Of the funds allotted to the Governor by the Secretary under
Sec. Sec. 631.11 and 631.12 of this part:
(a) The Governor shall issue allocations to substate grantees, the
sum of which shall be no less than 50 percent of the State's allotment
(section 302(d)).
(b)(1) The Governor shall prescribe the formula to be used in
issuing substate allocations required under paragraph (a) of this
section to substate grantees.
(2) The formula prescribed pursuant to paragraph (b)(1) of this
section shall utilize the most appropriate information available to the
Governor. In prescribing the formula, the Governor shall include (but
need not be limited to) the following information:
(i) Insured unemployment data;
(ii) Unemployment concentrations;
(iii) Plant closing and mass layoff data;
(iv) Declining industries data;
(v) Farmer-rancher economic hardship data; and
(vi) Long-term unemployment data.
(3) The Governor may allow for an appropriate weight for each of the
formula factors set forth in paragraph (b)(2) of this section. A weight
of zero for any of the factors required in section 302(d) of the Act and
identified in paragraph (b)(2) of this section shall only be made when a
review of available data indicates that the factor is not relevant to
determining the incidence of need for worker dislocation assistance
within the State. The formula may be amended no more frequently than
once each program year (section 302(d)).
(c) The Governor may reserve an amount equal to not more than 40
percent of the funds allotted to the State under Sec. 631.11 and
Sec. 631.12 of this part for State activities and for discretionary
allocations to substate grantees (section 302(c)(1)).
(d) The Governor may reserve an additional amount equal to not more
than 10 percent of the funds allotted to the State under Sec. 631.11 of
this part. The Governor shall allocate such funds, subject to the SJTCC
or HRIC review and comment, during the first three
quarters of the program year among substate grantees on the basis of
need. Such funds shall be allocated to substate grantees and shall not
be used for statewide activities. Such funds shall be included in each
substate grantee's allocation for purposes of cost limitations, as
described in Sec. 631.14 of this part (sections 302(c)(2) and
317(1)(B)).
