INCENTIVE BONUS ENTITLEMENT FOR EMPLOYABLE DEPENDENT INDIVIDUALS.

SEC. 712. INCENTIVE BONUS ENTITLEMENT FOR EMPLOYABLE DEPENDENT INDIVIDUALS. (a) Amendments to JTPA.— The Job Training Partnership Act (29 U.S.C. 1501 et seq.) (hereinafter in this title referred to as the “Act”) is amended— (1) by redesignating title V and all references thereto as title VI, (2) by redesignating sections 501, 502, 503, and 504 as sections 601,602,603, and 604, respectively, and (3) by inserting after title IV the following new title: “TITLE V— JOBS FOR EMPLOYABLE DEPENDENT INDIVIDUALS INCENTIVE BONUS PROGRAM “SEC. 501. STATEMENT OF PURPOSE. “It is the purpose of this title to entitle each State to the payment of a bonus for the successful job placement of certain employable dependent individuals. “SEC. 502. DEFINITIONS. “For the purpose of this title— “(1) the term ‘welfare assistance’ means— “(A) cash payments made pursuant to part A of title IV of the Social Security Act (relating to the aid to families with dependent children program); “(B) general welfare assistance to Indians, as provided pursuant to the Act of November 2, 1921 (25 U.S.C. (13)), commonly referred to as the Snyder Act; or “(C) cash assistance and medical assistance for refugees made available pursuant to section 412(e) of the Immigration and Nationality Act; “(2) the term ‘disability assistance’ means benefits offered pursuant to title XVI of the Social Security Act (relating to the supplemental security income program); “(3) the term ‘long-term recipient’ means an individual who has received the benefits described in paragraphs (1) and (2) for 24 months during the 28-month period immediately preceding application for programs offered under this title; “(4) the term ‘continuous employment’ means gainful employment under which wages or salaries are reportable for unemployment insurance purposes, and such wages or salaries are earned during a total of 4 out of 5 consecutive calendar quarters; “(5) the term ‘supported employment’ has the meaning given such term by section 7(18) of the Rehabilitation Act of 1973; and “(6) the term ‘Federal contribution’ means the amount of the Federal component of cash payments to individuals within the102 STAT. 3249 participating State under the programs described in this section, including part A of title IV of the Social Security Act. “SEC. 503. ELIGIBILITY FOB INCENTIVE BONUSES. “(a) In General.— An individual shall be eligible to be counted for the purpose of this title if— “(1) the individual is— “(A) an eligible long-term recipient described in subsection (b); “(B) an eligible young recipient described in subsection (c); “(C) an eligible blind or disabled recipient described in subsection (d); or “(D) an eligible young blind or disabled recipient described in subsection (e); and “(2) the individual has met the requirements of section 504. “(b) Long-Term Recipient.— An eligible long-term recipient is an individual who— “(1) is a long-term recipient of welfare assistance; “(2) is the head of a household; and “(3) had no marketable or significant work experience during the year preceding determination of eligibility for programs under this Act. “(c) Young Recipient.— An eligible young recipient is an individual who— “(1) is receiving welfare assistance at the time determination of eligibility is made for programs under this Act; “(2) is the head of a household; “(3) has not attained 22 years of age; “(4) has not completed secondary school or its equivalent; and “(5) had no marketable or significant work experience during the year preceding determination of eligibility for programs under this Act. “(d) Blind or Disabled Recipient.— An eligible blind or disabled recipient is an individual who— “(1) is blind or disabled; “(2) is a long-term recipient of disability assistance; and “(3) had no marketable or significant work experience during the year preceding determination of eligibility for programs offered under this Act. “(e) Young Blind or Disabled Recipient.— An eligible young blind or disabled recipient is an individual who— “(1) is blind or disabled; “(2) is receiving disability assistance at the time determination of eligibility is made for programs under this Act; “(3) has not attained 22 years of age; and “(4) had no marketable or significant work experience during the year preceding such determination of eligibility. “SEC. 504. ADDITIONAL ELIGIBILITY REQUIREMENTS. “(a) In General.— An individual described in section 503 may not be considered eligible to be counted for the purpose of payment of an incentive bonus under this title unless such individual— “(1) has successfully participated in education, training, or other activities offered under this Act; “(2) has been placed in (A) unsubsidized, continuous employment or (B) supported employment following such participation; 102 STAT. 3250 “(3) receives from such employment a wage or income which is greater than or equal to such individual’s placement bonus base; and “(4) no longer receives cash benefits provided under the assistance programs described in paragraphs (1) and (2) of section 502, unless receipt of such benefits— “(A) is limited to 1 calendar quarter (or an equivalent period) during the 5 calendar quarters used to determine continuous employment; and “(B) is caused by a termination of employment due to— “(i) a layoff or permanent closure of a plant or facility; “(ii) a relocation of Federal facilities; or “(iii) a natural disaster. “(b) Qualified Earnings.