[Congressional Record Volume 144, Number 102 (Monday, July 27, 1998)]
[Senate]
[Pages S9067-S9087]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
COMMUNITY OPPORTUNITIES, ACCOUNTABILITY, AND TRAINING AND EDUCATIONAL
SERVICES ACT OF 1998
Mr. HATCH. Mr. President, I ask unanimous consent that the Senate now
proceed to the consideration of Calendar No. 483, S. 2206.
The PRESIDING OFFICER. The clerk will report.
The bill clerk read as follows:
A bill (S. 2206) to amend the Head Start Act, the Low-
Income Home Energy Assistance Act of 1981, and the Community
Services Block Grant to reauthorize and make improvements to
those Acts, to establish demonstration projects that provide
an opportunity for persons with limited means to accumulate
assets, and for other purposes.
The PRESIDING OFFICER. Is there objection to the immediate
consideration of the bill?
There being no objection, the Senate proceeded to consider the bill,
which had been reported from the Committee on Labor and Human
Resources, with an amendment to strike all after the enacting clause
and inserting in lieu thereof the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Community Opportunities,
Accountability, and Training and Educational Services Act of
1998'' or the ``Coats Human Services Reauthorization Act of
1998''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--HEAD START PROGRAMS
Sec. 101. Short title.
Sec. 102. References.
Sec. 103. Statement of purpose.
Sec. 104. Definitions.
Sec. 105. Financial assistance for Head Start programs.
Sec. 106. Authorization of appropriations.
Sec. 107. Allotment of funds.
Sec. 108. Designation of Head Start agencies.
Sec. 109. Quality standards.
Sec. 110. Powers and functions of Head Start agencies.
Sec. 111. Head Start transition.
Sec. 112. Submission of plans to Governors.
Sec. 113. Participation in Head Start programs.
Sec. 114. Early Head Start programs for families with infants and
toddlers.
Sec. 115. Technical assistance and training.
Sec. 116. Staff qualifications and development.
Sec. 117. Research, demonstration, and evaluation.
Sec. 118. Repeal.
TITLE II--COMMUNITY SERVICES BLOCK GRANT PROGRAM
Sec. 201. Reauthorization.
Sec. 202. Conforming amendments.
Sec. 203. Repealers.
TITLE III--LOW-INCOME HOME ENERGY ASSISTANCE
Sec. 301. Authorization.
Sec. 302. Definitions.
Sec. 303. Natural disasters and other emergencies.
Sec. 304. State allotments.
Sec. 305. Administration.
Sec. 306. Payments to States.
Sec. 307. Residential Energy Assistance Challenge option.
Sec. 308. Technical assistance, training, and compliance reviews.
TITLE IV--ASSETS FOR INDEPENDENCE
Sec. 401. Short title.
Sec. 402. Findings.
[[Page S9068]]
Sec. 403. Purposes.
Sec. 404. Definitions.
Sec. 405. Applications.
Sec. 406. Demonstration authority; annual grants.
Sec. 407. Reserve Fund.
Sec. 408. Eligibility for participation.
Sec. 409. Selection of individuals to participate.
Sec. 410. Deposits by qualified entities.
Sec. 411. Local control over demonstration projects.
Sec. 412. Annual progress reports.
Sec. 413. Sanctions.
Sec. 414. Evaluations.
Sec. 415. Treatment of funds.
Sec. 416. Authorization of appropriations.
TITLE I--HEAD START PROGRAMS
SEC. 101. SHORT TITLE.
This title may be cited as the ``Head Start Amendments of
1998''.
SEC. 102. REFERENCES.
Except as otherwise expressly provided, wherever in this
title 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 Head Start Act (42 U.S.C. 9831 et
seq.).
SEC. 103. STATEMENT OF PURPOSE.
The Head Start Act is amended by striking section 636 (42
U.S.C. 9831) and inserting the following:
``SEC. 636. STATEMENT OF PURPOSE.
``It is the purpose of this subchapter to promote school
readiness by enhancing the social and cognitive development
of low-income children through the provision, to low-income
children and their families, of health, educational,
nutritional, social, and other services that are determined
to be necessary, based on family needs assessments.''.
SEC. 104. DEFINITIONS.
Section 637 (42 U.S.C. 9832) is amended--
(1) by redesignating paragraphs (5) through (14) as
paragraphs (7) through (16), respectively;
(2) by redesignating paragraph (3) as paragraph (6) and
inserting such paragraph after paragraph (4);
(3) by striking paragraph (4) and inserting the following:
``(3) The term `child with a disability' means--
``(A) a child with a disability, as defined in section
602(3) of the Individuals with Disabilities Education Act;
and
``(B) an infant or toddler with a disability, as defined in
section 632(5) of such Act.
``(4) The term `delegate agency' means a public, private
nonprofit, or for-profit organization or agency to which a
grantee has delegated all or part of the responsibility of
the grantee for operating a Head Start program.
``(5) The term `family literacy services' means services
that--
``(A) are provided to participants who receive the services
on a voluntary basis;
``(B) are of sufficient intensity, and of sufficient
duration, to make sustainable changes in a family (such as
eliminating or reducing dependence on income-based public
assistance); and
``(C) integrate each of--
``(i) interactive literacy activities between parents and
their children;
``(ii) training for parents on being partners with their
children in learning;
``(iii) parent literacy training, including training that
contributes to economic self-sufficiency; and
``(iv) appropriate instruction for children of parents
receiving the parent literacy training.'';
(4) in paragraph (8) (as redesignated in paragraph (1)), by
adding at the end the following: ``Nothing in this paragraph
shall be construed to require an agency to provide services
to a child who has not reached the age of compulsory school
attendance for more than the number of hours per day
permitted by State law (including regulation) for the
provision of services to such a child.'';
(5) by striking paragraph (14) (as redesignated in
paragraph (1)) and inserting the following:
``(14) The term `migrant or seasonal Head Start program'
means--
``(A) with respect to services for migrant farmworkers, a
Head Start program that serves families who are engaged in
agricultural labor and who have changed their residence from
one geographic location to another in the preceding 2-year
period; and
``(B) with respect to services for seasonal farmworkers, a
Head Start program that serves families who are engaged
primarily in seasonal agricultural labor and who have not
changed their residence to another geographic location in the
preceding 2-year period.''; and
(6) by adding at the end the following:
``(17) The term `reliable and replicable', used with
respect to research, means an objective, valid, scientific
study that--
``(A) includes a rigorously defined sample of subjects,
that is sufficiently large and representative to support the
general conclusions of the study;
``(B) relies on measurements that meet established
standards of reliability and validity;
``(C) is subjected to peer review before the results of the
study are published; and
``(D) discovers effective strategies for enhancing the
development and skills of children.''.
