[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2518 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2518

                        To enhance family life.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 24, 1998

 Mr. Moynihan introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
                        To enhance family life.

    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 ``Enhancing Family 
Life Act of 1998''.
    (b) Table of Contents.--The table of Contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
                    TITLE I--ASSISTANCE FOR CHILDREN

Sec. 101. Second chance homes.
Sec. 102. Adoption promotion.
Sec. 103. Early childhood development.
                        TITLE II--PARENT GRANTS

Sec. 201. Parent grants.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The family is the foundation of public life.
            (2) The proportion of illegitimate births to teenagers has 
        increased astronomically from 13 percent of such births in 1950 
        to 76 percent of such births in 1996.
            (3) Children in one-parent families are more at risk for 
        many types of anti-social behavior.
            (4) The future of children is crucially determined during 
        the first few years of life.

                    TITLE I--ASSISTANCE FOR CHILDREN

SEC. 101. SECOND CHANCE HOMES.

    (a) In General.--Title XX of the Social Security Act (42 U.S.C. 
1397-1397f) is amended by adding at the end the following:

``SEC. 2008. SECOND CHANCE HOMES.

    ``(a) Entitlement.--
            ``(1) In general.--In addition to any payment under 
        sections 2002 and 2007, beginning with fiscal year 1999, each 
        State shall be entitled to funds under this section for each 
        fiscal year for the establishment, operation, and support of 
        second chance homes for custodial parents under the age of 19 
        and their children.
            ``(2) Payment to states.--
                    ``(A) In general.--Each State shall be entitled to 
                payment under this section for each fiscal year in an 
                amount equal to its allotment (determined in accordance 
                with subsection (b)) for such fiscal year, to be used 
                by such State for the purposes set forth in paragraph 
                (1).
                    ``(B) Transfers of funds.--The Secretary shall make 
                payments in accordance with section 6503 of title 31, 
                United States Code, to each State from its allotment 
                for use under this section.
                    ``(C) Use.--Payments to a State from its allotment 
                for any fiscal year must be expended by the State in 
                such fiscal year or in the succeeding fiscal year.
                    ``(D) Technical assistance.--A State may use a 
                portion of the amounts described in subparagraph (A) 
                for the purpose of purchasing technical assistance from 
                public or private entities if the State determines that 
                such assistance is required in developing, 
                implementing, or administering the program funded under 
                this section.
            ``(3) Second chance homes.--For purposes of this section, 
        the term `second chance homes' means an entity that provides 
        custodial parents under the age of 19 and their children with a 
        supportive and supervised living arrangement in which such 
        parents would be required to learn parenting skills, including 
        child development, family budgeting, health and nutrition, and 
        other skills to promote their long-term economic independence 
        and the well-being of their children. A second chance home may 
        also serve as a network center for other supportive services 
        that might be available in the community.
    ``(b) Allotment.--
            ``(1) Certain jurisdictions.--The allotment for any fiscal 
        year to Puerto Rico, Guam, the United States Virgin Islands, 
        American Samoa, and the Northern Mariana Islands shall be an 
        amount that bears the same ratio to the amount specified under 
        paragraph (3) as the allotment that the jurisdiction receives 
        under section 2003(a) for the fiscal year bears to the total 
        amount specified for such fiscal year under section 2003(c).
            ``(2) Other states.--The allotment for any fiscal year for 
        each State other than Puerto Rico, Guam, the United States 
        Virgin Islands, American Samoa, and the Northern Mariana 
        Islands shall be an amount which bears the same ratio to--
                    ``(A) the amount specified under paragraph (3); 
                reduced by
                    ``(B) the total amount allotted for that fiscal 
                year under paragraph (1),
        as the allotment that the State receives under section 2003(b) 
        for the fiscal year bears to the total amount specified for 
