‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), an individual development
account is exempt from taxation under this title
unless such account has ceased to be an individ-
ual development account by reason of para-
graph (2). Notwithstanding the preceding sen-
tence, any such account is subject to the taxes
imposed by section 511 (relating to imposition
of tax on unrelated business income of chari-
table, etc. organizations).
‘‘(B) 
CERTAIN
EARNINGS
TAXED
AS
GRANTOR TRUST.—An eligible individual shall
be treated for purposes of this title as the
owner of the individual development account es-
tablished by or on behalf of such individual and
shall be subject to tax thereon with respect to
the earnings attributable to contributions made
to the account by the eligible individual in ac-
cordance with subpart E of part I of subchapter
J of this chapter (relating to grantors and oth-
ers treated as substantial owners).
‘‘(2) LOSS OF EXEMPTION OF ACCOUNT WHERE
INDIVIDUAL
ENGAGES
IN
PROHIBITED
TRANS-
ACTION.—
‘‘(A) IN GENERAL.—If an eligible individ-
ual or qualified entity engages in any trans-
action prohibited by section 4975 with respect
to such individual’s account, the account shall
cease to be an individual development account
as of the 1st day of the taxable year of such in-
dividual during which such transaction occurs.
‘‘(B) ACCOUNT TREATED AS DISTRIBUTING
ALL ITS ASSETS.—In any case in which any ac-
count ceases to be an individual development
account by reason of subparagraph (A) as of
the 1st day of any taxable year—
‘‘(i) all assets in the account on such
1st day which are attributable to assist-
ance provided under section 222(g) of the
Project for American Renewal Act shall be
paid into the general fund of the Treasury
of the United States, and
‘‘(ii) the remaining assets shall be
treated as distributed on such 1st day.
‘‘(3) EFFECT OF PLEDGING ACCOUNT AS SECU-
RITY.—If, during any taxable year, an eligible indi-
vidual or qualified entity uses such individual’s ac-
count or any portion thereof as security for a loan—
100
‘‘(A) an amount equal to the part of the
portion so used which is attributable to assist-
ance provided under section 222(g) of the
Project for American Renewal Act shall be paid
into the general fund of the Treasury of the
United States, and
‘‘(B) the remaining part of the portion so
used shall be treated as distributed to the eligi-
ble individual.
‘‘(4) EFFECT OF LIEN OR OTHER SEIZURE OF
ACCOUNT.—If, during any taxable year, a lien is
placed on an individual development account, or the
account is otherwise seized pursuant to legal or ad-
ministrative process—
‘‘(A) an amount equal to the part of the
portion so seized which is attributable to assist-
ance provided under section 222(g) of the
Project for American Renewal Act shall be paid
into the general fund of the Treasury of the
United States, and
‘‘(B) the remaining part of the portion so
seized shall be treated as distributed to the eli-
gible individual.
‘‘(f) ADDITIONAL TAX ON CERTAIN AMOUNTS IN-
CLUDED IN GROSS INCOME.—
101
‘‘(1) DISTRIBUTION NOT USED FOR QUALIFIED
EXPENSES.—In the case of any payment or distribu-
tion not used exclusively to pay qualified expenses
incurred by the eligible individual for whose benefit
the individual development account is established,
the tax liability of each payee or distributee under
this chapter for the taxable year in which the pay-
ment or distribution is received shall be increased by
an amount equal to 10 percent of the amount of the
payment or distribution.
‘‘(2) DISABILITY OR DEATH CASES.—Paragraph
(1) shall not apply if the payment or distribution is
made after the individual for whose benefit the indi-
vidual development account becomes disabled within
the meaning of section 72(m)(7) or dies.
‘‘(g) COMMUNITY PROPERTY LAWS.—This section
shall be applied without regard to any community property
laws.
‘‘(h) CUSTODIAL ACCOUNTS.—For purposes of this
section, a custodial account shall be treated as a trust if
the assets of such account are held by a bank (as defined
in section 408(n)) or another person who demonstrates,
to the satisfaction of the Secretary, that the manner in
which such person will administer the account will be con-
sistent with the requirements of this section, and if the
102
custodial account would, except for the fact that it is not
a trust, constitute an individual development account de-
scribed in subsection (c)(2). For purposes of this title, in
the case of a custodial account treated as a trust by reason
of the preceding sentence, the custodian of such account
shall be treated as the trustee thereof.
‘‘(i) REPORTS.—The trustee of an individual develop-
ment account shall—
‘‘(1) prepare reports regarding the account with
respect to contributions, distributions, and any other
matter required by the Secretary under regulations,
and
‘‘(2) submit such reports, at the time and in
the manner prescribed by the Secretary in regula-
tions, to—
‘‘(A) the eligible individual for whose bene-
fit the account is maintained,
‘‘(B) the qualified entity providing assist-
ance to the individual under section 222(g) of
the Project for American Renewal Act, and
‘‘(C) the Secretary.’’
(b) DEDUCTION
ALLOWED AGAINST
GROSS IN-
COME.—Subsection (a) of section 62 (defining adjusted
gross income) is amended by inserting after paragraph
(15) the following new paragraph:
103
‘‘(16) INDIVIDUAL DEVELOPMENT ACCOUNTS.—
Except as provided in section 529, contributions to
an individual development account established to
provide assistance to the taxpayer under section
222(g) of the Project for American Renewal Act.’’
(c) CONTRIBUTION NOT SUBJECT TO GIFT TAX.—
Section 2503 of such Code (relating to taxable gifts) is
amended by adding at the end the following new sub-
section:
‘‘(h) INDIVIDUAL DEVELOPMENT ACCOUNTS.—Any
contribution made by an individual or qualified entity to
an individual development account described in section
529(c)(2) shall not be treated as a transfer of property
by gift for purposes of this chapter.’’
(d) TAX ON PROHIBITED TRANSACTIONS.—Section
4975 of such Code (relating to prohibited transactions)
is amended—
(1) by adding at the end of subsection (c) the
following new paragraph:
‘‘(4) SPECIAL RULE FOR INDIVIDUAL DEVELOP-
MENT ACCOUNTS.—An eligible individual for whose
benefit an individual development account is estab-
lished and any contributor to such account shall be
exempt from the tax imposed by this section with re-
spect to any transaction concerning such account
104
(which would otherwise be taxable under this sec-
tion) if, with respect to such transaction, the ac-
count ceases to be an individual development ac-
count by reason of the application of section
529(e)(2)(A) to such account.’’, and
(2) by inserting ‘‘, an individual development
account described in section 529(c)(2),’’ in sub-
section (e)(1) after ‘‘described in section 408(a)’’.
(e) FAILURE TO PROVIDE REPORTS ON INDIVIDUAL
DEVELOPMENT ACCOUNTS.—Section 6693 of such Code
(relating to failure to provide reports on individual retire-
ment accounts or annuities) is amended—
(1) by inserting ‘‘OR ON INDIVIDUAL DEVEL-
OPMENT ACCOUNTS’’ after ‘‘ANNUITIES’’ in the
heading of such section, and
(2) by adding at the end of subsection (a) the
following new sentence: ‘‘The person required by sec-
tion 529(i) to file a report regarding an individual
development account at the time and in the manner
required by such section shall pay a penalty of $50
for each failure, unless it is shown that such failure
is due to reasonable cause.’’
(f) SPECIAL RULE FOR DETERMINING AMOUNTS OF
SUPPORT FOR DEPENDENT.—Subsection (b) of section
152 of such Code (relating to definition of dependent) is
105
amended by adding at the end the following new para-
graph:
‘‘(6) A distribution from an individual develop-
ment account described in section 529(c)(2) to the
eligible individual for whose benefit such account has
been established shall not be taken into account in
determining support for purposes of this section to
the extent such distribution is excluded from gross
income of such individual under section 529(d)(2).’’
(g) CLERICAL AMENDMENTS.—
(1) The table of parts for subchapter F of
chapter 1 of such Code is amended by inserting at
the end the following new item:
‘‘Part VIII. Individual development accounts.’’
