<enum>I</enum><header>Youth opportunity grant program</header> <section id="idD70AF8F4334F40258AC6AC7C4F5CCF84"><enum>101.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds the following:</text> <paragraph id="id55DE5DEF754C4D0CBE613722A5164B0F"><enum>(1)</enum><text>Finding employment that provides steady income and a career track is a problem for young, undereducated men and women who lack educational credentials and are disconnected from the labor market.</text> </paragraph><paragraph id="idEC232F409E0B4E7F943F3DD09D61E328"><enum>(2)</enum><text>That problem is particularly acute for young African-American men. In 2006, over <fraction>1/5</fraction>, or 21.8 percent, of black men ages 16 through 24 were unemployed. This is roughly double the unemployment rate for all young men (11.2 percent).</text> </paragraph><paragraph id="idE1320379DF5F4B1C9B0874E941E80895"><enum>(3)</enum><text>Even over a period of relative economic growth, employment for disconnected African-American men has declined. In 1999, 65 percent of African-American male high school dropouts were jobless and not looking for work. In 2004, that rate had risen to 72 percent.</text> </paragraph><paragraph id="idF5945694292A41C09F8CF55190372603"><enum>(4)</enum><text>The Youth Opportunity Grant Program was established in the Workforce Investment Act of 1998 to provide intensive job training and placement activities as well as other educational, social, and recreational services to at-risk, hard-to-serve youth.</text> </paragraph><paragraph id="id9D2C7162D1134D3FB878D373F644CA09"><enum>(5)</enum><text>The Youth Opportunity Grant Program built upon the most promising strategies of previous demonstration programs that strongly suggest the effectiveness of intensive case management and follow-up services in assisting disconnected young men and women in finding long-term employment.</text> </paragraph><paragraph id="idDB97C5D9EE6B4C0F99284FCD9995DA0C"><enum>(6)</enum><text>By reauthorizing and refining the Youth Opportunity Grant Program, Congress could help make strides against those serious problems faced by both young African-American men and other disconnected youth.</text> </paragraph><paragraph id="id50D5389249B7437C8DFF0581E9E1E429"><enum>(7)</enum><text>Over the course of the Youth Opportunity Grant Program, 36 localities with high poverty rates received funding through grants. The Youth Opportunity Grant Program was effective in assisting hard-to-reach populations. The Department of Labor estimates that 42 percent of the eligible youth and 62 percent of the eligible out-of-school youth in the target areas enrolled in the Youth Opportunity Grant Program.</text> </paragraph><paragraph id="id2BB4E065578B4579B2DAF9D743B124C9"><enum>(8)</enum><text>Further understanding of the successes of, challenges faced by, and shortcomings of, the Youth Opportunity Grant Program in the past, and in the future, will require extensive evaluation and study by the Department of Labor.</text> </paragraph></section><section id="idBBE1782C1F3E4F73910B4FF8992312F4"><enum>102.</enum><header>Youth opportunity grants</header><text display-inline="no-display-inline">Section 169 of the Workforce Investment Act of 1998 (29 U.S.C. 2914) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="id07C9CFFF6A214957A819208444F9D24D" style="OLC"> <section id="id285E4570EE3A42A19BAF1F086E57DFA1"><enum>169.</enum><header>Youth opportunity grants</header> <subsection id="IDbc39a6e3ba5844fc89e12af29e9b1a86"><enum>(a)</enum><header>Grants</header> <paragraph id="ID3c52d243f53943c6b1c228cd43294a9d"><enum>(1)</enum><header>In general</header><text>Using funds made available under subsection (j), the Secretary shall make grants to eligible local boards described in subsection (c) and eligible entities described in subsection (d) to carry out programs that provide activities described in subsection (b) for youth and young adults. The boards and entities shall carry out the programs to increase the long-term employment of youth and young adults who seek assistance and who live in empowerment zones, enterprise communities, or high poverty areas.</text> </paragraph><paragraph id="IDa3996688665845f6b6f8eb0454542008"><enum>(2)</enum><header>Definition</header><text>In this section:</text> <subparagraph id="id381D9C7C4CE2413EA39D904431E102C6"><enum>(A)</enum><header>Hard-to-serve young adult</header><text>The term <term>hard-to-serve young adult</term> means an individual who is—</text> <clause id="id8164DB755CF24FC19B8DBE3C1D3115B9"><enum>(i)</enum><text>not less than age 25 and not more than age 30; and</text> </clause><clause id="id3F3277AC76574FF1B7A724D07F33577A"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="idCD4E6D6E155A45F29D30ED1285C7E30E"><enum>(I)</enum><text>an unemployed individual;</text> </subclause><subclause id="id1D821E074C444E16B5E90A03788F9BA2" indent="up1"><enum>(II)</enum><text>a school dropout;</text> </subclause><subclause id="id1867E466BDD64C52863F691747010900" indent="up1"><enum>(III)</enum><text>an individual who has not received a secondary school diploma or its recognized equivalent;</text> </subclause><subclause id="id61A0B0C44A204BA5ABEDE5DFAD33602A" indent="up1"><enum>(IV)</enum><text>an ex-offender; or</text> </subclause><subclause id="id550E33260DFB480AA78C7319FC180D06" indent="up1"><enum>(V)</enum><text>a noncustodial parent with a child support obligation.</text> </subclause></clause></subparagraph><subparagraph id="idA0316CF631064C80B48AC13E2FAEE303"><enum>(B)</enum><header>Youth or young adult</header><text>The term <term>youth or young adult</term> means an individual who is not less than age 14 and not more than age 30.</text> </subparagraph></paragraph><paragraph id="ID840c5b330f40478e9e6e1aaf1009e504"><enum>(3)</enum><header>Grant period</header><text>The Secretary may make a grant under this section for a 2-year period, and may renew the grant for each of the 3 succeeding years.</text> </paragraph><paragraph id="ID13a5b90c1ed2485489c16c99db11e066"><enum>(4)</enum><header>Grant awards</header><text>In making grants under this section, the Secretary shall ensure that grants are distributed equitably among local boards and entities serving urban areas and local boards and entities serving rural areas, taking into consideration the poverty rate in such urban and rural areas, as described in subsection (c)(3)(B).</text> </paragraph></subsection><subsection id="IDf0f67a805abe485780ce3059c02aeffc"><enum>(b)</enum><header>Use of funds</header> <paragraph id="ID7e65efc81f0044c5a70ce4146b65f5cd"><enum>(1)</enum><header>In general</header><text>A local board or entity that receives a grant under this section shall use the funds made available through the grant to provide job training and employment activities and related services, including—</text> <subparagraph id="id91A17DAA718B43FA82F1C4F6E7806475"><enum>(A)</enum><text>activities that meet the requirements of section 129;</text> </subparagraph><subparagraph id="id34B5380E480E4F99BDDD6A2042A2BD4A"><enum>(B)</enum><text>youth development activities such as activities relating to leadership development, citizenship, and re-entry from the justice and juvenile justice systems, community service, and recreation activities; and</text> </subparagraph><subparagraph id="ID8bfce681f9864eb4943a6b007ce24d0a"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="idD65F43C2916542E897F0096EBBCD3C85"><enum>(i)</enum><text>workforce preparation and attitudinal training;</text> </clause><clause id="id6D53C0ABED7A4517BED77147DBA0BC1B" indent="up1"><enum>(ii)</enum><text>sector-specific skills training as described in subsection (f)(1)(D);</text> </clause><clause id="idC0AC11417F71407EAE5C5D3A1B4ED713" indent="up1"><enum>(iii)</enum><text>educational completion services, including classes that lead to a secondary school diploma or its recognized equivalent (and programs to prepare for such a class), remedial reading and mathematics classes (including classes to prepare an individual to read and do mathematics at a college level), and skills certification and credentialing programs;</text> </clause><clause id="id7909E9A4D89140BAB1292C6EFDD704C1" indent="up1"><enum>(iv)</enum><text>access to internships, transitional jobs, work experience, and nontraditional employment opportunities;</text> </clause><clause id="id7D7CFFE22A744999B35C43583E7D7222" indent="up1"><enum>(v)</enum><text>access to other services either directly or through an organization that enters into a strategic partnership described in subsection (e) with the local board or entity, including parenting classes for fathers and mothers, financial literacy services, services to improve health care (and mental health care) treatment and access, and services to improve access to affordable housing and shelter; and</text> </clause><clause id="idDBF81C222D23446E8E4AEBE9CB488FAE" indent="up1"><enum>(vi)</enum><text>assistance in obtaining the earned income credit under section 32 of the Internal Revenue Code of 1986 and obtaining benefits through government entitlement programs, such as the Medicaid program under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) and unemployment compensation programs, as well as other State and local entitlement programs that may be applicable.</text> </clause></subparagraph></paragraph><paragraph id="ID32e9dce8118a42b1aae8989ece7f66bc"><enum>(2)</enum><header>Intensive placement and follow-up services</header><text>In providing activities under this section, a local board or entity shall provide—</text> <subparagraph id="IDc43b23ae7ec64a8a873fed1df40b8b14"><enum>(A)</enum><text>intensive placement services; and</text> </subparagraph><subparagraph id="ID428e9787c5594b22ab8080ba9546b24a"><enum>(B)</enum><text>follow-up services, including case management, every 2 months for not less than 24 months after the completion of participation in the other activities described in this subsection, as appropriate.</text> </subparagraph></paragraph><paragraph id="idAF36F830D4614518B49DA5431F7255F4"><enum>(3)</enum><header>Limitation on use for hard-to-serve young adults</header><text>The local board or entity shall not use more than 25 percent of the funds made available through the grant to provide activities for hard-to-serve young adults.