SEC. 505 DEMONSTRATION
PROJECTS TO EXPAND THE NUMBER OF JOB OPPORTUNITIES AVAILABLE TO CERTAIN LOW-INCOME
INDIVIDUALS
IN GENERAL.--The Secretary
of Health and Human Services (in this section referred to as the "Secretary")
shall enter into agreements with not less than 5 nor more than 10 nonprofit
organizations (including community development corporations) submitting applications
under this section for the purpose of conductingdemonstration projects in
accordance with subsection (b) to create employment opportunities for certain
low-income individuals.
NATURE OF PROJECT.--(1)
Each nonprofit organization conducting a demonstration project under this
section shall provide technical and financial assistance to private employers
in the community to assist them in creating employment and business opportunities
for those individuals eligible to participate in the projects as described
in this subsection.
(2) For purposes of this section,
a nonprofit organization is any organization (including a community development
corporation) exempt from taxation under section 501(a) of the Internal Revenue
Code in 1986 by reason of paragraph (3) or (4) of section 501(c) of such Code.
(3) A low-income individual eligible
to participate in a project conducted under this section is any individual
eligible to receive aid to families with dependent children under part A of
title IV of the Social Security Act and any other individual whose income
level does not exceed 100 percent of the official poverty line as defined
by the Office of Management and Budget and revised in accordance with section
673(2) of the Omnibus Budget Reconciliation Act of 1981.
CONTENT OF APPLICATIONS; SELECTION
PRIORITY.--(1) Each nonprofit organization submitting an application under
this section shall, as part of such application, describe--
the technical and financial
assistance that will be made available under the project conducted under
this section;
the geographic area to be
served by the project;
the percentage of low-income
individuals (as described in subsection (b)) and individuals receiving
aid to families with dependent children under title IV of the Social Security
Act in the area to be served by the project; and
unemployment rates in the
geographic areas to be served and (to the extent practicable) the jobs
available and skills necessary to fill those vacancies in such areas.
In approving applications under
this section, the Secretary shall give priority to applications proposing
to serve those areas containing the highest percentage of individuals receiving
aid to families with dependent children under title IV of such Act.
ADMINISTRATION.--Each nonprofit
organization participating in a demonstration project conducted under this
section shall provide assurances in its agreement with the Secretary that
it has or will have a cooperative relationship with the agency responsible
for administering the job opportunities and basic skills training program
(as provided for under title IV of the Social Security Act) in the area served
by the project.
DURATION.--Each demonstration
project conducted under this section shall be commenced not later than September
30, 1989, and shall be conducted for a 3-year period; except that the Secretary
may terminate a project before the end of such period if he determines that
the nonprofit organization conducting the project is not in substantial compliance
with the terms of the agreement entered into with the Secretary under this
section.
EVALUATION AND REPORT.--(1)
The Secretary shall conduct an evaluation of the success of each demonstration
project conducted under this section in creating job opportunities and may
require each nonprofit organization conducting such a project to provide the
Secretary with information as the Secretary determines is necessary to prepare
the report described in paragraph (2).
(2) Not later than January 1, 1993,
the Secretary shall submit to the Congress a report containing a summary of
the evaluations conducted under paragraph (1), together with such recommendations
as the Secretary determines are appropriate.
AUTHORIZATION OF APPROPRIATIONS.--For
the purpose of making grants to conduct demonstration projects under this
section, there is authorized to be appropriated not to exceed $6,500,000 for
each of the fiscal years 1990, 1991, and 1992.
