[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1904 Introduced in Senate (IS)]







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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Project for 
American Renewal Act''.
    (b) Table of Contents.--
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.
                        Psubpart a--tax offsets
Sec. 111. Repeal of earned income credit for individuals without 
                            children.
Sec. 112. Legislationsubpart b--food stamp programubsidies.
Sec. 121. Alsubpart 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.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

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. Fisubpart a--maternal health certificates program
Sec. 233. Maternsubpart b--maternity home demonstrationsnant women.
Sec. 236. Purposes.
Sesubpart 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. Authorizsubpart 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.
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.

                     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.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 25 the 
following new section:

``SEC. 25A. CREDIT FOR CERTAIN CHARITABLE CONTRIBUTIONS.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the sum of--
            ``(1) 100 percent of the qualified charitable contributions 
        which are paid by the taxpayer during the taxable year to the 
        extent such contributions do not exceed $100, plus
            ``(2) 90 percent of such contributions in excess of $100 
        but not in excess of the maximum dollar amount.
In the case of a joint return, this subsection shall be applied by 
substituting `$200' for `$100' each place it appears.
    ``(b) Maximum Dollar Amount.--For purposes of this section--
            ``(1) In general.--The maximum dollar amount shall be 
        determined in accordance with the following table:

``In the case of taxable years      The maximum dollar amount is:
        beginning in:
    1997..........................................                $100 
    1998..........................................                 200 
    1999..........................................                 300 
    2000..........................................                 400 
    2001 and thereafter...........................                 500.
            ``(2) Joint returns.--In the case of a joint return, the 
        maximum dollar amount shall be twice the amount determined 
        under paragraph (1).
    ``(c) Qualified Charitable Contribution.--For purposes of this 
section, the term `qualified charitable contribution' means any 
charitable contribution (as defined in section 170(c)) made in cash to 
a qualified charity.
    ``(d) Qualified Charity.--For purposes of this section--
            ``(1) In general.--The term `qualified charity' means any 
        organization--
                    ``(A) which is described in section 501(c)(3) and 
                exempt from tax under section 501(a), and
                    ``(B) which is certified by the Secretary as 
                meeting the requirements of paragraphs (3) and (4).
        The Secretary shall certify an organization under subparagraph 
        (B) only upon request of the organization. An organization may 
        not request such certification unless the organization has been 
        in existence for at least one year.
            ``(2) Collection organizations.--Such term also includes an 
        organization described in section 501(c)(3) and exempt from tax 
        under section 501(a) which--
                    ``(A) solicits and collects gifts and grants which, 
                by agreement, are distributed to qualified charities 
                described in paragraph (1),
                    ``(B) distributes at least 90 percent of the 
                contributions described in subsection (a) collected 
                under subparagraph (A) to qualified charities described 
                in paragraph (1), and
                    ``(C) meets the requirements of paragraph (6).
            ``(3) Charity must primarily assist poor individuals.--
                    ``(A) In general.--An organization meets the 
                requirements of this paragraph only if the Secretary 
                reasonably expects that the predominant activity of 
                such organization will be the provision of direct 
                services within the United States to individuals and 
                families whose annual incomes generally do not exceed 
                185 percent of the official poverty line (as defined by 
                the Office of Management and Budget) in order to 
                prevent or alleviate poverty among such individuals and 
                families.
                    ``(B) No recordkeeping in certain cases.--An 
                organization shall not be required to establish or 
                maintain records with respect to the incomes of 
                individuals and families for purposes of subparagraph 
                (A) if such individuals or families are members of 
                groups which are generally recognized as including 
                substantially only individuals and families described 
                in subparagraph (A).
                    ``(C) Food aid and homeless shelters.--Except as 
                otherwise provided in regulations, for purposes of 
                subparagraph (A), services to individuals in the form 
                of--
                            ``(i) donations of food or meals, or
                            ``(ii) temporary shelter to homeless 
                        individuals,
                shall be treated as provided to individuals described 
                in subparagraph (A) if the location and operation of 
                such services are such that the service provider may 
                reasonably conclude that the beneficiaries of such 
                services are predominantly individuals described in 
                subparagraph (A).
            ``(4) Minimum expense requirement.--
                    ``(A) In general.--An organization meets the 
                requirements of this paragraph only if the Secretary 
                reasonably expects that the annual poverty program 
                expenses of such organization will not be less than 75 
                percent of the annual aggregate expenses of such 
                organization.
                    ``(B) Poverty program expense.--For purposes of 
                subparagraph (A)--
                            ``(i) In general.--The term `poverty 
                        program expense' means any expense in providing 
                        program services referred to in paragraph (3).
                            ``(ii) Exceptions.--Such term shall not 
                        include--
                                    ``(I) any management or general 
                                expense,
                                    ``(II) any expense for the purpose 
                                of influencing legislation (as defined 
                                in section 4911(d)),
                                    ``(III) any expense for the purpose 
                                of fundraising,
                                    ``(IV) any expense for a legal 
                                service provided on behalf of any 
                                individual referred to in paragraph 
                                (3), and
                                    ``(V) any expense which consists of 
                                a payment to an affiliate of the 
                                organization.
            ``(5) Election to treat poverty programs as separate 
        organization.--
                    ``(A) In general.--An organization may elect to 
                treat one or more programs operated by it as a separate 
                organization for purposes of this section.
                    ``(B) Effect of election.--If an organization 
                elects the application of this paragraph, the 
                organization shall, in accordance with regulations--
                            ``(i) maintain separate accounting for 
                        revenues and expenses of programs with respect 
                        to which the election was made,
                            ``(ii) ensure that contributions to which 
                        this section applies be used only for such 
                        programs, and
                            ``(iii) provide for the proportional 
                        allocation of management, general, and 
                        fundraising expenses to such programs to the 
                        extent not allocable to a specific program.
                    ``(C) Reporting requirements.--
                            ``(i) Organizations not otherwise required 
                        to file.--An organization not otherwise 
                        required to file any return under section 6033 
                        shall be required to file such a return with 
                        respect to any poverty program treated as a 
                        separate organization under this paragraph.
                            ``(ii) Organizations required to file.--An 
                        organization otherwise required to file a 
                        return under section 6033--
                                    ``(I) shall file a separate return 
                                with respect to any poverty program 
                                treated as a separate organization 
                                under this section, and
                                    ``(II) shall include on its own 
                                return the percentages equivalent to 
                                those required of qualified charities 
                                under the last sentence of section 
                                6033(b) and determined with respect to 
                                such organization (without regard to 
                                the expenses of any poverty program 
                                under subclause (I)).
            ``(6) Additional requirements for solicitation 
        organizations.--The requirements of this paragraph are met if 
        the organization--
                    ``(A) maintains separate accounting for revenues 
                and expenses, and
                    ``(B) makes available to the public its 
                administrative and fundraising costs and information as 
                to the organizations receiving funds from it and the 
                amount of such funds.
    ``(e) Substantiation Requirement for Contributions in Excess of 
$250.--No credit shall be allowed under subsection (a) for any 
contribution of $250 or more unless the taxpayer substantiates the 
contribution by a contemporaneous written acknowledgement by the 
qualified charity that meet the requirements of section 170(f)(8)(B). 
The rules of subparagraphs (C), (D), and (E) of section 170(f)(8) shall 
apply for purposes of this subsection.
    ``(f) Time When Contributions Deemed Made.--For purposes of this 
section, at the election of the taxpayer, a contribution which is made 
not later than the time prescribed by law for filing the return of tax 
for the taxable year (not including extensions thereof) shall be 
treated as made on the last day of such taxable year.
    ``(g) Coordination With Deduction for Charitable Contributions.--
            ``(1) Credit in lieu of deduction.--The credit provided by 
        subsection (a) for any qualified charitable contribution shall 
        be in lieu of any deduction otherwise allowable under this 
        chapter for such contribution.
            ``(2) Election to have section not apply.--A taxpayer may 
        elect for any taxable year to have this section not apply.''
    (b) Returns.--
            (1) Qualified charities required to provide copies of 
        annual return.--Subsection (e) of section 6104 of such Code 
        (relating to public inspection of certain annual returns and 
        applications for exemption) is amended by adding at the end the 
        following new paragraph:
            ``(3) Qualified charities required to provide copies of 
        annual return.--
                    ``(A) In general.--Every qualified charity (as 
                defined in section 25A(d)) shall, upon request of an 
                individual made at an office where such organization's 
                annual return filed under section 6033 is required 
                under paragraph (1) to be available for inspection, 
                provide a copy of such return to such individual 
                without charge other than a reasonable fee for any 
                reproduction and mailing costs. If the request is made 
                in person, such copies shall be provided immediately 
                and, if made other than in person, shall be provided 
                within 30 days.
                    ``(B) Period of availability.--Subparagraph (A) 
                shall apply only during the 3-year period beginning on 
                the filing date (as defined in paragraph (1)(D)) of the 
                return requested.''
            (2) Additional information.--Section 6033(b) of such Code 
        is amended by adding at the end the following new flush 
        sentence:
``Each qualified charity (as defined in section 25A(d)) to which this 
subsection otherwise applies shall also furnish each of the percentages 
determined by dividing the following categories of the organization's 
expenses for the year by its total expenses for the year: program 
services; management and general; fundraising; and payments to 
affiliates and shall also furnish the category or categories (including 
food, shelter, education, substance abuse, job training, or otherwise) 
of services which constitute its predominant activities.''
    (c) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 25 the following new item:

                              ``Sec. 25A. Credit for certain charitable 
                                        contributions.''
    (d) Effective Date.--The amendments made by this section shall take 
effect as provided in section 112 (relating to offsetting legislation 
to eliminate corporate tax subsidies).
    (e) Study and Report.--
            (1) Study.--The Comptroller General of the United States 
        shall conduct a study of the effects of the credit under 
        section 25A of the Internal Revenue Code of 1986, including--
                    (A) the types of organizations which receive 
                contributions during the first year to which the credit 
                applies, and
                    (B) the types of services provided to the poor by 
                such organizations.
            (2) Report.--The Comptroller General shall report to the 
        Congress the results of such study, including--
                    (A) the geographical distribution of funding from 
                charity tax credit contributions, and an analysis of 
                Internal Revenue Service form 990s of qualified 
                charities to determine if the broad categories of 
                services provided to the poor (including food, shelter, 
                education, substance abuse, job training, or otherwise) 
                match the services that would otherwise be provided by 
                Federal welfare program funds without the enactment of 
                the reductions in the programs called for by this 
                legislation, and
                    (B) any recommendations for legislative changes.

                        PART II--BUDGET OFFSETS

                         Subpart A--Tax Offsets

SEC. 111. REPEAL OF EARNED INCOME CREDIT FOR INDIVIDUALS WITHOUT 
              CHILDREN.

    (a) In General.--Subparagraph (A) of section 32(c)(1) of the 
Internal Revenue Code of 1986 (defining eligible individual) is amended 
to read as follows:
                    ``(A) In general.--The term `eligible individual' 
                means any individual who has a qualifying child for the 
                taxable year.''.
    (b) Conforming Amendments.--Each of the tables contained in 
paragraphs (1) and (2) of section 32(b) of such Code are amended by 
striking the items relating to no qualifying children.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1999.

SEC. 112. LEGISLATION TO ELIMINATE CORPORATE TAX SUBSIDIES.

    (a) Legislation to Eliminate Corporate Tax Subsidies.--
            (1) In general.--Within 30 days after the date of the 
        enactment of this Act, the House Committee on Ways and Means 
        and the Senate Committee on Finance shall each report changes 
        in laws within its jurisdiction reducing corporate tax 
        subsidies sufficient to raise revenues by not less than 
        $700,000,000 in calendar year 1997, $3,000,000,000 in calendar 
        year 1998, $3,000,000,000 in calendar year 1999, $3,500,000,000 
        in calendar year 2000, and $4,500,000,000 in calendar year 
        2001.
            (2) Additional amounts.--Amounts referred to in subsection 
        (a) shall be in addition to amounts to be reconciled to carry 
        out sections 201 and 202 of House Concurrent Resolution 178 
        (104th Congress).
    (b) Effective Date.--
            (1) In general.--The amendments made by section 101 shall 
        apply to contributions made on or after January 1 of the first 
        calendar year following the calendar year in which the Director 
        of the Office of Management and Budget (hereinafter in this 
        subsection referred to as the ``Director'') submits--
                    (A) the report required by section 252(d) of the 
                Balanced Budget and Emergency Deficit Control Act of 
1985 for the legislation reported pursuant to subsection (a)(1); and
                    (B) at the same time a certification that, based 
                upon the estimates set forth in that report of the 
                increase in receipts resulting from that legislation, 
                such increase is not less than the increase specified 
                in subsection (a)(1) for each of calendar years 1997 
                through 2001.
            (2) Authorization.--The Director is authorized and directed 
        to carry out his duties under paragraph (1)(B).

                     Subpart B--Food Stamp Program

SEC. 121. ALTERNATIVE AUTHORIZATIONS OF APPROPRIATIONS.

