[Congressional Record Volume 141, Number 137 (Wednesday, September 6, 1995)]
[Senate]
[Pages S12716-S12736]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. COATS:
  S. 1201. A bill to provide for the awarding of grants for 
demonstration projects for kinship care programs, and for other 
purposes; to the Committee on Labor and Human Resources.
  S. 1202. A bill to provide for a role model academy demonstration 
program; to the Committee on Labor and Human Resources.
  S. 1203. A bill to provide for character development; to the 
Committee on Labor and Human Resources.
  S. 1204. A bill to amend the United States Housing Act of 1937 to 
increase public housing opportunities for intact families; to the 
Committee on Banking, Housing, and Urban Affairs.
  S. 1205. A bill to provide for the establishment of a mentor school 
program, and for other purposes; to the Committee on Labor and Human 
Resources.
  S. 1206. A bill to amend the Internal Revenue Code of 1986 to allow a 
refundable tax credit for adoption expenses and to exclude from gross 
income employee and military adoption assistance benefits and 
withdrawals from IRA's for certain adoption expenses, and to amend 
title 5, United States Code, to exclude from gross income employee and 
military adoption assistance benefits and withdrawals from IRAs for 
certain adoption expenses, and for other purposes; to the Committee on 
Finance.
  S. 1207. A bill to amend part B of title IV of the Social Security 
Act to provide for a set-aside of funds for States that have enacted 
certain divorce laws, to amend the Legal Services Corporation Act to 
prohibit the use of funds made available under the Act to provide legal 
assistance in certain proceedings relating to divorces and legal 
separations, and for other purposes; to the Committee on Finance.
  S. 1208. A bill to amend the Internal Revenue Code of 1986 to allow 
an additional earned income tax credit for married individuals and to 
prevent fraud and abuse involving the earned income tax credit, and for 
other purposes; to the Committee on Finance.
  S. 1209. A bill to amend title V of the Social Security Act to 
promote responsible parenthood and integrated delivery of family 
planning services by increasing funding for and block granting the 
family planning program and the adolescent family life program; to the 
Committee on Finance.
  S. 1210. A bill to provide for educational choice and equity; to the 
Committee on Labor and Human Resources.
  S. 1211. A bill to provide incentive grants to States to improve 
methods of
 ordering, collecting, and enforcing restitution to victims of crime, 
and for other purposes; to the Committee on the Judiciary.

                                 ______

      By Mr. COATS (for himself and Ms. Moseley-Braun):
  S. 1212. A bill to provide for the establishment of demonstration 
projects designed to determine the social, civic, psychological, and 
economic effects of providing to individuals and families with limited 
means an opportunity to accumulate assets, and to determine the extent 
to which an asset-based welfare policy may be used to enable 
individuals and families with low income to achieve economic self-
sufficiency; to the Committee on Finance.
                                 ______

      By Mr. COATS:
  S. 1213. A bill to provide for the disposition of unoccupied and 
substandard multifamily housing projects owned by the Secretary of 
Housing and Urban Development; to the Committee on Banking, Housing, 
and Urban Affairs.
  S. 1214. A bill to direct the Secretary of Health and Human Services 
to establish a program to provide pregnant women with certificates to 
cover expenses incurred in receiving services at maternity homes and to 
establish a demonstration program to provide maternity care services to 
certain unwed, pregnant teenagers, and for other purposes; to the 
Committee on Labor and Human Resources.
  S. 1215. A bill to evaluate the effectiveness of certain community 
efforts in coordination with local police departments in preventing and 
removing violent crime and drug trafficking from the community, in 
increasing economic development in the community, and in preventing or 
ending retaliation by perpetrators of crime against community 
residents, and for other purposes; to the Committee on the Judiciary.
  S. 1216. A bill to amend the Internal Revenue Code of 1986 to provide 
a tax credit for individuals who provide care in their home for certain 
individuals in need, and for other purposes; to the Committee on 
Finance.
  S. 1217. A bill to encourage the provision of medical services in 
medically underserved communities by extending Federal liability 
coverage to medical volunteers, and for other purposes; to the 
Committee on Labor and Human Resources.
  S. 1218. A bill to provide seed money to States and communities to 
match, on a volunteer basis, nonviolent criminal offenders and welfare 
families with churches that volunteer to offer assistance, and for 
other purposes; to the Committee on Labor and Human Resources.


                       CIVIL SOCIETY LEGISLATION
  Mr. COATS. Mr. President, I come to the Senate floor today to 
introduce a broad package of legislation motivated by a single 
conviction. That conviction is that we will never have a strong society 
if our civil society is weak. The order of our streets, the character 
of our children, and the renewal of our cities all depend directly on 
the health of families and neighborhoods, on the strength of grassroots 
community organizations, and on the vitality of private and religious 
institutions that care for those in need because it is these 
institutions that transmit values between generations, that encourage 
cooperation between citizens, and make our communities seem smaller, 
more friendly, and more manageable.
  In nearly every community, rich and poor, they once created an 
atmosphere in which most problems--from a teenage girl in trouble to 
the rowdy neighborhood kids--could be confronted before their 
repetition threatened the very existence of the community itself. It is 
an increasingly clear fact of social 

[[Page S 12717]]
science, and I think something evident to all of us in teaching of 
common sense, that when this network of civil society is strong, there 
is hope, hope in communities, hope in families, hope in America. And 
when it is weak, we find a destructive form of despair that pervades 
our land.
  This fact is a challenge to the left which tends to concentrate on 
individuals and their rights, not communities and their standards. But 
it is also a challenge to the right which seems to overconcentrate on 
simply transferring funds from one bureaucracy to another and changing 
the incentives of the current welfare system.
  Make no mistake. I support the goal of limiting government and of 
transferring resources and authority to levels of government closer to 
the people. But our deepest social problems, especially illegitimacy 
and violence, are not rooted in economic incentives or the level of 
government where spending takes place. I suggest they are rooted in the 
breakdown of value-shaping institutions. Government has always depended 
on these institutions. It does not create them. There is no legislative 
package that I or anyone could offer that would rebuild them. And there 
is no legislative package that could ever be written to replace them, 
although we have had an experiment here for the last 30 years or so 
with failed bureaucratic government approaches to these problems.
  There is, however, I would suggest, an urgent need for Government to 
respect, recognize and, wherever possible, encourage this network of 
institutions that creates community. This, I am convinced, is the next 
challenge for this Congress and the next stage of the Republican 
revolution.
  After the reach of government is limited, as it must be, the question 
is how do we nurture the caring safety net of civil society? How do we 
depend on it rather than undermine it or attempt to replace it? This 
concern should reorient our thinking and our efforts. Our central goal 
should be to respect and reinvigorate those traditional structures--
families, schools, neighborhoods, voluntary associations--that provide 
training in citizenship and pass morality from generation to 
generation.
  I hope this is a specific debate--that is what I want--not a general 
discussion. So I have made and will offer this morning a series of 
specific proposals. They are not, and I do not pretend them to be, a 
total solution to the problems that we face in society. But it is on 
these issues that I believe a constructive argument can begin.
  I have 18 specific pieces of legislation. People can take these 18 
bills as a blueprint or as a target. But my goal is to start a debate 
on items that I believe matter. I will not take the time this morning 
to describe each of these proposals, but in the next few days every 
Member of the Senate and the House will receive material summarizing 
them. However, I do want to take a few moments to describe the theory 
behind these proposals. Each one is designed to encourage in the margin 
where it is possible three levels of society.
  First, eight of the bills are directed at strengthening the role of 
families and specifically fathers and, in their absence, providing 
mentoring programs. This is the most basic level of civil society and, 
I would suggest, the most vulnerable level of civil society today.
  Second, six of the bills I am introducing are aimed at encouraging 
private, local, grassroots organizations that are renewing their own 
communities: community development corporations, neighborhood watches, 
maternity group homes, small businesses.
  And, finally, four of the bills are designed to encourage private and 
faith-based charities in individual acts of compassion. They have an 
effectiveness denied to government because they have the resources of 
love and spiritual renewal that no government can or even should 
provide.
  This legislative package is part of a larger report and larger 
effort, which I have titled the ``Project for American Renewal.''
  I have undertaken this project with Dr. William Bennett. I intend to 
call a series of hearings on these themes. We intend together to speak 
out on the goals, the theory behind the goals, and the specific 
elements of the proposal.
  We attempt to highlight the extraordinary success of some of these 
private and faith-based charities and the corresponding failure of 
Government bureaucracies to address some of our most fundamental, 
underlying social problems. Two hearings are already scheduled for the 
end of September.
  We also intend to raise this debate with Presidential candidates and 
in the Republican platform. It is my conviction that the Republican 
revolution will fail unless we have a message of hope that our worst 
social problems are not permanent features of American life, that these 
challenges are and can be confronted not by failed Government efforts 
but by private community faith-based institutions that nurture lives 
and bring renewed hope.
  I want to assure my Republican colleagues I believe in devolution, 
limiting government, giving authority and resources to State 
governments, but there is a bolder form of devolution that I think 
should take place beyond government. We should not only transfer 
resources and authority to States but beyond government entirely to 
those private institutions that humanize our lives and reclaim our 
communities.
  This I believe is the next step for Republicans. It is also a theme 
that I think will challenge the creativity of both parties and may 
likely cross party lines. We should adopt this approach because the 
alternative, centralized bureaucratic control, has failed. But I think 
there is another reason we should adopt this approach. We should adopt 
it because it is profoundly hopeful. These institutions do not just 
feed the body but they touch the soul. They have the power to transform 
individuals and renew our society. There is simply no alternative that 
holds such promise.
  Mr. President, I send to the desk the text of these 18 bills and ask 
that they be printed in the Record, and I hope that my colleagues will 
look at them carefully.
  Mr. President, I yield the floor.
  Mr. PACKWOOD addressed the Chair.
  The PRESIDING OFFICER. The Senator from Oregon.
  Mr. PACKWOOD. I congratulate the Senator from Indiana. He and I are 
on exactly the same wavelength on this. When we were debating the 
welfare bill initially a few weeks ago before the recess, I cited from 
a little pamphlet called ``To Empower People--The Role of Mediating 
Structures in Public Policy.'' It is 20 years old and it is by Peter 
Berger and Richard John Neuhaus, two quasi-philosophers. One has some 
background in religion. I will quote just the first page:

       Two seemingly contradictory tendencies are evident in 
     current thinking about public policy in America.