</text> </paragraph></subsection><subsection id="IDa2763434c8ea4a459b175a0018ac6f01"><enum>(c)</enum><header>Eligible local boards</header><text>To be eligible to receive a grant under this section, a local board shall serve a community that—</text> <paragraph id="ID3cd994bbe30c4c579fc99496c97a5d8d"><enum>(1)</enum><text>has been designated as an empowerment zone or enterprise community under section 1391 of the Internal Revenue Code of 1986;</text> </paragraph><paragraph id="IDd43dbd63e4ea487aa5f06c6bb9fa73d7"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="idC546FFFB127345B9A0AAE0F4EAB6F0B1"><enum>(A)</enum><text>is a State without a zone or community described in paragraph (1); and</text> </subparagraph><subparagraph id="id5B1C3143B9D54797BC9C6E77CD4160C1" indent="up1"><enum>(B)</enum><text>has been designated as a high poverty area by the Governor of the State; or</text> </subparagraph></paragraph><paragraph id="IDdbdafda71e7a49bdb89445fbd4be1800"><enum>(3)</enum><text>is 1 of 2 areas in a State that—</text> <subparagraph id="IDf0326b9f200a4a98bf601cc380ed023a"><enum>(A)</enum><text>have been designated by the Governor as areas for which a local board may apply for a grant under this section; and</text> </subparagraph><subparagraph id="IDa21e93437de144e9b1287b42683cd810"><enum>(B)</enum><text>meet the poverty rate criteria set forth in subsections (a)(4), (b), and (d) of section 1392 of the Internal Revenue Code of 1986.</text> </subparagraph></paragraph></subsection><subsection id="ID7bb000503fa34c9e9c4f8691b06ecdeb"><enum>(d)</enum><header>Eligible entities</header><text>To be eligible to receive a grant under this section, an entity (other than a local board) shall—</text> <paragraph id="IDea1a8c94de2242cf9c4cf3ea710284b1"><enum>(1)</enum><text>be a recipient of financial assistance under section 166; and</text> </paragraph><paragraph id="ID12919614bb7e4171b814d849c8930a9d"><enum>(2)</enum><text>serve a community that—</text> <subparagraph id="ID1611335aff434e798409f697fa3b78ad"><enum>(A)</enum><text>meets the poverty rate criteria set forth in subsections (a)(4), (b), and (d) of section 1392 of the Internal Revenue Code of 1986; and</text> </subparagraph><subparagraph id="id8BA569F1D47B4926AB7F5250CED95F84"><enum>(B)</enum><text>is located on an Indian reservation or serves Oklahoma Indians, or Native villages or Native groups (as such terms are defined in section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602)).</text> </subparagraph></paragraph></subsection><subsection id="id5FA8964D3EAA427AB7F5ED88C9890DD1"><enum>(e)</enum><header>Strategic partnerships</header> <paragraph id="idCDA1CF955340479F8B59ACBE46E09972"><enum>(1)</enum><header>Local boards</header><text>An eligible local board may—</text> <subparagraph id="idD24D252951F7427895C23A7437F23ADF"><enum>(A)</enum><text>work independently to provide activities under this section; or</text> </subparagraph><subparagraph id="id662F52B9A7DF43528F07EA124B5D6CAE"><enum>(B)</enum><text>enter into a strategic partnership to provide activities under this section with 1 or more entities consisting of—</text> <clause id="id196D9F458A164601B4A6B40AAF563862"><enum>(i)</enum><text>a community-based job training provider who is an eligible provider identified in accordance with section 122(e)(3), or another provider selected by the local board;</text> </clause><clause id="ID5d68802941cb49e6b59fdc9b514f7f30"><enum>(ii)</enum><text>State or local government entities;</text> </clause><clause id="ID0ee033ec3d5342149ae347f06e463fa4"><enum>(iii)</enum><text>labor organizations;</text> </clause><clause id="IDd73aafb8749f498481f8323c9bdc9590"><enum>(iv)</enum><text>other entities described in the statement of need required by subsection (f)(1)(C);</text> </clause><clause id="ID184eb45379184f0780cb527e486f73e9"><enum>(v)</enum><text>private sector employers;</text> </clause><clause id="ID4d64bebed23e4716b5b1c364de90ed17"><enum>(vi)</enum><text>educational institutions, including secondary schools (which may be public schools, parochial schools, or other private schools) or community colleges; or</text> </clause><clause id="idEF1A09D232B1406882771F1CC04F35F7"><enum>(vii)</enum><text>entities in the judicial system, entities in the juvenile justice system, or organizations representing probation and parole officers.</text> </clause></subparagraph></paragraph><paragraph id="idFB4D6BFC0C2348F299199CD53CCDC624"><enum>(2)</enum><header>Entities</header><text>An eligible entity may—</text> <subparagraph id="id54819E94930F4CDBAB55CD5A6A223509"><enum>(A)</enum><text>work independently to provide activities under this section; or</text> </subparagraph><subparagraph id="id39986E0D187C42768666F548FD30EC89"><enum>(B)</enum><text>enter into a strategic partnership to provide activities under this section with—</text> <clause id="id6FEEFAB586DC4E7BA0DCFECEB5090602"><enum>(i)</enum><text>the local board; and</text> </clause><clause id="id073641EBA2B4432F9A95FF07795EFE91"><enum>(ii)</enum><text>1 or more entities described in paragraph (1)(B).</text> </clause></subparagraph></paragraph></subsection><subsection id="ID0de3b4d99b8d420991fabc3058dec6e4"><enum>(f)</enum><header>Application</header><text>To be eligible to receive a grant under this section, a local board or entity shall submit an application (individually or as part of a strategic partnership described in subsection (e)) to the Secretary at such time, in such manner, and containing such information as the Secretary may require, including—</text> <paragraph id="IDd7a8aacc1ea946e692cc6cc4e74426d6"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id9FD6C855AE414CDC86D7583F2DD80A1C"><enum>(A)</enum><text>a description of the activities that the local board or entity will provide under this section to youth and young adults in the community described in subsection (c) or (d);</text> </subparagraph><subparagraph id="ID92a7d1a41478451182cc9027aedf9873" indent="up1"><enum>(B)</enum><text>a description of the strategic partnership referred to in subsection (e), if any, that the applicant intends to enter into to provide activities under this section;</text> </subparagraph><subparagraph id="IDef3d6c7eea4e41288de9fb063eee7453" indent="up1"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="id5A3C82543A454BEFA9C955364A7BF3F7"><enum>(i)</enum><text>information describing how the applicant will coordinate the planning and implementation of the activities to be carried out under the grant with entities serving youth in the community involved, including the one-stop operator and one-stop partners in the local workforce investment system, educational institutions including institutions of higher education, child welfare agencies, entities in the juvenile justice system, foster care agencies, and such other community-based organizations as may be appropriate; and</text> </clause><clause id="idAEDD546C6E4A4586854956E69EC00070" indent="up1"><enum>(ii)</enum><text>a statement of need for the community;</text> </clause></subparagraph><subparagraph id="ID03473dd3ecd44feab6a7a7e56e1e80a9" indent="up1"><enum>(D)</enum><text>information identifying employment sectors in the local and regional economy that could employ youth and young adults served under the grant and a plan to provide sector-specific skills training for jobs in those sectors and employment opportunities in those sectors; and</text> </subparagraph><subparagraph id="ID08077e415e7440279162d938d4f8215c" indent="up1"><enum>(E)</enum><text>information identifying the specific role, if any, that private sector employers in growing employment sectors in the local and regional economy will play in that plan, including information describing their skills training curricula and job placement programs;</text> </subparagraph></paragraph><paragraph id="IDfafd60cfd74a46258441a1e28ec54b2d"><enum>(2)</enum><text>a description of the performance measures negotiated under subsection (h), and the manner in which the local boards or entities will carry out the activities to meet the performance measures;</text> </paragraph><paragraph id="ID894dcc5a87634f3d923b8ddfbe634023"><enum>(3)</enum><text>a description of the manner in which the activities will be linked to activities described in section 129; and</text> </paragraph><paragraph id="ID1c884c172c5040c482d090e50cd5590b"><enum>(4)</enum><text>a description of the community support, including financial support through leveraging additional public and private resources, for the activities.</text> </paragraph></subsection><subsection id="ID2b15aa5810b44b779b4ffafd9b6d7e1e"><enum>(g)</enum><header>Consideration</header><text>In making grants under this section, the Secretary shall give special consideration to a local board or entity that submits an application under subsection (f) as part of a strategic partnership described in subsection (e) that includes a private sector employer if the employer agrees to—</text> <paragraph id="ID1082d82c69c74f35897014ddb2ff466a"><enum>(1)</enum><text>commit to hire youth and young adults who complete the program carried out under the grant involved;</text> </paragraph><paragraph id="ID654be2fe46f04db09b9692aee48e1563"><enum>(2)</enum><text>provide personnel, facilities, equipment, and a skills training curriculum for the program;</text> </paragraph><paragraph id="ID2f4285f6bf854b4a811cad35943ce634"><enum>(3)</enum><text>provide internships, mentoring, and apprenticeship opportunities for participants in the program; or</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID3c11a127c0424ba8b0ebea000b7f9b36"><enum>(4)</enum><text>provide funding, scholarships, and access to specified employer-based resources for the program.</text> </paragraph></subsection><subsection id="ID8eeb31e9b8c941d693f31cea73796117"><enum>(h)</enum><header>Performance measures</header> <paragraph id="IDd020dae7520a4394939a59a71eb0e9db"><enum>(1)</enum><header>In general</header><text>The Secretary shall negotiate and reach agreement with the local board or entity on performance measures, for the indicators of performance referred to in subparagraphs (A) and (B) of section 136(b)(2), that will be used under paragraph (3) to evaluate the performance of the local board or entity in carrying out the activities described in subsection (b). Each local performance measure shall consist of such an indicator of performance, and a performance level referred to in paragraph (2).</text> </paragraph><paragraph id="id2C914F6C17284984A7FD6BA7D5F09BD8"><enum>(2)</enum><header>Performance levels</header><text>The Secretary shall negotiate and reach agreement with the local board or entity regarding the—</text> <subparagraph id="id8886EBF6132948DAA0FD002FE014F30F"><enum>(A)</enum><text>overall performance levels expected to be achieved by the local board or entity on the indicators of performance; and</text> </subparagraph><subparagraph id="id3E94100A6657466C8DBA7CAE7E7E3F34"><enum>(B)</enum><text>separate performance levels for those indicators for the performance of the board or entity—</text> <clause id="idF4B49CD7752A4A5EB9354CED00795E7C"><enum>(i)</enum><text>regarding participants in the activities who are not less than age 14 and not more than age 24; and</text> </clause><clause id="id1960C8DF69A84B2FBCD1075701CE34C6"><enum>(ii)</enum><text>regarding participants in the activities who are not less than age 25 and not more than age 30.