shall not exceed the difference between the costs of recruiting, training, and providing supportive services for low-income persons and those regularly employed,

(6) services to individuals to enable them to retain employment,

(7) payment of allowances to persons in training for which they receive no remuneration and payment of such allowances for transportation, subsistence, or other expenses incurred in participating in manpower services or employment as are necessary to enable the individual to participate therein,

(8) supportive services to enable individuals to take advantage of employment opportunities, including necessary health care and medical services, child care, residential support, assistance in securing bonds, or any other necessary assistance incident to employment, and any other service needed to participate in employment or manpower services,

(9) development of information concerning the labor market and activities, such as job restructuring, to make it more responsive to objectives of the manpower services program,

(10) manpower training, employment opportunities, and related services conducted by community-based organizations,

(11) transitional public service employment programs, and

(12) any programs authorized by part A of subchapter III of this chapter and by subchapter IV of this chapter.

(Pub. L. 93-203, title I, § 101, Dec. 28, 1973, 87 Stat. 840.)

EFFECTIVE DATE

Section effective Dec. 28, 1973, see section 615 of Pub. L. 93-203, set out as a note under section 801 of this title. SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 818, 983 of this title.

§ 812. Prime sponsors.

(a) The Secretary may make financial assistance available to a prime sponsor to enable it to carry out all or a substantial part of a comprehensive manpower program. A prime sponsor shall be

(1) a State;

(2) a unit of general local government which has a population of one hundred thousand or more persons on the basis of the most satisfactory current data available to the Secretary;

(3) any combination of units of general local government which includes any unit of general local government qualifying under paragraph (2) of this subsection;

(4) any unit of general local government or any combination of such units, without regard to population, which, in exceptional circumstances, is determined by the Secretary of Labor

(A) (i) to serve a substantial portion of a functioning labor market area, or (ii) to be a rural area having a high level of unemployment; and

(B) to have demonstrated (i) that it has the capability for adequately carrying out pro

grams under this chapter, and (ii) that there is a special need for services within the area to be served, and (iii) that it will carry out such programs and services in such area as effectively as the State; or

(5) a limited number of existing concentrated employment program grantees serving rural areas having a high level of unemployment which the Secretary determines have demonstrated special capabilities for carrying out programs in such areas and are designated by him for that purpose. (b) (1) A State shall not qualify as a prime sponsor for any geographical area within the jurisdiction of any prime sponsor described in paragraph (2), (3), (4), or (5) of subsection (a) of this section unless such prime sponsor has not submitted an approvable comprehensive manpower plan for such

area.

(2) A unit of general local government shall not qualify as a prime sponsor with respect to any area within the jurisdiction of another eligible unit of general local government unless such smaller unit has not submitted an approvable comprehensive manpower plan for such area.

(c) (1) To be eligible for prime sponsorship for any fiscal year, an otherwise eligible applicant must submit to the Secretary a notice of intent to apply for prime sponsorship by such date as the Secretary shall prescribe.

(2) The Secretary may not, prior to March 1, 1974, designate as a prime sponsor, any State or unit of general local government containing another unit of general local government meeting the requirements of subsection (a) (2) of this section unless such smaller unit has submitted to the Secretary written consent for such designation. (Pub. L. 93-203, title I, § 102, Dec. 28, 1973, 87 Stat. 841.)

EFFECTIVE DATE

Section effective Dec. 28, 1973, see section 615 of Pub. L. 93-203, set out as a note under section 801 of this title. SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 813, 816, 817, 820, 844, 845 of this title.

§ 813. Allocation of funds.

(a) Percentage of allotments.

(1) Eighty percent of the amount available for this subchapter in any fiscal year shall be allotted in accordance with the provisions of this subsection. (2) Subject to the provisions of paragraph (4) —

(A) 50 percent of the amount allotted under this subsection shall be allotted on the basis of the manpower allotment of the State in the fiscal year prior to the year for which the determination is made compared to the manpower allotment for all States in that year;

(B) 371⁄2 percent of the amount allotted under this subsection shall be allotted on the basis of the relative number of unemployed persons within the State as compared to such numbers in all States;

(C) 122 percent of the amount allotted under this subsection shall be allotted on the basis of the relative number of adults in families with an annual income below the low-income level within the State compared to such total numbers in all States;

(D) Not less than $2,000,000 shall be allotted among Guam, the Virgin Islands, American Samoa, and the Trust Territory of the Pacific Islands, in accordance with their respective needs. (3) The sum allotted to each State shall be allotted by the Secretary among areas within the State on an equitable basis based upon the factors set forth in paragraph (2).