    (a) Authorization of Appropriations for Current Program.--If 
section 403 of the Social Security Act (42 U.S.C. 603) is not replaced 
as a result of a statute enacted before October 1, 1998, then the first 
sentence of section 18(a)(1) of the Food Stamp Act of 1977 (7 U.S.C. 
2027(a)(1)) is amended by striking ``1997.'' and inserting ``1998, 
$29,642,000,000 for fiscal year 1999, $30,176,000,000 for fiscal year 
2000, and $30,697,000,000 for fiscal year 2001.''.
    (b) Authorization of Appropriations for Program As Amended by 
Reconciliation Act.--If section 403 of the Social Security Act (42 
U.S.C. 603) is replaced as a result of a statute enacted before October 
1, 1998, then the first sentence of section 18(a)(1) of the Food Stamp 
Act of 1977 (7 U.S.C. 2027(a)(1)) is amended by striking ``1997.'' and 
inserting ``1998, $25,647,000,000 for fiscal year 1999, $26,008,000,000 
for fiscal year 2000, and $26,193,000,000 for fiscal year 2001.''.

            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.

    (a) In General.--Notwithstanding any other provision of law, the 
Secretary of Health and Human Services shall reduce the amount 
otherwise payable to each State under the selected payment provisions 
of part A of title IV of the Social Security Act, for each quarter in 
calendar year 1999, 2000, and 2001, by such equal percentage for the 
calendar quarter as may be necessary to ensure that the total amount of 
such reductions for the calendar year equals the applicable percentage 
for the calendar year of the total of such otherwise payable amounts.
    (b) Definitions.--As used in subsection (a):
            (1) Applicable percentage.--The term ``applicable 
        percentage'' means--
                    (A) for calendar year 1999, $1,950,000,000 divided 
                by the total amount which, in the absence of this 
                section, would be paid under the selected payment 
                provisions referred to in subsection (a) for the 
                calendar year;
                    (B) for calendar year 2000, $2,300,000,000 divided 
                by the total amount which, in the absence of this 
                section, would be paid under the selected payment 
                provisions for calendar year 2000; or
                    (C) for calendar year 2001, $3,150,000,000 divided 
                by the total amount which, in the absence of this 
                section, would be paid under the selected payment 
                provisions for calendar year 2001.
            (2) Selected payment provisions of part a of title iv of 
        the social security act.--The term ``selected payment 
        provisions of part A of title IV of the Social Security Act'' 
        means section 403 of the Social Security Act or, if such 
        section is replaced after June 24, 1996, section 403(a)(1) of 
        the Social Security Act.
            (3) State.--The term ``State'' has the meaning given such 
        term by section 1101(a)(1) of the Social Security Act when used 
        in title IV of such Act.

SEC. 132. REPEAL OF BLOCK GRANTS TO STATES FOR SOCIAL SERVICES.

    (a) Repeal.--Title XX of the Social Security Act (42 U.S.C. 1397 et 
seq.) is repealed.
    (b) No Effect on Funds Obligated for Qualified Empowerment Zones 
and Qualified Enterprise Communities.--The repeal made by subsection 
(a) shall not apply to funds obligated under section 2007 of the Social 
Security Act before the effective date of this section.
    (c) Effective Date.--This section and the amendments and repeals 
made by this section shall take effect on October 1, 1997.

         Subpart D--Housing and Community Development Programs

SEC. 141. REDUCTION OF COMMUNITY DEVELOPMENT BLOCK GRANT AMOUNTS.

    Section 103 of the Housing and Community Development Act of 1974 
(42 U.S.C. 5303) is amended--
            (1) by striking the second sentence and inserting the 
        following new sentence: ``For purposes of assistance under 
        section 106, there is authorized to be appropriated 
        $3,312,000,000 for each of fiscal years 1999, 2000, and 
        2001.'';
            (2) by inserting ``(a) Authorization of Appropriations.--'' 
        after ``Sec. 103.''; and
            (3) by adding at the end the following new subsection:
    ``(b) Limitation.--Notwithstanding subsection (a) or any other 
provision of law, the amount authorized to be appropriated and the 
amount used for grants under this title in fiscal year 1999 or any 
fiscal year thereafter may not exceed $3,312,000,000. This subsection 
may not be construed to authorize the appropriation of any amounts for 
any fiscal year.''.

SEC. 142. REPEAL OF HOME PROGRAM.

    (a) Repeal.--Effective January 1, 1999, title II of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.) is 
repealed.
    (b) HOME Investment Trust Funds.--Notwithstanding subsection (a), 
the Secretary of Housing and Urban Development shall maintain a HOME 
Investment Trust Fund in accordance with section 218 of the Cranston-
Gonzalez National Affordable Housing Act, as in effect before the 
repeal under subsection (a), for each participating jurisdiction during 
the period of time that the jurisdiction has a positive balance in such 
fund. Amounts credited to the HOME Investment Trust Fund of a 
participating jurisdiction shall be available, on and after January 1, 
1999, in accordance with the terms of title II of the Cranston-Gonzalez 
National Affordable Housing Act, as in effect before such repeal.
    (c) Affordable Housing Requirements.--The repeal under subsection 
(a) shall not affect any agreement, obligation, or requirement, 
pursuant to title II of the Cranston-Gonzalez National Affordable 
Housing Act (as in effect before such repeal), to maintain housing 
assisted under such title as affordable housing.
    (d) Conforming Amendments.--Effective January 1, 1999--
            (1) the United States Housing Act of 1937 is amended--
                    (A) in section 8(f) (42 U.S.C. 1437f(f))--
                            (i) by striking paragraph (4); and
                            (ii) by redesignating paragraphs (5), (6), 
                        and (7) as paragraphs (4), (5), and (6), 
                        respectively; and
                    (B) in section 303(c) (42 U.S.C. 1437aaa-2(c)), by 
                striking paragraph (3);
            (2) section 213(d)(1)(A)(ii) of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 1439(d)(1)(A)(ii)) is 
        amended--
                    (A) in the first sentence, by striking 
                ``participating'';
                    (B) by striking the penultimate sentence; and
                    (C) in the last sentence, by striking ``The 
                preceding sentence'' and inserting ``This clause'';
            (3) section 1004(20) of the Residential Lead-Based Paint 
        Hazard Reduction Act of 1992 (42 U.S.C. 4851b(20)) is amended 
        by inserting ``as in effect on December 31, 1998,'' after the 
        comma;
            (4) the last sentence of section 1205(f)(1)(A) of the 
        Removal of Regulatory Barriers to Affordable Housing Act of 
        1992 (42 U.S.C. 12705c(f)(1)(A)) is amended by inserting ``as 
        in effect on December 31, 1998,'' after the second comma;
            (5) section 40(g) of the Federal Deposit Insurance Act (12 
        U.S.C. 1831q(g)) is amended by striking paragraph (5); and
            (6) section 226(b)(5)(D) of the Low-Income Housing 
        Preservation and Resident Homeownership Act of 1990 (12 U.S.C. 
        4116(b)(5)(D)) is amended--
                    (A) in the third sentence, by inserting ``(as in 
                effect on December 31, 1998)'' before the period; and
                    (B) by adding at the end the following: ``If the 
                HOME Investment Trust Fund for the unit of general 
                local government or State in which the housing is 
                located has been terminated, any such proceeds shall be 
                paid to such unit or State and the Secretary shall take 
                such actions as are necessary to ensure that such 
                proceeds are immediately available for such eligible 
                activities to expand the supply of affordable 
                housing.''.

                      Subtitle B--Other Provisions

SEC. 151. CREDIT FOR CHARITABLE CONTRIBUTIONS TO INDIVIDUALS PROVIDING 
              HOME CARE TO CERTAIN INDIVIDUALS IN NEED.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits), as amended by section 101, is amended by inserting 
after section 25A the following new section:

``SEC. 25B. CREDIT FOR HOME CARE FOR NEEDY INDIVIDUALS.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this chapter for a 
taxable year an amount equal to $500 for each eligible individual.
    ``(b) Eligible Individual.--For purposes of this section--
            ``(1) In general.--The term `eligible individual' means an 
        individual--
                    ``(A) who is a member of a class of individuals 
                described in paragraph (2), and
                    ``(B) to whom the taxpayer provides qualified home 
                care services which are required by the individual by 
                reason of being a member of such a class.
            ``(2) Needy individuals.--The classes of individuals 
        described in this paragraph are as follows:
                    ``(A) Unmarried pregnant women.
                    ``(B) Hospice care patients, including AIDS 
                patients and cancer patients.
                    ``(C) Homeless individuals.
                    ``(D) Battered women and battered women with 
                children.
            ``(3) Qualified home care services.--The term `qualified 
        home care services' means those services which the taxpayer is 
        certified as being qualified to provide to an eligible 
        individual by an organization--
                    ``(A) which is described in section 501(c)(3) and 
                exempt from tax under section 501(a), and
                    ``(B) the predominant activity of which is 
                providing care to one or more classes of eligible 
                individuals.''
    (b) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 25A the 
following new item:

                              ``Sec. 25B. Credit for home care for 
                                        needy individuals.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1996.

SEC. 152. MEDICAL VOLUNTEER TORT CLAIM IMMUNITY.

    Section 224 of the Public Health Service Act (42 U.S.C. 233) is 
amended by adding at the end the following subsection:
    ``(o)(1) For purposes of this section, a free clinic health 
professional shall in providing a qualifying health service to an 
individual be deemed to be an employee of the Public Health Service for 
a calendar year that begins during a fiscal year for which a transfer 
was made under paragraph (6)(D). The preceding sentence is subject to 
the provisions of this subsection.
    ``(2) In providing a health service to an individual, a health care 
practitioner shall for purposes of this subsection be considered to be 
a free clinic health professional if the following conditions are met:
            ``(A) The service is provided to the individual at a free 
        clinic, or through offsite programs or events carried out by 
        the free clinic.
            ``(B) The free clinic is sponsoring the health care 
        practitioner pursuant to paragraph (5)(C).
            ``(C) The service is a qualifying health service (as 
        defined in paragraph (4)).
            ``(D) Neither the health care practitioner nor the free 
        clinic receives any compensation for the service from the 
        individual or from any third-party payor (including 
        reimbursement under any insurance policy or health plan, or 
        under any Federal or State health benefits program). With 
        respect to compliance with such condition:
                    ``(i) The health care practitioner may receive 
                repayment from the free clinic for reasonable expenses 
                incurred by the health care practitioner in the 
                provision of the service to the individual.
                    ``(ii) The free clinic may accept voluntary 
                donations for the provision of the service by the 
                health care practitioner to the individual.
            ``(E) Before the service is provided, the health care 
        practitioner or the free clinic provides written notice to the 
        individual of the extent to which the legal liability of the 
        health care practitioner is limited pursuant to this subsection 
        (or in the case of an emergency, the written notice is provided 
        to the individual as soon after the emergency as is 
        practicable). If the individual is a minor or is otherwise 
        legally incompetent, the condition under this subparagraph is 
        that the written notice be provided to a legal guardian or 
        other person with legal responsibility for the care of the 
        individual.
            ``(F) At the time the service is provided, the health care 
        practitioner is licensed or certified in accordance with 
        applicable law regarding the provision of the service.
    ``(3)(A) For purposes of this subsection, the term `free clinic' 
means a health care facility operated by a nonprofit private entity 
meeting the following requirements:
            ``(i) The entity does not, in providing health services 
        through the facility, accept reimbursement from any third-party 
        payor (including reimbursement under any insurance policy or 
        health plan, or under any Federal or State health benefits 
        program).
            ``(ii) The entity, in providing health services through the 
        facility, either does not impose charges on the individuals to 
        whom the services are provided, or imposes a charge according 
        to the ability of the individual involved to pay the charge.
            ``(iii) The entity is licensed or certified in accordance 
        with applicable law regarding the provision of health services.
    ``(B) With respect to compliance with the conditions under 
subparagraph (A), the entity involved may accept voluntary donations 
for the provision of services.
    ``(4) For purposes of this subsection, the term `qualifying health 
service' means any medical assistance required or authorized to be 
provided in the program under title XIX of the Social Security Act, 
without regard to whether the medical assistance is included in the 
plan submitted under such program by the State in which the health care 
practitioner involved provides the medical assistance. References in 
the preceding sentence to such program shall as applicable be 
considered to be references to any successor to such program.
    ``(5) Subsection (g) (other than paragraphs (3) through (5)) and 
subsections (h), (i), and (l) apply to a health care practitioner for 
purposes of this subsection to the same extent and in the same manner 
as such subsections apply to an officer, governing board member, 
employee, or contractor of an entity described in subsection (g)(4), 
subject to paragraph (6) and subject to the following:
            ``(A) The first sentence of paragraph (1) applies in lieu 
        of the first sentence of subsection (g)(1)(A).
            ``(B) This subsection may not be construed as deeming any 
        free clinic to be an employee of the Public Health Service for 
        purposes of this section.
            ``(C) With respect to a free clinic, a health care 
        practitioner is not a free clinic health professional unless 
        the free clinic sponsors the health care practitioner. For 
        purposes of this subsection, the free clinic shall be 
        considered to be sponsoring the health care practitioner if--
                    ``(i) with respect to the health care practitioner, 
                the free clinic submits to the Secretary an application 
                meeting the requirements of subsection (g)(1)(D); and
                    ``(ii) the Secretary, pursuant to subsection 
                (g)(1)(E), determines that the health care practitioner 
                is deemed to be an employee of the Public Health 
                Service.
            ``(D) In the case of a health care practitioner who is 
        determined by the Secretary pursuant to subsection (g)(1)(E) to 
        be a free clinic health professional, this subsection applies 
        to the health care practitioner (with respect to the free 
        clinic sponsoring the health care practitioner pursuant to 
        subparagraph C)) for any cause of action arising from an act or 
        omission of the health care practitioner occurring on or after 
        the date on which the Secretary makes such determination.
            ``(E) Subsection (g)(1)(F) applies to a health care 
        practitioner for purposes of this subsection only to the extent 
        that, in providing health services to an individual, each of 
        the conditions specified in paragraph (2) is met.
    ``(6)(A) For purposes of making payments for judgments against the 
United States (together with related fees and expenses of witnesses) 
pursuant to this section arising from the acts or omissions of free 
clinic health professionals, there is authorized to be appropriated 
$10,000,000 for each fiscal year.
    ``(B) The Secretary shall establish a fund for purposes of this 
subsection. Each fiscal year amounts appropriated under subparagraph 
(A) shall be deposited in such fund.
    ``(C) Not later than May 1 of each fiscal year, the Attorney 
General, in consultation with the Secretary, shall submit to the 
Congress a report providing an estimate of the amount of claims 
(together with related fees and expenses of witnesses) that, by reason 
of the acts or omissions of free clinic health professionals, will be 
paid pursuant to this section during the calendar year that begins in 
the following fiscal year. Subsection (k)(1)(B) applies to the estimate 
under the preceding sentence regarding free clinic health professionals 
to the same extent and in the same manner as such subsection applies to 
the estimate under such subsection regarding officers, governing board 
members, employees, and contractors of entities described in subsection 
(g)(4).
    ``(D) Not later than December 31 of each fiscal year, the Secretary 
shall transfer from the fund under subparagraph (B) to the appropriate 
accounts in the Treasury an amount equal to the estimate made under 
subparagraph (C) for the calendar year beginning in such fiscal year, 
subject to the extent of amounts in the fund.
    ``(7)(A) This subsection takes effect on the date of the enactment 
of the first appropriations Act that makes an appropriation under 
paragraph (6)(A), except as provided in subparagraph (B)(i).
    ``(B)(i) Effective on the date of the enactment of the Health 
Insurance Portability and Accountability Act of 1996--
            ``(I) the Secretary may issue regulations for carrying out 
        this subsection, and the Secretary may accept and consider 
        applications submitted pursuant to paragraph (5)(C); and
            ``(II) reports under paragraph (6)(C) may be submitted to 
        the Congress.
    ``(ii) For the first fiscal year for which an appropriation is made 
under subparagraph (A) of paragraph (6), if an estimate under 
subparagraph (C) of such paragraph has not been made for the calendar 
year beginning in such fiscal year, the transfer under subparagraph (D) 
of such paragraph shall be made notwithstanding the lack of the 
estimate, and the transfer shall be made in an amount equal to the 
amount of such appropriation.''.

