H. R. 803—71 
(A) PURPOSE.—The purpose of this paragraph is to 
enable the providers of programs carried out under chapter 
3 to offer the highest quality training services and be 
responsive to in-demand and emerging industries by pro-
viding training services for those industries. 
(B) INITIAL
ELIGIBILITY.—Providers may seek initial 
eligibility under this paragraph as providers of training 
services and may receive that initial eligibility for only 
1 fiscal year for a particular program. The criteria and 
information requirements established by the Governor 
under this paragraph shall require that a provider who 
has not previously been an eligible provider of training 
services under this section (or section 122 of the Workforce 
Investment Act of 1998, as in effect on the day before 
the date of enactment of this Act) provide the information 
described in subparagraph (C). 
(C) 
INFORMATION.—The 
provider 
shall 
provide 
verifiable program-specific performance information based 
on criteria established by the State as described in subpara-
graph (D) that supports the provider’s ability to serve 
participants under this subtitle. 
(D) CRITERIA.—The criteria described in subparagraph 
(C) shall include at least— 
(i) a factor related to indicators described in section 
116; 
(ii) a factor concerning whether the provider is 
in a partnership with business; 
(iii) other factors that indicate high-quality 
training services, including the factor described in 
paragraph (1)(H); and 
(iv) a factor concerning alignment of the training 
services with in-demand industry sectors and occupa-
tions, to the extent practicable. 
(E) 
PROVISION.—The 
provider 
shall 
provide 
the 
information described in subparagraph (C) to the Governor 
and the local board in a manner that will permit the 
Governor and the local board to make a decision on inclu-
sion of the provider on the list of eligible providers 
described in subsection (d). 
(F) LIMITATION.—A provider that receives initial eligi-
bility under this paragraph for a program shall be subject 
to the requirements under subsection (c) for that program 
after such initial eligibility expires. 
(c) PROCEDURES.— 
(1) APPLICATION PROCEDURES.—The procedures established 
under subsection (a) shall identify the application process for 
a provider of training services to become eligible to receive 
funds provided under section 133(b) for the provision of training 
services. The procedures shall identify the respective roles of 
the State and local areas in receiving and reviewing the applica-
tions and in making determinations of such eligibility based 
on the criteria, information, and procedures established under 
this section. The procedures shall also establish a process for 
a provider of training services to appeal a denial or termination 
of eligibility under this section that includes an opportunity 
for a hearing and prescribes appropriate time limits to ensure 
prompt resolution of the appeal.
H. R. 803—72 
(2) RENEWAL PROCEDURES.—The procedures established by 
the Governor shall also provide for biennial review and renewal 
of eligibility under this section for providers of training services. 
(d) LIST
AND
INFORMATION
TO
ASSIST
PARTICIPANTS
IN 
CHOOSING PROVIDERS.— 
(1) IN GENERAL.—In order to facilitate and assist partici-
pants in choosing employment and training activities and in 
choosing providers of training services, the Governor shall 
ensure that an appropriate list of providers determined to be 
eligible under this section to offer a program in the State 
(and, as appropriate, in a local area), accompanied by informa-
tion identifying the recognized postsecondary credential offered 
by the provider and other appropriate information, is prepared. 
The list shall be provided to the local boards in the State, 
and made available to such participants and to members of 
the public through the one-stop delivery system in the State. 
(2) 
ACCOMPANYING
INFORMATION.—The 
accompanying 
information shall— 
(A) with respect to providers described in subpara-
graphs (A) and (C) of subsection (a)(2), consist of informa-
tion provided by such providers, disaggregated by local 
areas served, as applicable, in accordance with subsection 
(b); 
(B) with respect to providers described in subsection 
(b)(4), consist of information provided by such providers 
in accordance with subsection (b)(4); and 
(C) such other information as the Governor determines 
to be appropriate. 
(3) AVAILABILITY.—The list and the accompanying informa-
tion shall be made available to such participants and to mem-
bers of the public through the one-stop delivery system in 
the State, in a manner that does not reveal personally identifi-
able information about an individual participant. 
(4) LIMITATION.—In carrying out the requirements of this 
subsection, no personally identifiable information regarding a 
student, including a Social Security number, student identifica-
tion number, or other identifier, may be disclosed without the 
prior written consent of the parent or student in compliance 
with section 444 of the General Education Provisions Act (20 
U.S.C. 1232g). 
(e) OPPORTUNITY
TO
SUBMIT
COMMENTS.—In establishing, 
under this section, criteria, information requirements, procedures, 
and the list of eligible providers described in subsection (d), the 
Governor shall provide an opportunity for interested members of 
the public to make recommendations and submit comments 
regarding such criteria, information requirements, procedures, and 
list. 
(f) ENFORCEMENT.— 
(1) IN GENERAL.—The procedures established under this 
section shall provide the following: 
(A) INTENTIONALLY SUPPLYING INACCURATE INFORMA-
TION.—Upon a determination, by an individual or entity 
specified in the procedures, that a provider of training 
services, or individual providing information on behalf of 
the provider, violated this section (or section 122 of the 
Workforce Investment Act of 1998, as in effect on the
H. R. 803—73 
day before the date of enactment of this Act) by inten-
tionally supplying inaccurate information under this sec-
tion, the eligibility of such provider to receive funds under 
chapter 3 shall be terminated for a period of time that 
is not less than 2 years. 
(B) SUBSTANTIAL VIOLATIONS.—Upon a determination, 
by an individual or entity specified in the procedures, that 
a provider of training services substantially violated any 
requirement under this title (or title I of the Workforce 
Investment Act of 1998, as in effect on the day before 
such date of enactment), the eligibility of such provider 
to receive funds under chapter 3 for the program involved 
shall be terminated for a period of not less than 2 years. 
(C) REPAYMENT.—A provider of training services whose 
eligibility is terminated under subparagraph (A) or (B) 
shall be liable for the repayment of funds received under 
chapter 5 of subtitle B of title I of the Workforce Investment 
Act of 1998, as in effect on the day before such date 
of enactment, or chapter 3 of this subtitle during a period 
of violation described in such subparagraph. 
(2) CONSTRUCTION.—Paragraph (1) shall be construed to 
provide remedies and penalties that supplement, but shall not 
supplant, civil and criminal remedies and penalties specified 
in other provisions of law. 