SEC. 105. FINANCIAL ASSISTANCE FOR HEAD START PROGRAMS.
Section 638(1) (42 U.S.C. 9833(1)) is amended--
(1) by striking ``aid the'' and inserting ``enable the'';
and
(2) by striking the semicolon and inserting ``and attain
school readiness;''.
SEC. 106. AUTHORIZATION OF APPROPRIATIONS.
Section 639 (42 U.S.C. 9834) is amended--
(1) in subsection (a), by striking ``1995 through 1998''
and inserting ``1999 through 2003''; and
(2) in subsection (b), by striking all that follows ``shall
make available--'' and inserting the following:
``(1) for each of fiscal years 1999 through 2003 to carry
out activities authorized under section 642A, not more than
$35,000,000 but not less than was made available for such
activities for fiscal year 1998;
``(2) not more than $5,000,000 for each of fiscal years
1999 through 2003 to carry out impact studies under section
649(g); and
``(3) not more than $12,000,000 for fiscal year 1999, and
such sums as may be necessary for each of fiscal years 2000
through 2003, to carry out other research, demonstration, and
evaluation activities, including longitudinal studies, under
section 649.''.
SEC. 107. ALLOTMENT OF FUNDS.
(a) Allotments.--Section 640(a) (42 U.S.C. 9835(a)) is
amended--
(1) in paragraph (2)--
(A) in subparagraph (A)--
(i) by striking ``handicapped children'' and inserting
``children with disabilities'';
(ii) by striking ``migrant Head Start programs'' each place
it appears and inserting ``migrant or seasonal Head Start
programs''; and
(iii) by striking ``1994'' and inserting ``1998'';
(B) in subparagraph (C), by striking ``and'' at the end;
(C) in subparagraph (D), by striking ``related to the
development and implementation of quality improvement plans
under section 641A(d)(2).'' and inserting ``carried out under
paragraph (1), (2), or (3) of section 641A(d) related to
correcting deficiencies and conducting proceedings to
terminate the designation of Head Start agencies; and'';
(D) by inserting after subparagraph (D) the following:
``(E) payments for research, demonstration, and evaluation
activities under section 649.''; and
(E) by adding at the end the following: ``In determining
the need and demand for migrant and seasonal Head Start
programs, and services provided through such programs, the
Secretary shall consult with appropriate entities, including
providers of services for seasonal and migrant Head Start
programs. The Secretary shall, after taking into
consideration the need and demand for migrant and seasonal
Head Start programs, and such services, ensure that there is
an adequate level of such services for the children of
eligible migrant farmworkers before approving an increase in
the allocation provided for children of eligible seasonal
farmworkers. In carrying out this subchapter, the Secretary
shall continue the administrative arrangement responsible for
meeting the needs of migrant or seasonal farmworker and
Indian children and shall assure that appropriate funding is
provided to meet such needs.'';
(2) in paragraph (3)--
(A) in subparagraph (B)--
(i) in clause (ii)--
(I) by striking ``adequate qualified staff'' and inserting
``adequate numbers of qualified staff''; and
(II) by inserting ``and children with disabilities'' before
``, when'';
(ii) in clause (iv), by inserting before the period the
following: ``, and to encourage the staff to continually
improve their skills and expertise by informing the staff of
the availability of Federal and State incentive and loan
forgiveness programs for professional development and by
providing for preferences in the awarding of salary
increases, in excess of cost-of-living allowances, to staff
who obtain additional training or education related to their
responsibilities as employees of a Head Start program or to
advance their careers within the Head Start program'';
(iii) in clause (vi), by striking the period and inserting
``, and are physically accessible to children with
disabilities and their parents.'';
(iv) by redesignating clause (vii) as clause (viii); and
(v) by inserting after clause (vi) the following:
``(vii) Ensuring that such programs have qualified staff
that can promote language skills and literacy growth of
children and that can provide children with a variety of
skills that have been identified, through research that is
reliable and replicable, as predictive of later reading
achievement.'';
(B) in subparagraph (C)--
(i) in clause (i)(I)--
(I) by striking ``of staff'' and inserting ``of classroom
teachers and other staff''; and
(II) by striking ``such staff'' and inserting ``qualified
staff, including recruitment and retention pursuant to
section 648A(a)'';
(ii) by striking clause (ii) and inserting the following:
``(ii) To supplement amounts provided under paragraph
(2)(C) to provide training to classroom teachers and other
staff on proven techniques that promote--
``(I) language and literacy growth; and
``(II) the acquisition of the English language for non-
English background children and families.'';
(iii) in clause (v), by inserting ``accessibility or''
before ``availability'';
(iv) by redesignating clauses (iii), (iv), (v), and (vi) as
clauses (iv), (v), (vi), and (iii), respectively; and
(v) by inserting clause (iii) (as redesignated in clause
(iv) of this subparagraph) after clause (ii); and
(C) in subparagraph (D)(i)(II), by striking ``migrant Head
Start programs'' and inserting ``migrant or seasonal Head
Start programs'';
(3) in paragraph (4)(A), by striking ``1981'' and inserting
``1998'';
(4) in paragraph (5)--
(A) in subparagraph (A), by striking ``subparagraph (B)''
and inserting ``subparagraphs (B) and (D)'';
(B) in subparagraph (B), by inserting before the period the
following: ``and to encourage
[[Page S9069]]
Head Start agencies to collaborate with entities involved in
State and local planning processes (including the State lead
agency administering the financial assistance received under
the Child Care and Development Block Grant Act of 1990 (42
U.S.C. 9858 et seq.) and the entities providing resource and
referral services in the State) in order to better meet the
needs of low-income children and families'';
(C) in subparagraph (C)--
(i) in clause (i)(I), by inserting ``the appropriate
regional office of the Administration for Children and
Families and'' before ``agencies'';
(ii) in clause (iii), by striking ``and'' at the end;
(iii) in clause (iv)--
(I) by striking ``education, and national service
activities,'' and inserting ``education, and community
service activities,'';
(II) by striking ``and activities'' and inserting
``activities''; and
(III) by striking the period and inserting ``, and services
for homeless children; and''; and
(iv) by adding at the end the following:
``(v) include representatives of the State Head Start
Association and local Head Start agencies in unified planning
regarding early care and education services at both the State
and local levels, including collaborative efforts to plan for
the provision of full-working-day, full calendar year early
care and education services for children.'';
(D) by redesignating subparagraph (D) as subparagraph (F);
and
(E) by inserting after subparagraph (C) the following:
``(D) Following the award of collaboration grants described
in subparagraph (B), the Secretary shall provide, from the
reserved sums, supplemental funding for collaboration
grants--
``(i) to States that (in consultation with their State Head
Start Associations) develop statewide, regional, or local
unified plans for early childhood education and child care
that include the participation of Head Start agencies; and
``(ii) to States that engage in other innovative
collaborative initiatives, including plans for collaborative
training and career development initiatives for child care,
early childhood education, and Head Start service managers,
providers, and staff.
