§1602. Allotment and allocation

(a) Allotment

(1) Territories

Not more than $5,000,000 of the amount appropriated pursuant to section 1502(a)(1) of this title for each fiscal year and available for this part shall be allotted among Guam, the Virgin Islands, American Samoa, the Commonwealth of the Northern Mariana Islands, the Federated States of Micronesia, the Republic of the Marshall Islands, and Palau.

(2) States

Subject to the provisions of paragraph (3), of the remainder of the amount available for this part for each fiscal year-

(A) 331/3 percent shall be allotted on the basis of the relative number of unemployed individuals residing in areas of substantial unemployment in each State as compared to the total number of such unemployed individuals in all such areas of substantial unemployment in all the States;

(B) 331/3 percent shall be allotted on the basis of the relative excess number of unemployed individuals who reside in each State as compared to the total excess number of unemployed individuals in all the States; and

(C) 331/3 percent shall be allotted on the basis of the relative number of economically disadvantaged adults within each State compared to the total number of economically disadvantaged adults in all States, except that, for the allotment for any State in which there is any service delivery area described in section 1511(a)(4)(A)(iii) of this title, the allotment shall be based on the higher of the number of adults in families with an income below the low-income level in such area or the number of economically disadvantaged adults in such area.

(3) Limitations

(A) State minimum

No State shall receive less than one-quarter of 1 percent of the amounts available for allotment to the States under this subsection from the remainder described in paragraph (2) for each fiscal year.

(B) Minimum percentage

No State shall be allotted less than 90 percent of its allotment percentage for the fiscal year preceding the fiscal year for which the determination is made.

(C) Allotment percentage

(i) In general

Except as provided in clause (ii), for purposes of subparagraph (B), the allotment percentage of a State for a fiscal year shall be the percentage of funds allotted to the State under this subsection.

(ii) Fiscal year 1992

For purposes of subparagraph (B), the allocation percentage of a State for fiscal year 1992 shall be the percentage of funds allotted to the State under section 1601 of this title, as in effect on the day before September 7, 1992.

(b) Allocation to service delivery areas

(1) Formula

The Governor shall, in accordance with section 1572 of this title, allocate 77 percent of the allotment of the State under subsection (a) of this section for each fiscal year among service delivery areas within the State, and shall ensure that, subject to the provisions of paragraph (3), of the amount allocated under this subsection-

(A) 331/3 percent shall be allocated on the basis of the relative number of unemployed individuals residing in areas of substantial unemployment in each service delivery area as compared to the total number of such unemployed individuals in all such areas of substantial unemployment in the State;

(B) 331/3 percent shall be allocated on the basis of the relative excess number of unemployed individuals who reside in each service delivery area as compared to the total excess number of unemployed individuals in all service delivery areas in the State; and

(C) 331/3 percent shall be allocated on the basis of the relative number of economically disadvantaged adults within each service delivery area compared to the total number of economically disadvantaged adults in the State, except that the allocation for any service delivery area described in section 1511(a)(4)(A)(iii) of this title shall be based on the higher of the number of adults in families with an income below the low-income level in such area or the number of economically disadvantaged adults in such area.

(2) Limitations

(A) Minimum percentage

No service delivery area within any State shall be allocated an amount equal to less than 90 percent of the average of its allocation percentage for the 2 preceding fiscal years preceding the fiscal year for which the determination is made. If the amounts appropriated pursuant to section 1502(a)(1) of this title for a fiscal year and available to carry out this part are not sufficient to provide an amount equal to at least 90 percent of such allocation percentage to each such area, the amounts allocated to each area shall be ratably reduced.

(B) Allocation percentage

(i) In general

Except as provided in clause (ii), for purposes of subparagraph (A), the allocation percentage of a service delivery area for a fiscal year shall be the percentage of funds allocated to the service delivery area under this subsection.

(ii) Fiscal year 1992

For purposes of subparagraph (A), the allocation percentage of a service delivery area for fiscal year 1992 shall be the percentage of funds allocated to the service delivery area under this part.