(g) AGREEMENTS WITH OTHER STATES.—States may enter into 
agreements, on a reciprocal basis, to permit eligible providers of 
training services to accept individual training accounts provided 
in another State. 
(h) ON-THE-JOB TRAINING, CUSTOMIZED TRAINING, INCUMBENT 
WORKER TRAINING, AND OTHER TRAINING EXCEPTIONS.— 
(1) IN
GENERAL.—Providers of on-the-job training, cus-
tomized training, incumbent worker training, internships, and 
paid or unpaid work experience opportunities, or transitional 
employment shall not be subject to the requirements of sub-
sections (a) through (f). 
(2) COLLECTION AND DISSEMINATION OF INFORMATION.—A 
one-stop operator in a local area shall collect such performance 
information from providers of on-the-job training, customized 
training, incumbent worker training, internships, paid or 
unpaid work experience opportunities, and transitional employ-
ment as the Governor may require, and use the information 
to determine whether the providers meet such performance 
criteria as the Governor may require. The one-stop operator 
shall disseminate information identifying such providers that 
meet the criteria as eligible providers, and the performance 
information, through the one-stop delivery system. Providers 
determined to meet the criteria shall be considered to be identi-
fied as eligible providers of training services. 
(i) TRANSITION PERIOD FOR IMPLEMENTATION.—The Governor 
and local boards shall implement the requirements of this section 
not later than 12 months after the date of enactment of this Act. 
In order to facilitate early implementation of this section, the Gov-
ernor may establish transition procedures under which providers 
eligible to provide training services under chapter 5 of subtitle 
B of title I of the Workforce Investment Act of 1998, as such 
chapter was in effect on the day before the date of enactment 
of this Act, may continue to be eligible to provide such services
H. R. 803—74 
until December 31, 2015, or until such earlier date as the Governor 
determines to be appropriate. 
SEC. 123. ELIGIBLE PROVIDERS OF YOUTH WORKFORCE INVESTMENT 
ACTIVITIES. 
(a) IN GENERAL.—From the funds allocated under section 128(b) 
to a local area, the local board for such area shall award grants 
or contracts on a competitive basis to providers of youth workforce 
investment activities identified based on the criteria in the State 
plan (including such quality criteria as the Governor shall establish 
for a training program that leads to a recognized postsecondary 
credential), and taking into consideration the ability of the providers 
to meet performance accountability measures based on primary 
indicators of performance for the youth program as described in 
section 116(b)(2)(A)(ii), as described in section 102(b)(2)(D)(i)(V), 
and shall conduct oversight with respect to such providers. 
(b) EXCEPTIONS.—A local board may award grants or contracts 
on a sole-source basis if such board determines there is an insuffi-
cient number of eligible providers of youth workforce investment 
activities in the local area involved (such as a rural area) for 
grants and contracts to be awarded on a competitive basis under 
subsection (a). 
CHAPTER 2—YOUTH WORKFORCE INVESTMENT 
ACTIVITIES 
SEC. 126. GENERAL AUTHORIZATION. 
The Secretary shall make an allotment under section 
127(b)(1)(C) to each State that meets the requirements of section 
102 or 103 and a grant under section 127(b)(1)(B) to each outlying 
area that complies with the requirements of this title, to assist 
the State or outlying area, and to enable the State or outlying 
area to assist local areas, for the purpose of providing workforce 
investment activities for eligible youth in the State or outlying 
area and in the local areas. 
SEC. 127. STATE ALLOTMENTS. 
(a) IN GENERAL.—The Secretary shall— 
(1) for each fiscal year for which the amount appropriated 
under section 136(a) exceeds $925,000,000, reserve 4 percent 
of the excess amount to provide youth workforce investment 
activities under section 167 (relating to migrant and seasonal 
farmworkers); and 
(2) use the remainder of the amount appropriated under 
section 136(a) for a fiscal year to make allotments and grants 
in accordance with subsection (b). 
(b) ALLOTMENT AMONG STATES.— 
(1) YOUTH WORKFORCE INVESTMENT ACTIVITIES.— 
(A) NATIVE
AMERICANS.—From the amount appro-
priated under section 136(a) for a fiscal year that is not 
reserved under subsection (a)(1), the Secretary shall reserve 
not more than 11⁄2 percent of such amount to provide 
youth workforce investment activities under section 166 
(relating to Native Americans). 
(B) OUTLYING AREAS.— 
(i) IN GENERAL.—From the amount appropriated 
under section 136(a) for each fiscal year that is not 
reserved under subsection (a)(1) and subparagraph (A),
H. R. 803—75 
the Secretary shall reserve not more than 1⁄4 of 1 
percent of such amount to provide assistance to the 
outlying areas to carry out youth workforce investment 
activities and statewide workforce investment activi-
ties. 
(ii) LIMITATION FOR OUTLYING AREAS.— 
(I) COMPETITIVE GRANTS.—The Secretary shall 
use funds reserved under clause (i) to award grants 
to outlying areas to carry out youth workforce 
investment activities and statewide workforce 
investment activities. 
(II) AWARD BASIS.—The Secretary shall award 
grants pursuant to subclause (I) on a competitive 
basis and pursuant to the recommendations of 
experts in the field of employment and training, 
working through the Pacific Region Educational 
Laboratory in Honolulu, Hawaii. 
(III) ADMINISTRATIVE
COSTS.—The Secretary 
may provide not more than 5 percent of the funds 
made available for grants under subclause (I) to 
pay the administrative costs of the Pacific Region 
Educational Laboratory in Honolulu, Hawaii, 
regarding activities assisted under this clause. 
(iii) ADDITIONAL REQUIREMENT.—The provisions of 
section 501 of Public Law 95–134 (48 U.S.C. 1469a), 
permitting the consolidation of grants by the outlying 
areas, shall not apply to assistance provided to those 
areas, including Palau, under this subparagraph. 
(C) STATES.— 
(i) IN
GENERAL.—From the remainder of the 
amount appropriated under section 136(a) for a fiscal 
year that exists after the Secretary determines the 
amounts to be reserved under subsection (a)(1) and 
subparagraphs (A) and (B), the Secretary shall make 
allotments to the States in accordance with clause 
(ii) for youth workforce investment activities and state-
wide workforce investment activities. 
(ii) FORMULA.—Subject to clauses (iii) and (iv), of 
the remainder— 
(I) 331⁄3 percent shall be allotted on the basis 
of the relative number of unemployed individuals 
in areas of substantial unemployment in each 
State, compared to the total number of unemployed 
individuals in areas of substantial unemployment 
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 disadvantaged youth in 
each State, compared to the total number of dis-
advantaged youth in all States, except as described 
in clause (iii). 