``(E)(i) The Secretary shall--
``(I) review on an ongoing basis evidence of barriers to
effective collaboration between Head Start programs and other
Federal child care and early childhood education programs and
resources;
``(II) develop initiatives, including providing additional
training and technical assistance and making regulatory
changes, in necessary cases, to eliminate barriers to the
collaboration; and
``(III) develop a mechanism to resolve administrative and
programmatic conflicts between such programs that would be a
barrier to service providers, parents, or children related to
the provision of unified services and the consolidation of
funding for child care services.
``(ii) In the case of a collaborative activity funded under
this subchapter and another provision of law providing for
Federal child care or early childhood education, the use of
equipment and nonconsumable supplies purchased with funds
made available under this subchapter or such provision shall
not be restricted to children enrolled or otherwise
participating in the program carried out under that
subchapter or provision, during a period in which the
activity is predominantly funded under this subchapter or
such provision.''; and
(5) in paragraph (6)--
(A) by inserting ``(A)'' before ``From''; and
(B) by striking ``3 percent'' and all that follows and
inserting the following: ``7.5 percent for fiscal year 1999,
8 percent for fiscal year 2000, 9 percent for fiscal year
2001, 10 percent for fiscal year 2002, and 10 percent for
fiscal year 2003, of the amount appropriated pursuant to
section 639(a), except as provided in subparagraph (B).
``(B)(i) For any fiscal year for which the Secretary
determines that the amount appropriated under section 639(a)
is not sufficient to permit the Secretary to reserve the
portion described in subparagraph (A) without reducing the
number of children served by Head Start programs or adversely
affecting the quality of Head Start services, relative to the
number of children served and the quality of the services
during the preceding fiscal year, the Secretary may reduce
the percentage of funds required to be reserved for the
portion described in subparagraph (A) for the fiscal year for
which the determination is made, but not below the percentage
required to be so reserved for the preceding fiscal year.
``(ii) For any fiscal year for which the amount
appropriated under section 639(a) is reduced to a level that
requires a lower amount to be made available under this
subchapter to Head Start agencies and entities described in
section 645A, relative to the amount made available to the
agencies and entities for the preceding fiscal year, adjusted
as described in paragraph (3)(A)(ii), the Secretary shall
proportionately reduce--
``(I) the amounts made available to the entities for
programs carried out under section 645A; and
``(II) the amounts made available to Head Start agencies
for Head Start programs.''.
(b) Children With Disabilities.--Section 640(d) (42 U.S.C.
9835(d)) is amended--
(1) by striking ``1982'' and inserting ``1999''; and
(2) by striking ``(as defined in section 602(a) of the
Individuals with Disabilities Education Act)''.
(c) Increased Appropriations.--Section 640(g) (42 U.S.C.
9835(g)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A), by striking the semicolon and
inserting ``, and the performance history of the applicant in
providing services under other Federal programs (other than
the program carried out under this subchapter);'';
(B) in subparagraph (C), by striking ``spoken);'' and
inserting ``spoken, and organizations serving children with
disabilities);'';
(C) in subparagraph (D), by inserting before the semicolon
the following: ``and the extent to which, and manner in
which, the applicant demonstrates the ability to collaborate
and participate with other local community providers of child
care or preschool services to provide full-working-day, full
calendar year services'';
(D) in subparagraph (E), by striking ``program; and'' and
inserting ``program or any other early childhood program;'';
(E) in subparagraph (F), by striking the period and
inserting ``; and''; and
(F) by adding at the end the following:
``(G) the extent to which the applicant proposes to foster
partnerships with other service providers in a manner that
will enhance the resource capacity of the applicant.''; and
(2) by adding at the end the following:
``(4) Notwithstanding subsection (a)(2), after taking into
account the provisions of paragraph (1), the Secretary may
allocate a portion of the remaining additional funds under
subsection (a)(2)(A) for the purpose of increasing funds
available for the activities described in such subsection.''.
(d) Migrant or Seasonal Head Start Programs.--Section
640(l) (42 U.S.C. 9835(l)) is amended--
(1) by striking ``migrant Head Start programs'' each place
it appears and inserting ``migrant or seasonal Head Start
programs''; and
(2) by striking ``migrant families'' and inserting
``migrant or seasonal farmworker families''.
(e) Conforming Amendment.--Section 644(f)(2) (42 U.S.C.
9839(f)(2)) is amended by striking ``640(a)(3)(C)(v)'' and
inserting ``640(a)(3)(C)(vi)''.
SEC. 108. DESIGNATION OF HEAD START AGENCIES.
