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This entry was published on 2014-09-22
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SECTION 847
Limitations on uses of funds
Labor (LAB) CHAPTER 31, ARTICLE 24
§ 847. Limitations on uses of funds. 1. Not less than sixty percent of
the funds expended by substate grantees must be used for retraining
services as defined in section eight hundred thirty-five of this
article.

2. Not more than twenty-five percent of the funds expended by any
substate grantee or the governor may be used to provide needs-related
services pursuant to section eight hundred forty-six of this article and
other supportive services as defined in this act.

3. Not more than twelve percent of the funds expended by substate
grantees pursuant to paragraph three of section eight hundred
forty-eight of this article shall be used for administrative expenses.

4. (a) Twelve percent of the funds allocated to the state for state
level activities in each year shall be made available to the department
for administrative expenses. Provided further that not more than twelve
percent of such funds shall be expended by the department pursuant to
subdivision one of section eight hundred forty-eight of this article for
administrative expenses including technical assistance and fiscal and
compliance auditing.

(b) Six hundred seventy-five thousand dollars of the funds allocated
to the state for state level activities in subdivision one of section
eight hundred forty-eight of this article in each year shall be made
available for statewide projects and demonstration programs authorized
pursuant to section eight hundred forty-one of this article.

(c) Sixteen percent, plus three hundred thousand dollars, of the funds
allocated to the state for state level activities in each year shall be
made available for rapid response activities authorized pursuant to
section eight hundred forty of this article, including the funding of
innovative programs for the delivery of rapid response services to
dislocated workers. No single state agency, department, board or
commission shall receive a suballocation from the department of more
than twenty percent of the funds allocated by this paragraph. Any funds
suballocated to the department of economic development shall be for
feasibility studies as provided in section eight hundred forty-four of
this article.

(d) Fifty percent of funds allocated to the state for state level
activities in each year remaining after funding is provided for the
purposes described in paragraphs (a), (b) and (c) of this subdivision,
which amount shall not exceed one million seventy-six thousand three
hundred fifty dollars, shall be made available for the provision of
employer specific skills training.

Not more than five percent of the funds expended pursuant to this
paragraph shall be expended for administrative activities by the state
education department. All remaining monies made available for the
purpose described in section eight hundred forty-three of this article
shall be suballocated to the state department of education.

(e) Fifty percent of funds allocated to the state for state level
activities in each year remaining after funding is provided for the
purposes described in paragraphs (a), (b) and (c) of this subdivision
and any amount remaining after funding is provided for employer specific
skills training pursuant to paragraph (d) of this subdivision, shall be
made available for the purposes described in subdivision two of section
eight hundred forty-one of this article. Such funding shall be made
available to substate areas or to the department for the purpose of
responding to plant closings and substantial layoffs including
employment losses involving exceptional circumstances as defined in
subdivision three of section eight hundred forty of this article as
authorized by the commissioner which were unanticipated at the time of
submission of the annual plan required by section eight hundred
thirty-nine of this article. Substate grantees shall have precedence in
receiving such funding. Notwithstanding the requirements of this
paragraph, not more than one-third of such money may be made available
to substate areas for the purpose of responding to significant layoffs
which were unanticipated at the time of submission of the annual plan
required by section eight hundred thirty-nine of this article. For the
purpose of this paragraph significant layoffs shall mean any reduction
in force which is not the result of a plant closing and which results in
an employment loss at a single site of employment of at least
thirty-three percent of the employees (excluding employees regularly
working less than twenty hours per week). Not more than seven percent of
expended funds shall be retained by the substate grantees for
administrative expenses. Each substate grantee with a demand for
services which exceed those otherwise available under the substate plan
shall be eligible for grants according to the following criteria:

(i) the substate grantee must demonstrate its need through submission
of a written request which includes the amount of additional funding
needed, number of dislocated workers or additional dislocated workers to
be served, type of services to be provided, and a description of the
substantial or significant layoff or plant closing which led to the
request;

(ii) requests for additional funding which would provide added
retraining services or regional or statewide services to identify
dislocated workers or additional dislocated workers who are most in need
of services and the types of services they need shall be considered
before funds are released for added basic readjustment services; and

(iii) any funds undistributed at the end of the program year shall be
included as part of the funding made available for activities under
section eight hundred forty-six of this article in each succeeding
program year and allocated pursuant to subdivision three of section
eight hundred forty-eight of this article.

(f) The commissioner shall report to the chairs and ranking minority
members of the senate and assembly labor, finance and ways and means
committees, no later than March first of each year on (i) the amount of
each suballocation or contract made from funds made available through
paragraphs (b) and (c) of this subdivision, including any funds
recaptured pursuant to subdivision four of section eight hundred
forty-eight of this article, (ii) the entity receiving such
suballocation or contract and (iii) the purpose of such suballocation or
contract.

5. Not more than twelve percent of the funds expended pursuant to
paragraph (a) of subdivision two of section eight hundred forty-eight of
this article shall be retained by the substate grantees for
administrative expenses.