SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Empowerment Zone Job Creation Act of 
1995''.

SEC. 2. PURPOSE.

    The purpose of this Act is to reduce crime and poverty in poor 
neighborhoods by providing employment opportunities leading to 
permanent unsubsidized employment for disadvantaged young adults in 
those neighborhoods.

SEC. 3. AUTHORIZATION.

    The Secretary of Labor (hereafter in this Act referred to as the 
``Secretary''), in consultation with other appropriate Federal 
officials, may provide grants to States for the purpose of establishing 
and carrying out programs that provide employment opportunities leading 
to permanent unsubsidized employment for disadvantaged young adults in 
poor neighborhoods.

SEC. 4. APPLICATION.

    (a) In General.--The Secretary may provide a grant under this Act 
to a State only if the State submits to the Secretary an application 
containing--
            (1) a plan described in subsection (b); and
            (2) such other information as the Secretary may reasonably 
        require.
    (b) Plan.--A plan described in this subsection is a plan that 
provides for the establishment of a program for reducing crime and 
poverty by substantially increasing employment levels of young adults 
in poor neighborhoods. Such plan shall--
            (1) describe the private sector, nonprofit, and public 
        sector components of the program, and describe, to the extent 
        practicable, the nature of the employment opportunities that 
        will be generated in the neighborhoods;
            (2) describe the outcomes that will be used to evaluate the 
        success of the program, including reducing crime and substance 
        abuse and increasing employment for young adults;
            (3) specify the organization that will administer the 
        program;
            (4) describe the public/private partnership that will 
        promote collaboration between the State and local governments, 
        local job training, education, employment, and public housing 
        agencies and authorities, local residents, community-based 
        organizations, and nonprofit organizations, and local community 
        policing, gang prevention activities, and juvenile justice or 
        delinquency preventive initiatives;
            (5) describe how the public and private sectors will work 
        together to assist young adults to make the transition from 
        subsidized to unsubsidized jobs; and
            (6) describe the extent of the local commitment of 
        resources to the program, including the commitment of 
        substantial resources by the last year of the program.

SEC. 5. USE OF AMOUNTS.

    (a) Establishment of Program.--
            (1) In general.--The Secretary may provide a grant under 
        this Act to a State only if the State agrees that it will use 
        all amounts received from such grant to provide for the 
        establishment of a program to saturate neighborhoods located in 
        areas described in paragraph (2) with employment opportunities 
        with for-profit, nonprofit, and public employers that are 
        likely to lead to permanent, unsubsidized employment for young 
        adults who have attained the age of 16 but who have not 
        attained the age of 26.
            (2) Area described.--An area described in this paragraph is 
        an empowerment zone designated pursuant to part I of subchapter 
        U of chapter 1 of the Internal Revenue Code of 1986.
    (b) Conduct of Program.--In carrying out the program established 
under subsection (a), the State shall ensure that the following 
requirements are met:
            (1) Provision of wage subsidies to employers.--The 
        organization administering the program shall provide amounts 
        received from a grant under this Act to employers for the 
        purpose of subsidizing the wages of young adults who are 
        employed by the employer under the program. In providing such 
amounts to employers, the organization administering the program 
shall--
                    (A) encourage private sector employers to employ 
                individuals with an emphasis on opportunities that 
                provide advanced or specialized training;
                    (B) require private sector employers, during the 
                course of a participant's subsidized employment, to 
                gradually increase their funding of that participant's 
                wages;
                    (C) encourage, if practicable, the provision of a 
                structured and integrated work and learning experience;
                    (D) encourage assistance to nonprofit employers and 
                public agencies to employ participants in projects 
                designed to address community needs, such as projects 
                to enhance neighborhood infrastructure, to modernize 
                public housing, and to provide other community 
                services;
                    (E) ensure that the duration of all subsidized 
                employment for a participant does not exceed more than 
                2,080 hours; and
                    (F) require that the subsidized employment provided 
                to any participant who is still enrolled in high school 
                shall not exceed 20 hours per week during the school 
                year.
            (2) Additional services.--The organization administering 
        the program shall provide additional services (either directly 
        with amounts received from a grant under this Act or through 
        arrangements with other appropriate Federal, State, or local 
        programs) to facilitate the transition of young adults to 
        permanent unsubsidized employment, including counseling, job 
        development and placement, follow-up services, and supportive 
        services.
            (3) Responsible behavior by participants.--The organization 
        administering the program shall ensure that continued 
        participation in the program by a young adult shall be 
        conditioned on--
                    (A) avoiding crime, including illegal drug use;
                    (B) regular attendance and satisfactory performance 
                at work;
                    (C) paying child support when paternity has been 
                established and the participant has an income; and
                    (D) in-school young adults remaining in school 
                until graduation.

SEC. 6. FEDERAL RESPONSIBILITIES.

    (a) Performance Measures.--The Secretary shall establish a system 
of performance measures for assessing programs established from amounts 
received from grants under this Act.
    (b) Evaluation.--
            (1) In general.--The Secretary shall conduct a rigorous 
        national evaluation of such programs that will track and assess 
        the effectiveness of those programs, and include an evaluation 
        to the extent to which such programs reduced crime and 
        substance abuse and increased employment and earnings. The 
        evaluation may include cost-benefit analyses and shall utilize 
        sound statistical methods and techniques.
            (2) Report.--Not later than December 31, 2001, the 
        Secretary shall prepare and submit to the Congress a report 
        containing a summary of the evaluation conducted under 
        paragraph (1).
    (c) Technical Assistance.--The Secretary may provide appropriate 
technical assistance to States receiving grants under this Act.
    (d) Funding.--The Secretary may reserve not more than 5 percent of 
the amount appropriated under this Act for any fiscal year to carry out 
this section.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this Act 
$150,000,000 for each of the fiscal years 1996 through 2000.
Empowerment Zone Job Creation Act of 1995 - Authorizes the Secretary of Labor to provide grants to States for programs that provide employment opportunities leading to permanent unsubsidized employment for disadvantaged young adults (aged 16 through 25) in poor neighborhoods (which are located in empowerment zones designated under specified provisions of the Internal Revenue Code). 
Provides under such programs:  (1) wage subsidies for employers, under certain conditions; and (2) additional transitional services for participants.  Requires specified types of responsible behavior by participants. 
Directs the Secretary to:  (1) establish a system of performance measures for assessing such programs; and (2) conduct a national evaluation of such programs, and report to the Congress.  Authorizes the Secretary to:  (1) provide technical assistance to such grant recipient States; and (2) reserve a portion of program funds for such Federal responsibilities. 
Authorizes appropriations.
Empowerment Zone Job Creation Act of 1995