(1) IN GENERAL.—Subject to paragraph (2),
the Secretary shall allot the amount available in
each fiscal year under subsection (a)(1) on the basis
of the following factors:
(A) One-third of such amount shall be al-
lotted among the States on the basis of the rel-
ative number of unemployed individuals who re-
side in each State as compared to the total
number of unemployed individuals in all the
States.
(B) One-third of such amount shall be al-
lotted among the States on the basis of the rel-
ative excess number of unemployed individuals
who reside in each State as compared to the
total excess number of unemployed individuals
in all the States. For purposes of this para-
graph, the term ‘‘excess number’’ means the
number which represents unemployed individ-
uals in excess of 4.5 percent of the civilian
labor force in the State.
(C) One-third of such amount shall be al-
lotted among the States on the basis of the rel-
ative number of individuals who have been un-
employed for 15 weeks or more and who reside
in each State as compared to the total number
of such individuals in all the States.
(2) USE OF DATA RELATING TO PERMANENT
LAYOFFS AND PLANT CLOSINGS.—As soon as satis-
factory data are available under section 124(b)(3),
the Secretary shall allot the amount available in
each fiscal year under subsection (a)(1) as follows:
(A) 25 percent of such amount shall be al-
lotted on the basis of each of the factors de-
scribed in subparagraphs (A), (B), and (C) of
paragraph (1), respectively, for a total of 75
percent of the amount allotted.
(B) 25 percent of such amount shall be al-
lotted on the basis of the relative number of
dislocated workers who reside in each State as
compared to the total number of dislocated
workers in all States.
(3) LIMITATIONS.—
(A) MINIMUM
PERCENTAGE.—No State
shall be allotted less than 90 percent of its al-
lotment percentage for the fiscal year preceding
the fiscal year for which the determination is
made.
(B) MAXIMUM
PERCENTAGE.—No State
shall be allotted more than 130 percent of its
allotment percentage for the fiscal year preced-
ing the fiscal year for which the determination
is made.
(C) ALLOTMENT PERCENTAGE.—
(i) IN GENERAL.—Except as provided
in clause (ii), for purposes of this para-
graph the allotment percentage of a State
for a fiscal year shall be the percentage of
funds allotted to the State under this sub-
section.
(ii) FISCAL YEAR 1994.—For the pur-
poses of this paragraph, the allotment per-
centage for fiscal year 1994 shall be the
percentage of funds allotted to the State
under section 302 of the Job Training
Partnership Act (29 U.S.C. 1652).
(c) RESERVATIONS FOR STATE ACTIVITIES.—
(1) IN GENERAL.—The Governor may reserve
not more than 30 percent of the amount allotted to
the State under subsection (b) for any fiscal year to
carry out State activities. Of such amount allotted to
the State—
(A) not more than 25 percent may be used
to carry out State activities under subtitle A of
this title; and
(B) not more than 5 percent may be used
for the costs of administration of programs au-
thorized under this title, as determined by the
Secretary.
(2) EXCLUSION OF CERTAIN COSTS.—For pur-
poses of paragraph (1)(B), the term ‘‘costs of ad-
ministration of programs authorized under this
title’’ does not include any costs associated with the
establishment and operation of the State and local
labor market information program under section
113.
(3) MAINTENANCE OF EFFORT WITH RESPECT
TO
STATE
EMPLOYMENT
SERVICE
OFFICES.—If
amounts reserved under paragraph (1) for a fiscal
year are expended for activities of State employment
service offices in the State, the Governor shall en-
sure that State funds expended for such activities
for such fiscal year are not reduced from the amount
of State funds expended for such activities for the
1993 fiscal year.
(d) WITHIN STATE DISTRIBUTION.—
(1) ALLOCATION TO SUBSTATE AREAS.—
(A) IN GENERAL.—After determining the
amounts to be reserved under subsection (c),
the Governor shall allocate the remainder of the
amount allotted to the State under subsection
(b) to substate areas to carry out activities au-
thorized under this title based on an allocation
formula prescribed by the Governor in accord-
ance with subparagraph (B).
(B) ALLOCATION FORMULA.—The alloca-
tion formula prescribed by the Governor shall
include the factors described in subsection (b)
and such additional objective, measurable, and
statistically-valid factors, including farmer-
rancher economic hardship data, as the Gov-
ernor determines to be appropriate. Such for-
mula may be amended by the Governor not
more than once for each program year and shall
be included in the State plan under section
111(b).
(2) ADMINISTRATIVE COSTS.—
(A) IN GENERAL.—Except as provided in
subparagraph (B), not more than 15 percent of
the amount allocated to a substate area under
paragraph (1) for each program year shall be
available for the costs of administration.
(B) WAIVER.—
(i) IN GENERAL.—A substate grantee
may apply to the Governor for a waiver of
the requirement under subparagraph (A),
except that any such waiver may not allow
more than 20 percent of amount described
in such subparagraph to be available for
the costs of administration.
(ii) APPROVAL.—The Governor may
approve a waiver under clause (i) in whole
or in part if the substate grantee dem-
onstrates that additional resources are nec-
essary for the effective and efficient admin-
istration of the activities of the substate
grantee under this title.