(c) State activities

(1) Division

Of the remaining 23 percent of the allotment of the State under subsection (a) of this section for each fiscal year-

(A) 5 percent of such allotment of the State for each fiscal year shall be available to the Governor of the State to be used for overall administration, management, and auditing activities relating to programs under this subchapter and for activities described in sections 1531 and 1532 of this title;

(B) 5 percent of such allotment of each State for each fiscal year shall be available to provide incentive grants authorized under section 1516(b)(7) of this title, in accordance with paragraph (2);

(C) 8 percent of the allotment of each State for each fiscal year shall be available to carry out section 1533 of this title; and

(D) 5 percent of such allotment of each State for each fiscal year shall be available to carry out section 1604(d) of this title.

(2) Other uses

(A) Capacity building and technical assistance

The Governor may use up to 33 percent of the amount allotted under paragraph (1)(B) for providing capacity building and technical assistance to service delivery areas and service providers. Such use of funds may include the development and training of service delivery area and service provider staff and the development of exemplary program activities.

(B) Nonduplication and coordination

Funds used under subparagraph (A)-

(i) may not be used to duplicate the activities of the Capacity Building and Information and Dissemination Network established under section 1733(b) of this title; and

(ii) shall, to the extent practicable, be used to coordinate the activities under subparagraph (A) with the activities of the Network under section 1733(b) of this title.

(d) Definitions and rule

As used in this section:

(1) Definitions

(A) Economically disadvantaged adult

The term "economically disadvantaged adult" means an individual who is age 22 through 72 and who has, or is a member of a family that has, received a total family income (exclusive of unemployment compensation, child support payments, and welfare payments) that, in relation to family size, was not in excess of the higher of-

(i) the official poverty line (as defined by the Office of Management and Budget, and revised annually in accordance with section 9902(2) of title 42; ¹ or

(ii) 70 percent of the lower living standard income level.

(B) Excess number

The term "excess number" means-

(i) with respect to the excess number of unemployed individuals within a State-

(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 unemployment in such State; and

(ii) with respect to the excess number of unemployed individuals within a service delivery area-

(I) the number that represents the number of unemployed individuals in excess of 4.5 percent of the civilian labor force in the service delivery area; 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 unemployment in such service delivery area.

(C) State

The term "State" means any of the several States, the District of Columbia, and the Commonwealth of Puerto Rico.

(2) Special rule

For the purposes of this section, 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 economically disadvantaged adults.

(Pub. L. 97–300, title II, §202, as added Pub. L. 102–367, title VII, §701(c)(1), Sept. 7, 1992, 106 Stat. 1104 .)

Repeal of Section

Pub. L. 105–220, title I, §199(b)(2), (c)(2)(B), Aug. 7, 1998, 112 Stat. 1059 , provided that this section is repealed effective July 1, 2000.

Prior Provisions

A prior section 1602, Pub. L. 97–300, title II, §202, Oct. 13, 1982, 96 Stat. 1359 ; Pub. L. 99–496, §§5(a), 6, Oct. 16, 1986, 100 Stat. 1262 ; Pub. L. 100–628, title VII, §713(a), Nov. 7, 1988, 102 Stat. 3255 , related to allocation within States of funds under this subchapter, prior to repeal by Pub. L. 102–367, title II, §201, title VII, §701(a), Sept. 7, 1992, 106 Stat. 1052 , 1103, effective July 1, 1993.

Effective Date; Transition Provisions

Pub. L. 102–367, title VII, §701(c), (d), Sept. 7, 1992, 106 Stat. 1103 , 1107, provided that amendment of this section by section 202 of Pub. L. 102–367 would take effect rather than amendment by section 701(c)(1) of Pub. L. 102–367 if certain funding conditions were fulfilled in fiscal year 1993 or in subsequent fiscal years (which conditions were never fulfilled), prior to repeal by Pub. L. 105–277, div. A, §101(f) [title VIII, §405(d)(22)], Oct. 21, 1998, 112 Stat. 2681–337 , 2681-423.

Section Referred to in Other Sections

This section is referred to in sections 1516, 1532, 1533, 1606, 1642, 1733, 1791a, 2862, 2918 of this title; title 20 section 6215.

¹ So in original. A closing parenthesis probably should precede the semicolon.