(2) The table of sections for subchapter B of
chapter 68 of such Code is amended by striking the
item relating to section 6693 and inserting the fol-
lowing new item:
‘‘Sec. 6693. Failure to provide reports on individual retirement
accounts or annuities or on individual development
accounts.’’
(h) EFFECTIVE DATE.—The amendments made by
this section shall apply to contributions made after the
date of the enactment of this Act.
106
SEC. 224. FUNDS IN INDIVIDUAL DEVELOPMENT ACCOUNTS
OF 
DEMONSTRATION 
PROJECT 
PARTICI-
PANTS DISREGARDED FOR PURPOSES OF ALL
MEANS-TESTED FEDERAL PROGRAMS.
Notwithstanding any Federal law (other than the In-
ternal Revenue Code of 1986) that requires consideration
of 1 or more financial circumstances of an individual, for
the purpose of determining eligibility to receive, or the
amount of, any assistance or benefit authorized by such
law to be provided to or for the benefit of such individual,
funds (including interest accruing) in an individual devel-
opment account (as defined in section 529 of the Internal
Revenue Code of 1986, as added by section 223 of this
Act) shall be disregarded for such purpose with respect
to any period during which such individual participates in
a demonstration project conducted under section 222 of
this Act (or would be participating in such a project but
for the suspension of the project).
Subtitle D—Housing
PART I—URBAN HOMESTEADS
SEC. 231. URBAN HOMESTEAD PROVISIONS.
(a) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
(1) 
COMMUNITY
DEVELOPMENT
CORPORA-
TION.—The term ‘‘community development corpora-
tion’’ means a nonprofit organization whose primary
107
purpose is to promote community development by
providing housing opportunities to low-income fami-
lies.
(2) COST RECOVERY BASIS.—The term ‘‘cost
recovery basis’’ means, with respect to any sale of a
project or residence by a unit of general local gov-
ernment to a community development corporation
under subsection (b)(3)(B), that the purchase price
paid by the community development corporation is
less than or equal to the costs incurred by the unit
of general local government in connection with such
project or residence during the period beginning on
the date on which the unit of general local govern-
ment acquires title to the multifamily housing
project or residential property under subsection
(b)(1) and ending on the date on which the sale is
consummated.
(3) LOW-INCOME FAMILIES.—The term ‘‘low-in-
come families’’ has the same meaning as in section
3(b) of the United States Housing Act of 1937.
(4) MULTIFAMILY
HOUSING
PROJECT.—The
term ‘‘multifamily housing project’’ has the same
meaning as in section 203 of the Housing and Com-
munity Development Amendments of 1978.
108
(5) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Housing and Urban Development.
(6) SEVERE PHYSICAL PROBLEMS.—A dwelling
unit shall be considered to have ‘‘severe physical
problems’’ if such unit—
(A) lacks hot or cold piped water, a flush
toilet, or both a bathtub and a shower in the
unit, for the exclusive use of that unit;
(B) on not less than 3 separate occasions,
during the preceding winter months was uncom-
fortably cold for a period of more than 6 con-
secutive hours due to a malfunction of the heat-
ing system for the unit;
(C) has no functioning electrical service,
exposed wiring, any room in which there is not
a functioning electrical outlet, or has experi-
enced not less than 3 blown fuses or tripped
circuit breakers during the preceding 90-day
period;
(D) is accessible through a public hallway
in which there are no working light fixtures,
loose or missing steps or railings, and no eleva-
tor; or
(E) has severe maintenance problems, in-
cluding water leaks involving the roof, windows,
109
doors, basement, or pipes or plumbing fixtures,
holes or open cracks in walls or ceilings, severe
paint peeling or broken plaster, and signs of ro-
dent infestation.
(7) SINGLE
FAMILY
RESIDENCE.—The term
‘‘single family residence’’ means a 1- to 4-family
dwelling that is held by the Secretary.
(8) 
SUBSTANDARD
MULTIFAMILY
HOUSING
PROJECT.—A multifamily housing project is ‘‘sub-
standard’’ if not less than 25 percent of the dwelling
units of the project have severe physical problems.
(9) UNIT OF GENERAL LOCAL GOVERNMENT.—
The term ‘‘unit of general local government’’ has the
same meaning as in section 102(a) of the Housing
and Community Development Act of 1974.
(10) 
UNOCCUPIED
MULTIFAMILY
HOUSING
PROJECT.—The term ‘‘unoccupied multifamily hous-
ing project’’ means a multifamily housing project
that the unit of general local government certifies in
writing is not inhabited.
(b) DISPOSITION
OF
UNOCCUPIED
AND
SUB-
STANDARD PUBLIC HOUSING.—
(1) TRANSFER OF OWNERSHIP TO UNITS OF
GENERAL
LOCAL
GOVERNMENT.—Notwithstanding
section 203 of the Housing and Community Devel-
110
opment Amendments of 1978 or any other provision
of Federal law pertaining to the disposition of prop-
erty, the Secretary shall transfer ownership of any
unoccupied multifamily housing project, substandard
multifamily housing project, or other residential
property that is owned by the Secretary to the ap-
propriate unit of general local government for the
area in which the project or residence is located in
accordance with paragraph (2), if the unit of general
local government enters into an agreement with the
Secretary described in paragraph (3).
(2) TIMING.—
(A) IN GENERAL.—Any transfer of owner-
ship under paragraph (1) shall be completed—
(i) with respect to any multifamily
housing project owned by the Secretary
that is determined to be unoccupied or
substandard before the date of enactment
of this Act, not later than 1 year after that
date of enactment; and
(ii) with respect to any multifamily
housing project or other residential prop-
erty acquired by the Secretary on or after
the date of enactment of this Act, not later
than 1 year after the date on which the
111
project is determined to be unoccupied or
substandard or the residence is acquired,
as appropriate.
(B) SATISFACTION OF INDEBTEDNESS.—
Prior to any transfer of ownership under sub-
paragraph (A), the Secretary shall satisfy any
indebtedness incurred in connection with the
project or residence at issue, either by—
(i) cancellation of the indebtedness; or
(ii) reimbursing the unit of general
local government to which the project or
residence is transferred for the amount of
the indebtedness.
(3) SALE TO COMMUNITY DEVELOPMENT COR-
PORATIONS.—An agreement is described in this
paragraph if it is an agreement that requires a unit
of general local government to dispose of the multi-
family housing project or other residential property
in accordance with the following requirements:
(A) NOTIFICATION TO COMMUNITY DEVEL-
OPMENT
CORPORATIONS.—Not later than 30
days after the date on which the unit of general
local government acquires title to the multifam-
ily housing project or other residential property
under paragraph (1), the unit of general local
112
government shall notify community development
corporations located in the State in which the
project or residence is located—
(i) of such acquisition of title; and
(ii) that, during the 6-month period
beginning on the date on which such notifi-
cation is made, such community develop-
ment corporations shall have the exclusive
right under this subsection to make bona
fide offers to purchase the project or resi-
dence on a cost recovery basis.
(B) RIGHT OF FIRST REFUSAL.—During
the 6-month period described in subparagraph
(A)(ii)—
(i) the unit of general local govern-
ment may not sell or offer to sell the mul-
tifamily housing project or other residen-
tial property other than to a party notified
under subparagraph (A), unless each com-
munity development corporation notifies
the unit of general local government that
the corporation will not make an offer to
purchase the project or residence; and
(ii) the unit of general local govern-
ment shall accept a bona fide offer to pur-
113
chase the project or residence made during
such period if the offer is acceptable to the
unit of general local government, except
that a unit of general local government
may not sell a project or residence to a
community development corporation during
that 6-month period other than on a cost
recovery basis.
(C) OTHER DISPOSITION.—During the 6-
month period beginning on the expiration of the
6-month period described in subparagraph
(A)(ii), the unit of general local government
shall dispose of the multifamily housing project
or other residential property on a negotiated,
competitive bid, or other basis, on such terms
as the unit of general local government deems
appropriate.
(c) EXEMPTION FROM PROPERTY DISPOSITION RE-
QUIREMENTS.—No provision of the Multifamily Housing
Property Disposition Reform Act of 1994, or any amend-
ment made by that Act, shall apply to the disposition of
property in accordance with this section.