  Bear in mind, this is 20 years ago.

       First, there is a continuing desire for services provided 
     by the modern welfare state . . . The second tendency is one 
     of strong animus against Government bureaucracy and bigness 
     as such.

  And then here I might even disagree with this sentence.

       We suggest that the modern welfare state is here to stay, 
     indeed that it ought to expand the benefits it provides--but 
     that alternative mechanisms are possible to provide welfare 
     state services.

  And then they just leapfrog even State and local governments and they 
identify for us neighborhood, family, church, and voluntary 
associations. And that is why we have put in our bill to the extent we 
can make it constitutional that there is no prohibition about giving 
money to the Goodwill or Catholic Charities or a Jewish home for the 
aged if they are administering social services that we deem relevant.
  And just because there happens to be a menorah in the hallway or a 
cross on the wall should not make them ineligible to deliver the kinds 
of services that they deliver better than any government we have ever 
seen. I am sure the Senator, as I have, has been to shelter workshops 
and has seen the Salvation Army or Goodwill and what they do with a 
minuscule amount of money and lots of volunteers and community spirit 
that cannot be bought. If you try to buy it, you lose the spirit. And 
so I am delighted with what the Senator had to say today. And we are on 
exactly the same wavelength. I hope we are successful.
  Mr. COATS. I thank the Senator from Oregon for his remarks, and I 
look forward to the analysis of the legislative items I put forward. 
Again, I 

[[Page S 12718]]
want to say there is no legislation that necessarily can adequately 
address this underlying problem, but there are certainly things that I 
think we can do to encourage and to nurture, to provide respect and, 
hopefully, some measure of support to these institutions which, as the 
Senator from Oregon has said, just do remarkable jobs because they go 
beyond providing mere material needs and meeting those needs, which is 
important, but they also can transform lives.
  It is something that government cannot do to the extent that we can 
constitutionally. And we had the same concerns as we drafted this 
legislation. Can we constitutionally encourage these mediating 
institutions? I think our society will find that source of hope that so 
often is absent from our discussions.
  I thank the Senator from Oregon.
  Mr. PACKWOOD. It is interesting. Maybe the only constant in history 
is change. In the early common law, 13th, 14th, 15th century, juries 
were picked on the basis that they knew the defendant, not that they 
did not know the defendant or did not know the facts. These were 
neighborhood institutions. And who better to judge somebody than a 
group that knew somebody.
  We moved totally away from that. Now we sequester the Simpson jury 
for months and months and months so they do not know anybody, 
hopefully. But that was an attempt by the law 500 years ago to say, 
``We think neighbors are better judges of people than anybody else.'' 
We moved away from it, maybe wisely, maybe not. But the concept is not 
new that neighborhood knows better than anybody else.
  Mr. President, I ask unanimous consent that the text of the bills be 
printed in the Record.
  There being no objection, the bills were ordered to be printed in the 
Record, as follows:

                                S. 1201

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Kinship Care Act of 1995''.

     SEC. 2. KINSHIP CARE DEMONSTRATION.

       (a) Grants.--The Secretary of Health and Human Services 
     (hereafter referred to in this Act 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. 3. PROCEDURES TO PLACE CHILDREN WITH RELATIVES.

       A State that receives a grant under this Act 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. 4. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out this 
     Act $30,000,000 for each of the fiscal years 1996, 1997, and 
     1998.
                                                                    ____

                                S. 1202

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

     SECTION 1. SHORT TITLE; PURPOSE; DEFINITIONS.

       (a) Short Title.--This Act may be cited as the ``Role 
     Models Academy Demonstration Act''.
       (b) Purpose.--The purpose of this Act 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 Act--
       (1) the term ``Academy'' means the academy established 
     under section 3;
       (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. 2. OBJECTIVES.

       The objectives of this Act 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. 3. 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. 4. AUTHORIZATION.

       There are authorized to be appropriated $30,000,000 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 Act.
                                                                    ____

                                S. 1203

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

     SECTION 1. SHORT TITLE AND PURPOSES.

       (a) Short Title.--This Act may be cited as the ``Character 
     Development Act''.
       (b) Purposes.--The purposes of this Act are--

[[Page S 12719]]

       (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. 2. DEFINITIONS.

       For the purposes of this Act--
       (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 5 in accordance with this Act;
       (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. 3. 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 7 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 7, 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. 4. 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. 5. AUTHORIZED ACTIVITIES.

       (a) Permitted Uses.--Grant funds awarded under this Act 
     (other than grant funds awarded under section 4) 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 Act 
     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. 6. 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 Act.
       (b) Guidelines.--The Secretary shall develop and distribute 
     to eligible local educational agencies receiving a grant 
     under section 3 specific model guidelines for the screening 
     of mentors.

     SEC. 7. APPLICATIONS.

       (a) In General.--Each entity desiring a grant under this 
     Act 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 3 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. 8. 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 
     Act.
       (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 Act. Such criteria shall 
     provide for a description of the implementation of each 
     program or activity assisted under this Act and such program 
     or activity's effect on all participants, schools, 
     communities, and youth served by such program or activity.

     SEC. 9. REPORTS.

       (a) Report by Grant Recipients.--Each entity receiving a 
     grant under this Act shall submit to the evaluating 
     organization entering into the contract under section 8(a)(1) 
     an annual report regarding any program or activity assisted 
     under this Act. 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 

[[Page S 12720]]
     Congress not later than September 30, 1999, a report regarding the 
     success and effectiveness of grants awarded under this Act in 
     reducing the school dropout rate, improving academic 
     performance of at-risk youth, and reducing juvenile 
     delinquency and gang participation.

     SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

       (a) Mentoring Programs.--There is authorized to be 
     appropriated $35,000,000 for each of the fiscal years 1996, 
     1997, 1998, 1999, and 2000 to carry out section 3.
       (b) Implementation and Evaluation Grants.--There is 
     authorized to be appropriated $5,000,000 for each of the 
     fiscal years 1996, 1997, 1998, 1999, and 2000 to carry out 
     section 4.
                                                                    ____

                                S. 1204

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,
     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Family Housing Act of 
     1995''.

     SEC. 2. 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;''.
                                                                    ____

                                S. 1205

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

     SECTION 1. SHORT TITLE; FINDINGS; AND PURPOSES.

       (a) Short Title.--This Act 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) extensive data on same gender schools are needed to 
     determine whether same gender schools are closely tailored to 
     achieving the compelling government interest in assuring that 
     all children are educated to the best of their ability;
       (7) 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
       (8) same gender schools are a legal educational alternative 
     to coeducational 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) Purposes.--It is the purpose of this Act--
       (1) to award grants to local educational agencies for the 
     establishment of same gender schools for low-income students;
       (2) to determine whether same gender schools make a 
     difference in the educational achievement and opportunities 
     of low-income, educationally disadvantaged individuals;
       (3) to improve academic achievement and persistence in 
     school; and
       (4) to involve parents in the educational options and 
     choices of their children.

     SEC. 2. DEFINITIONS.

       As used in this Act--
       (1) 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;
       (2) the term ``mentor school'' means a public elementary 
     school or secondary school, or consortium of such schools, 
     that--
       (A)(i) in the case of a public elementary school or 
     secondary school, receives funds under this Act; or
       (ii) in the case of a consortium of such schools, all of 
     which receive funds under this Act;
       (B) develops a plan for, and provides access to--
       (i) a school for boys;
       (ii) a school for girls; and
       (iii) a coeducational school;
       (C) gives parents the option of choosing to send their 
     child to each school described in subparagraph (B);
       (D) admits students on the basis of a lottery, if more 
     students apply for admission to a school described in clause 
     (i) or (ii) of subparagraph (B) that can be accommodated;
       (E) operates, as part of the educational program of a 
     school described in clause (i) or (ii) of subparagraph (B), a 
     one-to-one mentoring program that--
       (i) involves members from the community served by such 
     school as volunteer mentors;
       (ii) pairs an adult member of such community with a student 
     of the same gender as such member; and
       (iii) involves the collaboration of one or more community 
     groups with experience in mentoring or other relationship 
     development activities; and
       (F) operates in pursuit of improving achievement among all 
     children based on a specific set of educational objectives 
     determined by the local educational agency applying for a 
     grant under this part, in conjunction with the mentor school 
     advisory board established under section 3(d), and agreed to 
     by the Secretary;
       (3) the term ``mentor school advisory board'' means an 
     advisory board established in accordance with section 3(d); 
     and
       (4) the term ``Secretary'' means the Secretary of 
     Education.