(iii) CALCULATION.—In determining an allotment 
under clause (ii)(III) for any State in which there is
H. R. 803—76 
an area that was designated as a local area as 
described in section 107(c)(1)(C), the allotment shall 
be based on the higher of— 
(I) the number of individuals who are age 
16 through 21 in families with an income below 
the low-income level in such area; or 
(II) the number of disadvantaged youth in such 
area. 
(iv) MINIMUM
AND
MAXIMUM
PERCENTAGES
AND 
MINIMUM ALLOTMENTS.—In making allotments under 
this subparagraph, the Secretary shall ensure the fol-
lowing: 
(I) MINIMUM PERCENTAGE AND ALLOTMENT.— 
Subject to subclause (IV), the Secretary shall 
ensure that no State shall receive an allotment 
for a fiscal year that is less than the greater of— 
(aa) an amount based on 90 percent of 
the allotment percentage of the State for the 
preceding fiscal year; or 
(bb) 100 percent of the allotments of the 
State 
under 
section 
127(b)(1)(C) 
of 
the 
Workforce Investment Act of 1998 (as in effect 
on the day before the date of enactment of 
this Act) for fiscal year 2014. 
(II) SMALL STATE MINIMUM ALLOTMENT.—Sub-
ject to subclauses (I), (III), and (IV), the Secretary 
shall ensure that no State shall receive an allot-
ment under this subparagraph that is less than 
the total of— 
(aa) 3⁄10 of 1 percent of $1,000,000,000 
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 $1,000,000,000, 
2⁄5 of 1 percent of the excess. 
(III) MAXIMUM PERCENTAGE.—Subject to sub-
clause (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 allotment 
percentage of the State for the preceding fiscal 
year. 
(IV) MINIMUM FUNDING.—In any fiscal year 
in which the remainder described in clause (i) 
does not exceed $1,000,000,000, the minimum 
allotments under subclauses (I) and (II) shall be 
calculated by the methodology specified in section 
127(b)(1)(C)(iv)(IV) of the Workforce Investment 
Act of 1998 (as in effect on the day before the 
date of enactment of this Act). 
(2) DEFINITIONS.—For the purpose of the formula specified 
in paragraph (1)(C): 
(A) ALLOTMENT
PERCENTAGE.—The term ‘‘allotment 
percentage’’, used with respect to fiscal year 2015 or a 
subsequent fiscal year, means a percentage of the 
remainder described in paragraph (1)(C)(i) that is received 
through an allotment made under paragraph (1)(C) for 
the fiscal year. The term, used with respect to fiscal year
H. R. 803—77 
2014, means the percentage of the amount allotted to States 
under section 127(b)(1)(C) of the Workforce Investment Act 
of 1998 (as in effect on the day before the date of enactment 
of this Act) that is received under such section by the 
State involved for fiscal year 2014. 
(B) AREA OF SUBSTANTIAL UNEMPLOYMENT.—The term 
‘‘area of substantial unemployment’’ means any area that 
is of sufficient size and scope to sustain a program of 
workforce investment activities carried out under this sub-
title 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 subpara-
graph, determinations of areas of substantial unemploy-
ment shall be made once each fiscal year. 
(C) DISADVANTAGED YOUTH.—Subject to paragraph (3), 
the term ‘‘disadvantaged youth’’ means an individual who 
is age 16 through 21 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— 
(i) the poverty line; or 
(ii) 70 percent of the lower living standard income 
level. 
(D) EXCESS
NUMBER.—The term ‘‘excess number’’ 
means, used with respect to the excess number of 
unemployed individuals within a State, the higher of— 
(i) the number that represents the number of 
unemployed individuals in excess of 4.5 percent of the 
civilian labor force in the State; or 
(ii) the number that represents the number of 
unemployed individuals in excess of 4.5 percent of the 
civilian labor force in areas of substantial unemploy-
ment in such State. 
(E) 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. 
(3) SPECIAL RULE.—For the purpose of the formula specified 
in paragraph (1)(C), 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 youth. 
(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 allotments made under this 
section or a corresponding provision of the Workforce Invest-
ment Act of 1998 for youth workforce investment activities 
and statewide workforce investment activities (referred to 
individually in this subsection as a ‘‘State allotment’’) and 
that are available for reallotment. 
(2) AMOUNT.—The amount available for reallotment for 
a program year is equal to the amount by which the unobligated 
balance of the State allotment, at the end of the program 
year prior to the program year for which the determination
H. R. 803—78 
under this paragraph is made, exceeds 20 percent of such 
allotment 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 
for the program year for which the determination is made, 
as compared to the total amount of the State allotments for 
all eligible States for such program year. 
(4) ELIGIBILITY.—For purposes of this subsection, an 
eligible State means a State that does not have an amount 
available for reallotment under paragraph (2) for the program 
year for which the determination under paragraph (2) is made. 
(5) PROCEDURES.—The Governor shall prescribe uniform 
procedures for the obligation of funds by local areas within 
the State in order to avoid the requirement that funds be 
made available for reallotment under this subsection. The Gov-
ernor shall further prescribe equitable procedures for making 
funds available from the State and local areas in the event 
that a State is required to make funds available for reallotment 
under this subsection. 
SEC. 128. WITHIN STATE ALLOCATIONS. 
(a) RESERVATIONS FOR STATEWIDE ACTIVITIES.— 
(1) IN
GENERAL.—The Governor 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 invest-
ment 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 activities 
under section 129(b) or statewide employment and training 
activities, for adults or dislocated workers, under section 134(a). 
(b) WITHIN STATE ALLOCATIONS.— 
(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 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 para-
graph (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) 331⁄3 percent of the funds on the basis 
described in section 127(b)(1)(C)(ii)(I); 
(II) 331⁄3 percent of the funds on the basis 
described in section 127(b)(1)(C)(ii)(II); and 
(III) 331⁄3 percent of the funds on the basis 
described in clauses (ii)(III) and (iii) of section 
127(b)(1)(C). 
(ii) MINIMUM PERCENTAGE.—The local area shall 
not receive an allocation percentage for a fiscal year 
that is less than 90 percent of the average allocation
H. R. 803—79 
percentage of the local area for the 2 preceding fiscal 
years. Amounts necessary for increasing such alloca-
tions to local areas to comply with the preceding sen-
tence shall be obtained by ratably reducing the alloca-
tions to be made to other local areas under this 
subparagraph. 
