II

104TH CONGRESS

2D SESSION S. 1904

To implement the Project for American Renewal, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JUNE 25, 1996

Mr. COATS introduced the following bill; which was read twice and referred

to the Committee on Finance

A BILL

To implement the Project for American Renewal, and for

other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Project for American Renewal Act’’.

6 (b) TABLE OF CONTENTS.—
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Sec. 1. Short title; table of contents.

TITLE I—EFFECTIVE COMPASSION

Subtitle A—Charity Tax Credit

PART I—CHARITY TAX CREDIT

Sec. 101. Credit for charitable contributions to certain private charities providing assistance to the poor.

PART II—BUDGET OFFSETS

SUBPART A—TAX OFFSETS

Sec. 111. Repeal of earned income credit for individuals without children.

Sec. 112. Legislation to eliminate corporate tax subsidies.

SUBPART B—FOOD STAMP PROGRAM

Sec. 121. Alternative authorizations of appropriations.

SUBPART C—REDUCTIONS UNDER SOCIAL SECURITY ACT

Sec. 131. Reduction of amounts paid to States under part A of title IV of the

Social Security Act.

Sec. 132. Repeal of block grants to States for social services.

SUBPART D—HOUSING AND COMMUNITY DEVELOPMENT PROGRAMS

Sec. 141. Reduction of community development block grant amounts.

Sec. 142. Repeal of home program.

Subtitle B—Other Provisions

Sec. 151. Credit for charitable contributions to individuals providing home care

to certain individuals in need.

Sec. 152. Medical volunteer tort claim immunity.

Sec. 153. Community partnership grant program.

TITLE II—COMMUNITY EMPOWERMENT

Subtitle A—Education

Sec. 201. Short title.

Sec. 202. Purpose.

Sec. 203. Definitions.

Sec. 204. Authorization of appropriations.

Sec. 205. Program authorized.

Sec. 206. Authorized projects; priority.

Sec. 207. Applications.

Sec. 208. Education certificates.

Sec. 209. Effect on other programs; use of school lunch data; construction provisions.

Sec. 210. Parental notification.

Sec. 210A. Evaluation.

Sec. 210B. Reports.

Subtitle B—Restitution and Responsibility
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Sec. 211. Restitution and responsibility grant program.

Subtitle C—Independence

Sec. 221. Findings.

Sec. 222. Individual development account demonstration projects.

Sec. 223. Individual development accounts.

Sec. 224. Funds in individual development accounts of demonstration project

participants disregarded for purposes of all means-tested Federal programs.

Subtitle D—Housing

PART I—URBAN HOMESTEADS

Sec. 231. Urban homestead provisions.

PART II—MATERNITY SHELTER

Sec. 232. Findings.

SUBPART A—MATERNAL HEALTH CERTIFICATES PROGRAM

Sec. 233. Maternal health certificates for eligible pregnant women.

SUBPART B—MATERNITY HOME DEMONSTRATIONS

Sec. 236. Purposes.

Sec. 237. Establishment of demonstration program.

SUBPART C—REHABILITATION GRANTS FOR MATERNITY HOUSING AND

SERVICES FACILITIES

Sec. 241. Establishment of grant program.

Sec. 242. Authority and applications.

Sec. 243. Grant limitations.

Sec. 244. Reports.

Sec. 245. Definitions.

Sec. 246. Authorization of appropriations.

SUBPART D—MISCELLANEOUS PROVISIONS

Sec. 248. Evaluations and reports.

Sec. 249. Prohibition on abortion.

TITLE III—OTHER AMERICAN RENEWAL INCENTIVES

Subtitle A—Housing

Sec. 301. Public housing for intact families.

Sec. 302. Effective date.

Subtitle B—Responsible Parenting

Sec. 311. Amendments to the Social Security Act.

Sec. 312. Integration of family planning and maternal and child health services.

Sec. 313. Abstinence services.

Sec. 314. Use of funds.

Sec. 315. Application for block grant funds.

Sec. 316. Reports and audits.
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Sec. 317. Evaluation.

Sec. 318. Repeal of certain programs.

Sec. 319. Effective date.

Subtitle C—Character Development

Sec. 321. Purposes.

Sec. 322. Definitions.

Sec. 323. Mentoring programs.

Sec. 324. Implementation and evaluation grants.

Sec. 325. Authorized activities.

Sec. 326. Regulations and guidelines.

Sec. 327. Applications.

Sec. 328. Evaluation.

Sec. 329. Reports.

Sec. 330. Authorization of appropriations.

Subtitle D—Family Reconciliation

Sec. 331. Set-aside for States with approved family reconciliation plans.

Sec. 332. Use of funds under Legal Services Corporation Act.

Subtitle E—Mentor Schools

Sec. 341. Mentor schools.

Subtitle F—Role Models Academy

Sec. 351. Purpose; definitions.

Sec. 352. Objectives.

Sec. 353. Academy established.

Sec. 354. Authorization.

Subtitle G—Kinship Care

Sec. 361. Kinship care demonstration.

Sec. 362. Procedures to place children with relatives.

Sec. 363. Authorization of appropriations.

1 TITLE I—EFFECTIVE

2 COMPASSION

3 Subtitle A—Charity Tax Credit

4 PART I—CHARITY TAX CREDIT

5 SEC. 101. CREDIT FOR CHARITABLE CONTRIBUTIONS TO

6 CERTAIN PRIVATE CHARITIES PROVIDING

7 ASSISTANCE TO THE POOR.

8 (a) IN GENERAL.—Subpart A of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of
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1 1986 (relating to nonrefundable personal credits) is

2 amended by inserting after section 25 the following new

3 section:

4 ‘‘SEC. 25A. CREDIT FOR CERTAIN CHARITABLE CONTRIBU5 TIONS.

6 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in7 dividual, there shall be allowed as a credit against the tax

8 imposed by this chapter for the taxable year an amount

9 equal to the sum of—

10 ‘‘(1) 100 percent of the qualified charitable con11 tributions which are paid by the taxpayer during the

12 taxable year to the extent such contributions do not

13 exceed $100, plus

14 ‘‘(2) 90 percent of such contributions in excess

15 of $100 but not in excess of the maximum dollar

16 amount.

17 In the case of a joint return, this subsection shall be ap18 plied by substituting ‘$200’ for ‘$100’ each place it ap19 pears.

20 ‘‘(b) MAXIMUM DOLLAR AMOUNT.—For purposes of

21 this section—

22 ‘‘(1) IN GENERAL.—The maximum dollar

23 amount shall be determined in accordance with the

24 following table:

‘‘In the case of taxable years

beginning in:

The maximum dollar amount is:

1997 ......................................................................................... $100
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‘‘In the case of taxable years

beginning in:

The maximum dollar amount is:

1998 ......................................................................................... 200

1999 ......................................................................................... 300

2000 ......................................................................................... 400

2001 and thereafter ................................................................. 500.

1 ‘‘(2) JOINT RETURNS.—In the case of a joint

2 return, the maximum dollar amount shall be twice

3 the amount determined under paragraph (1).

4 ‘‘(c) QUALIFIED CHARITABLE CONTRIBUTION.—For

5 purposes of this section, the term ‘qualified charitable con6 tribution’ means any charitable contribution (as defined

7 in section 170(c)) made in cash to a qualified charity.

8 ‘‘(d) QUALIFIED CHARITY.—For purposes of this sec9 tion—

10 ‘‘(1) IN GENERAL.—The term ‘qualified charity’

11 means any organization—

12 ‘‘(A) which is described in section

13 501(c)(3) and exempt from tax under section

14 501(a), and

15 ‘‘(B) which is certified by the Secretary as

16 meeting the requirements of paragraphs (3)

17 and (4).

18 The Secretary shall certify an organization under

19 subparagraph (B) only upon request of the organiza20 tion. An organization may not request such certifi21 cation unless the organization has been in existence

22 for at least one year.
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1 ‘‘(2) COLLECTION ORGANIZATIONS.—Such term

2 also includes an organization described in section

3 501(c)(3) and exempt from tax under section 501(a)

4 which—

5 ‘‘(A) solicits and collects gifts and grants

6 which, by agreement, are distributed to quali7 fied charities described in paragraph (1),

8 ‘‘(B) distributes at least 90 percent of the

9 contributions described in subsection (a) col10 lected under subparagraph (A) to qualified

11 charities described in paragraph (1), and

12 ‘‘(C) meets the requirements of paragraph

13 (6).

14 ‘‘(3) CHARITY MUST PRIMARILY ASSIST POOR

15 INDIVIDUALS.—

16 ‘‘(A) IN GENERAL.—An organization meets

17 the requirements of this paragraph only if the

18 Secretary reasonably expects that the predomi19 nant activity of such organization will be the

20 provision of direct services within the United

21 States to individuals and families whose annual

22 incomes generally do not exceed 185 percent of

23 the official poverty line (as defined by the Of24 fice of Management and Budget) in order to
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1 prevent or alleviate poverty among such individ2 uals and families.

3 ‘‘(B) NO RECORDKEEPING IN CERTAIN

4 CASES.—An organization shall not be required

5 to establish or maintain records with respect to

6 the incomes of individuals and families for pur7 poses of subparagraph (A) if such individuals or

8 families are members of groups which are gen9 erally recognized as including substantially only

10 individuals and families described in subpara11 graph (A).

12 ‘‘(C) FOOD AID AND HOMELESS SHEL13 TERS.—Except as otherwise provided in regula14 tions, for purposes of subparagraph (A), serv15 ices to individuals in the form of—

16 ‘‘(i) donations of food or meals, or

17 ‘‘(ii) temporary shelter to homeless in18 dividuals,

19 shall be treated as provided to individuals de20 scribed in subparagraph (A) if the location and

21 operation of such services are such that the

22 service provider may reasonably conclude that

23 the beneficiaries of such services are predomi24 nantly individuals described in subparagraph

25 (A).
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1 ‘‘(4) MINIMUM EXPENSE REQUIREMENT.—

2 ‘‘(A) IN GENERAL.—An organization meets

3 the requirements of this paragraph only if the

4 Secretary reasonably expects that the annual

5 poverty program expenses of such organization

6 will not be less than 75 percent of the annual

7 aggregate expenses of such organization.

8 ‘‘(B) POVERTY PROGRAM EXPENSE.—For

9 purposes of subparagraph (A)—

10 ‘‘(i) IN GENERAL.—The term ‘poverty

11 program expense’ means any expense in

12 providing program services referred to in

13 paragraph (3).

14 ‘‘(ii) EXCEPTIONS.—Such term shall

15 not include—

16 ‘‘(I) any management or general

17 expense,

18 ‘‘(II) any expense for the purpose

19 of influencing legislation (as defined

20 in section 4911(d)),

21 ‘‘(III) any expense for the pur22 pose of fundraising,

23 ‘‘(IV) any expense for a legal

24 service provided on behalf of any indi-
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1 vidual referred to in paragraph (3),

2 and

3 ‘‘(V) any expense which consists

4 of a payment to an affiliate of the or5 ganization.

6 ‘‘(5) ELECTION TO TREAT POVERTY PROGRAMS

7 AS SEPARATE ORGANIZATION.—

8 ‘‘(A) IN GENERAL.—An organization may

9 elect to treat one or more programs operated by

10 it as a separate organization for purposes of

11 this section.

12 ‘‘(B) EFFECT OF ELECTION.—If an orga13 nization elects the application of this para14 graph, the organization shall, in accordance

15 with regulations—

16 ‘‘(i) maintain separate accounting for

17 revenues and expenses of programs with

18 respect to which the election was made,

19 ‘‘(ii) ensure that contributions to

20 which this section applies be used only for

21 such programs, and

22 ‘‘(iii) provide for the proportional allo23 cation of management, general, and fund24 raising expenses to such programs to the

25 extent not allocable to a specific program.
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1 ‘‘(C) REPORTING REQUIREMENTS.—

2 ‘‘(i) ORGANIZATIONS NOT OTHERWISE

3 REQUIRED TO FILE.—An organization not

4 otherwise required to file any return under

5 section 6033 shall be required to file such

6 a return with respect to any poverty pro7 gram treated as a separate organization

8 under this paragraph.

9 ‘‘(ii) ORGANIZATIONS REQUIRED TO

10 FILE.—An organization otherwise required

11 to file a return under section 6033—

12 ‘‘(I) shall file a separate return

13 with respect to any poverty program

14 treated as a separate organization

15 under this section, and

16 ‘‘(II) shall include on its own re17 turn the percentages equivalent to

18 those required of qualified charities

19 under the last sentence of section

20 6033(b) and determined with respect

21 to such organization (without regard

22 to the expenses of any poverty pro23 gram under subclause (I)).
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1 ‘‘(6) ADDITIONAL REQUIREMENTS FOR SOLICI2 TATION ORGANIZATIONS.—The requirements of this

3 paragraph are met if the organization—

4 ‘‘(A) maintains separate accounting for

5 revenues and expenses, and

6 ‘‘(B) makes available to the public its ad7 ministrative and fundraising costs and informa8 tion as to the organizations receiving funds

9 from it and the amount of such funds.

10 ‘‘(e) SUBSTANTIATION REQUIREMENT FOR CON11 TRIBUTIONS IN EXCESS OF $250.—No credit shall be al12 lowed under subsection (a) for any contribution of $250

13 or more unless the taxpayer substantiates the contribution

14 by a contemporaneous written acknowledgement by the

15 qualified charity that meet the requirements of section

16 170(f)(8)(B). The rules of subparagraphs (C), (D), and

17 (E) of section 170(f)(8) shall apply for purposes of this

18 subsection.

19 ‘‘(f) TIME WHEN CONTRIBUTIONS DEEMED

20 MADE.—For purposes of this section, at the election of

21 the taxpayer, a contribution which is made not later than

22 the time prescribed by law for filing the return of tax for

23 the taxable year (not including extensions thereof) shall

24 be treated as made on the last day of such taxable year.
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1 ‘‘(g) COORDINATION WITH DEDUCTION FOR CHARI2 TABLE CONTRIBUTIONS.—

3 ‘‘(1) CREDIT IN LIEU OF DEDUCTION.—The

4 credit provided by subsection (a) for any qualified

5 charitable contribution shall be in lieu of any deduc6 tion otherwise allowable under this chapter for such

7 contribution.

8 ‘‘(2) ELECTION TO HAVE SECTION NOT

9 APPLY.—A taxpayer may elect for any taxable year

10 to have this section not apply.’’

11 (b) RETURNS.—

12 (1) QUALIFIED CHARITIES REQUIRED TO PRO13 VIDE COPIES OF ANNUAL RETURN.—Subsection (e)

14 of section 6104 of such Code (relating to public in15 spection of certain annual returns and applications

16 for exemption) is amended by adding at the end the

17 following new paragraph:

18 ‘‘(3) QUALIFIED CHARITIES REQUIRED TO PRO19 VIDE COPIES OF ANNUAL RETURN.—

20 ‘‘(A) IN GENERAL.—Every qualified char21 ity (as defined in section 25A(d)) shall, upon

22 request of an individual made at an office

23 where such organization’s annual return filed

24 under section 6033 is required under paragraph

25 (1) to be available for inspection, provide a copy
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1 of such return to such individual without charge

2 other than a reasonable fee for any reproduc3 tion and mailing costs. If the request is made

4 in person, such copies shall be provided imme5 diately and, if made other than in person, shall

6 be provided within 30 days.

7 ‘‘(B) PERIOD OF AVAILABILITY.—Subpara8 graph (A) shall apply only during the 3-year pe9 riod beginning on the filing date (as defined in

10 paragraph (1)(D)) of the return requested.’’

11 (2) ADDITIONAL INFORMATION.—Section

12 6033(b) of such Code is amended by adding at the

13 end the following new flush sentence:

14 ‘‘Each qualified charity (as defined in section 25A(d)) to

15 which this subsection otherwise applies shall also furnish

16 each of the percentages determined by dividing the follow17 ing categories of the organization’s expenses for the year

18 by its total expenses for the year: program services; man19 agement and general; fundraising; and payments to affili20 ates and shall also furnish the category or categories (in21 cluding food, shelter, education, substance abuse, job

22 training, or otherwise) of services which constitute its pre23 dominant activities.’’

24 (c) CLERICAL AMENDMENT.—The table of sections

25 for subpart A of part IV of subchapter A of chapter 1
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1 of such Code is amended by inserting after the item relat2 ing to section 25 the following new item:

‘‘Sec. 25A. Credit for certain charitable contributions.’’

3 (d) EFFECTIVE DATE.—The amendments made by

4 this section shall take effect as provided in section 112

5 (relating to offsetting legislation to eliminate corporate tax

6 subsidies).

7 (e) STUDY AND REPORT.—

8 (1) STUDY.—The Comptroller General of the

9 United States shall conduct a study of the effects of

10 the credit under section 25A of the Internal Revenue

11 Code of 1986, including—

12 (A) the types of organizations which re13 ceive contributions during the first year to

14 which the credit applies, and

15 (B) the types of services provided to the

16 poor by such organizations.

17 (2) REPORT.—The Comptroller General shall

18 report to the Congress the results of such study, in19 cluding—

20 (A) the geographical distribution of fund21 ing from charity tax credit contributions, and

22 an analysis of Internal Revenue Service form

23 990s of qualified charities to determine if the

24 broad categories of services provided to the poor

25 (including food, shelter, education, substance
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1 abuse, job training, or otherwise) match the

2 services that would otherwise be provided by

3 Federal welfare program funds without the en4 actment of the reductions in the programs

5 called for by this legislation, and

6 (B) any recommendations for legislative

7 changes.

8 PART II—BUDGET OFFSETS

9 Subpart A—Tax Offsets

10 SEC. 111. REPEAL OF EARNED INCOME CREDIT FOR INDI11 VIDUALS WITHOUT CHILDREN.

12 (a) IN GENERAL.—Subparagraph (A) of section

13 32(c)(1) of the Internal Revenue Code of 1986 (defining

14 eligible individual) is amended to read as follows:

15 ‘‘(A) IN GENERAL.—The term ‘eligible in16 dividual’ means any individual who has a quali17 fying child for the taxable year.’’.

18 (b) CONFORMING AMENDMENTS.—Each of the tables

19 contained in paragraphs (1) and (2) of section 32(b) of

20 such Code are amended by striking the items relating to

21 no qualifying children.

22 (c) EFFECTIVE DATE.—The amendments made by

23 this section shall apply to taxable years beginning after

24 December 31, 1999.
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1 SEC. 112. LEGISLATION TO ELIMINATE CORPORATE TAX

2 SUBSIDIES.

3 (a) LEGISLATION TO ELIMINATE CORPORATE TAX

4 SUBSIDIES.—

5 (1) IN GENERAL.—Within 30 days after the

6 date of the enactment of this Act, the House Com7 mittee on Ways and Means and the Senate Commit8 tee on Finance shall each report changes in laws

9 within its jurisdiction reducing corporate tax sub10 sidies sufficient to raise revenues by not less than

11 $700,000,000 in calendar year 1997,

12 $3,000,000,000 in calendar year 1998,

13 $3,000,000,000 in calendar year 1999,

14 $3,500,000,000 in calendar year 2000, and

15 $4,500,000,000 in calendar year 2001.

16 (2) ADDITIONAL AMOUNTS.—Amounts referred

17 to in subsection (a) shall be in addition to amounts

18 to be reconciled to carry out sections 201 and 202

19 of House Concurrent Resolution 178 (104th Con20 gress).

21 (b) EFFECTIVE DATE.—

22 (1) IN GENERAL.—The amendments made by

23 section 101 shall apply to contributions made on or

24 after January 1 of the first calendar year following

25 the calendar year in which the Director of the Office
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1 of Management and Budget (hereinafter in this sub2 section referred to as the ‘‘Director’’) submits—

3 (A) the report required by section 252(d)

4 of the Balanced Budget and Emergency Deficit

5 Control Act of 1985 for the legislation reported

6 pursuant to subsection (a)(1); and

7 (B) at the same time a certification that,

8 based upon the estimates set forth in that re9 port of the increase in receipts resulting from

10 that legislation, such increase is not less than

11 the increase specified in subsection (a)(1) for

12 each of calendar years 1997 through 2001.

13 (2) AUTHORIZATION.—The Director is author14 ized and directed to carry out his duties under para15 graph (1)(B).

16 Subpart B—Food Stamp Program

17 SEC. 121. ALTERNATIVE AUTHORIZATIONS OF APPROPRIA18 TIONS.

19 (a) AUTHORIZATION OF APPROPRIATIONS FOR CUR20 RENT PROGRAM.—If section 403 of the Social Security

21 Act (42 U.S.C. 603) is not replaced as a result of a statute

22 enacted before October 1, 1998, then the first sentence

23 of section 18(a)(1) of the Food Stamp Act of 1977 (7

24 U.S.C. 2027(a)(1)) is amended by striking ‘‘1997.’’ and

25 inserting ‘‘1998, $29,642,000,000 for fiscal year 1999,
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1 $30,176,000,000 for fiscal year 2000, and

2 $30,697,000,000 for fiscal year 2001.’’.

3 (b) AUTHORIZATION OF APPROPRIATIONS FOR PRO4 GRAM AS AMENDED BY RECONCILIATION ACT.—If section

5 403 of the Social Security Act (42 U.S.C. 603) is replaced

6 as a result of a statute enacted before October 1, 1998,

7 then the first sentence of section 18(a)(1) of the Food

8 Stamp Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by

9 striking ‘‘1997.’’ and inserting ‘‘1998, $25,647,000,000

10 for fiscal year 1999, $26,008,000,000 for fiscal year 2000,

11 and $26,193,000,000 for fiscal year 2001.’’.