SEC. 153. COMMUNITY PARTNERSHIP GRANT PROGRAM.

    (a) In General.--The Attorney General and the Secretary of Health 
and Human Services shall jointly establish and carry out a competitive 
grant program to provide funding to States and communities to--
            (1) establish an information network to enhance 
        coordination of matches between--
                    (A) churches, synagogues and other communities of 
                faith, and other community groups; and
                    (B)(i) families receiving aid to families with 
                dependent children under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.) who 
                voluntarily elect to participate; or
                    (ii) nonviolent criminal offenders who elect to 
                participate, and are directed to such a program through 
                the judicial system;
            (2) hire staff to coordinate matches, recruit churches, 
        enhance coordination between the public welfare system, 
        judicial system, churches, synagogues and other communities of 
        faith, and other community groups; and
            (3) disseminate information, including training, to 
        Government agencies and interested community groups about 
        programs receiving funding under this Act.
    (b) Funding.--
            (1) In general.--A grant under this section shall not 
        exceed $1,000,000 in any fiscal year.
            (2) Sources.--There are authorized to be appropriated not 
        more than $50,000,000, of which--
                    (A) not more than $25,000,000 shall be available 
                from the Violent Crime Reduction Trust Fund; and
                    (B) not more than $25,000,000 shall be available 
                from funds appropriated to the Secretary of Health and 
                Human Services for administrative expenses.
    (c) Information Clearinghouses.--Of the amount made available under 
subsection (b), not more than a total of $1,000,000 shall be available 
to the Attorney General and Secretary of Health and Human Services for 
each to establish a national information clearinghouse at the 
Department of Justice and the Department of Health and Human Services, 
respectively, to provide information and networking to assist States in 
establishing and carrying out programs under subsection (a).

                    TITLE II--COMMUNITY EMPOWERMENT

                         Subtitle A--Education

SEC. 201. SHORT TITLE.

    This subtitle may be cited as the ``Educational Choice and Equity 
Act of 1995''.

SEC. 202. PURPOSE.

    The purpose of this subtitle is to determine the effects on 
students and schools of providing financial assistance to low-income 
parents to enable such parents to select the public or private schools 
their children will attend.

SEC. 203. DEFINITIONS.

    As used in this subtitle--
            (1) the term ``choice school'' means any public or private 
        school, including a private sectarian school or a public 
        charter school, that is involved in a demonstration project 
        assisted under this subtitle;
            (2) the term ``eligible child'' means a child in grades 1 
        through 12 who is eligible for free or reduced price lunches 
        under the National School Lunch Act (42 U.S.C. 1751 et seq.);
            (3) the term ``eligible entity'' means a public agency, 
        institution, or organization, such as a State, a State or local 
        educational agency, a consortium of public agencies, or a 
        consortium of public and private nonprofit organizations, that 
        can demonstrate, to the satisfaction of the Secretary, its 
        ability to--
                    (A) receive, disburse, and account for Federal 
                funds; and
                    (B) carry out the activities described in its 
                application under this subtitle;
            (4) the term ``evaluating agency'' means any academic 
        institution, consortium of professionals, or private or 
        nonprofit organization, with demonstrated experience in 
        conducting evaluations, that is not an agency or 
        instrumentality of the Federal Government;
            (5) the term ``local educational agency'' has the meaning 
        given that term in section 14101 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 8801);
            (6) the term ``parent'' includes a legal guardian or other 
        individual acting in loco parentis;
            (7) the term ``school'' means a school that provides 
        elementary education or secondary education (through grade 12), 
        as determined under State law; and
            (8) the term ``Secretary'' means the Secretary of 
        Education.

SEC. 204. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated $600,000,000 for fiscal 
year 1996 and such sums as may be necessary for each of the fiscal 
years 1997, 1998, 1999, and 2000 to carry out this subtitle.

SEC. 205. PROGRAM AUTHORIZED.

    (a) Reservation.--From the amount appropriated pursuant to the 
authority of section 204 in any fiscal year, the Secretary shall 
reserve and make available to the Comptroller General of the United 
States 2 percent for evaluation of the demonstration projects assisted 
under this subtitle in accordance with section 210A.
    (b) Grants.--
            (1) In general.--From the amount appropriated pursuant to 
        the authority of section 204 and not reserved under subsection 
        (a) for any fiscal year, the Secretary shall award grants to 
        eligible entities to enable such entities to carry out at least 
        100 demonstration projects under which low-income parents 
        receive education certificates for the costs of enrolling their 
        eligible children in a choice school.
            (2) Amount.--The Secretary shall award grants under 
        paragraph (1) for fiscal year 1996 in amounts of $5,000,000 or 
        less.
            (3) Continuing eligibility.--The Secretary shall continue a 
        demonstration project under this subtitle by awarding a grant 
        under paragraph (1) to an eligible entity that received such a 
        grant for a fiscal year preceding the fiscal year for which the 
        determination is made, if the Secretary determines that such 
        eligible entity was in compliance with this subtitle for such 
        preceding fiscal year.
    (c) Use of Grants.--Grants awarded under subsection (b) shall be 
used to pay the costs of--
            (1) providing education certificates to low-income parents 
        to enable such parents to pay the tuition, the fees, the 
        allowable costs of transportation, if any, and the costs of 
        complying with section 209(a)(1), if any, for their eligible 
        children to attend a choice school; and
            (2) administration of the demonstration project, which 
        shall not exceed 15 percent of the amount received under the 
        grant for the first fiscal year for which the eligible entity 
        provides education certificates under this subtitle or 10 
        percent of such amount for any subsequent year, including--
                    (A) seeking the involvement of choice schools in 
                the demonstration project;
                    (B) providing information about the demonstration 
                project, and the schools involved in the demonstration 
                project, to parents of eligible children;
                    (C) making determinations of eligibility for 
                participation in the demonstration project for eligible 
                children;
                    (D) selecting students to participate in the 
                demonstration project;
                    (E) determining the amount of, and issuing, 
                education certificates;
                    (F) compiling and maintaining such financial and 
                programmatic records as the Secretary may prescribe; 
                and
                    (G) collecting such information about the effects 
                of the demonstration project as the evaluating agency 
                may need to conduct the evaluation described in section 
                210A.
    (d) Special Rule.--Each school participating in a demonstration 
project under this subtitle shall comply with title VI of the Civil 
Rights Act of 1964 (42 U.S.C. 2000d et seq.) which prohibits 
discrimination on the basis of race, color, or national origin.

SEC. 206. AUTHORIZED PROJECTS; PRIORITY.

    (a) Authorized Projects.--The Secretary may award a grant under 
this subtitle only for a demonstration project that--
            (1) involves at least one local educational agency that--
                    (A) receives funds under section 1124A of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6334); and
                    (B) is among the 20 percent of local educational 
                agencies receiving funds under section 1124A of such 
                Act (20 U.S.C. 6334) in the State that have the highest 
                number of children described in section 1124(c) of such 
                Act (20 U.S.C. 6333(c)); and
            (2) includes the involvement of a sufficient number of 
        public and private choice schools, in the judgment of the 
        Secretary, to allow for a valid demonstration project.
    (b) Priority.--In awarding grants under this subtitle, the 
Secretary shall give priority to demonstration projects--
            (1) in which choice schools offer an enrollment opportunity 
        to the broadest range of eligible children;
            (2) that involve diverse types of choice schools; and
            (3) that will contribute to the geographic diversity of 
        demonstration projects assisted under this subtitle, including 
        awarding grants for demonstration projects in States that are 
        primarily rural and awarding grants for demonstration projects 
        in States that are primarily urban.

SEC. 207. APPLICATIONS.

    (a) In General.--Any eligible entity that wishes to receive a grant 
under this subtitle shall submit an application to the Secretary at 
such time and in such manner as the Secretary may prescribe.
    (b) Contents.--Each application described in subsection (a) shall 
contain--
            (1) information demonstrating the eligibility of the 
        eligible entity for participation in the demonstration project;
            (2) with respect to choice schools--
                    (A) a description of the standards used by the 
                eligible entity to determine which public and private 
                schools are within a reasonable commuting distance of 
                eligible children and present a reasonable commuting 
                cost for such eligible children;
                    (B) a description of the types of potential choice 
                schools that will be involved in the demonstration 
                project;
                    (C)(i) a description of the procedures used to 
                encourage public and private schools to be involved in 
                the demonstration project; and
                    (ii) a description of how the eligible entity will 
                annually determine the number of spaces available for 
                eligible children in each choice school;
                    (D) an assurance that each choice school will not 
                impose higher standards for admission or participation 
                in its programs and activities for eligible children 
                provided education certificates under this subtitle 
                than the choice school does for other children;
                    (E) an assurance that each choice school operated, 
                for at least 1 year prior to accepting education 
                certificates under this subtitle, an educational 
                program similar to the educational program for which 
                such choice school will accept such education 
                certificates;
                    (F) an assurance that the eligible entity will 
                terminate the involvement of any choice school that 
                fails to comply with the conditions of its involvement 
                in the demonstration project; and
                    (G) a description of the extent to which choice 
                schools will accept education certificates under this 
                subtitle as full or partial payment for tuition and 
                fees;
            (3) with respect to the participation in the demonstration 
        project of eligible children--
                    (A) a description of the procedures to be used to 
                make a determination of the eligibility of an eligible 
                child for participation in the demonstration project, 
                which shall include--
                            (i) the procedures used to determine 
                        eligibility for free or reduced price lunches 
                        under the National School Lunch Act (42 U.S.C. 
                        1751 et seq.); or
                            (ii) any other procedure, subject to the 
                        Secretary's approval, that accurately 
                        establishes the eligibility of an eligible 
                        child for such participation;
                    (B) a description of the procedures to be used to 
                ensure that, in selecting eligible children to 
                participate in the demonstration project, the eligible 
                entity will--
                            (i) apply the same criteria to both public 
                        and private school eligible children; and
                            (ii) give priority to eligible children 
                        from the lowest income families;
                    (C) a description of the procedures to be used to 
                ensure maximum choice of schools for participating 
                eligible children, including procedures to be used 
                when--
                            (i) the number of parents provided 
                        education certificates under this subtitle who 
                        desire to enroll their eligible children in a 
                        particular choice school exceeds the number of 
                        eligible children that the choice school will 
                        accept; and
                            (ii) grant funds and funds from local 
                        sources are insufficient to support the total 
                        cost of choices made by parents with education 
                        certificates under this subtitle; and
                    (D) a description of the procedures to be used to 
                ensure compliance with section 209(a)(1), which may 
                include--
                            (i) the direct provision of services by a 
                        local educational agency; and
                            (ii) arrangements made by a local 
                        educational agency with other service 
                        providers;
            (4) with respect to the operation of the demonstration 
        project--
                    (A) a description of the geographic area to be 
                served;
                    (B) a timetable for carrying out the demonstration 
                project;
                    (C) a description of the procedures to be used for 
                the issuance and redemption of education certificates 
                under this subtitle;
                    (D) a description of the procedures by which a 
                choice school will make a pro rata refund of the 
                education certificate under this subtitle for any 
                participating eligible child who withdraws from the 
                school for any reason, before completing 75 percent of 
                the school attendance period for which the education 
                certificate was issued;
                    (E) a description of the procedures to be used to 
                provide the parental notification described in section 
                210;
                    (F) an assurance that the eligible entity will 
                place all funds received under this subtitle into a 
                separate account, and that no other funds will be 
                placed in such account;
                    (G) an assurance that the eligible entity will 
                provide the Secretary periodic reports on the status of 
                such funds;
                    (H) an assurance that the eligible entity will 
                cooperate with the Comptroller General of the United 
                States and the evaluating agency in carrying out the 
                evaluations described in section 210A; and
                    (I) an assurance that the eligible entity will--
                            (i) maintain such records as the Secretary 
                        may require; and
                            (ii) comply with reasonable requests from 
                        the Secretary for information; and
            (5) such other assurances and information as the Secretary 
        may require.