Section 641 (42 U.S.C. 9836) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by inserting
``or for-profit'' after ``nonprofit''; and
(B) in paragraph (2), by inserting ``(in consultation with
the chief executive officer of the State in which the
community is located)'' after ``the Secretary'';
(2) in subsection (c)--
(A) in paragraph (1)--
(i) by striking ``shall give priority'' and inserting
``shall, in consultation with the chief executive officer of
the State, give priority'';
(ii) by inserting ``or for-profit'' after ``nonprofit'';
and
(iii) by striking ``unless the Secretary makes a finding''
and all that follows and inserting the following: ``unless
the Secretary determines that the agency involved fails to
meet program and financial management requirements,
performance standards described in section 641A(a)(1), or
other requirements established by the Secretary.'';
(B) in paragraph (2), by striking ``shall give priority''
and inserting ``shall, in consultation with the chief
executive officer of the State, give priority''; and
(C) by aligning the margins of paragraphs (2) and (3) with
the margins of paragraph (1);
(3) in subsection (d)--
(A) in the matter preceding paragraph (1), by inserting
after the first sentence the following new sentence: ``In
selecting from among qualified applicants for designation as
a Head Start agency, the Secretary shall give priority to
any qualified agency that functioned as a delegate agency
in the community and carried out a Head Start program that
the Secretary determines has met or exceeded the
performance standards and outcome-based performance
measures described in section 641A.'';
(B) in paragraph (4)(A), by inserting ``(at home and in the
center involved where practicable)'' after ``activities'';
(C) by redesignating paragraphs (7) and (8) as paragraphs
(9) and (10), respectively; and
(D) by inserting after paragraph (6) the following:
``(7) the plan of such applicant to meet the needs of non-
English background children and their families, including
needs related to the acquisition of the English language;
``(8) the plan of such applicant to meet the needs of
children with disabilities;'';
(4) by striking subsection (e) and inserting the following:
``(e) If no agency in the community receives priority
designation under subsection (c), and there is no qualified
applicant in the community, the Secretary shall designate a
qualified agency to carry out the Head Start program in the
community on an interim basis until a qualified applicant
from the community is so designated.''; and
(5) by adding at the end the following:
``(g) If the Secretary determines that a nonprofit agency
and a for-profit agency have submitted applications for
designation of equivalent quality under subsection (d), the
Secretary may give priority to the nonprofit agency.''.
SEC. 109. QUALITY STANDARDS.
(a) Quality Standards.--Section 641A(a) (42 U.S.C.
9836a(a)) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by inserting
``, including minimum levels of overall accomplishment,''
after ``regulation standards'';
(B) in subparagraph (A), by striking ``education,'';
(C) by redesignating subparagraphs (B) through (D) as
subparagraphs (C) through (E), respectively; and
(D) by inserting after subparagraph (A) the following:
``(B)(i) education performance standards to ensure the
school readiness of children participating in a Head Start
program, on completion
[[Page S9070]]
of the Head Start program and prior to entering school; and
``(ii) additional education performance standards to ensure
that the children participating in the program, at a
minimum--
``(I) develop phonemic, print, and numeracy awareness;
``(II) understand and use oral language to communicate
needs, wants, and thoughts;
``(III) understand and use increasingly complex and varied
vocabulary;
``(IV) develop and demonstrate an appreciation of books;
and
``(V) in the case of non-English background children,
progress toward acquisition of the English language.'';
(2) by striking paragraph (2);
(3) by redesignating paragraphs (3) and (4) as paragraphs
(2) and (3), respectively;
(4) in paragraph (2) (as redesignated in paragraph (3))--
(A) in subparagraph (B)(iii), by striking ``child'' and
inserting ``early childhood education and''; and
(B) in subparagraph (C)--
(i) in clause (i)--
(I) by striking ``not later than 1 year after the date of
enactment of this section,''; and
(II) by striking ``section 651(b)'' and all that follows
and inserting ``this subsection; and''; and
(ii) in subclause (ii), by striking ``November 2, 1978''
and inserting ``the date of enactment of the Coats Human
Services Reauthorization Act of 1998''; and
(5) in paragraph (3) (as redesignated in paragraph (3)), by
striking ``to an agency (referred to in this subchapter as
the ``delegate agency'')'' and inserting ``to a delegate
agency''.
(b) Performance Measures.--Section 641A(b) (42 U.S.C.
9836a(b)) is amended--
(1) in the subsection heading, by inserting ``Outcome-
Based'' before ``Performance'';
(2) in paragraph (1)--
(A) by striking ``Not later than 1 year after the date of
enactment of this section, the'' and inserting ``The'';
(B) by striking ``child'' and inserting ``early childhood
education and'';
(C) by striking ``(referred'' and inserting ``, and the
impact of the services provided through the programs to
children and their families (referred'';
(D) by striking ``performance measures'' and inserting
``outcome-based performance measures''; and
(E) by adding at the end the following: ``The performance
measures shall include the performance standards described in
subsection (a)(1)(B)(ii).''; and
(3) in paragraph (2)--
(A) in the paragraph heading, by striking ``Design'' and
inserting ``Characteristics'';
(B) in the matter preceding subparagraph (A), by striking
``shall be designed--'' and inserting ``shall--'';
(C) in subparagraph (A), by striking ``to assess'' and
inserting ``be used to assess the impact of'';
(D) in subparagraph (B)--
(i) by striking ``to''; and
(ii) by striking ``and peer review'' and inserting ``, peer
review, and program evaluation''; and
(E) in subparagraph (C), by inserting ``be developed''
before ``for other''.
(c) Monitoring.--Section 641A(c)(2) (42 U.S.C. 9836a(c)(2))
is amended--
(1) in subparagraph (B), by striking ``; and'' and
inserting a semicolon;
(2) in subparagraph (C)--
(A) by inserting ``(including children with disabilities)''
after ``eligible children''; and
(B) by striking the period and inserting ``; and''; and
(3) by adding at the end the following:
``(D) as part of the reviews of the programs, include a
review and assessment of program effectiveness, as measured
in accordance with the outcome-based performance measures
developed pursuant to subsection (b) and with the performance
standards established pursuant to subparagraphs (A) and (B)
of subsection (a)(1).''.
(d) Termination.--Section 641A(d) (42 U.S.C. 9836a(d)) is
amended--
(1) in paragraph (1)(B), to read as follows:
``(B) with respect to each identified deficiency, require
the agency--
``(i) to correct the deficiency immediately, if the
Secretary finds that the deficiency threatens the health or
safety of staff or program participants or poses a threat to
the integrity of Federal funds;
``(ii) to correct the deficiency not later than 90 days
after the identification of the deficiency if the Secretary
finds, in the discretion of the Secretary, that such a 90-day
period is reasonable, in light of the nature and magnitude of
the deficiency; or
``(iii) in the discretion of the Secretary (taking into
consideration the seriousness of the deficiency and the time
reasonably required to correct the deficiency), to comply
with the requirements of paragraph (2) concerning a quality
improvement plan; and''; and
(2) in paragraph (2)(A), in the matter preceding clause
(i), by striking ``able to correct a deficiency immediately''
and inserting ``required to correct a deficiency immediately
or during a 90-day period under clause (i) or (ii) of
paragraph (1)(B)''.
SEC. 110. POWERS AND FUNCTIONS OF HEAD START AGENCIES.