12 Subpart C—Reductions Under Social Security Act

13 SEC. 131. REDUCTION OF AMOUNTS PAID TO STATES

14 UNDER PART A OF TITLE IV OF THE SOCIAL

15 SECURITY ACT.

16 (a) IN GENERAL.—Notwithstanding any other provi17 sion of law, the Secretary of Health and Human Services

18 shall reduce the amount otherwise payable to each State

19 under the selected payment provisions of part A of title

20 IV of the Social Security Act, for each quarter in calendar

21 year 1999, 2000, and 2001, by such equal percentage for

22 the calendar quarter as may be necessary to ensure that

23 the total amount of such reductions for the calendar year

24 equals the applicable percentage for the calendar year of

25 the total of such otherwise payable amounts.
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1 (b) DEFINITIONS.—As used in subsection (a):

2 (1) APPLICABLE PERCENTAGE.—The term ‘‘ap3 plicable percentage’’ means—

4 (A) for calendar year 1999,

5 $1,950,000,000 divided by the total amount

6 which, in the absence of this section, would be

7 paid under the selected payment provisions re8 ferred to in subsection (a) for the calendar

9 year;

10 (B) for calendar year 2000,

11 $2,300,000,000 divided by the total amount

12 which, in the absence of this section, would be

13 paid under the selected payment provisions for

14 calendar year 2000; or

15 (C) for calendar year 2001,

16 $3,150,000,000 divided by the total amount

17 which, in the absence of this section, would be

18 paid under the selected payment provisions for

19 calendar year 2001.

20 (2) SELECTED PAYMENT PROVISIONS OF PART

21 A OF TITLE IV OF THE SOCIAL SECURITY ACT.—The

22 term ‘‘selected payment provisions of part A of title

23 IV of the Social Security Act’’ means section 403 of

24 the Social Security Act or, if such section is replaced
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1 after June 24, 1996, section 403(a)(1) of the Social

2 Security Act.

3 (3) STATE.—The term ‘‘State’’ has the mean4 ing given such term by section 1101(a)(1) of the So5 cial Security Act when used in title IV of such Act.

6 SEC. 132. REPEAL OF BLOCK GRANTS TO STATES FOR SO7 CIAL SERVICES.

8 (a) REPEAL.—Title XX of the Social Security Act

9 (42 U.S.C. 1397 et seq.) is repealed.

10 (b) NO EFFECT ON FUNDS OBLIGATED FOR QUALI11 FIED EMPOWERMENT ZONES AND QUALIFIED ENTER12 PRISE COMMUNITIES.—The repeal made by subsection (a)

13 shall not apply to funds obligated under section 2007 of

14 the Social Security Act before the effective date of this

15 section.

16 (c) EFFECTIVE DATE.—This section and the amend17 ments and repeals made by this section shall take effect

18 on October 1, 1997.

19 Subpart D—Housing and Community Development

20 Programs

21 SEC. 141. REDUCTION OF COMMUNITY DEVELOPMENT

22 BLOCK GRANT AMOUNTS.

23 Section 103 of the Housing and Community Develop24 ment Act of 1974 (42 U.S.C. 5303) is amended—
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1 (1) by striking the second sentence and insert2 ing the following new sentence: ‘‘For purposes of as3 sistance under section 106, there is authorized to be

4 appropriated $3,312,000,000 for each of fiscal years

5 1999, 2000, and 2001.’’;

6 (2) by inserting ‘‘(a) AUTHORIZATION OF AP7 PROPRIATIONS.—’’ after ‘‘SEC. 103.’’; and

8 (3) by adding at the end the following new sub9 section:

10 ‘‘(b) LIMITATION.—Notwithstanding subsection (a)

11 or any other provision of law, the amount authorized to

12 be appropriated and the amount used for grants under

13 this title in fiscal year 1999 or any fiscal year thereafter

14 may not exceed $3,312,000,000. This subsection may not

15 be construed to authorize the appropriation of any

16 amounts for any fiscal year.’’.

17 SEC. 142. REPEAL OF HOME PROGRAM.

18 (a) REPEAL.—Effective January 1, 1999, title II of

19 the Cranston-Gonzalez National Affordable Housing Act

20 (42 U.S.C. 12721 et seq.) is repealed.

21 (b) HOME INVESTMENT TRUST FUNDS.—Notwith22 standing subsection (a), the Secretary of Housing and

23 Urban Development shall maintain a HOME Investment

24 Trust Fund in accordance with section 218 of the Cran25 ston-Gonzalez National Affordable Housing Act, as in ef-
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1 fect before the repeal under subsection (a), for each par2 ticipating jurisdiction during the period of time that the

3 jurisdiction has a positive balance in such fund. Amounts

4 credited to the HOME Investment Trust Fund of a par5 ticipating jurisdiction shall be available, on and after Jan6 uary 1, 1999, in accordance with the terms of title II of

7 the Cranston-Gonzalez National Affordable Housing Act,

8 as in effect before such repeal.

9 (c) AFFORDABLE HOUSING REQUIREMENTS.—The

10 repeal under subsection (a) shall not affect any agreement,

11 obligation, or requirement, pursuant to title II of the

12 Cranston-Gonzalez National Affordable Housing Act (as

13 in effect before such repeal), to maintain housing assisted

14 under such title as affordable housing.

15 (d) CONFORMING AMENDMENTS.—Effective January

16 1, 1999—

17 (1) the United States Housing Act of 1937 is

18 amended—

19 (A) in section 8(f) (42 U.S.C. 1437f(f))—

20 (i) by striking paragraph (4); and

21 (ii) by redesignating paragraphs (5),

22 (6), and (7) as paragraphs (4), (5), and

23 (6), respectively; and

24 (B) in section 303(c) (42 U.S.C. 1437aaa–

25 2(c)), by striking paragraph (3);
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1 (2) section 213(d)(1)(A)(ii) of the Housing and

2 Community Development Act of 1974 (42 U.S.C.

3 1439(d)(1)(A)(ii)) is amended—

4 (A) in the first sentence, by striking ‘‘par5 ticipating’’;

6 (B) by striking the penultimate sentence;

7 and

8 (C) in the last sentence, by striking ‘‘The

9 preceding sentence’’ and inserting ‘‘This

10 clause’’;

11 (3) section 1004(20) of the Residential Lead12 Based Paint Hazard Reduction Act of 1992 (42

13 U.S.C. 4851b(20)) is amended by inserting ‘‘as in

14 effect on December 31, 1998,’’ after the comma;

15 (4) the last sentence of section 1205(f)(1)(A) of

16 the Removal of Regulatory Barriers to Affordable

17 Housing Act of 1992 (42 U.S.C. 12705c(f)(1)(A)) is

18 amended by inserting ‘‘as in effect on December 31,

19 1998,’’ after the second comma;

20 (5) section 40(g) of the Federal Deposit Insur21 ance Act (12 U.S.C. 1831q(g)) is amended by strik22 ing paragraph (5); and

23 (6) section 226(b)(5)(D) of the Low-Income

24 Housing Preservation and Resident Homeownership
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1 Act of 1990 (12 U.S.C. 4116(b)(5)(D)) is amend2 ed—

3 (A) in the third sentence, by inserting ‘‘(as

4 in effect on December 31, 1998)’’ before the pe5 riod; and

6 (B) by adding at the end the following: ‘‘If

7 the HOME Investment Trust Fund for the unit

8 of general local government or State in which

9 the housing is located has been terminated, any

10 such proceeds shall be paid to such unit or

11 State and the Secretary shall take such actions

12 as are necessary to ensure that such proceeds

13 are immediately available for such eligible ac14 tivities to expand the supply of affordable hous15 ing.’’.

16 Subtitle B—Other Provisions

17 SEC. 151. CREDIT FOR CHARITABLE CONTRIBUTIONS TO

18 INDIVIDUALS PROVIDING HOME CARE TO

19 CERTAIN INDIVIDUALS IN NEED.

20 (a) IN GENERAL.—Subpart A of part IV of sub21 chapter A of chapter 1 of the Internal Revenue Code of

22 1986 (relating to nonrefundable personal credits), as

23 amended by section 101, is amended by inserting after

24 section 25A the following new section:
26

•S 1904 IS

1 ‘‘SEC. 25B. CREDIT FOR HOME CARE FOR NEEDY INDIVID2 UALS.

3 ‘‘(a) IN GENERAL.—In the case of an individual,

4 there shall be allowed as a credit against the tax imposed

5 by this chapter for a taxable year an amount equal to

6 $500 for each eligible individual.

7 ‘‘(b) ELIGIBLE INDIVIDUAL.—For purposes of this

8 section—

9 ‘‘(1) IN GENERAL.—The term ‘eligible individ10 ual’ means an individual—

11 ‘‘(A) who is a member of a class of individ12 uals described in paragraph (2), and

13 ‘‘(B) to whom the taxpayer provides quali14 fied home care services which are required by

15 the individual by reason of being a member of

16 such a class.

17 ‘‘(2) NEEDY INDIVIDUALS.—The classes of indi18 viduals described in this paragraph are as follows:

19 ‘‘(A) Unmarried pregnant women.

20 ‘‘(B) Hospice care patients, including

21 AIDS patients and cancer patients.

22 ‘‘(C) Homeless individuals.

23 ‘‘(D) Battered women and battered women

24 with children.

25 ‘‘(3) QUALIFIED HOME CARE SERVICES.—The

26 term ‘qualified home care services’ means those serv-
27

•S 1904 IS

1 ices which the taxpayer is certified as being qualified

2 to provide to an eligible individual by an organiza3 tion—

4 ‘‘(A) which is described in section

5 501(c)(3) and exempt from tax under section

6 501(a), and

7 ‘‘(B) the predominant activity of which is

8 providing care to one or more classes of eligible

9 individuals.’’

10 (b) CLERICAL AMENDMENT.—The table of sections

11 for subpart A of part IV of subchapter A of chapter 1

12 of the Internal Revenue Code of 1986 is amended by in13 serting after the item relating to section 25A the following

14 new item:

‘‘Sec. 25B. Credit for home care for needy individuals.’’

15 (c) EFFECTIVE DATE.—The amendments made by

16 this section shall apply to taxable years beginning after

17 December 31, 1996.

18 SEC. 152. MEDICAL VOLUNTEER TORT CLAIM IMMUNITY.

19 Section 224 of the Public Health Service Act (42

20 U.S.C. 233) is amended by adding at the end the following

21 subsection:

22 ‘‘(o)(1) For purposes of this section, a free clinic

23 health professional shall in providing a qualifying health

24 service to an individual be deemed to be an employee of

25 the Public Health Service for a calendar year that begins
28

•S 1904 IS

1 during a fiscal year for which a transfer was made under

2 paragraph (6)(D). The preceding sentence is subject to

3 the provisions of this subsection.

4 ‘‘(2) In providing a health service to an individual,

5 a health care practitioner shall for purposes of this sub6 section be considered to be a free clinic health professional

7 if the following conditions are met:

8 ‘‘(A) The service is provided to the individual at

9 a free clinic, or through offsite programs or events

10 carried out by the free clinic.

11 ‘‘(B) The free clinic is sponsoring the health

12 care practitioner pursuant to paragraph (5)(C).

13 ‘‘(C) The service is a qualifying health service

14 (as defined in paragraph (4)).

15 ‘‘(D) Neither the health care practitioner nor

16 the free clinic receives any compensation for the

17 service from the individual or from any third-party

18 payor (including reimbursement under any insurance

19 policy or health plan, or under any Federal or State

20 health benefits program). With respect to compliance

21 with such condition:

22 ‘‘(i) The health care practitioner may re23 ceive repayment from the free clinic for reason24 able expenses incurred by the health care prac-
29

•S 1904 IS

1 titioner in the provision of the service to the in2 dividual.

3 ‘‘(ii) The free clinic may accept voluntary

4 donations for the provision of the service by the

5 health care practitioner to the individual.

6 ‘‘(E) Before the service is provided, the health

7 care practitioner or the free clinic provides written

8 notice to the individual of the extent to which the

9 legal liability of the health care practitioner is lim10 ited pursuant to this subsection (or in the case of an

11 emergency, the written notice is provided to the indi12 vidual as soon after the emergency as is practicable).

13 If the individual is a minor or is otherwise legally in14 competent, the condition under this subparagraph is

15 that the written notice be provided to a legal guard16 ian or other person with legal responsibility for the

17 care of the individual.

18 ‘‘(F) At the time the service is provided, the

19 health care practitioner is licensed or certified in ac20 cordance with applicable law regarding the provision

21 of the service.

22 ‘‘(3)(A) For purposes of this subsection, the term

23 ‘free clinic’ means a health care facility operated by a non24 profit private entity meeting the following requirements:
30

•S 1904 IS

1 ‘‘(i) The entity does not, in providing health

2 services through the facility, accept reimbursement

3 from any third-party payor (including reimburse4 ment under any insurance policy or health plan, or

5 under any Federal or State health benefits pro6 gram).

7 ‘‘(ii) The entity, in providing health services

8 through the facility, either does not impose charges

9 on the individuals to whom the services are provided,

10 or imposes a charge according to the ability of the

11 individual involved to pay the charge.

12 ‘‘(iii) The entity is licensed or certified in ac13 cordance with applicable law regarding the provision

14 of health services.

15 ‘‘(B) With respect to compliance with the conditions

16 under subparagraph (A), the entity involved may accept

17 voluntary donations for the provision of services.

18 ‘‘(4) For purposes of this subsection, the term ‘quali19 fying health service’ means any medical assistance re20 quired or authorized to be provided in the program under

21 title XIX of the Social Security Act, without regard to

22 whether the medical assistance is included in the plan sub23 mitted under such program by the State in which the

24 health care practitioner involved provides the medical as25 sistance. References in the preceding sentence to such pro-
31

•S 1904 IS

1 gram shall as applicable be considered to be references to

2 any successor to such program.

3 ‘‘(5) Subsection (g) (other than paragraphs (3)

4 through (5)) and subsections (h), (i), and (l) apply to a

5 health care practitioner for purposes of this subsection to

6 the same extent and in the same manner as such sub7 sections apply to an officer, governing board member, em8 ployee, or contractor of an entity described in subsection

9 (g)(4), subject to paragraph (6) and subject to the follow10 ing:

11 ‘‘(A) The first sentence of paragraph (1) ap12 plies in lieu of the first sentence of subsection

13 (g)(1)(A).

14 ‘‘(B) This subsection may not be construed as

15 deeming any free clinic to be an employee of the

16 Public Health Service for purposes of this section.

17 ‘‘(C) With respect to a free clinic, a health care

18 practitioner is not a free clinic health professional

19 unless the free clinic sponsors the health care practi20 tioner. For purposes of this subsection, the free clin21 ic shall be considered to be sponsoring the health

22 care practitioner if—

23 ‘‘(i) with respect to the health care practi24 tioner, the free clinic submits to the Secretary
32

•S 1904 IS

1 an application meeting the requirements of sub2 section (g)(1)(D); and

3 ‘‘(ii) the Secretary, pursuant to subsection

4 (g)(1)(E), determines that the health care prac5 titioner is deemed to be an employee of the

6 Public Health Service.

7 ‘‘(D) In the case of a health care practitioner

8 who is determined by the Secretary pursuant to sub9 section (g)(1)(E) to be a free clinic health profes10 sional, this subsection applies to the health care

11 practitioner (with respect to the free clinic sponsor12 ing the health care practitioner pursuant to subpara13 graph C)) for any cause of action arising from an

14 act or omission of the health care practitioner occur15 ring on or after the date on which the Secretary

16 makes such determination.

17 ‘‘(E) Subsection (g)(1)(F) applies to a health

18 care practitioner for purposes of this subsection only

19 to the extent that, in providing health services to an

20 individual, each of the conditions specified in para21 graph (2) is met.

22 ‘‘(6)(A) For purposes of making payments for judg23 ments against the United States (together with related

24 fees and expenses of witnesses) pursuant to this section

25 arising from the acts or omissions of free clinic health pro-
33

•S 1904 IS

1 fessionals, there is authorized to be appropriated

2 $10,000,000 for each fiscal year.

3 ‘‘(B) The Secretary shall establish a fund for pur4 poses of this subsection. Each fiscal year amounts appro5 priated under subparagraph (A) shall be deposited in such

6 fund.

7 ‘‘(C) Not later than May 1 of each fiscal year, the

8 Attorney General, in consultation with the Secretary, shall

9 submit to the Congress a report providing an estimate of

10 the amount of claims (together with related fees and ex11 penses of witnesses) that, by reason of the acts or omis12 sions of free clinic health professionals, will be paid pursu13 ant to this section during the calendar year that begins

14 in the following fiscal year. Subsection (k)(1)(B) applies

15 to the estimate under the preceding sentence regarding

16 free clinic health professionals to the same extent and in

17 the same manner as such subsection applies to the esti18 mate under such subsection regarding officers, governing

19 board members, employees, and contractors of entities de20 scribed in subsection (g)(4).

21 ‘‘(D) Not later than December 31 of each fiscal year,

22 the Secretary shall transfer from the fund under subpara23 graph (B) to the appropriate accounts in the Treasury an

24 amount equal to the estimate made under subparagraph
34

•S 1904 IS

1 (C) for the calendar year beginning in such fiscal year,

2 subject to the extent of amounts in the fund.

3 ‘‘(7)(A) This subsection takes effect on the date of

4 the enactment of the first appropriations Act that makes

5 an appropriation under paragraph (6)(A), except as pro6 vided in subparagraph (B)(i).

7 ‘‘(B)(i) Effective on the date of the enactment of the

8 Health Insurance Portability and Accountability Act of

9 1996—

10 ‘‘(I) the Secretary may issue regulations for

11 carrying out this subsection, and the Secretary may

12 accept and consider applications submitted pursuant

13 to paragraph (5)(C); and

14 ‘‘(II) reports under paragraph (6)(C) may be

15 submitted to the Congress.

16 ‘‘(ii) For the first fiscal year for which an appropria17 tion is made under subparagraph (A) of paragraph (6),

18 if an estimate under subparagraph (C) of such paragraph

19 has not been made for the calendar year beginning in such

20 fiscal year, the transfer under subparagraph (D) of such

21 paragraph shall be made notwithstanding the lack of the

22 estimate, and the transfer shall be made in an amount

23 equal to the amount of such appropriation.’’.
35

•S 1904 IS

1 SEC. 153. COMMUNITY PARTNERSHIP GRANT PROGRAM.

2 (a) IN GENERAL.—The Attorney General and the

3 Secretary of Health and Human Services shall jointly es4 tablish and carry out a competitive grant program to pro5 vide funding to States and communities to—

6 (1) establish an information network to enhance

7 coordination of matches between—

8 (A) churches, synagogues and other com9 munities of faith, and other community groups;

10 and

11 (B)(i) families receiving aid to families

12 with dependent children under part A of title

13 IV of the Social Security Act (42 U.S.C. 601 et

14 seq.) who voluntarily elect to participate; or

15 (ii) nonviolent criminal offenders who elect

16 to participate, and are directed to such a pro17 gram through the judicial system;

18 (2) hire staff to coordinate matches, recruit

19 churches, enhance coordination between the public

20 welfare system, judicial system, churches, syna21 gogues and other communities of faith, and other

22 community groups; and

23 (3) disseminate information, including training,

24 to Government agencies and interested community

25 groups about programs receiving funding under this

26 Act.
36

•S 1904 IS

1 (b) FUNDING.—

2 (1) IN GENERAL.—A grant under this section

3 shall not exceed $1,000,000 in any fiscal year.

4 (2) SOURCES.—There are authorized to be ap5 propriated not more than $50,000,000, of which—

6 (A) not more than $25,000,000 shall be

7 available from the Violent Crime Reduction

8 Trust Fund; and

9 (B) not more than $25,000,000 shall be

10 available from funds appropriated to the Sec11 retary of Health and Human Services for ad12 ministrative expenses.

13 (c) INFORMATION CLEARINGHOUSES.—Of the

14 amount made available under subsection (b), not more

15 than a total of $1,000,000 shall be available to the Attor16 ney General and Secretary of Health and Human Services

17 for each to establish a national information clearinghouse

18 at the Department of Justice and the Department of

19 Health and Human Services, respectively, to provide infor20 mation and networking to assist States in establishing and

21 carrying out programs under subsection (a).
37

•S 1904 IS

1 TITLE II—COMMUNITY

2 EMPOWERMENT

3 Subtitle A—Education

4 SEC. 201. SHORT TITLE.

5 This subtitle may be cited as the ‘‘Educational Choice

6 and Equity Act of 1995’’.

7 SEC. 202. PURPOSE.

8 The purpose of this subtitle is to determine the ef9 fects on students and schools of providing financial assist10 ance to low-income parents to enable such parents to se11 lect the public or private schools their children will attend.

12 SEC. 203. DEFINITIONS.

13 As used in this subtitle—

14 (1) the term ‘‘choice school’’ means any public

15 or private school, including a private sectarian

16 school or a public charter school, that is involved in

17 a demonstration project assisted under this subtitle;

18 (2) the term ‘‘eligible child’’ means a child in

19 grades 1 through 12 who is eligible for free or re20 duced price lunches under the National School

21 Lunch Act (42 U.S.C. 1751 et seq.);

22 (3) the term ‘‘eligible entity’’ means a public

23 agency, institution, or organization, such as a State,

24 a State or local educational agency, a consortium of

25 public agencies, or a consortium of public and pri-
38

•S 1904 IS

1 vate nonprofit organizations, that can demonstrate,

2 to the satisfaction of the Secretary, its ability to—

3 (A) receive, disburse, and account for Fed4 eral funds; and

5 (B) carry out the activities described in its

6 application under this subtitle;

7 (4) the term ‘‘evaluating agency’’ means any

8 academic institution, consortium of professionals, or

9 private or nonprofit organization, with demonstrated

10 experience in conducting evaluations, that is not an

11 agency or instrumentality of the Federal Govern12 ment;

13 (5) the term ‘‘local educational agency’’ has the

14 meaning given that term in section 14101 of the El15 ementary and Secondary Education Act of 1965 (20

16 U.S.C. 8801);

17 (6) the term ‘‘parent’’ includes a legal guardian

18 or other individual acting in loco parentis;

19 (7) the term ‘‘school’’ means a school that pro20 vides elementary education or secondary education

21 (through grade 12), as determined under State law;

22 and

23 (8) the term ‘‘Secretary’’ means the Secretary

24 of Education.
39

•S 1904 IS

1 SEC. 204. AUTHORIZATION OF APPROPRIATIONS.

2 There are authorized to be appropriated

3 $600,000,000 for fiscal year 1996 and such sums as may

4 be necessary for each of the fiscal years 1997, 1998, 1999,

5 and 2000 to carry out this subtitle.

