ment for disadvantaged young adults in those neighbor-
hoods.
SEC. 3. AUTHORIZATION.
The Secretary of Labor (hereafter in this Act referred
to as the ‘‘Secretary’’), in consultation with other appro-
priate Federal officials, may provide grants to States for
the purpose of establishing and carrying out programs
that provide employment opportunities leading to perma-
nent 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 de-
scribe, 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 re-
ducing 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, em-
ployment, and public housing agencies and authori-
ties, local residents, community-based organizations,
and nonprofit organizations, and local community
policing, gang prevention activities, and juvenile jus-
tice 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 commit-
ment 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 pro-
gram to saturate neighborhoods located in areas de-
scribed in paragraph (2) with employment opportu-
nities with for-profit, nonprofit, and public employ-
ers 
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
EM-
PLOYERS.—The organization administering the pro-
gram shall provide amounts received from a grant
under this Act to employers for the purpose of subsi-
dizing the wages of young adults who are employed
by the employer under the program. In providing
such amounts to employers, the organization admin-
istering the program shall—
(A) encourage private sector employers to
employ individuals with an emphasis on oppor-
tunities that provide advanced or specialized
training;
(B) require private sector employers, dur-
ing the course of a participant’s subsidized em-
ployment, to gradually increase their funding of
that participant’s wages;
(C) encourage, if practicable, the provision
of a structured and integrated work and learn-
ing experience;
(D) encourage assistance to nonprofit em-
ployers and public agencies to employ partici-
pants in projects designed to address commu-
nity needs, such as projects to enhance neigh-
borhood infrastructure, to modernize public
housing, and to provide other community serv-
ices;
(E) ensure that the duration of all sub-
sidized employment for a participant does not
exceed more than 2,080 hours; and
(F) require that the subsidized employ-
ment provided to any participant who is still en-
rolled 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 pro-
grams) 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
PARTICI-
PANTS.—The organization administering the pro-
gram 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 pro-
grams, 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 tech-
niques.
(2) REPORT.—Not later than December 31,
2001, the Secretary shall prepare and submit to the
Congress a report containing a summary of the eval-
uation conducted under paragraph (1).
(c) TECHNICAL ASSISTANCE.—The Secretary may
provide appropriate technical assistance to States receiv-
ing 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.
Æ