(a) During any program year, the Governor may use an amount not to
exceed 5 percent of the State's total bonus payment for the
administrative costs incurred under this program, including data and
information collection and compilation, recordkeeping, or the
preparation of applications for incentive bonuses (section
504(a)(1)(A)).
(b) The remainder, not less than 95 percent of the incentive bonuses
received, shall be distributed to SDAs and Job Corps Centers within the
State in a manner consistent with an agreement between the Governor and
these SDA's and centers. This agreement shall reflect an equitable
method of distribution which is based on the degree to which the effort
of the SDA and/or Center contributed to the State's qualification for
incentive bonus funds under title V (section 504(a)(1)(B)).
(c) Not more than 10 percent of the incentive bonus received in any
program year by each SDA and/or Job Corps Center may be used for the
administrative costs of establishing and maintaining systems necessary
for operation of programs under title V, including the costs of
providing incentive payments described in paragraph (d) of this section,
technical assistance, data and information collection and compilation,
management information systems, post-program followup activities, and
research and evaluation activities (section 504(a)(2)).
(d) Each SDA and/or Job Corps Center may make incentive payments to
service providers, including participating State and local agencies, and
community-based organizations, that demonstrate effectiveness in
delivering employment and training services to eligible individuals
under this title (section 504(b)).
(e) All remaining funds received by each SDA shall be used for
activities described in sections 204 and 264 of JTPA and shall be
subject to the regulations governing the operation of programs under
titles II-A and II-C of JTPA. All remaining funds received by each Job
Corps Center shall be used for activities authorized under part B of
title IV (section 504(a)(2).