SEC. 208. EDUCATION CERTIFICATES.

    (a) Education Certificates.--
            (1) Amount.--The amount of an eligible child's education 
        certificate under this subtitle shall be determined by the 
        eligible entity, but shall be an amount that provides to the 
        recipient of the education certificate the maximum degree of 
        choice in selecting the choice school the eligible child will 
        attend.
            (2) Considerations.--
                    (A) In general.--Subject to such regulations as the 
                Secretary shall prescribe, in determining the amount of 
                an education certificate under this subtitle an 
                eligible entity shall consider--
                            (i) the additional reasonable costs of 
                        transportation directly attributable to the 
                        eligible child's participation in the 
                        demonstration project; and
                            (ii) the cost of complying with section 
                        209(a)(1).
                    (B) Schools charging tuition.--If an eligible child 
                participating in a demonstration project under this 
                subtitle was attending a public or private school that 
                charged tuition for the year preceding the first year 
                of such participation, then in determining the amount 
                of an education certificate for such eligible child 
                under this subtitle the eligible entity shall 
                consider--
                            (i) the tuition charged by such school for 
                        such eligible child in such preceding year; and
                            (ii) the amount of the education 
                        certificates under this subtitle that are 
                        provided to other eligible children.
            (3) Special rule.--An eligible entity may provide an 
        education certificate under this subtitle to the parent of an 
        eligible child who chooses to attend a school that does not 
        charge tuition or fees, to pay the additional reasonable costs 
        of transportation directly attributable to the eligible child's 
        participation in the demonstration project or the cost of 
        complying with section 209(a)(1).
    (b) Adjustment.--The amount of the education certificate for a 
fiscal year may be adjusted in the second and third years of an 
eligible child's participation in a demonstration project under this 
subtitle to reflect any increase or decrease in the tuition, fees, or 
transportation costs directly attributable to that eligible child's 
continued attendance at a choice school, but shall not be increased for 
this purpose by more than 10 percent of the amount of the education 
certificate for the fiscal year preceding the fiscal year for which the 
determination is made. The amount of the education certificate may also 
be adjusted in any fiscal year to comply with section 209(a)(1).
    (c) Maximum Amount.--Notwithstanding any other provision of this 
section, the amount of an eligible child's education certificate shall 
not exceed the per pupil expenditure for elementary or secondary 
education, as appropriate, by the local educational agency in which the 
public school to which the eligible child would normally be assigned is 
located for the fiscal year preceding the fiscal year for which the 
determination is made.
    (d) Income.--An education certificate under this subtitle, and 
funds provided under the education certificate, shall not be treated as 
income of the parents for purposes of Federal tax laws or for 
determining eligibility for any other Federal program.

SEC. 209. EFFECT ON OTHER PROGRAMS; USE OF SCHOOL LUNCH DATA; 
              CONSTRUCTION PROVISIONS.

    (a) Effect on Other Programs.--
            (1) In general.--An eligible child participating in a 
        demonstration project under this subtitle, who, in the absence 
        of such a demonstration project, would have received services 
        under part A of title I of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6311 et seq.) shall be 
        provided such services.
            (2) Part b of the individuals with disabilities education 
        act.--Nothing in this subtitle shall be construed to affect the 
        requirements of part B of the Individuals with Disabilities 
        Education Act (20 U.S.C. 1411 et seq.).
            (3) Counting of eligible children.--Notwithstanding any 
        other provision of law, any local educational agency 
        participating in a demonstration project under this subtitle 
        may count eligible children who, in the absence of such a 
        demonstration project, would attend the schools of such agency, 
        for purposes of receiving funds under any program administered 
        by the Secretary.
    (b) Use of School Lunch Data.--Notwithstanding section 9 of the 
National School Lunch Act (42 U.S.C. 1751 et seq.), an eligible entity 
receiving a grant under this subtitle may use information collected for 
the purpose of determining eligibility for free or reduced price 
lunches to determine an eligible child's eligibility to participate in 
a demonstration project under this subtitle and, if needed, to rank 
families by income, in accordance with section 207(b)(3)(B)(ii). All 
such information shall otherwise remain confidential, and information 
pertaining to income may be disclosed only to persons who need that 
information for the purposes of a demonstration project under this 
subtitle.
    (c) Construction Provisions.--
            (1) Other institutions.--Nothing in this subtitle shall be 
        construed to supersede or modify any provision of a State 
        constitution or State law that prohibits the expenditure of 
        public funds in or by religious or other private institutions, 
        except that no provision of a State constitution or State law 
        shall be construed or applied to prohibit--
                    (A) any eligible entity receiving funds under this 
                subtitle from using such funds to pay the 
                administrative costs of a demonstration project under 
                this subtitle; or
                    (B) the expenditure in or by religious or other 
                private institutions of any Federal funds provided 
                under this subtitle.
            (2) Desegregation plans.--Nothing in this subtitle shall be 
        construed to interfere with any desegregation plans that 
        involve school attendance areas affected by this subtitle.
            (3) Prohibition of federal director, supervision or 
        control.--Nothing in this subtitle shall be construed to 
        authorize the Secretary or any employee, officer, or agency of 
        the Department of Education to exercise any direction, 
        supervision, or control over the curriculum, program of 
        instruction, or personnel decisions of any educational 
        institution or school participating in a demonstration project 
        assisted under this subtitle.

SEC. 210. PARENTAL NOTIFICATION.

    Each eligible entity receiving a grant under this subtitle shall 
provide timely notice of the demonstration project to parents of 
eligible children residing in the area to be served by the 
demonstration project. At a minimum, such notice shall--
            (1) describe the demonstration project;
            (2) describe the eligibility requirements for participation 
        in the demonstration project;
            (3) describe the information needed to make a determination 
        of eligibility for participation in the demonstration project 
        for an eligible child;
            (4) describe the selection procedures to be used if the 
        number of eligible children seeking to participate in the 
        demonstration project exceeds the number that can be 
        accommodated in the demonstration project;
            (5) provide information about each choice school 
        participating in the demonstration project, including 
        information about any admission requirements or criteria for 
        each choice school participating in the demonstration project; 
        and
            (6) include the schedule for parents to apply for their 
        eligible children to participate in the demonstration project.

SEC. 210A. EVALUATION.

    (a) Annual Evaluation.--
            (1) Contract.--The Comptroller General of the United States 
        shall enter into a contract, with an evaluating agency that has 
        demonstrated experience in conducting evaluations, for the 
        conduct of an ongoing rigorous evaluation of the demonstration 
        projects under this subtitle.
            (2) Annual evaluation requirement.--The contract described 
        in paragraph (1) shall require the evaluating agency entering 
        into such contract to annually evaluate each demonstration 
        project under this subtitle in accordance with the evaluation 
        criteria described in subsection (b).
            (3) Transmission.--The contract described in paragraph (1) 
        shall require the evaluating agency entering into such contract 
        to transmit to the Comptroller General of the United States--
                    (A) the findings of each annual evaluation under 
                paragraph (1); and
                    (B) a copy of each report received pursuant to 
                section 210B(a) for the applicable year.
    (b) Evaluation Criteria.--The Comptroller General of the United 
States, in consultation with the Secretary, shall establish minimum 
criteria for evaluating the demonstration projects under this subtitle. 
Such criteria shall provide for--
            (1) a description of the implementation of each 
        demonstration project under this subtitle and the demonstration 
        project's effects on all participants, schools, and communities 
        in the demonstration project area, with particular attention 
        given to the effect of parent participation in the life of the 
        school and the level of parental satisfaction with the 
        demonstration project; and
            (2) a comparison of the educational achievement of all 
        students in the demonstration project area, including a 
        comparison of--
                    (A) students receiving education certificates under 
                this subtitle; and
                    (B) students not receiving education certificates 
                under this subtitle.

SEC. 210B. REPORTS.

    (a) Report by Grant Recipient.--Each eligible entity receiving a 
grant under this subtitle shall submit to the evaluating agency 
entering into the contract under section 210A(a)(1) an annual report 
regarding the demonstration project under this subtitle. Each such 
report shall be submitted at such time, in such manner, and accompanied 
by such information, as such evaluating agency may require.
    (b) Reports by Comptroller General.--
            (1) Annual reports.--The Comptroller General of the United 
        States shall report annually to the Congress on the findings of 
        the annual evaluation under section 210A(a)(2) of each 
        demonstration project under this subtitle. Each such report 
        shall contain a copy of--
                    (A) the annual evaluation under section 210A(a)(2) 
                of each demonstration project under this subtitle; and
                    (B) each report received under subsection (a) for 
                the applicable year.
            (2) Final report.--The Comptroller General shall submit a 
        final report to the Congress within 6 months after the 
        conclusion of the demonstration projects under this subtitle 
        that summarizes the findings of the annual evaluations 
        conducted pursuant to section 210A(a)(2).

               Subtitle B--Restitution and Responsibility

SEC. 211. RESTITUTION AND RESPONSIBILITY GRANT PROGRAM.