Section 642 (42 U.S.C. 9837) is amended--
(1) in subsection (a), by inserting ``or for-profit'' after
``nonprofit'';
(2) in subsection (c)--
(A) by inserting ``and collaborate'' after ``coordinate'';
and
(B) by striking ``section 402(g) of the Social Security
Act, and other'' and inserting ``the State program carried
out under the Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858 et seq.), and other early childhood
education and development''; and
(3) in subsection (d)--
(A) in paragraph (1)--
(i) by striking ``shall carry out'' and all that follows
through ``maintain'' and inserting ``shall take steps to
ensure, to the maximum extent possible, that children
maintain'';
(ii) by striking ``developmental'' and inserting
``developmental and educational''; and
(iii) by striking ``to build'' and inserting ``build'';
(B) by striking paragraph (2);
(C) by redesignating paragraphs (3) through (5) as
paragraphs (2) through (4), respectively; and
(D) in subparagraph (A) of paragraph (4) (as redesignated
in subparagraph (C)), by striking ``the Head Start Transition
Project Act (42 U.S.C. 9855 et seq.)'' and inserting
``section 642A''.
SEC. 111. HEAD START TRANSITION.
The Head Start Act (42 U.S.C. 9831 et seq.) is amended by
inserting after section 642 the following:
``SEC. 642A. HEAD START TRANSITION.
``Each Head Start agency shall take steps to coordinate
with the local educational agency serving the community
involved and with schools in which children participating in
a Head Start program operated by such agency will enroll
following such program, including--
``(1) developing and implementing a systematic procedure
for transferring, with parental consent, Head Start program
records for each participating child to the school in which
such child will enroll;
``(2) establishing channels of communication between Head
Start staff and their counterparts in the schools (including
teachers, social workers, and health staff) to facilitate
coordination of programs;
``(3) conducting meetings involving parents, kindergarten
or elementary school teachers, and Head Start program
teachers to discuss the developmental and other needs of
individual children;
``(4) organizing and participating in joint transition-
related training of school staff and Head Start staff;
``(5) developing and implementing a family outreach and
support program in cooperation with entities carrying out
parental involvement efforts under title I of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.);
and
``(6) assisting families, administrators, and teachers in
enhancing continuity in child development between Head Start
services and elementary school classes.''.
SEC. 112. SUBMISSION OF PLANS TO GOVERNORS.
The first sentence of section 643 (42 U.S.C. 9838) is
amended--
(1) by striking ``within 30 days'' and inserting ``within
45 days''; and
(2) by striking ``so disapproved'' and inserting
``disapproved (for reasons other than failure of the program
to comply with State health, safety, and child care laws,
including regulations, applicable to comparable child care
programs within the State)''.
SEC. 113. PARTICIPATION IN HEAD START PROGRAMS.
(a) Regulations.--Section 645(a)(1) (42 U.S.C. 9840(a)(1))
is amended--
(1) in subparagraph (B), by striking ``that programs'' and
inserting ``that (i) programs''; and
(2) by striking the period at the end of subparagraph (B)
and inserting the following: ``, and (ii) a child who has
been determined to meet the low-income criteria and who is
participating in a Head Start program in a program year shall
be considered to continue to meet the low-income criteria
through the end of the succeeding program year. In
determining, for purposes of this paragraph, whether a child
who has applied for enrollment in a Head Start program meets
the low-income criteria, an entity may consider evidence of
family income during the 12 months preceding the month in
which the application is submitted, or during the calendar
year preceding the calendar year in which the application is
submitted, whichever more accurately reflects the needs of
the family at the time of application.''.
(b) Sliding Fee Scale.--Section 645(b) (42 U.S.C. 9840(b))
is amended by adding at the end the following: ``A Head Start
agency that provides a Head Start program with full-working-
day services in collaboration with other agencies or entities
may collect a family copayment to support extended day
services if a copayment is required in conjunction with the
collaborative. The copayment charged to families receiving
services through the Head Start program shall not exceed the
copayment charged to families with similar incomes and
circumstances who are receiving the services through
participation in a program carried out by another agency or
entity.''.
(c) Continuous Recruitment and Acceptance of
Applications.--Section 645(c) (42 U.S.C. 9840(c)) is amended
by adding at the end the following: ``Each Head Start program
operated in a community shall be permitted to recruit and
accept applications for enrollment of children throughout the
year.''.
SEC. 114. EARLY HEAD START PROGRAMS FOR FAMILIES WITH INFANTS
AND TODDLERS.
Section 645A (42 U.S.C. 9840a) is amended--
(1) in the section heading, by inserting ``early head
start'' before ``programs for'';
(2) in subsection (a)--
(A) by striking ``for--'' and all that follows through
``programs providing'' and inserting ``for programs
providing'';
(B) by striking ``; and'' and inserting a period; and
[[Page S9071]]
(C) by striking paragraph (2);
(3) in subsection (b)(5), by inserting ``(including
programs for infants and toddlers with disabilities)'' after
``community'';
(4) in subsection (c)--
(A) in the matter preceding paragraph (1), by striking
``subsection (a)(1)'' and inserting ``subsection (a)''; and
(B) in paragraph (2), by striking ``3 (or under'' and all
that follows and inserting ``3;'';
(5) in subsection (d)--
(A) by striking paragraph (2); and
(B) by redesignating paragraph (3) as paragraph (2);
(6) by striking subsection (e);
(7) by redesignating subsections (f) and (g) as subsections
(e) and (f), respectively;
(8) in subsection (e) (as redesignated in paragraph (7))--
(A) in the subsection heading, by striking ``Other''; and
(B) by striking ``From the balance remaining of the portion
specified in section 640(a)(6), after making grants to the
eligible entities specified in subsection (e),'' and
inserting ``From the portion specified in section
640(a)(6),''; and
(9) by striking subsection (h) and inserting the following:
``(g) Monitoring, Training, Technical Assistance, and
Evaluation.--In order to ensure the successful operation of
programs assisted under this section, the Secretary shall use
funds from the portion specified in section 640(a)(6) to
monitor the operation of such programs, evaluate their
effectiveness, and provide training and technical assistance
tailored to the particular needs of such programs.
``(h) Training and Technical Assistance Account.--
``(1) In general.--Of the amount made available to carry
out this section for any fiscal year, not less than 5 percent
and not more than 10 percent shall be reserved to fund a
training and technical assistance account.
