§ 1518 TITLE 29—LABOR Page 604

2So in original. Probably should be ‘‘this’’. 1So in original. Probably should be ‘‘part’’.

ices, including child care. In complying with

this subsection, proper consideration shall be

given to community-based organizations as

service providers.

(b) No needless duplication of local facilities or

services

Funds provided under this chapter shall not be

used to duplicate facilities or services available

in the area (with or without reimbursement)

from Federal, State, or local sources, unless it is

demonstrated that alternative services or facilities would be more effective or more likely to

achieve the service delivery area’s performance

goals.

(c) Opportunity for local educational agencies

Appropriate education agencies in the service

delivery area shall be provided the opportunity

to provide educational services, unless the administrative entity demonstrates that alternative agencies or organizations would be more

effective or would have greater potential to enhance the participants’ continued occupational

and career growth.

(d) Skills training program to meet private industry council guidelines

The administrative entity shall not fund any

occupational skills training program unless the

level of skills provided in the program are in accordance with guidelines established by the private industry council.

(e) Additional requirements for selection

The selection of service providers shall be

made on a competitive basis to the extent practicable, and shall include—

(1) a determination of the ability of the service provider to meet program design specifications established by the administrative entity

that take into account the purposes of the 2

chapter and the goals established in the Governor’s coordination and special services plan;

and

(2) documentation of compliance with procurement standards established by the Governor under section 1574 of this title, including

the reasons for selection.

(Pub. L. 97–300, title I, §107, Oct. 13, 1982, 96 Stat.

1335; Pub. L. 102–367, title I, §116, Sept. 7, 1992,

106 Stat. 1034.)

AMENDMENTS

1992—Subsec. (a). Pub. L. 102–367, §116(a), inserted

‘‘, (in accordance with guidelines established by the

Secretary)’’ after ‘‘demonstrated performance’’ and inserted after first sentence ‘‘In addition, consideration

shall be given to demonstrated performance in making

available appropriate supportive services, including

child care.’’

Subsec. (e). Pub. L. 102–367, §116(b), added subsec. (e).

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102–367 effective July 1, 1993,

see section 701(a) of Pub. L. 102–367, set out as an Effective Date of 1992 Amendment; Transition Provisions

note under section 1501 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1514, 1531, 1661b

of this title.

§ 1518. Limitation on certain costs

(a) Application of cost limitations

Except as provided in subparagraph (A) or (B)

of section 1551(d)(3) of this title, funds expended

under this chapter shall be charged to the appropriate cost categories.

(b) Cost categories and limitations

(1) The cost limitations contained in this subsection shall apply separately to the funds allocated for programs under part A of subchapter II

of this chapter, and to the funds allocated for

programs under part C of such subchapter.

(2) Funds expended under parts A and C of subchapter II of this chapter shall be charged to one

of the following categories:

(A) Administration.

(B) Training-related and supportive services.

(C) Direct training services.

(3) The Secretary shall, consistent with sections 1604(b) and 1644(c) of this title, define by

regulation the cost categories specified in paragraph (2).

(4) Of the funds allocated to a service delivery

area for any program year under parts 1 A or C

of subchapter II of this chapter—

(A) not more than 20 percent shall be expended for administration; and

(B) not less than 50 percent shall be expended for direct training services.

(5) Each service delivery area shall ensure that

for all services provided to participants through

contracts, grants, or other agreements with a

service provider, such contract, grant, or agreement shall include appropriate amounts necessary for administration and supportive services.

(6) For purposes of paragraph (4), the term ‘‘allocated’’ means allocated for a program year, as

adjusted for reallocations and reallotments

under section 1519 of this title and for transfers

of funds under sections 1606, 1635, and 1646 of this

title.

(c) Reference to limitations

Funds available under subchapter III of this

chapter shall be expended in accordance with

the limitations specified in section 1661d of this

title.

(d) Limitations inapplicable

The provisions of this section do not apply to

any service delivery area designated pursuant to

section 1511(a)(4)(A)(iii) of this title.

(e) No exemption from performance standards

This section shall not be construed to exempt

programs under an approved plan from the performance standards established under section

1516 of this title.

(Pub. L. 97–300, title I, §108, Oct. 13, 1982, 96 Stat.

1336; Pub. L. 97–404, §1(c), Dec. 31, 1982, 96 Stat.

2026; Pub. L. 99–496, §15(c), Oct. 16, 1986, 100 Stat.