     SEC. 3. PROGRAM AUTHORIZED.

       (a) Authority.--
       (1) In general.--From amounts made available under section 
     7, the Secretary is authorized to award grants to not more 
     than 100 local educational agencies for the planning and 
     operation of one or more mentor schools.
       (2) Eligible local educational agencies.--The Secretary 
     shall only award a grant under paragraph (1) to a 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 (20 U.S.C. 6334) of such 
     Act in the State that have the highest number of children 
     described in section 1124(c) (20 U.S.C. 6333(c)) of such Act.
       (b) Grant Periods.--Each grant under subsection (a) may be 
     awarded for a period of not more than 5 years, of which a 
     local educational agency may use not more than 1 year for 
     planning and program development for a mentor school.
       (c) Limitation.--The Secretary shall not award more than 1 
     grant under this Act to support a particular mentor school.
       (d) Mentor School Advisory Board.--Each local educational 
     agency receiving a grant under this Act shall establish a 
     mentor school advisory board. Such advisory board shall be 
     composed of school administrators, parents, teachers, local 
     government officials and volunteers involved with a mentor 
     school. Such advisory board shall assist the local 
     educational agency in developing the application for 
     assistance under section 4 and serve as an advisory board in 
     the functioning of the mentor school.
       (e) Alternative Teaching Certificates.--Each local 
     educational agency operating a mentor school under this Act 
     is encouraged to employ teachers with alternative teaching 
     certificates, including participants in the program assisted 
     under section 1151 of title 10, United States Code (Troops to 
     Teachers Program).

     SEC. 4. APPLICATIONS.

       (a) Applications Required.--Each local educational agency 
     desiring a grant under this Act 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) Application Contents.--Each application described in 
     subsection (a) shall include--
       (1) a description of the educational program to be 
     implemented by the proposed mentor school, including--
       (A) the grade levels or ages of children to be served; and
       (B) the curriculum and instructional practices to be used;
       (2) a description of the objectives of the local 
     educational agency for the mentor school and a description of 
     how such agency intends to monitor and study the progress of 
     children participating in the mentor school;
       (3) a description of how the local educational agency 
     intends to include in the mentor school administrators, 
     teaching personnel, and role models from the private sector;
       (4) a description of how school administrators, parents, 
     teachers, local government and volunteers will be involved in 
     the design and implementation of the mentor school;
       (5) a description of the one-to-one mentoring program 
     required by section 2(2)(E);
       (6) a description of how the local educational agency or 
     the State, as appropriate, will provide for continued 
     operation of the mentor school once the Federal grant has 
     expired, if such agency determines that such school is 
     successful;
       (7) a description of how the grant funds will be used;
       (8) a description of how students in attendance at the 
     mentor school, or in the community served by such school, 
     will be--

[[Page S 12721]]

       (A) informed about such school; and
       (B) informed about the fact that admission to a school 
     described in section 2(2)(B) is completely voluntary;
       (9) a description of how grant funds provided under this 
     Act will be used in conjunction with funds provided to the 
     local educational agency under any other program administered 
     by the Secretary;
       (10) an assurance that the local educational agency will 
     annually provide the Secretary such information as the 
     Secretary may require to determine if the mentor school is 
     making satisfactory progress toward achieving the objectives 
     described in paragraph (2);
       (11) an assurance that the local educational agency will 
     cooperate with the Secretary in evaluating the program 
     authorized by this Act;
       (12) an assurance that resources provided under this Act 
     shall be used equally for schools for boys and for schools 
     for girls;
       (13) an assurance that the activities assisted under this 
     Act will not have an adverse affect, on either sex, that is 
     caused by--
       (A) the quality of facilities for boys and for girls;
       (B) the nature of the curriculum for boys and for girls;
       (C) program activities for boys and for girls; and
       (D) instruction for boys and for girls; and
       (14) such other information and assurances as the Secretary 
     may require.

     SEC. 5. SELECTION OF GRANTEES.

       The Secretary shall award grants under this Act on the 
     basis of the quality of the applications submitted under 
     section 4, taking into consideration such factors as--
       (1) the quality of the proposed curriculum and 
     instructional practices for the mentor school;
       (2) the organizational structure and management of the 
     mentor school;
       (3) the quality of the plan for assessing the progress made 
     by students served by a mentor school over the period of the 
     grant;
       (4) the extent of community support for the application;
       (5) the likelihood that the mentor school will meet the 
     objectives of such school and improve educational results for 
     students; and
       (6) the assurances submitted pursuant to section 4(b)(13).

     SEC. 6. EVALUATION.

       (a) In General.--From the amount appropriated under section 
     7 for each fiscal year, the Secretary shall make available to 
     the Comptroller General 1 percent of such amount to enable 
     the Comptroller General to enter into a contract with an 
     evaluating agency for the evaluation of the mentor schools 
     program under this Act. Such evaluation shall measure the 
     academic competence and social development of students 
     attending mentor schools, including school attendance levels, 
     student achievement levels, drop out rates, college 
     admissions, incidences of teenage pregnancy, and incidences 
     of incarceration.
       (b) Report.--The evaluating agency entering into the 
     contract described in subsection (a) shall submit a report to 
     the Congress not later than September 30, 2002, regarding the 
     results of the evaluation conducted in accordance with such 
     subsection.

     SEC. 7. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There is authorized to be appropriated 
     $300,000,000 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 Act.
       (b) Availability.--Funds appropriated under subsection (a) 
     shall remain available until expended.
                                                                    ____

                                S. 1206

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Adoption Assistance Act''.
                  TITLE I--GENERAL ADOPTION ASSISTANCE

     SEC. 101. REFUNDABLE CREDIT FOR ADOPTION EXPENSES.

       (a) In General.--Subpart C of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     refundable credits) is amended by redesignating section 35 as 
     section 36 and by inserting after section 34 the following 
     new section:

     ``SEC. 35. ADOPTION EXPENSES.

       ``(a) Allowance of Credit.--In the case of an individual, 
     there shall be allowed as a credit against the tax imposed by 
     this subtitle for the taxable year the amount of the 
     qualified adoption expenses paid or incurred by the taxpayer 
     during such taxable year.
       ``(b) Limitations.--
       ``(1) Dollar limitation.--The aggregate amount of qualified 
     adoption expenses which may be taken into account under 
     subsection (a) with respect to the adoption of a child shall 
     not exceed $5,000.
       ``(2) Income limitation.--The amount allowable as a credit 
     under subsection (a) for any taxable year shall be reduced 
     (but not below zero) by an amount which bears the same ratio 
     to the amount so allowable (determined without regard to this 
     paragraph but with regard to paragraph (1)) as--
       ``(A) the amount (if any) by which the taxpayer's adjusted 
     gross income (determined without regard to sections 911, 931, 
     and 933) exceeds $60,000, bears to
       ``(B) $40,000.
       ``(3) Denial of double benefit.--
       ``(A) In general.--No credit shall be allowed under 
     subsection (a) for any expense for which a deduction or 
     credit is allowable under any other provision of this 
     chapter.
       ``(B) Grants.--No credit shall be allowed under subsection 
     (a) for any expense to the extent that funds for such expense 
     are received under any Federal, State, or local program.
       ``(c) Qualified Adoption Expenses.--
       ``(1) In general.--For purposes of this section, the term 
     `qualified adoption expenses' means reasonable and necessary 
     adoption fees, court costs, attorney fees, and other 
     expenses--
       ``(A) which are directly related to, and the principal 
     purpose of which is for, the legal and final adoption of a 
     child by the taxpayer, and
       ``(B) which are not incurred in violation of State or 
     Federal law or in carrying out any surrogate parenting 
     arrangement.
       ``(2) Expenses for adoption of spouse's child not 
     eligible.--The term `qualified adoption expenses' shall not 
     include any expenses in connection with the adoption by an 
     individual of a child who is the child of such individual's 
     spouse.
       ``(d) Married Couples Must File Joint Returns, Etc.--Rules 
     similar to the rules of paragraphs (2), (3), and (4) of 
     section 21(e) shall apply for purposes of this section.''
       (b) Conforming Amendments.--
       (1) Paragraph (2) of section 1324(b) of title 31, United 
     States Code, is amended by inserting before the period ``, or 
     from section 35 of such Code''.
       (2) The table of sections for subpart C of part IV of 
     subchapter A of chapter 1 of the Internal Revenue Code of 
     1986 is amended by striking the last item and inserting the 
     following:

``Sec. 35. Adoption expenses.
``Sec. 36. Overpayments of tax.''