</text> </clause></subparagraph></paragraph><paragraph id="IDe915bcd32ea349fab72efed9b131cb53"><enum>(3)</enum><header>Evaluations and reports</header> <subparagraph id="idF79DC5666DC94714BB9BBED94C3D4ECC"><enum>(A)</enum><header>Evaluations</header> <clause id="idDD382C255BC14FBAB36FF62D58508555"><enum>(i)</enum><header>Evaluations of prior activities</header><text>Not later than 2 years after the date of enactment of the <short-title>Supporting Training and Employment Potential for Underemployed Populations Act</short-title>, the Secretary shall complete the evaluations described in paragraph (1) of local boards and entities, using performance measures with overall performance levels described in paragraph (2)(A), concerning activities carried out under subsection (b) prior to that date of enactment.</text> </clause><clause id="idA7BFF5F897E74AB2A3B888D902461C34"><enum>(ii)</enum><header>Evaluations of new activities</header><text>Not later than 2 years after a local board or entity receives a grant under this section after that date of enactment, the Secretary shall conduct the evaluations described in paragraph (1) of that local board or entity, using performance measures with overall performance levels described in paragraph (2)(A) and performance measures with separate performance levels described in paragraph (2)(B).</text> </clause><clause id="id5B940719888341FA9498F96FDAC8B743"><enum>(iii)</enum><header>Comparison groups</header><text>The evaluations conducted under this paragraph shall include evaluations of carefully matched comparison groups.</text> </clause></subparagraph><subparagraph id="id176ACE395799406C81182B59B1ACD709"><enum>(B)</enum><header>Reports</header><text>The Secretary shall prepare a report, based on the evaluations described in subparagraph (A)(i), that contains the baseline data obtained and that begins to detail the best practices of recipients of grants under this section throughout the Nation. The Secretary shall prepare an annual report, based on the evaluations described in subparagraph (A)(ii), that contains the data obtained and that details the best practices of recipients of grants under this section throughout the Nation, with attention to how different activities impact both different demographic sectors of the population and different age groups in the population.</text> </subparagraph></paragraph><paragraph id="id024848C178D94E27890B915D11694180"><enum>(4)</enum><header>Use</header><text>If the Secretary, in conducting evaluations under paragraph (3), determines that a local board or entity fails to meet the performance measures for 2 fiscal years, the local board or entity shall not be eligible to receive a grant under this section for a subsequent fiscal year.</text> </paragraph></subsection><subsection id="IDec06ce19d0ef49359ef6295deb837cc2"><enum>(i)</enum><header>Incentives for business partners</header><text>The Secretary shall establish a plan to increase the availability of bonds through the Federal Bonding Program carried out through the Employment and Training Administration to employers that are partners in the programs carried out under this section.</text> </subsection><subsection id="id5ED8F45BAE684F9DB54C9F40DC8A7D64"><enum>(j)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $250,000,000 for fiscal year 2008 and each subsequent fiscal year.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="id750B31C6F22B4208A940CE1495F8DC3E"><enum>103.</enum><header>Conforming amendments</header><text display-inline="no-display-inline">Section 127 of the Workforce Investment Act of 1998 (29 U.S.C. 2852) is amended—</text> <paragraph id="id5024F39856044C6C83223BA016C9AB4A"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(1)—</text> <subparagraph id="id407A7396966149199462B13CEB81ACF2"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>sections</quote> and inserting <quote>section</quote>; and</text> </subparagraph><subparagraph id="idB5725A573D5845E0B0D50E45705D913F"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>and 169</quote> and all that follows and inserting <quote>; and</quote>; and</text> </subparagraph></paragraph><paragraph id="id9A3EC3541ED84D118ABD3C4A61ED38BF"><enum>(2)</enum><text>in subsection (b)(1)(A)—</text> <subparagraph id="id08967044D72F4A8EA442E1B5E9B9A99F"><enum>(A)</enum><text>in clause (i), by striking <quote>provide youth opportunity</quote> and all that follows through <quote>grants) and</quote>; and</text> </subparagraph><subparagraph id="id840A55D942124B20A9F83519168CFA9E"><enum>(B)</enum><text>by striking clause (iv).</text> </subparagraph></paragraph></section>

Short title

This Act may be cited as the

Supporting Training and Employment Potential for Underemployed Populations Act

or the

STEP UP Act

<enum>I</enum><header>Youth opportunity grant program</header> <section id="idD70AF8F4334F40258AC6AC7C4F5CCF84"><enum>101.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds the following:</text> <paragraph id="id55DE5DEF754C4D0CBE613722A5164B0F"><enum>(1)</enum><text>Finding employment that provides steady income and a career track is a problem for young, undereducated men and women who lack educational credentials and are disconnected from the labor market.</text> </paragraph><paragraph id="idEC232F409E0B4E7F943F3DD09D61E328"><enum>(2)</enum><text>That problem is particularly acute for young African-American men. In 2006, over <fraction>1/5</fraction>, or 21.8 percent, of black men ages 16 through 24 were unemployed. This is roughly double the unemployment rate for all young men (11.2 percent).</text> </paragraph><paragraph id="idE1320379DF5F4B1C9B0874E941E80895"><enum>(3)</enum><text>Even over a period of relative economic growth, employment for disconnected African-American men has declined. In 1999, 65 percent of African-American male high school dropouts were jobless and not looking for work. In 2004, that rate had risen to 72 percent.</text> </paragraph><paragraph id="idF5945694292A41C09F8CF55190372603"><enum>(4)</enum><text>The Youth Opportunity Grant Program was established in the Workforce Investment Act of 1998 to provide intensive job training and placement activities as well as other educational, social, and recreational services to at-risk, hard-to-serve youth.</text> </paragraph><paragraph id="id9D2C7162D1134D3FB878D373F644CA09"><enum>(5)</enum><text>The Youth Opportunity Grant Program built upon the most promising strategies of previous demonstration programs that strongly suggest the effectiveness of intensive case management and follow-up services in assisting disconnected young men and women in finding long-term employment.</text> </paragraph><paragraph id="idDB97C5D9EE6B4C0F99284FCD9995DA0C"><enum>(6)</enum><text>By reauthorizing and refining the Youth Opportunity Grant Program, Congress could help make strides against those serious problems faced by both young African-American men and other disconnected youth.</text> </paragraph><paragraph id="id50D5389249B7437C8DFF0581E9E1E429"><enum>(7)</enum><text>Over the course of the Youth Opportunity Grant Program, 36 localities with high poverty rates received funding through grants. The Youth Opportunity Grant Program was effective in assisting hard-to-reach populations. The Department of Labor estimates that 42 percent of the eligible youth and 62 percent of the eligible out-of-school youth in the target areas enrolled in the Youth Opportunity Grant Program.</text> </paragraph><paragraph id="id2BB4E065578B4579B2DAF9D743B124C9"><enum>(8)</enum><text>Further understanding of the successes of, challenges faced by, and shortcomings of, the Youth Opportunity Grant Program in the past, and in the future, will require extensive evaluation and study by the Department of Labor.</text> </paragraph></section><section id="idBBE1782C1F3E4F73910B4FF8992312F4"><enum>102.</enum><header>Youth opportunity grants</header><text display-inline="no-display-inline">Section 169 of the Workforce Investment Act of 1998 (29 U.S.C. 2914) is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="id07C9CFFF6A214957A819208444F9D24D" style="OLC"> <section id="id285E4570EE3A42A19BAF1F086E57DFA1"><enum>169.</enum><header>Youth opportunity grants</header> <subsection id="IDbc39a6e3ba5844fc89e12af29e9b1a86"><enum>(a)</enum><header>Grants</header> <paragraph id="ID3c52d243f53943c6b1c228cd43294a9d"><enum>(1)</enum><header>In general</header><text>Using funds made available under subsection (j), the Secretary shall make grants to eligible local boards described in subsection (c) and eligible entities described in subsection (d) to carry out programs that provide activities described in subsection (b) for youth and young adults. The boards and entities shall carry out the programs to increase the long-term employment of youth and young adults who seek assistance and who live in empowerment zones, enterprise communities, or high poverty areas.</text> </paragraph><paragraph id="IDa3996688665845f6b6f8eb0454542008"><enum>(2)</enum><header>Definition</header><text>In this section:</text> <subparagraph id="id381D9C7C4CE2413EA39D904431E102C6"><enum>(A)</enum><header>Hard-to-serve young adult</header><text>The term <term>hard-to-serve young adult</term> means an individual who is—</text> <clause id="id8164DB755CF24FC19B8DBE3C1D3115B9"><enum>(i)</enum><text>not less than age 25 and not more than age 30; and</text> </clause><clause id="id3F3277AC76574FF1B7A724D07F33577A"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="idCD4E6D6E155A45F29D30ED1285C7E30E"><enum>(I)</enum><text>an unemployed individual;</text> </subclause><subclause id="id1D821E074C444E16B5E90A03788F9BA2" indent="up1"><enum>(II)</enum><text>a school dropout;</text> </subclause><subclause id="id1867E466BDD64C52863F691747010900" indent="up1"><enum>(III)</enum><text>an individual who has not received a secondary school diploma or its recognized equivalent;</text> </subclause><subclause id="id61A0B0C44A204BA5ABEDE5DFAD33602A" indent="up1"><enum>(IV)</enum><text>an ex-offender; or</text> </subclause><subclause id="id550E33260DFB480AA78C7319FC180D06" indent="up1"><enum>(V)</enum><text>a noncustodial parent with a child support obligation.</text> </subclause></clause></subparagraph><subparagraph id="idA0316CF631064C80B48AC13E2FAEE303"><enum>(B)</enum><header>Youth or young adult</header><text>The term <term>youth or young adult</term> means an individual who is not less than age 14 and not more than age 30.</text> </subparagraph></paragraph><paragraph id="ID840c5b330f40478e9e6e1aaf1009e504"><enum>(3)</enum><header>Grant period</header><text>The Secretary may make a grant under this section for a 2-year period, and may renew the grant for each of the 3 succeeding years.</text> </paragraph><paragraph id="ID13a5b90c1ed2485489c16c99db11e066"><enum>(4)</enum><header>Grant awards</header><text>In making grants under this section, the Secretary shall ensure that grants are distributed equitably among local boards and entities serving urban areas and local boards and entities serving rural areas, taking into consideration the poverty rate in such urban and rural areas, as described in subsection (c)(3)(B).