1. (a) Definitions. The following words and terms when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

   1. (1) Area of substantial unemployment--As defined in WIA §127(b)(2)(B) (29 U.S.C.A. §2852(b)(2)(B)) and WIA §132(b)(1)(B)(v)(III) (29 U.S.C.A. §2862(b)(1)(B)(v)(III)).
   2. (2) Disadvantaged adult--As defined in WIA §132(b)(1)(B)(v)(IV) (29 U.S.C.A. §2862(b)(1)(B)(v)(IV)).
   3. (3) Disadvantaged youth--As defined in WIA §127(b)(2)(C) (29 U.S.C.A. §2852(b)(2)(C)).

2. (b) Scope and Authority. Funds available to the Agency under Title I of WIA for youth activities, adult employment and training activities, and dislocated worker employment and training activities shall be allocated to workforce areas or reserved for statewide activities in accordance with:

   1. (1) the provisions of prior consistent state law as authorized by WIA §194(a)(1)(A) (29 U.S.C.A. §2944(a)(1)(A)), including but not limited to Texas Labor Code §302.062, as amended, and Subchapter B of this title (relating to Allocations and Funding);
   2. (2) the WIA and related federal regulations as amended; and
   3. (3) the WIA State Plan.
3. (c) Reserves and Allocations for Youth and Adult Employment and Training Activities. The Commission shall reserve no more than 15% and shall allocate to workforce areas at least 85% of the youth activities and adult employment and training activities allotments from the United States Department of Labor.

4. (d) Reserves and Allocations for Dislocated Worker Employment and Training Activities. The Commission shall allocate the dislocated worker employment and training allotment in the following manner:

   1. (1) reserve no more than 15% for statewide workforce investment activities;
   2. (2) reserve no more than 25% for state level rapid response and additional local assistance activities and determine the proportion allocated to each activity; and
   3. (3) allocate at least 60% to workforce areas.

5. (e) State Adopted Elements, Formulas, and Weights. The Commission shall implement the following elements, formulas, and weights adopted for Texas in the WIA State Plan in allocating WIA funds to workforce areas.

   1. (1) WIA adult employment and training activities funds not reserved by the Commission under §800.63(c) of this section shall be allocated to the workforce areas as provided in WIA §133(b)(2) (29 U.S.C.A. §2863(b)(2)) based on the following:

      1. (A) 33 1/3 percent on the basis of the relative number of unemployed individuals in areas of substantial unemployment in each workforce area, compared to the total number of unemployed individuals in areas of substantial unemployment in the State;
      2. (B) 33 1/3 percent on the basis of the relative excess number of unemployed individuals in each workforce area, compared to the total excess number of unemployed individuals in the State; and
      3. (C) 33 1/3 percent on the basis of the relative number of disadvantaged adults in each workforce area, compared to the total number of disadvantaged adults in the State.

   2. (2) WIA dislocated worker employment and training activities funds not reserved by the State under §800.63(d) of this section shall be allocated to the workforce areas as provided in WIA §133(b)(2) (29 U.S.C.A. §2863(b)(2)) based on the following workforce area measures:

      1. (A) insured unemployment;
      2. (B) average unemployment;
      3. (C) Worker Adjustment and Retaining Notification Act (29 U.S.C.A. §2101 et seq.) data;
      4. (D) declining industries;
      5. (E) farmer-rancher employment; and
      6. (F) long-term unemployment.

   3. (3) WIA youth activities funds not reserved by the Commission under §800.63(c) of this section shall be allocated to the workforce areas as provided in WIA §128(b)(2) (29 U.S.C.A. §2853(b)(2)) based on the following:

      1. (A) 33 1/3 percent on the basis of the relative number of unemployed individuals in areas of substantial unemployment in each workforce area, compared to the total number of unemployed individuals in all areas of substantial unemployment in the State;
      2. (B) 33 1/3 percent on the basis of the relative excess number of unemployed individuals in each workforce area, compared to the total excess number of unemployed individuals in the State; and
      3. (C) 33 1/3 percent on the basis of the relative number of disadvantaged youth in each workforce area, compared to the total number of disadvantaged youth in the State.
6. (f) Availability of Funds. The Commission shall allocate funds not reserved under §800.62(c) and (d) of this section and the Agency shall award the funds through master board contract amendments within 30 days after the date the funds are made available to the State or within seven days after the Governor's approval of the local plan, whichever is later.
7. (g) Reserved Funds. The Commission shall allocate the funds reserved under §§800.63(c) and 800.63(d)(1) of this section to provide required and, if funds are available, allowable statewide activities as outlined in WIA §§129 and 134 (29 U.S.C.A. §§2854 and 2864). The Agency shall utilize and expend the funds reserved under §800.63(d)(2) of this section for statewide rapid response activities as described in WIA §134(a)(2)(A).
8. (h) Expenditure Level for Statewide Activity Funding. Effective in WIA program year 2001, a Board shall demonstrate an 80 percent expenditure level of prior year WIA allocated funds in order to be eligible to receive statewide activity funding. In WIA program year 2000, a Board shall demonstrate a 60 percent expenditure level of prior year WIA allocated funds in order to be eligible to receive statewide activity funding.

Source Note:The provisions of this §800.63 adopted to be effective September 12, 2000, 25 TexReg 9014.