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1995.
          TITLE II--ADOPTION ASSISTANCE FOR FEDERAL EMPLOYEES

     SEC. 201. REIMBURSEMENT FOR ADOPTION EXPENSES.

       (a) In General.--Subpart G of part III of title 5, United 
     States Code, is amended by adding at the end the following:

             ``CHAPTER 90--MISCELLANEOUS EMPLOYEE BENEFITS
``9001. Adoption benefits.
     ``Sec. 9001. Adoption benefits

       ``(a) For the purpose of this section--
       ``(1) the term `agency' means--
       ``(A) an Executive agency;
       ``(B) an agency in the judicial branch; and
       ``(C) an agency in the legislative branch (other than any 
     included under subparagraph (A));
       ``(2) the term `employee' does not include any individual 
     who, pursuant to the exercise of any authority under section 
     8913(b), is excluded from participating in the health 
     insurance program under chapter 89; and
       ``(3) the term `adoption expenses', as used with respect to 
     a child, means any reasonable and necessary expenses directly 
     relating to the adoption of such child, including--
       ``(A) fees charged by an adoption agency;
       ``(B) placement fees;
       ``(C) legal fees;
       ``(D) counseling fees;
       ``(E) medical expenses, including those relating to 
     obstetrical care for the biological mother, medical care for 
     the child, and physical examinations for the adopting parent 
     or parents;
       ``(F) foster-care charges; and
       ``(G) transportation expenses.
       ``(b) The head of each agency shall by regulation establish 
     a program under which any employee of such agency who adopts 
     a child shall be reimbursed for any adoption expenses 
     incurred by such employee in the adoption of such child.
       ``(c) Under the regulations, reimbursement may be provided 
     only--
       ``(1) after the adoption becomes final, as determined under 
     the laws of the jurisdiction governing the adoption;
       ``(2) if, at the time the adoption becomes final, the child 
     is under 18 years of age and unmarried; and
       ``(3) if appropriate written application is filed within 
     such time, complete with such information, and otherwise in 
     accordance with such procedures as may be required.
       ``(d)(1) Reimbursement for an employee under this section 
     with respect to any particular child--
       ``(A) shall be payable only if, or to the extent that, 
     similar benefits paid (or payable) under one or more programs 
     established under State law or another Federal statute have 
     not met (or would not meet) the full amount of the adoption 
     expenses incurred; and
       ``(B) may not exceed $2,000.
       ``(2)(A) In any case in which both adopting parents are 
     employees eligible for reimbursement under this section, each 
     parent shall be eligible for an amount determined in 
     accordance with paragraph (1), except as provided in 
     subparagraph (B).
       ``(B) No amount shall be payable under this section if, or 
     to the extent that, payment of such amount would cause the 
     sum of the total amount payable to the adoptive parents under 
     this section, and the total amount paid (or payable) to them 
     under any program or programs referred to in paragraph 
     (1)(A), to exceed the lesser of--
       ``(i) the total adoption expenses incurred; or

[[Page S 12722]]

       ``(ii) $4,000.
       ``(3) The guidelines issued under subsection (g) shall 
     include provisions relating to interagency cooperation and 
     other appropriate measures to carry out this subsection.
       ``(e) Any amount payable under this section shall be paid 
     from the appropriation or fund used to pay the employee 
     involved.
       ``(f) An application for reimbursement under this section 
     may not be denied based on the marital status of the 
     individual applying.
       ``(g)(1) The Office of Personnel Management may issue any 
     general guidelines which the Office considers necessary to 
     promote the uniform administration of this section.
       ``(2) The regulations prescribed by the head of each 
     Executive agency under this section shall be consistent with 
     any guidelines issued under paragraph (1).
       ``(3) Upon the request of any agency, the Office may 
     provide consulting, technical, and any other similar 
     assistance necessary to carry out this section.''.
       (b) Conforming Amendments.--(1) The heading of subpart G of 
     part III of title 5, United States Code, is amended to read 
     as follows:

    ``SUBPART G--ANNUITIES, INSURANCE, AND MISCELLANEOUS BENEFITS''.
       (2) The analysis for part III of title 5, United States 
     Code, is amended--
       (A) by striking the item relating to subpart G and 
     inserting in lieu thereof the following:

  ``SUBPART G--ANNUITIES, INSURANCE, AND MISCELLANEOUS BENEFITS''; and
       (B) by adding after the item relating to chapter 89 the 
     following:

``90. Miscellaneous Employee Benefits.......................9001''.....
     SEC. 202. APPLICABILITY TO POSTAL EMPLOYEES.

       Section 1005 of title 39, United States Code, is amended by 
     adding at the end the following:
       ``(g) Section 9001 of title 5 shall apply to the Postal 
     Service. Regulations prescribed by the Postal Service to 
     carry out this subsection shall be consistent with any 
     guidelines issued under subsection (g)(1) of such section.''.
     SEC. 203. EFFECTIVE DATE.

       This title shall take effect on October 1, 1995, and shall 
     apply with respect to any adoption which becomes final 
     (determined in the manner described in section 9001(c)(1) of 
     title 5, United States Code, as added by this title) on or 
     after that date.
              TITLE III--EXCLUSION OF ADOPTION ASSISTANCE

     SEC. 301. EXCLUSION OF ADOPTION ASSISTANCE.

       (a) In General.--Part III of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 is amended by redesignating 
     section 137 as section 138 and by inserting after section 136 
     the following new section:

     ``SEC. 137. ADOPTION ASSISTANCE.

       ``(a) In General.--Gross income of an employee does not 
     include employee adoption assistance benefits, or military 
     adoption assistance benefits, received by the employee with 
     respect to the employee's adoption of a child.
       ``(b) Definitions.--For purposes of this section--
       ``(1) Employee adoption assistance benefits.--The term 
     `employee adoption assistance benefits' means payment by an 
     employer of qualified adoption expenses with respect to an 
     employee's adoption of a child, or reimbursement by the 
     employer of such qualified adoption expenses paid or incurred 
     by the employee in the taxable year.
       ``(2) Employer and employee.--The terms `employer' and 
     `employee' have the respective meanings given such terms by 
     section 127(c).
       ``(3) Military adoption assistance benefits.--The term 
     `military adoption assistance benefits' means benefits 
     provided under section 1052 of title 10, United States Code, 
     or section 514 of title 14, United States Code.
       ``(4) Qualified adoption expenses.--
       ``(A) In general.--The term `qualified adoption expenses' 
     means reasonable and necessary adoption fees, court costs, 
     attorney fees, and other expenses--
       ``(i) which are directly related to, and the principal 
     purpose of which is for, the legal adoption of an eligible 
     child by the taxpayer, and
       ``(ii) which are not incurred in violation of State or 
     Federal law or in carrying out any surrogate parenting 
     arrangement.
       ``(B) Eligible child.--The term `eligible child' means any 
     individual--
       ``(i) who has not attained age 18 as of the time of the 
     adoption, or
       ``(ii) who is physically or mentally incapable of caring 
     for himself.
       ``(c) Coordination With Other Provisions.--The Secretary 
     shall issue regulations to coordinate the application of this 
     section with the application of any other provision of this 
     title which allows a credit or deduction with respect to 
     qualified adoption expenses.''
       (b) Clerical Amendment.--The table of sections for part III 
     of subchapter B of chapter 1 of such Code is amended by 
     striking the item relating to section 137 and inserting the 
     following new items:

``Sec. 137. Adoption assistance.
``Sec. 138. Cross references to other Acts.''

       (c) Effective Date.--The amendments made this section shall 
     apply to taxable years beginning after December 31, 1995.
                                                                    ____

                                S. 1207

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,
     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Family Reconciliation Act''.

     SEC. 2. 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, 1995.

     SEC. 3. 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.''.
                                                                    ____


[[Page S 12723]]


                                S. 1208

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

     SECTION 1. SHORT TITLE; AMENDMENT OF 1986.

       (a) Short Title.--This Act may be cited as the ``Family 
     Fairness Act''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal 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 a section or other provision of the Internal 
     Revenue Code of 1986.

     SEC. 2. ADDITIONAL EARNED INCOME CREDIT FOR MARRIED 
                   INDIVIDUALS.