— An individual shall be considered to be earning a wage or income which meets the requirements of subsection (a)(3) if during a period of continuous employment, the individual earns an income reportable for unemployment insurance purposes and does not receive cash benefits under the programs described in section 502. “(c) Educational Requirements.— An individual described in section 503 (c) or (e) shall be considered to have met the requirements of subsection (a)(1) if the individual no longer receives welfare assistance and— “(1) reenrolls in secondary school or its equivalent and matriculates to the next grade level or its equivalent within 1 year of enrollment; “(2) enrolls in an accredited vocational or technical school not less than full time and is making satisfactory progress in a course of study which can reasonably be expected to lead to employment; or “(3) obtains the equivalent of a secondary school diploma within 12 months following the individual’s determination of eligibility for programs offered under this title. “SEC. 505. AMOUNT OF INCENTIVE BONUS. “(a) In General.— The amount of the incentive bonus paid to each State shall be equal to the sum of— “(1) 75 percent of the placement bonus base for each successful placement in employment of an individual described in section 503; “(2) 75 percent of the placement bonus base for the second continuous year of such employment; and “(3) 75 percent of the placement bonus base for the third continuous year of such employment, in excess of the number of such placements made in program year 1987 or such other base period as provided by agreement between the Governor and the Secretary. “(b) Placement Bonus Base for Purposes of Section 503 (b) and (c).— For the purpose of this section, the placement bonus base— “(1) for an individual who qualifies under section 503(b) is equal to the sum of the Federal contribution to amounts received by the individual and the family of such individual under a State plan approved under part A of title IV of the Social Security Act, relating to aid to families with dependent children, or under section 412(e) of the Immigration and Nationality Act, relating to cash assistance and medical assistance to102 STAT. 3251 refugees, or both, for the 2 fiscal years prior to the determination made under section 503 divided by 2; and “(2) for an individual who qualifies under section 503(c) shall be the annual amount to which such individual would have been entitled for 1 year at the time of the determination of eligibility of the individual, if such individual has not received the benefits described in section 5O2(1)(A) for the prior year, under part A of title IV of the Social Security Act, relating to the aid to families with dependent children program, or section 412(e) of the Immigration and Nationality Act relating to cash assistance and medical assistance to refugees. “(c) Placement Bonus Base for Purposes of Section 503 (d) and (e).— For the purpose of this section, the placement bonus base— “(1) for an individual who qualifies under section 503(d) is equal to the sum of the Federal contribution to amounts received by the individual under title XVI of the Social Security Act relating to supplemental security income for the 2 fiscal years prior to the determination made under section 503 divided by 2; and “(2) for an individual who qualifies under section 503(e) shall be the annual amount to which such individual would have been entitled for 1 year at the time of the determination of eligibility of the individual, if such individual has not received the benefits described in section 502(2) for the prior year under title XVI of the Social Security Act, relating to supplemental security income. “SEC. 506. APPLICATIONS AND VERIFICATION REQUIRED. “(a) Notice of Intent to Participate.— Any State seeking to participate in the incentive bonus program established under this title shall notify the Secretary of its intent to do so not later than 30 days before the beginning of its first program year of participation. “(b) Application.— (1) Any State seeking to receive an incentive bonus under this title shall submit an application to the Secretary. Such application shall contain or be accompanied by such information and assurances as the Secretary may reasonably require in order to ensure compliance with this title. Each application shall contain, at a minimum— “(A) the placement bonus base for eligible individuals who serve to qualify the State for an incentive bonus; and “(B) (i) a brief description of the unsubsidized employment or supported employment of such individuals; or “(ii) a description of participation in educational activities, as permitted under section 504, by such individuals. “(2) The application to participate in the incentive bonus program shall be submitted to the Secretary according to a schedule established by the Secretary in order to facilitate and expedite the processing, verification, and prompt payment of incentive bonuses. “(c) Notice of Approval or Denial.