6 SEC. 205. PROGRAM AUTHORIZED.

7 (a) RESERVATION.—From the amount appropriated

8 pursuant to the authority of section 204 in any fiscal year,

9 the Secretary shall reserve and make available to the

10 Comptroller General of the United States 2 percent for

11 evaluation of the demonstration projects assisted under

12 this subtitle in accordance with section 210A.

13 (b) GRANTS.—

14 (1) IN GENERAL.—From the amount appro15 priated pursuant to the authority of section 204 and

16 not reserved under subsection (a) for any fiscal year,

17 the Secretary shall award grants to eligible entities

18 to enable such entities to carry out at least 100

19 demonstration projects under which low-income par20 ents receive education certificates for the costs of en21 rolling their eligible children in a choice school.

22 (2) AMOUNT.—The Secretary shall award

23 grants under paragraph (1) for fiscal year 1996 in

24 amounts of $5,000,000 or less.

25 (3) CONTINUING ELIGIBILITY.—The Secretary

26 shall continue a demonstration project under this
40

•S 1904 IS

1 subtitle by awarding a grant under paragraph (1) to

2 an eligible entity that received such a grant for a fis3 cal year preceding the fiscal year for which the de4 termination is made, if the Secretary determines

5 that such eligible entity was in compliance with this

6 subtitle for such preceding fiscal year.

7 (c) USE OF GRANTS.—Grants awarded under sub8 section (b) shall be used to pay the costs of—

9 (1) providing education certificates to low-in10 come parents to enable such parents to pay the tui11 tion, the fees, the allowable costs of transportation,

12 if any, and the costs of complying with section

13 209(a)(1), if any, for their eligible children to attend

14 a choice school; and

15 (2) administration of the demonstration project,

16 which shall not exceed 15 percent of the amount re17 ceived under the grant for the first fiscal year for

18 which the eligible entity provides education certifi19 cates under this subtitle or 10 percent of such

20 amount for any subsequent year, including—

21 (A) seeking the involvement of choice

22 schools in the demonstration project;

23 (B) providing information about the dem24 onstration project, and the schools involved in
41

•S 1904 IS

1 the demonstration project, to parents of eligible

2 children;

3 (C) making determinations of eligibility for

4 participation in the demonstration project for

5 eligible children;

6 (D) selecting students to participate in the

7 demonstration project;

8 (E) determining the amount of, and issu9 ing, education certificates;

10 (F) compiling and maintaining such finan11 cial and programmatic records as the Secretary

12 may prescribe; and

13 (G) collecting such information about the

14 effects of the demonstration project as the eval15 uating agency may need to conduct the evalua16 tion described in section 210A.

17 (d) SPECIAL RULE.—Each school participating in a

18 demonstration project under this subtitle shall comply

19 with title VI of the Civil Rights Act of 1964 (42 U.S.C.

20 2000d et seq.) which prohibits discrimination on the basis

21 of race, color, or national origin.

22 SEC. 206. AUTHORIZED PROJECTS; PRIORITY.

23 (a) AUTHORIZED PROJECTS.—The Secretary may

24 award a grant under this subtitle only for a demonstration

25 project that—
42

•S 1904 IS

1 (1) involves at least one local educational agen2 cy that—

3 (A) receives funds under section 1124A of

4 the Elementary and Secondary Education Act

5 of 1965 (20 U.S.C. 6334); and

6 (B) is among the 20 percent of local edu7 cational agencies receiving funds under section

8 1124A of such Act (20 U.S.C. 6334) in the

9 State that have the highest number of children

10 described in section 1124(c) of such Act (20

11 U.S.C. 6333(c)); and

12 (2) includes the involvement of a sufficient

13 number of public and private choice schools, in the

14 judgment of the Secretary, to allow for a valid dem15 onstration project.

16 (b) PRIORITY.—In awarding grants under this sub17 title, the Secretary shall give priority to demonstration

18 projects—

19 (1) in which choice schools offer an enrollment

20 opportunity to the broadest range of eligible chil21 dren;

22 (2) that involve diverse types of choice schools;

23 and

24 (3) that will contribute to the geographic diver25 sity of demonstration projects assisted under this
43

•S 1904 IS

1 subtitle, including awarding grants for demonstra2 tion projects in States that are primarily rural and

3 awarding grants for demonstration projects in States

4 that are primarily urban.

5 SEC. 207. APPLICATIONS.

6 (a) IN GENERAL.—Any eligible entity that wishes to

7 receive a grant under this subtitle shall submit an applica8 tion to the Secretary at such time and in such manner

9 as the Secretary may prescribe.

10 (b) CONTENTS.—Each application described in sub11 section (a) shall contain—

12 (1) information demonstrating the eligibility of

13 the eligible entity for participation in the demonstra14 tion project;

15 (2) with respect to choice schools—

16 (A) a description of the standards used by

17 the eligible entity to determine which public and

18 private schools are within a reasonable commut19 ing distance of eligible children and present a

20 reasonable commuting cost for such eligible

21 children;

22 (B) a description of the types of potential

23 choice schools that will be involved in the dem24 onstration project;
44

•S 1904 IS

1 (C)(i) a description of the procedures used

2 to encourage public and private schools to be

3 involved in the demonstration project; and

4 (ii) a description of how the eligible entity

5 will annually determine the number of spaces

6 available for eligible children in each choice

7 school;

8 (D) an assurance that each choice school

9 will not impose higher standards for admission

10 or participation in its programs and activities

11 for eligible children provided education certifi12 cates under this subtitle than the choice school

13 does for other children;

14 (E) an assurance that each choice school

15 operated, for at least 1 year prior to accepting

16 education certificates under this subtitle, an

17 educational program similar to the educational

18 program for which such choice school will ac19 cept such education certificates;

20 (F) an assurance that the eligible entity

21 will terminate the involvement of any choice

22 school that fails to comply with the conditions

23 of its involvement in the demonstration project;

24 and
45

•S 1904 IS

1 (G) a description of the extent to which

2 choice schools will accept education certificates

3 under this subtitle as full or partial payment

4 for tuition and fees;

5 (3) with respect to the participation in the dem6 onstration project of eligible children—

7 (A) a description of the procedures to be

8 used to make a determination of the eligibility

9 of an eligible child for participation in the dem10 onstration project, which shall include—

11 (i) the procedures used to determine

12 eligibility for free or reduced price lunches

13 under the National School Lunch Act (42

14 U.S.C. 1751 et seq.); or

15 (ii) any other procedure, subject to

16 the Secretary’s approval, that accurately

17 establishes the eligibility of an eligible child

18 for such participation;

19 (B) a description of the procedures to be

20 used to ensure that, in selecting eligible chil21 dren to participate in the demonstration

22 project, the eligible entity will—

23 (i) apply the same criteria to both

24 public and private school eligible children;

25 and
46

•S 1904 IS

1 (ii) give priority to eligible children

2 from the lowest income families;

3 (C) a description of the procedures to be

4 used to ensure maximum choice of schools for

5 participating eligible children, including proce6 dures to be used when—

7 (i) the number of parents provided

8 education certificates under this subtitle

9 who desire to enroll their eligible children

10 in a particular choice school exceeds the

11 number of eligible children that the choice

12 school will accept; and

13 (ii) grant funds and funds from local

14 sources are insufficient to support the total

15 cost of choices made by parents with edu16 cation certificates under this subtitle; and

17 (D) a description of the procedures to be

18 used to ensure compliance with section

19 209(a)(1), which may include—

20 (i) the direct provision of services by

21 a local educational agency; and

22 (ii) arrangements made by a local

23 educational agency with other service pro24 viders;
47

•S 1904 IS

1 (4) with respect to the operation of the dem2 onstration project—

3 (A) a description of the geographic area to

4 be served;

5 (B) a timetable for carrying out the dem6 onstration project;

7 (C) a description of the procedures to be

8 used for the issuance and redemption of edu9 cation certificates under this subtitle;

10 (D) a description of the procedures by

11 which a choice school will make a pro rata re12 fund of the education certificate under this sub13 title for any participating eligible child who

14 withdraws from the school for any reason, be15 fore completing 75 percent of the school attend16 ance period for which the education certificate

17 was issued;

18 (E) a description of the procedures to be

19 used to provide the parental notification de20 scribed in section 210;

21 (F) an assurance that the eligible entity

22 will place all funds received under this subtitle

23 into a separate account, and that no other

24 funds will be placed in such account;
48

•S 1904 IS

1 (G) an assurance that the eligible entity

2 will provide the Secretary periodic reports on

3 the status of such funds;

4 (H) an assurance that the eligible entity

5 will cooperate with the Comptroller General of

6 the United States and the evaluating agency in

7 carrying out the evaluations described in section

8 210A; and

9 (I) an assurance that the eligible entity

10 will—

11 (i) maintain such records as the Sec12 retary may require; and

13 (ii) comply with reasonable requests

14 from the Secretary for information; and

15 (5) such other assurances and information as

16 the Secretary may require.

17 SEC. 208. EDUCATION CERTIFICATES.

18 (a) EDUCATION CERTIFICATES.—

19 (1) AMOUNT.—The amount of an eligible

20 child’s education certificate under this subtitle shall

21 be determined by the eligible entity, but shall be an

22 amount that provides to the recipient of the edu23 cation certificate the maximum degree of choice in

24 selecting the choice school the eligible child will at25 tend.
49

•S 1904 IS

1 (2) CONSIDERATIONS.—

2 (A) IN GENERAL.—Subject to such regula3 tions as the Secretary shall prescribe, in deter4 mining the amount of an education certificate

5 under this subtitle an eligible entity shall con6 sider—

7 (i) the additional reasonable costs of

8 transportation directly attributable to the

9 eligible child’s participation in the dem10 onstration project; and

11 (ii) the cost of complying with section

12 209(a)(1).

13 (B) SCHOOLS CHARGING TUITION.—If an

14 eligible child participating in a demonstration

15 project under this subtitle was attending a pub16 lic or private school that charged tuition for the

17 year preceding the first year of such participa18 tion, then in determining the amount of an edu19 cation certificate for such eligible child under

20 this subtitle the eligible entity shall consider—

21 (i) the tuition charged by such school

22 for such eligible child in such preceding

23 year; and
50

•S 1904 IS

1 (ii) the amount of the education cer2 tificates under this subtitle that are pro3 vided to other eligible children.

4 (3) SPECIAL RULE.—An eligible entity may pro5 vide an education certificate under this subtitle to

6 the parent of an eligible child who chooses to attend

7 a school that does not charge tuition or fees, to pay

8 the additional reasonable costs of transportation di9 rectly attributable to the eligible child’s participation

10 in the demonstration project or the cost of comply11 ing with section 209(a)(1).

12 (b) ADJUSTMENT.—The amount of the education cer13 tificate for a fiscal year may be adjusted in the second

14 and third years of an eligible child’s participation in a

15 demonstration project under this subtitle to reflect any in16 crease or decrease in the tuition, fees, or transportation

17 costs directly attributable to that eligible child’s continued

18 attendance at a choice school, but shall not be increased

19 for this purpose by more than 10 percent of the amount

20 of the education certificate for the fiscal year preceding

21 the fiscal year for which the determination is made. The

22 amount of the education certificate may also be adjusted

23 in any fiscal year to comply with section 209(a)(1).

24 (c) MAXIMUM AMOUNT.—Notwithstanding any other

25 provision of this section, the amount of an eligible child’s
51

•S 1904 IS

1 education certificate shall not exceed the per pupil expend2 iture for elementary or secondary education, as appro3 priate, by the local educational agency in which the public

4 school to which the eligible child would normally be as5 signed is located for the fiscal year preceding the fiscal

6 year for which the determination is made.

7 (d) INCOME.—An education certificate under this

8 subtitle, and funds provided under the education certifi9 cate, shall not be treated as income of the parents for pur10 poses of Federal tax laws or for determining eligibility for

11 any other Federal program.

12 SEC. 209. EFFECT ON OTHER PROGRAMS; USE OF SCHOOL

13 LUNCH DATA; CONSTRUCTION PROVISIONS.

14 (a) EFFECT ON OTHER PROGRAMS.—

15 (1) IN GENERAL.—An eligible child participat16 ing in a demonstration project under this subtitle,

17 who, in the absence of such a demonstration project,

18 would have received services under part A of title I

19 of the Elementary and Secondary Education Act of

20 1965 (20 U.S.C. 6311 et seq.) shall be provided

21 such services.

22 (2) PART B OF THE INDIVIDUALS WITH DIS23 ABILITIES EDUCATION ACT.—Nothing in this sub24 title shall be construed to affect the requirements of
52

•S 1904 IS

1 part B of the Individuals with Disabilities Education

2 Act (20 U.S.C. 1411 et seq.).

3 (3) COUNTING OF ELIGIBLE CHILDREN.—Not4 withstanding any other provision of law, any local

5 educational agency participating in a demonstration

6 project under this subtitle may count eligible chil7 dren who, in the absence of such a demonstration

8 project, would attend the schools of such agency, for

9 purposes of receiving funds under any program ad10 ministered by the Secretary.

11 (b) USE OF SCHOOL LUNCH DATA.—Notwithstand12 ing section 9 of the National School Lunch Act (42 U.S.C.

13 1751 et seq.), an eligible entity receiving a grant under

14 this subtitle may use information collected for the purpose

15 of determining eligibility for free or reduced price lunches

16 to determine an eligible child’s eligibility to participate in

17 a demonstration project under this subtitle and, if needed,

18 to rank families by income, in accordance with section

19 207(b)(3)(B)(ii). All such information shall otherwise re20 main confidential, and information pertaining to income

21 may be disclosed only to persons who need that informa22 tion for the purposes of a demonstration project under this

23 subtitle.

24 (c) CONSTRUCTION PROVISIONS.—
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1 (1) OTHER INSTITUTIONS.—Nothing in this

2 subtitle shall be construed to supersede or modify

3 any provision of a State constitution or State law

4 that prohibits the expenditure of public funds in or

5 by religious or other private institutions, except that

6 no provision of a State constitution or State law

7 shall be construed or applied to prohibit—

8 (A) any eligible entity receiving funds

9 under this subtitle from using such funds to

10 pay the administrative costs of a demonstration

11 project under this subtitle; or

12 (B) the expenditure in or by religious or

13 other private institutions of any Federal funds

14 provided under this subtitle.

15 (2) DESEGREGATION PLANS.—Nothing in this

16 subtitle shall be construed to interfere with any de17 segregation plans that involve school attendance

18 areas affected by this subtitle.

19 (3) PROHIBITION OF FEDERAL DIRECTOR, SU20 PERVISION OR CONTROL.—Nothing in this subtitle

21 shall be construed to authorize the Secretary or any

22 employee, officer, or agency of the Department of

23 Education to exercise any direction, supervision, or

24 control over the curriculum, program of instruction,

25 or personnel decisions of any educational institution
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•S 1904 IS

1 or school participating in a demonstration project

2 assisted under this subtitle.

3 SEC. 210. PARENTAL NOTIFICATION.

4 Each eligible entity receiving a grant under this sub5 title shall provide timely notice of the demonstration

6 project to parents of eligible children residing in the area

7 to be served by the demonstration project. At a minimum,

8 such notice shall—

9 (1) describe the demonstration project;

10 (2) describe the eligibility requirements for par11 ticipation in the demonstration project;

12 (3) describe the information needed to make a

13 determination of eligibility for participation in the

14 demonstration project for an eligible child;

15 (4) describe the selection procedures to be used

16 if the number of eligible children seeking to partici17 pate in the demonstration project exceeds the num18 ber that can be accommodated in the demonstration

19 project;

20 (5) provide information about each choice

21 school participating in the demonstration project, in22 cluding information about any admission require23 ments or criteria for each choice school participating

24 in the demonstration project; and
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1 (6) include the schedule for parents to apply for

2 their eligible children to participate in the dem3 onstration project.

4 SEC. 210A. EVALUATION.

5 (a) ANNUAL EVALUATION.—

6 (1) CONTRACT.—The Comptroller General of

7 the United States shall enter into a contract, with

8 an evaluating agency that has demonstrated experi9 ence in conducting evaluations, for the conduct of an

10 ongoing rigorous evaluation of the demonstration

11 projects under this subtitle.

12 (2) ANNUAL EVALUATION REQUIREMENT.—The

13 contract described in paragraph (1) shall require the

14 evaluating agency entering into such contract to an15 nually evaluate each demonstration project under

16 this subtitle in accordance with the evaluation cri17 teria described in subsection (b).

18 (3) TRANSMISSION.—The contract described in

19 paragraph (1) shall require the evaluating agency

20 entering into such contract to transmit to the Comp21 troller General of the United States—

22 (A) the findings of each annual evaluation

23 under paragraph (1); and

24 (B) a copy of each report received pursu25 ant to section 210B(a) for the applicable year.
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1 (b) EVALUATION CRITERIA.—The Comptroller Gen2 eral of the United States, in consultation with the Sec3 retary, shall establish minimum criteria for evaluating the

4 demonstration projects under this subtitle. Such criteria

5 shall provide for—

6 (1) a description of the implementation of each

7 demonstration project under this subtitle and the

8 demonstration project’s effects on all participants,

9 schools, and communities in the demonstration

10 project area, with particular attention given to the

11 effect of parent participation in the life of the school

12 and the level of parental satisfaction with the dem13 onstration project; and

14 (2) a comparison of the educational achieve15 ment of all students in the demonstration project

16 area, including a comparison of—

17 (A) students receiving education certifi18 cates under this subtitle; and

19 (B) students not receiving education cer20 tificates under this subtitle.

21 SEC. 210B. REPORTS.

22 (a) REPORT BY GRANT RECIPIENT.—Each eligible

23 entity receiving a grant under this subtitle shall submit

24 to the evaluating agency entering into the contract under

25 section 210A(a)(1) an annual report regarding the dem-
57

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1 onstration project under this subtitle. Each such report

2 shall be submitted at such time, in such manner, and ac3 companied by such information, as such evaluating agency

4 may require.

5 (b) REPORTS BY COMPTROLLER GENERAL.—

6 (1) ANNUAL REPORTS.—The Comptroller Gen7 eral of the United States shall report annually to the

8 Congress on the findings of the annual evaluation

9 under section 210A(a)(2) of each demonstration

10 project under this subtitle. Each such report shall

11 contain a copy of—

12 (A) the annual evaluation under section

13 210A(a)(2) of each demonstration project under

14 this subtitle; and

15 (B) each report received under subsection

16 (a) for the applicable year.

17 (2) FINAL REPORT.—The Comptroller General

18 shall submit a final report to the Congress within 6

19 months after the conclusion of the demonstration

20 projects under this subtitle that summarizes the

21 findings of the annual evaluations conducted pursu22 ant to section 210A(a)(2).
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1 Subtitle B—Restitution and

2 Responsibility

3 SEC. 211. RESTITUTION AND RESPONSIBILITY GRANT PRO4 GRAM.

5 (a) IN GENERAL.—The Attorney General is author6 ized to provide grants to States to enable the States to—

7 (1) collect data on victim restitution over a

8 specified period of time as determined by the Attor9 ney General;

10 (2) create or expand automated data systems to

11 track restitution payments;

12 (3) make improvements in the manner in which

13 restitution is ordered and collected; and

14 (4) enhance and expand methods of enforce15 ment of restitution orders.

16 (b) ELIGIBILITY.—To be eligible to receive a grant

17 under this section, a State shall—

18 (1) submit an application to the Attorney Gen19 eral, in such form as the Attorney General shall re20 quire, that meets the requirements of subsection (c);

21 and

22 (2) certify that the State has a victim advocacy

23 program that—

24 (A) provides assistance to victims of crime

25 throughout the judicial process; and
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1 (B) provides courts with a victim impact

2 statement prior to sentencing.

3 (c) APPLICATION.—An application meets the require4 ments of this subsection if it includes—

5 (1) a description of the State’s victim advocacy

6 program;

7 (2) a description of the method by which the

8 State compiles or will compile data on restitution,

9 including information on—

10 (A) restitution amounts ordered and col11 lected;

12 (B) collection rates for incarcerated offend13 ers and offenders who are on probation;

14 (C) collection rates for offenders commit15 ting felonies and for those committing mis16 demeanors; and

17 (D) rates of partial and full payment rates

18 of collection;

19 (3) documentation of a State’s current prob20 lems in ordering, collecting, and enforcing restitu21 tion;

22 (4) a description of State laws and practices re23 lated to restitution;
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1 (5) a description of administrative and legisla2 tive options to improve ordering, collecting, and en3 forcing restitution;

4 (6) a description of the State’s proposal to cre5 ate or expand an automated data processing system

6 to track restitution payments;

7 (7) a description of the State’s plan to improve

8 the ordering of restitution, including—

9 (A) provisions to ensure that courts order

10 restitution whenever a victim suffers economic

11 loss as a result of unlawful conduct by a de12 fendant;

13 (B) provisions to ensure that restitution is

14 ordered in the full amount of the victim’s loss,

15 as determined by the court;

16 (C) the prioritization of restitution in the

17 ordering and disbursing of fees; and

18 (D) such other provisions consistent with

19 the purposes of this section;

20 (8) a description of how the State will improve

21 collection of restitution payments, including—

22 (A) the establishment of a central account23 ing, billing, and collection system that tracks

24 the offender’s obligations and status in meeting

25 those obligations;
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1 (B) a process by which information about

2 an offender’s restitution payments is made

3 available to probation officials;

4 (C) adopting methods to ensure payments

5 such as automatic docketing, billing, wage with6 holding, privatization of collection, withholding

7 State grant privileges, or seizure of State in8 come tax refunds; and

9 (D) other provisions consistent with the

10 purposes of this section;

11 (9) a description of how the State will enforce

12 restitution payments, including—

13 (A) assigning an agency responsible for the

14 enforcement of a restitution order;

15 (B) adopting policies to increase the inten16 sity of sanctions if an offender defaults on pay17 ments, including—

18 (i) revoking a term of probation or

19 parole;

20 (ii) modifying the terms or conditions

21 of probation or parole;

22 (iii) holding a defendant in contempt

23 of court;

24 (iv) entering a restraining order or in25 junction; or
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•S 1904 IS

1 (v) ordering the sale of property of

2 the defendant;

3 (C) adopting procedures to ensure restitu4 tion orders are entered as civil judgments upon

5 entry to allow a victim to execute judgment if

6 restitution payments are delinquent; and

7 (D) such other provisions consistent with

8 the purposes of this section; and

9 (10) the establishment of a community restitu10 tion fund administered by a State agency into which

11 restitution payments are made by an offender (in

12 addition to victim restitution payments) and can be

13 used to pay indigent offenders for performing public

14 service work.