    (a) In General.--The Attorney General is authorized to provide 
grants to States to enable the States to--
            (1) collect data on victim restitution over a specified 
        period of time as determined by the Attorney General;
            (2) create or expand automated data systems to track 
        restitution payments;
            (3) make improvements in the manner in which restitution is 
        ordered and collected; and
            (4) enhance and expand methods of enforcement of 
        restitution orders.
    (b) Eligibility.--To be eligible to receive a grant under this 
section, a State shall--
            (1) submit an application to the Attorney General, in such 
        form as the Attorney General shall require, that meets the 
        requirements of subsection (c); and
            (2) certify that the State has a victim advocacy program 
        that--
                    (A) provides assistance to victims of crime 
                throughout the judicial process; and
                    (B) provides courts with a victim impact statement 
                prior to sentencing.
    (c) Application.--An application meets the requirements of this 
subsection if it includes--
            (1) a description of the State's victim advocacy program;
            (2) a description of the method by which the State compiles 
        or will compile data on restitution, including information on--
                    (A) restitution amounts ordered and collected;
                    (B) collection rates for incarcerated offenders and 
                offenders who are on probation;
                    (C) collection rates for offenders committing 
                felonies and for those committing misdemeanors; and
                    (D) rates of partial and full payment rates of 
                collection;
            (3) documentation of a State's current problems in 
        ordering, collecting, and enforcing restitution;
            (4) a description of State laws and practices related to 
        restitution;
            (5) a description of administrative and legislative options 
        to improve ordering, collecting, and enforcing restitution;
            (6) a description of the State's proposal to create or 
        expand an automated data processing system to track restitution 
        payments;
            (7) a description of the State's plan to improve the 
        ordering of restitution, including--
                    (A) provisions to ensure that courts order 
                restitution whenever a victim suffers economic loss as 
                a result of unlawful conduct by a defendant;
                    (B) provisions to ensure that restitution is 
                ordered in the full amount of the victim's loss, as 
                determined by the court;
                    (C) the prioritization of restitution in the 
                ordering and disbursing of fees; and
                    (D) such other provisions consistent with the 
                purposes of this section;
            (8) a description of how the State will improve collection 
        of restitution payments, including--
                    (A) the establishment of a central accounting, 
                billing, and collection system that tracks the 
                offender's obligations and status in meeting those 
                obligations;
                    (B) a process by which information about an 
                offender's restitution payments is made available to 
                probation officials;
                    (C) adopting methods to ensure payments such as 
                automatic docketing, billing, wage withholding, 
                privatization of collection, withholding State grant 
                privileges, or seizure of State income tax refunds; and
                    (D) other provisions consistent with the purposes 
                of this section;
            (9) a description of how the State will enforce restitution 
        payments, including--
                    (A) assigning an agency responsible for the 
                enforcement of a restitution order;
                    (B) adopting policies to increase the intensity of 
                sanctions if an offender defaults on payments, 
                including--
                            (i) revoking a term of probation or parole;
                            (ii) modifying the terms or conditions of 
                        probation or parole;
                            (iii) holding a defendant in contempt of 
                        court;
                            (iv) entering a restraining order or 
                        injunction; or
                            (v) ordering the sale of property of the 
                        defendant;
                    (C) adopting procedures to ensure restitution 
                orders are entered as civil judgments upon entry to 
                allow a victim to execute judgment if restitution 
                payments are delinquent; and
                    (D) such other provisions consistent with the 
                purposes of this section; and
            (10) the establishment of a community restitution fund 
        administered by a State agency into which restitution payments 
        are made by an offender (in addition to victim restitution 
        payments) and can be used to pay indigent offenders for 
        performing public service work.
    (d) Waiver.--The Attorney General may waive the requirements under 
subsection (c) for a State that demonstrates sufficient cause for lack 
of compliance.
    (e) Grant Period.--A grant under this section shall be awarded for 
a period of not more than 5 years.
    (f) Report.--Each State receiving a grant under this section shall 
submit an annual report to the Attorney General that includes an 
evaluation of the progress of the projects funded through the grant, an 
accounting of expenditures, and such other provisions as may be 
required by the Attorney General. The Attorney General shall issue an 
annual report to Congress that includes the information submitted by 
States under this subsection.
    (g) Evaluation.--
            (1) Final evaluation.--Within a month after the award of 
        the first grant made under this section, the Attorney General 
        shall contract with an independent organization to do a final 
        evaluation of the projects funded by this section at the end of 
        5 years.
            (2) Interim evaluation.--The Attorney General shall conduct 
        an interim evaluation of the projects funded by this section 3 
        years after the first grant made under this section.
            (3) Content of reports.--The reports required by paragraphs 
        (1) and (2) shall include the following information:
                    (A) An evaluation of data collection efforts.
                    (B) An assessment of whether ordering of 
                restitution increased and whether prioritizing 
                restitution in fees collected improved restitution 
                payments.
                    (C) An analysis of whether the project was 
                successful in improving significantly restitution 
                collection rates.
                    (D) An evaluation of most effective methods in 
                improving restitution collection and in enforcing 
                restitution payments.
                    (E) An analysis of how effective automated data 
                systems were in increasing restitution collection.
                    (F) An analysis of States' use of the community 
                restitution fund and its effectiveness in ensuring 
                indigent offenders pay restitution.
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated $10,000,000 in each of fiscal years 1997, 1998, 1999, 
2000, and 2001 to carry out this section

                        Subtitle C--Independence

SEC. 221. FINDINGS.

    The Congress finds that--
            (1) traditional welfare programs in the United States have 
        provided millions of low-income persons with critically needed 
        food, health, and cash benefits, and such programs should be 
        improved and continued;
            (2) while such programs have sustained millions of low-
        income persons, too rarely have such programs been successful 
        in promoting and supporting the transition to economic self-
        sufficiency;
            (3) millions of Americans continue to live in poverty and 
        continue to receive public assistance;
            (4) in addition to the social costs of poverty, the 
        economic costs to the Federal Government to provide basic 
        necessities to the poor exceeds $120,000,000,000 each year;
            (5) poverty is a loss of human resources and an assault on 
        human dignity;
            (6) poverty rates remain high and welfare dependency 
        continues, in part, because welfare theory has taken for 
        granted that a certain level of income or consumption is 
        necessary for one's economic well-being when, in fact, very few 
        people manage to spend or consume their way out of poverty;
            (7) economic well-being does not come solely from income, 
        spending, and consumption, but also requires savings, 
        investment, and accumulation of assets, since assets can 
        improve economic stability, connect people with a viable and 
        hopeful future, stimulate development of human and other 
        capital, enable people to focus and specialize, yield personal, 
        social, and political dividends, and enhance the welfare of 
        offspring;
            (8) income-based welfare policy should be complemented with 
        asset-based welfare policy, because while income-based policies 
        ensure that present consumption needs (including food, child 
        care, rent, clothing, and health care) are met, asset-based 
        policies provide the means to achieve economic self-sufficiency 
        and, accordingly, to leave public assistance;
            (9) there is reason to believe that the financial returns, 
        including increased income, tax revenue, and decreased welfare 
        cash assistance, of individual development accounts will far 
        exceed the cost of the investment;
            (10) the Federal Government spends more than 
        $160,000,000,000 each year to provide middle- and upper-income 
        persons with incentives to accumulate savings and assets 
        (including tax subsidies for home equity accumulation and 
        retirement pension accounts), but such benefits are beyond the 
        reach of most low-income persons;
            (11) under current welfare policies, poor families must 
        deplete most of their assets before qualifying for public 
        assistance;
            (12) the Federal Government should develop policies that 
        promote higher rates of personal savings and net private 
        domestic investment, both of which fall behind the levels 
        attained in other highly developed industrial nations; and
            (13) the Federal Government should undertake an asset-based 
        welfare policy demonstration project to determine the social, 
        civic, psychological, and economic effects of asset 
        accumulation opportunities for low-income persons, families, 
        and communities, and to determine if such a policy could 
        provide a new foundation for antipoverty policies and programs 
        in the United States.

SEC. 222. INDIVIDUAL DEVELOPMENT ACCOUNT DEMONSTRATION PROJECTS.