— The Secretary shall inform a State within 60 days after receipt of the application as to whether or not its application has been approved. The Secretary may not approve an application for payment of an incentive bonus without adequately verifying the accuracy of the information contained in the application. There shall be a rebuttable presumption that an individual is eligible to be counted for the purpose of payment of an incentive bonus under this title. When appropriate, the Secretary102 STAT. 3252 may use a sampling methodology for such verifications in a manner approved by the Comptroller General of the United States. “(d) Service Delivery Area Participation.— Participation by a State in the incentive bonus program established under this title shall not prevent any service delivery area within the State from refusing to participate in such program. “SEC. 507. PAYMENTS. “(a) In General.— For each program year for which funds are appropriated to carry out this title, the Secretary shall pay to each participating State the amount that State is eligible to receive under this section. “(b) Ratable Reductions.—If the amount so appropriated is not sufficient to pay to each State the amount each State is eligible to receive, the Secretary shall ratably reduce the amount paid to each State. “(c) Ratable Increases.— If any additional amount is made available for carrying out this title for any program year after the application of the preceding sentence, such additional amount shall be allocated among the States by increasing such payments in the same manner as they were reduced, except that no such State shall be paid an amount which exceeds the amount which it is eligible to receive under this section. “SEC. 508. USE OF INCENTIVE BONUS FUNDS. “(a) Use of Incentive Bonus Funds.— After submission and approval of an application for an incentive bonus payment and before receipt of such payment, the Governor of such State may reserve from State funds an amount equal to the amount of a bonus incentive requested in the application for the purpose of making expenditures in accordance with this title. Bonus payments received thereafter may be used for reimbursement of such expenditures. “(b) Limitations.— (1) (A) During any program year, the Governor may use an amount not to exceed 15 percent of the State’s total bonus payments or amounts reserved under subsection (a) for administrative costs incurred under this title, including data and information collection and compilation, recordkeeping, or the preparation of applications for incentive bonuses. “(B) The amount of incentive bonus payments or the amounts reserved under subsection (a) which remain after the deduction of administrative expenses under paragraph (1) shall be distributed to service delivery areas within the State in accordance with an agreement between the Governor and representatives of such areas. Such agreement shall reflect an equitable method of distribution which is based on the degree to which the efforts of such area contributed to the State’s qualification for an incentive bonus payment under this title. “(2) (A) Subject to subparagraph (B), a maximum of 10 percent of the amounts received under this title in any program year by each service delivery area may be used for the administrative costs of establishing and maintaining systems necessary for operation of programs under this title, including incentive payments described in subsection (c), technical assistance, data and information collection and compilation, management information systems, post-program followup activities, and research and evaluation activities. The balance of funds not so expended shall be used for activities similar to activities described in section 204. 102 STAT. 3253 “(B) If a service delivery area determines that administrative costs under this title will exceed the 10 percent administrative allocation, such area may use an additional 5 percent allocation of bonus payments or amounts reserved under subsection (a) for such activities if such area demonstrates to the Governor that the administering agency in the area needs additional funds to continue administrative activities under this title. “(c) Incentive Payments to Service Providers.— Each service delivery area may make incentive payments to service providers within its service delivery area, including participating State and local agencies, and community-based organizations, that demonstrate effectiveness in delivering employment and training services to individuals such as those described in section 503. “(d) Application of Section Relating to Administrative Adjudications.— Section 166 of this Act, relating to administrative adjudication, shall apply to the distribution of incentive bonus payments under this section. “SEC. 509. INFORMATION AND DATA COLLECTION. “(a) Technical Assistance.— In order to facilitate the collection, exchange, and compilation of data and information required by this title, the Secretary shall, within 90 days after the date of enactment of this title, begin providing, on an ongoing basis, technical assistance to the States. Such assistance shall include, at a minimum, cost-effective methods for using State and Federal records to which the Secretary has lawful access. “(b) Regulations.