        such fiscal year under section 2003(c).
            ``(3) Amount specified.--The amount specified for purposes 
        of paragraphs (1) and (2) shall be $40,000,000 for fiscal year 
        1999 and each succeeding fiscal year thereafter.
    ``(c) Local Involvement.--Each State shall seek local involvement 
from the community in any area in which a second chance home receiving 
funds pursuant to this section is to be established. In determining 
criteria for targeting funds received under this section, each State 
shall evaluate the community's commitment to the establishment and 
planning of the home.
    ``(d) Limitations on the Use of Funds.--
            ``(1) Construction.--Except as provided in paragraph (2), 
        funds made available under this section may not be used by the 
        State, or any other person with which the State makes 
        arrangements to carry out the purposes of this section, for the 
        purchase or improvement of land, or the purchase, construction, 
        or permanent improvement (other than minor remodeling) of any 
        building or other facility.
            ``(2) Waiver.--The Secretary may waive the limitation 
        contained in paragraph (1) upon the State's request for such a 
        waiver if the Secretary finds that the request describes 
        extraordinary circumstances to justify the waiver and that 
        permitting the waiver will contribute to the State's ability to 
        carry out the purposes of this section.
    ``(e) Treatment of Indian Tribes.--
            ``(1) In general.--An Indian tribe may apply to the 
        Secretary to establish, operate, and support adult-supervised 
        group homes for custodial parents under the age of 19 and their 
        children in accordance with an application procedure to be 
        determined by the Secretary. Except as otherwise provided in 
        this subsection, the provisions of this section shall apply to 
        Indian tribes receiving funds under this subsection in the same 
        manner and to the same extent as the other provisions of this 
        section apply to States.
            ``(2) Allotment.--If the Secretary approves an Indian 
        tribe's application, the Secretary shall allot to such tribe 
        for a fiscal year an amount which the Secretary determines is 
        the Indian tribe's fair and equitable share of the amount 
        specified under paragraph (3) for all Indian tribes with 
        applications approved under this subsection (based on allotment 
        factors to be determined by the Secretary). The Secretary shall 
        determine a minimum allotment amount for all Indian tribes with 
        applications approved under this subsection. Each Indian tribe 
        with an application approved under this subsection shall be 
        entitled to such minimum allotment.
            ``(3) Amount specified.--The amount specified under this 
        paragraph for all Indian tribes with applications approved 
        under this subsection is $5,000,000 for fiscal year 1999 and 
        each succeeding fiscal year thereafter.
            ``(4) Indian tribe defined.--In this section, the term 
        `Indian tribe' means any Indian tribe, band, nation, pueblo, or 
        other organized group or community, including any Alaska Native 
        entity which is recognized as eligible for the special programs 
        and services provided by the United States to Indian tribes 
        because of their status as Indians.
    ``(f) Research and Evaluation.--
            ``(1) In general.--The amount appropriated to carry out 
        this section for each fiscal year shall be increased by 2 
        percent and the Secretary shall reserve an amount equal to that 
        increase to pay for the costs of conducting, through grant, 
        contract, or interagency agreement, research and evaluation 
        projects regarding the second chance homes funded under this 
        section. In conducting such projects, the Secretary shall give 
        priority to projects that are undertaken by independent and 
        impartial organizations.
            ``(2) Report.--Not later than 4 years after the date of 
        enactment of this section, the Secretary shall submit a report 
        to Congress on the research and evaluation projects conducted 
        in accordance with this subsection.''.
    (b) Recommendations on Use of Government Surplus Property.--Not 
later than 6 months after the date of the enactment of this Act, the 
Secretary of Health and Human Services, after consultation with the 
Secretary of Defense, the Secretary of Housing and Urban Development, 
and the Administrator of the General Services Administration, shall 
submit recommendations to Congress on the extent to which surplus 
properties of the United States Government may be used for the 
establishment of second chance homes receiving funds under section 2008 
of the Social Security Act, as added by subsection (a).

SEC. 102. ADOPTION PROMOTION.