(4) No prime sponsor shall be allocated an amount which is in excess of 150 percent of the amount received by the area served by that prime sponsor in the fiscal year immediately preceding the fiscal year for which the determination was made except that if the amount so allocated is less than 50 percent of the amount to which such prime sponsor is entitled under paragraph (2) in the fiscal year for which a determination was made, then such allocation shall be increased to 50 percent of the amount of such entitlement.

(b) Encouragement of voluntary combinations.

Not more than 5 percent of the amount available for this subchapter shall be available to the Secretary to encourage, after consultation with and receiving recommendations from the Governor of the appropriate State, voluntary combinations formed under section 812(a) (3) of this title.

(c) Grants for supplemental vocational education assistance.

Five percent of the funds available under this subchapter shall be available only for grants under section 822 of this title except that such grants shall not increase the funds available in any prime sponsor's area by more than 20 percent of the amount allocated to such prime sponsor under subsection (a) of this section.

(d) Allocation to State prime sponsors for costs in staffing and servicing State Manpower Service Councils.

One percent of the amount allocated under subsection (a) of this section shall be available to the Secretary to be allocated in the same manner as provided under subsection (a) of this section to State prime sponsors for the costs incurred in carrying out the provisions of section 817(a) (2) (B) of this title. If any State does not need the amount allocated under this subsection for any fiscal year, that amount shall be available for State services under section 816 of this title.

(e) Allocation for State services under special provisions relating to State prime sponsors.

Four percent of the amounts available for this subchapter shall be available to each State in the same proportion as that State's allocation under subsection (a) of this section for State services under section 816 of this title.

(f) Discretion of Secretary.

The remainder of the funds shall be available in the Secretary's discretion. In exercising his discretion the Secretary shall first utilize such funds to provide each prime sponsor with an amount for any fiscal year equal to 90 percent of such area's manpower allotment in the preceding fiscal year. The remainder shall be distributed in the Secretary's discretion among areas served by prime sponsors (or where a prime sponsor's plan has not been approved,

an area served by the Secretary under his authority in section 820 of this title). In exercising his discretion the Secretary shall take into account the need for continued funding of programs of demonstrated effectiveness.

(g) Source of funds for grants to prime sponsors serving rural areas having a high level of unemployment.

Grants made to prime sponsors designated under section 812 (a) (5) of this title shall be from funds not allocated under subsection (a) of this section. (h) Publication in Federal Register.

As soon as practicable after funds are appropriated to carry out this chapter for any fiscal year, the Secretary shall publish in the Federal Register the allotments made pursuant to this section. Allotments under this section shall be based on the latest satisfactory data and estimates available.

(i) Reallocations.

The Secretary is authorized to make such reallocations under this subchapter as he deems appropriate of the unobligated amount of any allotment pursuant to subsection (a) of this section to the extent that the Secretary determines that it will not be required for the period for which such allotment is available. Allotted amounts may not be reallocated for any reason before the expiration of the ninth month of the fiscal year for which such funds were allotted and thereafter may be reallocated only if the Secretary has provided thirty days' advance notice to the prime sponsor for such area and to the Governor of the State of the proposed reallocation, during which period of time the prime sponsor and the Governor may submit comments to the Secretary. After considering any comments submitted during such period of time, the Secretary shall notify the Governor and affected prime sponsors of any decision to reallocate funds and shall publish any such decision in the Federal Register. Priority shall be given in reallocating such funds to other areas within the same State. (Pub. L. 93-203, title I, § 103, Dec. 28, 1973, 87 Stat. 842.)

EFFECTIVE DATE

Section effective Dec. 28, 1973, see section 615 of Pub. L. 93-203, set out as a note under section 801 of this title. SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 816, 820, 822, 872, 873, 981 of this title.

§ 814. Prime sponsor's planning councils.

Each prime sponsor designated under this subchapter shall establish a planning council consisting, to the extent practical, of members who are representative of the client community and of communitybased organizations, the employment service, education and training agencies and institutions, business, labor, and, where appropriate, agriculture. The prime sponsor shall appoint the members of the council, designate the chairman, and provide professional, technical, and clerical staff to serve the council. It is the function of the council to submit recommendations regarding program plans and basic goals, policies, and procedures, to monitor and provide for objective evaluations of employment and training programs conducted in the prime sponsorship area, and to provide for continuing analyses of needs for

employment, training, and related services in such area. Any final decision with respect to such recommendations shall be made by the prime sponsor. (Pub. L. 93-203, title I, § 104, Dec. 28, 1973, 87 Stat. 843.)

