(a) In this section, “demonstration site” means a site that the Secretary selects in consultation with the local director.

(b) The Secretary may establish a FIP demonstration site in not more than six jurisdictions.

(c) Notwithstanding any other law, the local director shall appoint a director of the FIP established in a demonstration site who shall report directly to the local director.

(d) Notwithstanding any other law, the Secretary has sole authority to approve demonstration site plans that will govern FIP functions in a demonstration site, including the authority to approve demonstration site plans that will:

(1) assist families that have an employable parent toward a lasting exit from temporary cash assistance;

(2) ensure that individuals and families receive appropriate benefits;

(3) reduce errors in the administration of FIP;

(4) place temporary cash assistance recipients in employment in which their earnings will likely increase; and

(5) improve the types of employment and employment retention rates of existing and former recipients.

(e) The local director shall:

(1) develop a demonstration site plan for submittal to the Secretary for approval that will detail its:

(i) programmatic structure, including any programmatic changes;

(ii) organizational structure, including any organizational changes;

(iii) pay incentive structure and criteria for the award of pay incentives;

(iv) measurable performance criteria and how these relate to the incentive structure; and

(v) target performance criteria;

(2) implement the plan as approved; and

(3) report to the Department on the progress achieved in the demonstration site.

(f) The proper operation of the demonstration site and the achievement of the target performance criteria shall be an element of the local director’s performance evaluation.

(g) The Secretary shall establish a performance incentive program to provide pay incentives for employees in a demonstration site.

(h) The Secretary’s powers under this section shall be construed liberally.