``(2) Activities.--Funds in the account may be used by the
Secretary for purposes including--
``(A) making grants to, and entering into contracts with,
organizations with specialized expertise relating to infants,
toddlers, and families and the capacity needed to provide
direction and support to a national training and technical
assistance system, in order to provide such direction and
support;
``(B) providing ongoing training and technical assistance
for regional and program staff charged with monitoring and
overseeing the administration of the program carried out
under this section;
``(C) providing ongoing training and technical assistance
for recipients of grants under subsection (a) and support and
program planning and implementation assistance for new
recipients of such grants; and
``(D) providing professional development and personnel
enhancement activities, including the provision of funds to
recipients of grants under subsection (a) for the recruitment
and retention of qualified staff with an appropriate level of
education and experience.''.
SEC. 115. TECHNICAL ASSISTANCE AND TRAINING.
(a) Full-Working-Day, Full Calendar Year Services.--Section
648(b) (42 U.S.C. 9843(b)) is amended--
(1) in paragraph (1), by striking ``; and'' and inserting a
semicolon;
(2) in paragraph (2), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(3) ensure the provision of technical assistance to
assist Head Start agencies, entities carrying out other child
care and early childhood programs, communities, and States in
collaborative efforts to provide quality full-working-day,
full calendar year services, including technical assistance
related to identifying and assisting in resolving barriers to
collaboration.''.
(b) Allocating Resources.--Section 648(c) (42 U.S.C.
9843(c)) is amended--
(1) in paragraph (4)--
(A) by striking ``developing'' and inserting ``developing
and implementing''; and
(B) by striking ``a longer day;'' and inserting the
following: ``the day, and assist the agencies and programs in
expediting the sharing of information about innovative models
for providing full-working-day, full calendar year services
for children;'';
(2) in paragraph (7), by striking ``; and'' and inserting a
semicolon;
(3) in paragraph (8), by striking the period and inserting
``; and''; and
(4) by adding at the end the following:
``(9) assist Head Start agencies in--
``(A) ensuring the school readiness of children; and
``(B) meeting the education performance standards described
in this subchapter.''.
(c) Services.--Section 648(e) (42 U.S.C. 9843(e)) is
amended by inserting ``(including services to promote the
acquisition of the English language)'' after ``non-English
language background children''.
SEC. 116. STAFF QUALIFICATIONS AND DEVELOPMENT.
Section 648A(a) (42 U.S.C. 9843a(a)) is amended--
(1) in paragraph (1)--
(A) by redesignating subparagraphs (B) through (D) as
clauses (ii) through (iv), respectively;
(B) by striking ``(A)'' and inserting ``(B)(i)''; and
(C) by inserting before subparagraph (B) (as redesignated
in subparagraph (B) of this paragraph) the following:
``(A) demonstrated competency to perform functions that
include--
``(i) planning and implementing learning experiences that
advance the intellectual and physical development of
children, including improving the readiness of children for
school by developing their literacy and phonemic, print, and
numeracy awareness, their understanding and use of oral
language, their understanding and use of increasingly complex
and varied vocabulary, their appreciation of books, and their
problem solving abilities;
``(ii) establishing and maintaining a safe, healthy
learning environment;
``(iii) supporting the social and emotional development of
children; and
``(iv) encouraging the involvement of the families of the
children in a Head Start program and supporting the
development of relationships between children and their
families; and''; and
(2) by striking paragraph (2) and inserting the following:
``(2) Waiver.--On request, the Secretary shall grant a 180-
day waiver of the requirements of paragraph (1)(B), for a
Head Start agency that can demonstrate that the agency has
unsuccessfully attempted to recruit an individual who has a
credential, certificate, or degree described in paragraph
(1)(B), with respect to an individual who--
``(A) is enrolled in a program that grants any such
credential, certificate, or degree; and
``(B) will receive such credential, certificate, or degree
under the terms of such program not later than 180 days after
beginning employment as a teacher with such agency.''.
SEC. 117. RESEARCH, DEMONSTRATION, AND EVALUATION.
(a) Comparative Studies.--Section 649(d) (42 U.S.C.
9844(d)) is amended--
(1) in paragraph (6), by striking ``; and'' and inserting a
semicolon;
(2) in paragraph (7), by striking the period and inserting
``; and''; and
(3) by adding at the end the following:
``(8) study the experiences of small, medium, and large
States with Head Start programs in order to permit
comparisons of children participating in the programs with
eligible children who did not participate in the programs,
which study--
``(A) may include the use of a data set that existed prior
to the initiation of the study; and
``(B) shall compare the educational achievement, social
adaptation, and health status of the participating children
and the eligible nonparticipating children.
The Secretary shall ensure that an appropriate entity carries
out a study described in paragraph (8), and prepares and
submits to the appropriate committees of Congress a report
containing the results of the study, not later than September
30, 2002.''.
(b) National Research.--Section 649 (42 U.S.C. 9844) is
amended by adding at the end the following:
``(g) National Head Start Impact Research.--
``(1) Expert panel.--
``(A) In general.--The Secretary shall appoint an
independent panel consisting of experts in program evaluation
and research, education, and early childhood programs--
``(i) to review, and make recommendations on, the design
and plan for the research (whether conducted as a single
assessment or as a series of assessments), described in
paragraph (2), within 1 year after the date of enactment of
the Coats Human Services Reauthorization Act of 1998;
``(ii) to maintain and advise the Secretary regarding the
progress of the research; and
``(iii) to comment, if the panel so desires, on the interim
and final research reports submitted under paragraph (7).
``(B) Travel expenses.--The members of the panel shall not
receive compensation for the performance of services for the
panel, but shall be allowed travel expenses, including per
diem in lieu of subsistence, at rates authorized for
employees of agencies under subchapter I of chapter 57 of
title 5, United States Code, while away from their homes or
regular places of business in the performance of services for
the panel. Notwithstanding section 1342 of title 31, United
States Code, the Secretary may accept the voluntary and
uncompensated services of members of the panel.
``(2) General authority.--After reviewing the
recommendations of the expert panel, the Secretary shall
enter into a grant, contract, or cooperative agreement with
an organization to conduct independent research that provides
a national analysis of the impact of Head Start programs. The
Secretary shall ensure that the organization shall have
expertise in program evaluation, and research, education, and
early childhood programs.
``(3) Designs and techniques.--The Secretary shall ensure
that the research uses rigorous methodological designs and
techniques (based on the recommendations of the expert
panel), including longitudinal designs, control groups,
nationally recognized standardized measures, and random
selection and assignment, as appropriate. The Secretary may
provide that the research shall be conducted as a single
comprehensive assessment or as a group of coordinated
assessments designed to provide, when taken together, a
national analysis of the impact of Head Start programs.