</text> </paragraph></subsection><subsection id="IDf0f67a805abe485780ce3059c02aeffc"><enum>(b)</enum><header>Use of funds</header> <paragraph id="ID7e65efc81f0044c5a70ce4146b65f5cd"><enum>(1)</enum><header>In general</header><text>A local board or entity that receives a grant under this section shall use the funds made available through the grant to provide job training and employment activities and related services, including—</text> <subparagraph id="id91A17DAA718B43FA82F1C4F6E7806475"><enum>(A)</enum><text>activities that meet the requirements of section 129;</text> </subparagraph><subparagraph id="id34B5380E480E4F99BDDD6A2042A2BD4A"><enum>(B)</enum><text>youth development activities such as activities relating to leadership development, citizenship, and re-entry from the justice and juvenile justice systems, community service, and recreation activities; and</text> </subparagraph><subparagraph id="ID8bfce681f9864eb4943a6b007ce24d0a"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="idD65F43C2916542E897F0096EBBCD3C85"><enum>(i)</enum><text>workforce preparation and attitudinal training;</text> </clause><clause id="id6D53C0ABED7A4517BED77147DBA0BC1B" indent="up1"><enum>(ii)</enum><text>sector-specific skills training as described in subsection (f)(1)(D);</text> </clause><clause id="idC0AC11417F71407EAE5C5D3A1B4ED713" indent="up1"><enum>(iii)</enum><text>educational completion services, including classes that lead to a secondary school diploma or its recognized equivalent (and programs to prepare for such a class), remedial reading and mathematics classes (including classes to prepare an individual to read and do mathematics at a college level), and skills certification and credentialing programs;</text> </clause><clause id="id7909E9A4D89140BAB1292C6EFDD704C1" indent="up1"><enum>(iv)</enum><text>access to internships, transitional jobs, work experience, and nontraditional employment opportunities;</text> </clause><clause id="id7D7CFFE22A744999B35C43583E7D7222" indent="up1"><enum>(v)</enum><text>access to other services either directly or through an organization that enters into a strategic partnership described in subsection (e) with the local board or entity, including parenting classes for fathers and mothers, financial literacy services, services to improve health care (and mental health care) treatment and access, and services to improve access to affordable housing and shelter; and</text> </clause><clause id="idDBF81C222D23446E8E4AEBE9CB488FAE" indent="up1"><enum>(vi)</enum><text>assistance in obtaining the earned income credit under section 32 of the Internal Revenue Code of 1986 and obtaining benefits through government entitlement programs, such as the Medicaid program under title XIX of the Social Security Act (42 U.S.C. 1396 et seq.) and unemployment compensation programs, as well as other State and local entitlement programs that may be applicable.</text> </clause></subparagraph></paragraph><paragraph id="ID32e9dce8118a42b1aae8989ece7f66bc"><enum>(2)</enum><header>Intensive placement and follow-up services</header><text>In providing activities under this section, a local board or entity shall provide—</text> <subparagraph id="IDc43b23ae7ec64a8a873fed1df40b8b14"><enum>(A)</enum><text>intensive placement services; and</text> </subparagraph><subparagraph id="ID428e9787c5594b22ab8080ba9546b24a"><enum>(B)</enum><text>follow-up services, including case management, every 2 months for not less than 24 months after the completion of participation in the other activities described in this subsection, as appropriate.</text> </subparagraph></paragraph><paragraph id="idAF36F830D4614518B49DA5431F7255F4"><enum>(3)</enum><header>Limitation on use for hard-to-serve young adults</header><text>The local board or entity shall not use more than 25 percent of the funds made available through the grant to provide activities for hard-to-serve young adults.</text> </paragraph></subsection><subsection id="IDa2763434c8ea4a459b175a0018ac6f01"><enum>(c)</enum><header>Eligible local boards</header><text>To be eligible to receive a grant under this section, a local board shall serve a community that—</text> <paragraph id="ID3cd994bbe30c4c579fc99496c97a5d8d"><enum>(1)</enum><text>has been designated as an empowerment zone or enterprise community under section 1391 of the Internal Revenue Code of 1986;</text> </paragraph><paragraph id="IDd43dbd63e4ea487aa5f06c6bb9fa73d7"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="idC546FFFB127345B9A0AAE0F4EAB6F0B1"><enum>(A)</enum><text>is a State without a zone or community described in paragraph (1); and</text> </subparagraph><subparagraph id="id5B1C3143B9D54797BC9C6E77CD4160C1" indent="up1"><enum>(B)</enum><text>has been designated as a high poverty area by the Governor of the State; or</text> </subparagraph></paragraph><paragraph id="IDdbdafda71e7a49bdb89445fbd4be1800"><enum>(3)</enum><text>is 1 of 2 areas in a State that—</text> <subparagraph id="IDf0326b9f200a4a98bf601cc380ed023a"><enum>(A)</enum><text>have been designated by the Governor as areas for which a local board may apply for a grant under this section; and</text> </subparagraph><subparagraph id="IDa21e93437de144e9b1287b42683cd810"><enum>(B)</enum><text>meet the poverty rate criteria set forth in subsections (a)(4), (b), and (d) of section 1392 of the Internal Revenue Code of 1986.</text> </subparagraph></paragraph></subsection><subsection id="ID7bb000503fa34c9e9c4f8691b06ecdeb"><enum>(d)</enum><header>Eligible entities</header><text>To be eligible to receive a grant under this section, an entity (other than a local board) shall—</text> <paragraph id="IDea1a8c94de2242cf9c4cf3ea710284b1"><enum>(1)</enum><text>be a recipient of financial assistance under section 166; and</text> </paragraph><paragraph id="ID12919614bb7e4171b814d849c8930a9d"><enum>(2)</enum><text>serve a community that—</text> <subparagraph id="ID1611335aff434e798409f697fa3b78ad"><enum>(A)</enum><text>meets the poverty rate criteria set forth in subsections (a)(4), (b), and (d) of section 1392 of the Internal Revenue Code of 1986; and</text> </subparagraph><subparagraph id="id8BA569F1D47B4926AB7F5250CED95F84"><enum>(B)</enum><text>is located on an Indian reservation or serves Oklahoma Indians, or Native villages or Native groups (as such terms are defined in section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602)).</text> </subparagraph></paragraph></subsection><subsection id="id5FA8964D3EAA427AB7F5ED88C9890DD1"><enum>(e)</enum><header>Strategic partnerships</header> <paragraph id="idCDA1CF955340479F8B59ACBE46E09972"><enum>(1)</enum><header>Local boards</header><text>An eligible local board may—</text> <subparagraph id="idD24D252951F7427895C23A7437F23ADF"><enum>(A)</enum><text>work independently to provide activities under this section; or</text> </subparagraph><subparagraph id="id662F52B9A7DF43528F07EA124B5D6CAE"><enum>(B)</enum><text>enter into a strategic partnership to provide activities under this section with 1 or more entities consisting of—</text> <clause id="id196D9F458A164601B4A6B40AAF563862"><enum>(i)</enum><text>a community-based job training provider who is an eligible provider identified in accordance with section 122(e)(3), or another provider selected by the local board;</text> </clause><clause id="ID5d68802941cb49e6b59fdc9b514f7f30"><enum>(ii)</enum><text>State or local government entities;</text> </clause><clause id="ID0ee033ec3d5342149ae347f06e463fa4"><enum>(iii)</enum><text>labor organizations;</text> </clause><clause id="IDd73aafb8749f498481f8323c9bdc9590"><enum>(iv)</enum><text>other entities described in the statement of need required by subsection (f)(1)(C);</text> </clause><clause id="ID184eb45379184f0780cb527e486f73e9"><enum>(v)</enum><text>private sector employers;</text> </clause><clause id="ID4d64bebed23e4716b5b1c364de90ed17"><enum>(vi)</enum><text>educational institutions, including secondary schools (which may be public schools, parochial schools, or other private schools) or community colleges; or</text> </clause><clause id="idEF1A09D232B1406882771F1CC04F35F7"><enum>(vii)</enum><text>entities in the judicial system, entities in the juvenile justice system, or organizations representing probation and parole officers.</text> </clause></subparagraph></paragraph><paragraph id="idFB4D6BFC0C2348F299199CD53CCDC624"><enum>(2)</enum><header>Entities</header><text>An eligible entity may—</text> <subparagraph id="id54819E94930F4CDBAB55CD5A6A223509"><enum>(A)</enum><text>work independently to provide activities under this section; or</text> </subparagraph><subparagraph id="id39986E0D187C42768666F548FD30EC89"><enum>(B)</enum><text>enter into a strategic partnership to provide activities under this section with—</text> <clause id="id6FEEFAB586DC4E7BA0DCFECEB5090602"><enum>(i)</enum><text>the local board; and</text> </clause><clause id="id073641EBA2B4432F9A95FF07795EFE91"><enum>(ii)</enum><text>1 or more entities described in paragraph (1)(B).</text> </clause></subparagraph></paragraph></subsection><subsection id="ID0de3b4d99b8d420991fabc3058dec6e4"><enum>(f)</enum><header>Application</header><text>To be eligible to receive a grant under this section, a local board or entity shall submit an application (individually or as part of a strategic partnership described in subsection (e)) to the Secretary at such time, in such manner, and containing such information as the Secretary may require, including—</text> <paragraph id="IDd7a8aacc1ea946e692cc6cc4e74426d6"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id9FD6C855AE414CDC86D7583F2DD80A1C"><enum>(A)</enum><text>a description of the activities that the local board or entity will provide under this section to youth and young adults in the community described in subsection (c) or (d);</text> </subparagraph><subparagraph id="ID92a7d1a41478451182cc9027aedf9873" indent="up1"><enum>(B)</enum><text>a description of the strategic partnership referred to in subsection (e), if any, that the applicant intends to enter into to provide activities under this section;</text> </subparagraph><subparagraph id="IDef3d6c7eea4e41288de9fb063eee7453" indent="up1"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="id5A3C82543A454BEFA9C955364A7BF3F7"><enum>(i)</enum><text>information describing how the applicant will coordinate the planning and implementation of the activities to be carried out under the grant with entities serving youth in the community involved, including the one-stop operator and one-stop partners in the local workforce investment system, educational institutions including institutions of higher education, child welfare agencies, entities in the juvenile justice system, foster care agencies, and such other community-based organizations as may be appropriate; and</text> </clause><clause id="idAEDD546C6E4A4586854956E69EC00070" indent="up1"><enum>(ii)</enum><text>a statement of need for the community;</text> </clause></subparagraph><subparagraph id="ID03473dd3ecd44feab6a7a7e56e1e80a9" indent="up1"><enum>(D)</enum><text>information identifying employment sectors in the local and regional economy that could employ youth and young adults served under the grant and a plan to provide sector-specific skills training for jobs in those sectors and employment opportunities in those sectors; and</text> </subparagraph><subparagraph id="ID08077e415e7440279162d938d4f8215c" indent="up1"><enum>(E)</enum><text>information identifying the specific role, if any, that private sector employers in growing employment sectors in the local and regional economy will play in that plan, including information describing their skills training curricula and job placement programs;</text> </subparagraph></paragraph><paragraph id="IDfafd60cfd74a46258441a1e28ec54b2d"><enum>(2)</enum><text>a description of the performance measures negotiated under subsection (h), and the manner in which the local boards or entities will carry out the activities to meet the performance measures;</text> </paragraph><paragraph id="ID894dcc5a87634f3d923b8ddfbe634023"><enum>(3)</enum><text>a description of the manner in which the activities will be linked to activities described in section 129; and</text> </paragraph><paragraph id="ID1c884c172c5040c482d090e50cd5590b"><enum>(4)</enum><text>a description of the community support, including financial support through leveraging additional public and private resources, for the activities.