(iii) DEFINITION.—In this subparagraph, the term 
‘‘allocation percentage’’, used with respect to fiscal year 
2015 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. The term, used with respect to fiscal year 
2013 or 2014, means a percentage of the funds referred 
to in section 128(b)(1) of the Workforce Investment 
Act of 1998 (as in effect on the day before the date 
of enactment of this Act), received through an alloca-
tion made under paragraph (2) or (3) of section 128(b) 
of the Workforce Investment Act of 1998 (as so in 
effect), for the fiscal year 2013 or 2014, respectively. 
(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), 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) LOCAL ADMINISTRATIVE COST LIMIT.— 
(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 involved for the administrative 
costs of carrying out local workforce investment activities 
under this chapter or chapter 3. 
(B) USE OF FUNDS.—Funds made available for adminis-
trative costs under subparagraph (A) may be used for the
H. R. 803—80 
administrative costs of any of the local workforce invest-
ment activities described in this chapter or chapter 3, 
regardless of whether the funds were allocated under this 
subsection or section 133(b). 
(c) REALLOCATION AMONG LOCAL AREAS.— 
(1) IN GENERAL.—The Governor may, in accordance with 
this subsection and after consultation with the State board, 
reallocate to eligible local areas within the State amounts that 
are made available to local areas from allocations made under 
this section or a corresponding provision of the Workforce 
Investment Act of 1998 for youth workforce investment activi-
ties (referred to individually in this subsection as a ‘‘local 
allocation’’) 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 allocation, 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 
of the local allocation for the program year for which the 
determination is made, as compared to the total amount of 
the local allocations for all eligible local areas in the State 
for such program year. 
(4) ELIGIBILITY.—For purposes of this subsection, an 
eligible local area means a local area that does not have an 
amount available for reallocation under paragraph (2) for the 
program year for which the determination under paragraph 
(2) is made. 
SEC. 129. USE OF FUNDS FOR YOUTH WORKFORCE INVESTMENT 
ACTIVITIES. 
(a) YOUTH PARTICIPANT ELIGIBILITY.— 
(1) ELIGIBILITY.— 
(A) IN GENERAL.—To be eligible to participate in activi-
ties carried out under this chapter during any program 
year an individual shall, at the time the eligibility deter-
mination is made, be an out-of-school youth or an in-school 
youth. 
(B) OUT-OF-SCHOOL
YOUTH.—In this title, the term 
‘‘out-of-school youth’’ means an individual who is— 
(i) not attending any school (as defined under State 
law); 
(ii) not younger than age 16 or older than age 
24; and 
(iii) one or more of the following: 
(I) A school dropout. 
(II) A youth who is within the age of compul-
sory school attendance, but has not attended school 
for at least the most recent complete school year 
calendar quarter. 
(III) A recipient of a secondary school diploma 
or its recognized equivalent who is a low-income 
individual and is—
H. R. 803—81 
(aa) basic skills deficient; or 
(bb) an English language learner. 
(IV) An individual who is subject to the juve-
nile or adult justice system. 
(V) A homeless individual (as defined in sec-
tion 41403(6) of the Violence Against Women Act 
of 1994 (42 U.S.C. 14043e–2(6))), a homeless child 
or youth (as defined in section 725(2) of the 
McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11434a(2))), a runaway, in foster care or 
has aged out of the foster care system, a child 
eligible for assistance under section 477 of the 
Social Security Act (42 U.S.C. 677), or in an out- 
of-home placement. 
(VI) An individual who is pregnant or par-
enting. 
(VII) A youth who is an individual with a 
disability. 
(VIII) A low-income individual who requires 
additional assistance to enter or complete an edu-
cational program or to secure or hold employment. 
(C) IN-SCHOOL YOUTH.—In this section, the term ‘‘in- 
school youth’’ means an individual who is— 
(i) attending school (as defined by State law); 
(ii) not younger than age 14 or (unless an indi-
vidual with a disability who is attending school under 
State law) older than age 21; 
(iii) a low-income individual; and 
(iv) one or more of the following: 
(I) Basic skills deficient. 
(II) An English language learner. 
(III) An offender. 
(IV) A homeless individual (as defined in sec-
tion 41403(6) of the Violence Against Women Act 
of 1994 (42 U.S.C. 14043e–2(6))), a homeless child 
or youth (as defined in section 725(2) of the 
McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11434a(2))), a runaway, in foster care or 
has aged out of the foster care system, a child 
eligible for assistance under section 477 of the 
Social Security Act (42 U.S.C. 677), or in an out- 
of-home placement. 
(V) Pregnant or parenting. 
(VI) A youth who is an individual with a dis-
ability. 
(VII) An individual who requires additional 
assistance to complete an educational program or 
to secure or hold employment. 
(2) SPECIAL RULE.—For the purpose of this subsection, the 
term ‘‘low-income’’, used with respect to an individual, also 
includes a youth living in a high-poverty area. 
(3) EXCEPTION AND LIMITATION.— 
(A) EXCEPTION FOR PERSONS WHO ARE NOT LOW-INCOME 
INDIVIDUALS.— 
(i) DEFINITION.—In this subparagraph, the term 
‘‘covered individual’’ means an in-school youth, or an
H. R. 803—82 
out-of-school youth who is described in subclause (III) 
or (VIII) of paragraph (1)(B)(iii). 
(ii) EXCEPTION.—In each local area, not more than 
5 percent of the individuals assisted under this section 
may be persons who would be covered individuals, 
except that the persons are not low-income individuals. 
(B) LIMITATION.—In each local area, not more than 
5 percent of the in-school youth assisted under this section 
may be eligible under paragraph (1) because the youth 
are in-school youth described in paragraph (1)(C)(iv)(VII). 
(4) OUT-OF-SCHOOL PRIORITY.— 
(A) IN GENERAL.—For any program year, not less than 
75 percent of the funds allotted under section 127(b)(1)(C), 
reserved under section 128(a), and available for statewide 
activities under subsection (b), and not less than 75 percent 
of funds available to local areas under subsection (c), shall 
be used to provide youth workforce investment activities 
for out-of-school youth. 
