(a) Retraining services. Of the funds allocated to a substate
grantee under part A of Title III for any program year, not less than 50
percent shall be expended for retraining services specified under
section 314(d) of the Act, unless a waiver of this requirement is
granted by the Governor. The Governor shall prescribe criteria that will
allow substate grantees to apply in advance
for a waiver of this requirement, pursuant to section 315(a)(2) of the
Act. The Governor shall prescribe the time and form for the submission
of an application for such a waiver, as provided for at section
315(a)(3) of the Act. The Governor shall not grant a waiver that allows
less than 30 percent of the funds expended by a substate grantee to be
expended for retraining activities.
(b) Needs-related payments and supportive services. Of the funds
allocated to the Governor, or allocated to any substate grantee, under
part A of Title III for any program year, not more than 25 percent may
be expended to provide needs-related payments and other supportive
services.
(c) Administrative cost. Of the funds allocated to the Governor, or
allocated to any substate grantee, under part A of Title III for any
program year, not more than 15 percent may be expended to cover the
administrative cost of programs.
(d) Reallotted funds are subject to the cost limitations in
paragraphs (a), (b) and (c) of this section.
(e) Funds allocated (or distributed) to substate areas under the
provisions of section 302(c)(1)(E) of the Act shall be considered funds
allocated to a substate grantee for the program year of the funds'
initial allotment to the State, and included in the cost limitations in
paragraphs (a), (b) and (c) of this section.
(f) Funds reserved by the Governor under the provisions of Section
302(c)(1) of the Act, other than funds distributed to substate grantees
under the provisions of JTPA section 302(c)(1)(E), shall be considered
funds allocated to the Governor for the program year of the funds'
initial allotment to the State and included in the cost limitations
applicable to the Governor.
(g) States and substate grantees shall have the full period of time
that the funds are available to them to comply with the cost limitations
described in JTPA section 315 and paragraphs (a), (b), and (c) of this
section.
(h) Combination of funds. (1) Substate grantees within a State may
combine funds allocated under part A of Title III for provision of
services to eligible dislocated workers from two or more substate areas.
Funds contributed by the substate grantees under this section remain
subject to the cost limitations which apply to each substate grantee's
total allocation (section 315(d)).
(2) To combine funds under this provision, substate grantees must be
in contiguous substate areas or part of the same labor market area.
(i) For the purposes of this section:
(1) Allotment to the State means allotted by the formula described
in section 302(b) of the Act, as adjusted by reallotments among the
States, in accordance with section 303 of the Act. For purposes of
determining availability and of applying cost limitations, funds will
retain the identity of the program year in which they were initially
allotted to a State, irrespective of subsequent reallotments.
(2) Allocated to the substate grantee means allocated by the formula
prescribed by the Governor under section 302(b) of the Act, and
allocated (or distributed) under the provisions of section 302(c)(1)(E),
as adjusted by within State reallocations implemented by the Governor
through procedures established pursuant to section 303(d) of the Act.
For purposes of determining availability and of applying cost
limitations, funds will retain the identity of the program year in which
they were initially allotted to the State.
(3) Allocated to the Governor refers to funds reserved by the
Governor for use in accordance with the provisions of section 302(c)(1)
of the Act, exclusive of any such funds which are distributed or
allocated to substate grantees pursuant to section 302(c)(1)(E).
(j) The cost limitations described in this section do not apply to
any designated substate grantee which served as a concentrated
employment program grantee for a rural area under the Comprehensive
Employment and Training Act (section 108(d)).
