(1)

by redesignating section 172 as section 173; and

(2)

by inserting after section 171 the following new section:

172. ex-offenders Reentry Program Start-up Grants

(a) Purpose

The purpose of this section is to—

(1)

prompt innovation and improvement in the reentry of ex-offenders into the workforce so that successful initiatives can be continued and replicated; and

(2)

allow for the dissemination of information regarding best practices in preparing ex-offenders for sustained participation in the workforce.

(b) Definitions

In this section:

(1) Eligible entity

The term eligible entity means—

(A)

a private nonprofit organization under section 501(c)(3) of the Internal Revenue Code of 1986, including a faith-based organization;

(B)

a local board;

(C)

a State or local government;

(D)

an Indian or Native American entity eligible for grants under section 166;

(E)

an employer or group of employers;

(F)

an institution of higher education;

(G)

an industry or sector partnership; or

(H)

a trade or professional association.

(2) Eligible participant

(A) In general

The term eligible participant means an individual—

(i)

who has been convicted as a juvenile or an adult and imprisoned under Federal or State law; and

(ii)

who has not been released from prison or jail for more than 2 years before the date on which the individual begins participation in an activity funded under this section.

(B) Exception

Up to 10 percent of all participants may be individuals who do not meet the requirements of clause (ii) of subparagraph (A).

(3) Evidence-based

The term evidence-based means a program or practice that—

(A)

is demonstrated effective when implemented with fidelity;

(B)

is based on a clearly articulated and empirically supported theory;

(C)

has measurable outcomes relevant to workforce outcomes for reentering ex-offenders; and

(D)

has been scientifically tested and proven effective through randomized control studies or comparison group studies.

(4) Promising

The term promising refers to a program or practice that—

(A)

is demonstrated to be effective based on positive outcomes relevant to workforce engagement for reentering ex-offenders from one or more objective, independent, and scientifically valid evaluation; and

(B)

includes ongoing efforts to examine the effects of such program or practice.

(c) Program authorized

(1) In general

In carrying out the activities under this section, the Secretary shall—

(A)

use not less than 30 percent of the funds made available to carry out this section under section 173(d), to implement pay-for-performance contracts for a contract period of not more than 4 years with eligible entities to carry out projects to facilitate the reentry of ex-offenders into the workforce (which may include the activities described in subsection (f)(1)), and which—

(i)

specify a fixed amount that the Secretary will pay to the entity based on the achievement of specified levels of performance on each indicator of performance described in subsection (g)(1) within a defined timetable; and

(ii)

may provide for bonus payments from the Secretary to such entity to expand capacity to provide effective services; and

(B)

using any funds remaining to carry out this section under section 173(d), award grants, on a competitive basis, award grants for a period of not more than 4 years to eligible entities to enable such entities to provide skills development opportunities, job placement services, and mentoring to eligible participants.

(2) Priority

In awarding contracts or grants under this section, the Secretary shall give priority to eligible entities that—

(A)

establish partnerships with business, educational institutions, or eligible providers identified by the State under section 122 to provide a program of study leading to postsecondary credentials in in-demand occupations; or

(B)

provide on-the-job training or customized training that is designed to meet the specific requirements of an employer (including a group of employers) and is conducted with a commitment by the employer to employ an individual upon successful completion of the program.

(3) Additional contracts or grants

The Secretary may award, for not longer than a period of 4 years, one or more additional grants to an eligible entity that received a grant or contract under this section if the eligible entity achieved the expected performance levels identified by the eligible entity under subsection (d)(4) during the preceding grant or contract period.

(d) Application

To be eligible to receive a contract or grant under this section, an eligible entity shall submit an application to the Secretary, which shall include each of the following:

(1)

A detailed description of the program including the core services they will provide, how the eligible entity will recruit and select eligible participants for the program, how many participants they plan on serving each year, and the length of participation in the program.

(2)

A description of evidence-based or promising practices the eligible entity will use in the administration of the program.

(3)

A description of partnerships with local businesses to provide apprenticeship opportunities, work-based learning, and job placement and recruitment (if applicable).

(4)

The expected levels of performance the eligible entity will achieve on the indicators of performance described in subsection (g)(1).

(5)

An assurance that the eligible entity will coordinate activities with workforce development programs and other services provided under this title, including utilizing the one-stop delivery system of the local workforce development areas to provide appropriate services and recruit eligible individuals to ensure the maximum number of eligible individuals will have the opportunity to participate in the program.

(6)

In the case of a grant, an assurance that the eligible entity will meet the matching requirement described in subsection (e).

