SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Neighborhood Security Act''.

SEC. 2. PURPOSES.

    It is the purpose of this Act to provide for the establishment of 
demonstration projects designed to determine the effectiveness of--
            (1) certain activities by community residents in 
        coordination with the local police department in preventing and 
        removing violent crime and drug trafficking from the community;
            (2) such activities in increasing economic development in 
        the community; and
            (3) such activities in preventing or ending retaliation by 
        perpetrators of crime against community residents engaged in 
        these activities.

SEC. 3. DEMONSTRATION GRANT AUTHORITY.

    (a) Demonstration Authority.--Not later than 16 months after the 
date of enactment of this Act, the Secretary shall award grants under 
this Act. Grants shall be awarded annually under this section and shall 
be for a period of 4 years.
    (b) Limitation on Grant Amounts.--The amount of each grant awarded 
under this Act shall not be less than $25,000 nor more than $100,000.
    (c) Reduction in Amount.--Amounts provided under a grant awarded 
under this Act for a fiscal year shall be reduced in proportion to any 
reduction in the amounts appropriated under this Act for such fiscal 
year as compared to the amounts appropriated for the prior fiscal year.
    (d) Unused Portion of Grant Funds.--Any unused portion of a grant 
awarded under this section shall, upon the termination of such grant, 
be transferred to the Secretary for redistribution in the subsequent 
fiscal year or for repayment to the Department of the Treasury.

SEC. 4. APPLICATION.

    (a) Submission.--To be eligible to receive a grant under section 3, 
a qualified entity shall, not later than 12 months after the date of 
enactment of this Act, submit to the Secretary an application to 
conduct a demonstration project under this Act.
    (b) Content.--An application submitted under subsection (a) shall 
be in such form and contain such information as the Secretary shall 
require, including--
            (1) an agreement with the local police department to 
        coordinate and assist in the prevention and removal of violent 
        crime and drug trafficking from the target community;
            (2) a plan detailing the nature and extent of coordination 
        and assistance to be provided by the local police department, 
        project participants, and the applicant; and
            (3) a description of the strategy of the community for the 
        physical and economic development of the community.
    (c) Criteria.--In considering whether to approve an application 
submitted under this section, the Secretary shall consider--
            (1) the degree to which the project described in the 
        application will support existing community economic 
        development activities by preventing and removing violent crime 
        and drug trafficking from the community;
            (2) the demonstrated record of project participants with 
        respect to economic and community development activities;
            (3) the ability of the applicant to responsibly administer 
        the project;
            (4) the ability of the applicant to assist and coordinate 
        with project participants to achieve economic development and 
        prevent and remove violent crime and drug trafficking in the 
        community;
            (5) the adequacy of the plan to assist and coordinate with 
        the local police department in preventing and removing violent 
        crime and drug trafficking in the community;
            (6) the consistency of the application with the eligible 
        activities and the uses for the grant under this Act;
            (7) the aggregate amount of funds from non-Federal (public 
        and private sector) sources that are formally committed to the 
        project;
            (8) the adequacy of the plan for providing information 
        relevant to an evaluation of the project to the independent 
        research organization; and
            (9) such other factors as may be determined appropriate by 
        the Secretary.
    (d) Preferences.--In considering an application submitted under 
this section, the Secretary shall give preference to an applicant that 
demonstrates a commitment to work with project participants and a local 
police department in a community with--
            (1) an enterprise zone or enterprise community designation 
        or an area established pursuant to any consolidated planning 
        process for use of Federal housing and community development 
        funds;
            (2) significant rates of violent crime and drug 
        trafficking, as determined by the Secretary; and
            (3) at least one non-profit community development 
        corporation or similar organization that is willing to and 
        capable of increasing economic development.
    (e) Approval.--Not later than 15 months after the date of enactment 
of this Act, the Secretary shall, on competitive basis, approve or 
disapprove of the applications submitted under this section.

SEC. 5. ELIGIBLE ACTIVITIES.

    (a) Activities.--Amounts provided under a grant awarded under this 
Act shall be used for the following activities:
            (1) Citizen patrols by car or by foot intended to prevent 
        violent crime and eradicate open market or street sales of 
        controlled substances.
            (2) Block watch activities, including identification of 
        property for purposes of retrieving stolen goods, camera 
        surveillance to identify drug traffickers and their customers, 
        protection of evidence to ensure evidence is not lost or 
        destroyed prior to police arrival, and computer linkages among 
        organizations and the police to identify hot spots and speed 
        the dissemination of information.
            (3) Property modification programs, including securing 
        buildings and residences to prevent burglary, and structural 
        changes, such as the construction of fences, to parks or 
        buildings to prevent drug sales or other criminal activity in 
        those areas.
            (4) Squatter eviction programs aimed at notifying public 
        authorities of trespassers in abandoned buildings used as crack 
        houses or heroin shooting galleries and increasing efforts to 
        remove such squatters.
            (5) Expansion of community liaisons with the police, 
        including expanding the community's role in community policing 
        activities.
            (6) Developing and expanding programs to prevent or end 
        retaliation by perpetrators of crime against project 
        participants.
            (7) Other activities consistent with the purposes of this 
        Act.
    (b) Additional Activities.--Amounts provided under a grant awarded 
under this Act may be used for additional activities in support of the 
activities described in subsection (a), including--
            (1) the purchase of equipment or supplies, including 
        cameras, video cameras, walkie-talkies, and computers;
            (2) the training of project participants; and
            (3) the hiring of staff for grantees or project participant 
        organizations to assist in coordinating activities among 
        project participants and with the local police department.

SEC. 6. LOCAL CONTROL OVER PROJECTS.

