(a) Effective July 1, 1996, the commission shall provide to the local workforce development areas in which local workforce development boards have been certified and local plans approved by the governor, through a block grant process, funds available to the commission for workforce training and employment services, unless superseded by federal law. Administrative costs under this subsection may not exceed five percent of the total amount of funds available to the commission for block grants for workforce training and services.
(b) In the case of funds that are allocated to this state or regions of this state through the application of established formulas, the commission shall allocate amounts across the state using the same formula that was used to provide the funds to the state or that region.

(c) In the case of funds that are not allocated by formula to this state or regions of this state, the commission shall develop a need-based formula that will equitably allocate funds among local workforce development areas throughout this state.
(d) Contingent on the availability of funds, in any state fiscal biennium, the commission may not allocate to a local workforce development area less than 90 percent or more than 125 percent of the amount received by that area during the preceding state fiscal biennium.
(e) In each area of the state not yet designated as a local workforce development area or that has been so designated but in which a local workforce development board has not been certified and a local plan approved by the governor, the executive director shall:
(1) provide workforce training and services in that area to the extent allowed by federal law; and
(2) specify an entity, which may be the commission, for the performance of employment services in that area.
(f) At least 80 percent of the funds available to the commission for workforce training and services in an area shall be provided to the local workforce development board under Subsection (a) or, in an area in which a local workforce development board has not been certified and a local plan approved by the governor, to the entity specified by the executive director under Subsection (e). If a local workforce development board has been certified and a local plan approved by the governor, the funds shall be provided through the block grant process described by this section. Unless superseded by federal law, total administrative costs for local workforce training and services may not exceed 15 percent of the funds allocated under this subsection, whether the training and services are provided through a local workforce development board or through the commission or other entity specified under Subsection (e).
(g) Block grant funding under this section does not apply to:
(1) the work and family policies program under Chapter 81;
(2) a program under the skills development fund created under Chapter 303;
(3) the job counseling program for displaced homemakers under Chapter 304;
(4) the Communities In Schools program under Subchapter E, Chapter 33, Education Code, to the extent that funds are available to the commission for that program;
(5) the reintegration of offenders program under Chapter 306;
(6) apprenticeship programs under Chapter 133, Education Code;
(7) the continuity of care program under § 501.095, Government Code;
(8) employment programs under Chapter 31, Human Resources Code;
(9) the senior citizens employment program under Chapter 101, Human Resources Code;
(10) the programs described by § 302.021(b)(2);
(11) the community service program under the National and Community Service Act of 1990 (42 U.S.C. § 12501 et seq.);
(12) the trade adjustment assistance program under Part 2, Subchapter II, Trade Act of 1974 (19 U.S.C. § 2271 et seq.);
(13) the programs to enhance the employment opportunities of veterans;
(14) the functions of the State Occupational Information Coordinating Committee; and
(15) the adult education and literacy programs under Chapter 315.