(d) TENANT LEASES.—This section shall not affect
the terms or the enforceability of any contract or lease
entered into before the date of enactment of this Act.
114
(e) PROCEDURES.—Not later than 6 months after the
date of enactment of this Act, the Secretary shall estab-
lish, by rule, regulation, or order, such procedures as may
be necessary to carry out this section.
PART II—MATERNITY SHELTER
SEC. 232. FINDINGS.
Congress finds that—
(1) pregnancy among unmarried teenagers is
one of the most difficult and far-reaching social
problems faced by the United States;
(2) in 1988, the most recent year for which sta-
tistics are available, 816,000 unmarried teenagers
became pregnant, and of such pregnancies, 44 per-
cent ended in abortion, 12 percent in miscarriage or
still birth, and 44 percent in birth;
(3) less than 10 percent of unwed teenage
mothers place their children for adoption;
(4) only half as many unmarried teenagers
begin prenatal care in the first trimester of preg-
nancy as do teenagers who become pregnant after
marriage, with the result that unmarried teenagers
are twice as likely to give birth to low-birth-weight
babies than their married teenage counterparts and
the rate of infant mortality is twice as high as moth-
ers giving birth in their twenties; and
115
(5) Federal policy should assist and encourage
States to provide pre- and postnatal maternity care
services to pregnant teenagers in order to protect
the future health and well-being of their newborn
children.
SUBPART A—MATERNAL HEALTH CERTIFICATES
PROGRAM
SEC. 233. MATERNAL HEALTH CERTIFICATES FOR ELIGI-
BLE PREGNANT WOMEN.
(a) ESTABLISHMENT OF MATERNAL HEALTH CER-
TIFICATES FOR ELIGIBLE PREGNANT WOMEN.—Not later
than 180 days after the date of the enactment of this Act,
the Secretary of Health and Human Services (hereafter
in this subpart referred to as the ‘‘Secretary’’) shall estab-
lish a program to provide maternal health certificates for
eligible pregnant women to use to cover expenses incurred
in receiving services at a maternity home.
(b) ELIGIBILITY OF INDIVIDUALS.—
(1) IN GENERAL.—A pregnant woman is eligi-
ble to receive a maternal health certificate under the
program established under subsection (a) if the
woman—
(A) has an annual individual income (de-
termined without taking into account the in-
come of any parent or guardian of the individ-
ual) not greater than 175 percent of the income
116
official poverty line (as defined by the Office of
Management and Budget, and revised annually
in accordance with section 673(2) of the Omni-
bus Budget Reconciliation Act of 1981) applica-
ble to such individual; and
(B) provides the Secretary with such other
information and assurances as the Secretary
may require.
(2) INCOME OF ESTRANGED SPOUSE NOT IN-
CLUDED.—In determining the income of an individ-
ual for purposes of paragraph (1)(A), there shall not
be included the income of a spouse if the spouse has
been living apart from the woman for not less than
6 months, or if the spouse is incarcerated.
(3) PARTICIPATION IN AFDC PROGRAM NOT RE-
QUIRED.—An individual otherwise eligible to receive
a maternal health certificate under the program es-
tablished under subsection (a) shall not be found in-
eligible to receive such a certificate solely on the
grounds that the individual does not receive or is not
eligible to receive aid under the State plan for aid
to families with dependent children under part A of
title IV of the Social Security Act.
(c) LIMITATIONS
ON AMOUNT
OF EXPENSES IN-
CURRED.—A certificate received under the program estab-
117
lished under subsection (a) may be used to cover an
amount of expenses incurred by an individual at a mater-
nity home that does not exceed an amount equal to—
(1) $100; multiplied by
(2) the number of days during which such serv-
ices are provided to the individual at such facility.
(d) DEFINITIONS.—For purposes of this section:
(1) MATERNITY HOME.—The term ‘‘maternity
home’’ means a nonprofit facility licensed or other-
wise approved by the State (including accreditation
or other peer review systems that may be recognized
by the State) in which the facility is located to serve
as a residence for not fewer than 4 pregnant women
during pregnancy and for a limited period after the
date on which the child carried during the pregnancy
is born, as the Secretary may determine, that pro-
vides such pregnant women with appropriate sup-
portive services, which—
(A) shall include the following services—
(i) instruction and counseling regard-
ing future health care for the woman and
her child;
(ii) nutrition counseling;
118
(iii) counseling and education concern-
ing all aspects of prenatal care, childbirth,
and motherhood;
(iv) general family counseling, includ-
ing child and family development counsel-
ing;
(v) adoption counseling;
(vi) employability training, job assist-
ance, and counseling; and
(vii) medical care or referral for medi-
cal care for the woman and her child, in-
cluding—
(I) prenatal, delivery, and post-
delivery care;
(II) screening or referral for
screening for illegal drug use and
treatment; and
(III) screening or referral for
screening and treatment of sexually
transmitted diseases; and
(B) may include the following services—
(i) housing;
(ii) board and nutrition services;
119
(iii) basic transportation services to
enable the woman to obtain services from
the facility;
(iv) incidental dental care;
(v) referral for job training; and
(vi) such other services as are consist-
ent with the purposes of this section.
(2) PREGNANT WOMAN.—The term ‘‘pregnant
woman’’ means a woman determined to have one or
more fetuses in utero.
(e) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated for maternal health cer-
tificates under this section—
(1) $50,000,000 for fiscal year 1997;
(2) $75,000,000 for fiscal year 1998; and
(3) $100,000,000 for fiscal year 1999.
SUBPART B—MATERNITY HOME DEMONSTRATIONS
SEC. 236. PURPOSES.
It is the purpose of this subpart to support dem-
onstrations—
(1) to improve and expand the availability of,
and access to, needed comprehensive maternity care
services that enable pregnant adolescents to obtain
proper care and to assist pregnant adolescents and
adolescent parents to become productive independent
contributors to family and community life; and
120
(2) to promote innovative, comprehensive, and
integrated approaches to the delivery of such serv-
ices.
SEC. 237. ESTABLISHMENT OF DEMONSTRATION PROGRAM.
(a) GRANTS.—
(1) IN GENERAL.—The Secretary of Health and
Human Services (hereafter in this subpart referred
to as the ‘‘Secretary’’) may make demonstration
grants to any State that submits an application
under this section (in such form and containing such
information as the Secretary may require) to reim-
burse the State for amounts expended under an eli-
gible grant program for maternity care services fur-
nished to eligible beneficiaries.
(2) LIMITATIONS.—No grant made under para-
graph (1)—
(A) shall exceed an amount equal to 50
percent of the total amount expended by the
State under the demonstration program for ma-
ternity care services furnished to eligible bene-
ficiaries; or
(B) shall be used for the performance,
counseling, or referral for abortion.
(3) DEFINITIONS.—As used in this subsection:
122
(aa) prenatal, delivery, and
post-delivery care;
(bb) screening or referral for
screening for illegal drug use and
treatment; and
(cc) screening or referral for
screening and treatment of sexu-
ally transmitted diseases; and
(ii) may include the following serv-
ices—
(I) housing;
(II) board and nutrition services;
(III) basic transportation services
to enable the woman to obtain serv-
ices from the facility;
(IV) incidental dental care;
(V) referral for job training; and
(VI) such other services as are
consistent with the purposes of this
section.
(B) ELIGIBLE
BENEFICIARY.—The term
‘‘eligible beneficiary’’ means any individual
who—
(i) is under the age of 19;
123
(ii) has not completed high school;
and
(iii)(I) is pregnant; or
(II) has given birth in the preceding
90 days.
(b) ADMINISTRATION.—The officer or employee of
the Department of Health and Human Services des-
ignated by the Secretary to administer the grant program
under this section shall report directly to the Assistant
Secretary for Health with respect to the activities of such
officer or employee in administering such program.
(c) AUTHORIZATION OF APPROPRIATIONS; AMOUNTS
FOR ADMINISTRATION AND EVALUATION.—
(1) AUTHORIZATION
OF
APPROPRIATIONS.—
There 
are 
authorized 
to 
be 
appropriated
$50,000,000 for each of the fiscal years 1997, 1998,
and 1999 for the purpose of carrying out the grant
program under this section.