    (a) Purpose.--The purpose of this section is to provide for the 
establishment of demonstration projects designed to determine--
            (1) the social, civic, psychological, and economic effects 
        of providing to individuals and families with limited means an 
        incentive to accumulate assets;
            (2) the extent to which an asset-based welfare policy that 
        promotes saving for education, homeownership, and 
        microenterprise may be used to enable individuals and families 
        with low income to achieve economic self-sufficiency; and
            (3) the extent to which an asset-based welfare policy 
        improves the community in which participating individuals and 
        families live.
    (b) Applications.--
            (1) Submission.--
                    (A) In general.--Not later than 12 months after the 
                date of the enactment of this Act, a qualified entity 
                may submit to the Secretary an application to conduct a 
                demonstration project under this section.
                    (B) Qualified entity.--For purposes of this 
                subtitle, the term ``qualified entity'' means either--
                            (i) a not-for-profit organization described 
                        in section 501(c)(3) of the Internal Revenue 
                        Code of 1986 and exempt from taxation under 
                        section 501(a) of such Code; or
                            (ii) a State or local government agency 
                        submitting an application under such 
                        subparagraph jointly with an organization 
                        described in clause (i).
            (2) Criteria.--In considering whether to approve any 
        application to conduct a demonstration project under this 
        section, the Secretary shall assess the following:
                    (A) Sufficiency of project.--The degree to which 
                the project described in the application appears likely 
                to aid project participants in achieving economic self-
                sufficiency through activities requiring qualified 
                expenses (as defined in section 529(c)(1) of the 
                Internal Revenue Code of 1986, as added by section 223 
                of this Act). In making such assessment, the Secretary 
                shall consider the overall quality of project 
                activities in making any particular kind or combination 
                of qualified expenses (as so defined) to be an 
                essential feature of any project.
                    (B) Administrative ability.--The ability of the 
                applicant to responsibly administer the project.
                    (C) Ability to assist participants.--The ability of 
                the applicant to assist project participants to achieve 
                economic self-sufficiency through the development of 
                assets.
                    (D) Commitment of non-federal funds.--The aggregate 
                amount of direct funds from non-Federal public sector 
                and private sources that are formally committed to the 
                project.
                    (E) Adequacy of plan for providing information for 
                evaluation.--The adequacy of the plan for providing 
                information relevant to an evaluation of the project.
                    (F) Other factors.--Such other factors as the 
                Secretary may specify.
            (3) Preferences.--In considering an application to conduct 
        a demonstration project under this section, the Secretary shall 
        give preference to any application that--
                    (A) demonstrates the willingness and ability to 
                select individuals described in subsection (e) who are 
                predominantly from households in which a child (or 
                children) is living with the child's biological or 
                adoptive mother or father, legal guardian, or a 
                responsible adult relative with whom the child 
                regularly resides;
                    (B) provides a commitment of non-Federal funds with 
                a proportionately greater amount of funds committed by 
                private sector sources; and
                    (C) targets such individuals residing within 1 or 
                more relatively well-defined communities or 
                neighborhoods that experience low rates of income or 
                employment.
            (4) Approval.--Not later than 15 months after the date of 
        the enactment of this Act, the Secretary shall, on a 
        competitive basis, approve such applications to conduct 
        demonstration projects under this section as the Secretary 
        deems appropriate, taking into account the assessments required 
        by paragraphs (2) and (3). The Secretary is encouraged to 
        ensure that the applications that are approved involve a wide 
        range of communities (both rural and urban) and diverse 
        populations.
    (c) Demonstration Authority; Annual Grants.--
            (1) Demonstration authority.--If the Secretary approves an 
        application to conduct a demonstration project under this 
        section, the Secretary shall, not later than 16 months after 
        the date of the enactment of this Act, authorize the applicant 
        to conduct the project for 4 project years in accordance with 
        the approved application and this section.
            (2) Grant authority.--For each project year of a 
        demonstration project conducted under this section, the 
        Secretary shall make a grant to the qualified entity authorized 
        to conduct the project on the first day of the project year in 
        an amount not to exceed the greater of--
                    (A) the aggregate amount of funds committed by non-
                Federal sources; or
                    (B) $1,000,000.
            (3) Limitation on grant amounts per project.--The amount of 
        each grant for a project approved under this section shall not 
        exceed $10,000,000.
    (d) Reserve Fund.--
            (1) Establishment.--Each qualified entity grantee under 
        this section shall establish a Reserve Fund which shall be 
        maintained in accordance with this subsection.
            (2) Amounts in reserve fund.--
                    (A) In general.--As soon after receipt as is 
                practicable, a qualified entity grantee shall deposit 
                in the Reserve Fund established under paragraph (1)--
                            (i) all funds provided to the qualified 
                        entity grantee by any public or private source 
                        in connection with the demonstration project; 
                        and
                            (ii) the proceeds from any investment made 
                        under paragraph (3)(B).
                    (B) Individual development account penalties.--
                            (i) Penalty amounts authorized to be 
                        appropriated for payment to the reserve fund.--
                        With respect to the Reserve Fund established by 
                        a qualified entity grantee that provides 
                        financial assistance under subsection (g) to 
                        any individual who pays, or from whose 
                        individual development account is paid, a 
                        penalty amount, there is hereby appropriated to 
                        the Reserve Fund, without fiscal year 
                        limitation, an amount equal to such penalty 
                        amount.
                            (ii) Payment to reserve fund of penalty 
                        amounts appropriated therefore.--The Secretary 
                        shall make quarterly estimated payments to the 
                        Reserve Fund of any penalty amount appropriated 
                        pursuant to clause (i).
                    (C) Uniform accounting regulations.--The Secretary 
                shall prescribe regulations with respect to accounting 
                for amounts in Reserve Funds.
            (3) Use of reserve fund.--
                    (A) In general.--A qualified entity grantee shall 
                use the amounts in the Reserve Fund established under 
                paragraph (1) to--
                            (i) assist participants in the 
                        demonstration project in obtaining the skills 
                        and information necessary to achieve economic 
                        self-sufficiency through activities requiring 
                        qualified expenses (as so defined);
                            (ii) provide financial assistance in 
                        accordance with subsection (g) to individuals 
                        selected by the qualified entity grantee to 
                        participate in the project;
                            (iii) administer the project; and
                            (iv) provide the research organization 
                        evaluating the project under subsection (k) 
                        with such information with respect to the 
                        project as may be required for the evaluation.
                    (B) Authority to invest funds.--
                            (i) Guidelines.--The Secretary shall 
                        establish guidelines for investing amounts in 
                        Reserve Funds in a manner that provides high 
                        liquidity and low risk.
                            (ii) Investment.--A qualified entity 
                        grantee shall invest the amounts in its Reserve 
                        Fund that are not immediately needed to carry 
                        out the provisions of subparagraph (A), in 
                        accordance with guidelines established under 
                        clause (i).
                    (C) Limitation on uses.--Not more than 7.5 percent 
                of the amounts provided to a qualified entity grantee 
                under subsection (c)(2) shall be used by the qualified 
                entity grantee for the purposes described in clauses 
                (i), (iii), and (iv) of paragraph (3)(A), except that 
                if 2 or more qualified entities are jointly 
                administering a project, no qualified entity grantee 
                shall use more than its proportional share for such 
                purposes.
            (4) Unused federal grant funds transferred to the secretary 
        when project terminates.--Notwithstanding paragraph (3), upon 
        the termination of any demonstration project authorized under 
        this section, the qualified entity grantee conducting the 
        project shall transfer to the Secretary an amount equal to--
                    (A) the amounts in its Reserve Fund at time of the 
                termination; multiplied by
                    (B) a percentage equal to--
                            (i) the aggregate amount of grants made to 
                        the qualified entity grantee under subsection 
                        (c)(2); divided by
                            (ii) the aggregate amount of all moneys 
                        provided to the qualified entity grantee by all 
                        sources to conduct the project.
    (e) Eligibility for Assistance.--
            (1) In general.--Any individual who is a member of a 
        household that meets the following requirements shall be 
        eligible for assistance under a demonstration project conducted 
        under this section:
                    (A) Income test.--The adjusted gross income of the 
                household did not exceed the income limits established 
                under section 32(b)(2) of the Internal Revenue Code of 
                1986.
                    (B) Net worth test.--
                            (i) In general.--The net worth of the 
                        household, as of the close of the calendar year 
                        preceding the determination of eligibility, 
                        does not exceed $20,000.
                            (ii) Determination of net worth.--For 
                        purposes of clause (i), the net worth of a 
                        household is the amount equal to--
                                    (I) the aggregate market value of 
                                all assets that are owned in whole or 
                                in part by any member of the household, 
                                minus
                                    (II) the obligations or debts of 
                                any member of the household.
            (2) Individuals unable to complete the project.--The 
        Secretary shall establish such regulations as are necessary, 
        including prohibiting eligibility for further assistance under 
        a demonstration project conducted under this section, to ensure 
        compliance with this section if an individual participating in 
        the demonstration project moves from the community in which the 
        project is conducted or is otherwise unable to continue 
        participating in the project.
    (f) Selection of Individuals To Receive Assistance.--From among the 
individuals eligible for assistance under a demonstration project 
conducted under this section, each qualified entity grantee shall 
select the individuals--
            (1) whom the qualified entity grantee deems to be best 
        suited to receive such assistance; and
            (2) to whom the qualified entity grantee will provide 
        financial assistance in accordance with subsection (g).
    (g) Provision of Financial Assistance.--
            (1) In general.--Not less than once a month during each 
        project year, each qualified entity grantee under this section 
        shall deposit in the individual development account of each 
        individual participating in the project an amount--
                    (A) from the grant made under subsection (c)(2), 
                equal to the amount of earned income (as defined in 
                section 911(d)(2) of the Internal Revenue Code of 1986) 
                deposited during the month by the individual in the 
                individual's development account, and
                    (B) from the non-Federal funds described in 
                subsection (b)(2)(D), equal to the amount described in 
                subparagraph (A).
            (2) Limitation on financial assistance to individual.--Not 
        more than $2,000 from a grant made under subsection (c)(2) 
        shall be provided to any 1 individual.
            (3) Limitation on financial assistance to household.--Not 
        more than $4,000 from a grant made under subsection (c)(2) 
        shall be provided to any 1 household.
            (4) Withdrawal of funds.--The Secretary shall establish 
        such regulations as may be necessary to ensure that funds held 
        in an individual development account are not withdrawn except 
        for 1 or more of the qualified expenses specified in section 
        529(c)(1) of the Internal Revenue Code of 1986 (as added by 
        section 223 of this Act). Such regulations shall include a 
        requirement that a responsible official of the qualified entity 
        grantee conducting a project approve such withdrawal in 
        writing.
    (h) Local Control Over Demonstration Projects.--Each qualified 
entity grantee under this section shall, subject to the provisions of 
subsection (j), have sole authority over the administration of the 
project. The Secretary may prescribe only such regulations with respect 
to demonstration projects under this section as are necessary to ensure 
compliance with the approved applications and this section.
    (i) Semiannual Progress Reports.--
            (1) In general.--Each qualified entity grantee under this 
        section shall prepare semiannual reports on the progress of the 
        project. Each report shall specify for the semiannual period 
        covered by the report the following information:
                    (A) The number of individuals making a deposit into 
                an individual development account.
                    (B) Information on the amounts in the Reserve Fund 
                established with respect to the project.
                    (C) The amounts deposited in the individual 
                development accounts.
                    (D) The amounts withdrawn from the individual 
                development accounts and the purposes for which such 
                amounts were withdrawn.
                    (E) The balances remaining in the individual 
                development accounts.
                    (F) Such other information as the Secretary may 
                require to evaluate the project.
            (2) Submission of reports.--The qualified entity grantee 
        shall submit each report required to be prepared under 
        paragraph (1) to--
                    (A) the Secretary; and
                    (B) the Treasurer (or equivalent official) of the 
                State in which the project is conducted, if the State 
                or local government committed funds to the 
                demonstration project.
            (3) Timing.--The first report required by paragraph (1) 
        shall be submitted at the end of the 7-month period beginning 
        on the date the Secretary authorized the qualified entity 
        grantee to conduct the demonstration project, and subsequent 
        reports shall be submitted every 6 months thereafter, until the 
        conclusion of the project.
    (j) Sanctions.--
            (1) Authority to terminate demonstration project.--If the 
        Secretary determines that a qualified entity grantee under this 
        section is not operating the project in accordance with the 
        grantee's application or this section (and has not implemented 
        any corrective recommendations directed by the Secretary), the 
        Secretary shall terminate such grantee's authority to conduct 
        the project.
            (2) Actions required upon termination.--If the Secretary 
        terminates the authority to conduct a demonstration project, 
        the Secretary--
                    (A) shall suspend the project;
                    (B) shall take control of the Reserve Fund 
                established pursuant to subsection (d);
                    (C) shall make every effort to identify another 
                qualified entity willing and able to conduct the 
                project in accordance with the approved application 
                (or, as modified, if necessary to incorporate the 
                recommendations) and this section;
                    (D) shall, if the Secretary identifies such an 
                entity--
                            (i) authorize the entity to conduct the 
                        project in accordance with the approved 
                        application (or, as modified, if necessary, to 
                        incorporate the recommendations) and this 
                        section;
                            (ii) transfer to the entity control over 
                        the Reserve Fund established pursuant to 
                        subsection (d); and
                            (iii) consider, for purposes of this 
                        section--
                                    (I) such other entity to be the 
                                qualified entity originally authorized 
                                to conduct the project; and
                                    (II) the date of such authorization 
                                to be the date of the original 
                                authorization; and
                    (E) if, by the end of the 1-year period beginning 
                on the date of the termination, the Secretary has not 
                found such a qualified entity, shall--
                            (i) terminate the project; and
                            (ii) from the amount remaining in the 
                        Reserve Fund established as part of the 
                        project, remit to each source that provided 
                        funds under subsection (b)(2)(D) to the entity 
                        originally authorized to conduct the project, 
                        an amount that bears the same ratio to the 
                        amount so remaining as the amount provided by 
                        the source under subsection (b)(2)(D) bears to 
                        the amount provided by all such sources under 
                        subsection (b)(2)(D).
    (k) Evaluations.--
            (1) In general.--Not later than 16 months after the date of 
        the enactment of this Act, the Secretary shall enter into a 
        contract with an independent research organization to evaluate, 
        individually and as a group, all qualified entities and sources 
        participating in the demonstration projects conducted under 
        this section.
            (2) Factors to evaluate.--In evaluating any demonstration 
        project conducted under this section, the research organization 
        shall address the following factors:
                    (A) The savings account characteristics (such as 
                threshold amounts and match rates) required to 
                stimulate participation in the demonstration project, 
                and how such characteristics vary among different 
                populations or communities.
                    (B) What service configurations of the qualified 
                entity grantee (such as peer support, structured 
                planning exercises, mentoring, and case management) 
                increase the rate and consistency of participation in 
                the demonstration project and how such configurations 
                vary among different populations or communities.
                    (C) The economic, civic, psychological, and social 
                effects of asset accumulation, and how such effects 
                vary among different populations or communities.
                    (D) The effects of individual development accounts 
                on savings rates, homeownership, level of education 
                attained, and self-employment, and how such effects 
                vary among different populations or communities.
                    (E) The potential financial returns to the Federal 
                Government and to other public sector and private 
                sector investors in individual development accounts 
                over a 5-year and 10-year period of time.
                    (F) The lessons to be learned from the 
                demonstration projects conducted under this section and 
                if a permanent program of individual development 
                accounts should be established.
                    (G) Such other factors as may be prescribed by the 
                Secretary.
            (3) Methodological requirements.--In evaluating any 
        demonstration project conducted under this section, the 
        research organization shall--
                    (A) to the extent possible, use control groups to 
                compare participants with nonparticipants;
                    (B) before, during, and after the project, obtain 
                such quantitative data as are necessary to evaluate the 
                project thoroughly; and
                    (C) develop a qualitative assessment, derived from 
                sources such as in-depth interviews, of how asset 
                accumulation affects individuals and families.
            (4) Reports by the secretary.--
                    (A) Interim reports.--Not less than once during the 
                12-month period beginning on the date of the enactment 
                of this Act, and during each 12-month period thereafter 
                until all demonstration projects conducted under this 
                section are completed, the Secretary shall submit to 
                the Congress an interim report setting forth the 
                results of the evaluations conducted pursuant to this 
                subsection.
                    (B) Final reports.--Not later than 12 months after 
                the conclusion of all demonstration projects conducted 
                under this section, the Secretary shall submit to the 
                Congress a final report setting forth the results and 
                findings of evaluations conducted pursuant to this 
                subsection.
            (5) Evaluation expenses.--The Secretary shall expend such 
        sums as may be necessary to carry out the purposes of this 
        subsection.
    (l) Definitions.--As used in this section:
            (1) Applicable period.--The term ``applicable period'' 
        means, with respect to amounts to be paid from a grant made for 
        a project year, the calendar year immediately preceding the 
        calendar year in which the grant is made.
            (2) Household.--The term ``household'' means all 
        individuals who share use of a dwelling unit as primary 
        quarters for living and eating separate from other individuals.
            (3) Individual development account.--The term ``individual 
        development account'' has the same meaning given such term in 
        section 529 of the Internal Revenue Code of 1986, as added by 
        section 223 of this Act.
            (4) Penalty amount.--The term ``penalty amount'' means any 
        of the following:
                    (A) Financial assistance forfeited.--Any amount 
                paid into the general fund of the Treasury of the 
                United States under section 529(e) of the Internal 
                Revenue Code of 1986 (as so added).
                    (B) 10 percent addition to tax.--Any additional tax 
                imposed by section 529(f) of the Internal Revenue Code 
                of 1986 (as so added).
                    (C) Other excise or penalty taxes.--Any tax imposed 
                with respect to an individual development account by 
                section 4973, 4975, or 6693 of the Internal Revenue 
                Code of 1986.
            (5) Project year.--The term ``project year'' means, with 
        respect to a demonstration project, any of the 4 consecutive 
        12-month periods beginning on the date the project is 
        originally authorized to be conducted.
            (6) Qualified savings of the individual for the period.--
        The term ``qualified savings of the individual for the period'' 
        means the aggregate of the amounts contributed by the 
        individual to the individual development account of the 
        individual during the period.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
    (m) Authorization of Appropriations.--To carry out this section, 
the following amounts are authorized to be appropriated:
            (1) $20,000,000 for fiscal year 1996.
            (2) $30,000,000 for fiscal year 1997.
            (3) $30,000,000 for fiscal year 1998.
            (4) $20,000,000 for fiscal year 1999.

SEC. 223. INDIVIDUAL DEVELOPMENT ACCOUNTS.

    (a) In General.--Subchapter F of chapter 1 of the Internal Revenue 
Code of 1986 (relating to exempt organizations) is amended by adding at 
the end the following new part:

              ``PART VIII--INDIVIDUAL DEVELOPMENT ACCOUNTS

``Sec. 529. Individual development accounts.

``SEC. 529. INDIVIDUAL DEVELOPMENT ACCOUNTS.