</text> </paragraph></subsection><subsection id="ID2b15aa5810b44b779b4ffafd9b6d7e1e"><enum>(g)</enum><header>Consideration</header><text>In making grants under this section, the Secretary shall give special consideration to a local board or entity that submits an application under subsection (f) as part of a strategic partnership described in subsection (e) that includes a private sector employer if the employer agrees to—</text> <paragraph id="ID1082d82c69c74f35897014ddb2ff466a"><enum>(1)</enum><text>commit to hire youth and young adults who complete the program carried out under the grant involved;</text> </paragraph><paragraph id="ID654be2fe46f04db09b9692aee48e1563"><enum>(2)</enum><text>provide personnel, facilities, equipment, and a skills training curriculum for the program;</text> </paragraph><paragraph id="ID2f4285f6bf854b4a811cad35943ce634"><enum>(3)</enum><text>provide internships, mentoring, and apprenticeship opportunities for participants in the program; or</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID3c11a127c0424ba8b0ebea000b7f9b36"><enum>(4)</enum><text>provide funding, scholarships, and access to specified employer-based resources for the program.</text> </paragraph></subsection><subsection id="ID8eeb31e9b8c941d693f31cea73796117"><enum>(h)</enum><header>Performance measures</header> <paragraph id="IDd020dae7520a4394939a59a71eb0e9db"><enum>(1)</enum><header>In general</header><text>The Secretary shall negotiate and reach agreement with the local board or entity on performance measures, for the indicators of performance referred to in subparagraphs (A) and (B) of section 136(b)(2), that will be used under paragraph (3) to evaluate the performance of the local board or entity in carrying out the activities described in subsection (b). Each local performance measure shall consist of such an indicator of performance, and a performance level referred to in paragraph (2).</text> </paragraph><paragraph id="id2C914F6C17284984A7FD6BA7D5F09BD8"><enum>(2)</enum><header>Performance levels</header><text>The Secretary shall negotiate and reach agreement with the local board or entity regarding the—</text> <subparagraph id="id8886EBF6132948DAA0FD002FE014F30F"><enum>(A)</enum><text>overall performance levels expected to be achieved by the local board or entity on the indicators of performance; and</text> </subparagraph><subparagraph id="id3E94100A6657466C8DBA7CAE7E7E3F34"><enum>(B)</enum><text>separate performance levels for those indicators for the performance of the board or entity—</text> <clause id="idF4B49CD7752A4A5EB9354CED00795E7C"><enum>(i)</enum><text>regarding participants in the activities who are not less than age 14 and not more than age 24; and</text> </clause><clause id="id1960C8DF69A84B2FBCD1075701CE34C6"><enum>(ii)</enum><text>regarding participants in the activities who are not less than age 25 and not more than age 30.</text> </clause></subparagraph></paragraph><paragraph id="IDe915bcd32ea349fab72efed9b131cb53"><enum>(3)</enum><header>Evaluations and reports</header> <subparagraph id="idF79DC5666DC94714BB9BBED94C3D4ECC"><enum>(A)</enum><header>Evaluations</header> <clause id="idDD382C255BC14FBAB36FF62D58508555"><enum>(i)</enum><header>Evaluations of prior activities</header><text>Not later than 2 years after the date of enactment of the <short-title>Supporting Training and Employment Potential for Underemployed Populations Act</short-title>, the Secretary shall complete the evaluations described in paragraph (1) of local boards and entities, using performance measures with overall performance levels described in paragraph (2)(A), concerning activities carried out under subsection (b) prior to that date of enactment.</text> </clause><clause id="idA7BFF5F897E74AB2A3B888D902461C34"><enum>(ii)</enum><header>Evaluations of new activities</header><text>Not later than 2 years after a local board or entity receives a grant under this section after that date of enactment, the Secretary shall conduct the evaluations described in paragraph (1) of that local board or entity, using performance measures with overall performance levels described in paragraph (2)(A) and performance measures with separate performance levels described in paragraph (2)(B).</text> </clause><clause id="id5B940719888341FA9498F96FDAC8B743"><enum>(iii)</enum><header>Comparison groups</header><text>The evaluations conducted under this paragraph shall include evaluations of carefully matched comparison groups.</text> </clause></subparagraph><subparagraph id="id176ACE395799406C81182B59B1ACD709"><enum>(B)</enum><header>Reports</header><text>The Secretary shall prepare a report, based on the evaluations described in subparagraph (A)(i), that contains the baseline data obtained and that begins to detail the best practices of recipients of grants under this section throughout the Nation. The Secretary shall prepare an annual report, based on the evaluations described in subparagraph (A)(ii), that contains the data obtained and that details the best practices of recipients of grants under this section throughout the Nation, with attention to how different activities impact both different demographic sectors of the population and different age groups in the population.</text> </subparagraph></paragraph><paragraph id="id024848C178D94E27890B915D11694180"><enum>(4)</enum><header>Use</header><text>If the Secretary, in conducting evaluations under paragraph (3), determines that a local board or entity fails to meet the performance measures for 2 fiscal years, the local board or entity shall not be eligible to receive a grant under this section for a subsequent fiscal year.</text> </paragraph></subsection><subsection id="IDec06ce19d0ef49359ef6295deb837cc2"><enum>(i)</enum><header>Incentives for business partners</header><text>The Secretary shall establish a plan to increase the availability of bonds through the Federal Bonding Program carried out through the Employment and Training Administration to employers that are partners in the programs carried out under this section.</text> </subsection><subsection id="id5ED8F45BAE684F9DB54C9F40DC8A7D64"><enum>(j)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $250,000,000 for fiscal year 2008 and each subsequent fiscal year.</text> </subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </section><section id="id750B31C6F22B4208A940CE1495F8DC3E"><enum>103.</enum><header>Conforming amendments</header><text display-inline="no-display-inline">Section 127 of the Workforce Investment Act of 1998 (29 U.S.C. 2852) is amended—</text> <paragraph id="id5024F39856044C6C83223BA016C9AB4A"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(1)—</text> <subparagraph id="id407A7396966149199462B13CEB81ACF2"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>sections</quote> and inserting <quote>section</quote>; and</text> </subparagraph><subparagraph id="idB5725A573D5845E0B0D50E45705D913F"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>and 169</quote> and all that follows and inserting <quote>; and</quote>; and</text> </subparagraph></paragraph><paragraph id="id9A3EC3541ED84D118ABD3C4A61ED38BF"><enum>(2)</enum><text>in subsection (b)(1)(A)—</text> <subparagraph id="id08967044D72F4A8EA442E1B5E9B9A99F"><enum>(A)</enum><text>in clause (i), by striking <quote>provide youth opportunity</quote> and all that follows through <quote>grants) and</quote>; and</text> </subparagraph><subparagraph id="id840A55D942124B20A9F83519168CFA9E"><enum>(B)</enum><text>by striking clause (iv).</text> </subparagraph></paragraph></section><enum>II</enum><header>Earned income tax credit enhancement</header> <section id="S1"><enum>201.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Earned Income Tax Credit Enhancement Act of 2007</short-title></quote>.</text> </section><section id="id531B9734A9C84A40A7F3510405A08B14"><enum>202.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds the following:</text> <paragraph id="ID57ebf8a9dba741f7b7febb2f45d8c101"><enum>(1)</enum><text>The earned income tax credit is considered one of the most successful antipoverty programs in the United States. Previous expansions of the earned income tax credit in the 1990s were instrumental in lifting families, especially single parents, out of poverty by increasing income and building assets.</text> </paragraph><paragraph id="IDc7addec43e7c44df9aba40f127146741"><enum>(2)</enum><text>However, the earned income tax credit provides little assistance for childless workers and noncustodial parents. The credit for childless workers is only 15 percent of the credit for a worker with 1 child.</text> </paragraph><paragraph id="IDe42a113e9fb34f0a9647931edc22bf2e"><enum>(3)</enum><text>Increasing the maximum earned income tax credit amount for childless workers would help to lift more individuals out of poverty and mirror the successful credit expansion of the 1990s. Additionally, lowering the age of eligibility will extend this important credit to the growing population of young adults living in poverty.</text> </paragraph><paragraph id="IDc8664c27ebda4e39b65e343d46f6e27b"><enum>(4)</enum><text>Although the effectiveness of the work opportunity tax credit has come under scrutiny, the credit is limited in scope. The credit is only available to employers and offers no benefits to employees to encourage job retention. Additionally, the credit only addresses short-term job retention, not long-term employment.</text> </paragraph><paragraph id="ID8f24c1d388f84976a95079c89f53bfae"><enum>(5)</enum><text>Expanding the work opportunity credit to employees and increasing the time period of the credit's availability could provide greater incentives for employees to stay in their jobs and for employers to retain these workers over long-term periods.