(2) ADMINISTRATION
AND
START
UP.—Not
more than 25 percent of the amounts appropriated
pursuant to paragraph (1) may be used for the pur-
pose of administering or starting up the grant pro-
gram under this section.
(d) REGULATIONS.—The Secretary shall adopt such
regulations as are necessary to carry out this section.
124
SUBPART C—REHABILITATION GRANTS FOR MATERNITY
HOUSING AND SERVICES FACILITIES
SEC. 241. ESTABLISHMENT OF GRANT PROGRAM.
The Secretary of Housing and Urban Development
(hereafter in this subpart referred to as the ‘‘Secretary’’)
shall carry out a program to provide assistance under this
subpart to eligible nonprofit entities for rehabilitation of
existing structures for use as facilities to provide housing
and services to pregnant women.
SEC. 242. AUTHORITY AND APPLICATIONS.
(a) AUTHORITY.—The Secretary may make grants
under the program under this subpart to eligible nonprofit
entities to rehabilitate existing structures for use as ma-
ternity housing and services facilities.
(b) APPLICATIONS.—The Secretary may make grants
only to nonprofit entities that submit applications for
grants under this subpart in the form and manner that
the Secretary shall prescribe, which shall include assur-
ances that grant amounts will be used to provide a mater-
nity housing and services facility.
SEC. 243. GRANT LIMITATIONS.
(a) MAXIMUM GRANT AMOUNT.—A grant under this
subpart may not be in an amount greater than
$1,000,000. An eligible nonprofit entity may not receive
more than 1 grant under this subpart in any fiscal year.
125
(b) MAXIMUM NUMBER OF GRANTS.—The Secretary
may not make grants under this subpart to more than
100 eligible nonprofit entities in any fiscal year.
(c) USE OF GRANTS FOR REHABILITATION ACTIVI-
TIES.—Any eligible nonprofit entity that receives a grant
under this subpart shall use the grant amounts for the
acquisition or rehabilitation (or both) of existing struc-
tures for use as a maternity housing and services facility,
which may include planning and development costs, pro-
fessional fees, and administrative costs related to such ac-
quisition or rehabilitation.
(d) TIME LIMITATION.—Rehabilitation projects that
receive assistance under this subpart shall be operated for
not less than 10 years for the purposes described in this
subpart.
(e) REPAYMENT.—
(1) REQUIREMENT.—The Secretary shall re-
quire a recipient of a grant under this subpart to
repay 100 percent of the amount of such grant if
the Secretary determines that the recipient has
failed to use such grant to operate maternity hous-
ing during the 1-year period beginning on the date
such housing is placed in service. If the Secretary
determines that such recipient is operating mater-
nity housing under such grant for periods in excess
126
of such 1-year period, the Secretary shall reduce the
percentage of the amount required to be repaid by
10 percentage points for each year such maternity
housing is in operation in excess of such 1-year pe-
riod.
(2) EXCEPTION.—A recipient of a grant under
this subpart shall not be required to comply with the
terms and conditions prescribed under this sub-
section if the recipient elects to sell or dispose of the
property involved and such sale or disposition results
in the use of the project for the direct benefit of very
low income individuals or if all of the proceeds gen-
erated from such sale or disposition are used to pro-
vide maternity housing that meets the requirements
of this subpart.
SEC. 244. REPORTS.
The Secretary shall require each eligible nonprofit en-
tity that receives a grant under this subpart to submit
to the Secretary a report, at such times and including such
information as the Secretary shall determine, describing
the activities carried out by the eligible nonprofit entity
with the grant amounts.
SEC. 245. DEFINITIONS.
For purposes of this subpart:
127
(1) ELIGIBLE NONPROFIT ENTITIES.—The term
‘‘eligible nonprofit entity’’ means any organization
that—
(A) is described in section 501(c)(3) of the
Internal Revenue Code of 1986 that is exempt
from taxation under subtitle A of such Code;
and
(B) has submitted an application under
section 242(b) for a grant under this subpart.
(2) MATERNITY HOUSING AND SERVICES FACIL-
ITY.—The term ‘‘maternity housing and services fa-
cility’’ means a facility licensed or otherwise ap-
proved by the State in which the facility is located
to serve as a residence for not fewer than 4 preg-
nant women during pregnancy and for a limited pe-
riod after the date on which the child carried during
the pregnancy is born, as the Secretary may deter-
mine, that provides such pregnant women with ap-
propriate supportive services, which—
(A) shall include the following services—
(i) instruction and counseling regard-
ing future health care for the woman and
her child;
(ii) nutrition counseling;
128
(iii) counseling and education concern-
ing all aspects of prenatal care, childbirth,
and motherhood;
(iv) general family counseling, includ-
ing child and family development counsel-
ing;
(v) adoption counseling;
(vi) employability training, job assist-
ance, and counseling; and
(vii) medical care or referral for medi-
cal care for the woman and her child, in-
cluding—
(I) prenatal, delivery, and post-
delivery care;
(II) screening or referral for
screening for illegal drug use and
treatment; and
(III) screening or referral for
screening and treatment of sexually
transmitted diseases; and
(B) may include the following services—
(i) housing;
(ii) board and nutrition services;
129
(iii) basic transportation services to
enable the woman to obtain services from
the facility;
(iv) incidental dental care;
(v) referral for job training; and
(vi) such other services as are consist-
ent with the purposes of this section.
(3) PREGNANT WOMAN.—The term ‘‘pregnant
woman’’ means a woman determined to have one or
more fetuses in utero.
SEC. 246. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out
this 
subpart 
$25,000,000 
for 
fiscal 
year 
1997,
$40,000,000 for fiscal year 1998, and $60,000,000 for fis-
cal year 1999.
SUBPART D—MISCELLANEOUS PROVISIONS
SEC. 248. EVALUATIONS AND REPORTS.
(a) EVALUATION.—The Secretary of Health and
Human Services (with respect to subparts A and B) and
the Secretary of Housing and Urban Development (with
respect to subpart C) shall conduct an evaluation of each
program receiving a grant under this part and may require
each recipient of a grant under this part to submit such
information to the appropriate Secretary as such Sec-
retary determines is necessary to conduct such evaluation.
130
(b) REPORT.—Each Secretary referred to in sub-
section (a) shall for each year of the grant program under
this part submit to the Congress a summary of each eval-
uation conducted under subsection (a) and of the informa-
tion submitted to each such Secretary by recipients of
grants under this part.
(c) FUNDING.—Of the amounts appropriated pursu-
ant to this part—
(1) the Secretary of Health and Human Serv-
ices shall reserve not less than 3 percent nor more
than 10 percent of the amount appropriated under
subparts A and B; and
(2) the Secretary of Housing and Urban Devel-
opment shall reserve not less than 3 percent nor
more than 10 percent of the amount appropriated
under subpart B;
for the purpose of carrying out the activities under sub-
sections (a) and (b).
SEC. 249. PROHIBITION ON ABORTION.
Amounts may be made available under this part only
to programs or projects that—
(1) do not provide for the performance of abor-
tions or provide abortion counseling or referral;
(2) do not subcontract with or make any pay-
ments to any person who provides for the perform-
131
ance of abortions or provides abortion counseling or
referral; and
(3) do not advocate, promote, or encourage
abortion;
except where the life of the mother would be endangered
if the fetus were carried to term.
TITLE III—OTHER AMERICAN
RENEWAL INCENTIVES
Subtitle A—Housing
SEC. 301. PUBLIC HOUSING FOR INTACT FAMILIES.
Section 6(c)(4)(A) of the United States Housing Act
of 1937 (42 U.S.C. 1437d(c)(4)(A)) is amended—
(1) in clause (iii), by striking ‘‘and’’ at the end;
(2) in clause (iv), by striking the period at the
end and inserting ‘‘; and’’; and
(3) by adding at the end the following new
clause:
‘‘(v) for not less than 15 percent of
the units that are made available for occu-
pancy in a given fiscal year, give pref-
erence to any family that includes 2 indi-
viduals who are legally married to each
other;’’.