``(4) Programs.--The Secretary shall ensure that the
research focuses primarily on Head Start programs that
operate in the 50 States, the Commonwealth of Puerto Rico, or
the District of Columbia and that do not specifically target
special populations.
``(5) Analysis.--The Secretary shall ensure that the
organization conducting the research--
``(A)(i) determines if, overall, the Head Start programs
have impacts consistent with their primary goal of increasing
the social competence of children, by increasing the everyday
effectiveness of the children in dealing with their present
environments and future responsibilities, and increasing
their school readiness;
[[Page S9072]]
``(ii) considers whether the Head Start programs--
``(I) enhance the growth and development of children in
cognitive, emotional, and physical health areas;
``(II) strengthen families as the primary nurturers of
their children; and
``(III) ensure that children attain school readiness; and
``(iii) examines--
``(I) the impact of the Head Start programs on increasing
access of children to such services as educational, health,
and nutritional services, and linking children and families
to needed community services; and
``(II) how receipt of services described in subclause (I)
enriches the lives of children and families participating in
Head Start programs;
``(B) examines the impact of Head Start programs on
participants on the date the participants leave Head Start
programs, at the end of kindergarten (in public or private
school), and at the end of first grade (in public or private
school), by examining a variety of factors, including
educational achievement, referrals for special education or
remedial course work, and absenteeism;
``(C) makes use of random selection from the population of
all Head Start programs described in paragraph (4) in
selecting programs for inclusion in the research; and
``(D) includes comparisons of individuals who participate
in Head Start programs with control groups (including
comparison groups) composed of--
``(i) individuals who participate in other public or
private early childhood programs (such as public or private
preschool programs and day care); and
``(ii) individuals who do not participate in any other
early childhood program.
``(6) Consideration of sources of variation.--In designing
the research, the Secretary shall, to the extent practicable,
consider addressing possible sources of variation in impact
of Head Start programs, including variations in impact
related to such factors as--
``(A) Head Start program operations;
``(B) Head Start program quality;
``(C) the length of time a child attends a Head Start
program;
``(D) the age of the child on entering the Head Start
program;
``(E) the type of organization (such as a local educational
agency or a community action agency) providing services for
the Head Start program;
``(F) the number of hours and days of program operation of
the Head Start program (such as whether the program is a
full-working-day, full calendar year program, a part-day
program, or a part-year program); and
``(G) other characteristics and features of the Head Start
program (such as geographic location, location in an urban or
a rural service area, or participant characteristics), as
appropriate.
``(7) Reports.--
``(A) Submission of interim reports.--The organization
shall prepare and submit to the Secretary two interim reports
on the research. The first interim report shall describe the
design of the research, and the rationale for the design,
including a description of how potential sources of variation
in impact of Head Start programs have been considered in
designing the research. The second interim report shall
describe the status of the research and preliminary findings
of the research, as appropriate.
``(B) Submission of final report.--The organization shall
prepare and submit to the Secretary a final report containing
the findings of the research.
``(C) Transmittal of reports to congress.--
``(i) In general.--The Secretary shall transmit, to the
committees described in clause (ii), the first interim report
by September 30, 1999, the second interim report by September
30, 2001, and the final report by September 30, 2003.
``(ii) Committees.--The committees referred to in clause
(i) are the Committee on Education and the Workforce of the
House of Representatives and the Committee on Labor and Human
Resources of the Senate.
``(8) Definition.--In this subsection, the term `impact',
used with respect to a Head Start program, means a difference
in an outcome for a participant in the program that would not
have occurred without the participation in the program.
``(h) Quality Improvement Study.--
``(1) Study.--The Secretary shall conduct a study regarding
the use and effects of use of the quality improvement funds
made available under section 640(a)(3) of the Head Start Act
(42 U.S.C. 9835(a)(3)) since fiscal year 1991.
``(2) Report.--The Secretary shall prepare and submit to
Congress not later than September 2000 a report containing
the results of the study, including--
``(A) the types of activities funded with the quality
improvement funds;
``(B) the extent to which the use of the quality
improvement funds has accomplished the goals of section
640(a)(3)(B);
``(C) the effect of use of the quality improvement funds on
teacher training, salaries, benefits, recruitment, and
retention; and
``(D) the effect of use of the quality improvement funds on
the cognitive and social development of children receiving
services under this subchapter.''.
SEC. 118. REPEAL.
The Head Start Transition Project Act (42 U.S.C. 9855 et
seq.) is repealed.
TITLE II--COMMUNITY SERVICES BLOCK GRANT PROGRAM
SEC. 201. REAUTHORIZATION.
The Community Services Block Grant Act (42 U.S.C. 9901 et
seq.) is amended to read as follows:
``Subtitle B--Community Services Block Grant Program
``SEC. 671. SHORT TITLE.
``This subtitle may be cited as the `Community Services
Block Grant Act'.
``SEC. 672. PURPOSES AND GOALS.
``The purposes of this subtitle are--
``(1) to provide financial assistance to States and local
communities, working through a network of community action
agencies and other neighborhood-based organizations, for the
reduction of poverty, the revitalization of low-income
communities, and the empowerment of low-income families and
individuals in rural and urban areas to become fully self-
sufficient (particularly families who are attempting to
transition off a State program carried out under part A of
title IV of the Social Security Act (42 U.S.C. 601 et seq.));
and
``(2) to accomplish the goals described in paragraph (1)
through--
``(A) the strengthening of community capabilities for
planning and coordinating the use of a broad range of
Federal, State, and other assistance related to the
elimination of poverty, so that this assistance can be used
in a manner responsive to local needs and conditions;
``(B) the organization of a range of services related to
the needs of low-income families and individuals, so that
these services may have a measurable and potentially major
impact on the causes of poverty in the community and may help
the families and individuals to achieve self-sufficiency;
``(C) the use of innovative and effective community-based
approaches to attacking the causes and effects of poverty and
of community breakdown;
``(D) the development and implementation of all programs
designated to serve low-income communities and groups with
the maximum feasible participation of residents of the
communities and members of the groups served, so as to best
stimulate and take full advantage of capabilities for self-
advancement and assure that the programs are otherwise
meaningful to the intended beneficiaries of the programs; and
``(E) the broadening of the resource base of programs
directed to the elimination of poverty.