EFFECTIVE DATE

Section effective Dec. 28, 1973, see section 615 of Pub. L. 93-203, set out as a note under section 801 of this title. § 815. Conditions for receipt of financial assistance.

(a) The Secretary shall not provide financial assistance for any fiscal year to a prime sponsor unless such sponsor submits a comprehensive manpower plan, in such detail as the Secretary deems necessary, which

(1) sets forth a comprehensive manpower program which meets the objectives of this subchapter, including (A) a description of the services to be provided, and performance goals, (B) assurance that such services will be administered by or under the supervision of the prime sponsor, (C) a description of the geographical areas to be served under the plan, and (D) assurances that to the maximum extent feasible manpower services, including the development of job opportunities, will be provided to those most in need of them, including low-income persons and persons of limited English-speaking ability, and that the need for continued funding of programs of demonstrated effectiveness is taken into account in serving such groups and persons;

(2) provides, in the case of prime sponsors who are recipients of funds under subchapter II of this chapter for the development of a public service employment program, that it is fully integrated with the services under this subchapter in order to assure that persons employed in such a program are afforded a better opportunity to find regular employment not supported under this chapter;

(3) (A) provides appropriate arrangements with community-based organizations serving the poverty community, and other special target groups for their participation in the planning of programs included in the plan; (B) provides for utilizing those services and facilities which are available, with or without reimbursement of the reasonable cost, from Federal, State, and local agencies to the extent deemed appropriate by the prime sponsor, after giving due consideration to the effectiveness of such existing services and facilities, including, but not limited to, the State employment service, State vocational education and vocational rehabilitation agencies, area skills centers, local educational agencies, postsecondary training and education institutions, and community action agencies, but nothing contained herein shall be construed to limit the utilization of services and facilities of private agencies, institutions and organizations (such as private businesses, labor organizations, private employment agencies, and private educational and vocational institutions) which can, at comparable cost, provide substantially equivalent training or services or otherwise aid in reducing more quickly unemployment or current and prospective manpower shortages; (C) provides that in making arrangements for institutional training priority shall be given (to the extent

feasible) to the use of skills centers established under the authority of section 2601 of Title 42; (D) provides arrangements to the extent feasible for the coordination of services for which financial assistance is provided under programs administered by the Secretary of Labor relating to manpower and manpower-related services;

(4) provides for paying the allowances and compensation provided by section 821 of this title;

(5) provides that any transitional public service employment programs meet the requirements of section 845 (c) and section 848 of this title, and that persons hired to fill jobs created by such programs will be residents of the areas described under paragraph (1)(C) of this subsection;

(6) provides assurances that programs of institutional training be designed for occupations in which skill shortages exist and assurances that such programs and training on the job shall, wherever possible, result in employment which provides economic self-sufficiency;

(7) contains such other information, assurances, statements, and arrangements consistent with the provisions of this chapter as the Secretary shall prescribe by regulation including provisions designed to assist the Secretary in carrying out his special responsibilities under this section and section 818 of this title.

(b) The Secretary shall not provide financial assistance for any fiscal year to a prime sponsor unless such sponsor certifies that

(1) its plan meets all the requirements of this section; and

(2) it will comply with all provisions of this chapter.

(c) The Secretary shall provide financial assistance to each prime sponsor under this subchapter to carry out the plan submitted by each such prime sponsor upon determining that—

(1) the plan is consistent with the provisions of this subchapter;

(2) the plan was made public prior to submission to the Secretary;

(3) the prime sponsor has demonstrated maximum efforts to implement the provisions in the prior year's plan.

(Pub. L. 93-203, title I, § 105, Dec. 28, 1973, 87 Stat. 843.)

REFERENCES IN TEXT

Section 2601 of Title 42, referred to in subsec. (a) (3) (C), was repealed by Pub. L. 93-203, effective with respect to fiscal years after June 30, 1974. The provisions of the Manpower Development and Training Act of 1962, of which section 2601 of Title 42 was one section, are now covered by this chapter.

EFFECTIVE DATE

Section effective Dec. 28, 1973, see section 615 of Pub. L. 93-203, set out as a note under section 801 of this title. SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 816, 818, 819, 872 of this title.

§ 816. Special provisions relating to State prime spon

sors.

(a) State comprehensive manpower plan.