       (a) In General.--Paragraph (1) of section 32(a) (relating 
     to earned income credit) is amended to read as follows:
       ``(1) In general.--There shall be allowed as a credit 
     against the tax imposed by this subtitle for the taxable year 
     an amount equal to the sum of--
       ``(A) in the case of an eligible individual, an amount 
     equal to the credit percentage of so much of the taxpayer's 
     earned income for the taxable year as does not exceed the 
     earned income amount, and
       ``(B) in the case of an eligible married individual, the 
     applicable percentage of $1,000.''.
       (b) Applicable Percentage.--Section 32(b) (relating to 
     percentages and amounts) is amended by adding at the end the 
     following new paragraph:
       ``(3) Applicable percentage.--The applicable percentage for 
     any taxable year is equal to 100 percent reduced (but not 
     below 0 percent) by 10 percentage points for each $1,000 (or 
     fraction thereof) by which the taxpayer's earned income for 
     such taxable year exceeds $16,000.''.
       (c) Eligible Married Individuals.--Section 32(c) (relating 
     to definitions and special rules) is amended by adding at the 
     end the following new paragraph:
       ``(4) Eligible married individuals.--The term `eligible 
     married individual' means an eligible individual--
       ``(A) who is married (as defined in section 7703) and who 
     has lived together with the individual's spouse at all times 
     during such marriage during the taxable year, and
       ``(B) has earned income for the taxable year of at least 
     $8,500.''.
       (d) Conforming Amendments.--
       (1) Section 32(a)(2) is amended by striking ``paragraph 
     (1)'' and inserting ``paragraph (1)(A)''.
       (2) Section 32(j) is amended to read as follows:
       ``(j) Inflation Adjustments.--
       ``(1) In general.--In the case of any taxable year 
     beginning after the applicable calendar year, each dollar 
     amount referred to in paragraph (2)(B) shall be increased by 
     an amount equal to--
       ``(A) such dollar amount, multiplied by
       ``(B) the cost-of-living adjustment determined under 
     section 1(f)(3), for the calendar year in which the taxable 
     year begins, by substituting for `calendar year 1992' in 
     subparagraph (B) thereof--
       ``(i) `calendar year 1993' in the case of the dollar 
     amounts referred to in paragraph (2)(B)(i), and
       ``(ii) `calendar year 1995' in the case of the dollar 
     amounts referred to in paragraph (2)(B)(ii).
       ``(2) Definitions, etc.--For purposes of paragraph (1)--
       ``(A) Applicable calendar year.--The term `applicable 
     calendar year' means--
       ``(i) 1994 in the case of the dollar amounts referred to in 
     paragraph (2)(B)(i), and
       ``(ii) 1996 in the case of the dollar amounts referred to 
     in paragraph (2)(B)(ii).
       ``(B) Dollar amounts.--The dollar amounts referred to in 
     this subparagraph are--
       ``(i) each dollar amount contained in subsection (b)(2)(A), 
     and
       ``(ii) the $16,000 amount contained in subsection (b)(3) 
     and the dollar amount contained in subsection (c)(4)(B).
       ``(3) Rounding.--If any dollar amount after being increased 
     under paragraph (1) is not a multiple of $10, such dollar 
     amount shall be rounded to the nearest multiple of $10 (or, 
     if such dollar amount is a multiple of $5, such dollar amount 
     shall be increased to the next higher multiple of $10).''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1995.

     SEC. 3. EARNED INCOME CREDIT DENIED TO INDIVIDUALS NOT 
                   AUTHORIZED TO BE EMPLOYED IN THE UNITED STATES.

       (a) In General.--Section 32(c)(1) (relating to individuals 
     eligible to claim the earned income tax credit) is amended by 
     adding at the end the following new subparagraph:
       ``(F) Identification number requirement.--The term 
     `eligible individual' does not include any individual who 
     does not include on the return of tax for the taxable year--
       ``(i) such individual's taxpayer identification number, and
       ``(ii) if the individual is married (within the meaning of 
     section 7703), the taxpayer identification number of such 
     individual's spouse.''.
       (b) Special Identification Number.--Section 32 is amended 
     by adding at the end the following new subsection:
       ``(l) Identification Numbers.--Solely for purposes of 
     paragraphs (1)(F) and (3)(D) of subsection (c), a taxpayer 
     identification number means a social security number issued 
     to an individual by the Social Security Administration (other 
     than a social security number issued pursuant to clause (II) 
     (or that portion of clause (III) that relates to clause (II)) 
     of section 205(c)(2)(B)(i) of the Social Security Act).''.
       (c) Extension of Procedures Applicable to Mathematical or 
     Clerical Errors.--Section 6213(g)(2) (relating to the 
     definition of mathematical or clerical errors) is amended by 
     striking ``and' at the end of subparagraph (D), by striking 
     the period at the end of subparagraph (E) and inserting ``, 
     and'', and by inserting after subparagraph (E) the following 
     new subparagraph:
       ``(F) an omission of a correct taxpayer identification 
     number required under section 23 (relating to credit for 
     families with younger children) or section 32 (relating to 
     the earned income tax credit) to be included on a return.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1995.

     SEC. 4. REPEAL OF EARNED INCOME CREDIT FOR INDIVIDUALS 
                   WITHOUT CHILDREN.

       (a) In General.--Subparagraph (A) of section 32(c)(1) 
     (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) 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, 
     1995.

     SEC. 6. RULES RELATING TO DENIAL OF EARNED INCOME CREDIT ON 
                   BASIS OF DISQUALIFIED INCOME.

       (a) Definition of Disqualified Income.--Paragraph (2) of 
     section 32(i) (defining disqualified income) is amended by 
     striking ``and'' at the end of subparagraph (B), by striking 
     the period at the end of subparagraph (C) and inserting ``, 
     and'' and by adding at the end the following new 
     subparagraphs:
       ``(D) capital gain net income,
       ``(E) the excess (if any) of--
       ``(i) the aggregate income from all passive activities for 
     the taxable year (determined without regard to any amount 
     described in a preceding subparagraph), over
       ``(ii) the aggregate losses from all passive activities for 
     the taxable year (as so determined), and
       ``(F) amounts includible in gross income under section 652 
     or 662 for the taxable year to the extent not taken into 
     account under any preceding subparagraph.
     For purposes of subparagraph (E), the term `passive activity' 
     has the meaning given such term by section 469.''.
       (b) Decrease in Amount of Disqualified Income Allowed.--
     Paragraph (1) of section 32(i) (relating to denial of credit) 
     is amended by striking ``$2,350'' and inserting ``$1,000''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1995.

     SEC. 7. MODIFICATION OF ADJUSTED GROSS INCOME DEFINITION FOR 
                   EARNED INCOME CREDIT.

       (a) In General.--Subparagraph (B) of section 32(a)(2) 
     (relating to limitation) is amended by striking ``adjusted 
     gross income'' and inserting ``modified adjusted gross 
     income''.
       (b) Modified Adjusted Gross Income Defined.--Section 32(c) 
     (relating to definitions and special rules) is amended by 
     adding at the end the following new paragraph:
       ``(5) Modified adjusted gross income.--The term `modified 
     adjusted gross income' means adjusted gross income, increased 
     by the sum of--
       ``(A) social security benefits (as defined in section 
     86(d)) received to the extent not includible in gross income,
       ``(B) amounts received by (or on behalf of) a spouse 
     pursuant to a divorce or separation instrument (as defined in 
     section 71(b)(2)) which, under the terms of the instrument, 
     are fixed as payable for the support of the children of the 
     payor spouse (as determined under section 71(c)),
       ``(C) interest received or accrued during the taxable year 
     which is exempt from tax imposed by this chapter, and
       ``(D) any amount received by a participant or beneficiary 
     under a qualified retirement plan (as defined in section 
     4974(c)) to the extent not includible in gross income.

     Subparagraph (D) shall not apply to any amount received if 
     the recipient transfers such amount in a rollover 
     contribution described in section 402(c), 403(a)(4), 
     403(b)(8), or 408(d)(3).''
       (c) Study.--The Secretary of the Treasury shall conduct a 
     study of the Federal tax treatment of child support payments 
     to determine whether or not changes in such treatment are 
     necessary. The Secretary shall report to the Committee on 
     Finance of the Senate and the Committee on Ways and Means of 
     the House of Representatives the results of the study, 
     including recommendations (if any) which the Secretary 
     determines appropriate to encourage payment of child support 
     liabilities by parents and to make both parents more 
     responsible for a child's economic well-being.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1995.
     
[[Page S 12724]]


     SEC. 8. EARNED INCOME CREDIT NOT ALLOWED UNTIL RECEIPT OF 
                   EMPLOYER'S WITHHOLDING STATEMENT.

       (a) In General.--Section 6401(b) (relating to excessive 
     credits treated as overpayments) is amended by adding at the 
     end the following new paragraph:
       ``(3) Special rule for earned income credit.--For purposes 
     of paragraph (1), the earned income credit allowed under 
     section 32 shall not be treated as a credit allowable under 
     subpart C of part IV of subchapter A of chapter 1 unless the 
     Secretary is able to verify the amount of such credit by 
     comparing it with--
       ``(A) information returns filed with the Secretary under 
     section 6051(d) by employees of the individual claiming the 
     credit,
       ``(B) self-employment tax returns filed with the Secretary 
     under section 6017, or
       ``(C) both.

     The preceding sentence shall apply to any advanced payment of 
     the earned income credit under section 3507.''
       (b) Effective Date; Study.--
       (1) In general.--The amendment made by this section shall 
     apply to taxable years beginning after December 31, 1996.
       (2) Study.--The Secretary of the Treasury shall conduct a 
     study to determine the delays (if any) which would result in 
     the processing of Federal income tax returns by reason of the 
     amendment made by this section. Not later than 1 year after 
     the date of the enactment of this Act, the Secretary shall 
     report the results of the study to the Committee on Finance 
     of the Senate and the Committee on Ways and Means of the 
     House of Representatives, including recommendations (if any) 
     on ways to shorten any delay.