15 (d) WAIVER.—The Attorney General may waive the

16 requirements under subsection (c) for a State that dem17 onstrates sufficient cause for lack of compliance.

18 (e) GRANT PERIOD.—A grant under this section shall

19 be awarded for a period of not more than 5 years.

20 (f) REPORT.—Each State receiving a grant under

21 this section shall submit an annual report to the Attorney

22 General that includes an evaluation of the progress of the

23 projects funded through the grant, an accounting of ex24 penditures, and such other provisions as may be required

25 by the Attorney General. The Attorney General shall issue
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1 an annual report to Congress that includes the informa2 tion submitted by States under this subsection.

3 (g) EVALUATION.—

4 (1) FINAL EVALUATION.—Within a month after

5 the award of the first grant made under this section,

6 the Attorney General shall contract with an inde7 pendent organization to do a final evaluation of the

8 projects funded by this section at the end of 5 years.

9 (2) INTERIM EVALUATION.—The Attorney Gen10 eral shall conduct an interim evaluation of the

11 projects funded by this section 3 years after the first

12 grant made under this section.

13 (3) CONTENT OF REPORTS.—The reports re14 quired by paragraphs (1) and (2) shall include the

15 following information:

16 (A) An evaluation of data collection ef17 forts.

18 (B) An assessment of whether ordering of

19 restitution increased and whether prioritizing

20 restitution in fees collected improved restitution

21 payments.

22 (C) An analysis of whether the project was

23 successful in improving significantly restitution

24 collection rates.
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1 (D) An evaluation of most effective meth2 ods in improving restitution collection and in

3 enforcing restitution payments.

4 (E) An analysis of how effective automated

5 data systems were in increasing restitution col6 lection.

7 (F) An analysis of States’ use of the com8 munity restitution fund and its effectiveness in

9 ensuring indigent offenders pay restitution.

10 (h) AUTHORIZATION OF APPROPRIATIONS.—There

11 are authorized to be appropriated $10,000,000 in each of

12 fiscal years 1997, 1998, 1999, 2000, and 2001 to carry

13 out this section

14 Subtitle C—Independence

15 SEC. 221. FINDINGS.

16 The Congress finds that—

17 (1) traditional welfare programs in the United

18 States have provided millions of low-income persons

19 with critically needed food, health, and cash benefits,

20 and such programs should be improved and contin21 ued;

22 (2) while such programs have sustained millions

23 of low-income persons, too rarely have such pro24 grams been successful in promoting and supporting

25 the transition to economic self-sufficiency;
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1 (3) millions of Americans continue to live in

2 poverty and continue to receive public assistance;

3 (4) in addition to the social costs of poverty,

4 the economic costs to the Federal Government to

5 provide basic necessities to the poor exceeds

6 $120,000,000,000 each year;

7 (5) poverty is a loss of human resources and an

8 assault on human dignity;

9 (6) poverty rates remain high and welfare de10 pendency continues, in part, because welfare theory

11 has taken for granted that a certain level of income

12 or consumption is necessary for one’s economic well13 being when, in fact, very few people manage to

14 spend or consume their way out of poverty;

15 (7) economic well-being does not come solely

16 from income, spending, and consumption, but also

17 requires savings, investment, and accumulation of

18 assets, since assets can improve economic stability,

19 connect people with a viable and hopeful future,

20 stimulate development of human and other capital,

21 enable people to focus and specialize, yield personal,

22 social, and political dividends, and enhance the wel23 fare of offspring;

24 (8) income-based welfare policy should be com25 plemented with asset-based welfare policy, because
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1 while income-based policies ensure that present con2 sumption needs (including food, child care, rent,

3 clothing, and health care) are met, asset-based poli4 cies provide the means to achieve economic self-suffi5 ciency and, accordingly, to leave public assistance;

6 (9) there is reason to believe that the financial

7 returns, including increased income, tax revenue,

8 and decreased welfare cash assistance, of individual

9 development accounts will far exceed the cost of the

10 investment;

11 (10) the Federal Government spends more than

12 $160,000,000,000 each year to provide middle- and

13 upper-income persons with incentives to accumulate

14 savings and assets (including tax subsidies for home

15 equity accumulation and retirement pension ac16 counts), but such benefits are beyond the reach of

17 most low-income persons;

18 (11) under current welfare policies, poor fami19 lies must deplete most of their assets before qualify20 ing for public assistance;

21 (12) the Federal Government should develop

22 policies that promote higher rates of personal sav23 ings and net private domestic investment, both of

24 which fall behind the levels attained in other highly

25 developed industrial nations; and
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1 (13) the Federal Government should undertake

2 an asset-based welfare policy demonstration project

3 to determine the social, civic, psychological, and eco4 nomic effects of asset accumulation opportunities for

5 low-income persons, families, and communities, and

6 to determine if such a policy could provide a new

7 foundation for antipoverty policies and programs in

8 the United States.

9 SEC. 222. INDIVIDUAL DEVELOPMENT ACCOUNT DEM10 ONSTRATION PROJECTS.

11 (a) PURPOSE.—The purpose of this section is to pro12 vide for the establishment of demonstration projects de13 signed to determine—

14 (1) the social, civic, psychological, and economic

15 effects of providing to individuals and families with

16 limited means an incentive to accumulate assets;

17 (2) the extent to which an asset-based welfare

18 policy that promotes saving for education, home19 ownership, and microenterprise may be used to en20 able individuals and families with low income to

21 achieve economic self-sufficiency; and

22 (3) the extent to which an asset-based welfare

23 policy improves the community in which participat24 ing individuals and families live.

25 (b) APPLICATIONS.—
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1 (1) SUBMISSION.—

2 (A) IN GENERAL.—Not later than 12

3 months after the date of the enactment of this

4 Act, a qualified entity may submit to the Sec5 retary an application to conduct a demonstra6 tion project under this section.

7 (B) QUALIFIED ENTITY.—For purposes of

8 this subtitle, the term ‘‘qualified entity’’ means

9 either—

10 (i) a not-for-profit organization de11 scribed in section 501(c)(3) of the Internal

12 Revenue Code of 1986 and exempt from

13 taxation under section 501(a) of such

14 Code; or

15 (ii) a State or local government agen16 cy submitting an application under such

17 subparagraph jointly with an organization

18 described in clause (i).

19 (2) CRITERIA.—In considering whether to ap20 prove any application to conduct a demonstration

21 project under this section, the Secretary shall assess

22 the following:

23 (A) SUFFICIENCY OF PROJECT.—The de24 gree to which the project described in the appli25 cation appears likely to aid project participants
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•S 1904 IS

1 in achieving economic self-sufficiency through

2 activities requiring qualified expenses (as de3 fined in section 529(c)(1) of the Internal Reve4 nue Code of 1986, as added by section 223 of

5 this Act). In making such assessment, the Sec6 retary shall consider the overall quality of

7 project activities in making any particular kind

8 or combination of qualified expenses (as so de9 fined) to be an essential feature of any project.

10 (B) ADMINISTRATIVE ABILITY.—The abil11 ity of the applicant to responsibly administer

12 the project.

13 (C) ABILITY TO ASSIST PARTICIPANTS.—

14 The ability of the applicant to assist project

15 participants to achieve economic self-sufficiency

16 through the development of assets.

17 (D) COMMITMENT OF NON-FEDERAL

18 FUNDS.—The aggregate amount of direct funds

19 from non-Federal public sector and private

20 sources that are formally committed to the

21 project.

22 (E) ADEQUACY OF PLAN FOR PROVIDING

23 INFORMATION FOR EVALUATION.—The ade24 quacy of the plan for providing information rel25 evant to an evaluation of the project.
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1 (F) OTHER FACTORS.—Such other factors

2 as the Secretary may specify.

3 (3) PREFERENCES.—In considering an applica4 tion to conduct a demonstration project under this

5 section, the Secretary shall give preference to any

6 application that—

7 (A) demonstrates the willingness and abil8 ity to select individuals described in subsection

9 (e) who are predominantly from households in

10 which a child (or children) is living with the

11 child’s biological or adoptive mother or father,

12 legal guardian, or a responsible adult relative

13 with whom the child regularly resides;

14 (B) provides a commitment of non-Federal

15 funds with a proportionately greater amount of

16 funds committed by private sector sources; and

17 (C) targets such individuals residing within

18 1 or more relatively well-defined communities or

19 neighborhoods that experience low rates of in20 come or employment.

21 (4) APPROVAL.—Not later than 15 months

22 after the date of the enactment of this Act, the Sec23 retary shall, on a competitive basis, approve such ap24 plications to conduct demonstration projects under

25 this section as the Secretary deems appropriate, tak-
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1 ing into account the assessments required by para2 graphs (2) and (3). The Secretary is encouraged to

3 ensure that the applications that are approved in4 volve a wide range of communities (both rural and

5 urban) and diverse populations.

6 (c) DEMONSTRATION AUTHORITY; ANNUAL

7 GRANTS.—

8 (1) DEMONSTRATION AUTHORITY.—If the Sec9 retary approves an application to conduct a dem10 onstration project under this section, the Secretary

11 shall, not later than 16 months after the date of the

12 enactment of this Act, authorize the applicant to

13 conduct the project for 4 project years in accordance

14 with the approved application and this section.

15 (2) GRANT AUTHORITY.—For each project year

16 of a demonstration project conducted under this sec17 tion, the Secretary shall make a grant to the quali18 fied entity authorized to conduct the project on the

19 first day of the project year in an amount not to ex20 ceed the greater of—

21 (A) the aggregate amount of funds com22 mitted by non-Federal sources; or

23 (B) $1,000,000.

24 (3) LIMITATION ON GRANT AMOUNTS PER

25 PROJECT.—The amount of each grant for a project
72

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1 approved under this section shall not exceed

2 $10,000,000.

3 (d) RESERVE FUND.—

4 (1) ESTABLISHMENT.—Each qualified entity

5 grantee under this section shall establish a Reserve

6 Fund which shall be maintained in accordance with

7 this subsection.

8 (2) AMOUNTS IN RESERVE FUND.—

9 (A) IN GENERAL.—As soon after receipt as

10 is practicable, a qualified entity grantee shall

11 deposit in the Reserve Fund established under

12 paragraph (1)—

13 (i) all funds provided to the qualified

14 entity grantee by any public or private

15 source in connection with the demonstra16 tion project; and

17 (ii) the proceeds from any investment

18 made under paragraph (3)(B).

19 (B) INDIVIDUAL DEVELOPMENT ACCOUNT

20 PENALTIES.—

21 (i) PENALTY AMOUNTS AUTHORIZED

22 TO BE APPROPRIATED FOR PAYMENT TO

23 THE RESERVE FUND.—With respect to the

24 Reserve Fund established by a qualified

25 entity grantee that provides financial as-
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1 sistance under subsection (g) to any indi2 vidual who pays, or from whose individual

3 development account is paid, a penalty

4 amount, there is hereby appropriated to

5 the Reserve Fund, without fiscal year limi6 tation, an amount equal to such penalty

7 amount.

8 (ii) PAYMENT TO RESERVE FUND OF

9 PENALTY AMOUNTS APPROPRIATED

10 THEREFORE.—The Secretary shall make

11 quarterly estimated payments to the Re12 serve Fund of any penalty amount appro13 priated pursuant to clause (i).

14 (C) UNIFORM ACCOUNTING REGULA15 TIONS.—The Secretary shall prescribe regula16 tions with respect to accounting for amounts in

17 Reserve Funds.

18 (3) USE OF RESERVE FUND.—

19 (A) IN GENERAL.—A qualified entity

20 grantee shall use the amounts in the Reserve

21 Fund established under paragraph (1) to—

22 (i) assist participants in the dem23 onstration project in obtaining the skills

24 and information necessary to achieve eco-
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1 nomic self-sufficiency through activities re2 quiring qualified expenses (as so defined);

3 (ii) provide financial assistance in ac4 cordance with subsection (g) to individuals

5 selected by the qualified entity grantee to

6 participate in the project;

7 (iii) administer the project; and

8 (iv) provide the research organization

9 evaluating the project under subsection (k)

10 with such information with respect to the

11 project as may be required for the evalua12 tion.

13 (B) AUTHORITY TO INVEST FUNDS.—

14 (i) GUIDELINES.—The Secretary shall

15 establish guidelines for investing amounts

16 in Reserve Funds in a manner that pro17 vides high liquidity and low risk.

18 (ii) INVESTMENT.—A qualified entity

19 grantee shall invest the amounts in its Re20 serve Fund that are not immediately need21 ed to carry out the provisions of subpara22 graph (A), in accordance with guidelines

23 established under clause (i).

24 (C) LIMITATION ON USES.—Not more than

25 7.5 percent of the amounts provided to a quali-
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1 fied entity grantee under subsection (c)(2) shall

2 be used by the qualified entity grantee for the

3 purposes described in clauses (i), (iii), and (iv)

4 of paragraph (3)(A), except that if 2 or more

5 qualified entities are jointly administering a

6 project, no qualified entity grantee shall use

7 more than its proportional share for such pur8 poses.

9 (4) UNUSED FEDERAL GRANT FUNDS TRANS10 FERRED TO THE SECRETARY WHEN PROJECT TERMI11 NATES.—Notwithstanding paragraph (3), upon the

12 termination of any demonstration project authorized

13 under this section, the qualified entity grantee con14 ducting the project shall transfer to the Secretary an

15 amount equal to—

16 (A) the amounts in its Reserve Fund at

17 time of the termination; multiplied by

18 (B) a percentage equal to—

19 (i) the aggregate amount of grants

20 made to the qualified entity grantee under

21 subsection (c)(2); divided by

22 (ii) the aggregate amount of all mon23 eys provided to the qualified entity grantee

24 by all sources to conduct the project.

25 (e) ELIGIBILITY FOR ASSISTANCE.—
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1 (1) IN GENERAL.—Any individual who is a

2 member of a household that meets the following re3 quirements shall be eligible for assistance under a

4 demonstration project conducted under this section:

5 (A) INCOME TEST.—The adjusted gross in6 come of the household did not exceed the in7 come limits established under section 32(b)(2)

8 of the Internal Revenue Code of 1986.

9 (B) NET WORTH TEST.—

10 (i) IN GENERAL.—The net worth of

11 the household, as of the close of the cal12 endar year preceding the determination of

13 eligibility, does not exceed $20,000.

14 (ii) DETERMINATION OF NET

15 WORTH.—For purposes of clause (i), the

16 net worth of a household is the amount

17 equal to—

18 (I) the aggregate market value of

19 all assets that are owned in whole or

20 in part by any member of the house21 hold, minus

22 (II) the obligations or debts of

23 any member of the household.

24 (2) INDIVIDUALS UNABLE TO COMPLETE THE

25 PROJECT.—The Secretary shall establish such regu-
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1 lations as are necessary, including prohibiting eligi2 bility for further assistance under a demonstration

3 project conducted under this section, to ensure com4 pliance with this section if an individual participat5 ing in the demonstration project moves from the

6 community in which the project is conducted or is

7 otherwise unable to continue participating in the

8 project.

9 (f) SELECTION OF INDIVIDUALS TO RECEIVE AS10 SISTANCE.—From among the individuals eligible for as11 sistance under a demonstration project conducted under

12 this section, each qualified entity grantee shall select the

13 individuals—

14 (1) whom the qualified entity grantee deems to

15 be best suited to receive such assistance; and

16 (2) to whom the qualified entity grantee will

17 provide financial assistance in accordance with sub18 section (g).

19 (g) PROVISION OF FINANCIAL ASSISTANCE.—

20 (1) IN GENERAL.—Not less than once a month

21 during each project year, each qualified entity grant22 ee under this section shall deposit in the individual

23 development account of each individual participating

24 in the project an amount—
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1 (A) from the grant made under subsection

2 (c)(2), equal to the amount of earned income

3 (as defined in section 911(d)(2) of the Internal

4 Revenue Code of 1986) deposited during the

5 month by the individual in the individual’s de6 velopment account, and

7 (B) from the non-Federal funds described

8 in subsection (b)(2)(D), equal to the amount

9 described in subparagraph (A).

10 (2) LIMITATION ON FINANCIAL ASSISTANCE TO

11 INDIVIDUAL.—Not more than $2,000 from a grant

12 made under subsection (c)(2) shall be provided to

13 any 1 individual.

14 (3) LIMITATION ON FINANCIAL ASSISTANCE TO

15 HOUSEHOLD.—Not more than $4,000 from a grant

16 made under subsection (c)(2) shall be provided to

17 any 1 household.

18 (4) WITHDRAWAL OF FUNDS.—The Secretary

19 shall establish such regulations as may be necessary

20 to ensure that funds held in an individual develop21 ment account are not withdrawn except for 1 or

22 more of the qualified expenses specified in section

23 529(c)(1) of the Internal Revenue Code of 1986 (as

24 added by section 223 of this Act). Such regulations

25 shall include a requirement that a responsible official
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•S 1904 IS

1 of the qualified entity grantee conducting a project

2 approve such withdrawal in writing.

3 (h) LOCAL CONTROL OVER DEMONSTRATION

4 PROJECTS.—Each qualified entity grantee under this sec5 tion shall, subject to the provisions of subsection (j), have

6 sole authority over the administration of the project. The

7 Secretary may prescribe only such regulations with respect

8 to demonstration projects under this section as are nec9 essary to ensure compliance with the approved applica10 tions and this section.

11 (i) SEMIANNUAL PROGRESS REPORTS.—

12 (1) IN GENERAL.—Each qualified entity grant13 ee under this section shall prepare semiannual re14 ports on the progress of the project. Each report

15 shall specify for the semiannual period covered by

16 the report the following information:

17 (A) The number of individuals making a

18 deposit into an individual development account.

19 (B) Information on the amounts in the Re20 serve Fund established with respect to the

21 project.

22 (C) The amounts deposited in the individ23 ual development accounts.
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1 (D) The amounts withdrawn from the indi2 vidual development accounts and the purposes

3 for which such amounts were withdrawn.

4 (E) The balances remaining in the individ5 ual development accounts.

6 (F) Such other information as the Sec7 retary may require to evaluate the project.

8 (2) SUBMISSION OF REPORTS.—The qualified

9 entity grantee shall submit each report required to

10 be prepared under paragraph (1) to—

11 (A) the Secretary; and

12 (B) the Treasurer (or equivalent official)

13 of the State in which the project is conducted,

14 if the State or local government committed

15 funds to the demonstration project.

16 (3) TIMING.—The first report required by para17 graph (1) shall be submitted at the end of the 7-

18 month period beginning on the date the Secretary

19 authorized the qualified entity grantee to conduct

20 the demonstration project, and subsequent reports

21 shall be submitted every 6 months thereafter, until

22 the conclusion of the project.

23 (j) SANCTIONS.—

24 (1) AUTHORITY TO TERMINATE DEMONSTRA25 TION PROJECT.—If the Secretary determines that a
81

•S 1904 IS

1 qualified entity grantee under this section is not op2 erating the project in accordance with the grantee’s

3 application or this section (and has not implemented

4 any corrective recommendations directed by the Sec5 retary), the Secretary shall terminate such grantee’s

6 authority to conduct the project.

7 (2) ACTIONS REQUIRED UPON TERMINATION.—

8 If the Secretary terminates the authority to conduct

9 a demonstration project, the Secretary—

10 (A) shall suspend the project;

11 (B) shall take control of the Reserve Fund

12 established pursuant to subsection (d);

13 (C) shall make every effort to identify an14 other qualified entity willing and able to con15 duct the project in accordance with the ap16 proved application (or, as modified, if necessary

17 to incorporate the recommendations) and this

18 section;

19 (D) shall, if the Secretary identifies such

20 an entity—

21 (i) authorize the entity to conduct the

22 project in accordance with the approved

23 application (or, as modified, if necessary,

24 to incorporate the recommendations) and

25 this section;
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•S 1904 IS

1 (ii) transfer to the entity control over

2 the Reserve Fund established pursuant to

3 subsection (d); and

4 (iii) consider, for purposes of this sec5 tion—

6 (I) such other entity to be the

7 qualified entity originally authorized

8 to conduct the project; and

9 (II) the date of such authoriza10 tion to be the date of the original au11 thorization; and

12 (E) if, by the end of the 1-year period be13 ginning on the date of the termination, the Sec14 retary has not found such a qualified entity,

15 shall—

16 (i) terminate the project; and

17 (ii) from the amount remaining in the

18 Reserve Fund established as part of the

19 project, remit to each source that provided

20 funds under subsection (b)(2)(D) to the

21 entity originally authorized to conduct the

22 project, an amount that bears the same

23 ratio to the amount so remaining as the

24 amount provided by the source under sub25 section (b)(2)(D) bears to the amount pro-
83

•S 1904 IS

1 vided by all such sources under subsection

2 (b)(2)(D).