Any State seeking assistance under this chapter shall submit a State comprehensive manpower plan

to the Secretary for approval in accordance with the requirements of this section.

(b) Requisite provisions of State comprehensive manpower plan.

The State comprehensive manpower plan shall in addition to meeting the requirements of section 815 of this title

(1) provide satisfactory arrangements for serving all geographical areas under its jurisdiction except areas served by an eligible applicant who has filed a notice of intent under section 812(c) of this title, except that such plan may be amended to include areas served by an eligible applicant whose plan is finally disapproved without prejudice to the remedies available to such eligible applicant under section 819 of this title;

(2) provide for the cooperation and participation of all State agencies providing manpower and manpower-related services in the implementation of comprehensive manpower services plans by prime sponsors in accordance with the provisions of this chapter;

(3) set forth an overall State plan for the development and sharing of resources and facilities needed to conduct manpower programs under its direct sponsorship without unnecessary duplication and otherwise in the most efficient and economical manner;

(4) provide for the coordination of programs financed under the Wagner-Peyser Act in accordance with such rules, regulations, and guidelines as the Secretary determines necessary for the purpose of providing coordinated and comprehensive assistance to those individuals requiring manpower and manpower-related services to achieve their full occupational potential in accordance with the policies of this chapter;

(5) set forth arrangements for assisting the Secretary in carrying out his responsibilities for enforcing the requirement for Federal contractors and subcontractors to list all suitable employment openings with local offices of the State employment service and provide special emphasis, as required in section 2012 (a) of Title 38;

(6) set forth arrangements, if any, which the State may desire to provide for planning areas to serve geographical regions within the State; and

(7) make adequate provision for the coordination of the manpower and related services to be provided by the State in areas to be served by prime sponsors other than the State, and that provision has been made for the establishment of mechanisms to (A) provide for the exchange of information between States and local governments on State, intrastate, and regional planning in areas such as economic development, human resource development, education, and such other areas that may be relevant to manpower planning; and (B) promote the coordination of all manpower plans in a State so as to eliminate conflict, duplication, and overlapping between manpower services. (c) Use of available funds.

Funds available to each State under section 813(e) of this title may be used for

(1) the provision of services under this chapter throughout the State by State agencies responsible for employment and training and related services;

(2) providing financial assistance for special programs and services designed to meet the needs of rural areas outside major labor market areas;

(3) developing and publishing information regarding economic, industrial, and labor market conditions, including but not limited to job opportunities and skill requirements, labor supply in various skills, occupational outlook and employment trends in various occupations, and economic and business development and location trends;

(4) providing, without reimbursement and upon request, to any prime sponsor serving an area within the State, such information and technical assistance as may be appropriate to assist any such prime sponsor in developing and implementing its programs under this chapter; and

(5) carrying out special model training and employment programs and related services, including programs for offenders similar to programs described in section 871(c) of this title.

(d) Annual compliance certification.

The State prime sponsor shall annually certify compliance with all the requirements for State prime sponsors. (Pub. L. 93-203, title I, § 106, Dec. 28, 1973, 87 Stat. 845.)

REFERENCES IN TEXT

The Wagner-Peyser Act, referred to in subsec. (b)(4), is act June 6, 1933, ch. 49, 48 Stat. 113, which is classified to section 49 et seq. of this title.

EFFECTIVE DATE

Section effective Dec. 28, 1973, see section 615 of Pub. L. 93-203, set out as a note under section 801 of this title.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 813, 818, 819 of this title.

§ 817. State Manpower Services Council.

(a) (1) Any state which desires to be designated as a prime sponsor and to enter into arrangements with the Secretary under this subchapter shall establish a Manpower Services Council (hereinafter referred to as the "Council") which shall exercise the powers and duties set forth in this section. (2) The Council established pursuant to paragraph (1) shall

(A) be appointed by the Governor (who shall designate one member thereof to be Chairman), and shall be composed of

(i) representatives of the units or combinations of units of general local government in such State, who shall comprise at least one-third of the membership of the Council, which have comprehensive manpower plans approved under section 818 of this title (except that the initial appointments to the Council may consist of representatives of units or combinations of units of general local government described in clauses (2), (3), (4), and (5) of section 812(a) of this title which have indicated an intention to submit a plan for approval under section 818 of this title), and such representatives shall be designated by the chief executive officers of the units or combination of units of general local government which qualify for representation under this section in accordance with procedures agreed upon by such chief executive officers:

(ii) one representative each of the State board of vocational education and the public employment service of such State;

(iii) one representative of each such other State agency as the Governor may determine to have a direct interest in overall manpower training and utilization within the State;

(iv) representatives of organized labor; (v) representatives of business and industry; (vi) representatives of community-based organizations and of the client community to be served under this chapter (including, where persons of limited English-speaking ability represent a substantial portion of the client population, appropriate representation of such persons); and

(vii) representatives of the general public. (B) be appropriately staffed and serviced by the State prime sponsor;

(C) meet at such times and in such places as it deems necessary.