    (a) Adoption of Children With Special Needs.--
            (1) In general.--Section 473(a) of the Social Security Act 
        (42 U.S.C. 673(a)) is amended by striking paragraph (2) and 
        inserting the following:
    ``(2)(A) For purposes of paragraph (1)(B)(ii), a child meets the 
requirements of this paragraph if such child--
            ``(i) prior to termination of parental rights and the 
        initiation of adoption proceedings was in the care of a public 
        or licensed private child care agency or Indian tribal 
        organization either pursuant to a voluntary placement agreement 
        (provided the child was in care for not more than 180 days) or 
        as a result of a judicial determination to the effect that 
        continuation in the home would be contrary to the safety and 
        welfare of such child, or was residing in a foster family home 
        or child care institution with the child's minor parent (either 
        pursuant to such a voluntary placement agreement or as a result 
of such a judicial determination); and
            ``(ii) has been determined by the State pursuant to 
        subsection (c) to be a child with special needs, which needs 
        shall be considered by the State, together with the 
        circumstances of the adopting parents, in determining the 
        amount of any payments to be made to the adopting parents.
    ``(B) Notwithstanding any other provision of law, and except as 
provided in paragraph (7), a child who is not a citizen or resident of 
the United States and who meets the requirements of subparagraph (A) 
shall be treated as meeting the requirements of this paragraph for 
purposes of paragraph (1)(B)(ii).
    ``(C) A child who meets the requirements of subparagraph (A), who 
was determined eligible for adoption assistance payments under this 
part with respect to a prior adoption (or who would have been 
determined eligible for such payments had the Adoption and Safe 
Families Act of 1997 been in effect at the time that such determination 
would have been made), and who is available for adoption because the 
prior adoption has been dissolved and the parental rights of the 
adoptive parents have been terminated or because the child's adoptive 
parents have died, shall be treated as meeting the requirements of this 
paragraph for purposes of paragraph (1)(B)(ii).''.
            (2) Exception.--Section 473(a) of the Social Security Act 
        (42 U.S.C. 673(a)) is amended by adding at the end the 
        following:
    ``(7)(A) Notwithstanding any other provision of this subsection, no 
payment may be made to parents with respect to any child that--
            ``(i) would be considered a child with special needs under 
        subsection (c);
            ``(ii) is not a citizen or resident of the United States; 
        and
            ``(iii) was adopted outside of the United States or was 
        brought into the United States for the purpose of being 
        adopted.
    ``(B) Subparagraph (A) shall not be construed as prohibiting 
payments under this part for a child described in subparagraph (A) that 
is placed in foster care subsequent to the failure, as determined by 
the State, of the initial adoption of such child by the parents 
described in such subparagraph.''.
            (3) Requirement for use of state savings.--Section 473(a) 
        of the Social Security Act (42 U.S.C. 673(a)), as amended by 
        subsection (b), is amended by adding at the end the following:
    ``(8) A State shall spend an amount equal to the amount of savings 
(if any) in State expenditures under this part resulting from the 
application of paragraph (2) on and after the effective date of the 
amendment to such paragraph made by section 4(a) of the Enhancing 
Family Life Act of 1998 to provide to children or families any service 
(including post-adoption services) that may be provided under this part 
or part B.''.
    (b) Per Capita Child Welfare Demonstration Projects.--Section 
1130(a)(2) of the Social Security Act (42 U.S.C. 1320a-9(a)(2)) is 
amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
                    ``(A) In general.--The Secretary''; and
            (2) by adding at the end the following:
                    ``(B) Reservation.--Of the 10 demonstration 
                projects authorized under this subsection for each of 
                fiscal years 1999 through 2002, the Secretary, upon 
                receipt of an appropriate application, shall approve at 
                least 3 demonstration projects in each of such fiscal 
                years that are designed to test a per capita approach 
                for the successful resolution of a foster care 
                placement under which a private entity contracts for a 
                fixed amount to either restore a child in foster care 
                to the child's parent or parents or locate an adoptive 
                placement for the child.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1998.

SEC. 103. EARLY CHILDHOOD DEVELOPMENT.

    Title IV of the Social Security Act (42 U.S.C. 601 et seq.) is 
amended by adding at the end the following:

                ``PART F--ASSISTANCE FOR YOUNG CHILDREN

``SEC. 480. DEFINITIONS.