3 (k) EVALUATIONS.—

4 (1) IN GENERAL.—Not later than 16 months

5 after the date of the enactment of this Act, the Sec6 retary shall enter into a contract with an independ7 ent research organization to evaluate, individually

8 and as a group, all qualified entities and sources

9 participating in the demonstration projects con10 ducted under this section.

11 (2) FACTORS TO EVALUATE.—In evaluating any

12 demonstration project conducted under this section,

13 the research organization shall address the following

14 factors:

15 (A) The savings account characteristics

16 (such as threshold amounts and match rates)

17 required to stimulate participation in the dem18 onstration project, and how such characteristics

19 vary among different populations or commu20 nities.

21 (B) What service configurations of the

22 qualified entity grantee (such as peer support,

23 structured planning exercises, mentoring, and

24 case management) increase the rate and con25 sistency of participation in the demonstration
84

•S 1904 IS

1 project and how such configurations vary

2 among different populations or communities.

3 (C) The economic, civic, psychological, and

4 social effects of asset accumulation, and how

5 such effects vary among different populations

6 or communities.

7 (D) The effects of individual development

8 accounts on savings rates, homeownership, level

9 of education attained, and self-employment, and

10 how such effects vary among different popu11 lations or communities.

12 (E) The potential financial returns to the

13 Federal Government and to other public sector

14 and private sector investors in individual devel15 opment accounts over a 5-year and 10-year pe16 riod of time.

17 (F) The lessons to be learned from the

18 demonstration projects conducted under this

19 section and if a permanent program of individ20 ual development accounts should be established.

21 (G) Such other factors as may be pre22 scribed by the Secretary.

23 (3) METHODOLOGICAL REQUIREMENTS.—In

24 evaluating any demonstration project conducted

25 under this section, the research organization shall—
85

•S 1904 IS

1 (A) to the extent possible, use control

2 groups to compare participants with nonpartici3 pants;

4 (B) before, during, and after the project,

5 obtain such quantitative data as are necessary

6 to evaluate the project thoroughly; and

7 (C) develop a qualitative assessment, de8 rived from sources such as in-depth interviews,

9 of how asset accumulation affects individuals

10 and families.

11 (4) REPORTS BY THE SECRETARY.—

12 (A) INTERIM REPORTS.—Not less than

13 once during the 12-month period beginning on

14 the date of the enactment of this Act, and dur15 ing each 12-month period thereafter until all

16 demonstration projects conducted under this

17 section are completed, the Secretary shall sub18 mit to the Congress an interim report setting

19 forth the results of the evaluations conducted

20 pursuant to this subsection.

21 (B) FINAL REPORTS.—Not later than 12

22 months after the conclusion of all demonstra23 tion projects conducted under this section, the

24 Secretary shall submit to the Congress a final

25 report setting forth the results and findings of
86

•S 1904 IS

1 evaluations conducted pursuant to this sub2 section.

3 (5) EVALUATION EXPENSES.—The Secretary

4 shall expend such sums as may be necessary to carry

5 out the purposes of this subsection.

6 (l) DEFINITIONS.—As used in this section:

7 (1) APPLICABLE PERIOD.—The term ‘‘applica8 ble period’’ means, with respect to amounts to be

9 paid from a grant made for a project year, the cal10 endar year immediately preceding the calendar year

11 in which the grant is made.

12 (2) HOUSEHOLD.—The term ‘‘household’’

13 means all individuals who share use of a dwelling

14 unit as primary quarters for living and eating sepa15 rate from other individuals.

16 (3) INDIVIDUAL DEVELOPMENT ACCOUNT.—

17 The term ‘‘individual development account’’ has the

18 same meaning given such term in section 529 of the

19 Internal Revenue Code of 1986, as added by section

20 223 of this Act.

21 (4) PENALTY AMOUNT.—The term ‘‘penalty

22 amount’’ means any of the following:

23 (A) FINANCIAL ASSISTANCE FORFEITED.—

24 Any amount paid into the general fund of the

25 Treasury of the United States under section
87

•S 1904 IS

1 529(e) of the Internal Revenue Code of 1986

2 (as so added).

3 (B) 10 PERCENT ADDITION TO TAX.—Any

4 additional tax imposed by section 529(f) of the

5 Internal Revenue Code of 1986 (as so added).

6 (C) OTHER EXCISE OR PENALTY TAXES.—

7 Any tax imposed with respect to an individual

8 development account by section 4973, 4975, or

9 6693 of the Internal Revenue Code of 1986.

10 (5) PROJECT YEAR.—The term ‘‘project year’’

11 means, with respect to a demonstration project, any

12 of the 4 consecutive 12-month periods beginning on

13 the date the project is originally authorized to be

14 conducted.

15 (6) QUALIFIED SAVINGS OF THE INDIVIDUAL

16 FOR THE PERIOD.—The term ‘‘qualified savings of

17 the individual for the period’’ means the aggregate

18 of the amounts contributed by the individual to the

19 individual development account of the individual

20 during the period.

21 (7) SECRETARY.—The term ‘‘Secretary’’ means

22 the Secretary of Health and Human Services.

23 (m) AUTHORIZATION OF APPROPRIATIONS.—To

24 carry out this section, the following amounts are author25 ized to be appropriated:
88

•S 1904 IS

1 (1) $20,000,000 for fiscal year 1996.

2 (2) $30,000,000 for fiscal year 1997.

3 (3) $30,000,000 for fiscal year 1998.

4 (4) $20,000,000 for fiscal year 1999.

5 SEC. 223. INDIVIDUAL DEVELOPMENT ACCOUNTS.

6 (a) IN GENERAL.—Subchapter F of chapter 1 of the

7 Internal Revenue Code of 1986 (relating to exempt organi8 zations) is amended by adding at the end the following

9 new part:

10 ‘‘PART VIII—INDIVIDUAL DEVELOPMENT

11 ACCOUNTS

‘‘Sec. 529. Individual development accounts.

12 ‘‘SEC. 529. INDIVIDUAL DEVELOPMENT ACCOUNTS.

13 ‘‘(a) ESTABLISHMENT OF ACCOUNTS.—

14 ‘‘(1) IN GENERAL.—An individual development

15 account may be established by or on behalf of an eli16 gible individual for the purpose of accumulating

17 funds to pay the qualified expenses of such individ18 ual.

19 ‘‘(2) ELIGIBLE INDIVIDUAL.—

20 ‘‘(A) IN GENERAL.—The term ‘eligible in21 dividual’ means an individual for whom assist22 ance is (or at any prior time was) provided by

23 a qualified entity grantee under section 222(g)

24 of the Project for American Renewal Act.
89

•S 1904 IS

1 ‘‘(B) QUALIFIED ENTITY.—The term

2 ‘qualified entity’ has the meaning given such

3 term by section 3(b)(1)(B) of such Act.

4 ‘‘(b) LIMITATIONS.—

5 ‘‘(1) ACCOUNT TO BENEFIT 1 INDIVIDUAL.—An

6 individual development account may not be estab7 lished for the benefit of more than 1 individual.

8 ‘‘(2) MULTIPLE ACCOUNTS.—If, at any time

9 during a calendar year, 2 or more individual devel10 opment accounts are maintained for the benefit of

11 an eligible individual, such individual shall be treat12 ed as an eligible individual for the calendar year only

13 with respect to the 1st of such accounts.

14 ‘‘(3) ANNUAL LIMIT.—Contributions to an indi15 vidual development account for any taxable year

16 shall not exceed $2,000. No contribution to the ac17 count under section 222(g) of the Project for Amer18 ican Renewal Act shall be taken into account for

19 purposes of this paragraph.

20 ‘‘(4) CONTRIBUTIONS TO BE FROM EARNED IN21 COME.—An eligible individual may only contribute to

22 an account such amounts as are derived from earned

23 income, as defined in section 911(d)(2).

24 ‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur25 poses of this section—
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•S 1904 IS

1 ‘‘(1) QUALIFIED EXPENSES.—The term ‘quali2 fied expenses’ means 1 or more of the following, as

3 provided by the qualified entity providing assistance

4 to the individual under section 222(g) of the Project

5 for American Renewal Act:

6 ‘‘(A) POSTSECONDARY EDUCATIONAL EX7 PENSES.—Postsecondary educational expenses

8 paid from an individual development account di9 rectly to an eligible educational institution. For

10 purposes of this subparagraph—

11 ‘‘(i) IN GENERAL.—The term ‘post12 secondary educational expenses’ means—

13 ‘‘(I) tuition and fees required for

14 the enrollment or attendance of a stu15 dent at an eligible educational institu16 tion, and

17 ‘‘(II) fees, books, supplies, and

18 equipment required for courses of in19 struction at an eligible educational in20 stitution.

21 ‘‘(ii) ELIGIBLE EDUCATIONAL INSTI22 TUTION.—The term ‘eligible educational

23 institution’ means the following:

24 ‘‘(I) INSTITUTION OF HIGHER

25 EDUCATION.—An institution described
91

•S 1904 IS

1 in section 481(a)(1) or 1201(a) of the

2 Higher Education Act of 1965 (20

3 U.S.C. 1088(a)(1) or 1141(a)), as

4 such sections are in effect on the date

5 of the enactment of this section.

6 ‘‘(II) POSTSECONDARY VOCA7 TIONAL EDUCATION SCHOOL.—An

8 area vocational education school (as

9 defined in subparagraph (C) or (D) of

10 section 521(4) of the Carl D. Perkins

11 Vocational and Applied Technology

12 Education Act (20 U.S.C. 2471(4)))

13 which is in any State (as defined in

14 section 521(33) of such Act), as such

15 sections are in effect on the date of

16 the enactment of this section.

17 ‘‘(B) FIRST-HOME PURCHASE.—Qualified

18 acquisition costs with respect to a qualified

19 principal residence for a qualified first-time

20 homebuyer, if paid from an individual develop21 ment account directly to the persons to whom

22 the amounts are due. For purposes of this sub23 paragraph—

24 ‘‘(i) QUALIFIED ACQUISITION

25 COSTS.—The term ‘qualified acquisition
92

•S 1904 IS

1 costs’ means the costs of acquiring, con2 structing, or reconstructing a residence.

3 The term includes any usual or reasonable

4 settlement, financing, or other closing

5 costs.

6 ‘‘(ii) QUALIFIED PRINCIPAL RESI7 DENCE.—The term ‘qualified principal res8 idence’ means a principal residence (within

9 the meaning of section 1034), the qualified

10 acquisition costs of which do not exceed

11 100 percent of the average area purchase

12 price applicable to such residence (deter13 mined in accordance with paragraphs (2)

14 and (3) of section 143(e)).

15 ‘‘(iii) QUALIFIED FIRST-TIME HOME16 BUYER.—

17 ‘‘(I) IN GENERAL.—The term

18 ‘qualified first-time homebuyer’ means

19 a taxpayer (and, if married, the tax20 payer’s spouse) who has no present

21 ownership interest in a principal resi22 dence during the 3-year period ending

23 on the date of acquisition of the prin24 cipal residence to which this subpara25 graph applies.
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•S 1904 IS

1 ‘‘(II) DATE OF ACQUISITION.—

2 The term ‘date of acquisition’ means

3 the date on which a binding contract

4 to acquire, construct, or reconstruct

5 the principal residence to which this

6 subparagraph applies is entered into.

7 ‘‘(C) BUSINESS CAPITALIZATION.—

8 Amounts paid from an individual development

9 account directly to a business capitalization ac10 count which is established in a federally insured

11 financial institution and is restricted to use

12 solely for qualified business capitalization ex13 penses. For purposes of this subparagraph—

14 ‘‘(i) QUALIFIED BUSINESS CAPITAL15 IZATION EXPENSES.—The term ‘qualified

16 business capitalization expenses’ means

17 qualified expenditures for the capitalization

18 of a qualified business pursuant to a quali19 fied plan.

20 ‘‘(ii) QUALIFIED EXPENDITURES.—

21 The term ‘qualified expenditures’ means

22 expenditures included in a qualified plan,

23 including capital, plant, equipment, work24 ing capital, and inventory expenses.
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•S 1904 IS

1 ‘‘(iii) QUALIFIED BUSINESS.—The

2 term ‘qualified business’ means any busi3 ness that does not contravene any law or

4 public policy (as determined by the Sec5 retary).

6 ‘‘(iv) QUALIFIED PLAN.—The term

7 ‘qualified plan’ means a business plan

8 which—

9 ‘‘(I) is approved by a financial in10 stitution, or by a nonprofit loan fund

11 having demonstrated fiduciary integ12 rity,

13 ‘‘(II) includes a description of

14 services or goods to be sold, a market15 ing plan, and projected financial

16 statements, and

17 ‘‘(III) may require the eligible in18 dividual to obtain the assistance of an

19 experienced entrepreneurial advisor.

20 ‘‘(D) TRANSFERS TO IDAS OF FAMILY

21 MEMBERS.—Amounts paid from an individual

22 development account directly into another such

23 account established for the benefit of an eligible

24 individual who is—

25 ‘‘(i) the taxpayer’s spouse, or
95

•S 1904 IS

1 ‘‘(ii) any dependent of the taxpayer

2 with respect to whom the taxpayer is al3 lowed a deduction under section 151.

4 ‘‘(2) INDIVIDUAL DEVELOPMENT ACCOUNT.—

5 The term ‘individual development account’ means a

6 trust created or organized in the United States ex7 clusively for the purpose of paying the qualified ex8 penses of an eligible individual, but only if the writ9 ten governing instrument creating the trust meets

10 the following requirements:

11 ‘‘(A) No contribution will be accepted un12 less it is in cash or by check.

13 ‘‘(B) The trustee is a federally insured fi14 nancial institution.

15 ‘‘(C) The assets of the account will be in16 vested in accordance with the direction of the

17 eligible individual after consultation with the

18 qualified entity providing assistance to the indi19 vidual under section 222(g) of the Project for

20 American Renewal Act.

21 ‘‘(D) The assets of the trust will not be

22 commingled with other property except in a

23 common trust fund or common investment

24 fund.
96

•S 1904 IS

1 ‘‘(E) Except as provided in subparagraph

2 (F), any amount in the account which is attrib3 utable to assistance provided under section

4 222(g) of the Project for American Renewal

5 Act may be paid or distributed out of the ac6 count only for the purpose of paying the quali7 fied expenses of the eligible individual.

8 ‘‘(F) Any balance in the account on the

9 day after the date on which the individual for

10 whose benefit the trust is established dies shall

11 be distributed within 30 days of such date as

12 directed by such individual to another individual

13 development account established for the benefit

14 of an eligible individual.

15 ‘‘(3) TIME WHEN CONTRIBUTIONS DEEMED

16 MADE.—A taxpayer shall be deemed to have made a

17 contribution on the last day of the preceding taxable

18 year if the contribution is made on account of such

19 taxable year and is made not later than the time

20 prescribed by law for filing the return for such tax21 able year (including extensions thereof).

22 ‘‘(d) TAX TREATMENT OF DISTRIBUTIONS.—

23 ‘‘(1) IN GENERAL.—Except as otherwise pro24 vided in this subsection, any amount paid or distrib25 uted out of an individual development account at-
97

•S 1904 IS

1 tributable to assistance provided under section

2 222(g) of the Project for American Renewal Act (in3 cluding earnings attributable to such assistance)

4 shall be included in gross income of the payee or dis5 tributee for the taxable year in the manner provided

6 in section 72.

7 ‘‘(2) DISTRIBUTION USED TO PAY QUALIFIED

8 EXPENSES.—A payment or distribution out of an in9 dividual development account attributable to assist10 ance provided under section 222(g) of the Project

11 for American Renewal Act shall not be included in

12 gross income to the extent such payment or distribu13 tion is used exclusively to pay the qualified expenses

14 incurred by the eligible individual for whose benefit

15 the account is established.

16 ‘‘(3) ORDERING RULES.—Any distribution from

17 an individual development account shall not be treat18 ed as made from the accumulated contributions

19 made to the account by the eligible individual (in20 cluding earnings attributable to such contributions)

21 until all other amounts to the credit of the eligible

22 individual have been distributed.

23 ‘‘(e) TAX TREATMENT OF ACCOUNTS.—

24 ‘‘(1) EXEMPTION FROM TAX.—
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•S 1904 IS

1 ‘‘(A) IN GENERAL.—Except as provided in

2 subparagraph (B), an individual development

3 account is exempt from taxation under this title

4 unless such account has ceased to be an individ5 ual development account by reason of para6 graph (2). Notwithstanding the preceding sen7 tence, any such account is subject to the taxes

8 imposed by section 511 (relating to imposition

9 of tax on unrelated business income of chari10 table, etc. organizations).

11 ‘‘(B) CERTAIN EARNINGS TAXED AS

12 GRANTOR TRUST.—An eligible individual shall

13 be treated for purposes of this title as the

14 owner of the individual development account es15 tablished by or on behalf of such individual and

16 shall be subject to tax thereon with respect to

17 the earnings attributable to contributions made

18 to the account by the eligible individual in ac19 cordance with subpart E of part I of subchapter

20 J of this chapter (relating to grantors and oth21 ers treated as substantial owners).

22 ‘‘(2) LOSS OF EXEMPTION OF ACCOUNT WHERE

23 INDIVIDUAL ENGAGES IN PROHIBITED TRANS24 ACTION.—
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•S 1904 IS

1 ‘‘(A) IN GENERAL.—If an eligible individ2 ual or qualified entity engages in any trans3 action prohibited by section 4975 with respect

4 to such individual’s account, the account shall

5 cease to be an individual development account

6 as of the 1st day of the taxable year of such in7 dividual during which such transaction occurs.

8 ‘‘(B) ACCOUNT TREATED AS DISTRIBUTING

9 ALL ITS ASSETS.—In any case in which any ac10 count ceases to be an individual development

11 account by reason of subparagraph (A) as of

12 the 1st day of any taxable year—

13 ‘‘(i) all assets in the account on such

14 1st day which are attributable to assist15 ance provided under section 222(g) of the

16 Project for American Renewal Act shall be

17 paid into the general fund of the Treasury

18 of the United States, and

19 ‘‘(ii) the remaining assets shall be

20 treated as distributed on such 1st day.

21 ‘‘(3) EFFECT OF PLEDGING ACCOUNT AS SECU22 RITY.—If, during any taxable year, an eligible indi23 vidual or qualified entity uses such individual’s ac24 count or any portion thereof as security for a loan—
100

•S 1904 IS

1 ‘‘(A) an amount equal to the part of the

2 portion so used which is attributable to assist3 ance provided under section 222(g) of the

4 Project for American Renewal Act shall be paid

5 into the general fund of the Treasury of the

6 United States, and

7 ‘‘(B) the remaining part of the portion so

8 used shall be treated as distributed to the eligi9 ble individual.

10 ‘‘(4) EFFECT OF LIEN OR OTHER SEIZURE OF

11 ACCOUNT.—If, during any taxable year, a lien is

12 placed on an individual development account, or the

13 account is otherwise seized pursuant to legal or ad14 ministrative process—

15 ‘‘(A) an amount equal to the part of the

16 portion so seized which is attributable to assist17 ance provided under section 222(g) of the

18 Project for American Renewal Act shall be paid

19 into the general fund of the Treasury of the

20 United States, and

21 ‘‘(B) the remaining part of the portion so

22 seized shall be treated as distributed to the eli23 gible individual.

24 ‘‘(f) ADDITIONAL TAX ON CERTAIN AMOUNTS IN25 CLUDED IN GROSS INCOME.—
101

•S 1904 IS

1 ‘‘(1) DISTRIBUTION NOT USED FOR QUALIFIED

2 EXPENSES.—In the case of any payment or distribu3 tion not used exclusively to pay qualified expenses

4 incurred by the eligible individual for whose benefit

5 the individual development account is established,

6 the tax liability of each payee or distributee under

7 this chapter for the taxable year in which the pay8 ment or distribution is received shall be increased by

9 an amount equal to 10 percent of the amount of the

10 payment or distribution.

11 ‘‘(2) DISABILITY OR DEATH CASES.—Paragraph

12 (1) shall not apply if the payment or distribution is

13 made after the individual for whose benefit the indi14 vidual development account becomes disabled within

15 the meaning of section 72(m)(7) or dies.

16 ‘‘(g) COMMUNITY PROPERTY LAWS.—This section

17 shall be applied without regard to any community property

18 laws.

19 ‘‘(h) CUSTODIAL ACCOUNTS.—For purposes of this

20 section, a custodial account shall be treated as a trust if

21 the assets of such account are held by a bank (as defined

22 in section 408(n)) or another person who demonstrates,

23 to the satisfaction of the Secretary, that the manner in

24 which such person will administer the account will be con25 sistent with the requirements of this section, and if the
102

•S 1904 IS

1 custodial account would, except for the fact that it is not

2 a trust, constitute an individual development account de3 scribed in subsection (c)(2). For purposes of this title, in

4 the case of a custodial account treated as a trust by reason

5 of the preceding sentence, the custodian of such account

6 shall be treated as the trustee thereof.

7 ‘‘(i) REPORTS.—The trustee of an individual develop8 ment account shall—

9 ‘‘(1) prepare reports regarding the account with

10 respect to contributions, distributions, and any other

11 matter required by the Secretary under regulations,

12 and

13 ‘‘(2) submit such reports, at the time and in

14 the manner prescribed by the Secretary in regula15 tions, to—

16 ‘‘(A) the eligible individual for whose bene17 fit the account is maintained,

18 ‘‘(B) the qualified entity providing assist19 ance to the individual under section 222(g) of

20 the Project for American Renewal Act, and

21 ‘‘(C) the Secretary.’’

22 (b) DEDUCTION ALLOWED AGAINST GROSS IN23 COME.—Subsection (a) of section 62 (defining adjusted

24 gross income) is amended by inserting after paragraph

25 (15) the following new paragraph:
103

•S 1904 IS

1 ‘‘(16) INDIVIDUAL DEVELOPMENT ACCOUNTS.—

2 Except as provided in section 529, contributions to

3 an individual development account established to

4 provide assistance to the taxpayer under section

5 222(g) of the Project for American Renewal Act.’’