(B) EXCEPTION.—A State that receives a minimum 
allotment under section 127(b)(1) in accordance with section 
127(b)(1)(C)(iv) or under section 132(b)(1) in accordance 
with section 132(b)(1)(B)(iv) may decrease the percentage 
described in subparagraph (A) to not less than 50 percent 
for a local area in the State, if— 
(i) after an analysis of the in-school youth and 
out-of-school youth populations in the local area, the 
State determines that the local area will be unable 
to use at least 75 percent of the funds available for 
activities under subsection (c) to serve out-of-school 
youth due to a low number of out-of-school youth; 
and 
(ii)(I) the State submits to the Secretary, for the 
local area, a request including a proposed percentage 
decreased to not less than 50 percent for purposes 
of subparagraph (A), and a summary of the analysis 
described in clause (i); and 
(II) the request is approved by the Secretary. 
(5) CONSISTENCY WITH COMPULSORY SCHOOL ATTENDANCE 
LAWS.—In providing assistance under this section to an indi-
vidual who is required to attend school under applicable State 
compulsory school attendance laws, the priority in providing 
such assistance shall be for the individual to attend school 
regularly. 
(b) STATEWIDE ACTIVITIES.— 
(1) 
REQUIRED
STATEWIDE
YOUTH
ACTIVITIES.—Funds 
reserved by a Governor as described in sections 128(a) and 
133(a)(1) shall be used, regardless of whether the funds were 
allotted to the State under section 127(b)(1)(C) or under para-
graph (1)(B) or (2)(B) of section 132(b) for statewide activities, 
which shall include— 
(A) conducting evaluations under section 116(e) of 
activities authorized under this chapter and chapter 3 in 
coordination with evaluations carried out by the Secretary 
under section 169(a); 
(B) disseminating a list of eligible providers of youth 
workforce investment activities, as determined under sec-
tion 123;
H. R. 803—83 
(C) providing assistance to local areas as described 
in subsections (b)(6) and (c)(2) of section 106, for local 
coordination of activities carried out under this title; 
(D) operating a fiscal and management accountability 
information system under section 116(i); 
(E) carrying out monitoring and oversight of activities 
carried out under this chapter and chapter 3, which may 
include a review comparing the services provided to male 
and female youth; and 
(F) providing additional assistance to local areas that 
have high concentrations of eligible youth. 
(2) ALLOWABLE
STATEWIDE
YOUTH
ACTIVITIES.—Funds 
reserved by a Governor as described in sections 128(a) and 
133(a)(1) may be used, regardless of whether the funds were 
allotted to the State under section 127(b)(1)(C) or under para-
graph (1)(B) or (2)(B) of section 132(b), for statewide activities, 
which may include— 
(A) conducting— 
(i) research related to meeting the education and 
employment needs of eligible youth; and 
(ii) demonstration projects related to meeting the 
education and employment needs of eligible youth; 
(B) supporting the development of alternative, evi-
dence-based programs and other activities that enhance 
the choices available to eligible youth and encourage such 
youth to reenter and complete secondary education, enroll 
in postsecondary education and advanced training, progress 
through a career pathway, and enter into unsubsidized 
employment that leads to economic self-sufficiency; 
(C) supporting the provision of career services 
described in section 134(c)(2) in the one-stop delivery 
system in the State; 
(D) supporting financial literacy, including— 
(i) supporting the ability of participants to create 
household budgets, initiate savings plans, and make 
informed financial decisions about education, retire-
ment, home ownership, wealth building, or other 
savings goals; 
(ii) supporting the ability to manage spending, 
credit, and debt, including credit card debt, effectively; 
(iii) increasing awareness of the availability and 
significance of credit reports and credit scores in 
obtaining credit, including determining their accuracy 
(and how to correct inaccuracies in the reports and 
scores), and their effect on credit terms; 
(iv) supporting the ability to understand, evaluate, 
and 
compare 
financial 
products, 
services, 
and 
opportunities; and 
(v) supporting activities that address the particular 
financial literacy needs of non-English speakers, 
including providing the support through the develop-
ment and distribution of multilingual financial literacy 
and education materials; and 
(E) providing technical assistance to, as appropriate, 
local boards, chief elected officials, one-stop operators, one- 
stop partners, and eligible providers, in local areas, which
H. R. 803—84 
provision of technical assistance shall include the develop-
ment and training of staff, the development of exemplary 
program activities, the provision of technical assistance 
to local areas that fail to meet local performance account-
ability measures described in section 116(c), and the provi-
sion of technology to facilitate remote access to services 
provided through the one-stop delivery system in the State. 
(3) LIMITATION.—Not more than 5 percent of the funds 
allotted to a State under section 127(b)(1)(C) shall be used 
by the State for administrative activities carried out under 
this subsection or section 134(a). 
(c) LOCAL ELEMENTS AND REQUIREMENTS.— 
(1) PROGRAM DESIGN.—Funds allocated to a local area for 
eligible youth under section 128(b) shall be used to carry out, 
for eligible youth, programs that— 
(A) provide an objective assessment of the academic 
levels, skill levels, and service needs of each participant, 
which assessment shall include a review of basic skills, 
occupational skills, prior work experience, employability, 
interests, aptitudes (including interests and aptitudes for 
nontraditional jobs), supportive service needs, and develop-
mental needs of such participant, for the purpose of identi-
fying appropriate services and career pathways for partici-
pants, except that a new assessment of a participant is 
not required if the provider carrying out such a program 
determines it is appropriate to use a recent assessment 
of the participant conducted pursuant to another education 
or training program; 
(B) develop service strategies for each participant that 
are directly linked to 1 or more of the indicators of perform-
ance described in section 116(b)(2)(A)(ii), and that shall 
identify career pathways that include education and 
employment goals (including, in appropriate circumstances, 
nontraditional 
employment), 
appropriate 
achievement 
objectives, and appropriate services for the participant 
taking into account the assessment conducted pursuant 
to subparagraph (A), except that a new service strategy 
for a participant is not required if the provider carrying 
out such a program determines it is appropriate to use 
a recent service strategy developed for the participant 
under another education or training program; 
(C) provide— 
(i) activities leading to the attainment of a sec-
ondary school diploma or its recognized equivalent, 
or a recognized postsecondary credential; 
(ii) preparation for postsecondary educational and 
training opportunities; 
(iii) strong linkages between academic instruction 
(based on State academic content and student academic 
achievement standards established under section 1111 
of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6311)) and occupational education that 
lead to the attainment of recognized postsecondary 
credentials; 
(iv) preparation for unsubsidized employment 
opportunities, in appropriate cases; and
H. R. 803—85 
(v) effective connections to employers, including 
small employers, in in-demand industry sectors and 
occupations of the local and regional labor markets; 
and 
(D) at the discretion of the local board, implement 
a pay-for-performance contract strategy for elements 
described in paragraph (2), for which the local board may 
reserve and use not more than 10 percent of the total 
funds allocated to the local area under section 128(b). 