(b) The Council shall

(1) review the plans of each prime sponsor and the plans of State agencies for the provision of services to such prime sponsors, and make recommendations to such prime sponsors and agencies for the more effective coordination of efforts to meet the overall manpower needs of the State;

(2) continuously monitor the operation of programs conducted by each prime sponsor, and the availability, responsiveness, and adequacy of State services, and make recommendations to the prime sponsors, to agencies providing manpower services, and to the Governor and the general public with respect to ways to improve the effectiveness of such programs or services in fulfilling the purposes of this chapter;

(3) make an annual report to the Governor which shall be a public document, and issue such other studies, reports, or documents as it deems advisable to assist prime sponsors or to otherwise help carry out the purposes of this chapter. (Pub. L. 93-203, title I, § 107, Dec. 28, 1973, 87 Stat. 846.)

EFFECTIVE DATE

Section effective Dec. 28, 1973, see section 615 of Pub. L. 93-203, set out as a note under section 801 of this title. SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 813 of this title.

§ 818. Review of comprehensive manpower plans. (a) Approval by Secretary of Labor.

The Secretary shall not approve a comprehensive manpower plan or any amendment thereto until he determines that it meets the requirements of section 815 of this title, and in the case of a State plan section 816 of this title, and that the plan was submitted to, and an opportunity to comment thereon provided, the Governor of the State and appropriate officials in units of general local government of the area to be served.

(b) Hearing.

(1) The Secretary shall not finally disapprove any comprehensive manpower plan submitted under this subchapter, or any modifications thereof, without

first affording the prime sponsor submitting the plan reasonable notice and opportunity for a hearing.

(2) If the Secretary receives a formal allegation from an affected unit of general local government that a prime sponsor has changed its comprehensive manpower plan so that it no longer complies with section 815 of this title or that in the administration of the plan there is a failure to comply substantially with any such provision, with any provision of the plan, or with any requirements of section 983 or 984 of this title, he shall, and, if he receives such an allegation from any other interested person, he may, or, if such allegation is supported by substantial evidence, he shall, after due notice and opportunity for a hearing to the prime sponsor, determine whether the allegation is true. If he determines such an allegation to be true, the Secretary shall notify the prime sponsor that no further payments will be made to the prime sponsor under the plan (or, in his discretion, that further payments will be limited to programs under or portions of the plan not affected by such failure), until he is satisfied that there will no longer be any failure to comply. Until he is so satisfied, the Secretary shall make no further payments to such sponsor under the plan (or shall limit payments to programs under the plan not affected by the failure).

(c) Percentage of funds devoted to particular pro

grams.

The Secretary shall not disapprove any plan solely because of the percentage of funds devoted to a particular program or activity authorized under section 811 of this title.

(d) Revocation of plan.

Whenever the Secretary determines, after notice and opportunity for a public hearing, that any prime sponsor designated to serve under this chapter is

(1) maintaining a pattern or practice of discrimination in violation of section 983 (1) or section 991 (a) of this title or otherwise failing to serve equitably the economically disadvantaged, unemployed or underemployed persons in the area it serves;

(2) incurring unreasonable administrative costs in the conduct of activities and programs, as determined pursuant to regulation;

(3) failing to give due consideration to continued funding of programs of demonstrated effectiveness including those previously conducted under provisions of the Manpower Development and Training Act of 1962 and parts A, B, and E of title I of the Economic Opportunity Act of 1964; or

(4) otherwise materially failing to carry out the purposes and provisions of this chapter; the Secretary shall revoke the prime sponsor's plan for the area, in whole or in part, and to the extent necessary and appropriate shall not make any further payments to such prime sponsor under this chapter, and he shall notify such sponsor to return to him all or part of the unexpended sums paid under this chapter during that fiscal year. (Pub. L. 93-203, title I, § 108, Dec. 28, 1973, 87 Stat. 847.)

REFERENCES IN TEXT

The Manpower Development and Training Act of 1962, referred to in subsec. (d) (3), is Pub. L. 87-415, which was