6 (c) CONTRIBUTION NOT SUBJECT TO GIFT TAX.—

7 Section 2503 of such Code (relating to taxable gifts) is

8 amended by adding at the end the following new sub9 section:

10 ‘‘(h) INDIVIDUAL DEVELOPMENT ACCOUNTS.—Any

11 contribution made by an individual or qualified entity to

12 an individual development account described in section

13 529(c)(2) shall not be treated as a transfer of property

14 by gift for purposes of this chapter.’’

15 (d) TAX ON PROHIBITED TRANSACTIONS.—Section

16 4975 of such Code (relating to prohibited transactions)

17 is amended—

18 (1) by adding at the end of subsection (c) the

19 following new paragraph:

20 ‘‘(4) SPECIAL RULE FOR INDIVIDUAL DEVELOP21 MENT ACCOUNTS.—An eligible individual for whose

22 benefit an individual development account is estab23 lished and any contributor to such account shall be

24 exempt from the tax imposed by this section with re25 spect to any transaction concerning such account
104

•S 1904 IS

1 (which would otherwise be taxable under this sec2 tion) if, with respect to such transaction, the ac3 count ceases to be an individual development ac4 count by reason of the application of section

5 529(e)(2)(A) to such account.’’, and

6 (2) by inserting ‘‘, an individual development

7 account described in section 529(c)(2),’’ in sub8 section (e)(1) after ‘‘described in section 408(a)’’.

9 (e) FAILURE TO PROVIDE REPORTS ON INDIVIDUAL

10 DEVELOPMENT ACCOUNTS.—Section 6693 of such Code

11 (relating to failure to provide reports on individual retire12 ment accounts or annuities) is amended—

13 (1) by inserting ‘‘OR ON INDIVIDUAL DEVEL14 OPMENT ACCOUNTS’’ after ‘‘ANNUITIES’’ in the

15 heading of such section, and

16 (2) by adding at the end of subsection (a) the

17 following new sentence: ‘‘The person required by sec18 tion 529(i) to file a report regarding an individual

19 development account at the time and in the manner

20 required by such section shall pay a penalty of $50

21 for each failure, unless it is shown that such failure

22 is due to reasonable cause.’’

23 (f) SPECIAL RULE FOR DETERMINING AMOUNTS OF

24 SUPPORT FOR DEPENDENT.—Subsection (b) of section

25 152 of such Code (relating to definition of dependent) is
105

•S 1904 IS

1 amended by adding at the end the following new para2 graph:

3 ‘‘(6) A distribution from an individual develop4 ment account described in section 529(c)(2) to the

5 eligible individual for whose benefit such account has

6 been established shall not be taken into account in

7 determining support for purposes of this section to

8 the extent such distribution is excluded from gross

9 income of such individual under section 529(d)(2).’’

10 (g) CLERICAL AMENDMENTS.—

11 (1) The table of parts for subchapter F of

12 chapter 1 of such Code is amended by inserting at

13 the end the following new item:

‘‘Part VIII. Individual development accounts.’’

14 (2) The table of sections for subchapter B of

15 chapter 68 of such Code is amended by striking the

16 item relating to section 6693 and inserting the fol17 lowing new item:

‘‘Sec. 6693. Failure to provide reports on individual retirement

accounts or annuities or on individual development

accounts.’’

18 (h) EFFECTIVE DATE.—The amendments made by

19 this section shall apply to contributions made after the

20 date of the enactment of this Act.
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•S 1904 IS

1 SEC. 224. FUNDS IN INDIVIDUAL DEVELOPMENT ACCOUNTS

2 OF DEMONSTRATION PROJECT PARTICI3 PANTS DISREGARDED FOR PURPOSES OF ALL

4 MEANS-TESTED FEDERAL PROGRAMS.

5 Notwithstanding any Federal law (other than the In6 ternal Revenue Code of 1986) that requires consideration

7 of 1 or more financial circumstances of an individual, for

8 the purpose of determining eligibility to receive, or the

9 amount of, any assistance or benefit authorized by such

10 law to be provided to or for the benefit of such individual,

11 funds (including interest accruing) in an individual devel12 opment account (as defined in section 529 of the Internal

13 Revenue Code of 1986, as added by section 223 of this

14 Act) shall be disregarded for such purpose with respect

15 to any period during which such individual participates in

16 a demonstration project conducted under section 222 of

17 this Act (or would be participating in such a project but

18 for the suspension of the project).

19 Subtitle D—Housing

20 PART I—URBAN HOMESTEADS

21 SEC. 231. URBAN HOMESTEAD PROVISIONS.

22 (a) DEFINITIONS.—For purposes of this section, the

23 following definitions shall apply:

24 (1) COMMUNITY DEVELOPMENT CORPORA25 TION.—The term ‘‘community development corpora26 tion’’ means a nonprofit organization whose primary
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1 purpose is to promote community development by

2 providing housing opportunities to low-income fami3 lies.

4 (2) COST RECOVERY BASIS.—The term ‘‘cost

5 recovery basis’’ means, with respect to any sale of a

6 project or residence by a unit of general local gov7 ernment to a community development corporation

8 under subsection (b)(3)(B), that the purchase price

9 paid by the community development corporation is

10 less than or equal to the costs incurred by the unit

11 of general local government in connection with such

12 project or residence during the period beginning on

13 the date on which the unit of general local govern14 ment acquires title to the multifamily housing

15 project or residential property under subsection

16 (b)(1) and ending on the date on which the sale is

17 consummated.

18 (3) LOW-INCOME FAMILIES.—The term ‘‘low-in19 come families’’ has the same meaning as in section

20 3(b) of the United States Housing Act of 1937.

21 (4) MULTIFAMILY HOUSING PROJECT.—The

22 term ‘‘multifamily housing project’’ has the same

23 meaning as in section 203 of the Housing and Com24 munity Development Amendments of 1978.
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1 (5) SECRETARY.—The term ‘‘Secretary’’ means

2 the Secretary of Housing and Urban Development.

3 (6) SEVERE PHYSICAL PROBLEMS.—A dwelling

4 unit shall be considered to have ‘‘severe physical

5 problems’’ if such unit—

6 (A) lacks hot or cold piped water, a flush

7 toilet, or both a bathtub and a shower in the

8 unit, for the exclusive use of that unit;

9 (B) on not less than 3 separate occasions,

10 during the preceding winter months was uncom11 fortably cold for a period of more than 6 con12 secutive hours due to a malfunction of the heat13 ing system for the unit;

14 (C) has no functioning electrical service,

15 exposed wiring, any room in which there is not

16 a functioning electrical outlet, or has experi17 enced not less than 3 blown fuses or tripped

18 circuit breakers during the preceding 90-day

19 period;

20 (D) is accessible through a public hallway

21 in which there are no working light fixtures,

22 loose or missing steps or railings, and no eleva23 tor; or

24 (E) has severe maintenance problems, in25 cluding water leaks involving the roof, windows,
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1 doors, basement, or pipes or plumbing fixtures,

2 holes or open cracks in walls or ceilings, severe

3 paint peeling or broken plaster, and signs of ro4 dent infestation.

5 (7) SINGLE FAMILY RESIDENCE.—The term

6 ‘‘single family residence’’ means a 1- to 4-family

7 dwelling that is held by the Secretary.

8 (8) SUBSTANDARD MULTIFAMILY HOUSING

9 PROJECT.—A multifamily housing project is ‘‘sub10 standard’’ if not less than 25 percent of the dwelling

11 units of the project have severe physical problems.

12 (9) UNIT OF GENERAL LOCAL GOVERNMENT.—

13 The term ‘‘unit of general local government’’ has the

14 same meaning as in section 102(a) of the Housing

15 and Community Development Act of 1974.

16 (10) UNOCCUPIED MULTIFAMILY HOUSING

17 PROJECT.—The term ‘‘unoccupied multifamily hous18 ing project’’ means a multifamily housing project

19 that the unit of general local government certifies in

20 writing is not inhabited.

21 (b) DISPOSITION OF UNOCCUPIED AND SUB22 STANDARD PUBLIC HOUSING.—

23 (1) TRANSFER OF OWNERSHIP TO UNITS OF

24 GENERAL LOCAL GOVERNMENT.—Notwithstanding

25 section 203 of the Housing and Community Devel-
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1 opment Amendments of 1978 or any other provision

2 of Federal law pertaining to the disposition of prop3 erty, the Secretary shall transfer ownership of any

4 unoccupied multifamily housing project, substandard

5 multifamily housing project, or other residential

6 property that is owned by the Secretary to the ap7 propriate unit of general local government for the

8 area in which the project or residence is located in

9 accordance with paragraph (2), if the unit of general

10 local government enters into an agreement with the

11 Secretary described in paragraph (3).

12 (2) TIMING.—

13 (A) IN GENERAL.—Any transfer of owner14 ship under paragraph (1) shall be completed—

15 (i) with respect to any multifamily

16 housing project owned by the Secretary

17 that is determined to be unoccupied or

18 substandard before the date of enactment

19 of this Act, not later than 1 year after that

20 date of enactment; and

21 (ii) with respect to any multifamily

22 housing project or other residential prop23 erty acquired by the Secretary on or after

24 the date of enactment of this Act, not later

25 than 1 year after the date on which the
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1 project is determined to be unoccupied or

2 substandard or the residence is acquired,

3 as appropriate.

4 (B) SATISFACTION OF INDEBTEDNESS.—

5 Prior to any transfer of ownership under sub6 paragraph (A), the Secretary shall satisfy any

7 indebtedness incurred in connection with the

8 project or residence at issue, either by—

9 (i) cancellation of the indebtedness; or

10 (ii) reimbursing the unit of general

11 local government to which the project or

12 residence is transferred for the amount of

13 the indebtedness.

14 (3) SALE TO COMMUNITY DEVELOPMENT COR15 PORATIONS.—An agreement is described in this

16 paragraph if it is an agreement that requires a unit

17 of general local government to dispose of the multi18 family housing project or other residential property

19 in accordance with the following requirements:

20 (A) NOTIFICATION TO COMMUNITY DEVEL21 OPMENT CORPORATIONS.—Not later than 30

22 days after the date on which the unit of general

23 local government acquires title to the multifam24 ily housing project or other residential property

25 under paragraph (1), the unit of general local
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•S 1904 IS

1 government shall notify community development

2 corporations located in the State in which the

3 project or residence is located—

4 (i) of such acquisition of title; and

5 (ii) that, during the 6-month period

6 beginning on the date on which such notifi7 cation is made, such community develop8 ment corporations shall have the exclusive

9 right under this subsection to make bona

10 fide offers to purchase the project or resi11 dence on a cost recovery basis.

12 (B) RIGHT OF FIRST REFUSAL.—During

13 the 6-month period described in subparagraph

14 (A)(ii)—

15 (i) the unit of general local govern16 ment may not sell or offer to sell the mul17 tifamily housing project or other residen18 tial property other than to a party notified

19 under subparagraph (A), unless each com20 munity development corporation notifies

21 the unit of general local government that

22 the corporation will not make an offer to

23 purchase the project or residence; and

24 (ii) the unit of general local govern25 ment shall accept a bona fide offer to pur-
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1 chase the project or residence made during

2 such period if the offer is acceptable to the

3 unit of general local government, except

4 that a unit of general local government

5 may not sell a project or residence to a

6 community development corporation during

7 that 6-month period other than on a cost

8 recovery basis.

9 (C) OTHER DISPOSITION.—During the 6-

10 month period beginning on the expiration of the

11 6-month period described in subparagraph

12 (A)(ii), the unit of general local government

13 shall dispose of the multifamily housing project

14 or other residential property on a negotiated,

15 competitive bid, or other basis, on such terms

16 as the unit of general local government deems

17 appropriate.

18 (c) EXEMPTION FROM PROPERTY DISPOSITION RE19 QUIREMENTS.—No provision of the Multifamily Housing

20 Property Disposition Reform Act of 1994, or any amend21 ment made by that Act, shall apply to the disposition of

22 property in accordance with this section.

23 (d) TENANT LEASES.—This section shall not affect

24 the terms or the enforceability of any contract or lease

25 entered into before the date of enactment of this Act.
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1 (e) PROCEDURES.—Not later than 6 months after the

2 date of enactment of this Act, the Secretary shall estab3 lish, by rule, regulation, or order, such procedures as may

4 be necessary to carry out this section.

5 PART II—MATERNITY SHELTER

6 SEC. 232. FINDINGS.

7 Congress finds that—

8 (1) pregnancy among unmarried teenagers is

9 one of the most difficult and far-reaching social

10 problems faced by the United States;

11 (2) in 1988, the most recent year for which sta12 tistics are available, 816,000 unmarried teenagers

13 became pregnant, and of such pregnancies, 44 per14 cent ended in abortion, 12 percent in miscarriage or

15 still birth, and 44 percent in birth;

16 (3) less than 10 percent of unwed teenage

17 mothers place their children for adoption;

18 (4) only half as many unmarried teenagers

19 begin prenatal care in the first trimester of preg20 nancy as do teenagers who become pregnant after

21 marriage, with the result that unmarried teenagers

22 are twice as likely to give birth to low-birth-weight

23 babies than their married teenage counterparts and

24 the rate of infant mortality is twice as high as moth25 ers giving birth in their twenties; and
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1 (5) Federal policy should assist and encourage

2 States to provide pre- and postnatal maternity care

3 services to pregnant teenagers in order to protect

4 the future health and well-being of their newborn

5 children.

6 SUBPART A—MATERNAL HEALTH CERTIFICATES

7 PROGRAM

8 SEC. 233. MATERNAL HEALTH CERTIFICATES FOR ELIGI9 BLE PREGNANT WOMEN.

10 (a) ESTABLISHMENT OF MATERNAL HEALTH CER11 TIFICATES FOR ELIGIBLE PREGNANT WOMEN.—Not later

12 than 180 days after the date of the enactment of this Act,

13 the Secretary of Health and Human Services (hereafter

14 in this subpart referred to as the ‘‘Secretary’’) shall estab15 lish a program to provide maternal health certificates for

16 eligible pregnant women to use to cover expenses incurred

17 in receiving services at a maternity home.

18 (b) ELIGIBILITY OF INDIVIDUALS.—

19 (1) IN GENERAL.—A pregnant woman is eligi20 ble to receive a maternal health certificate under the

21 program established under subsection (a) if the

22 woman—

23 (A) has an annual individual income (de24 termined without taking into account the in25 come of any parent or guardian of the individ26 ual) not greater than 175 percent of the income
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1 official poverty line (as defined by the Office of

2 Management and Budget, and revised annually

3 in accordance with section 673(2) of the Omni4 bus Budget Reconciliation Act of 1981) applica5 ble to such individual; and

6 (B) provides the Secretary with such other

7 information and assurances as the Secretary

8 may require.

9 (2) INCOME OF ESTRANGED SPOUSE NOT IN10 CLUDED.—In determining the income of an individ11 ual for purposes of paragraph (1)(A), there shall not

12 be included the income of a spouse if the spouse has

13 been living apart from the woman for not less than

14 6 months, or if the spouse is incarcerated.

15 (3) PARTICIPATION IN AFDC PROGRAM NOT RE16 QUIRED.—An individual otherwise eligible to receive

17 a maternal health certificate under the program es18 tablished under subsection (a) shall not be found in19 eligible to receive such a certificate solely on the

20 grounds that the individual does not receive or is not

21 eligible to receive aid under the State plan for aid

22 to families with dependent children under part A of

23 title IV of the Social Security Act.

24 (c) LIMITATIONS ON AMOUNT OF EXPENSES IN25 CURRED.—A certificate received under the program estab-
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1 lished under subsection (a) may be used to cover an

2 amount of expenses incurred by an individual at a mater3 nity home that does not exceed an amount equal to—

4 (1) $100; multiplied by

5 (2) the number of days during which such serv6 ices are provided to the individual at such facility.

7 (d) DEFINITIONS.—For purposes of this section:

8 (1) MATERNITY HOME.—The term ‘‘maternity

9 home’’ means a nonprofit facility licensed or other10 wise approved by the State (including accreditation

11 or other peer review systems that may be recognized

12 by the State) in which the facility is located to serve

13 as a residence for not fewer than 4 pregnant women

14 during pregnancy and for a limited period after the

15 date on which the child carried during the pregnancy

16 is born, as the Secretary may determine, that pro17 vides such pregnant women with appropriate sup18 portive services, which—

19 (A) shall include the following services—

20 (i) instruction and counseling regard21 ing future health care for the woman and

22 her child;

23 (ii) nutrition counseling;
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1 (iii) counseling and education concern2 ing all aspects of prenatal care, childbirth,

3 and motherhood;

4 (iv) general family counseling, includ5 ing child and family development counsel6 ing;

7 (v) adoption counseling;

8 (vi) employability training, job assist9 ance, and counseling; and

10 (vii) medical care or referral for medi11 cal care for the woman and her child, in12 cluding—

13 (I) prenatal, delivery, and post14 delivery care;

15 (II) screening or referral for

16 screening for illegal drug use and

17 treatment; and

18 (III) screening or referral for

19 screening and treatment of sexually

20 transmitted diseases; and

21 (B) may include the following services—

22 (i) housing;

23 (ii) board and nutrition services;
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•S 1904 IS

1 (iii) basic transportation services to

2 enable the woman to obtain services from

3 the facility;

4 (iv) incidental dental care;

5 (v) referral for job training; and

6 (vi) such other services as are consist7 ent with the purposes of this section.

8 (2) PREGNANT WOMAN.—The term ‘‘pregnant

9 woman’’ means a woman determined to have one or

10 more fetuses in utero.

11 (e) AUTHORIZATION OF APPROPRIATIONS.—There

12 are authorized to be appropriated for maternal health cer13 tificates under this section—

14 (1) $50,000,000 for fiscal year 1997;

15 (2) $75,000,000 for fiscal year 1998; and

16 (3) $100,000,000 for fiscal year 1999.

17 SUBPART B—MATERNITY HOME DEMONSTRATIONS

18 SEC. 236. PURPOSES.

19 It is the purpose of this subpart to support dem20 onstrations—

21 (1) to improve and expand the availability of,

22 and access to, needed comprehensive maternity care

23 services that enable pregnant adolescents to obtain

24 proper care and to assist pregnant adolescents and

25 adolescent parents to become productive independent

26 contributors to family and community life; and
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1 (2) to promote innovative, comprehensive, and

2 integrated approaches to the delivery of such serv3 ices.

4 SEC. 237. ESTABLISHMENT OF DEMONSTRATION PROGRAM.

5 (a) GRANTS.—

6 (1) IN GENERAL.—The Secretary of Health and

7 Human Services (hereafter in this subpart referred

8 to as the ‘‘Secretary’’) may make demonstration

9 grants to any State that submits an application

10 under this section (in such form and containing such

11 information as the Secretary may require) to reim12 burse the State for amounts expended under an eli13 gible grant program for maternity care services fur14 nished to eligible beneficiaries.

15 (2) LIMITATIONS.—No grant made under para16 graph (1)—

17 (A) shall exceed an amount equal to 50

18 percent of the total amount expended by the

19 State under the demonstration program for ma20 ternity care services furnished to eligible bene21 ficiaries; or

22 (B) shall be used for the performance,

23 counseling, or referral for abortion.

24 (3) DEFINITIONS.—As used in this subsection:
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1 (A) DEMONSTRATION PROGRAM.—The

2 term ‘‘demonstration program’’ means any pro3 gram conducted by a nonprofit private organi4 zation or agency that (as determined by the

5 Secretary) is capable of furnishing in a single

6 setting maternity care services which—

7 (i) shall include the following serv8 ices—

9 (I) instruction and counseling re10 garding future health care for the

11 woman and her child;

12 (II) nutrition counseling;

13 (III) counseling and education

14 concerning all aspects of prenatal

15 care, childbirth, and motherhood;

16 (IV) general family counseling,

17 including child and family develop18 ment counseling;

19 (V) adoption counseling;

20 (VI) employability training, job

21 assistance, and counseling; and

22 (VII) medical care or referral for

23 medical care for the woman and her

24 child, including—
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1 (aa) prenatal, delivery, and

2 post-delivery care;

3 (bb) screening or referral for

4 screening for illegal drug use and

5 treatment; and

6 (cc) screening or referral for

7 screening and treatment of sexu8 ally transmitted diseases; and

9 (ii) may include the following serv10 ices—

11 (I) housing;

12 (II) board and nutrition services;

13 (III) basic transportation services

14 to enable the woman to obtain serv15 ices from the facility;

16 (IV) incidental dental care;

17 (V) referral for job training; and

18 (VI) such other services as are

19 consistent with the purposes of this

20 section.

21 (B) ELIGIBLE BENEFICIARY.—The term

22 ‘‘eligible beneficiary’’ means any individual

23 who—

24 (i) is under the age of 19;
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•S 1904 IS

1 (ii) has not completed high school;

2 and

3 (iii)(I) is pregnant; or

4 (II) has given birth in the preceding

5 90 days.

6 (b) ADMINISTRATION.—The officer or employee of

7 the Department of Health and Human Services des8 ignated by the Secretary to administer the grant program

9 under this section shall report directly to the Assistant

10 Secretary for Health with respect to the activities of such

11 officer or employee in administering such program.

12 (c) AUTHORIZATION OF APPROPRIATIONS; AMOUNTS

13 FOR ADMINISTRATION AND EVALUATION.—

14 (1) AUTHORIZATION OF APPROPRIATIONS.—

15 There are authorized to be appropriated

16 $50,000,000 for each of the fiscal years 1997, 1998,

17 and 1999 for the purpose of carrying out the grant

18 program under this section.