     SEC. 9. PREVENTION OF FRAUD IN ELECTRONIC RETURNS.

       (a) In General.--The Secretary of the Treasury shall 
     provide that any person applying to be an electronic return 
     originator on or after the date of the enactment of this Act 
     shall not be approved unless the applicant provides 
     fingerprints and credit information to the satisfaction of 
     the Secretary.
       (b) Past Applicants.--The Secretary of the Treasury shall 
     apply the requirements described in subsection (a) to 
     electronic return originators whose applications were 
     approved before the date of the enactment of this Act without 
     fingerprints and credit check information being provided.
                                                                    ____

                                S. 1209

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

     SECTION 1. SHORT TITLE; AMENDMENTS TO SOCIAL SECURITY ACT.

       (a) Short Title.--This Act may be cited as the 
     ``Responsible Parenthood Act of 1995''.
       (b) Amendments to the Social Security Act.--Except as 
     otherwise specifically provided, whenever in this Act 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. 2. 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 
     ``$686,000,000'' and inserting ``$886,000,000''.
       (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. 3. 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. 4. 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 ``; or''; 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 3(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. 5. APPLICATION FOR BLOCK GRANT FUNDS.

       Section 505(a)(5) (42 U.S.C. 705(a)(5)) is amended--
       (1) by redesignating subparagraph (F) as subparagraph (I); 
     and
       (2) by inserting after subparagraph (F) the following 
     subparagraphs:
       ``(G) 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;
       ``(H)(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. 6. REPORTS AND AUDITS.

       (a) Report by State.--Section 506(a)(2) (42 U.S.C. 
     706(a)(2)) is amended by adding 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).''.
     
[[Page S 12725]]


     SEC. 7. 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. 8. DEFINITION OF FAMILY.

       Section 501(b) (42 U.S.C. 701(b)) is amended by adding at 
     the end the following new paragraph:
       ``(5) The term `family' means a child under the age of 19, 
     the biological or adoptive parents of the child, the legal 
     guardian of the child, or a responsible relative or caretaker 
     with whom the child regularly resides, the siblings of the 
     child, and other individuals living in the child's home.''.

     SEC. 9. 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. 10. EFFECTIVE DATE.

       This Act and the amendments made by this Act shall take 
     effect on October 1, 1995.
                                                                    ____

                                S. 1210

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,
     SECTION 1. SHORT TITLE.

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

     SEC. 2. PURPOSE.

       The purpose of this Act 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. 3. DEFINITIONS.

       As used in this Act--
       (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 Act;
       (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 Act;
       (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. 4. 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 Act.

     SEC. 5. PROGRAM AUTHORIZED.

       (a) Reservation.--From the amount appropriated pursuant to 
     the authority of section 4 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 Act in accordance 
     with section 11.
       (b) Grants.--
       (1) In general.--From the amount appropriated pursuant to 
     the authority of section 4 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 Act 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 Act 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 9(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 Act 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 11.
       (d) Special Rule.--Each school participating in a 
     demonstration project under this Act 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. 6. AUTHORIZED PROJECTS; PRIORITY.

       (a) Authorized Projects.--The Secretary may award a grant 
     under this Act 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 Act, 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 Act, 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. 7. APPLICATIONS.

       (a) In General.--Any eligible entity that wishes to receive 
     a grant under this Act 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 Act than the choice school 
     does for other children;

[[Page S 12726]]

       (E) an assurance that each choice school operated, for at 
     least 1 year prior to accepting education certificates under 
     this Act, 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 Act 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 Act 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 Act; and
       (D) a description of the procedures to be used to ensure 
     compliance with section 9(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 
     Act;
       (D) a description of the procedures by which a choice 
     school will make a pro rata refund of the education 
     certificate under this Act 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 10;
       (F) an assurance that the eligible entity will place all 
     funds received under this Act 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 11; 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. 8. EDUCATION CERTIFICATES.

       (a) Education Certificates.--
       (1) Amount.--The amount of an eligible child's education 
     certificate under this Act 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 Act 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 9(a)(1).
       (B) Schools charging tuition.--If an eligible child 
     participating in a demonstration project under this Act 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 Act 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 
     Act that are provided to other eligible children.
       (3) Special rule.--An eligible entity may provide an 
     education certificate under this Act 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 9(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 Act 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 9(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 Act, 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. 9. 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 Act, 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 Act 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 Act 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 Act 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 Act and, if needed, to rank 
     families by income, in accordance with section 
     7(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 Act.
       (c) Construction Provisions.--
       (1) Other institutions.--Nothing in this Act 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 Act from 
     using such funds to pay the administrative costs of a 
     demonstration project under this Act; or
       (B) the expenditure in or by religious or other private 
     institutions of any Federal funds provided under this Act.
       (2) Desegregation plans.--Nothing in this Act shall be 
     construed to interfere with any desegregation plans that 
     involve school attendance areas affected by this Act.
       (3) Prohibition of federal director, supervision or 
     control.--Nothing in this Act 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 Act.

     SEC. 10. PARENTAL NOTIFICATION.

       Each eligible entity receiving a grant under this Act 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;

[[Page S 12727]]

       (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. 11. 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 Act.
       (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 Act 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 
     12(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 Act. Such criteria shall provide for--
       (1) a description of the implementation of each 
     demonstration project under this Act 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 
     Act; and
       (B) students not receiving education certificates under 
     this Act.

     SEC. 12. REPORTS.

       (a) Report by Grant Recipient.--Each eligible entity 
     receiving a grant under this Act shall submit to the 
     evaluating agency entering into the contract under section 
     11(a)(1) an annual report regarding the demonstration project 
     under this Act. 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 11(a)(2) of each 
     demonstration project under this Act. Each such report shall 
     contain a copy of--
       (A) the annual evaluation under section 11(a)(2) of each 
     demonstration project under this Act; 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 9 months after the 
     conclusion of the demonstration projects under this Act that 
     summarizes the findings of the annual evaluations conducted 
     pursuant to section 11(a)(2).
                                                                    ____

                                S. 1211
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,
     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Restitution Responsibility 
     Act''.

     SEC. 2. 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 Act, 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 Act;
       (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 
     Act;
       (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;
       (D) such other provisions consistent with the purposes of 
     this Act; 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 Act shall be awarded 
     for a period of not more than 5 years.

     SEC. 3. REPORT.

       Each State receiving a grant under this Act 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 
     section.

     SEC. 4. EVALUATION.

       (a) Final Evaluation.--Within a month after the award of 
     the first grant made under this Act, the Attorney General 
     shall contract with an independent organization to do a final 
     evaluation of the projects funded by this Act at the end of 5 
     years.
       (b) Interim Evaluation.--The Attorney General shall conduct 
     an interim evaluation of the projects funded by this Act 3 
     years after the first grant made under this Act.
       (c) Content of Reports.--The reports required by 
     subsections (a) and (b) shall include the following 
     information:
       (1) An evaluation of data collection efforts.
       (2) An assessment of whether ordering of restitution 
     increased and whether prioritizing restitution in fees 
     collected improved restitution payments.
       (3) An analysis of whether the project was successful in 
     improving significantly restitution collection rates.
       (4) An evaluation of most effective methods in improving 
     restitution collection and in enforcing restitution payments.
       (5) An analysis of how effective automated data systems 
     were in increasing restitution collection.
       (6) An analysis of States' use of the community restitution 
     fund and its effectiveness 

[[Page S 12728]]
     in ensuring indigent offenders pay restitution.

     SEC. 5. 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 Act.
                                                                    ____

                                S. 1212

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

     SECTION. 1. SHORT TITLE.

       This Act may be cited as the ``Assets for Independence 
     Act''.

     SEC. 2. 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. 3. 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 Act, 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 4 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.--

[[Page S 12729]]

       (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 4 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.

[[Page S 12730]]

       (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 4 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. 4. 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 3(g) of 
     the Assets for Independence 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 3(g) of 
     the Assets for Independence 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 3(g) of the Assets for Independence 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--

[[Page S 12731]]


       ``(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 3(g) of the Assets 
     for Independence 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 3(g) of the Assets for Independence 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 3(g) of the Assets for Independence 
     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 
     3(g) of the Assets for Independence 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 3(g) of the 
     Assets for Independence 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 
     3(g) of the Assets for Independence 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 
     3(g) of the Assets for Independence 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 3(g) of the Assets for Independence 
     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 3(g) of the Assets for Independence 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),'' 

[[Page S 12732]]
     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. 5. 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 4 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 3 of this Act (or would be 
     participating in such a project but for the suspension of the 
     project).
                                                                    ____

                                S. 1213

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Urban Homestead Act of 
     1995''.

     SEC. 2. DEFINITIONS.

       For purposes of this Act, 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 section 3(c)(2), 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 (a) 
     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.

     SEC. 3. DISPOSITION OF UNOCCUPIED AND SUBSTANDARD PUBLIC 
                   HOUSING.

