‘‘(I) used with respect to fiscal 
year 2012, means the percentage of 
the amounts allocated to local areas 
under paragraphs (16) through (23) 
of section 201 of the Streamlining 
Workforce Development Programs Act 
of 2011 (as such provisions were in 
effect on the day before the date of 
enactment of such Act) that is re-
ceived under such provisions by the 
local area involved for fiscal year 
2012; and 
‘‘(II) used with respect to fiscal 
year 2013 or a subsequent year, 
means the percentage of the funds de-
scribed in clause (i) that is received 
through an allocation made under this 
subparagraph for the fiscal year.’’. 
(3) in subsection (c)— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) IN GENERAL.—The Governor, may in ac-
cordance with this subsection, reallocate to eligible 
local area within the State amounts that are allo-
cated under subsection (b) for employment and 
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training activities and that are available for realloca-
tion.’’; 
(B) in paragraph (2), by striking ‘‘para-
graph (2)(A) or (3) of subsection (b) for such 
activities’’ and inserting ‘‘subsection (b) for 
such activities’’; 
(C) by amending paragraph (3) to read as 
follows: 
‘‘(3) REALLOCATIONS.—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 allo-
cated to such local area under subsection (b)(2) for 
such activities for such prior program year, as com-
pared to the total amount allocated to all eligible 
local areas in the State under subsection (b)(2) for 
such activities for such prior program year.’’; and 
(D) in paragraph (4), by striking ‘‘para-
graph (2)(A) or (3) of’’; and 
(4) by adding at the end the following new sub-
section: 
‘‘(d) LOCAL ADMINISTRATIVE COST LIMIT.—Of the 
amounts allocated to a local area under this section for 
a fiscal year, not more than 10 percent of the amount 
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may be used by the local board involved for the adminis-
trative costs of carrying out local workforce investment ac-
tivities in the local area under this chapter.’’. 
SEC. 112. USE OF FUNDS FOR EMPLOYMENT AND TRAINING 
ACTIVITIES. 
Section 134 is amended— 
(1) in subsection (a)— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) IN GENERAL.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (C), funds reserved by a Governor for a 
State as described in paragraphs (1)(A), (2), 
(3), and (4) of section 133(a)— 
‘‘(i) shall be used to carry out the 
statewide employment and training activi-
ties described in paragraph (2)(B); and 
‘‘(ii) may be used to carry out any of 
the statewide employment and training ac-
tivities described in paragraph (3). 
‘‘(B) STATEWIDE RAPID RESPONSE ACTIVI-
TIES.—Funds reserved by a Governor for a 
State as described in section 133(a)(1)(B) shall 
be used to carry out the statewide rapid re-
sponse activities described in paragraph (2)(A). 
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