19 (2) ADMINISTRATION AND START UP.—Not

20 more than 25 percent of the amounts appropriated

21 pursuant to paragraph (1) may be used for the pur22 pose of administering or starting up the grant pro23 gram under this section.

24 (d) REGULATIONS.—The Secretary shall adopt such

25 regulations as are necessary to carry out this section.
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1 SUBPART C—REHABILITATION GRANTS FOR MATERNITY

2 HOUSING AND SERVICES FACILITIES

3 SEC. 241. ESTABLISHMENT OF GRANT PROGRAM.

4 The Secretary of Housing and Urban Development

5 (hereafter in this subpart referred to as the ‘‘Secretary’’)

6 shall carry out a program to provide assistance under this

7 subpart to eligible nonprofit entities for rehabilitation of

8 existing structures for use as facilities to provide housing

9 and services to pregnant women.

10 SEC. 242. AUTHORITY AND APPLICATIONS.

11 (a) AUTHORITY.—The Secretary may make grants

12 under the program under this subpart to eligible nonprofit

13 entities to rehabilitate existing structures for use as ma14 ternity housing and services facilities.

15 (b) APPLICATIONS.—The Secretary may make grants

16 only to nonprofit entities that submit applications for

17 grants under this subpart in the form and manner that

18 the Secretary shall prescribe, which shall include assur19 ances that grant amounts will be used to provide a mater20 nity housing and services facility.

21 SEC. 243. GRANT LIMITATIONS.

22 (a) MAXIMUM GRANT AMOUNT.—A grant under this

23 subpart may not be in an amount greater than

24 $1,000,000. An eligible nonprofit entity may not receive

25 more than 1 grant under this subpart in any fiscal year.
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1 (b) MAXIMUM NUMBER OF GRANTS.—The Secretary

2 may not make grants under this subpart to more than

3 100 eligible nonprofit entities in any fiscal year.

4 (c) USE OF GRANTS FOR REHABILITATION ACTIVI5 TIES.—Any eligible nonprofit entity that receives a grant

6 under this subpart shall use the grant amounts for the

7 acquisition or rehabilitation (or both) of existing struc8 tures for use as a maternity housing and services facility,

9 which may include planning and development costs, pro10 fessional fees, and administrative costs related to such ac11 quisition or rehabilitation.

12 (d) TIME LIMITATION.—Rehabilitation projects that

13 receive assistance under this subpart shall be operated for

14 not less than 10 years for the purposes described in this

15 subpart.

16 (e) REPAYMENT.—

17 (1) REQUIREMENT.—The Secretary shall re18 quire a recipient of a grant under this subpart to

19 repay 100 percent of the amount of such grant if

20 the Secretary determines that the recipient has

21 failed to use such grant to operate maternity hous22 ing during the 1-year period beginning on the date

23 such housing is placed in service. If the Secretary

24 determines that such recipient is operating mater25 nity housing under such grant for periods in excess
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•S 1904 IS

1 of such 1-year period, the Secretary shall reduce the

2 percentage of the amount required to be repaid by

3 10 percentage points for each year such maternity

4 housing is in operation in excess of such 1-year pe5 riod.

6 (2) EXCEPTION.—A recipient of a grant under

7 this subpart shall not be required to comply with the

8 terms and conditions prescribed under this sub9 section if the recipient elects to sell or dispose of the

10 property involved and such sale or disposition results

11 in the use of the project for the direct benefit of very

12 low income individuals or if all of the proceeds gen13 erated from such sale or disposition are used to pro14 vide maternity housing that meets the requirements

15 of this subpart.

16 SEC. 244. REPORTS.

17 The Secretary shall require each eligible nonprofit en18 tity that receives a grant under this subpart to submit

19 to the Secretary a report, at such times and including such

20 information as the Secretary shall determine, describing

21 the activities carried out by the eligible nonprofit entity

22 with the grant amounts.

23 SEC. 245. DEFINITIONS.

24 For purposes of this subpart:
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1 (1) ELIGIBLE NONPROFIT ENTITIES.—The term

2 ‘‘eligible nonprofit entity’’ means any organization

3 that—

4 (A) is described in section 501(c)(3) of the

5 Internal Revenue Code of 1986 that is exempt

6 from taxation under subtitle A of such Code;

7 and

8 (B) has submitted an application under

9 section 242(b) for a grant under this subpart.

10 (2) MATERNITY HOUSING AND SERVICES FACIL11 ITY.—The term ‘‘maternity housing and services fa12 cility’’ means a facility licensed or otherwise ap13 proved by the State in which the facility is located

14 to serve as a residence for not fewer than 4 preg15 nant women during pregnancy and for a limited pe16 riod after the date on which the child carried during

17 the pregnancy is born, as the Secretary may deter18 mine, that provides such pregnant women with ap19 propriate supportive services, which—

20 (A) shall include the following services—

21 (i) instruction and counseling regard22 ing future health care for the woman and

23 her child;

24 (ii) nutrition counseling;
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•S 1904 IS

1 (iii) counseling and education concern2 ing all aspects of prenatal care, childbirth,

3 and motherhood;

4 (iv) general family counseling, includ5 ing child and family development counsel6 ing;

7 (v) adoption counseling;

8 (vi) employability training, job assist9 ance, and counseling; and

10 (vii) medical care or referral for medi11 cal care for the woman and her child, in12 cluding—

13 (I) prenatal, delivery, and post14 delivery care;

15 (II) screening or referral for

16 screening for illegal drug use and

17 treatment; and

18 (III) screening or referral for

19 screening and treatment of sexually

20 transmitted diseases; and

21 (B) may include the following services—

22 (i) housing;

23 (ii) board and nutrition services;
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•S 1904 IS

1 (iii) basic transportation services to

2 enable the woman to obtain services from

3 the facility;

4 (iv) incidental dental care;

5 (v) referral for job training; and

6 (vi) such other services as are consist7 ent with the purposes of this section.

8 (3) PREGNANT WOMAN.—The term ‘‘pregnant

9 woman’’ means a woman determined to have one or

10 more fetuses in utero.

11 SEC. 246. AUTHORIZATION OF APPROPRIATIONS.

12 There are authorized to be appropriated to carry out

13 this subpart $25,000,000 for fiscal year 1997,

14 $40,000,000 for fiscal year 1998, and $60,000,000 for fis15 cal year 1999.

16 SUBPART D—MISCELLANEOUS PROVISIONS

17 SEC. 248. EVALUATIONS AND REPORTS.

18 (a) EVALUATION.—The Secretary of Health and

19 Human Services (with respect to subparts A and B) and

20 the Secretary of Housing and Urban Development (with

21 respect to subpart C) shall conduct an evaluation of each

22 program receiving a grant under this part and may require

23 each recipient of a grant under this part to submit such

24 information to the appropriate Secretary as such Sec25 retary determines is necessary to conduct such evaluation.
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1 (b) REPORT.—Each Secretary referred to in sub2 section (a) shall for each year of the grant program under

3 this part submit to the Congress a summary of each eval4 uation conducted under subsection (a) and of the informa5 tion submitted to each such Secretary by recipients of

6 grants under this part.

7 (c) FUNDING.—Of the amounts appropriated pursu8 ant to this part—

9 (1) the Secretary of Health and Human Serv10 ices shall reserve not less than 3 percent nor more

11 than 10 percent of the amount appropriated under

12 subparts A and B; and

13 (2) the Secretary of Housing and Urban Devel14 opment shall reserve not less than 3 percent nor

15 more than 10 percent of the amount appropriated

16 under subpart B;

17 for the purpose of carrying out the activities under sub18 sections (a) and (b).

19 SEC. 249. PROHIBITION ON ABORTION.

20 Amounts may be made available under this part only

21 to programs or projects that—

22 (1) do not provide for the performance of abor23 tions or provide abortion counseling or referral;

24 (2) do not subcontract with or make any pay25 ments to any person who provides for the perform-
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•S 1904 IS

1 ance of abortions or provides abortion counseling or

2 referral; and

3 (3) do not advocate, promote, or encourage

4 abortion;

5 except where the life of the mother would be endangered

6 if the fetus were carried to term.

7 TITLE III—OTHER AMERICAN

8 RENEWAL INCENTIVES

9 Subtitle A—Housing

10 SEC. 301. PUBLIC HOUSING FOR INTACT FAMILIES.

11 Section 6(c)(4)(A) of the United States Housing Act

12 of 1937 (42 U.S.C. 1437d(c)(4)(A)) is amended—

13 (1) in clause (iii), by striking ‘‘and’’ at the end;

14 (2) in clause (iv), by striking the period at the

15 end and inserting ‘‘; and’’; and

16 (3) by adding at the end the following new

17 clause:

18 ‘‘(v) for not less than 15 percent of

19 the units that are made available for occu20 pancy in a given fiscal year, give pref21 erence to any family that includes 2 indi22 viduals who are legally married to each

23 other;’’.
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•S 1904 IS

1 SEC. 302. EFFECTIVE DATE.

2 This subtitle and the amendments made by this sub3 title shall take effect on October 1, 1996.

4 Subtitle B—Responsible Parenting

5 SEC. 311. AMENDMENTS TO THE SOCIAL SECURITY ACT.

6 Except as otherwise specifically provided, whenever in

7 this subtitle an amendment is expressed in terms of an

8 amendment to or repeal of a section or other provision,

9 the reference shall be considered to be made to that sec10 tion or other provision of the Social Security Act.

11 SEC. 312. INTEGRATION OF FAMILY PLANNING AND MATER12 NAL AND CHILD HEALTH SERVICES.

13 (a) INCREASE IN FUNDING.—Section 501(a) (42

14 U.S.C. 701(a)) is amended in the matter preceding para15 graph (1) by striking ‘‘$705,000,000 for fiscal year 1994’’

16 and inserting ‘‘$886,000,000 for fiscal year 1997’’.

17 (b) RESERVATION OF CERTAIN AMOUNTS.—Section

18 502 (42 U.S.C. 702) is amended by striking

19 ‘‘$600,000,000’’ each place it appears and inserting

20 ‘‘$800,000,000’’.

21 SEC. 313. ABSTINENCE SERVICES.

22 (a) PROVISION AND PROMOTION OF ABSTINENCE

23 SERVICES.—Section 501(a)(1) (42 U.S.C. 701(a)(1)) is

24 amended—

25 (1) in subparagraph (C), by striking ‘‘and’’ at

26 the end;
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•S 1904 IS

1 (2) in subparagraph (D), by inserting ‘‘and’’ at

2 the end; and

3 (3) by adding the following new subparagraph:

4 ‘‘(E) to provide and to promote family-cen5 tered, community-based services and informa6 tion regarding the delay or discontinuation of

7 premarital sexual activity, particularly among

8 adolescents, and to provide adoption-related

9 services and promote adoption as an acceptable

10 alternative for pregnant unmarried individ11 uals;’’.

12 (b) MINIMUM AMOUNT FOR ABSTINENCE SERV13 ICES.—Section 504 (42 U.S.C. 704) is amended by adding

14 the following new subsection:

15 ‘‘(e) Of the amounts paid to a State under section

16 503 from an allotment for a fiscal year under section

17 502(c), not less than 100 percent of such amounts (includ18 ing the fair market value of any supplies or equipment)

19 as were used under this title in the preceding fiscal year

20 to provide family planning services shall be used to provide

21 services described in section 501(a)(1)(E).’’.

22 (c) NEEDS ASSESSMENT FOR ABSTINENCE SERV23 ICES.—Section 505(a)(1) (42 U.S.C. 705(a)(1)) is amend24 ed—
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1 (1) in subparagraph (B), by striking ‘‘and’’ at

2 the end;

3 (2) in subparagraph (C), by adding ‘‘and’’ at

4 the end; and

5 (3) by adding at the end the following new sub6 paragraph:

7 ‘‘(D) services and information regarding

8 the delay or discontinuation of premarital sex9 ual activity, particularly among adolescents,

10 and regarding adoption;’’.

11 SEC. 314. USE OF FUNDS.

12 (a) PROHIBITION OF USE FOR FAMILY PLANNING

13 SERVICES IN SCHOOLS.—Section 504(b) (42 U.S.C.

14 704(b)) is amended—

15 (1) in paragraph (5), by striking ‘‘or’’ at the

16 end;

17 (2) in paragraph (6)(B), by striking the period

18 at the end and inserting a semicolon; and

19 (3) by adding at the end the following new

20 paragraphs:

21 ‘‘(7) to provide or promote family planning

22 services in any elementary or secondary educational

23 institution; or
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1 ‘‘(8) to provide or promote any drug or device

2 except for a use that has been approved by the Food

3 and Drug Administration.’’.

4 (b) NO FUNDING OF PROGRAMS OR PROJECTS THAT

5 PROVIDE ABORTION SERVICES.—Section 504 (42 U.S.C.

6 704), as amended by section 313(b), is amended by adding

7 at the end the following new subsections:

8 ‘‘(f)(1) Payments under this title may be made only

9 to programs or projects that—

10 ‘‘(A) do not provide abortions or abortion coun11 seling or referral;

12 ‘‘(B) do not subcontract with or make any pay13 ment to any person who provides abortions or abor14 tion counseling or referral (except that any such pro15 gram or project may provide referral for abortion

16 counseling to a pregnant adolescent if such adoles17 cent and the parents or guardians of such adolescent

18 request such referral); or

19 ‘‘(C) do not advocate, promote, or encourage

20 abortion.

21 ‘‘(2) The Secretary shall ascertain whether programs

22 or projects comply with paragraph (1) and take appro23 priate action if programs or projects do not comply with

24 such paragraph, including withholding of funds.
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1 ‘‘(g) A State shall ensure, to the maximum extent

2 possible, family participation in the receipt of services pro3 vided under section 501(a)(1) and shall ensure that an

4 entity that receives funds under this title shall comply with

5 any State law that requires—

6 ‘‘(1) involvement of a family member prior to

7 the provision of services related to family planning

8 or abortion; and

9 ‘‘(2) reporting of civil or criminal offenses in10 volving child abuse or statutory rape.

11 ‘‘(h) The acceptance by any individual of family plan12 ning services or family planning or population growth in13 formation (including educational materials) provided

14 through financial assistance under this title shall be vol15 untary and shall not be a prerequisite to eligibility for or

16 receipt of any other service or assistance from, or to par17 ticipation in, any other program of the entity or individual

18 that provided such service or information.’’.

19 SEC. 315. APPLICATION FOR BLOCK GRANT FUNDS.

20 Section 505(a)(5) (42 U.S.C. 705(a)(5)) is amend21 ed—

22 (1) by striking ‘‘and’’ at the end of subpara23 graph (E);

24 (2) by redesignating subparagraph (F) as sub25 paragraph (H); and
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1 (3) by inserting after subparagraph (E) the fol2 lowing subparagraphs:

3 ‘‘(F) the State will provide a description of

4 how the applicant will, as appropriate to the

5 provision of family planning services or services

6 provided under section 501(e)(1)(A)—

7 ‘‘(i) involve families of adolescents in

8 a manner that will maximize the role of

9 the family in the solution of problems re10 lating to the parenthood or pregnancy of

11 the adolescent; and

12 ‘‘(ii) involve religious and charitable

13 organizations, voluntary associations, and

14 other groups in the private sector as well

15 as services provided by publicly sponsored

16 initiatives; and

17 ‘‘(G)(i) the State will provide assurances

18 that—

19 ‘‘(I) except as provided in clause (ii),

20 and subject to subclause (II), the applicant

21 will notify the parents or guardians of any

22 unemancipated minor requesting services

23 from the applicant and will obtain the per24 mission of such parents or guardians with
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1 respect to the provision of such services;

2 and

3 ‘‘(II) in the case of a pregnant

4 unemancipated minor requesting services

5 from a recipient of funds under this title,

6 the recipient will notify the parents or

7 guardians of such minor under subclause

8 (I) within a reasonable period of time; and

9 ‘‘(ii) the State will provide assurances that

10 the applicant will not notify or request the per11 mission of the parent or guardian of any

12 unemancipated minor without the consent of

13 the minor—

14 ‘‘(I) who solely is requesting from the

15 applicant pregnancy testing or testing or

16 treatment for venereal disease;

17 ‘‘(II) who is the victim of incest in18 volving a parent; or

19 ‘‘(III) if an adult sibling of the minor

20 or an adult aunt, uncle, or grandparent

21 who is related to the minor by blood cer22 tifies to the recipient that notification of

23 the parent or guardian of such minor

24 would result in physical injury to such

25 minor.’’.
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1 SEC. 316. REPORTS AND AUDITS.

2 (a) REPORT BY STATE.—Section 506(a)(2) (42

3 U.S.C. 706(a)(2)) is amended by inserting after subpara4 graph (E) the following new subparagraph:

5 ‘‘(F) Information (as prescribed by the Sec6 retary) on the State’s activities in connection with

7 the services described in section 501(a)(1)(E).’’.

8 (b) REPORT BY SECRETARY.—Section 506(a)(3) (42

9 U.S.C. 706(a)(3)) is amended—

10 (1) in subparagraph (D), by striking ‘‘and’’ at

11 the end;

12 (2) in subparagraph (E), by striking the period

13 at the end and inserting ‘‘; and’’; and

14 (3) by adding at the end the following new sub15 paragraph:

16 ‘‘(F) information on the State’s activities in

17 connection with the services described in section

18 501(a)(1)(E).’’.

19 SEC. 317. EVALUATION.

20 Title V (42 U.S.C. 701 et seq.) is amended by adding

21 at the end the following new section:

22 ‘‘EVALUATION

23 ‘‘SEC. 510. (a) Of amounts allotted to a State under

24 section 502(c) in a fiscal year that the State estimates

25 will be expended on family planning services and the serv-
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1 ices described in section 501(a)(1)(E) for such year the

2 State shall reserve—

3 ‘‘(1) not less than 2 percent and not more than

4 4 percent of such amounts for an annual evaluation

5 of activities carried out under this title and the ef6 fectiveness of such activities in reducing sexual activ7 ity, pregnancies, and births among unmarried indi8 viduals, particularly adolescents; and

9 ‘‘(2) not less than 2 percent and not more than

10 4 percent of such amounts for an annual longitu11 dinal study by an independent research organization

12 of the activities carried out under this title and the

13 effectiveness of such activities in reducing sexual ac14 tivity, pregnancies, and births among unmarried in15 dividuals, particularly adolescents.

16 ‘‘(b)(1) Each State shall submit the evaluations and

17 studies conducted under this section to the Secretary.

18 ‘‘(2) The Secretary shall submit a summary of each

19 evaluation and study submitted under paragraph (1) to

20 the appropriate committees of the Congress.’’.

21 SEC. 318. REPEAL OF CERTAIN PROGRAMS.

22 (a) REPEAL OF POPULATION RESEARCH AND VOL23 UNTARY FAMILY PLANNING PROGRAMS.—Title X of the

24 Public Health Service Act (42 U.S.C. 300 et seq.) is re25 pealed.
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1 (b) REPEAL OF ADOLESCENT FAMILY LIFE DEM2 ONSTRATION PROJECTS.—Title XX of the Public Health

3 Service Act (42 U.S.C. 300z et seq.) is repealed.

4 SEC. 319. EFFECTIVE DATE.

5 This subtitle and the amendments made by this sub6 title shall take effect on October 1, 1996.

7 Subtitle C—Character

8 Development

9 SEC. 321. PURPOSES.

10 The purposes of this subtitle are—

11 (1) to reduce the school dropout rate for at-risk

12 youth;

13 (2) to improve the academic performance of at14 risk youth; and

15 (3) to reduce juvenile delinquency and gang

16 participation.

17 SEC. 322. DEFINITIONS.

18 For the purposes of this subtitle—

19 (1) the term ‘‘at-risk youth’’ means a youth at

20 risk of—

21 (A) educational failure;

22 (B) dropping out of school; or

23 (C) involvement in delinquent activities;

24 (2) the term ‘‘eligible local educational agency’’

25 means a local educational agency that has entered
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1 into a partnership, with a community-based organi2 zation that provides one-to-one mentoring services,

3 to carry out the authorized activities described in

4 section 325 in accordance with this subtitle;

5 (3) the terms ‘‘elementary school’’, ‘‘local edu6 cational agency’’, and ‘‘secondary school’’, have the

7 meanings given such terms in section 14101 of the

8 Elementary and Secondary Education Act of 1965

9 (20 U.S.C. 8801);

10 (4) the term ‘‘mentor’’ means a person who

11 works with an at-risk youth on a one-to-one basis,

12 to establish a supportive relationship with the youth

13 and to provide the youth with academic assistance

14 and exposure to new experiences that enhance the

15 youth’s ability to become a better student and a re16 sponsible citizen; and

17 (5) the term ‘‘Secretary’’ means the Secretary

18 of Education.

19 SEC. 323. MENTORING PROGRAMS.

20 (a) GRANT AUTHORITY.—The Secretary is author21 ized to award grants to eligible local educational agencies

22 to enable such agencies to establish mentoring programs

23 that—

24 (1) are designed to link—

25 (A) individual at-risk youth; with
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1 (B) responsible, individual adults who

2 serve as mentors; and

3 (2) are intended to—

4 (A) increase at-risk youth participation in,

5 and enhance the ability of such youth to benefit

6 from, elementary and secondary education;

7 (B) discourage at-risk youth from—

8 (i) using illegal drugs;

9 (ii) violence;

10 (iii) using dangerous weapons;

11 (iv) criminal activity not described in

12 clauses (i), (ii), and (iii); and

13 (v) involvement in gangs;

14 (C) promote personal and social respon15 sibility among at-risk youth;

16 (D) encourage at-risk youth participation

17 in community service and community activities;

18 or

19 (E) provide general guidance to at-risk

20 youth.