(2) PROGRAM ELEMENTS.—In order to support the attain-
ment of a secondary school diploma or its recognized equivalent, 
entry into postsecondary education, and career readiness for 
participants, the programs described in paragraph (1) shall 
provide elements consisting of— 
(A) tutoring, study skills training, instruction, and evi-
dence-based dropout prevention and recovery strategies 
that lead to completion of the requirements for a secondary 
school diploma or its recognized equivalent (including a 
recognized certificate of attendance or similar document 
for individuals with disabilities) or for a recognized postsec-
ondary credential; 
(B) alternative secondary school services, or dropout 
recovery services, as appropriate; 
(C) paid and unpaid work experiences that have as 
a component academic and occupational education, which 
may include— 
(i) summer employment opportunities and other 
employment opportunities available throughout the 
school year; 
(ii) pre-apprenticeship programs; 
(iii) internships and job shadowing; and 
(iv) on-the-job training opportunities; 
(D) occupational skill training, which shall include pri-
ority consideration for training programs that lead to recog-
nized postsecondary credentials that are aligned with in- 
demand industry sectors or occupations in the local area 
involved, if the local board determines that the programs 
meet the quality criteria described in section 123; 
(E) education offered concurrently with and in the 
same context as workforce preparation activities and 
training for a specific occupation or occupational cluster; 
(F) leadership development opportunities, which may 
include community service and peer-centered activities 
encouraging responsibility and other positive social and 
civic behaviors, as appropriate; 
(G) supportive services; 
(H) adult mentoring for the period of participation 
and a subsequent period, for a total of not less than 12 
months; 
(I) followup services for not less than 12 months after 
the completion of participation, as appropriate; 
(J) comprehensive guidance and counseling, which may 
include drug and alcohol abuse counseling and referral, 
as appropriate; 
(K) financial literacy education; 
(L) entrepreneurial skills training;
H. R. 803—86 
(M) services that provide labor market and employment 
information about in-demand industry sectors or occupa-
tions available in the local area, such as career awareness, 
career counseling, and career exploration services; and 
(N) activities that help youth prepare for and transition 
to postsecondary education and training. 
(3) ADDITIONAL REQUIREMENTS.— 
(A) INFORMATION AND REFERRALS.—Each local board 
shall ensure that each participant shall be provided— 
(i) information on the full array of applicable or 
appropriate services that are available through the 
local board or other eligible providers or one-stop part-
ners, including those providers or partners receiving 
funds under this subtitle; and 
(ii) referral to appropriate training and educational 
programs that have the capacity to serve the partici-
pant either on a sequential or concurrent basis. 
(B) APPLICANTS NOT MEETING ENROLLMENT REQUIRE-
MENTS.—Each eligible provider of a program of youth 
workforce investment activities shall ensure that an eligible 
applicant who does not meet the enrollment requirements 
of the particular program or who cannot be served shall 
be referred for further assessment, as necessary, and 
referred to appropriate programs in accordance with 
subparagraph (A) to meet the basic skills and training 
needs of the applicant. 
(C) INVOLVEMENT IN DESIGN AND IMPLEMENTATION.— 
The local board shall ensure that parents, participants, 
and other members of the community with experience 
relating to programs for youth are involved in the design 
and implementation of the programs described in para-
graph (1). 
(4) PRIORITY.—Not less than 20 percent of the funds allo-
cated to the local area as described in paragraph (1) shall 
be used to provide in-school youth and out-of-school youth with 
activities under paragraph (2)(C). 
(5) RULE OF CONSTRUCTION.—Nothing in this chapter shall 
be construed to require that each of the elements described 
in subparagraphs of paragraph (2) be offered by each provider 
of youth services. 
(6) PROHIBITIONS.— 
(A) PROHIBITION AGAINST FEDERAL CONTROL OF EDU-
CATION.—No provision of this Act shall be construed to 
authorize any department, agency, officer, or employee of 
the United States to exercise any direction, supervision, 
or control over the curriculum, program of instruction, 
administration, or personnel of any educational institution, 
school, or school system, or over the selection of library 
resources, textbooks, or other printed or published instruc-
tional materials by any educational institution, school, or 
school system. 
(B) NONINTERFERENCE AND NONREPLACEMENT OF REG-
ULAR
ACADEMIC
REQUIREMENTS.—No funds described in 
paragraph (1) shall be used to provide an activity for 
eligible youth who are not school dropouts if participation 
in the activity would interfere with or replace the regular 
academic requirements of the youth.
H. R. 803—87 
(7) LINKAGES.—In coordinating the programs authorized 
under this section, local boards shall establish linkages with 
local educational agencies responsible for services to partici-
pants as appropriate. 
(8) VOLUNTEERS.—The local board shall make opportunities 
available for individuals who have successfully participated 
in programs carried out under this section to volunteer assist-
ance to participants in the form of mentoring, tutoring, and 
other activities. 
CHAPTER 3—ADULT AND DISLOCATED WORKER 
EMPLOYMENT AND TRAINING ACTIVITIES 
SEC. 131. GENERAL AUTHORIZATION. 
The Secretary shall make allotments under paragraphs (1)(B) 
and (2)(B) of section 132(b) to each State that meets the require-
ments of section 102 or 103 and grants under paragraphs (1)(A) 
and (2)(A) of section 132(b) to each outlying area that complies 
with the requirements of this title, to assist the State or outlying 
area, and to enable the State or outlying area to assist local areas, 
for the purpose of providing workforce investment activities for 
adults, and dislocated workers, in the State or outlying area and 
in the local areas. 
SEC. 132. STATE ALLOTMENTS. 