132
SEC. 302. EFFECTIVE DATE.
This subtitle and the amendments made by this sub-
title shall take effect on October 1, 1996.
Subtitle B—Responsible Parenting
SEC. 311. AMENDMENTS TO THE SOCIAL SECURITY ACT.
Except as otherwise specifically provided, whenever in
this subtitle an amendment is expressed in terms of an
amendment to or repeal of a section or other provision,
the reference shall be considered to be made to that sec-
tion or other provision of the Social Security Act.
SEC. 312. INTEGRATION OF FAMILY PLANNING AND MATER-
NAL AND CHILD HEALTH SERVICES.
(a) INCREASE
IN FUNDING.—Section 501(a) (42
U.S.C. 701(a)) is amended in the matter preceding para-
graph (1) by striking ‘‘$705,000,000 for fiscal year 1994’’
and inserting ‘‘$886,000,000 for fiscal year 1997’’.
(b) RESERVATION OF CERTAIN AMOUNTS.—Section
502 
(42 
U.S.C. 
702) 
is 
amended 
by 
striking
‘‘$600,000,000’’ each place it appears and inserting
‘‘$800,000,000’’.
SEC. 313. ABSTINENCE SERVICES.
(a) PROVISION
AND PROMOTION
OF ABSTINENCE
SERVICES.—Section 501(a)(1) (42 U.S.C. 701(a)(1)) is
amended—
(1) in subparagraph (C), by striking ‘‘and’’ at
the end;
133
(2) in subparagraph (D), by inserting ‘‘and’’ at
the end; and
(3) by adding the following new subparagraph:
‘‘(E) to provide and to promote family-cen-
tered, community-based services and informa-
tion regarding the delay or discontinuation of
premarital sexual activity, particularly among
adolescents, and to provide adoption-related
services and promote adoption as an acceptable
alternative for pregnant unmarried individ-
uals;’’.
(b) MINIMUM AMOUNT
FOR ABSTINENCE SERV-
ICES.—Section 504 (42 U.S.C. 704) is amended by adding
the following new subsection:
‘‘(e) Of the amounts paid to a State under section
503 from an allotment for a fiscal year under section
502(c), not less than 100 percent of such amounts (includ-
ing the fair market value of any supplies or equipment)
as were used under this title in the preceding fiscal year
to provide family planning services shall be used to provide
services described in section 501(a)(1)(E).’’.
(c) NEEDS ASSESSMENT FOR ABSTINENCE SERV-
ICES.—Section 505(a)(1) (42 U.S.C. 705(a)(1)) is amend-
ed—
134
(1) in subparagraph (B), by striking ‘‘and’’ at
the end;
(2) in subparagraph (C), by adding ‘‘and’’ at
the end; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(D) services and information regarding
the delay or discontinuation of premarital sex-
ual activity, particularly among adolescents,
and regarding adoption;’’.
SEC. 314. USE OF FUNDS.
(a) PROHIBITION OF USE FOR FAMILY PLANNING
SERVICES
IN
SCHOOLS.—Section 504(b) (42 U.S.C.
704(b)) is amended—
(1) in paragraph (5), by striking ‘‘or’’ at the
end;
(2) in paragraph (6)(B), by striking the period
at the end and inserting a semicolon; and
(3) by adding at the end the following new
paragraphs:
‘‘(7) to provide or promote family planning
services in any elementary or secondary educational
institution; or
135
‘‘(8) to provide or promote any drug or device
except for a use that has been approved by the Food
and Drug Administration.’’.
(b) NO FUNDING OF PROGRAMS OR PROJECTS THAT
PROVIDE ABORTION SERVICES.—Section 504 (42 U.S.C.
704), as amended by section 313(b), is amended by adding
at the end the following new subsections:
‘‘(f)(1) Payments under this title may be made only
to programs or projects that—
‘‘(A) do not provide abortions or abortion coun-
seling or referral;
‘‘(B) do not subcontract with or make any pay-
ment to any person who provides abortions or abor-
tion counseling or referral (except that any such pro-
gram or project may provide referral for abortion
counseling to a pregnant adolescent if such adoles-
cent and the parents or guardians of such adolescent
request such referral); or
‘‘(C) do not advocate, promote, or encourage
abortion.
‘‘(2) The Secretary shall ascertain whether programs
or projects comply with paragraph (1) and take appro-
priate action if programs or projects do not comply with
such paragraph, including withholding of funds.
136
‘‘(g) A State shall ensure, to the maximum extent
possible, family participation in the receipt of services pro-
vided under section 501(a)(1) and shall ensure that an
entity that receives funds under this title shall comply with
any State law that requires—
‘‘(1) involvement of a family member prior to
the provision of services related to family planning
or abortion; and
‘‘(2) reporting of civil or criminal offenses in-
volving child abuse or statutory rape.
‘‘(h) The acceptance by any individual of family plan-
ning services or family planning or population growth in-
formation (including educational materials) provided
through financial assistance under this title shall be vol-
untary and shall not be a prerequisite to eligibility for or
receipt of any other service or assistance from, or to par-
ticipation in, any other program of the entity or individual
that provided such service or information.’’.
SEC. 315. APPLICATION FOR BLOCK GRANT FUNDS.
Section 505(a)(5) (42 U.S.C. 705(a)(5)) is amend-
ed—
(1) by striking ‘‘and’’ at the end of subpara-
graph (E);
(2) by redesignating subparagraph (F) as sub-
paragraph (H); and
137
(3) by inserting after subparagraph (E) the fol-
lowing subparagraphs:
‘‘(F) the State will provide a description of
how the applicant will, as appropriate to the
provision of family planning services or services
provided under section 501(e)(1)(A)—
‘‘(i) involve families of adolescents in
a manner that will maximize the role of
the family in the solution of problems re-
lating to the parenthood or pregnancy of
the adolescent; and
‘‘(ii) involve religious and charitable
organizations, voluntary associations, and
other groups in the private sector as well
as services provided by publicly sponsored
initiatives; and
‘‘(G)(i) the State will provide assurances
that—
‘‘(I) except as provided in clause (ii),
and subject to subclause (II), the applicant
will notify the parents or guardians of any
unemancipated minor requesting services
from the applicant and will obtain the per-
mission of such parents or guardians with
138
respect to the provision of such services;
and
‘‘(II) in the case of a pregnant
unemancipated minor requesting services
from a recipient of funds under this title,
the recipient will notify the parents or
guardians of such minor under subclause
(I) within a reasonable period of time; and
‘‘(ii) the State will provide assurances that
the applicant will not notify or request the per-
mission of the parent or guardian of any
unemancipated minor without the consent of
the minor—
‘‘(I) who solely is requesting from the
applicant pregnancy testing or testing or
treatment for venereal disease;
‘‘(II) who is the victim of incest in-
volving a parent; or
‘‘(III) if an adult sibling of the minor
or an adult aunt, uncle, or grandparent
who is related to the minor by blood cer-
tifies to the recipient that notification of
the parent or guardian of such minor
would result in physical injury to such
minor.’’.
139
SEC. 316. REPORTS AND AUDITS.
(a) REPORT
BY STATE.—Section 506(a)(2) (42
U.S.C. 706(a)(2)) is amended by inserting after subpara-
graph (E) the following new subparagraph:
‘‘(F) Information (as prescribed by the Sec-
retary) on the State’s activities in connection with
the services described in section 501(a)(1)(E).’’.
(b) REPORT BY SECRETARY.—Section 506(a)(3) (42
U.S.C. 706(a)(3)) is amended—
(1) in subparagraph (D), by striking ‘‘and’’ at
the end;
(2) in subparagraph (E), by striking the period
at the end and inserting ‘‘; and’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(F) information on the State’s activities in
connection with the services described in section
501(a)(1)(E).’’.
SEC. 317. EVALUATION.