1266; Pub. L. 102–367, title I, §117, Sept. 7, 1992,

106 Stat. 1035.)

AMENDMENTS

1992—Subsec. (a). Pub. L. 102–367, §117(a), amended

subsec. (a) generally. Prior to amendment, subsec. (a)
Page 605 TITLE 29—LABOR § 1519

1So in original. Probably should be ‘‘(c)’’.

read as follows: ‘‘Not more than 15 percent of the funds

available to a service delivery area for any fiscal year

for programs under part A of subchapter II of this chapter may be expended for the cost of administration. For

purposes of this paragraph, costs of program support

(such as counseling) which are directly related to the

provision of education or training and such additional

costs as may be attributable to the development of

training described in section 1604(28) of this title shall

not be counted as part of the cost of administration.’’

Subsec. (b). Pub. L. 102–367, §117(b), amended subsec.

(b) generally. Prior to amendment, subsec. (b) consisted

of pars. (1) to (3) relating to joint limitations on administrative and work experience expenditures.

Subsec. (c). Pub. L. 102–367, §117(c), amended subsec.

(c) generally. Prior to amendment, subsec. (c) consisted

of pars. (1) to (5) relating to exceptions to expenditure

limitations, private industry council requests for special circumstances, and authority of a Governor to review a plan.

1986—Subsec. (c)(2)(B)(ii). Pub. L. 99–496 inserted

‘‘, including disabled veterans’’ after ‘‘handicapped individuals’’.

1982—Subsec. (b)(2)(A)(iv). Pub. L. 97–404 substituted

‘‘payments’’ for ‘‘projects’’.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102–367 effective July 1, 1993,

see section 701(a) of Pub. L. 102–367, set out as an Effective Date of 1992 Amendment; Transition Provisions

note under section 1501 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1551, 1604 of this

title.

§ 1519. Recapture and reallotment of unobligated

funds

(a) Within State reallocations

(1) In general

For program years beginning on or after

July 1, 1993, the Governor shall, in accordance

with the requirements of this subsection, reallocate to eligible service delivery areas

within the State funds appropriated for such

program year that are available for reallocation.

(2) Amount

The amount available for reallocation is

equal to the amount by which the unobligated

balance of the service delivery area allocation

under part A or C of subchapter II of this chapter for all service delivery areas within the

State at the end of the program year prior to

the program year for which the determination

under this subsection is made exceeds 15 percent of such allocation for the prior program

year.

(3) Reallocation

The Governor shall reallocate the amounts

available pursuant to paragraph (2) to eligible

service delivery areas within the State that

have the highest rates of unemployment for an

extended period of time and to those with the

highest poverty rates.

(4) Eligibility

For purposes of this subsection, an eligible

service delivery area means a service delivery

area that has obligated at least 85 percent of

its allocation under part A or C of subchapter

II of this chapter, respectively, for the program year prior to the program year for which

the determination under this subsection is

made.

(b) Reallotment among States

(1) In general

For program years beginning on or after

July 1, 1993, the Secretary shall, in accordance

with the requirements of this subsection,

reallot to eligible States funds appropriated

for such program year that are available for

reallotment.

(2) Amount

The amount available for reallotment is

equal to the amount by which the unobligated

balance of the State allotment under part A or

C of subchapter II of this chapter, respectively, for all States at the end of the program

year prior to the program year for which the

determination under this subsection is made

exceeds 15 percent of such allotment for that

prior program year.

(3) Reallotment

The Secretary shall reallot the amounts

available pursuant to paragraph (2) to each eligible State an amount based on the relative

amount allotted to such eligible State under

part A or C of subchapter II of this chapter, respectively, for the program year the determination under this subsection is made compared to the total amount allotted to all eligible States under part A or C of subchapter II

of this chapter, respectively, for such program

year.

(4) Eligibility

For purposes of this subsection, an eligible

State means a State that has obligated at

least 85 percent of its allocation under part A

or C of subchapter II of this chapter, respectively, for the program year prior to the program year for which the determination under

this subsection is made.

(5) Procedures

The Governor of each State shall prescribe

uniform procedures for the obligation of funds

by service delivery areas within the State in

order to avoid the requirement that funds be

made available for reallotment under this subsection. The Governor shall further prescribe

equitable procedures for making funds available from the State and service delivery areas

in the event that a State is required to make

funds available for reallotment under this subsection.

(d) 1 Calculation

Funds obligated to carry out programs under

section 1604(d) of this title shall not be counted

in determining the amount available for reallocation under subsection (a)(2) of this section

or the amount available for reallotment under

subsection (b)(2).

(Pub. L. 97–300, title I, §109, as added Pub. L.

102–367, title I, §118, Sept. 7, 1992, 106 Stat. 1036.)

EFFECTIVE DATE

Section effective July 1, 1993, see section 701(a) of

Pub. L. 102–367, set out as an Effective Date of 1992