ADULT TRAINING PROGRAM ALLOTMENT AND ALLOCATION.

SEC. 202. ADULT TRAINING PROGRAM ALLOTMENT AND ALLOCATION. Title II of the Act (as amended by section 201) is further amended by adding at the end the following: “SEC. 202. ALLOTMENT AND ALLOCATION. “(a) Allotment.— “(1) Territories.—Of the amount appropriated under section 3(a)(1) for each fiscal year and available to carry out this part, not more than one-quarter of 1 percent 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) State reservation.— After determining the amounts to be allotted under paragraph (1), the Secretary shall allot 77 percent of the remainder to the States for allocation to service delivery areas within each State. Each State shall allocate to each service delivery area within the State the amount determined by the Secretary for such service delivery area pursuant to the formula contained in subsection (b). The remaining 23 percent shall be allotted in accordance with subsection (c). “(b) Allocation to Service Delivery Areas.— “(1) Formula.— Subject to the provisions of paragraph (2), of the amounts allocated to service delivery areas for this part for each fiscal year— 106 STAT. 1053 “(A) 33⅓ percent shall be allocated on the basis of the relative number of unemployed individuals residing in areas of substantial unemployment within each service delivery area as compared to the total number of such unemployed individuals in all such areas of substantial unemployment in all service delivery areas in all States; “(B) 33⅓ percent shall be allocated on the basis of the relative excess number of unemployed individuals within each service delivery area as compared to the total excess number of unemployed individuals in all service delivery areas in all States; and “(C) 33⅓ percent shall be allocated on the basis of the relative number of economically disadvantaged adults within each service delivery area as compared to the total number of economically disadvantaged adults in all service delivery areas in all States, except that for any service delivery area described in section 101(a)(4)(A)(iii), the allocation 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 shall be allocated less than 90 percent of its allocation percentage for the fiscal year preceding the fiscal year for which the determination is made. “(B) Maximum percentage.— No service delivery area shall be allocated more than 130 percent of its allocation percentage for the fiscal year preceding the fiscal year for which the determination is made. “(C) State minimum.—Notwithstanding subparagraphs (A) and (B), the total allocation for all service delivery areas within any one State shall not be less than one-quarter of 1 percent of the total allocated to all service delivery areas in all States. “(D) Allocation percentage.— “(i) In general.— Except as provided in clause (ii), for purposes of subparagraphs (A) and (B), 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 subparagraphs (A) and (B), 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 part A of title II. “(c) State Activities.— “(1) Division.— Of the remaining 23 percent of funds available for allotment to States under this part for each fiscal year— “(A) 5 percent of the funds available for such allotment under this part shall be allotted to the States in accordance with paragraph (2), for overall administration, management, and auditing activities relating to programs under this title and for activities described in sections 121 and 122; “(B) 5 percent of the funds available for such allotment under this part shall be allotted to the States in accordance106 STAT. 1054 with paragraph (2), to provide incentive grants authorized under section 106(b)(7), in accordance with paragraph (3); “(C) 8 percent of the funds available for such allotment under this part shall be allotted to the States in accordance with paragraph (2) to carry out section 123; and “(D) 5 percent of the funds available for such allotment under this part shall be allotted to carry out section 204(d). “(2) Formula for allotment.— The allotments to each State described in paragraph (1) shall be based on the relative amount of funds allocated to all service delivery areas within such State under subsection (b) as compared to the amount of funds allocated to all service delivery areas in all States under subsection (b). “(3) 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 453(b); and “(ii) shall, to the extent practicable, be used to coordinate the activities under subparagraph (A) with the activities of the Network under section 453(b). “(d) Definitions and Rule.— “(1) Definitions.— As used in this section: “(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 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 673(2) of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 9902(2)); or “(ii) 70 percent of the lower living standard income level. “(B) Excess number.— The term ‘excess number’ means, with respect to the excess number of unemployed individuals within a service delivery area, 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 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. 106 STAT. 1055 “(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.”.