(a)   In this section, "demonstration site" means a site selected by the
Secretary, in consultation with the director of the local department of
social services.
  (b)   The Secretary may establish a FIP demonstration site in at least one,
but not exceeding six, jurisdiction.
  (c)   Notwithstanding any other provision of law, the director of the local
department of social services shall appoint a director of the FIP
established in a demonstration site who shall report directly to the
director of the local department.
  (d)   Notwithstanding any other provision of law, the Secretary shall have
sole authority to approve the demonstration site plans that will govern
FIP functions in a demonstration site, including the authority to
approve demonstration site plans that will:
    (1)   Assist families on welfare that have an employable parent toward a
lasting exit from temporary cash assistance;
    (2)   Ensure that individuals and families receive appropriate benefits;
    (3)   Reduce errors in the administration of FIP;
    (4)   Place temporary cash assistance recipients in employment in which their
earnings will likely increase; and
    (5)   Improve the types of employment and employment retention rates of
existing and former welfare recipients.
  (e)   The director of the local unit shall:
    (1)   Develop a demonstration site plan for submittal to the Secretary for
approval which will detail its:
      (i)   Programmatic structure, including any programmatic changes;
      (ii)   Organizational structure, including any organizational changes;
      (iii)   Pay incentive structure and criteria for the award of pay incentives;
      (iv)   Measurable performance criteria and how these relate to the incentive
structure; and
      (v)   Target performance criteria;
    (2)   Implement the plan as approved;
    (3)   Have the proper operation of the demonstration and the achievement of
the target performance criteria be an element of that local unit
director's performance evaluation; and
    (4)   Report back to the Department of Human Resources on the progress
achieved in the demonstration site.
  (f)   The Secretary shall establish a performance incentive program to
provide pay incentives for employees in a demonstration site.
  (g)   The Secretary's powers under this section shall be given a liberal
construction.
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