</text> </paragraph></section><section id="id98EB42C1E42C489AA4CD0A5C67D85EAD"><enum>203.</enum><header>Enhancements to earned income tax credit</header> <subsection id="idC99529BF15C44114951274C452C089B2"><enum>(a)</enum><header>Credit allowed for certain childless individuals over age 18</header> <paragraph id="id3582F3B2A6694DFFA281FE14806F0DEA"><enum>(1)</enum><header>In general</header><text>Subclause (II) of section 32(c)(1)(A)(ii) of the Internal Revenue Code of 1986 (relating to eligible individual) is amended by striking <quote>age 25</quote> and inserting <quote>age 21</quote>.</text> </paragraph><paragraph id="id2261619B234246748892018A4ADA23FC"><enum>(2)</enum><header>Exception for full-time students</header><text>Paragraph (1) of section 32(c) of such Code is amended by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="id248CE3EB2D814C848C58E33000489A3A" style="OLC"> <subparagraph id="id6FB4F9BE09144827B821FB3752CA7030"><enum>(G)</enum><header>Exception for full time students</header><text>The term <term>eligible individual</term> shall not include any individual described in subparagraph (A)(ii) if such individual has not attained the age of 25 before the close of the taxable year and is a full time student for more than one half of such taxable year.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="idE93F8616FEF94736939026C56F537A90"><enum>(b)</enum><header>Modification of credit amount for individuals without qualifying children</header> <paragraph id="id74DF04BF00DB48DFA7CA3F0C3B4A4E5A"><enum>(1)</enum><header>Modification of credit percentage</header><text>The last row in the table in section 32(b)(1)(A) of the Internal Revenue Code of 1986 is amended by striking <quote>7.65</quote> in the middle column and inserting <quote>15.30</quote>.</text> </paragraph><paragraph id="id7B94FE70E3E04FFA88AA5E8270EC826F"><enum>(2)</enum><header>Modification of phaseout amount</header><text>Subparagraph (A) of section 32(b)(2) of such Code is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="id7DB91597847046338B11FF5B9759AC98" style="OLC"> <subparagraph id="idB7BAF8D9672141B7AE61F2AF89A6D513"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B)—</text> <clause id="id27DD76B8295D48D28B93F3668C9085BB"><enum>(i)</enum><text>in the case of an eligible individual with 1 qualifying child—</text> <subclause id="idB20714C3DE78452086076275F8D1353D"><enum>(I)</enum><text>the earned income amount is $6,330, and</text> </subclause><subclause id="idB78282B93BEB413D9AD923E407D2AA06"><enum>(II)</enum><text>the phaseout amount is $11,610,</text> </subclause></clause><clause id="id41E800D632FC442E916609CF3C7D6BB3"><enum>(ii)</enum><text>in the case of an eligible individual with 2 or more qualifying children—</text> <subclause id="id9266C931EC9545DC84E981B02EC7BE85"><enum>(I)</enum><text>the earned income amount is $8,890, and</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="idD40A7800C9A74DC893ED4E54C277C97D"><enum>(II)</enum><text>the phaseout amount is $11,610, and</text> </subclause></clause><clause commented="no" display-inline="no-display-inline" id="id3B6641C67C6848669E3BFC8042F87F13"><enum>(iii)</enum><text>in the case of an eligible individual with no qualifying children—</text> <subclause id="id774FAD729CB54BBD9E279DF2D4335556"><enum>(I)</enum><text>the earned income amount is $4,220, and</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="id4F551C0E268B4440BE8832B6E9863E5C"><enum>(II)</enum><text>the phaseout amount is 200 percent of the dollar amount applicable under subclause (I).</text> </subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="idA3A1C69E57DD4A19A4A4E1E6ED2ADBB7"><enum>(c)</enum><header>Increased credit for certain individuals without qualifying children</header> <paragraph id="idA320D9F5EF034AD887F3A9AE045489D8"><enum>(1)</enum><header>In general</header><text>Paragraph (1) of section 32(b) of the Internal Revenue Code of 1986 is amended by striking subparagraphs (B) and (C) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="id4C1C8EA944B048E3B97216171F22A708" style="OLC"> <subparagraph id="id59818CE60D064DFEBA1147CF11297A06"><enum>(B)</enum><header>Increased credit for certain individuals without qualifying children</header><text>In the case of an eligible individual described in subparagraph (C), the credit percentage under subparagraph (A) shall be 30.6 percent.</text> </subparagraph><subparagraph id="id6221F820DA0447FEADD15AE023694BD5"><enum>(C)</enum><header>Eligible individual described</header><text>An eligible individual is described in this subparagraph with respect to a taxable year if—</text> <clause id="idDFA999E9087743EFA0B6BCF5C2739827"><enum>(i)</enum><text>with respect to such eligible individual for the taxable year, another individual—</text> <subclause id="idB405CE8D0AFD4858A076473022D86147"><enum>(I)</enum><text>bears a relationship to the eligible individual described in section 152(c)(2),</text> </subclause><subclause id="id4DBFE666C1294821BA7436BDB4277610"><enum>(II)</enum><text>meets the requirements of section 152(c)(3), and</text> </subclause><subclause id="idC698F246B1974B9DA22EC1893FBB7CE6"><enum>(III)</enum><text>has the same principal place of abode as the eligible individual for less than one-half of such taxable year,</text> </subclause></clause><clause id="id011730ABB64D422CAA60864F2D5447CC"><enum>(ii)</enum><text>such eligible individual is required to make child support payments with respect to the individual described in clause (i), and</text> </clause><clause commented="no" display-inline="no-display-inline" id="id1D1BFF0581DA44DEA29E3A0F268B6D50"><enum>(iii)</enum><text>such eligible individual has made all such required child support payments during the taxable year.</text> </clause><continuation-text continuation-text-level="subparagraph">For purposes of clause (iii), an eligible individual shall be treated as having made all required child support payments during a taxable year if such eligible individual has made child support payments in an amount not less than the total amount of child support payments required for such eligible individual for such taxable year.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="id86262ED8721B4B0095350326A5930C2F"><enum>(2)</enum><header>Notification of failure to pay child support</header><text>Section 464(b) of the Social Security Act (42 U.S.C. 664(b)) is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="id361082EFD7D2404B937EB5781179D6EA" style="OLC"> <paragraph id="idD2959DB828F2464F94832D778CDAB2FA"><enum>(3)</enum><text>The Secretary shall use notices of past-due support under this section in administering the earned income tax credit under section 32 of the Internal Revenue Code of 1986 for eligible individuals described in subsection (b)(1)(C) of such section. The regulations promulgated pursuant to this subsection shall require States to submit such notices at a time adequate to allow the Secretary to properly administer such credit for such individuals.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="id05C3C066DB964DEEA84BEB332555DD26"><enum>(d)</enum><header>Repeal of EGTRRA sunset</header><text>Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 (relating to sunset provisions) shall not apply to the amendments made by section 303 of such Act (relating to marriage penalty relief for earned income credit; earned income to include only amounts includible in gross income; simplification of earned income credit).</text> </subsection><subsection id="id560AD9E7333A4D329BD9C448627C9E78"><enum>(e)</enum><header>Election to average earned income</header><text>Paragraph (2) of section 32(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="id7AA180E149AF470F9D68C9844FC6D653" style="OLC"> <subsection id="id51D18444502446D0B3C1AF8052DEDB02"><enum>(n)</enum><header>Election to average earned income</header> <paragraph id="id168B962E1DE94751827D4B0BFAB33F0F"><enum>(1)</enum><header>In general</header><text>Under rules established by the Secretary, in the case of an eligible individual who has made an election under this subsection, subsection (a) shall be applied—</text> <subparagraph id="id8F40D3A8C2454137B6A84893B0EBA860"><enum>(A)</enum><text>by substituting <quote>the taxpayer's 2-year averaged earned income</quote> for <quote>the taxpayer's earned income for the taxable year</quote> in paragraph (1) thereof, and</text> </subparagraph><subparagraph id="idB2369D8999E04DDABE4440AEC980C91E"><enum>(B)</enum><text>by substituting <quote>2-year averaged earned income</quote> for <quote>earned income</quote> in paragraph (2)(B) thereof.</text> </subparagraph></paragraph><paragraph id="id2D19681250054790B8BF624A8BB26B61"><enum>(2)</enum><header>2-year averaged earned income</header><text>For purposes of this subsection, the term <term>2-year averaged earned income</term> means, with respect to any taxable year, the average of—</text> <subparagraph id="id411294CE29E94E15B4D8EA65CF9082F3"><enum>(A)</enum><text>the taxpayer's earned income for such taxable year, and</text> </subparagraph><subparagraph id="id94D9F36A046A49C2AE8B51E4E3C0AC20"><enum>(B)</enum><text>the taxpayer's earned income for the preceding taxable year.</text> </subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="idC3D47CA7E77D4A838BE958EFC6F13015"><enum>(f)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2007.</text> </subsection></section><section id="id8ED44642474F42B3B8D1D58D507EFD6C"><enum>204.</enum><header>Carryback and carryforward of standard deduction and personal exemption deductions</header> <subsection id="id4325EA9CC170492192B726FD08B751E1"><enum>(a)</enum><header>Standard deduction</header><text>Section 63 of the Internal Revenue Code of 1986 (relating to taxable income defined) is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="id045AC61D066F4D35A46972D5A8EF402E" style="OLC"> <subsection id="idB70EBA9A67704FEBB45F93C7D9BCB8A1"><enum>(g)</enum><header>Carryback and carryforward of deductions for individuals who do not itemize</header> <paragraph id="id537F962F806845DF9DA0A61F17AE810B"><enum>(1)</enum><header>In general</header><text>In the case of an eligible taxpayer, if the sum of the deductions described in subsection (b) exceeds the amount of the adjusted gross income of such taxpayer for such taxable year (hereinafter in this subsection referred to as the <quote>unused deduction year</quote>), such excess may be—</text> <subparagraph id="idDDDDC06C5E034EDAACC92868A066261B"><enum>(A)</enum><text>carried back to the preceding taxable year, and</text> </subparagraph><subparagraph id="id8554067C02B44FB3A2ACAA356B650A42"><enum>(B)</enum><text>carried forward to each of the 2 taxable years following the unused deduction year</text> </subparagraph></paragraph><paragraph id="id183B78A0B5F8472DBB3E3CB6EC9F429A"><enum>(2)</enum><header>Amount carried to each year</header> <subparagraph id="ID6aaa9b5bf75e44638523151cf0dcc401"><enum>(A)</enum><header>Entire amount carried to first year</header><text>The entire amount of the unused deduction for an unused deduction year shall be carried to the earliest of the 3 taxable years to which (by reason of paragraph (1)) such deduction may be carried.