(e) RESERVATION FOR THE TERRITORIES.—Of the
amount reserved by the Secretary under subsection (a)(2)
for any fiscal year, not more than 0.3 percent of such
amount shall be allotted among the Commonwealth of the
Northern Mariana Islands, American Samoa, Guam, the
Virgin Islands, the Federated States of Micronesia, the
Republic of the Marshall Islands, and the Republic of
Palau to carry out activities authorized under this title.
(f) RESERVATIONS
FOR NATIONAL ACTIVITIES.—
After determining the amounts to be allocated under sub-
section (e), the Secretary shall use the remainder reserved
under subsection (a)(2) for fiscal year 1995 and each suc-
ceeding fiscal year in accordance with the following:
(1) Not less than 85 percent shall be available
for national discretionary grants under sections 122
and 123.
(2)(A) Subject to subparagraph (B), not less
than 5 percent shall be available for each of the fol-
lowing:
(i) Evaluation of program performance, re-
search, and demonstration projects under sec-
tion 124.
(ii) Capacity building, staff development
and training, and technical assistance under
section 125.
(B) Not more than 15 percent shall be available
for projects and activities under subparagraph (A).
SEC. 102. RECAPTURE AND REALLOTMENT OF UNEX-
PENDED FUNDS.
(a) GENERAL REALLOTMENT AUTHORITY.—For pro-
gram years beginning July 1, 1996, and thereafter, the
Secretary shall, in accordance with the requirements of
this section, reallot to eligible States the funds allotted to
States from funds appropriated for such program year
that are available for reallotment.
(b) AMOUNT AVAILABLE FOR REALLOTMENT.—
(1) IN GENERAL.—Except as provided in para-
graph (2), the amount available for reallotment is
equal to the sum of—
(A) the amount by which the unexpended
balance of the State allotment at the end of the
program year prior to the program year for
which the determination under this section is
made exceeds 20 percent of such allotment for
that prior program year; and
(B) the unexpended balance of the State
allotment from any program year prior to the
program year in which there is such excess.
(2) EXCEPTION.—Funds awarded from discre-
tionary funds of the Secretary under subtitle B shall
not 
be 
included 
in 
calculating 
any 
of 
the
reallotments described in this section.
(c) METHOD OF REALLOTMENT.—
(1) IN GENERAL.—The Secretary shall deter-
mine the amount that would be allotted to each eligi-
ble State by using the factors described in section
101(b) to allocate among eligible States the amount
available pursuant to subsection (b).
(2) ELIGIBLE HIGH UNEMPLOYMENT STATES.—
The Secretary shall allot to each eligible high unem-
ployment State the amount determined for that
State under the procedure described in paragraph
(1).
(3) ELIGIBLE STATES.—The Secretary shall, by
using the factors described in section 101(b), allot to
eligible States the amount available that remains
after the allotment required by paragraph (2).
(d) STATE PROCEDURES WITH RESPECT TO REAL-
LOTMENT.—The Governor of each State shall prescribe
uniform procedures for the expenditure of funds by sub-
state grantees in order to avoid the requirement that
funds be made available for reallotment under subsection
(b), including procedures which give priority for the real-
lotment of unexpended funds to substate grantees located
in substate areas with high unemployment. The Governor
shall further prescribe equitable procedures for making
funds available from the State and substate grantees in
the event that a State is required to make funds available
for reallotment under such subsection.
(e) DEFINITIONS.—For purposes of this section, the
following definitions apply:
(1) ELIGIBLE
STATE.—The term ‘‘eligible
State’’ means a State which has expended at least
80 percent of its allotment for the program year
prior to the program year for which the determina-
tion under this section is made.
(2) ELIGIBLE HIGH UNEMPLOYMENT STATE.—
The term ‘‘eligible high unemployment State’’ means
a State—
(A) which meets the requirement in sub-
section (c)(1); and
(B)(i) as soon as satisfactory data are
available under section 124(b)(3), which is
among the States in which a higher relative
number of dislocated workers reside, as deter-
mined in accordance with such data; or
(ii) which is among the States which has
an unemployment rate greater than the national
average unemployment for the most recent 12
months for which satisfactory data are avail-
able.
SEC. 103. ELIGIBILITY FOR SERVICES.
(a) IN GENERAL.—An individual shall be eligible to
receive services under this title if such individual—
(1) has been permanently laid off from full-
time, part-time, or seasonal (including migrant and
seasonal farmworkers and fishermen) employment
within the preceding 12-month period, and—
(A) such individual is unlikely to obtain
employment in the same or similar occupation
due to obsolete skills or a lack of employment
opportunities; or
(B) such layoff resulted from any perma-
nent closure or any substantial layoff at a
plant, facility, or enterprise;
(2) has received a notice that such individual
will be permanently laid off, and—
(A) such individual is unlikely to obtain
employment in the same or similar occupation
due to obsolete skills or a lack of employment
opportunities; or
(B) such layoff will result from any perma-
nent closure or substantial layoff at a plant, fa-
cility, or enterprise;
(3) is employed at a facility where the employer
has publicly announced that such facility will be
closed within one year and such individual is un-
likely to—
(A) remain employed with such employer
at another location; or
(B) retire permanently from the labor
force on or before such closure;
(4) is long-term unemployed and has limited op-
portunities for employment in the same or similar