    ``In this part:
            ``(1) Local educational agency.--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).
            ``(2) Poverty line.--The term `poverty line' means the 
        poverty line (as defined by the Office of Management and 
        Budget, and revised annually in accordance with section 673(2) 
        of the Community Services Block Grant Act (42 U.S.C. 9902(2)) 
        applicable to a family of the size involved.
            ``(3) State board.--The term `State board' means a State 
        Early Learning Coordinating Board established under section 
        481(c).
            ``(4) Young child.--The term `young child' means an 
        individual from birth through age 5.
            ``(5) Young child assistance activities.--The term `young 
        child assistance activities' means the activities described in 
        paragraphs (1) and (2)(A) of section 482(b).

``SEC. 481. ALLOTMENTS TO STATES.

    ``(a) In General.--The Secretary shall make allotments under 
subsection (b) to eligible States to pay for the Federal share of the 
cost of enabling the States to make grants to local collaboratives 
under section 482 for young child assistance activities.
    ``(b) Allotment.--
            ``(1) In general.--From the funds appropriated under 
        section 484 for each fiscal year and not reserved under 
        subsection (i), the Secretary shall allot to each eligible 
        State an amount that bears the same relationship to such funds 
        as the total number of young children in poverty in the State 
        bears to the total number of young children in poverty in all 
        eligible States.
            ``(2) Young child in poverty.--In this subsection, the term 
        `young child in poverty' means an individual who--
                    ``(A) is a young child; and
                    ``(B) is a member of a family with an income below 
                the poverty line.
    ``(c) State Boards.--
            ``(1) In general.--In order for a State to be eligible to 
        obtain an allotment under this part, the chief executive 
        officer of the State shall establish, or designate an entity to 
        serve as, a State Early Learning Coordinating Board, which 
        shall receive the allotment and make the grants described in 
        section 482.
            ``(2) Established board.--A State board established under 
        paragraph (1) shall consist of the chief executive officer of 
        the State and members appointed by such chief executive 
        officer, including--
                    ``(A) representatives of all State agencies 
                primarily providing services to young children in the 
                State;
                    ``(B) representatives of business in the State;
                    ``(C) chief executive officers of political 
                subdivisions in the State;
                    ``(D) parents of young children in the State;
                    ``(E) officers of community organizations serving 
                low-income individuals, as defined by the Secretary, in 
                the State;
                    ``(F) representatives of State nonprofit 
                organizations that represent the interests of young 
                children in poverty, as defined in subsection (b), in 
                the State;
                    ``(G) representatives of organizations providing 
                services to young children and the parents of young 
                children, such as organizations providing child care, 
                carrying out Head Start programs under the Head Start 
                Act (42 U.S.C. 9831 et seq.), providing services 
                through a family resource center, providing home 
                visits, or providing health care services, in the 
                State; and
                    ``(H) representatives of local educational 
                agencies.
            ``(3) Designated board.--The chief executive officer of the 
        State may designate an entity to serve as the State board under 
        paragraph (1) if the entity includes the chief executive 
        officer of the State and the members described in subparagraphs 
        (A) through (G) of paragraph (2).
            ``(4) Designated state agency.--The chief executive officer 
        of the State shall designate a State agency that has a 
        representative on the State board to provide administrative 
        oversight concerning the use of funds made available under this 
        part and ensure accountability for the funds.
    ``(d) Application.--To be eligible to receive an allotment under 
this part, a State board shall annually submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may require. At a minimum, the application shall 
contain--
            ``(1) sufficient information about the entity established 
        or designated under subsection (c) to serve as the State board 
        to enable the Secretary to determine whether the entity 
        complies with the requirements of such subsection;
            ``(2) a comprehensive State plan for carrying out young 
        child assistance activities;