— The Secretary, the Secretary of Health and Human Services, and the Secretary of the Interior jointly shall issue regulations regarding the sharing, among States participating in the programs under this title, of the data and information necessary to fulfill the requirements of this title. Such regulations shall provide for— “(1) the maintenance of confidentiality of the information so shared, in accordance with Federal and State privacy laws, and “(2) penalties for any violation of such regulations. “(c) Annual Survey.— The Secretary shall conduct an annual survey of States participating in programs under this title and shall report to the Congress concerning— “(1) the success of such States in gathering the data and information required under this title; and “(2) methods for improving and refining the ability of such States to gather the data and information required under this title. “SEC. 510. START-UP COSTS. “(a) Application.— Before notifying the Secretary of an intent to participate in the incentive bonus program established under this title, a State may apply to the Secretary for financial assistance in accordance with this section. Such application shall be submitted to the Secretary not later than 120 days before the beginning of the program year. “(b) Contents.— Applications submitted under this section shall contain such information as the Secretary may reasonably require. “(c) Determinations of Awards.— (1) The Secretary shall determine the amounts to be awarded based on the need demonstrated in the application submitted by the State. 102 STAT. 3254 “(2) The Secretary shall notify the State of the determination made under this section no later than 60 days after receiving such State’s application. “(3) (A) Funds received by a State under this section shall be available for expenditure for the first 2 program years of such State’s participation under this title, beginning with the program year following the program year in which a determination under this section is made. Expenditure of such funds (or any portion thereof) shall be considered an agreement by the State to participate in accordance with this title for a period of not less than 2 consecutive program years, beginning with the first program year in which such funds become available for expenditure. “(B) Funds awarded to the State which remain unexpended at the end of such 2 program years shall be reallocated by the Secretary to other participating States. “(C) Funds received under this section by the State shall be used for activities such as those described in section 508(b) and for higher costs incurred in overcoming the substantial barriers to employment experienced by individuals eligible under this title. “(d) Allocation.— Funds received under this section may be allocated to State agencies or service delivery areas within the State for expenditure in accordance with this title. “(e) Notice of Proposed Rulemaking.— Not later than 3 months after the date of the enactment of this title, the Secretary shall issue a notice of proposed rule making with respect to this title and shall allow not less than 60 days for public comment. Final regulations shall be issued not later than 7 months following such date of enactment. “SEC. 511. EVALUATION AND PERFORMANCE STANDARDS. “(a) Evaluation.— The Secretary shall conduct or provide for an evaluation of the incentive bonus program authorized under this title. The Secretary shall consider— “(1) whether the program results in increased service under this Act to long-term welfare recipients and other hard-to-serve individuals; “(2) whether the program results in sustained employment of such welfare recipients and individuals, with resultant welfare and other cost savings to the Federal Government; “(3) whether the program is administratively feasible and cost effective; “(4) whether the services provided to other eligible participants under part A of title II are affected by the implementation and operation of the incentive bonus program; and “(5) such other factors as the Secretary deems appropriate. “(b) Report to Congress.— Not later than January 1, 1996, the Secretary shall report to the Congress on the effectiveness of the incentive bonus program authorized under this title. Such report shall include an analysis of the costs of such program and the results of such activities. “(c) Performance Standard.— The Secretary shall establish a performance standard which weights performance outcomes under this title to reflect the higher costs incurred in overcoming the substantial barriers to employment experienced by individuals eligible under this title. Not later than 2 years after the first program year, the Secretary shall prepare and submit to the Congress a report on the effect of such standard.”. 102 STAT. 3255 (b) Table of Contents Amendment.— The table of contents of the Act is amended by inserting after the items relating to title IV the following new items: “TITLE V—JOBS FOR EMPLOYABLE DEPENDENT INDIVIDUALS INCENTIVE BONUS PROGRAM “Sec. 501. Statement of purpose. “Sec. 502. Definitions. “Sec. 503. Eligibility for incentive bonuses. “Sec. 504. Additional eligibility requirements. “Sec. 505. Amount of incentive bonus, “Sec. 506. Applications and verification required. “Sec. 507. Payments. “Sec. 508. Use of incentive bonus funds. “Sec. 509. Information and data collection. “Sec. 510. Start-up costs. “Sec. 511. Evaluation and performance standards.”.