(a) IN GENERAL.—The Secretary shall— 
(1) make allotments and grants from the amount appro-
priated under section 136(b) for a fiscal year in accordance 
with subsection (b)(1); and 
(2)(A) reserve 20 percent of the amount appropriated under 
section 136(c) for the fiscal year for use under subsection 
(b)(2)(A), and under sections 168(b) (relating to dislocated 
worker technical assistance), 169(c) (relating to dislocated 
worker projects), and 170 (relating to national dislocated worker 
grants); and 
(B) make allotments from 80 percent of the amount appro-
priated under section 136(c) 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 Secretary 
shall reserve not more than 1⁄4 of 1 percent of such 
amount 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 adult employment and training activities and 
statewide workforce investment activities in accordance 
with the requirements of section 127(b)(1)(B). 
(B) STATES.— 
(i) IN
GENERAL.—After determining the amount 
to be reserved under subparagraph (A), the Secretary 
shall allot the remainder of the amount made available 
under subsection (a)(1) for that fiscal year to the States 
pursuant to clause (ii) for adult employment and
H. R. 803—88 
training activities and statewide workforce investment 
activities. 
(ii) FORMULA.—Subject to clauses (iii) and (iv), of 
the remainder— 
(I) 331⁄3 percent shall be allotted on the basis 
of the relative number of unemployed individuals 
in areas of substantial unemployment in each 
State, compared to the total number of unemployed 
individuals in areas of substantial unemployment 
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 disadvantaged adults 
in each State, compared to the total number of 
disadvantaged adults in all States, except as 
described 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 107(c)(1)(C), 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 subparagraph, the Secretary shall ensure the fol-
lowing: 
(I) MINIMUM PERCENTAGE AND ALLOTMENT.— 
Subject to subclause (IV), the Secretary shall 
ensure that no State shall receive an allotment 
for a fiscal year that is an amount based on 90 
percent of the allotment percentage of the State 
for the preceding fiscal year. 
(II) SMALL STATE MINIMUM ALLOTMENT.—Sub-
ject to subclauses (I), (III), and (IV), the Secretary 
shall ensure that no State shall receive an allot-
ment 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 excess. 
(III) MAXIMUM PERCENTAGE.—Subject to sub-
clause (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 allotment 
percentage of the State for the preceding fiscal 
year.
H. R. 803—89 
(IV) MINIMUM FUNDING.—In any fiscal year 
in which the remainder described in clause (i) 
does not exceed $960,000,000, the minimum allot-
ments under subclauses (I) and (II) shall be cal-
culated by the methodology specified in section 
132(b)(1)(B)(iv)(IV) of the Workforce Investment 
Act of 1998 (as in effect on the day before the 
date of enactment of this Act). 
(v) DEFINITIONS.—For the purpose of the formula 
specified in this subparagraph: 
(I) ADULT.—The term ‘‘adult’’ means an indi-
vidual 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 
percentage 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 Invest-
ment Act of 1998 (as in effect on the day before 
the date of enactment of this Act) that is received 
under such section by the State involved for fiscal 
year 2014. 
(III) AREA OF SUBSTANTIAL UNEMPLOYMENT.— 
The term ‘‘area of substantial unemployment’’ 
means any area that is of sufficient size and scope 
to sustain a program of workforce investment 
activities carried out under this subtitle 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, determinations of areas of substantial 
unemployment shall be made once each fiscal year. 
(IV) DISADVANTAGED ADULT.—Subject to sub-
clause (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 determina-
tion 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
H. R. 803—90 
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 unemployment 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 TRAINING ACTIVI-
TIES.— 
(A) RESERVATION FOR OUTLYING AREAS.— 
(i) IN GENERAL.—From the amount made available 
under subsection (a)(2)(A) for a fiscal year, the Sec-
retary shall reserve not more than 1⁄4 of 1 percent 
of the amount appropriated under section 136(c) 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 
127(b)(1)(B). 
(B) STATES.— 
(i) IN
GENERAL.—The Secretary shall allot the 
amount referred 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 state-
wide workforce investment activities. 
(ii) FORMULA.—Subject to clause (iii), of the 
amount— 
(I) 331⁄3 percent shall be allotted on the basis 
of the relative number of unemployed individuals 
in each State, compared 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 individuals in each State 
who have been unemployed for 15 weeks or more, 
compared 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
H. R. 803—91 
this subparagraph, for fiscal year 2016 and each subse-
quent fiscal year, the Secretary shall ensure the fol-
lowing: 
(I) MINIMUM PERCENTAGE AND ALLOTMENT.— 
The Secretary shall ensure that no State shall 
receive an allotment for a fiscal year that is an 
amount based on 90 percent of the allotment 
percentage of the State for the preceding fiscal 
year. 
(II) MAXIMUM PERCENTAGE.—Subject to sub-
clause (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 allotment 
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 ‘‘allot-
ment 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 excess 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 allotments made under this 
section or a corresponding provision of the Workforce Invest-
ment Act of 1998 for employment and training activities and 
statewide workforce investment activities (referred to individ-
ually in this subsection 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 subsection (b)(1)(B) 
(relating to adult employment and training) or for programs 
funded under subsection (b)(2)(B) (relating to dislocated worker 
employment and training) is equal to the amount by which 
the unobligated balance of the State allotments for adult 
employment 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 
determination under this paragraph is made, exceeds 20 per-
cent 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 subsection 
(b) for the program year for which the determination is made, 
as compared to the total amount of the State allotments under
H. R. 803—92 
paragraph (1)(B) or (2)(B), respectively, of subsection (b) for 
all eligible States for such program 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 avail-
able for reallotment under paragraph (2) for the program 
year for which the determination under paragraph (2) is 
made; and 
(B) with respect to funds allotted through a State 
allotment for dislocated worker employment 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 determination under para-
graph (2) is made. 
(5) PROCEDURES.—The Governor shall prescribe uniform 
procedures for the obligation of funds by local areas within 
the State in order to avoid the requirement that funds be 
made available for reallotment under this subsection. The Gov-
ernor shall further prescribe equitable procedures for making 
funds available from the State and local areas in the event 
that a State is required to make funds available for reallotment 
under this subsection. 
SEC. 133. WITHIN STATE ALLOCATIONS. 
(a) RESERVATIONS FOR STATE ACTIVITIES.— 
(1) STATEWIDE WORKFORCE INVESTMENT ACTIVITIES.—The 
Governor shall make the reservation required under section 
128(a). 
(2) STATEWIDE RAPID RESPONSE ACTIVITIES.—The Governor 
shall reserve not more than 25 percent of the total amount 
allotted to the State under section 132(b)(2)(B) for a fiscal 
year for statewide rapid response activities described in section 
134(a)(2)(A). 
