscal year 1994 and each fiscal year

thereafter, the amount otherwise payable to a

State for a fiscal year under this section shall be

reduced by the amount by which expenditures

from non-Federal sources under the State plan

under this subchapter for the previous fiscal

year are less than the total of such expenditures

for the second fiscal year preceding the previous

fiscal year.

(C) The Commissioner may waive or modify

any requirement or limitation under paragraphs

(A) and (B) if the Commissioner determines that

a waiver or modification is an equitable response to exceptional or uncontrollable circumstances affecting the State.

(3)(A) Except as provided in subparagraph (B),

the amount of a payment under this section

with respect to any construction project in any

State shall be equal to the same percentage of

the cost of such project as the Federal share

that is applicable in the case of rehabilitation

facilities (as defined in section 291o(g) of title

42), in such State.

(B) If the Federal share with respect to rehabilitation facilities in such State is determined

pursuant to section 291o(b)(2) of title 42, the percentage of the cost for purposes of this section

shall be determined in accordance with regulations prescribed by the Commissioner designed

to achieve as nearly as practicable results comparable to the results obtained under such section.

(b) Method of computation and payment

The method of computing and paying amounts

pursuant to subsection (a) of this section shall

be as follows:

(1) The Commissioner shall, prior to the beginning of each calendar quarter or other period prescribed by the Commissioner, estimate

the amount to be paid to each State under the

provisions of such subsection for such period,

such estimate to be based on such records of

the State and information furnished by it, and

such other investigation as the Commissioner

may find necessary.

(2) The Commissioner shall pay, from the allotment available therefor, the amount so estimated by the Commissioner for such period,

reduced or increased, as the case may be, by

any sum (not previously adjusted under this

paragraph) by which the Commissioner finds

that the estimate of the amount to be paid the

State for any prior period under such subsection was greater or less than the amount

which should have been paid to the State for

such prior period under such subsection. Such

payment shall be made prior to audit or settlement by the General Accounting Office,

shall be made through the disbursing facilities

of the Treasury Department, and shall be

made in such installments as the Commissioner may determine.

(Pub. L. 93–112, title I, §111, Sept. 26, 1973, 87

Stat. 371; Pub. L. 95–602, title I, §122(b)(1), Nov.

6, 1978, 92 Stat. 2987; Pub. L. 99–506, title II, §208,

title X, §1001(b)(6), Oct. 21, 1986, 100 Stat. 1818,

1842; Pub. L. 100–630, title II, §202(e)(1), (2)(A), (3),

Nov. 7, 1988, 102 Stat. 3306; Pub. L. 102–569, title

I, §132, Oct. 29, 1992, 106 Stat. 4390; Pub. L. 103–73,

title I, §107(f), Aug. 11, 1993, 107 Stat. 723.)

PRIOR PROVISIONS

Prior similar provisions were contained in former

sections 32 and 36 of this title.

AMENDMENTS

1993—Subsec. (b). Pub. L. 103–73 realigned margins of

pars. (1) and (2).

1992—Subsec. (a)(1). Pub. L. 102–569, §132(1), struck

out ‘‘(including any additional payment to it under section 730(b) of this title)’’ after ‘‘for any fiscal year’’ and

substituted ‘‘State plan and development and implementation of the strategic plan as provided in section

721(a)(34)(A) of this title. Any State that receives such

an amount shall expend, for development and implementation of the strategic plan, not less than the percentage of the allotment of the State referred to in section 721(a)(34)(B) of this title.’’ for ‘‘State plan.’’

Subsec. (a)(2)(A). Pub. L. 102–569, §132(2)(A), struck

out ‘‘(and any additional payment under subsection

(b))’’ after ‘‘subsection (a)’’.

Subsec. (a)(2)(B). Pub. L. 102–569, §132(2)(B), amended

subpar. (B) generally. Prior to amendment, subpar. (B)

read as follows: ‘‘For fiscal year 1990 and each fiscal

year thereafter, the amount otherwise payable to a

State for a fiscal year under this section shall be reduced by the amount by which expenditures from nonFederal sources under the State plan under this subchapter for the previous fiscal year are less than the

average of the total of such expenditures for the three

fiscal years preceding that previous fiscal year.’’