To amend the Omnibus Crime Control and Safe Streets Act of 1968 to allow grants for the purpose of developing alternative methods of punishment for young offenders to traditional forms of incarceration and probation.

Amends the Omnibus Crime Control and Safe Streets Act of 1968 to authorize the Director of the Bureau of Justice Assistance to make grants to States for the purpose of developing alternatives to traditional forms of incarceration and probation as methods of punishment for young offenders.

Specifies that such alternative methods of punishment should ensure certainty of punishment for young offenders and promote reduced recidivism, crime prevention, and assistance to victims, including: (1) alternative sanctions that create accountability; (2) boot camp prison programs that include education and job training activities modeled after Jobs Corps activities; (3) innovative projects that provide such activities; (4) technical training and support for State and local restitution programs for young offenders; (5) correctional options, such as community-based incarceration, weekend incarceration, and electronic monitoring of offenders; (6) community service programs that provide work service placement for young offenders at nonprofit, private, and community organizations; (7) demonstration restitution projects that are evaluated for effectiveness; (8) innovative methods that address the problems of young offenders convicted of serious substance abuse; and (9) after care programs such as substance abuse treatment, education programs, vocational training, and job placement counseling.

Sets forth provisions regarding: (1) State and local application requirements; (2) review of State applications; (3) allocation and distribution of funds (including a requirement that not less than two-thirds of funds received by a State for purposes of this Act be distributed to units of local government unless the State applies for and receives a waiver from the Director); and (4) evaluation. Requires the Director to consider as an important factor in awarding grants whether a State has in effect a law or policy which: (1) requires that a juvenile who is in possession of a weapon on school property or convicted of a crime involving the use of a weapon on school property be suspended from school and lose driving license privileges; and (2) bans weapons within a 100-yard radius of school property.

Defines "young offender" for purposes of such Act to mean an individual 22 years old or younger who has not been convicted of a crime of sexual assault or a crime involving the use of a firearm and who has no prior conviction for a crime of violence punishable by one or more years' imprisonment.

Expresses the sense of the Congress that States should impose mandatory sentences for crimes involving use of a firearm or other weapon on, or within 100 yards of, school property.

Authorizes appropriations.