(A) Reservation for outlying areas
(i) In general From the amount made available under subsection (a)(1) of this section for a fiscal year, the Secretary shall reserve not more than 1/4 of 1 percent to provide assistance to the outlying areas.
(ii) Applicability of additional requirements 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
2852 (b)(1)(B) of this title, except that the reference in section
2852 (b)(1)(B)(i)(II) of this title to sections 252(d) and 262(a)(1) of the Job Training Partnership Act shall be deemed to be a reference to section 202(a)(1) of the Job Training Partnership Act (as in effect on the day before August 7, 1998).
(B) States
(i) In general After determining the amount to be reserved under subparagraph (A), the Secretary shall allot the remainder of the amount referred to in subsection (a)(1) of this section for a fiscal year to the States pursuant to clause (ii) for adult employment and 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 a local area designated under section
2831 (a)(2)(B) of this title, 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 following:
(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 allotment of the State under section 202 of the Job Training Partnership Act (as in effect on the day before August 7, 1998) for fiscal year 1998.
(II) Small State minimum allotment Subject to subclauses (I), (III), and (IV), the Secretary shall ensure that no State shall receive an allotment 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 subclause (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 $960,000,000, the minimum allotments under subclauses (I) and (II) shall be calculated by the methodology for calculating the corresponding allotments under part A of title II of the Job Training Partnership Act, as in effect on July 1, 1998.
(v) Definitions For the purpose of the formula specified in this subparagraph:
(I) Adult The term adult means an individual 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 2000 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 1998 or 1999, means the percentage of the amounts allotted to States under section 202(a) of the Job Training Partnership Act (as in effect on the day before August 7, 1998) that is received under such section by the State involved for fiscal year 1998 or 1999.
(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 subchapter 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 subclause (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 determination 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 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.