       (a) 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 subsection (b), if 
     the unit of general local government enters into an agreement 
     with the Secretary described in subsection (c).
       (b) Timing.--
       (1) In general.--Any transfer of ownership under subsection 
     (a) shall be completed--
       (A) 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
       (B) 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.
       (2) Satisfaction of indebtedness.--Prior to any transfer of 
     ownership under paragraph (1), the Secretary shall satisfy 
     any indebtedness incurred in connection with the project or 
     residence at issue, either by--
       (A) cancellation of the indebtedness; or
       (B) reimbursing the unit of general local government to 
     which the project or residence is transferred for the amount 
     of the indebtedness.
       (c) Sale to Community Development Corporations.--An 
     agreement is described in this subsection 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:
       (1) 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 
     subsection (a), the unit of general local government shall 
     notify community development corporations located in the 
     State in which the project or residence is located--
       (A) of such acquisition of title; and
       (B) 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.
       (2) Right of first refusal.--During the 6-month period 
     described in paragraph (1)(B)--
       (A) 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 
     paragraph (1), 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
       (B) 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.
       (3) Other disposition.--During the 6-month period beginning 
     on the expiration of the 6-month period described in 
     paragraph (1)(B), the unit of general local government shall 
     dispose of the multifamily housing 

[[Page S 12733]]
     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.

     SEC. 4. 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 Act.

     SEC. 5. TENANT LEASES.

       This Act shall not affect the terms or the enforceability 
     of any contract or lease entered into before the date of 
     enactment of this Act.

     SEC. 6. 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 
     Act.
                                                                    ____

                                S. 1214

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Maternity Shelter Act of 
     1995''.

     SEC. 2. 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.
             TITLE I--MATERNAL HEALTH CERTIFICATES PROGRAM

     SEC. 101. 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 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 1996;
       (2) $75,000,000 for fiscal year 1997; and
       (3) $100,000,000 for fiscal year 1998.
                TITLE II--MATERNITY HOME DEMONSTRATIONS

     SEC. 201. PURPOSES.

       It is the purpose of this title 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. 202. ESTABLISHMENT OF DEMONSTRATION PROGRAM.

       (a) Grants.--
       (1) In general.--The Secretary of Health and Human Services 
     (hereinafter referred to in this Act 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.

[[Page S 12734]]

       (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 
     1996, 1997, and 1998 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.
  TITLE III--REHABILITATION GRANTS FOR MATERNITY HOUSING AND SERVICES 
                               FACILITIES

     SEC. 301. ESTABLISHMENT OF GRANT PROGRAM.

       The Secretary of Housing and Urban Development shall carry 
     out a program to provide assistance under this title to 
     eligible nonprofit entities for rehabilitation of existing 
     structures for use as facilities to provide housing and 
     services to pregnant women.

     SEC. 302. AUTHORITY AND APPLICATIONS.

       (a) Authority.--The Secretary may make grants under the 
     program under this title 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 title 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. 303. GRANT LIMITATIONS.

       (a) Maximum Grant Amount.--A grant under this title may not 
     be in an amount greater than $1,000,000. An eligible 
     nonprofit entity may not receive more than 1 grant under this 
     title in any fiscal year.
       (b) Maximum Number of Grants.--The Secretary may not make 
     grants under this title 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 
     title 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 title shall be operated for not less 
     than 10 years for the purposes described in this title.
       (e) Repayment.--
       (1) Requirement.--The Secretary shall require a recipient 
     of a grant under this title 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 title 
     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 
     title.

     SEC. 304. REPORTS.

       The Secretary shall require each eligible nonprofit entity 
     that receives a grant under this title 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. 305. DEFINITIONS.

       For purposes of this title:
       (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 702(b) for a 
     grant under this title.
       (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.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Housing and Urban Development.

     SEC. 306. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out this 
     title $25,000,000 for fiscal year 1996, $40,000,000 for 
     fiscal year 1997, and $60,000,000 for fiscal year 1998.
                   TITLE IV--MISCELLANEOUS PROVISIONS

     SEC. 401. EVALUATIONS AND REPORTS.

       (a) Evaluation.--The Secretary of Health and Human Services 
     (with respect to titles I and II) and the Secretary of 
     Housing and Urban Development (with respect to title III) 
     shall conduct an evaluation of each program receiving a grant 
     under this Act and may require each recipient of a grant 
     under this Act 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 Act 
     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 Act.
       (c) Funding.--Of the amounts appropriated pursuant to this 
     Act--
       (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 titles I and II; 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 title III;

     for the purpose of carrying out the activities under 
     subsections (a) and (b).

     SEC. 402. PROHIBITION ON ABORTION.

       Amounts may be made available under this Act 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 of 
     the fetus were carried to term.
                                                                    ____

                                S. 1215
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Neighborhood Security Act''.

     SEC. 2. PURPOSES.

       It is the purpose of this Act to provide for the 
     establishment of demonstration projects designed to determine 
     the effectiveness of--
       (1) certain activities by community residents in 
     coordination with the local police department in preventing 
     and removing violent crime and drug trafficking from the 
     community;
       (2) such activities in increasing economic development in 
     the community; and
       (3) such activities in preventing or ending retaliation by 
     perpetrators of crime against community residents engaged in 
     these activities.

     SEC. 3. DEMONSTRATION GRANT AUTHORITY.

       (a) Demonstration Authority.--Not later than 16 months 
     after the date of enactment of this Act, the Secretary shall 
     award grants under this Act. Grants shall be awarded annually 
     under this section and shall be for a period of 4 years.
       (b) Limitation on Grant Amounts.--The amount of each grant 
     awarded under this Act shall not be less than $25,000 nor 
     more than $100,000.
       (c) Reduction in Amount.--Amounts provided under a grant 
     awarded under this Act for a fiscal year shall be reduced in 
     proportion to any reduction in the amounts appropriated under 
     this Act for such fiscal year as compared to the amounts 
     appropriated for the prior fiscal year. 

[[Page S 12735]]

       (d) Unused Portion of Grant Funds.--Any unused portion of a 
     grant awarded under this section shall, upon the termination 
     of such grant, be transferred to the Secretary for 
     redistribution in the subsequent fiscal year or for repayment 
     to the Department of the Treasury.

     SEC. 4. APPLICATION.

       (a) Submission.--To be eligible to receive a grant under 
     section 3, a qualified entity shall, not later than 12 months 
     after the date of enactment of this Act, submit to the 
     Secretary an application to conduct a demonstration project 
     under this Act.
       (b) Content.--An application submitted under subsection (a) 
     shall be in such form and contain such information as the 
     Secretary shall require, including--
       (1) an agreement with the local police department to 
     coordinate and assist in the prevention and removal of 
     violent crime and drug trafficking from the target community;
       (2) a plan detailing the nature and extent of coordination 
     and assistance to be provided by the local police department, 
     project participants, and the applicant; and
       (3) a description of the strategy of the community for the 
     physical and economic development of the community.
       (c) Criteria.--In considering whether to approve an 
     application submitted under this section, the Secretary shall 
     consider--
       (1) the degree to which the project described in the 
     application will support existing community economic 
     development activities by preventing and removing violent 
     crime and drug trafficking from the community;
       (2) the demonstrated record of project participants with 
     respect to economic and community development activities;
       (3) the ability of the applicant to responsibly administer 
     the project;
       (4) the ability of the applicant to assist and coordinate 
     with project participants to achieve economic development and 
     prevent and remove violent crime and drug trafficking in the 
     community;
       (5) the adequacy of the plan to assist and coordinate with 
     the local police department in preventing and removing 
     violent crime and drug trafficking in the community;
       (6) the consistency of the application with the eligible 
     activities and the uses for the grant under this Act;
       (7) the aggregate amount of funds from non-Federal (public 
     and private sector) sources that are formally committed to 
     the project;
       (8) the adequacy of the plan for providing information 
     relevant to an evaluation of the project to the independent 
     research organization; and
       (9) such other factors as may be determined appropriate by 
     the Secretary.
       (d) Preferences.--In considering an application submitted 
     under this section, the Secretary shall give preference to an 
     applicant that demonstrates a commitment to work with project 
     participants and a local police department in a community 
     with--
       (1) an enterprise zone or enterprise community designation 
     or an area established pursuant to any consolidated planning 
     process for use of Federal housing and community development 
     funds;
       (2) significant rates of violent crime and drug 
     trafficking, as determined by the Secretary; and
       (3) at least one non-profit community development 
     corporation or similar organization that is willing to and 
     capable of increasing economic development.
       (e) Approval.--Not later than 15 months after the date of 
     enactment of this Act, the Secretary shall, on competitive 
     basis, approve or disapprove of the applications submitted 
     under this section.

     SEC. 5. ELIGIBLE ACTIVITIES.