            ``(3) an assurance that the State board will provide such 
        information as the Secretary shall by regulation require on the 
        amount of State and local public funds expended in the State to 
        provide services for young children; and
            ``(4) an assurance that the State board shall annually 
        compile and submit to the Secretary information from the 
        reports referred to in section 482(d)(2)(F)(iii) that describes 
        the results referred to in section 482(d)(2)(F)(i).
    ``(e) Federal Share.--
            ``(1) In general.--The Federal share of the cost described 
        in subsection (a) shall be--
                    ``(A) 85 percent, in the case of a State for which 
                the Federal medical assistance percentage (as defined 
                in section 1905(b)) is not less than 50 percent but is 
                less than 60 percent;
                    ``(B) 87.5 percent, in the case of a State for 
                which such percentage is not less than 60 percent but 
                is less than 70 percent; and
                    ``(C) 90 percent, in the case of any State not 
                described in subparagraph (A) or (B).
            ``(2) State share.--
                    ``(A) In general.--The State shall contribute the 
                remaining share (referred to in this paragraph as the 
                `State share') of the cost described in subsection (a).
                    ``(B) Form.--The State share of the cost shall be 
                in cash.
                    ``(C) Sources.--The State may provide for the State 
                share of the cost from State or local sources, or 
                through donations from private entities.
    ``(f) State Administrative Costs.--
            ``(1) In general.--A State may use not more than 5 percent 
        of the funds made available through an allotment made under 
        this part to pay for a portion, not to exceed 50 percent, of 
        State administrative costs related to carrying out this part.
            ``(2) Waiver.--A State may apply to the Secretary for a 
        waiver of paragraph (1). The Secretary may grant the waiver if 
        the Secretary finds that unusual circumstances prevent the 
        State from complying with paragraph (1). A State that receives 
        such a waiver may use not more than 7.5 percent of the funds 
        made available through the allotment to pay for the State 
        administrative costs.
    ``(g) Monitoring.--The Secretary shall monitor the activities of 
States that receive allotments under this part to ensure compliance 
with the requirements of this part, including compliance with the State 
plans.
    ``(h) Enforcement.--If the Secretary determines that a State that 
has received an allotment under this part is not complying with a 
requirement of this part, the Secretary may--
            ``(1) provide technical assistance to the State to improve 
        the ability of the State to comply with the requirement;
            ``(2) reduce, by not less than 5 percent, an allotment made 
        to the State under this section, for the second determination 
        of noncompliance;
            ``(3) reduce, by not less than 25 percent, an allotment 
        made to the State under this section, for the third 
        determination of noncompliance; or
            ``(4) revoke the eligibility of the State to receive 
        allotments under this section, for the fourth or subsequent 
        determination of noncompliance.
    ``(i) Reservation of Funds.--
            ``(1) Technical assistance.--From the funds appropriated 
        under section 484 for each fiscal year, the Secretary shall 
        reserve not more than 1 percent of the funds to pay for the 
        costs of providing technical assistance. The Secretary shall 
        use the reserved funds to enter into contracts with eligible 
        entities to provide technical assistance to local 
        collaboratives that receive grants under section 482 relating 
        to the functions of the local collaboratives under this part.
            ``(2) Research and evaluation.--
                    ``(A) In general.--From the funds appropriated 
                under section 484 for each fiscal year, the Secretary 
                shall reserve 2 percent of the funds to pay for the 
                costs of conducting, through grant, contract, or 
                interagency agreement, research and evaluation projects 
                regarding the young child assistance activities funded 
                with amounts made available in accordance with the 
                requirements of this part. In conducting such projects, 
                the Secretary shall give priority to projects that are 
                undertaken by independent and impartial organizations.
                    ``(B) Report.--Not later than 4 years after the 
                date of enactment of this part, the Secretary shall 
                submit a report to Congress on the research and 
                evaluation projects conducted in accordance with this 
                paragraph.

``SEC. 482. GRANTS TO LOCAL COLLABORATIVES.