Title V (42 U.S.C. 701 et seq.) is amended by adding
at the end the following new section:
‘‘EVALUATION
‘‘SEC. 510. (a) Of amounts allotted to a State under
section 502(c) in a fiscal year that the State estimates
will be expended on family planning services and the serv-
140
ices described in section 501(a)(1)(E) for such year the
State shall reserve—
‘‘(1) not less than 2 percent and not more than
4 percent of such amounts for an annual evaluation
of activities carried out under this title and the ef-
fectiveness of such activities in reducing sexual activ-
ity, pregnancies, and births among unmarried indi-
viduals, particularly adolescents; and
‘‘(2) not less than 2 percent and not more than
4 percent of such amounts for an annual longitu-
dinal study by an independent research organization
of the activities carried out under this title and the
effectiveness of such activities in reducing sexual ac-
tivity, pregnancies, and births among unmarried in-
dividuals, particularly adolescents.
‘‘(b)(1) Each State shall submit the evaluations and
studies conducted under this section to the Secretary.
‘‘(2) The Secretary shall submit a summary of each
evaluation and study submitted under paragraph (1) to
the appropriate committees of the Congress.’’.
SEC. 318. REPEAL OF CERTAIN PROGRAMS.
(a) REPEAL OF POPULATION RESEARCH AND VOL-
UNTARY FAMILY PLANNING PROGRAMS.—Title X of the
Public Health Service Act (42 U.S.C. 300 et seq.) is re-
pealed.
141
(b) REPEAL OF ADOLESCENT FAMILY LIFE DEM-
ONSTRATION PROJECTS.—Title XX of the Public Health
Service Act (42 U.S.C. 300z et seq.) is repealed.
SEC. 319. EFFECTIVE DATE.
This subtitle and the amendments made by this sub-
title shall take effect on October 1, 1996.
Subtitle C—Character
Development
SEC. 321. PURPOSES.
The purposes of this subtitle are—
(1) to reduce the school dropout rate for at-risk
youth;
(2) to improve the academic performance of at-
risk youth; and
(3) to reduce juvenile delinquency and gang
participation.
SEC. 322. DEFINITIONS.
For the purposes of this subtitle—
(1) the term ‘‘at-risk youth’’ means a youth at
risk of—
(A) educational failure;
(B) dropping out of school; or
(C) involvement in delinquent activities;
(2) the term ‘‘eligible local educational agency’’
means a local educational agency that has entered
142
into a partnership, with a community-based organi-
zation that provides one-to-one mentoring services,
to carry out the authorized activities described in
section 325 in accordance with this subtitle;
(3) the terms ‘‘elementary school’’, ‘‘local edu-
cational agency’’, and ‘‘secondary school’’, have the
meanings given such terms in section 14101 of the
Elementary and Secondary Education Act of 1965
(20 U.S.C. 8801);
(4) the term ‘‘mentor’’ means a person who
works with an at-risk youth on a one-to-one basis,
to establish a supportive relationship with the youth
and to provide the youth with academic assistance
and exposure to new experiences that enhance the
youth’s ability to become a better student and a re-
sponsible citizen; and
(5) the term ‘‘Secretary’’ means the Secretary
of Education.
SEC. 323. MENTORING PROGRAMS.
(a) GRANT AUTHORITY.—The Secretary is author-
ized to award grants to eligible local educational agencies
to enable such agencies to establish mentoring programs
that—
(1) are designed to link—
(A) individual at-risk youth; with
143
(B) responsible, individual adults who
serve as mentors; and
(2) are intended to—
(A) increase at-risk youth participation in,
and enhance the ability of such youth to benefit
from, elementary and secondary education;
(B) discourage at-risk youth from—
(i) using illegal drugs;
(ii) violence;
(iii) using dangerous weapons;
(iv) criminal activity not described in
clauses (i), (ii), and (iii); and
(v) involvement in gangs;
(C) promote personal and social respon-
sibility among at-risk youth;
(D) encourage at-risk youth participation
in community service and community activities;
or
(E) provide general guidance to at-risk
youth.
(b) AMOUNT
AND DURATION.—Each grant under
this section shall be awarded in an amount not to exceed
a total of $200,000 over a period of not more than three
years.
144
(c) PRIORITY.—The Secretary shall give priority to
awarding a grant under this section to an application sub-
mitted under section 327 that—
(1) describes a mentoring program in which 60
percent or more of the at-risk youth to be served are
eligible for assistance under part A of title I of the
Elementary and Secondary Education Act of 1965
(20 U.S.C. 6311 et seq.);
(2) describes a mentoring program that serves
at-risk youth who are—
(A) at risk of dropping out of school; or
(B) involved in delinquent activities; and
(3) demonstrates the ability of the eligible local
educational agency to continue the mentoring pro-
gram after the termination of the Federal funds pro-
vided under this section.
(d) OTHER CONSIDERATIONS.—In awarding grants
under this section, the Secretary shall give consideration
to—
(1) providing an equitable geographic distribu-
tion of such grants, including awarding such grants
for mentoring programs in both rural and urban
areas;
145
(2) the quality of the mentoring program de-
scribed in the application submitted under section
327, including—
(A) the resources, if any, that will be dedi-
cated to providing participating at-risk youth
with opportunities for job training or post-
secondary education; and
(B) the degree to which parents, teachers,
community-based organizations, and the local
community participate in the design and imple-
mentation of the mentoring program; and
(3) the capability of the eligible local edu-
cational 
agency 
to 
effectively 
implement 
the
mentoring program.
SEC. 324. IMPLEMENTATION AND EVALUATION GRANTS.
The Secretary is authorized to award grants to na-
tional organizations or agencies serving youth to enable
such organizations or agencies—
(1) to conduct a multisite demonstration
project, involving 5 to 10 project sites, that—
(A) provides an opportunity to compare
various one-to-one mentoring models for the
purpose of evaluating the effectiveness and effi-
ciency of such models;
146
(B) allows for innovative programs de-
signed under the oversight of a national organi-
zation or agency serving youth, which programs
may include—
(i) technical assistance;
(ii) training; and
(iii) research and evaluation; and
(C) disseminates the results of such dem-
onstration project to allow for the determina-
tion of the best practices for various mentoring
programs;
(2) to develop and evaluate screening standards
for school-linked mentoring programs; and
(3) to develop and evaluate volunteer recruit-
ment activities for school-linked mentoring pro-
grams.
SEC. 325. AUTHORIZED ACTIVITIES.
(a) PERMITTED USES.—Grant funds awarded under
this subtitle (other than grant funds awarded under sec-
tion 324) shall be used for—
(1) hiring of mentoring coordinators and sup-
port staff;
(2) recruitment, screening and training of adult
mentors;
147
(3) reimbursement of mentors for reasonable
incidental expenditures, such as transportation, that
are directly associated with mentoring, except that
such expenditures shall not exceed $500 per mentor
per calendar year; or
(4) such other purposes as the Secretary deter-
mines may be reasonable.
(b) PROHIBITED USES.—Grant funds awarded under
this subtitle shall not be used—
(1) to directly compensate a mentor, except as
provided under subsection (a)(3);
(2) to obtain educational or other materials or
equipment that would otherwise be used in the ordi-
nary course of the grant recipient’s operations;
(3) to support litigation; or
(4) for any other purposes that the Secretary
determines are prohibited.
SEC. 326. REGULATIONS AND GUIDELINES.
(a) REGULATIONS.—The Secretary, after consulta-
tion with the Secretary of Health and Human Services,
the Attorney General, and the Secretary of Labor, shall
provide for the promulgation of regulations to implement
this subtitle.
(b) GUIDELINES.—The Secretary shall develop and
distribute to eligible local educational agencies receiving
148
a grant under section 323 specific model guidelines for
the screening of mentors.
SEC. 327. APPLICATIONS.
(a) IN GENERAL.—Each entity desiring a grant
under this subtitle shall submit an application to the Sec-
retary at such time, in such manner, and accompanied by
such information as the Secretary may reasonably require.