    ``(a) Establishment of Accounts.--
            ``(1) In general.--An individual development account may be 
        established by or on behalf of an eligible individual for the 
        purpose of accumulating funds to pay the qualified expenses of 
        such individual.
            ``(2) Eligible individual.--
                    ``(A) In general.--The term `eligible individual' 
                means an individual for whom assistance is (or at any 
                prior time was) provided by a qualified entity grantee 
                under section 222(g) of the Project for American 
                Renewal Act.
                    ``(B) Qualified entity.--The term `qualified 
                entity' has the meaning given such term by section 
                3(b)(1)(B) of such Act.
    ``(b) Limitations.--
            ``(1) Account to benefit 1 individual.--An individual 
        development account may not be established for the benefit of 
        more than 1 individual.
            ``(2) Multiple accounts.--If, at any time during a calendar 
        year, 2 or more individual development accounts are maintained 
        for the benefit of an eligible individual, such individual 
        shall be treated as an eligible individual for the calendar 
        year only with respect to the 1st of such accounts.
            ``(3) Annual limit.--Contributions to an individual 
        development account for any taxable year shall not exceed 
        $2,000. No contribution to the account under section 222(g) of 
        the Project for American Renewal Act shall be taken into 
        account for purposes of this paragraph.
            ``(4) Contributions to be from earned income.--An eligible 
        individual may only contribute to an account such amounts as 
        are derived from earned income, as defined in section 
        911(d)(2).
    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Qualified expenses.--The term `qualified expenses' 
        means 1 or more of the following, as provided by the qualified 
        entity providing assistance to the individual under section 
        222(g) of the Project for American Renewal Act:
                    ``(A) Postsecondary educational expenses.--
                Postsecondary educational expenses paid from an 
                individual development account directly to an eligible 
                educational institution. For purposes of this 
                subparagraph--
                            ``(i) In general.--The term `post-secondary 
                        educational expenses' means--
                                    ``(I) tuition and fees required for 
                                the enrollment or attendance of a 
                                student at an eligible educational 
                                institution, and
                                    ``(II) fees, books, supplies, and 
                                equipment required for courses of 
                                instruction at an eligible educational 
                                institution.
                            ``(ii) Eligible educational institution.--
                        The term `eligible educational institution' 
                        means the following:
                                    ``(I) Institution of higher 
                                education.--An institution described in 
                                section 481(a)(1) or 1201(a) of the 
                                Higher Education Act of 1965 (20 U.S.C. 
                                1088(a)(1) or 1141(a)), as such 
                                sections are in effect on the date of 
                                the enactment of this section.
                                    ``(II) Postsecondary vocational 
                                education school.--An area vocational 
                                education school (as defined in 
                                subparagraph (C) or (D) of section 
                                521(4) of the Carl D. Perkins 
                                Vocational and Applied Technology 
                                Education Act (20 U.S.C. 2471(4))) 
                                which is in any State (as defined in 
                                section 521(33) of such Act), as such 
                                sections are in effect on the date of 
                                the enactment of this section.
                    ``(B) First-home purchase.--Qualified acquisition 
                costs with respect to a qualified principal residence 
                for a qualified first-time homebuyer, if paid from an 
                individual development account directly to the persons 
                to whom the amounts are due. For purposes of this 
                subparagraph--
                            ``(i) Qualified acquisition costs.--The 
                        term `qualified acquisition costs' means the 
                        costs of acquiring, constructing, or 
                        reconstructing a residence. The term includes 
                        any usual or reasonable settlement, financing, 
                        or other closing costs.
                            ``(ii) Qualified principal residence.--The 
                        term `qualified principal residence' means a 
                        principal residence (within the meaning of 
                        section 1034), the qualified acquisition costs 
                        of which do not exceed 100 percent of the 
                        average area purchase price applicable to such 
                        residence (determined in accordance with 
                        paragraphs (2) and (3) of section 143(e)).
                            ``(iii) Qualified first-time homebuyer.--
                                    ``(I) In general.--The term 
                                `qualified first-time homebuyer' means 
                                a taxpayer (and, if married, the 
                                taxpayer's spouse) who has no present 
                                ownership interest in a principal 
                                residence during the 3-year period 
                                ending on the date of acquisition of 
                                the principal residence to which this 
                                subparagraph applies.
                                    ``(II) Date of acquisition.--The 
                                term `date of acquisition' means the 
                                date on which a binding contract to 
                                acquire, construct, or reconstruct the 
                                principal residence to which this 
                                subparagraph applies is entered into.
                    ``(C) Business capitalization.--Amounts paid from 
                an individual development account directly to a 
                business capitalization account which is established in 
                a federally insured financial institution and is 
                restricted to use solely for qualified business 
                capitalization expenses. For purposes of this 
                subparagraph--
                            ``(i) Qualified business capitalization 
                        expenses.--The term `qualified business 
                        capitalization expenses' means qualified 
                        expenditures for the capitalization of a 
                        qualified business pursuant to a qualified 
                        plan.
                            ``(ii) Qualified expenditures.--The term 
                        `qualified expenditures' means expenditures 
                        included in a qualified plan, including 
                        capital, plant, equipment, working capital, and 
                        inventory expenses.
                            ``(iii) Qualified business.--The term 
                        `qualified business' means any business that 
                        does not contravene any law or public policy 
                        (as determined by the Secretary).
                            ``(iv) Qualified plan.--The term `qualified 
                        plan' means a business plan which--
                                    ``(I) is approved by a financial 
                                institution, or by a nonprofit loan 
                                fund having demonstrated fiduciary 
                                integrity,
                                    ``(II) includes a description of 
                                services or goods to be sold, a 
                                marketing plan, and projected financial 
                                statements, and
                                    ``(III) may require the eligible 
                                individual to obtain the assistance of 
                                an experienced entrepreneurial advisor.
                    ``(D) Transfers to idas of family members.--Amounts 
                paid from an individual development account directly 
                into another such account established for the benefit 
                of an eligible individual who is--
                            ``(i) the taxpayer's spouse, or
                            ``(ii) any dependent of the taxpayer with 
                        respect to whom the taxpayer is allowed a 
                        deduction under section 151.
            ``(2) Individual development account.--The term `individual 
        development account' means a trust created or organized in the 
        United States exclusively for the purpose of paying the 
        qualified expenses of an eligible individual, but only if the 
        written governing instrument creating the trust meets the 
        following requirements:
                    ``(A) No contribution will be accepted unless it is 
                in cash or by check.
                    ``(B) The trustee is a federally insured financial 
                institution.
                    ``(C) The assets of the account will be invested in 
                accordance with the direction of the eligible 
                individual after consultation with the qualified entity 
                providing assistance to the individual under section 
                222(g) of the Project for American Renewal Act.
                    ``(D) The assets of the trust will not be 
                commingled with other property except in a common trust 
                fund or common investment fund.
                    ``(E) Except as provided in subparagraph (F), any 
                amount in the account which is attributable to 
                assistance provided under section 222(g) of the Project 
                for American Renewal Act may be paid or distributed out 
                of the account only for the purpose of paying the 
                qualified expenses of the eligible individual.
                    ``(F) Any balance in the account on the day after 
                the date on which the individual for whose benefit the 
                trust is established dies shall be distributed within 
                30 days of such date as directed by such individual to 
                another individual development account established for 
                the benefit of an eligible individual.
            ``(3) Time when contributions deemed made.--A taxpayer 
        shall be deemed to have made a contribution on the last day of 
        the preceding taxable year if the contribution is made on 
        account of such taxable year and is made not later than the 
        time prescribed by law for filing the return for such taxable 
        year (including extensions thereof).
    ``(d) Tax Treatment of Distributions.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, any amount paid or distributed out of an individual 
        development account attributable to assistance provided under 
        section 222(g) of the Project for American Renewal Act 
        (including earnings attributable to such assistance) shall be 
        included in gross income of the payee or distributee for the 
        taxable year in the manner provided in section 72.
            ``(2) Distribution used to pay qualified expenses.--A 
        payment or distribution out of an individual development 
        account attributable to assistance provided under section 
        222(g) of the Project for American Renewal Act shall not be 
        included in gross income to the extent such payment or 
        distribution is used exclusively to pay the qualified expenses 
        incurred by the eligible individual for whose benefit the 
        account is established.
            ``(3) Ordering rules.--Any distribution from an individual 
        development account shall not be treated as made from the 
        accumulated contributions made to the account by the eligible 
        individual (including earnings attributable to such 
        contributions) until all other amounts to the credit of the 
        eligible individual have been distributed.
    ``(e) Tax Treatment of Accounts.--
            ``(1) Exemption from tax.--
                    ``(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 individual development 
                account by reason of paragraph (2). Notwithstanding the 
                preceding sentence, any such account is subject to the 
                taxes imposed by section 511 (relating to imposition of 
                tax on unrelated business income of charitable, 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 established 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 accordance with 
                subpart E of part I of subchapter J of this chapter 
                (relating to grantors and others treated as substantial 
                owners).
            ``(2) Loss of exemption of account where individual engages 
        in prohibited transaction.--
                    ``(A) In general.--If an eligible individual or 
                qualified entity engages in any transaction 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 individual during which such transaction 
                occurs.
                    ``(B) Account treated as distributing all its 
                assets.--In any case in which any account 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 assistance 
                        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 security.--If, during 
        any taxable year, an eligible individual or qualified entity 
        uses such individual's account or any portion thereof as 
        security for a loan--
                    ``(A) an amount equal to the part of the portion so 
                used which is attributable to assistance 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 eligible 
                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 administrative process--
                    ``(A) an amount equal to the part of the portion so 
                seized which is attributable to assistance 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 eligible 
                individual.
    ``(f) Additional Tax on Certain Amounts Included in Gross Income.--
            ``(1) Distribution not used for qualified expenses.--In the 
        case of any payment or distribution 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 payment 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 individual 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 
consistent with the requirements of this section, and if the custodial 
account would, except for the fact that it is not a trust, constitute 
an individual development account described 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 development 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 regulations, to--
                    ``(A) the eligible individual for whose benefit the 
                account is maintained,
                    ``(B) the qualified entity providing assistance to 
                the individual under section 222(g) of the Project for 
                American Renewal Act, and
                    ``(C) the Secretary.''
    (b) Deduction Allowed Against Gross Income.--Subsection (a) of 
section 62 (defining adjusted gross income) is amended by inserting 
after paragraph (15) the following new paragraph:
            ``(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 subsection:
    ``(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 development accounts.--An 
        eligible individual for whose benefit an individual development 
        account is established and any contributor to such account 
        shall be exempt from the tax imposed by this section with 
        respect to any transaction concerning such account (which would 
        otherwise be taxable under this section) if, with respect to 
        such transaction, the account ceases to be an individual 
        development account 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 subsection (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 retirement accounts or annuities) is amended--
            (1) by inserting ``or on individual development 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 section 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 amended by adding at the end the following 
new paragraph:
            ``(6) A distribution from an individual development 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 following 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.

SEC. 224. FUNDS IN INDIVIDUAL DEVELOPMENT ACCOUNTS OF DEMONSTRATION 
              PROJECT PARTICIPANTS DISREGARDED FOR PURPOSES OF ALL 
              MEANS-TESTED FEDERAL PROGRAMS.

    Notwithstanding any Federal law (other than the Internal 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 
development 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 corporation.--The term 
        ``community development corporation'' means a nonprofit 
        organization whose primary purpose is to promote community 
        development by providing housing opportunities to low-income 
        families.
            (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 government 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 government 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-income 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 Community Development Amendments of 1978.
            (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 uncomfortably cold for 
                a period of more than 6 consecutive hours due to a 
                malfunction of the heating 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 experienced 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 elevator; or
                    (E) has severe maintenance problems, including 
                water leaks involving the roof, windows, doors, 
basement, or pipes or plumbing fixtures, holes or open cracks in walls 
or ceilings, severe paint peeling or broken plaster, and signs of 
rodent 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 ``substandard'' 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 housing project'' means a multifamily 
        housing project that the unit of general local government 
        certifies in writing is not inhabited.
    (b) Disposition of Unoccupied and Substandard Public Housing.--
            (1) Transfer of ownership to units of general local 
        government.--Notwithstanding section 203 of the Housing and 
        Community Development Amendments of 1978 or any other provision 
        of Federal law pertaining to the disposition of property, 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 appropriate 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 ownership 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 property 
                        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 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 subparagraph (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 corporations.--An 
        agreement is described in this paragraph if it is an agreement 
        that requires a unit of general local government to dispose of 
        the multifamily housing project or other residential property 
        in accordance with the following requirements:
                    (A) Notification to community development 
                corporations.--Not later than 30 days after the date on 
                which the unit of general local government acquires 
                title to the multifamily housing project or other 
                residential property under paragraph (1), the unit of 
                general local 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 
                        notification is made, such community 
                        development corporations shall have the 
                        exclusive right under this subsection to make 
                        bona fide offers to purchase the project or 
                        residence 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 government 
                        may not sell or offer to sell the multifamily 
                        housing project or other residential property 
                        other than to a party notified under 
                        subparagraph (A), unless each community 
                        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 government 
                        shall accept a bona fide offer to purchase 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 Requirements.--No provision 
of the Multifamily Housing Property Disposition Reform Act of 1994, or 
any amendment 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.
    (e) Procedures.--Not later than 6 months after the date of 
enactment of this Act, the Secretary shall establish, 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 statistics are 
        available, 816,000 unmarried teenagers became pregnant, and of 
        such pregnancies, 44 percent 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 pregnancy 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 mothers giving birth in 
        their twenties; and
            (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 ELIGIBLE PREGNANT WOMEN.

    (a) Establishment of Maternal Health Certificates 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 
establish 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 eligible to receive a 
        maternal health certificate under the program established under 
        subsection (a) if the woman--
                    (A) has an annual individual income (determined 
                without taking into account the income of any parent or 
                guardian of the individual) not greater than 175 
                percent of the income official poverty line (as defined 
                by the Office of Management and Budget, and revised 
                annually in accordance with section 673(2) of the 
                Omnibus Budget Reconciliation Act of 1981) applicable 
                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 included.--In 
        determining the income of an individual 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 required.--An 
        individual otherwise eligible to receive a maternal health 
        certificate under the program established under subsection (a) 
        shall not be found ineligible 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 Incurred.--A certificate 
received under the program established under subsection (a) may be used 
to cover an amount of expenses incurred by an individual at a maternity 
home that does not exceed an amount equal to--
            (1) $100; multiplied by
            (2) the number of days during which such services 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 otherwise 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 provides such pregnant women with 
        appropriate supportive services, which--
                    (A) shall include the following services--
                            (i) instruction and counseling regarding 
                        future health care for the woman and her child;
                            (ii) nutrition counseling;
                            (iii) counseling and education concerning 
                        all aspects of prenatal care, childbirth, and 
                        motherhood;
                            (iv) general family counseling, including 
                        child and family development counseling;
                            (v) adoption counseling;
                            (vi) employability training, job 
                        assistance, and counseling; and
                            (vii) medical care or referral for medical 
                        care for the woman and her child, including--
                                    (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;
                            (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 consistent 
                        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 certificates 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 demonstrations--
            (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
            (2) to promote innovative, comprehensive, and integrated 
        approaches to the delivery of such services.