    ``(a) In General.--A State board that receives an allotment under 
section 481 shall use the funds made available through the allotment, 
and the State contribution made under section 481(e)(2), to pay for the 
Federal and State shares of the cost of making grants, on a competitive 
basis, to local collaboratives to carry out young child assistance 
activities.
    ``(b) Use of Funds.--A local collaborative that receives a grant 
made under subsection (a)--
            ``(1) shall use funds made available through the grant to 
        provide, in a community, activities that consist of education 
        and supportive services, such as--
                    ``(A) home visits for parents of young children;
                    ``(B) services provided through community-based 
                family resource centers for such parents; and
                    ``(C) collaborative pre-school efforts that link 
                parenting education for such parents to early childhood 
                learning services for young children; and
            ``(2) may use funds made available through the grant--
                    ``(A) to provide, in the community, activities that 
                consist of--
                            ``(i) activities designed to strengthen the 
                        quality of child care for young children and 
                        expand the supply of high quality child care 
                        services for young children;
                            ``(ii) health care services for young 
                        children, including increasing the level of 
                        immunization for young children in the 
                        community, providing preventive health care 
                        screening and education, and expanding health 
                        care services in schools, child care 
                        facilities, clinics in public housing projects 
                        (as defined in section 3(b) of the United 
                        States Housing Act of 1937 (42 U.S.C. 
                        1437a(b))), and mobile dental and vision 
                        clinics;
                            ``(iii) services for children with 
                        disabilities who are young children; and
                            ``(iv) activities designed to assist 
                        schools in providing educational and other 
                        support services to young children, and parents 
                        of young children, in the community, to be 
                        carried out during extended hours when 
                        appropriate; and
                    ``(B) to pay for the salary and expenses of the 
                administrator described in subsection (e)(4), in 
                accordance with such regulations as the Secretary shall 
                prescribe.
    ``(c) Multi-Year Funding.--In making grants under this section, a 
State board may make grants for grant periods of more than 1 year to 
local collaboratives with demonstrated success in carrying out young 
child assistance activities.
    ``(d) Local Collaboratives.--To be eligible to receive a grant 
under this section for a community, a local collaborative shall 
demonstrate that the collaborative--
            ``(1) is able to provide, through a coordinated effort, 
        young child assistance activities to young children, and 
        parents of young children, in the community; and
            ``(2) includes--
                    ``(A) all public agencies primarily providing 
                services to young children in the community;
                    ``(B) businesses in the community;
                    ``(C) representatives of the local government for 
                the county or other political subdivision in which the 
                community is located;
                    ``(D) parents of young children in the community;
                    ``(E) officers of community organizations serving 
                low-income individuals, as defined by the Secretary, in 
                the community;
                    ``(F) community-based organizations providing 
                services to young children and the parents of young 
                children, such as organizations providing child care, 
                carrying out Head Start programs, or providing pre-
                kindergarten education, mental health, or family 
                support services; and
                    ``(G) nonprofit organizations that serve the 
                community and that are described in section 501(c)(3) 
                of the Internal Revenue Code of 1986 and exempt from 
                taxation under section 501(a) of such Code.
    ``(e) Application.--To be eligible to receive a grant under this 
section, a local collaborative shall submit an application to the State 
board at such time, in such manner, and containing such information as 
the State board may require. At a minimum, the application shall 
contain--
            ``(1) sufficient information about the entity described in 
        subsection (d)(2) to enable the State board to determine 
        whether the entity complies with the requirements of such 