       (a) Activities.--Amounts provided under a grant awarded 
     under this Act shall be used for the following activities:
       (1) Citizen patrols by car or by foot intended to prevent 
     violent crime and eradicate open market or street sales of 
     controlled substances.
       (2) Block watch activities, including identification of 
     property for purposes of retrieving stolen goods, camera 
     surveillance to identify drug traffickers and their 
     customers, protection of evidence to ensure evidence is not 
     lost or destroyed prior to police arrival, and computer 
     linkages among organizations and the police to identify hot 
     spots and speed the dissemination of information.
       (3) Property modification programs, including securing 
     buildings and residences to prevent burglary, and structural 
     changes, such as the construction of fences, to parks or 
     buildings to prevent drug sales or other criminal activity in 
     those areas.
       (4) Squatter eviction programs aimed at notifying public 
     authorities of trespassers in abandoned buildings used as 
     crack houses or heroin shooting galleries and increasing 
     efforts to remove such squatters.
       (5) Expansion of community liaisons with the police, 
     including expanding the community's role in community 
     policing activities.
       (6) Developing and expanding programs to prevent or end 
     retaliation by perpetrators of crime against project 
     participants.
       (7) Other activities consistent with the purposes of this 
     Act.
       (b) Additional Activities.--Amounts provided under a grant 
     awarded under this Act may be used for additional activities 
     in support of the activities described in subsection (a), 
     including--
       (1) the purchase of equipment or supplies, including 
     cameras, video cameras, walkie-talkies, and computers;
       (2) the training of project participants; and
       (3) the hiring of staff for grantees or project participant 
     organizations to assist in coordinating activities among 
     project participants and with the local police department.

     SEC. 6. LOCAL CONTROL OVER PROJECTS.

       Except as provided in regulations promulgated under the 
     succeeding sentence, each organization authorized to conduct 
     a demonstration project under this Act shall have exclusive 
     authority over the administration of the project. The 
     Secretary may prescribe such regulations with respect to such 
     demonstration projects as are expressly authorized or as are 
     necessary to ensure compliance with approved applications and 
     this Act.

     SEC. 7. MONITORING OF GRANTEES.

       (a) In General.--The Secretary shall monitor grantees to 
     ensure that the projects conducted under the grants are being 
     carried out in accordance with this Act. Each grantee, and 
     each entity which has received funds from a grant made under 
     this Act, shall make appropriate books, documents, papers, 
     and records available to the Secretary for examination, 
     copying, or mechanical reproduction on or off the premises of 
     the entity upon a reasonable request therefore.
       (b) Withholding, Termination or Recapture.--The Secretary 
     shall, after adequate notice and an opportunity for a 
     hearing, withhold, terminate, or recapture any funds due, or 
     provided to and unused by, an entity under a grant awarded 
     under this Act if the Secretary determines that such entity 
     has not used any such amounts in accordance with the 
     requirements of this Act. The Secretary shall withhold, 
     terminate, or recapture such funds until the Secretary 
     determines that the reason for the withholding, termination, 
     or recapture has been removed and there is reasonable 
     assurance that it will not recur.
       (c) Complaints.--The Secretary shall respond in an 
     expeditious manner to complaints of a substantial or serious 
     nature that an entity has failed to use funds provided under 
     this Act in accordance with the requirements of this Act.

     SEC. 8. REPORTS AND AUDITS.

       (a) Reports.--Not later than 3 months after the termination 
     of a grant under this Act, the grantee shall prepare and 
     submit to the Secretary a report containing such information 
     as may be required by the Secretary.
       (b) Audits.--The Secretary shall annually audit the 
     expenditures of each grantee under this Act from payments 
     received under grants awarded under this Act. Such audits 
     shall be conducted by an entity independent of any agency 
     administering a program funded under this Act and, in so far 
     as practical, in accordance with the Comptroller General's 
     standards for auditing governmental organizations, programs, 
     activities, and functions.

     SEC. 9. EVALUATIONS.

       (a) In General.--Not later than 16 months after the date of 
     enactment of this Act, the Secretary shall enter into a 
     contract with an independent research organization under 
     which such organization, in accordance with this section, 
     conducts an evaluation of the demonstration projects, 
     individually and as a group, conducted under this Act.
       (b) Research Questions.--In evaluating a demonstration 
     project conducted under this Act, the organization described 
     in subsection (a) shall address the following:
       (1) What activities and uses most effectively involve 
     project participants in the activities and uses under this 
     Act (with effectiveness measured, for example, by duration of 
     participation, frequency of participation, and intensity of 
     participation).
       (2) What activities and uses are most effective in 
     preventing or removing violent crime and drug trafficking 
     from a target community.
       (3) What activities and uses are most effective in 
     supporting or promoting economic development in a target 
     community.
       (4) What activities and uses are most effective in 
     increasing coordination and assistance between project 
     participants and with the local police department.
       (5) What activities and uses are most effective in 
     preventing or ending retaliation by perpetrators of crime 
     against project participants.
       (c) Funding.--Of the funds appropriated under this Act, the 
     Secretary shall set aside not less than 1 percent and not 
     more than 3 percent for the evaluations required under this 
     section.
       (d) Report to Congress.--Not later than 6 months after the 
     date on which the last grant under this Act terminates, the 
     Secretary shall prepare and submit to the appropriate 
     committees of the Congress a summary of each evaluation 
     conducted under this section.

     SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to carry out this 
     Act, $10,000,000 for each of the fiscal years 1997, 1998, 
     1999, and 2000.

     SEC. 11. DEFINITIONS.

       As used in this Act:
       (1) Community.--The term ``community'' means a contiguous 
     geographic area within a large urban district or encompassing 
     a small urban or other nonurban area.
       (2) Drug trafficking.--The term ``drug trafficking'' means 
     any offense that could be prosecuted under the Controlled 
     Substances Act (21 U.S.C. 801, et seq.).
       (3) Economic development.--The term ``economic 
     development'' means revitalization and development 
     activities, including 

[[Page S 12736]]
     business, commercial, housing, and employment activities, that benefit 
     a community and its residents.
       (4) Grantee.--The term ``grantee'' means a qualified entity 
     that receives a grant under this Act.
       (5) Project participant.--The term ``project participant'' 
     means any individual or private-sector group in a community 
     participating in any of the activities established under a 
     demonstration grant under this Act.
       (6) Qualified entity.--The term ``qualified entity'' means 
     a non-profit organization described in section 501(c)(3) of 
     the Internal Revenue Code of 1986 and exempt from taxation 
     under the Internal Revenue Code of 1986.
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services.
       (8) Violent Crime.--The term ``violent crime'' has the same 
     meaning as the term ``crime of violence'' in title 18 of the 
     United States Code.
                                                                    ____

                                S. 1216
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,
     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Compassion Credit Act''.

     SEC. 2. 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) is amended by inserting after 
     section 22 the following new section:

     ``SEC. 23. 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 22 the following new item:

``Sec. 23. 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, 
     1995.
                                                                    ____

                                S. 1217
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Medical Volunteer Act''.

     SEC. 2. TORT CLAIM IMMUNITY.

       (a) General Rule.--A health care professional who provides 
     a health care service to a medically underserved person 
     without receiving compensation for such health care service, 
     shall be regarded, for purposes of any medical malpractice 
     claim that may arise in connection with the provision of such 
     service, as an employee of the Federal Government for 
     purposes of the Federal tort claims provisions in title 28, 
     United States Code.
       (b) Compensation.--For purposes of subsection (a), a health 
     care professional shall be deemed to have provided a health 
     care service without compensation only if, prior to 
     furnishing a health care service, the health care 
     professional--
       (1) agrees to furnish the health care service without 
     charge to any person, including any health insurance plan or 
     program under which the recipient is covered; and
       (2) provides the recipient of the health care service with 
     adequate notice (as determined by the Secretary) of the 
     limited liability of the health care professional with 
     respect to the service.

     SEC. 3. PREEMPTION.

       The provisions of this Act shall preempt any State law to 
     the extent that such law is inconsistent with such 
     provisions. The provisions of this Act shall not preempt any 
     State law that provides greater incentives or protections to 
     a health care professional rendering a health care service.

     SEC. 4. DEFINITIONS.

       For purposes of this Act:
       (1) Health care professional.--The term ``health care 
     professional'' means a person who, at the time the person 
     provides a health care service, is licensed or certified by 
     the appropriate authorities for practice in a State to 
     furnish health care services.
       (2) Health care service.--The term ``health care service'' 
     means any medical assistance to the extent it is included in 
     the plan submitted under title XIX of the Social Security Act 
     for the State in which the service was provided.
       (3) Medically underserved person.--The term ``medically 
     underserved person'' means a person who resides in--
       (A) a medically underserved area as defined for purposes of 
     determining a medically underserved population under section 
     330 of the Public Health Service Act (42 U.S.C. 254c); or
       (B) a health professional shortage area as defined in 
     section 332 of such Act (42 U.S.C. 254e);

     and who receives care in a health care facility substantially 
     comparable to any of those designated in the Federally 
     Supported Health Centers Assistance Act (42 U.S.C. 233 et 
     seq.), as shall be determined in regulations promulgated by 
     the Secretary.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of the Department of Health and Human Services.
                                                                    ____

                                S. 1218
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,
     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Community Partnership Act''.

     SEC. 2. 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.

     SEC. 3. INFORMATION CLEARINGHOUSES.

       Of the amount made available under section 2(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 section 2.
     

                          ____________________