</text> </subparagraph><subparagraph id="ID9ed513112adb4f9a99ac2203ec6ca440"><enum>(B)</enum><header>Amount carried to other 2 years</header><text>The amount of the unused deduction for the unused deduction year shall be carried to each of the other 2 taxable years to the extent that such unused deduction may not be used for a prior taxable year because of the amount of adjusted gross income of the taxpayer for such taxable year.</text> </subparagraph></paragraph><paragraph id="idADF6FD60D5774C90A637885C2BE6B01B"><enum>(3)</enum><header>Eligible taxpayer</header><text>For purposes of this subsection, the term <term>eligible taxpayer</term> means, with respect to any taxable year, a taxpayer with respect to whom a credit under section 32 is allowable for such taxable year.</text> </paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id1F48F05DB5A9428BAB97E8124311AFC2"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text> </subsection></section><section id="idB1939DE097DB40018949FD73154E7961"><enum>205.</enum><header>Advanced refundable credit for members of targeted groups</header> <subsection id="idA674C573DFD04A2EB0857CE62597BB0F"><enum>(a)</enum><header>Allowance of credit</header> <paragraph id="id35C26175FB234637A8E62B5B3D2FA850"><enum>(1)</enum><header>In general</header><text>Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by redesignating section 36 as section 37 and by inserting after section 35 the following new section:</text> <quoted-block display-inline="no-display-inline" id="idB7504F2A8BC6483B8AE5CCD2E75018B2" style="OLC"> <section id="idCCEB7626B251456F9D68CA0AD5CDAE7A"><enum>36.</enum><header>Employment credit for members of targeted groups</header> <subsection id="id469B9BC8ABD341759C9EC62437AFE934"><enum>(a)</enum><header>Allowance of credit</header><text>In the case of an eligible individual, there shall be allowed as credit against the tax imposed by this title for the taxable year an amount equal to $500.</text> </subsection><subsection id="id87453AACADD940519ECC1BEE7B8A6904"><enum>(b)</enum><header>Eligible individual</header><text>For purposes of this section—</text> <paragraph id="id4C01DEC941924D6ABFD4F8582BE5AE5F"><enum>(1)</enum><header>In general</header><text>The term <term>eligible individual</term> means an individual who is a member of a targeted group and—</text> <subparagraph id="id91335894B5EF4D58A338B03CEAD5DCDD"><enum>(A)</enum><text>who—</text> <clause id="idBF5EB772CF334451B49F77FDDC987908"><enum>(i)</enum><text>has worked exactly 1,500 hours for an employer during any period beginning on the date such individual was hired and ending with or within the taxable year, and</text> </clause><clause id="idCAD7030BF691423182079C72D49B3616"><enum>(ii)</enum><text>was continuously employed by such employer during such period, or</text> </clause></subparagraph><subparagraph id="id60AF6A07C76C41BF8995F4214C11D0FD"><enum>(B)</enum><text>who—</text> <clause id="id6E9132B97759487D8B4CC6A72EEECD20"><enum>(i)</enum><text>began work with an employer during any 52-week period ending with or within such taxable year, and</text> </clause><clause id="id965AC7848FBC4032B8B8CED5F30AD7B0"><enum>(ii)</enum><text>was continuously employed by such employer during such 52-week period.</text> </clause></subparagraph></paragraph><paragraph id="id393AF14110E64B97A70F8530866A203F"><enum>(2)</enum><header>Member of a targeted group</header><text>The term <term>member of a targeted group</term> has the meaning given such term under section 51(d).</text> </paragraph></subsection><subsection id="idA33E6501617C4584896EB819573E0F5A"><enum>(c)</enum><header>Special rules</header><text>For purposes of subsection (a)—</text> <paragraph id="id01F6E731433D4A53B78F9AFFA034AB23"><enum>(1)</enum><text>only 1 employer may be taken into account with respect to any eligible individual for any taxable year, and</text> </paragraph><paragraph id="idA9D5EA41CBE64A9F927D0F6CB9345295"><enum>(2)</enum><text>an individual may not be treated as an eligible individual more than once with respect to any employer.</text> </paragraph><continuation-text continuation-text-level="subsection">For purposes of this subsection, rules similar to the rules of subsections (a) and (b) of section 52 shall apply.</continuation-text></subsection><subsection id="idB743FAC7AE6E4D92BE6F6B79480AD048"><enum>(d)</enum><header>Coordination with advance payments</header> <paragraph id="idB93636B8EDD944879269A5669459FB0F"><enum>(1)</enum><header>Recapture of excess advance payments</header><text>If any payment is made to the individual by an employer under section 3511 during any calendar year, then the tax imposed by this chapter for the individual's last taxable year beginning in such calendar year shall be increased by the aggregate amount of such payments.</text> </paragraph><paragraph id="idC429272B7F94473DA66467300686ADDD"><enum>(2)</enum><header>Reconciliation of payments advanced and credit allowed</header><text>Any increase in tax under paragraph (1) shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit (other than the credit allowed by subsection (a)) allowed under this part.</text> </paragraph></subsection><subsection id="idD35C57BCCB7543D7B4CD68C907AA1973"><enum>(e)</enum><header>Coordination with certain means tested programs</header><text>For purposes of—</text> <paragraph id="IDea27a46b8724440283cb267711d57337"><enum>(1)</enum><text>the United States Housing Act of 1937,</text> </paragraph><paragraph id="ID8a9e35e181d7432381c79dd7d26f9542"><enum>(2)</enum><text>title V of the Housing Act of 1949,</text> </paragraph><paragraph id="ID147d1968677748ef90f8fb8f01848597"><enum>(3)</enum><text>section 101 of the Housing and Urban Development Act of 1965,</text> </paragraph><paragraph id="ID6870847172c34a02975ba1d3194b01dd"><enum>(4)</enum><text>sections 221(d)(3), 235, and 236 of the National Housing Act, and</text> </paragraph><paragraph id="ID02563a56a549434b934e2739ffef49d9"><enum>(5)</enum><text>the Food Stamp Act of 1977,</text> </paragraph><continuation-text continuation-text-level="subsection">any refund made to an individual (or the spouse of an individual) by reason of this section, and any payment made to such individual (or such spouse) by an employer under section 3511, shall not be treated as income (and shall not be taken into account in determining resources for the month of its receipt and the following month).</continuation-text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="id8978D9B3FAD144129A3DDA2ACA0B19BC"><enum>(2)</enum><header>Conforming amendments</header> <subparagraph id="ID773FD6BABDF64E398F8C5695A34F6728"><enum>(A)</enum><text>Section 1324(b)(2) of title 31, United States Code, is amended by inserting before the period at the end <quote>, or enacted by section 204 of the <short-title>Earned Income Tax Credit Enhancement Act of 2007</short-title></quote>.</text> </subparagraph><subparagraph id="id5670107859F8465D870E3CFC88802E1A"><enum>(B)</enum><text>The table of sections for subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by redesignating the item relating to section 36 as relating to section 37 and by inserting after the item relating to section 35 the following new item:</text> <quoted-block id="idfe322cbf-afa1-45ca-875f-8aea7998dde0" style="OLC"> <toc> <toc-entry idref="idCCEB7626B251456F9D68CA0AD5CDAE7A" level="section">Sec. 36. Employment credit for members of targeted groups.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph></subsection><subsection id="idB66DB67C7BBF4C529EF0A14F767ADE61"><enum>(b)</enum><header>Advanced payments</header> <paragraph id="idCD0CEE53352F4FCFA4D9E8B93DCEB06F"><enum>(1)</enum><header>In general</header><text>Chapter 25 of the Internal Revenue Code of 1986 (relating to general provisions relating to employment taxes) is amended by adding at the end the following new section:</text> <quoted-block display-inline="no-display-inline" id="id3C9655D60B2C46B6816C023BE4DA5CAA" style="OLC"> <section id="id2A95A7C9A8E7459B80DE0246B6A8FF7E"><enum>3511.</enum><header>Advanced payment of employment credit for members of targeted groups</header> <subsection id="id50B5B49FCF294075876C76717E932F73"><enum>(a)</enum><header>In general</header><text>Except as otherwise provided in this section, every employer making a payment of wages for a payroll period to an individual who is an eligible employee with respect to such payroll period shall, at the time of paying such wages, make an additional payment to such employee of $500.</text> </subsection><subsection id="id7573954878C0453287E004E54D67AB12"><enum>(b)</enum><header>Eligible employee</header><text>For purposes of this section, the term <term>eligible employee</term> means, with respect to any payroll period, an individual—</text> <paragraph id="id724070AE43654BBD9E923769AC342519"><enum>(1)</enum><text>who is an eligible individual (as defined by section 36(b)), and</text> </paragraph><paragraph id="idE5DECD3CA6364C72A186F9252432892F"><enum>(2)</enum><text>with respect to whom an eligibility certificate under this section is in effect.</text> </paragraph></subsection><subsection id="id25CB707BC81F4BFB9D0F9B5039AF8860"><enum>(c)</enum><header>Eligibility certificate</header><text>For purposes of this title, an eligibility certificate under this section is a statement furnished by an employee to the employer which—</text> <paragraph id="id449F5C59932C455394F599D50A8F0072"><enum>(1)</enum><text>certifies that the employee is a member of a targeted group (as defined in section 51(d)),</text> </paragraph><paragraph id="id31B820BA87D64A31B4163EB16F15B47E"><enum>(2)</enum><text>certifies that the employee does not have an eligibility certificate under this section in effect for the calendar year with respect to the payment of wages by another employer, and</text> </paragraph><paragraph id="idB787F4815DD24B35832AB226C16B7BC2"><enum>(3)</enum><text>contains such other information as the Secretary may require.</text> </paragraph></subsection><subsection id="IDcc9c5366da75448e978afc14eabaf4ff"><enum>(d)</enum><header>Payments to be treated as payments of withholding and FICA taxes</header> <paragraph id="IDcc75695824424d44b2b288c5c1dc24f4"><enum>(1)</enum><header>In general</header><text>For purposes of this title, payments made by an employer under subsection (a) to his employees for any payroll period—</text> <subparagraph id="IDfb43c9b3219c4053b062bde92bedfc8e"><enum>(A)</enum><text>shall not be treated as the payment of compensation, and</text> </subparagraph><subparagraph id="IDe5f77030a1eb4873aa6fa58cb7afc6d2"><enum>(B)</enum><text>shall be treated as made out of—</text> <clause id="IDa2b3d70d32c1463db00c2d190dd4b7de"><enum>(i)</enum><text>amounts required to be deducted and withheld for the payroll period under section 3401 (relating to wage withholding), and</text> </clause><clause id="ID860f65d04f554d72810d9a1d87edcb43"><enum>(ii)</enum><text>amounts required to be deducted for the payroll period under section 3102 (relating to FICA employee taxes), and</text> </clause><clause id="IDac7413fb46fd464fa55e95123b603db7"><enum>(iii)</enum><text>amounts of the taxes imposed for the payroll period under section 3111 (relating to FICA employer taxes),</text> </clause><continuation-text continuation-text-level="subparagraph">as if the employer had paid to the Secretary, on the day on which the wages are paid to the employees, an amount equal to such payments.