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 reimburse the 
        State for amounts expended under an eligible grant program for 
        maternity care services furnished to eligible beneficiaries.
            (2) Limitations.--No grant made under paragraph (1)--
                    (A) shall exceed an amount equal to 50 percent of 
                the total amount expended by the State under the 
                demonstration program for maternity care services 
                furnished to eligible beneficiaries; or
                    (B) shall be used for the performance, counseling, 
                or referral for abortion.
            (3) Definitions.--As used in this subsection:
                    (A) Demonstration program.--The term 
                ``demonstration program'' means any program conducted 
                by a nonprofit private organization or agency that (as 
                determined by the Secretary) is capable of furnishing 
                in a single setting maternity care services which--
                            (i) shall include the following services--
                                    (I) instruction and counseling 
                                regarding future health care for the 
                                woman and her child;
                                    (II) nutrition counseling;
                                    (III) counseling and education 
                                concerning all aspects of prenatal 
                                care, childbirth, and motherhood;
                                    (IV) general family counseling, 
                                including child and family development 
                                counseling;
                                    (V) adoption counseling;
                                    (VI) employability training, job 
                                assistance, and counseling; and
                                    (VII) medical care or referral for 
                                medical care for the woman and her 
                                child, including--
                                            (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 
                                        sexually transmitted diseases; 
                                        and
                            (ii) may include the following services--
                                    (I) housing;
                                    (II) board and nutrition services;
                                    (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 
                                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;
                            (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 designated 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 purpose of administering or starting up the grant 
        program under this section.
    (d) Regulations.--The Secretary shall adopt such regulations as are 
necessary to carry out this section.

  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 maternity 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 
assurances that grant amounts will be used to provide a maternity 
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.
    (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 Activities.--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 structures for use as a maternity housing and services 
facility, which may include planning and development costs, 
professional fees, and administrative costs related to such acquisition 
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 require 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 
        housing during the 1-year period beginning on the date such 
        housing is placed in service. If the Secretary determines that 
        such recipient is operating maternity housing under such grant 
        for periods in excess 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 period.
            (2) Exception.--A recipient of a grant under this subpart 
        shall not be required to comply with the terms and conditions 
        prescribed under this subsection 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 generated from such sale or disposition are used to 
        provide maternity housing that meets the requirements of this 
        subpart.

SEC. 244. REPORTS.

    The Secretary shall require each eligible nonprofit entity 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:
            (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 facility.--The term 
        ``maternity housing and services facility'' means a facility 
        licensed or otherwise approved 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 provides such 
        pregnant women with appropriate supportive services, which--
                    (A) shall include the following services--
                            (i) instruction and counseling regarding 
                        future health care for the woman and her child;
                            (ii) nutrition counseling;
                            (iii) counseling and education concerning 
                        all aspects of prenatal care, childbirth, and 
                        motherhood;
                            (iv) general family counseling, including 
                        child and family development counseling;
                            (v) adoption counseling;
                            (vi) employability training, job 
                        assistance, and counseling; and
                            (vii) medical care or referral for medical 
                        care for the woman and her child, including--
                                    (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;
                            (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 consistent 
                        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 fiscal 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 Secretary determines is necessary to 
conduct such evaluation.
    (b) Report.--Each Secretary referred to in subsection (a) shall for 
each year of the grant program under this part submit to the Congress a 
summary of each evaluation conducted under subsection (a) and of the 
information submitted to each such Secretary by recipients of grants 
under this part.
    (c) Funding.--Of the amounts appropriated pursuant to this part--
            (1) the Secretary of Health and Human Services 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 Development 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 subsections (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 abortions or 
        provide abortion counseling or referral;
            (2) do not subcontract with or make any payments to any 
        person who provides for the performance 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 occupancy in 
                        a given fiscal year, give preference to any 
                        family that includes 2 individuals who are 
                        legally married to each other;''.

SEC. 302. EFFECTIVE DATE.

    This subtitle and the amendments made by this subtitle 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 section or other provision of the Social 
Security Act.

SEC. 312. INTEGRATION OF FAMILY PLANNING AND MATERNAL AND CHILD HEALTH 
              SERVICES.

    (a) Increase in Funding.--Section 501(a) (42 U.S.C. 701(a)) is 
amended in the matter preceding paragraph (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;
            (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-centered, 
                community-based services and information 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 
                individuals;''.
    (b) Minimum Amount for Abstinence Services.--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 (including 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 Services.--Section 505(a)(1) 
(42 U.S.C. 705(a)(1)) is amended--
            (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 subparagraph:
                    ``(D) services and information regarding the delay 
                or discontinuation of premarital sexual 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
            ``(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 counseling or 
        referral;
            ``(B) do not subcontract with or make any payment to any 
        person who provides abortions or abortion counseling or 
        referral (except that any such program or project may provide 
        referral for abortion counseling to a pregnant adolescent if 
        such adolescent 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 appropriate action if programs or 
projects do not comply with such paragraph, including withholding of 
funds.
    ``(g) A State shall ensure, to the maximum extent possible, family 
participation in the receipt of services provided 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 involving 
        child abuse or statutory rape.
    ``(h) The acceptance by any individual of family planning services 
or family planning or population growth information (including 
educational materials) provided through financial assistance under this 
title shall be voluntary and shall not be a prerequisite to eligibility 
for or receipt of any other service or assistance from, or to 
participation 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 amended--
            (1) by striking ``and'' at the end of subparagraph (E);
            (2) by redesignating subparagraph (F) as subparagraph (H); 
        and
            (3) by inserting after subparagraph (E) the following 
        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 relating 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 permission of 
                        such parents or guardians with 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 permission 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 
                        involving 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 certifies to the 
                        recipient that notification of the parent or 
                        guardian of such minor would result in physical 
                        injury to such minor.''.

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 subparagraph (E) the following new 
subparagraph:
            ``(F) Information (as prescribed by the Secretary) 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 subparagraph:
            ``(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 services 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 effectiveness of such activities 
        in reducing sexual activity, pregnancies, and births among 
        unmarried individuals, particularly adolescents; and
            ``(2) not less than 2 percent and not more than 4 percent 
        of such amounts for an annual longitudinal study by an 
        independent research organization of the activities carried out 
        under this title and the effectiveness of such activities in 
        reducing sexual activity, pregnancies, and births among 
        unmarried individuals, 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 Voluntary Family Planning 
Programs.--Title X of the Public Health Service Act (42 U.S.C. 300 et 
seq.) is repealed.
    (b) Repeal of Adolescent Family Life Demonstration 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 subtitle 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 into a partnership, 
        with a community-based organization 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 educational 
        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 
        responsible citizen; and
            (5) the term ``Secretary'' means the Secretary of 
        Education.

SEC. 323. MENTORING PROGRAMS.

    (a) Grant Authority.--The Secretary is authorized 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
                    (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 responsibility 
                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.
    (c) Priority.--The Secretary shall give priority to awarding a 
grant under this section to an application submitted 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 program after the 
        termination of the Federal funds provided under this section.
    (d) Other Considerations.--In awarding grants under this section, 
the Secretary shall give consideration to--
            (1) providing an equitable geographic distribution of such 
        grants, including awarding such grants for mentoring programs 
        in both rural and urban areas;
            (2) the quality of the mentoring program described in the 
        application submitted under section 327, including--
                    (A) the resources, if any, that will be dedicated 
                to providing participating at-risk youth with 
                opportunities for job training or postsecondary 
                education; and
                    (B) the degree to which parents, teachers, 
                community-based organizations, and the local community 
                participate in the design and implementation of the 
                mentoring program; and
            (3) the capability of the eligible local educational agency 
        to effectively implement the mentoring program.

SEC. 324. IMPLEMENTATION AND EVALUATION GRANTS.

    The Secretary is authorized to award grants to national 
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 efficiency of such models;
                    (B) allows for innovative programs designed under 
                the oversight of a national organization 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 demonstration 
                project to allow for the determination 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 recruitment 
        activities for school-linked mentoring programs.

SEC. 325. AUTHORIZED ACTIVITIES.

    (a) Permitted Uses.--Grant funds awarded under this subtitle (other 
than grant funds awarded under section 324) shall be used for--
            (1) hiring of mentoring coordinators and support staff;
            (2) recruitment, screening and training of adult mentors;
            (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 determines 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 ordinary 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 consultation 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 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 Secretary at such time, in such 
manner, and accompanied by such information as the Secretary may 
reasonably require.
    (b) Mentoring Programs.--Each application submitted 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 assigned to more 
        than one at-risk youth, so as to ensure a one-to-one mentoring 
        relationship;
            (4) an assurance that a mentoring program operated in a 
        secondary school will provide at-risk youth with a variety of 
        experiences and support, including--
                    (A) an opportunity to spend time in a work 
                environment and, when possible, participate in the work 
                environment;
                    (B) an opportunity to witness the job skills that 
                will be required for the at-risk youth to obtain 
                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 activities 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 relationship 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
            (9) the training that will be provided to mentors.

SEC. 328. EVALUATION.

    (a) Evaluation.--The Comptroller General of the United States shall 
enter into a contract, with an evaluating organization that has 
demonstrated experience in conducting evaluations, for the conduct of 
an ongoing rigorous evaluation of the programs and activities assisted 
under this subtitle.
    (b) Evaluation Criteria.--The Comptroller General of the United 
States, in consultation with the Secretary, shall establish minimum 
criteria for evaluating the programs and activities assisted under this 
subtitle. Such criteria shall provide for a description of the 
implementation of each program or activity assisted under this subtitle 
and such program or activity's effect on all participants, 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 
accompanied by such information, as such evaluating organization 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 
performance of at-risk youth, and reducing juvenile delinquency 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 adding at the end the 
        following new paragraph:
            ``(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 reconciliation 
        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 section 
                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.--
            ``(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 requirements.--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 
        couple shall be required to--
                    ``(A) undergo a minimum 60-day waiting period 
                beginning on the date dissolution documents 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 couple, 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:
    ``(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 approved 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 subsection (c)(2)(B) bears to the 
        average annual number 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 described.--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:
            ``(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 inserting ``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 CORPORATION 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 inserting 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 recipient 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 client.''.

                       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 significant gains 
        with respect to educational achievement 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 assuring that 
        all children receive a high quality education;
            (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 Nation's educational system;
            (4) successful educational alternatives should be widely 
        implemented to better the education of low-income individuals;
            (5) preliminary research shows that same gender schools 
        produce promising academic and behavioral 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 educational 
        alternative to coeducational elementary and secondary schools 
        and are not prohibited under the regulations under title IX of 
        the Education Amendments 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 facilities are 
                available to students of each sex; and
                    (B) the same policies and criteria for admission 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:
    ``(d) Nothing in this section shall be construed to prohibit the 
establishment or operation of a same gender public 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 admission 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 establish a Role 
Models Academy that--
            (1) serves as a model, residential, military style magnet 
        school for at-risk youth from around the Nation who cease to 
        attend secondary school before graduation from secondary 
        school; and
            (2) will foster a student's growth and development by 
        providing a residential, controlled environment conducive for 
        developing leadership skills, self-discipline, citizenship, and 
        academic and vocational excellence in a structured living and 
        learning environment.
    (c) Definitions.--For the purpose of this subtitle--
            (1) the term ``Academy'' means the academy established 
        under section 353;
            (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 Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 8801);
            (4) the term ``secondary school'' has the meaning given 
        that term in section 14101 of the Elementary 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, integrated, high 
        quality, cost-effective, residential, education and vocational 
        training academy for the Nation'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 partnership 
        investment model among the Federal Government, 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 between 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 instruction 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 and participants in the 
program assisted under section 1151 of title 10, United States Code 
(Troops to Teachers Program).
            (7) To make the Academy available, upon demonstration 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 program 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 participants 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--
                    (A) utilizes mentors from all sectors of society to 
                serve as role models for Academy students;
                    (B) provides, to the greatest extent possible, one-
                to-one mentoring relationships between 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 installation 
        closed pursuant to a base closure law; and
            (7) if the Secretary determines that the Academy 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.

                        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 ``Secretary'') shall award grants 
to States for demonstration projects to assist such States in 
developing or implementing 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 Federal 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 appropriate, with respect to 
        children in a kinship care arrangement;
            (2) agree to give preference to adult relatives who meet 
        applicable adoption standards in making adoption placements;
            (3) establish such procedures as may be necessary to ensure 
        the safety of children who are placed with adult relatives; and
            (4) establish such procedures as may be necessary 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 RELATIVES.

    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.

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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