21 (b) AMOUNT AND DURATION.—Each grant under

22 this section shall be awarded in an amount not to exceed

23 a total of $200,000 over a period of not more than three

24 years.
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1 (c) PRIORITY.—The Secretary shall give priority to

2 awarding a grant under this section to an application sub3 mitted under section 327 that—

4 (1) describes a mentoring program in which 60

5 percent or more of the at-risk youth to be served are

6 eligible for assistance under part A of title I of the

7 Elementary and Secondary Education Act of 1965

8 (20 U.S.C. 6311 et seq.);

9 (2) describes a mentoring program that serves

10 at-risk youth who are—

11 (A) at risk of dropping out of school; or

12 (B) involved in delinquent activities; and

13 (3) demonstrates the ability of the eligible local

14 educational agency to continue the mentoring pro15 gram after the termination of the Federal funds pro16 vided under this section.

17 (d) OTHER CONSIDERATIONS.—In awarding grants

18 under this section, the Secretary shall give consideration

19 to—

20 (1) providing an equitable geographic distribu21 tion of such grants, including awarding such grants

22 for mentoring programs in both rural and urban

23 areas;
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1 (2) the quality of the mentoring program de2 scribed in the application submitted under section

3 327, including—

4 (A) the resources, if any, that will be dedi5 cated to providing participating at-risk youth

6 with opportunities for job training or post7 secondary education; and

8 (B) the degree to which parents, teachers,

9 community-based organizations, and the local

10 community participate in the design and imple11 mentation of the mentoring program; and

12 (3) the capability of the eligible local edu13 cational agency to effectively implement the

14 mentoring program.

15 SEC. 324. IMPLEMENTATION AND EVALUATION GRANTS.

16 The Secretary is authorized to award grants to na17 tional organizations or agencies serving youth to enable

18 such organizations or agencies—

19 (1) to conduct a multisite demonstration

20 project, involving 5 to 10 project sites, that—

21 (A) provides an opportunity to compare

22 various one-to-one mentoring models for the

23 purpose of evaluating the effectiveness and effi24 ciency of such models;
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1 (B) allows for innovative programs de2 signed under the oversight of a national organi3 zation or agency serving youth, which programs

4 may include—

5 (i) technical assistance;

6 (ii) training; and

7 (iii) research and evaluation; and

8 (C) disseminates the results of such dem9 onstration project to allow for the determina10 tion of the best practices for various mentoring

11 programs;

12 (2) to develop and evaluate screening standards

13 for school-linked mentoring programs; and

14 (3) to develop and evaluate volunteer recruit15 ment activities for school-linked mentoring pro16 grams.

17 SEC. 325. AUTHORIZED ACTIVITIES.

18 (a) PERMITTED USES.—Grant funds awarded under

19 this subtitle (other than grant funds awarded under sec20 tion 324) shall be used for—

21 (1) hiring of mentoring coordinators and sup22 port staff;

23 (2) recruitment, screening and training of adult

24 mentors;
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1 (3) reimbursement of mentors for reasonable

2 incidental expenditures, such as transportation, that

3 are directly associated with mentoring, except that

4 such expenditures shall not exceed $500 per mentor

5 per calendar year; or

6 (4) such other purposes as the Secretary deter7 mines may be reasonable.

8 (b) PROHIBITED USES.—Grant funds awarded under

9 this subtitle shall not be used—

10 (1) to directly compensate a mentor, except as

11 provided under subsection (a)(3);

12 (2) to obtain educational or other materials or

13 equipment that would otherwise be used in the ordi14 nary course of the grant recipient’s operations;

15 (3) to support litigation; or

16 (4) for any other purposes that the Secretary

17 determines are prohibited.

18 SEC. 326. REGULATIONS AND GUIDELINES.

19 (a) REGULATIONS.—The Secretary, after consulta20 tion with the Secretary of Health and Human Services,

21 the Attorney General, and the Secretary of Labor, shall

22 provide for the promulgation of regulations to implement

23 this subtitle.

24 (b) GUIDELINES.—The Secretary shall develop and

25 distribute to eligible local educational agencies receiving
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1 a grant under section 323 specific model guidelines for

2 the screening of mentors.

3 SEC. 327. APPLICATIONS.

4 (a) IN GENERAL.—Each entity desiring a grant

5 under this subtitle shall submit an application to the Sec6 retary at such time, in such manner, and accompanied by

7 such information as the Secretary may reasonably require.

8 (b) MENTORING PROGRAMS.—Each application sub9 mitted under subsection (a) for a grant under section 323

10 shall contain—

11 (1) information on the at-risk youth expected to

12 be served;

13 (2) a provision describing the mechanism for

14 matching at-risk youth with mentors based on the

15 needs of the at-risk youth;

16 (3) an assurance that no mentor will be as17 signed to more than one at-risk youth, so as to en18 sure a one-to-one mentoring relationship;

19 (4) an assurance that a mentoring program op20 erated in a secondary school will provide at-risk

21 youth with a variety of experiences and support, in22 cluding—

23 (A) an opportunity to spend time in a work

24 environment and, when possible, participate in

25 the work environment;
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1 (B) an opportunity to witness the job skills

2 that will be required for the at-risk youth to ob3 tain employment upon graduation;

4 (C) assistance with homework assignments;

5 and

6 (D) exposure to experiences that the at7 risk youth might not otherwise encounter;

8 (5) an assurance that the mentoring program

9 operated in elementary schools will provide at-risk

10 youth with—

11 (A) academic assistance;

12 (B) exposure to new experiences and ac13 tivities that at-risk youth might not encounter

14 on their own; and

15 (C) emotional support;

16 (6) an assurance that the mentoring program

17 will be monitored to ensure that each at-risk youth

18 participating in the mentoring program benefits

19 from a mentor relationship, including providing a

20 new mentor assignment if the original mentoring re21 lationship is not beneficial to the at-risk youth;

22 (7) the methods by which mentors and at-risk

23 youth will be recruited to the mentoring program;

24 (8) the method by which prospective mentors

25 will be screened; and
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1 (9) the training that will be provided to men2 tors.

3 SEC. 328. EVALUATION.

4 (a) EVALUATION.—The Comptroller General of the

5 United States shall enter into a contract, with an evaluat6 ing organization that has demonstrated experience in con7 ducting evaluations, for the conduct of an ongoing rigor8 ous evaluation of the programs and activities assisted

9 under this subtitle.

10 (b) EVALUATION CRITERIA.—The Comptroller Gen11 eral of the United States, in consultation with the Sec12 retary, shall establish minimum criteria for evaluating the

13 programs and activities assisted under this subtitle. Such

14 criteria shall provide for a description of the implementa15 tion of each program or activity assisted under this sub16 title and such program or activity’s effect on all partici17 pants, schools, communities, and youth served by such

18 program or activity.

19 SEC. 329. REPORTS.

20 (a) REPORT BY GRANT RECIPIENTS.—Each entity

21 receiving a grant under this subtitle shall submit to the

22 evaluating organization entering into the contract under

23 section 328(a)(1) an annual report regarding any program

24 or activity assisted under this subtitle. Each such report

25 shall be submitted at such a time, in such a manner, and
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1 accompanied by such information, as such evaluating or2 ganization may require.

3 (b) REPORTS BY COMPTROLLER GENERAL.—The

4 Comptroller General shall submit to Congress not later

5 than September 30, 1999, a report regarding the success

6 and effectiveness of grants awarded under this subtitle in

7 reducing the school dropout rate, improving academic per8 formance of at-risk youth, and reducing juvenile delin9 quency and gang participation.

10 SEC. 330. AUTHORIZATION OF APPROPRIATIONS.

11 (a) MENTORING PROGRAMS.—There is authorized to

12 be appropriated $35,000,000 for each of the fiscal years

13 1997, 1998, 1999, 2000, and 2001 to carry out section

14 323.

15 (b) IMPLEMENTATION AND EVALUATION GRANTS.—

16 There is authorized to be appropriated $5,000,000 for

17 each of the fiscal years 1997, 1998, 1999, 2000, and 2001

18 to carry out section 324.

19 Subtitle D—Family Reconciliation

20 SEC. 331. SET-ASIDE FOR STATES WITH APPROVED FAMILY

21 RECONCILIATION PLANS.

22 (a) IN GENERAL.—

23 (1) SET-ASIDE.—Section 430(d) of the Social

24 Security Act (42 U.S.C. 629(d)) is amended by add25 ing at the end the following new paragraph:
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1 ‘‘(4) FAMILY RECONCILIATION.—The Secretary

2 shall reserve 10 percent of the amounts described in

3 subsection (b) for each fiscal year, for allotment to

4 States with family reconciliation plans approved

5 under section 432(c)(3) to develop and conduct

6 counseling programs described in section

7 432(c)(2)(B).’’.

8 (2) ASSISTANCE IN DEVELOPING FAMILY REC9 ONCILIATION COUNSELING PROGRAMS.—Section

10 430(d)(1) of such Act (42 U.S.C. 629(d)(1)) is

11 amended—

12 (A) in subparagraph (A), by striking

13 ‘‘and’’ at the end;

14 (B) in subparagraph (B), by striking the

15 period at the end and inserting ‘‘; and’’; and

16 (C) by adding at the end the following new

17 subparagraph:

18 ‘‘(C) in assisting States in developing and

19 operating counseling programs described in sec20 tion 432(c)(2)(B).’’.

21 (3) FAMILY RECONCILIATION PLANS.—Section

22 432 of such Act (42 U.S.C. 629(b)) is amended by

23 adding at the end the following new subsection:

24 ‘‘(c) FAMILY RECONCILIATION PLANS.—
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1 ‘‘(1) PLAN REQUIREMENTS.—A State family

2 reconciliation plan meets the requirements of this

3 paragraph if the plan demonstrates that the State

4 has in effect the laws referred to in paragraph (2).

5 ‘‘(2) SATISFACTION OF PLAN REQUIRE6 MENTS.—In order to satisfy paragraph (1), a State

7 must have in effect laws requiring that, prior to a

8 final dissolution of marriage of a couple who have

9 one or more children under 12 years of age, the cou10 ple shall be required to—

11 ‘‘(A) undergo a minimum 60-day waiting

12 period beginning on the date dissolution docu13 ments are filed; and

14 ‘‘(B) participate in counseling programs

15 offered by a public or private counseling service

16 that includes discussion of the psychological

17 and economic impact of the divorce on the cou18 ple, the children of the couple, and society.’’.

19 ‘‘(3) APPROVAL OF PLANS.—The Secretary

20 shall approve a plan that meets the requirements of

21 paragraph (1).’’.

22 (4) ALLOTMENT.—Section 433 of such Act (42

23 U.S.C. 633) is amended by adding at the end the

24 following new subsection:
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1 ‘‘(d) ALLOTMENTS TO STATES WITH APPROVED

2 FAMILY RECONCILIATION PLANS.—

3 ‘‘(1) IN GENERAL.—From the amount reserved

4 pursuant to section 430(d)(4) for any fiscal year,

5 the Secretary shall allot to each State (other than an

6 Indian tribe) with a family reconciliation plan ap7 proved under section 432(c)(3), an amount that

8 bears the same ratio to the amount reserved under

9 such section as the average annual number of final

10 dissolutions of marriage described in paragraph (2)

11 in the State for the 3 fiscal years referred to in sub12 section (c)(2)(B) bears to the average annual num13 ber of such final dissolutions of marriage in such 3-

14 year period in all States with family reconciliation

15 plans approved under section 432(c)(3).

16 ‘‘(2) FINAL DISSOLUTIONS OF MARRIAGE DE17 SCRIBED.—For purposes of paragraph (1), a final

18 dissolution of marriage described in this paragraph

19 is a final dissolution of marriage of a couple who

20 have one or more children under 12 years of age.’’.

21 (5) ENTITLEMENT.—

22 (A) IN GENERAL.—Section 434(a) of such

23 Act (42 U.S.C. 629d(a)) is amended by adding

24 at the end the following new paragraph:
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1 ‘‘(3) FAMILY RECONCILIATION AMOUNT.—Each

2 State with a family reconciliation plan approved

3 under section 432(c)(3) shall be entitled to an

4 amount equal to the allotment of the State under

5 section 433(d) for the fiscal year.

6 (B) CONFORMING AMENDMENT.—Section

7 434(a) of such Act (42 U.S.C. 629d(a)) is

8 amended by striking ‘‘paragraph (2)’’ and in9 serting ‘‘paragraphs (2) and (3)’’.

10 (b) EFFECTIVE DATE.—The amendments made by

11 subsection (a) shall take effect on October 1, 1996.

12 SEC. 332. USE OF FUNDS UNDER LEGAL SERVICES COR13 PORATION ACT.

14 Section 1007(b) of the Legal Services Corporation

15 Act (42 U.S.C. 2996f(b)) is amended—

16 (1) in paragraph (9), by striking ‘‘; or’’ and in17 serting a semicolon;

18 (2) in paragraph (10), by striking the period

19 and inserting ‘‘; or’’; and

20 (3) by adding at the end the following:

21 ‘‘(11) to provide legal assistance to an eligible

22 client with respect to a proceeding or litigation in

23 which the client seeks to obtain a dissolution of a

24 marriage or a legal separation from a spouse, except

25 that nothing in this paragraph shall prohibit a recip-
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1 ient from providing legal assistance to the client

2 with respect to the proceeding or litigation if a court

3 of appropriate jurisdiction has determined that the

4 spouse has physically or mentally abused the cli5 ent.’’.

6 Subtitle E—Mentor Schools

7 SEC. 341. MENTOR SCHOOLS.

8 (a) SHORT TITLE.—This subtitle may be cited as the

9 ‘‘Mentor Schools Act’’.

10 (b) FINDINGS.—The Congress finds that—

11 (1) while low-income students have made sig12 nificant gains with respect to educational achieve13 ment and attainment, considerable gaps still persist

14 for these students in comparison to those from more

15 affluent socio-economic backgrounds;

16 (2) our Nation has a compelling interest in as17 suring that all children receive a high quality edu18 cation;

19 (3) new methods and experiments to revitalize

20 the educational achievement of, and opportunities

21 for, low-income individuals must be a part of any

22 comprehensive solution to the problems in our Na23 tion’s educational system;
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1 (4) successful educational alternatives should be

2 widely implemented to better the education of low3 income individuals;

4 (5) preliminary research shows that same gen5 der schools produce promising academic and behav6 ioral improvements in both sexes for low-income,

7 educationally disadvantaged students;

8 (6) in recent years efforts to experiment with

9 same gender schools have been inhibited by lawsuits

10 and threats of lawsuits by private groups as well as

11 governmental entities; and

12 (7) same gender public schools are a legal edu13 cational alternative to coeducational elementary and

14 secondary schools and are not prohibited under the

15 regulations under title IX of the Education Amend16 ments of 1972 (20 U.S.C. 1681 et seq.), as such

17 regulations were in effect on the day preceding the

18 date of enactment of this Act, so long as—

19 (A) comparable courses, services and facili20 ties are available to students of each sex; and

21 (B) the same policies and criteria for ad22 mission to such schools are used for both sexes.

23 (c) CONSTRUCTION.—Section 901 of the Education

24 Amendments of 1972 (20 U.S.C. 1681) is amended by

25 adding at the end the following new subsection:
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1 ‘‘(d) Nothing in this section shall be construed to pro2 hibit the establishment or operation of a same gender pub3 lic elementary or secondary school if—

4 ‘‘(1) comparable courses, services and facilities

5 are available to students of each sex; and

6 ‘‘(2) the same policies and criteria for admis7 sion to such schools are used for both sexes.’’.

8 Subtitle F—Role Models Academy

9 SEC. 351. PURPOSE; DEFINITIONS.

10 (a) PURPOSE.—The purpose of this subtitle is to es11 tablish a Role Models Academy that—

12 (1) serves as a model, residential, military style

13 magnet school for at-risk youth from around the Na14 tion who cease to attend secondary school before

15 graduation from secondary school; and

16 (2) will foster a student’s growth and develop17 ment by providing a residential, controlled environ18 ment conducive for developing leadership skills, self19 discipline, citizenship, and academic and vocational

20 excellence in a structured living and learning envi21 ronment.

22 (c) DEFINITIONS.—For the purpose of this subtitle—

23 (1) the term ‘‘Academy’’ means the academy

24 established under section 353;
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1 (2) the term ‘‘former member of the Armed

2 Forces’’ means any individual who was discharged or

3 released from service in the Armed Forces under

4 honorable conditions;

5 (3) the term ‘‘local educational agency’’ has the

6 meaning given that term in section 14101 of the El7 ementary and Secondary Education Act of 1965 (20

8 U.S.C. 8801);

9 (4) the term ‘‘secondary school’’ has the mean10 ing given that term in section 14101 of the Elemen11 tary and Secondary Education Act of 1965 (20

12 U.S.C. 8801); and

13 (5) the term ‘‘Secretary’’ means the Secretary

14 of Education.

15 SEC. 352. OBJECTIVES.

16 The objectives of this subtitle are as follows:

17 (1) To provide a comprehensive, coherent, inte18 grated, high quality, cost-effective, residential, edu19 cation and vocational training academy for the Na20 tion’s at-risk youth, designed to meet the entrance

21 demands of colleges and universities and the needs

22 of employers.

23 (2) To establish a comprehensive, national part24 nership investment model among the Federal Gov-
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1 ernment, States, corporate America, and colleges

2 and universities.

3 (3) To provide for community partnerships

4 among local community leaders, businesses, and

5 churches to provide mentoring to Academy students.

6 (4) To provide for a community partnership be7 tween the Academy and the local school system

8 under which model Academy students will serve as

9 mentors to at-risk youth who are attending school to

10 provide such in-school at-risk youth with valuable in11 struction and insights regarding—

12 (A) the prevention of drug use and crime;

13 (B) self-restraint; and

14 (C) conflict resolution skills.

15 (5) To provide Academy students with—

16 (A) the tools to become productive citizens;

17 (B) learning skills;

18 (C) traditional, moral, ethical, and family

19 values;

20 (D) work ethics;

21 (E) motivation;

22 (F) self-confidence; and

23 (G) pride.

24 (6) To provide employment opportunities at the

25 Academy for former members of the Armed Forces
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1 and participants in the program assisted under sec2 tion 1151 of title 10, United States Code (Troops

3 to Teachers Program).

4 (7) To make the Academy available, upon dem5 onstration of success, for expansion or duplication

6 throughout every State, through block grant funding

7 or other means.

8 SEC. 353. ACADEMY ESTABLISHED.

9 The Secretary shall carry out a demonstration pro10 gram under which the Secretary establishes a four-year,

11 residential, military style academy—

12 (1) that shall offer at-risk youth secondary

13 school coursework and vocational training, and that

14 may offer precollegiate coursework;

15 (2) that focuses on the education and vocational

16 training of youth at risk of delinquency or dropping

17 out of secondary school;

18 (3) whose teachers are primarily composed of

19 former members of the Armed Forces or partici20 pants in the program assisted under section 1151 of

21 title 10, United States Code (Troops to Teachers

22 Program), if such former members or participants

23 are qualified and trained to teach at the Academy;

24 (4) that operates a mentoring program that—
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1 (A) utilizes mentors from all sectors of so2 ciety to serve as role models for Academy stu3 dents;

4 (B) provides, to the greatest extent pos5 sible, one-to-one mentoring relationships be6 tween mentors and Academy students; and

7 (C) involves mentors providing academic

8 tutoring, advice, career counseling, and role

9 models;

10 (5) that may contain a Junior Reserve Officers’

11 Training Corps unit established in accordance with

12 section 2031 of title 10, United States Code;

13 (6) that is housed on the site of any military in14 stallation closed pursuant to a base closure law; and

15 (7) if the Secretary determines that the Acad16 emy is effective, that serves as a model for similar

17 military style academies throughout the United

18 States.

19 SEC. 354. AUTHORIZATION.

20 There are authorized to be appropriated $30,000,000

21 for fiscal year 1997 and such sums as may be necessary

22 for each of the fiscal years 1998, 1999, 2000, and 2001

23 to carry out this subtitle.
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1 Subtitle G—Kinship Care

2 SEC. 361. KINSHIP CARE DEMONSTRATION.

3 (a) GRANTS.—The Secretary of Health and Human

4 Services (hereafter referred to in this subtitle as the ‘‘Sec5 retary’’) shall award grants to States for demonstration

6 projects to assist such States in developing or implement7 ing procedures to use adult relatives as the preferred

8 placement for children removed from their parents, so long

9 as—

10 (1) such relatives are determined to be capable

11 of providing a safe, nurturing environment for the

12 child; or

13 (2) such relatives comply with all relevant Fed14 eral and State child protection standards.

15 (b) REQUIREMENTS.—To be eligible to receive a

16 grant under subsection (a), a State shall—

17 (1) agree to, at a minimum, provide a needs18 based payment and supportive services, as appro19 priate, with respect to children in a kinship care ar20 rangement;

21 (2) agree to give preference to adult relatives

22 who meet applicable adoption standards in making

23 adoption placements;
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1 (3) establish such procedures as may be nec2 essary to ensure the safety of children who are

3 placed with adult relatives; and

4 (4) establish such procedures as may be nec5 essary to ensure that reasonable efforts will be made

6 prior to the placement of a child in foster care to

7 give notice to an adult relative (including a maternal

8 or paternal grandparent, sibling, aunt, or uncle who

9 might be available to care for the child).

10 (c) EVALUATION.—The Secretary shall, directly or

11 through contracts with public or private entities, provide

12 for the conduct of evaluations of demonstration projects

13 carried out under subsection (a) and for the dissemination

14 of information developed as a result of such projects.

15 SEC. 362. PROCEDURES TO PLACE CHILDREN WITH REL16 ATIVES.

17 A State that receives a grant under this subtitle shall

18 develop procedures to ensure that reasonable efforts will

19 be made prior to the placement of a child in foster care,

20 to provide notice to a relative (including a maternal or

21 fraternal grandparent, adult sibling, aunt, or uncle) who

22 might be available to care for the child.
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1 SEC. 363. AUTHORIZATION OF APPROPRIATIONS.

2 There are authorized to be appropriated to carry out

3 this Act $30,000,000 for each of the fiscal years 1997,

4 1998, and 1999.

Æ