</continuation-text></subparagraph></paragraph><paragraph id="IDbb325a0033b64b3ca4aa3d3f199c6e86"><enum>(2)</enum><header>Advance payments exceed taxes due</header><text>In the case of any employer, if for any payroll period the sum of the aggregate amount of payments under subsection (a) plus any amount paid under section 3507 exceeds the sum of the amounts referred to in paragraph (1)(B), each such advance payment shall be reduced by an amount which bears the same ratio to such excess as such advance payment bears to the aggregate amount of all such advance payments.</text> </paragraph><paragraph id="ID0ae611024a994225b669c7ff5041e75d"><enum>(3)</enum><header>Employer may make full advance payments</header><text>The Secretary shall prescribe regulations under which an employer may elect (in lieu of any application of paragraph (2))—</text> <subparagraph id="ID0dc467eb4ec145af8d1df40e43a6ee3a"><enum>(A)</enum><text>to pay in full all amounts under subsection (a), and</text> </subparagraph><subparagraph id="IDb81525987db3479181fcc6feb5aea1c0"><enum>(B)</enum><text>to have additional amounts paid by reason of this paragraph treated as the advance payment of taxes imposed by this title.</text> </subparagraph></paragraph><paragraph id="ID518579394d924091be1df7446e9e7198"><enum>(4)</enum><header>Failure to make advance payments</header><text>For purposes of this title (including penalties), failure to make any advance payment under this section at the time provided therefor shall be treated as the failure at such time to deduct and withhold under chapter 24 an amount equal to the amount of such advance payment.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="idDB3223EADCFA466B800C2420289370B2"><enum>(2)</enum><header>Clerical amendment</header><text>The table of sections for chapter 25 of such Code is amended by adding at the end the following new item:</text> <quoted-block id="id54990df2-a30c-4388-8230-2d9e9db30108" style="OLC"> <toc> <toc-entry idref="id2A95A7C9A8E7459B80DE0246B6A8FF7E" level="section">Sec. 3511. Advanced payment of employment credit for members of targeted groups.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="id3822127EFF1A4999A4A067DC7A0C09E5"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text> </subsection></section><section id="idE4E56F5CF5964945BCACD9D54A0A36CE"><enum>206.</enum><header>Modifications to work opportunity credit</header> <subsection id="idB1522DCEF0574762911CF06ED86035C5"><enum>(a)</enum><header>Expansion to youth opportunity program participants, WIA youth activity participants, and young offenders</header> <paragraph id="idC5DFE7E2E78F4F2EBC65F83704A47904"><enum>(1)</enum><header>In general</header><text>Paragraph (1) of section 51(d) of the Internal Revenue Code of 1986 (relating to members of targeted groups) is amended by striking <quote>or</quote> at the end of subparagraph (H), and by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="id1CEDCF126F7B4ADDA625647153529891" style="OLC"> <subparagraph id="idB8E3FD6B1A2B4B83A03BC4556DAE0AF7"><enum>(J)</enum><text>a youth opportunity program participant,</text> </subparagraph><subparagraph id="id23267B7B44CC43D999ABC2ABF8ABA60E"><enum>(K)</enum><text>a qualified WIA youth activity participant, or</text> </subparagraph><subparagraph id="idCF4F8B1512B64C5E892C97A10FE9A859"><enum>(L)</enum><text>a qualified young offender.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="id66F4008973F04A71B5C2458387546175"><enum>(2)</enum><header>Definitions</header><text>Subsection (d) of section 51 of the Internal Revenue Code of 1986 is amended by redesignating paragraphs (11), (12), and (13) as paragraphs (14), (15), and (16), respectively, and by inserting after paragraph (10) the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="idCCF672B96D4D4CA2B35A10130B27B325" style="OLC"> <paragraph id="id1B2B0F9996C04695BF67B4A3EEAA25D0"><enum>(11)</enum><header>Youth opportunity program participant</header><text>The term <term>youth opportunity program participant</term> means an individual who is certified by an eligible local board or eligible entity (as such board and entity are described in section 169 of the Workforce Investment Act of 1998)—</text> <subparagraph id="id319CADF84954473C9BA237A551E61CD4"><enum>(A)</enum><text>as having completed a program carried out under that section, and</text> </subparagraph><subparagraph id="id128141EBC4484E8C9403DE201819A338"><enum>(B)</enum><text>as having a hiring date which is not more than 1 year after the last date on which such individual completed such a program.</text> </subparagraph></paragraph><paragraph id="id16CFF60597D8491A846422849946DE09"><enum>(12)</enum><header>Qualified WIA youth activity participant</header><text>The term <term>qualified WIA youth activity participant</term> means any individual who is certified by a designated local agency—</text> <subparagraph id="id73345620601C439A9C198A242CB8B4A8"><enum>(A)</enum><text>as an eligible youth (as defined in section 101 of the Workforce Investment Act of 1998) who—</text> <clause id="idB470F66C4DAD4D3D99C574744DB4B04D"><enum>(i)</enum><text>is not less than age 18 and not more than age 21, and</text> </clause><clause id="id5925163F80E54E468F10F51D7E3CB3BE"><enum>(ii)</enum><text>has been enrolled in or has received a youth activity (as so defined) under chapter 4 of subtitle B of title I of such Act, and</text> </clause></subparagraph><subparagraph id="idE3CCBAF29A8E465D8443CEDE30B89B7B"><enum>(B)</enum><text>as having a hiring date which is not more than 1 year after the last date on which such individual was so enrolled or so received such activity.</text> </subparagraph></paragraph><paragraph id="idBF2362579E2B43E5884D40089EC5B90D"><enum>(13)</enum><header>Qualified young offender</header><text>The term <term>qualified young offender</term> means any individual who is certified by a designated local agency—</text> <subparagraph id="id631A2E95D2404AAAA1DB51DA296A36F8"><enum>(A)</enum><text>as being not less than age 18 and not more than age 21,</text> </subparagraph><subparagraph id="id87CE9540BA194DD9A71C441316FF3F46"><enum>(B)</enum><text>as having been convicted of a misdemeanor, and</text> </subparagraph><subparagraph id="idC89125A50D1A43A1A1B37DAC727817E8"><enum>(C)</enum><text>as having a hiring date which is not more than 1 year after the last date on which such individual was so convicted or was released from prison.</text> </subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="idAAAEA84B60A04412A2BBFE58449D4C0A"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to individuals who begin work for the employer after the date of the enactment of this Act.</text> </paragraph></subsection><subsection id="id4A80F5AE60BE4B408D0FA1D96B2DBDD2"><enum>(b)</enum><header>Additional work opportunity credit for retained employees</header> <paragraph id="id490B6650D2284768964A5680D7AE8152"><enum>(1)</enum><header>In general</header><text>Subsection (a) of section 51 of the Internal Revenue Code of 1986 (relating to amount of credit) is amended by striking <quote>equal to 40 percent of the qualified first-year wages for such year.</quote> and inserting</text> <quoted-block display-inline="yes-display-inline" id="id674E87E45725404DB6BC2054345ED82C" style="OLC"> <text>equal to the sum of—</text><paragraph id="idC1D6C530B9274717A9F0FAFCFB7AAB4D"><enum>(1)</enum><text>40 percent of the qualified first year wages for such year, plus</text> </paragraph><paragraph id="idB76C331848A84833985718E23CA8B9A4"><enum>(2)</enum><text>$500 for each retained employee.</text> </paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="id9C31DE65917B4754A7C63EBDC03BB4EB"><enum>(2)</enum><header>Retained employee</header><text>Section 51 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="id7B505CFF164045869D3D99A9879EF7E3" style="OLC"> <subsection id="id826F44199FFC46568A6531F3369185D3"><enum>(l)</enum><header>Retained employee</header><text>For purposes of this section, the term <term>retained employee</term> means an employee who is a member of a targeted group and—</text> <paragraph id="id9AD700F188F741399E8A45841AD4157A"><enum>(1)</enum><text>who—</text> <subparagraph id="id56A04EC149884A8C953E28E174ADAF66"><enum>(A)</enum><text>has worked exactly 1,500 hours for the taxpayer during any period beginning on the date such employee was hired and ending with or within the taxable year, and</text> </subparagraph><subparagraph id="id5D84F1F63F904522BA117CBA7B0E9E18"><enum>(B)</enum><text>was continuously employed by such taxpayer during such period, or</text> </subparagraph></paragraph><paragraph id="id11B9160CC2E149548F819D68CDDCFC8F"><enum>(2)</enum><text>who—</text> <subparagraph id="idB9AD9F1B90A440CE9EC3CB336402DA6A"><enum>(A)</enum><text>began work with the taxpayer during any 52-week period ending with or within such taxable year, and</text> </subparagraph><subparagraph id="idDCBF7FA69AFF4FB0BCCD0FE97DDA4F03"><enum>(B)</enum><text>was continuously employed by such taxpayer during such 52-week period.</text> </subparagraph><continuation-text continuation-text-level="paragraph">For purposes of the preceding sentence, no employee may be treated as a retained employee more than once with respect to any taxpayer.</continuation-text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id05C4292FF7A84DD19157BC118C2C7152"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act.</text> </paragraph></subsection></section><section id="idC2B302C3C5F549AD8520CA780DAC6C12"><enum>207.</enum><header>Publication of changes and assistance with preparation</header><text display-inline="no-display-inline">The Secretary of the Treasury shall—</text> <paragraph id="idF3E1CD980ECD43D294484C946DC3FF40"><enum>(1)</enum><text>publicly disseminate information with respect to the amendments made by this title (including the dissemination of such information to State and local government one-stop job centers), and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id677BFA8727564EF6BCD8D7E2A5825728"><enum>(2)</enum><text>provide appropriate assistance to taxpayers (through low-income taxpayer clinics and other sources) for the purpose of allowing taxpayers to benefit from the amendments made by this title.</text> </paragraph></section>