(7)

A plan to coordinate with other programs and entities, including those that may be provided by such other programs and entities, to provide substance abuse treatment services, mental health treatment services, housing services, and transportation services.

(8)

An assurance that the eligible entity will provide the data necessary for the indicators of performance in subsection (g).

(9)

A plan to continue the program with non-Federal funds after the grant or contract period.

(e) Matching requirement for grants

In order to receive a grant from the Secretary under this section, each eligible entity shall provide a non-Federal contribution, including cash and in-kind donations, in the following amounts:

(1)

With respect to the award period of the first grant awarded to such eligible entity under this section, in an amount that is not less than 25 percent of the total grant amount awarded to the eligible entity during such period.

(2)

With respect to any additional award periods, in an amount not less than 50 percent of the total grant amount awarded to the eligible entity during such additional period.

(f) Use of funds for grants

(1) In general

A grant awarded under this section may be used to—

(A)

provide workforce development and job placement services to eligible participants, including occupational skills education, on-the-job training, apprenticeship opportunities, work experience, job referrals, basic skills remediation, educational services, work readiness activities, and post-placement support, in coordination with the one-stop partners and one-stop operators that provide services at any center operated under a one-stop deliver system established under section 121;

(B)

mentor eligible participants, including the provision of support, guidance, and assistance in the community and the workplace to address the challenges faced by ex-offenders;

(C)

provide outreach to State or Federal correctional facilities to increase awareness, identify and recruit eligible participants, provide screening and assessment of eligible participants and align educational offerings with existing services available to individuals who are presently incarcerated;

(D)

coordinate with employers to develop on-the-job training or customized training programs and agreements around the hiring of eligible participants; or

(E)

carrying out the activities described in subparagraph (A), (B), (C), or (D) with respect to eligible participants who will be released from prison or jail within 90 days.

(2) Limitations

(A) Certain services excluded

Grants provided under this section may not be used to provide substance abuse treatment services, mental health treatment services, or housing services, except that such a grant may be used to coordinate with other programs and entities to provide substance abuse treatment services, mental health treatment services, or housing services to eligible participants.

(B) Administrative cost limit

A grantee may not use more than 5 percent of the funds received under a grant for administrative costs, including for the purpose of collecting information for purposes of subsection (g)(1).

(C) Limit on amount paid as stipends to participants

A grantee may not use more than 15 percent of the funds received under such grant to provide stipends to program participants while completing an educational or skill development program.

(D) Limit on funds for emergency situations

A grantee may not use more than 5 percent of the funds to assist eligible participants in an emergency situation.

(g) Performance outcomes and accountability

(1) Indicators of performance

Each eligible entity receiving a grant or contract under this section shall report each year to the Secretary on the primary indicators of performance described in section 116(b)(2)(A)(ii) and an indicator established by the Secretary with respect to participant recidivism.

(2) Independent evaluation

Not later than 5 years after the date of enactment of this section and from amounts made available under section 173(d) for this section, the Secretary shall submit to Congress a report on an independent evaluation of each grant and contract entered into under this section, including an assessment of the effectiveness of each such grant and contract in reducing recidivism and assisting eligible participants in—

(A)

earning credentials;

(B)

finding and maintaining employment; and

(C)

increasing their earnings.

(3) Report

The Secretary shall, on an annual basis—

(A)

submit to the Committee on Education and Workforce of the House of Representatives, and the Committee on Health, Employment, Labor, and Pensions of the Senate, a report, with respect to the preceding fiscal year, on—

(i)

the number of individuals who participated in programs assisted under this section;

(ii)

the percentage of individuals participating in a program assisted under this section that successfully completed the program; and

(iii)

the performance of eligible entities as measured by the performance indicators set forth in paragraph (1); and

(B)

publish such report on a publicly available website of the Department of Labor.

(4) Disseminating best practices

Using the findings of the independent evaluation under paragraph (2) the Secretary shall disseminate information to State and local government, local boards, and relevant stakeholders regarding best practices in providing workforce development opportunities for ex-offenders and reducing recidivism.

(h) Administrative activities

The Secretary may use up to 2 percent of the funds annually appropriated to carry out the activities of this section, including disseminating best practices and providing technical assistance to eligible entities receiving grants or contracts under this section and partnering businesses regarding the availability of the work opportunity credit determined under section 51(a) of the Internal Revenue Code of 1986.

(i) Rule of construction

Nothing in this section shall be construed to authorize any new appropriations to carry out the purpose of this section.