    Except as provided in regulations promulgated under the succeeding 
sentence, each organization authorized to conduct a demonstration 
project under this Act shall have exclusive authority over the 
administration of the project. The Secretary may prescribe such 
regulations with respect to such demonstration projects as are 
expressly authorized or as are necessary to ensure compliance with 
approved applications and this Act.

SEC. 7. MONITORING OF GRANTEES.

    (a) In General.--The Secretary shall monitor grantees to ensure 
that the projects conducted under the grants are being carried out in 
accordance with this Act. Each grantee, and each entity which has 
received funds from a grant made under this Act, shall make appropriate 
books, documents, papers, and records available to the Secretary for 
examination, copying, or mechanical reproduction on or off the premises 
of the entity upon a reasonable request therefore.
    (b) Withholding, Termination or Recapture.--The Secretary shall, 
after adequate notice and an opportunity for a hearing, withhold, 
terminate, or recapture any funds due, or provided to and unused by, an 
entity under a grant awarded under this Act if the Secretary determines 
that such entity has not used any such amounts in accordance with the 
requirements of this Act. The Secretary shall withhold, terminate, or 
recapture such funds until the Secretary determines that the reason for 
the withholding, termination, or recapture has been removed and there 
is reasonable assurance that it will not recur.
    (c) Complaints.--The Secretary shall respond in an expeditious 
manner to complaints of a substantial or serious nature that an entity 
has failed to use funds provided under this Act in accordance with the 
requirements of this Act.

SEC. 8. REPORTS AND AUDITS.

    (a) Reports.--Not later than 3 months after the termination of a 
grant under this Act, the grantee shall prepare and submit to the 
Secretary a report containing such information as may be required by 
the Secretary.
    (b) Audits.--The Secretary shall annually audit the expenditures of 
each grantee under this Act from payments received under grants awarded 
under this Act. Such audits shall be conducted by an entity independent 
of any agency administering a program funded under this Act and, in so 
far as practical, in accordance with the Comptroller General's 
standards for auditing governmental organizations, programs, 
activities, and functions.

SEC. 9. EVALUATIONS.

    (a) In General.--Not later than 16 months after the date of 
enactment of this Act, the Secretary shall enter into a contract with 
an independent research organization under which such organization, in 
accordance with this section, conducts an evaluation of the 
demonstration projects, individually and as a group, conducted under 
this Act.
    (b) Research Questions.--In evaluating a demonstration project 
conducted under this Act, the organization described in subsection (a) 
shall address the following:
            (1) What activities and uses most effectively involve 
        project participants in the activities and uses under this Act 
        (with effectiveness measured, for example, by duration of 
        participation, frequency of participation, and intensity of 
        participation).
            (2) What activities and uses are most effective in 
        preventing or removing violent crime and drug trafficking from 
        a target community.
            (3) What activities and uses are most effective in 
        supporting or promoting economic development in a target 
        community.
            (4) What activities and uses are most effective in 
        increasing coordination and assistance between project 
        participants and with the local police department.
            (5) What activities and uses are most effective in 
        preventing or ending retaliation by perpetrators of crime 
        against project participants.
    (c) Funding.--Of the funds appropriated under this Act, the 
Secretary shall set aside not less than 1 percent and not more than 3 
percent for the evaluations required under this section.
    (d) Report to Congress.--Not later than 6 months after the date on 
which the last grant under this Act terminates, the Secretary shall 
prepare and submit to the appropriate committees of the Congress a 
summary of each evaluation conducted under this section.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this Act, 
$10,000,000 for each of the fiscal years 1997, 1998, 1999, and 2000.

SEC. 11. DEFINITIONS.

    As used in this Act:
            (1) Community.--The term ``community'' means a contiguous 
        geographic area within a large urban district or encompassing a 
        small urban or other nonurban area.
            (2) Drug trafficking.--The term ``drug trafficking'' means 
        any offense that could be prosecuted under the Controlled 
        Substances Act (21 U.S.C. 801, et seq.).
            (3) Economic development.--The term ``economic 
        development'' means revitalization and development activities, 
        including business, commercial, housing, and employment 
        activities, that benefit a community and its residents.
            (4) Grantee.--The term ``grantee'' means a qualified entity 
        that receives a grant under this Act.
            (5) Project participant.--The term ``project participant'' 
        means any individual or private-sector group in a community 
        participating in any of the activities established under a 
        demonstration grant under this Act.
            (6) Qualified entity.--The term ``qualified entity'' means 
        a non-profit organization described in section 501(c)(3) of the 
        Internal Revenue Code of 1986 and exempt from taxation under 
        the Internal Revenue Code of 1986.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (8) Violent crime.--The term ``violent crime'' has the same 
        meaning as the term ``crime of violence'' in title 18 of the 
        United States Code.
Neighborhood Security Act - Directs the Secretary of Health and Human Services to award grants to qualified entities for the establishment of demonstration projects designed to determine the effectiveness of certain activities by community residents in coordination with local police in preventing and removing violent crime and drug trafficking from the community, increasing economic development in the community, and preventing or ending retaliation by perpetrators of crime against community residents. 
Sets forth provisions regarding:  (1) the period of grant awards; (2) limits on grant amounts; (3) reductions in awards; and (4) redistribution of any unused portion of grant funds. 
Establishes application requirements, including:  (1) an agreement with the local police department to coordinate and assist in the prevention and removal of violent crime and drug trafficking in the target community; (2) a plan detailing the nature and extent of coordination and assistance to be provided by such department, project participants, and the applicant; and (3) a description of the strategy of the community for the physical and economic development of the community. 
Authorizes appropriations.
Neighborhood Security Act