Reservations for State activities; within State allocations; Reallocation

(a) Reservations for State activities Section 133(a) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3173(a)) is amended— (1) in paragraph (1), by striking section 128(a) and inserting section 128(a)(1); and (2) by adding at the end the following: (3) Critical industry skills fund, and industry or sector partnership and career pathways fund In addition to the reservations required under paragraphs (1) and (2), the Governor may make the reservation authorized under section 128(a)(3).. (b) Within State allocations Section 133(b)(1) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3173(b)) is amended— (1) in subparagraph (A), by striking subsection (a)(1) and inserting paragraph (1) or (3) of subsection (a); and (2) in subparagraph (B), by striking paragraph (1) or (2) of subsection (a) and inserting paragraph (1), (2), or (3) of subsection (a). (c) Reallocation among local areas Section 133(c) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3173(c)) is amended— (1) in paragraph (1), by inserting before the period at the end, the following: as performance-based incentive payments; (2) in paragraph (4)— (A) in subparagraph (A)— (i) by striking that does not and inserting the following: that— (i) does not; (ii) by striking; and and inserting a semicolon; and (iii) by adding at the end the following: (ii) has met or exceeded an average of 100 percent of the local level of performance described in section 116(c)(1)(B) for the local area across all indicators for the adult program authorized under this chapter for the most recent program year for which performance data is available; and (iii) was not subject to corrective action by the Governor under section 184(a)(5)(A) for a determination of non-compliance with the uniform administrative requirements described in section 184(a)(3) for the program year for which the determination under paragraph (2) is made; and; and (B) in subparagraph (B)— (i) by striking that does not and inserting the following: that— (i) does not; (ii) by striking the period at the end and inserting a semicolon; and (iii) by adding at the end the following: (ii) has met or exceeded an average of 100 percent of the local level of performance described in section 116(c)(1)(B) for the local area across all indicators for the dislocated worker program authorized under this chapter for the most recent program year for which performance data is available; and (iii) was not subject to corrective action by the Governor under section 184(a)(5)(A) for a determination of non-compliance with the uniform administrative requirements described in section 184(a)(3) for the program year for which the determination under paragraph (2) is made; and; and (3) by adding at the end the following: (5) Use of incentive funds Any amounts provided to a local area as a performance incentive payment under this subsection shall not be subject to the requirements described in section 134(c)(1)(B)..