(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 activities under section 132(b)(1)(B) 
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 dis-
located worker employment and training activities and 
statewide workforce investment activities under section 
132(b)(2)(B) 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 paragraph (1)(A) to local areas, a State may allo-
cate— 
(I) 331⁄3 percent of the funds on the basis 
described in section 132(b)(1)(B)(ii)(I);
H. R. 803—93 
(II) 331⁄3 percent of the funds on the basis 
described in section 132(b)(1)(B)(ii)(II); and 
(III) 331⁄3 percent of the funds on the basis 
described in clauses (ii)(III) and (iii) of section 
132(b)(1)(B). 
(ii) MINIMUM PERCENTAGE.—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 alloca-
tions to local areas to comply with the preceding sen-
tence shall be obtained by ratably reducing the alloca-
tions to be made to other local areas under this 
subparagraph. 
(iii) DEFINITION.—In this subparagraph, the term 
‘‘allocation percentage’’, used with respect to fiscal year 
2015 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. The term, used with respect to fiscal year 
2013 or 2014, means a percentage of the amount allo-
cated to local areas under paragraphs (2)(A) and (3) 
of section 133(b) of the Workforce Investment Act of 
1998 (as in effect on the day before the date of enact-
ment of this Act), 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 TRAINING 
ACTIVITIES.— 
(i) ALLOCATION.—In allocating the funds described 
in paragraph (1)(B) to local areas, a State shall allocate 
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 available to the Governor to 
distribute amounts to address the State’s worker 
readjustment assistance needs. 
(ii) INFORMATION.—The information described in 
clause (i) shall include insured unemployment data, 
unemployment concentrations, plant closing and mass 
layoff data, declining industries data, farmer-rancher 
economic hardship data, and long-term unemployment 
data. 
(iii) MINIMUM PERCENTAGE.—The local area shall 
not receive an allocation percentage for fiscal year 
2016 or a subsequent 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. 
(iv) DEFINITION.—In this subparagraph, the term 
‘‘allocation percentage’’, used with respect to fiscal year 
2015 or a subsequent fiscal year, means a percentage 
of the funds referred to in clause (i), received through
H. R. 803—94 
an allocation made under this subparagraph for the 
fiscal year. The term, used with respect to fiscal year 
2014, means a percentage of the amount allocated to 
local areas under section 133(b)(2)(B) of the Workforce 
Investment Act of 1998 (as in effect on the day before 
the date of enactment of this Act), received through 
an allocation made under that section for fiscal year 
2014. 
(C) APPLICATION.—For purposes of carrying out 
subparagraph (A)— 
(i) references in section 132(b) to a State shall 
be deemed to be references to a local area; 
(ii) references in section 132(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 132(b)(1) to the term ‘‘excess number’’ shall 
be considered to be references to the term as defined 
in section 132(b)(1). 
(3) ADULT
EMPLOYMENT
AND
TRAINING
DISCRETIONARY 
ALLOCATIONS.—In lieu of making the allocation described in 
paragraph (2)(A), in allocating the funds described in paragraph 
(1)(A) 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 poverty in urban, rural, and subur-
ban 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) TRANSFER AUTHORITY.—A local board may transfer, if 
such a transfer is approved by the Governor, up to and 
including 100 percent of the funds allocated to the local area 
under paragraph (2)(A) or (3), and up to and including 100 
percent of the funds allocated to the local area under paragraph 
(2)(B), for a fiscal year between— 
(A) adult employment and training activities; and 
(B) dislocated worker employment and training activi-
ties. 
(5) ALLOCATION.— 
(A) IN GENERAL.—The Governor shall allocate the funds 
described in paragraph (1) to local areas under paragraphs 
(2) and (3) for the purpose of providing a single system 
of employment and training activities for adults and dis-
located workers in accordance with subsections (c) and 
(d) of section 134. 
(B) ADDITIONAL REQUIREMENTS.— 
(i) ADULTS.—Funds allocated under paragraph 
(2)(A) or (3) shall be used by a local area to contribute 
to the costs of the one-stop delivery system described 
in section 121(e) as determined under section 121(h)
H. R. 803—95 
and to pay for employment and training activities pro-
vided to adults in the local area, consistent with section 
134. 
(ii) DISLOCATED WORKERS.—Funds allocated under 
paragraph (2)(B) shall be used by a local area to con-
tribute to the costs of the one-stop delivery system 
described in section 121(e) as determined under section 
121(h) and to pay for employment and training activi-
ties provided to dislocated workers in the local area, 
consistent with section 134. 
(c) REALLOCATION AMONG LOCAL AREAS.— 
(1) IN GENERAL.—The Governor may, in accordance with 
this subsection and after consultation with the State board, 
reallocate to eligible local areas within the State amounts that 
are made available to local areas from allocations made under 
paragraph (2)(A) or (3) of subsection (b) or a corresponding 
provision of the Workforce Investment Act of 1998 for adult 
employment and training activities, or under subsection 
(b)(2)(B) or a corresponding provision of the Workforce Invest-
ment Act of 1998 for dislocated worker employment and 
training activities (referred to individually in this subsection 
as a ‘‘local allocation’’) and that are available for reallocation. 
(2) AMOUNT.—The amount available for reallocation for 
a program year— 
(A) for adult employment and training activities is 
equal to the amount by which the unobligated balance 
of the local 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 subparagraph is made, exceeds 20 percent of 
such allocation for the prior program year; and 
(B) for dislocated worker employment and training 
activities is equal to the amount by which the unobligated 
balance of the local allocation under subsection (b)(2)(B) 
for such activities, at the end of the program year prior 
to the program year for which the determination under 
this subparagraph 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— 
(A) with respect to such available amounts that were 
allocated under paragraph (2)(A) or (3) of subsection (b), 
an amount based on the relative amount of the local alloca-
tion under paragraph (2)(A) or (3) of subsection (b), as 
appropriate, for the program year for which the determina-
tion is made, as compared to the total amount of the 
local allocations under paragraph (2)(A) or (3) of subsection 
(b), as appropriate, for all eligible local areas in the State 
for such program year; and 
(B) with respect to such available amounts that were 
allocated under subsection (b)(2)(B), an amount based on 
the relative amount of the local allocation under subsection 
(b)(2)(B) for the program year for which the determination 
is made, as compared to the total amount of the local