PUBLIC LAW 102-367 —SEPT. 7, 1992 106 STAT. 1043 the cost of administration under part A or C of title II, the service delivery area shall not be subject to the limitation contained in section 108(b)(4)(A) if— "(i) such funds are expended pursuant to an agreement under which not less than 90 percent of the funds provided to the community-based organization or nonprofit organization are to be expended for the costs of direct training and trainingrelated and supportive services; "(ii) the expenditures of such funds are charged by the service delivery area to the appropriate cost category; "(iii) the expenditure of such funds does not result in the service delivery area exceeding the limitation contained in section 108(b)(4)(A) by more than 25 percent of such limitation; and "(iv) the service delivery area is in compliance with the limitation contained in section 108(b)(4)(B) for such program year, except that such limitation shall be reduced by a percentage equal to one-half of the percentage by which the expenditures of the service delivery area under this subparagraph exceed the limitation under section 108(b)(4)(A).". (c) PLACEMENT.— Section 141(d) of the Act (29 U.S.C. 1551(d)) is amended by adding at the end the following new paragraph: "(4) Placements made in unsubsidized employment shall be, to the extent practicable, in occupational areas related to the training provided to the participeuit.". (d) SERVICE DELIVERY AREA AGREEMENTS.— Section 141(e) of the Act (29 U.S.C. 1551(e)) is amended— (1) by inserting "(1)" after "(e)"; and (2) by adding at the end the following new paragraph: "(2) Any service delivery area may enter into an agreement or contract with another service delivery area (including a service delivery area that is a city or county within the same labor market) to pay or share the cost of educating, training, or placing individuals participating in programs assisted under this Act, including the provision of supportive services. Such agreement or contract shall be approved by each private industry council providing guidance to the service delivery area and shall be described in the job training plan under section 104.". (e) ON-THE -JOB TRAINING.—Section 141(g) of the Act (29 U.S.C. 1551(g)) is amended— (1) by inserting "(1)" after "(g)"; and (2) by adding at the end the following new paragraphs: "(2) On-the-job training authorized under the Act for a participant shall be limited in duration to a period not in excess of that generally required for acquisition of skills needed for the position within a particular occupation, but in no event shall exceed 6 months, unless the total number of hours of such training is less than 500 hours. In determining the period generally required for acquisition of the skills, consideration shall be given to recognized reference material (such as the Dictionary of Occupational Titles), the content of the training of the participant, the prior work experience of the participant, and the service strategy of the participant. "(3)(A) Each on-the-job training contract shall— "(i) specify the types and duration of on-the-job training and the other services to be provided in sufficient detail to allow for a fair analysis of the reasonableness of proposed costs; and
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