        subsection; and
            ``(2) a comprehensive plan for carrying out young child 
        assistance activities in the community, including information 
        indicating--
                    ``(A) the young child assistance activities 
                available in the community, as of the date of 
                submission of the plan, including information on 
                efforts to coordinate the activities;
                    ``(B) the unmet needs of young children, and 
                parents of young children, in the community for young 
                child assistance activities;
                    ``(C) the manner in which funds made available 
                through the grant will be used--
                            ``(i) to meet the needs, including 
                        expanding and strengthening the activities 
                        described in subparagraph (A) and establishing 
                        additional young child assistance activities; 
                        and
                            ``(ii) to improve results for young 
                        children in the community;
                    ``(D) how the local cooperative will use at least 
                60 percent of the funds made available through the 
                grant to provide young child assistance activities to 
                young children and parents described in subsection (f);
                    ``(E) the comprehensive methods that the 
                collaborative will use to ensure that--
                            ``(i) each entity carrying out young child 
                        assistance activities through the collaborative 
                        will coordinate the activities with such 
                        activities carried out by other entities 
                        through the collaborative; and
                            ``(ii) the local collaborative will 
                        coordinate the activities of the local 
                        collaborative with--
                                    ``(I) other services provided to 
                                young children, and the parents of 
                                young children, in the community; and
                                    ``(II) the activities of other 
                                local collaboratives serving young 
                                children and families in the community, 
                                if any; and
                    ``(F) the manner in which the collaborative will, 
                at such intervals as the State board may require, 
                submit information to the State board to enable the 
                State board to carry out monitoring under section 
                481(g), including the manner in which the collaborative 
                will--
                            ``(i) evaluate the results achieved by the 
                        collaborative for young children and parents of 
                        young children through activities carried out 
                        through the grant;
                            ``(ii) evaluate how services can be more 
                        effectively delivered to young children and the 
                        parents of young children; and
                            ``(iii) prepare and submit to the State 
                        board annual reports describing the results;
            ``(3) an assurance that the local collaborative will comply 
        with the requirements of subparagraphs (D), (E), and (F) of 
        paragraph (2), and subsection (g); and
            ``(4) an assurance that the local collaborative will hire 
        an administrator to oversee the provision of the activities 
        described in paragraphs (1) and (2)(A) of subsection (b).
    ``(f) Distribution.--In making grants under this section, the State 
board shall ensure that at least 60 percent of the funds made available 
through each grant are used to provide the young child assistance 
activities to young children (and parents of young children) who reside 
in school districts in which half or more of the students receive free 
or reduced price lunches under the National School Lunch Act (42 U.S.C. 
1751 et seq.).
    ``(g) Local Share.--
            ``(1) In general.--The local collaborative shall contribute 
        a percentage (referred to in this subsection as the `local 
        share') of the cost of carrying out the young child assistance 
        activities.
            ``(2) Percentage.--The Secretary shall by regulation 
        specify the percentage referred to in paragraph (1).
            ``(3) Form.--The local share of the cost shall be in cash.
            ``(4) Source.--The local collaborative shall provide for 
        the local share of the cost through donations from private 
        entities.
            ``(5) Waiver.--The State board shall waive the requirement 
        of paragraph (1) for poor rural and urban areas, as defined by 
        the Secretary.
    ``(h) Monitoring.--The State board shall monitor the activities of 
local collaboratives that receive grants under this part to ensure 
compliance with the requirements of this part.