(b) MENTORING PROGRAMS.—Each application sub-
mitted under subsection (a) for a grant under section 323
shall contain—
(1) information on the at-risk youth expected to
be served;
(2) a provision describing the mechanism for
matching at-risk youth with mentors based on the
needs of the at-risk youth;
(3) an assurance that no mentor will be as-
signed to more than one at-risk youth, so as to en-
sure a one-to-one mentoring relationship;
(4) an assurance that a mentoring program op-
erated in a secondary school will provide at-risk
youth with a variety of experiences and support, in-
cluding—
(A) an opportunity to spend time in a work
environment and, when possible, participate in
the work environment;
149
(B) an opportunity to witness the job skills
that will be required for the at-risk youth to ob-
tain employment upon graduation;
(C) assistance with homework assignments;
and
(D) exposure to experiences that the at-
risk youth might not otherwise encounter;
(5) an assurance that the mentoring program
operated in elementary schools will provide at-risk
youth with—
(A) academic assistance;
(B) exposure to new experiences and ac-
tivities that at-risk youth might not encounter
on their own; and
(C) emotional support;
(6) an assurance that the mentoring program
will be monitored to ensure that each at-risk youth
participating in the mentoring program benefits
from a mentor relationship, including providing a
new mentor assignment if the original mentoring re-
lationship is not beneficial to the at-risk youth;
(7) the methods by which mentors and at-risk
youth will be recruited to the mentoring program;
(8) the method by which prospective mentors
will be screened; and
150
(9) the training that will be provided to men-
tors.
SEC. 328. EVALUATION.
(a) EVALUATION.—The Comptroller General of the
United States shall enter into a contract, with an evaluat-
ing organization that has demonstrated experience in con-
ducting evaluations, for the conduct of an ongoing rigor-
ous evaluation of the programs and activities assisted
under this subtitle.
(b) EVALUATION CRITERIA.—The Comptroller Gen-
eral of the United States, in consultation with the Sec-
retary, shall establish minimum criteria for evaluating the
programs and activities assisted under this subtitle. Such
criteria shall provide for a description of the implementa-
tion of each program or activity assisted under this sub-
title and such program or activity’s effect on all partici-
pants, schools, communities, and youth served by such
program or activity.
SEC. 329. REPORTS.
(a) REPORT BY GRANT RECIPIENTS.—Each entity
receiving a grant under this subtitle shall submit to the
evaluating organization entering into the contract under
section 328(a)(1) an annual report regarding any program
or activity assisted under this subtitle. Each such report
shall be submitted at such a time, in such a manner, and
151
accompanied by such information, as such evaluating or-
ganization may require.
(b) REPORTS
BY COMPTROLLER GENERAL.—The
Comptroller General shall submit to Congress not later
than September 30, 1999, a report regarding the success
and effectiveness of grants awarded under this subtitle in
reducing the school dropout rate, improving academic per-
formance of at-risk youth, and reducing juvenile delin-
quency and gang participation.
SEC. 330. AUTHORIZATION OF APPROPRIATIONS.
(a) MENTORING PROGRAMS.—There is authorized to
be appropriated $35,000,000 for each of the fiscal years
1997, 1998, 1999, 2000, and 2001 to carry out section
323.
(b) IMPLEMENTATION AND EVALUATION GRANTS.—
There is authorized to be appropriated $5,000,000 for
each of the fiscal years 1997, 1998, 1999, 2000, and 2001
to carry out section 324.
Subtitle D—Family Reconciliation
SEC. 331. SET-ASIDE FOR STATES WITH APPROVED FAMILY
RECONCILIATION PLANS.
(a) IN GENERAL.—
(1) SET-ASIDE.—Section 430(d) of the Social
Security Act (42 U.S.C. 629(d)) is amended by add-
ing at the end the following new paragraph:
152
‘‘(4) FAMILY RECONCILIATION.—The Secretary
shall reserve 10 percent of the amounts described in
subsection (b) for each fiscal year, for allotment to
States with family reconciliation plans approved
under section 432(c)(3) to develop and conduct
counseling 
programs 
described 
in 
section
432(c)(2)(B).’’.
(2) ASSISTANCE IN DEVELOPING FAMILY REC-
ONCILIATION
COUNSELING
PROGRAMS.—Section
430(d)(1) of such Act (42 U.S.C. 629(d)(1)) is
amended—
(A) in subparagraph (A), by striking
‘‘and’’ at the end;
(B) in subparagraph (B), by striking the
period at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following new
subparagraph:
‘‘(C) in assisting States in developing and
operating counseling programs described in sec-
tion 432(c)(2)(B).’’.
(3) FAMILY RECONCILIATION PLANS.—Section
432 of such Act (42 U.S.C. 629(b)) is amended by
adding at the end the following new subsection:
‘‘(c) FAMILY RECONCILIATION PLANS.—
153
‘‘(1) PLAN
REQUIREMENTS.—A State family
reconciliation plan meets the requirements of this
paragraph if the plan demonstrates that the State
has in effect the laws referred to in paragraph (2).
‘‘(2) 
SATISFACTION
OF
PLAN
REQUIRE-
MENTS.—In order to satisfy paragraph (1), a State
must have in effect laws requiring that, prior to a
final dissolution of marriage of a couple who have
one or more children under 12 years of age, the cou-
ple shall be required to—
‘‘(A) undergo a minimum 60-day waiting
period beginning on the date dissolution docu-
ments are filed; and
‘‘(B) participate in counseling programs
offered by a public or private counseling service
that includes discussion of the psychological
and economic impact of the divorce on the cou-
ple, the children of the couple, and society.’’.
‘‘(3) APPROVAL
OF
PLANS.—The Secretary
shall approve a plan that meets the requirements of
paragraph (1).’’.
(4) ALLOTMENT.—Section 433 of such Act (42
U.S.C. 633) is amended by adding at the end the
following new subsection:
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‘‘(d) ALLOTMENTS
TO STATES WITH APPROVED
FAMILY RECONCILIATION PLANS.—
‘‘(1) IN GENERAL.—From the amount reserved
pursuant to section 430(d)(4) for any fiscal year,
the Secretary shall allot to each State (other than an
Indian tribe) with a family reconciliation plan ap-
proved under section 432(c)(3), an amount that
bears the same ratio to the amount reserved under
such section as the average annual number of final
dissolutions of marriage described in paragraph (2)
in the State for the 3 fiscal years referred to in sub-
section (c)(2)(B) bears to the average annual num-
ber of such final dissolutions of marriage in such 3-
year period in all States with family reconciliation
plans approved under section 432(c)(3).
‘‘(2) FINAL DISSOLUTIONS OF MARRIAGE DE-
SCRIBED.—For purposes of paragraph (1), a final
dissolution of marriage described in this paragraph
is a final dissolution of marriage of a couple who
have one or more children under 12 years of age.’’.
(5) ENTITLEMENT.—
(A) IN GENERAL.—Section 434(a) of such
Act (42 U.S.C. 629d(a)) is amended by adding
at the end the following new paragraph:
155
‘‘(3) FAMILY RECONCILIATION AMOUNT.—Each
State with a family reconciliation plan approved
under section 432(c)(3) shall be entitled to an
amount equal to the allotment of the State under
section 433(d) for the fiscal year.
(B) CONFORMING
AMENDMENT.—Section
434(a) of such Act (42 U.S.C. 629d(a)) is
amended by striking ‘‘paragraph (2)’’ and in-
serting ‘‘paragraphs (2) and (3)’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect on October 1, 1996.
SEC. 332. USE OF FUNDS UNDER LEGAL SERVICES COR-
PORATION ACT.
Section 1007(b) of the Legal Services Corporation
Act (42 U.S.C. 2996f(b)) is amended—
(1) in paragraph (9), by striking ‘‘; or’’ and in-
serting a semicolon;
(2) in paragraph (10), by striking the period
and inserting ‘‘; or’’; and
(3) by adding at the end the following:
‘‘(11) to provide legal assistance to an eligible
client with respect to a proceeding or litigation in
which the client seeks to obtain a dissolution of a
marriage or a legal separation from a spouse, except
that nothing in this paragraph shall prohibit a recip-
156
ient from providing legal assistance to the client
with respect to the proceeding or litigation if a court
of appropriate jurisdiction has determined that the
spouse has physically or mentally abused the cli-
ent.’’.