``SEC. 483. SUPPLEMENT NOT SUPPLANT.

    ``Funds appropriated under this part shall be used to supplement 
and not supplant other Federal, State, and local public funds expended 
to provide services for young children.

``SEC. 484. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part--
            ``(1) $250,000,000 for fiscal year 1999;
            ``(2) $500,000,000 for fiscal year 2000;
            ``(3) $1,000,000,000 for each of fiscal years 2001 through 
        2003; and
            ``(4) such sums as may be necessary for fiscal year 2004 
        and each subsequent fiscal year.''.

                        TITLE II--PARENT GRANTS

SEC. 201. PARENT GRANTS.

    (a) Purpose.--It is the purpose of this section to provide parents 
with grants for career development and retraining after a period of 
child rearing.
    (b) Program Authority and Method of Distribution.--
            (1) In general.--From amounts appropriated under subsection 
        (f), the Secretary of Education (in this section referred to as 
        the ``Secretary'') may pay to each eligible institution such 
        sums as may be necessary to pay to each qualifying parent for 
        each academic year that the qualifying parent is in attendance 
        at an institution of higher education, a parent grant, in an 
        amount determined in accordance with subsection (c), for each 
        child for which the qualifying parent remains outside the labor 
        force.
            (2) Qualifying parent.--In this section, the term 
        ``qualifying parent'' means an individual who--
                    (A) is the custodial parent of a child under the 
                age of 6;
                    (B) has no earned income as defined in section 
                32(c)(2) of the Internal Revenue Code of 1986; and
                    (C) is not receiving assistance under a State 
                program funded under part A of title IV of the Social 
                Security Act (42 U.S.C. 601 et seq.) or supplemental 
                security income benefits under title XVI of the Social 
                Security Act (42 U.S.C. 1381 et seq.).
            (3) Distribution.--Funds under this section shall be 
        disbursed and made available to qualifying parents in the same 
        manner as Federal Pell Grants are disbursed and made available 
        to institutions of higher education and students under subpart 
        1 of part A of title IV of the Higher Education Act of 1965 (20 
        U.S.C. 1070a et seq.), except that in the case of a parent 
        grant awarded to a qualifying parent for expenses incurred in 
        obtaining a secondary school diploma or its recognized 
        equivalent, the Secretary shall make the grant funds available 
        to the qualifying parent.
    (c) Amount.--
            (1) In general.--Subject to paragraph (2), the amount of a 
        parent grant for which a qualifying parent is eligible under 
        this section for an academic year is equal to--
                    (A) in the case of a qualifying parent with an 
                annual income of $50,000 or less, the maximum amount of 
                the Federal Pell Grant awarded under subpart 1 of part 
                A of title IV of the Higher Education Act of 1965 for 
                such year; and
                    (B) in the case of a qualifying parent with an 
                annual income of more than $50,000 but not more than 
                $75,000, \1/2\ of the maximum amount of the Federal 
                Pell Grant so awarded for such year.
            (2) Special rules.--
                    (A) Calendar year awards.--A qualifying parent is 
                eligible for a parent grant under this section for each 
                complete calendar year the parent is outside the labor 
                force, except that the Secretary shall prorate the 
                amount for which the qualifying parent is eligible for 
                the first year in which a child is born if the 
                qualifying parent is outside the labor force for at 
                least 4 months of the calendar year in which the child 
                is born.
                    (B) Simultaneous awards.--A qualifying parent is 
                eligible for a parent grant simultaneously for each 
                child for which the parent remains outside the labor 
                force.
                    (C) Limitation.--The Secretary shall not award a 
                qualifying parent a parent grant for any period the 
                parent remains outside the labor force to pursue 
                education with a parent grant awarded under this 
                section.
    (d) Uses.--
            (1) In general.--A parent grant awarded under this 
        section--
                    (A) shall be used not later than 15 years after the 
                year for which the grant is awarded; and
                    (B) shall be used to pay--
                            (i) the cost of attendance (as determined 
                        in accordance with section 472 of the Higher 
                        Education Act of 1965 (20 U.S.C. 1087ll)) at an 
                        institution of higher education (as defined in 
                        section 481 of such Act (20 U.S.C. 1088)); or
                            (ii) for expenses incurred in obtaining a 
                        secondary school diploma or its recognized 
                        equivalent.
            (2) Aggregation of awards.--A qualifying parent may 
        aggregate parent grants awarded for more than 1 year or more 
        than 1 child for use in a single academic year.
            (3) Rollover.--A qualifying parent may use any grant funds 
        awarded for an academic year that are not used in the academic 
        year, for use in a subsequent academic year, subject to 
        paragraph (1)(A).
    (e) Research and Evaluation.--
            (1) In general.--From the amounts appropriated to carry out 
        this section for each fiscal year, the Secretary shall reserve 
        2 percent of such amounts to pay for the costs of conducting, 
        through grant, contract, or interagency agreement, research and 
        evaluation projects regarding the parent grants awarded in 
        accordance with the requirements of this section. In conducting 
        such projects, the Secretary shall give priority to projects 
        that are undertaken by independent and impartial organizations.
            (2) Report.--Not later than 4 years after the date of 
        enactment of this section, the Secretary shall submit a report 
        to Congress on the research and evaluation projects conducted 
        in accordance with this subsection.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 1999 and each succeeding fiscal year.
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