Subtitle E—Mentor Schools
SEC. 341. MENTOR SCHOOLS.
(a) SHORT TITLE.—This subtitle may be cited as the
‘‘Mentor Schools Act’’.
(b) FINDINGS.—The Congress finds that—
(1) while low-income students have made sig-
nificant gains with respect to educational achieve-
ment and attainment, considerable gaps still persist
for these students in comparison to those from more
affluent socio-economic backgrounds;
(2) our Nation has a compelling interest in as-
suring that all children receive a high quality edu-
cation;
(3) new methods and experiments to revitalize
the educational achievement of, and opportunities
for, low-income individuals must be a part of any
comprehensive solution to the problems in our Na-
tion’s educational system;
157
(4) successful educational alternatives should be
widely implemented to better the education of low-
income individuals;
(5) preliminary research shows that same gen-
der schools produce promising academic and behav-
ioral improvements in both sexes for low-income,
educationally disadvantaged students;
(6) in recent years efforts to experiment with
same gender schools have been inhibited by lawsuits
and threats of lawsuits by private groups as well as
governmental entities; and
(7) same gender public schools are a legal edu-
cational alternative to coeducational elementary and
secondary schools and are not prohibited under the
regulations under title IX of the Education Amend-
ments of 1972 (20 U.S.C. 1681 et seq.), as such
regulations were in effect on the day preceding the
date of enactment of this Act, so long as—
(A) comparable courses, services and facili-
ties are available to students of each sex; and
(B) the same policies and criteria for ad-
mission to such schools are used for both sexes.
(c) CONSTRUCTION.—Section 901 of the Education
Amendments of 1972 (20 U.S.C. 1681) is amended by
adding at the end the following new subsection:
158
‘‘(d) Nothing in this section shall be construed to pro-
hibit the establishment or operation of a same gender pub-
lic elementary or secondary school if—
‘‘(1) comparable courses, services and facilities
are available to students of each sex; and
‘‘(2) the same policies and criteria for admis-
sion to such schools are used for both sexes.’’.
Subtitle F—Role Models Academy
SEC. 351. PURPOSE; DEFINITIONS.
(a) PURPOSE.—The purpose of this subtitle is to es-
tablish a Role Models Academy that—
(1) serves as a model, residential, military style
magnet school for at-risk youth from around the Na-
tion who cease to attend secondary school before
graduation from secondary school; and
(2) will foster a student’s growth and develop-
ment by providing a residential, controlled environ-
ment conducive for developing leadership skills, self-
discipline, citizenship, and academic and vocational
excellence in a structured living and learning envi-
ronment.
(c) DEFINITIONS.—For the purpose of this subtitle—
(1) the term ‘‘Academy’’ means the academy
established under section 353;
159
(2) the term ‘‘former member of the Armed
Forces’’ means any individual who was discharged or
released from service in the Armed Forces under
honorable conditions;
(3) the term ‘‘local educational agency’’ has the
meaning given that term in section 14101 of the El-
ementary and Secondary Education Act of 1965 (20
U.S.C. 8801);
(4) the term ‘‘secondary school’’ has the mean-
ing given that term in section 14101 of the Elemen-
tary and Secondary Education Act of 1965 (20
U.S.C. 8801); and
(5) the term ‘‘Secretary’’ means the Secretary
of Education.
SEC. 352. OBJECTIVES.
The objectives of this subtitle are as follows:
(1) To provide a comprehensive, coherent, inte-
grated, high quality, cost-effective, residential, edu-
cation and vocational training academy for the Na-
tion’s at-risk youth, designed to meet the entrance
demands of colleges and universities and the needs
of employers.
(2) To establish a comprehensive, national part-
nership investment model among the Federal Gov-
160
ernment, States, corporate America, and colleges
and universities.
(3) To provide for community partnerships
among local community leaders, businesses, and
churches to provide mentoring to Academy students.
(4) To provide for a community partnership be-
tween the Academy and the local school system
under which model Academy students will serve as
mentors to at-risk youth who are attending school to
provide such in-school at-risk youth with valuable in-
struction and insights regarding—
(A) the prevention of drug use and crime;
(B) self-restraint; and
(C) conflict resolution skills.
(5) To provide Academy students with—
(A) the tools to become productive citizens;
(B) learning skills;
(C) traditional, moral, ethical, and family
values;
(D) work ethics;
(E) motivation;
(F) self-confidence; and
(G) pride.
(6) To provide employment opportunities at the
Academy for former members of the Armed Forces
161
and participants in the program assisted under sec-
tion 1151 of title 10, United States Code (Troops
to Teachers Program).
(7) To make the Academy available, upon dem-
onstration of success, for expansion or duplication
throughout every State, through block grant funding
or other means.
SEC. 353. ACADEMY ESTABLISHED.
The Secretary shall carry out a demonstration pro-
gram under which the Secretary establishes a four-year,
residential, military style academy—
(1) that shall offer at-risk youth secondary
school coursework and vocational training, and that
may offer precollegiate coursework;
(2) that focuses on the education and vocational
training of youth at risk of delinquency or dropping
out of secondary school;
(3) whose teachers are primarily composed of
former members of the Armed Forces or partici-
pants in the program assisted under section 1151 of
title 10, United States Code (Troops to Teachers
Program), if such former members or participants
are qualified and trained to teach at the Academy;
(4) that operates a mentoring program that—
162
(A) utilizes mentors from all sectors of so-
ciety to serve as role models for Academy stu-
dents;
(B) provides, to the greatest extent pos-
sible, one-to-one mentoring relationships be-
tween mentors and Academy students; and
(C) involves mentors providing academic
tutoring, advice, career counseling, and role
models;
(5) that may contain a Junior Reserve Officers’
Training Corps unit established in accordance with
section 2031 of title 10, United States Code;
(6) that is housed on the site of any military in-
stallation closed pursuant to a base closure law; and
(7) if the Secretary determines that the Acad-
emy is effective, that serves as a model for similar
military style academies throughout the United
States.
SEC. 354. AUTHORIZATION.
There are authorized to be appropriated $30,000,000
for fiscal year 1997 and such sums as may be necessary
for each of the fiscal years 1998, 1999, 2000, and 2001
to carry out this subtitle.
163
Subtitle G—Kinship Care
SEC. 361. KINSHIP CARE DEMONSTRATION.
(a) GRANTS.—The Secretary of Health and Human
Services (hereafter referred to in this subtitle as the ‘‘Sec-
retary’’) shall award grants to States for demonstration
projects to assist such States in developing or implement-
ing procedures to use adult relatives as the preferred
placement for children removed from their parents, so long
as—
(1) such relatives are determined to be capable
of providing a safe, nurturing environment for the
child; or
(2) such relatives comply with all relevant Fed-
eral and State child protection standards.
(b) REQUIREMENTS.—To be eligible to receive a
grant under subsection (a), a State shall—
(1) agree to, at a minimum, provide a needs-
based payment and supportive services, as appro-
priate, with respect to children in a kinship care ar-
rangement;
(2) agree to give preference to adult relatives
who meet applicable adoption standards in making
adoption placements;
164
(3) establish such procedures as may be nec-
essary to ensure the safety of children who are
placed with adult relatives; and
(4) establish such procedures as may be nec-
essary to ensure that reasonable efforts will be made
prior to the placement of a child in foster care to
give notice to an adult relative (including a maternal
or paternal grandparent, sibling, aunt, or uncle who
might be available to care for the child).
(c) EVALUATION.—The Secretary shall, directly or
through contracts with public or private entities, provide
for the conduct of evaluations of demonstration projects
carried out under subsection (a) and for the dissemination
of information developed as a result of such projects.
SEC. 362. PROCEDURES TO PLACE CHILDREN WITH REL-
ATIVES.
A State that receives a grant under this subtitle shall
develop procedures to ensure that reasonable efforts will
be made prior to the placement of a child in foster care,
to provide notice to a relative (including a maternal or
fraternal grandparent, adult sibling, aunt, or uncle) who
might be available to care for the child.
165
SEC. 363. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out
this Act $30,000,000 for each of the fiscal years 1997,
1998, and 1999.
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