``SEC. 673. DEFINITIONS.
``In this subtitle:
``(1) Eligible entity.--The term `eligible entity' means an
entity--
``(A) that is an eligible entity described in section
673(1) (as in effect on the day before the date of enactment
of the Coats Human Services Reauthorization Act of 1998) as
of the day before such date of enactment or is designated by
the process described in section 676A (including an
organization serving migrant or seasonal farmworkers that is
so described or designated); and
``(B) that has a tripartite board or other mechanism
described in subsection (a) or (b), as appropriate, of
section 676B.
``(2) Poverty line.--The term `poverty line' means the
official poverty line defined by the Office of Management and
Budget based on Bureau of the Census data. The Secretary
shall revise annually (or at any shorter interval the
Secretary determines to be feasible and desirable) the
poverty line, which shall be used as a criterion of
eligibility in the community services block grant program
established under this subtitle. The required revision shall
be accomplished by multiplying the official poverty line by
the percentage change in the Consumer Price Index for All
Urban Consumers during the annual or other interval
immediately preceding the time at which the revision is made.
Whenever a State determines that it serves the objectives of
the block grant program established under this subtitle, the
State may revise the poverty line to not to exceed 125
percent of the official poverty line otherwise applicable
under this paragraph.
``(3) Private, nonprofit organization.--The term `private,
nonprofit organization' includes a faith-based organization,
to which the provisions of section 679 shall apply.
``(4) Secretary.--The term `Secretary' means the Secretary
of Health and Human Services.
``(5) State.--The term `State' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, Guam, the United States Virgin Islands, American Samoa,
the Commonwealth of the Northern Mariana Islands, and the
combined Freely Associated States.
``SEC. 674. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated
$625,000,000 for fiscal year 1999 and such sums as may be
necessary for each of fiscal years 2000 through 2003 to carry
out the provisions of this subtitle (other than sections 681
and 682).
``(b) Reservations.--Of the amounts appropriated under
subsection (a) for each fiscal year, the Secretary shall
reserve--
``(1) \1/2\ of 1 percent for carrying out section 675A
(relating to payments for territories);
``(2) not less than \1/2\ of 1 percent and not more than 1
percent for activities authorized in section 678A (relating
to training and technical assistance); and
``(3) 9 percent for carrying out section 680 (relating to
discretionary activities).
``SEC. 675. ESTABLISHMENT OF BLOCK GRANT PROGRAM.
``The Secretary is authorized to establish a community
services block grant program and make grants through the
program to States to ameliorate the causes of poverty in
communities within the States.
``SEC. 675A. DISTRIBUTION TO TERRITORIES.
``(a) Apportionment.--The Secretary shall apportion the
amount reserved under section 674(b)(1) for each fiscal year
on the basis of need among Guam, American Samoa, the United
States Virgin Islands, the Commonwealth of the
[[Page S9073]]
Northern Mariana Islands, and the combined Freely Associated
States.
``(b) Application.--Each jurisdiction to which subsection
(a) applies may receive a grant under this subtitle for the
amount apportioned under subsection (a) on submitting to the
Secretary, and obtaining approval of, an application,
containing provisions that describe the programs for which
assistance is sought under this subtitle, that is prepared in
accordance with, and contains the information described in,
section 676.
``SEC. 675B. ALLOTMENTS AND PAYMENTS TO STATES.
``(a) Allotments in General.--The Secretary shall, from the
amount appropriated under section 674(a) for each fiscal year
that remains after the Secretary makes the reservations
required in section 674(b), allot to each State (subject to
section 677) an amount that bears the same ratio to such
remaining amount as the amount received by the State for
fiscal year 1981 under section 221 of the Economic
Opportunity Act of 1964 bore to the total amount received by
all States for fiscal year 1981 under such section, except
that no State shall receive less than \1/4\ of 1 percent of
the amount appropriated under section 674(a) for such fiscal
year.
``(b) Allotments in Years With Greater Available Funds.--
``(1) Minimum allotments.--Subject to paragraphs (2) and
(3), if the amount appropriated under section 674(a) for a
fiscal year that remains after the Secretary makes the
reservations required in section 674(b) exceeds $345,000,000,
the Secretary shall allot to each State not less than \1/2\
of 1 percent of the amount appropriated under section 674(a)
for such fiscal year.
``(2) Maintenance of fiscal year 1990 levels.--Paragraph
(1) shall not apply with respect to a fiscal year if the
amount allotted under subsection (a) to any State for that
year is less than the amount allotted under section 674(a)(1)
(as in effect on September 30, 1989) to such State for fiscal
year 1990.
``(3) Maximum allotments.--The amount allotted under
paragraph (1) to a State for a fiscal year shall be reduced,
if necessary, so that the aggregate amount allotted to such
State under such paragraph and subsection (a) does not exceed
140 percent of the aggregate amount allotted to such State
under the corresponding provisions of this subtitle for the
preceding fiscal year.
``(c) Payments.--The Secretary shall make grants to
eligible States for the allotments described in subsections
(a) and (b). The Secretary shall make payments for the grants
in accordance with section 6503(a) of title 31, United States
Code.
``(d) Definition.--For purposes of this section, the term
`State' does not include Guam, American Samoa, the United
States Virgin Islands, the Commonwealth of the Northern
Mariana Islands, and the Freely Associated States.
``SEC. 675C. USES OF FUNDS.
``(a) Grants to Eligible Entities and Other
Organizations.--
``(1) In general.--Not less than 90 percent of the funds
made available to a State under section 675A or 675B shall be
used by the State to make grants for the purposes described
in section 672 to eligible entities.
``(2) Obligational authority.--Funds distributed to
eligible entities through grants made in accordance with
paragraph (1) for a fiscal year shall be available for
obligation during that fiscal year and the succeeding fiscal
year, in accordance with paragraph (3).
``(3) Recapture and redistribution of unobligated funds.--
``(A) Amount.--Beginning on October 1, 2000, a State may
recapture and redistribute funds distributed to an eligible
entity through a grant made under paragraph (1) that are
unobligated at the end of a fiscal year if such unobligated
funds exceed 20 percent of the amount so distributed to such
eligible entity for such fiscal year.
``(B) Redistribution.--In redistributing funds recaptured
in accordance with this paragraph, States shall redistribute
such funds to an eligible entity, or require the original
recipient of the funds to redistribute the funds to a
private, nonprofit organization, located within the community
served by the original recipient of the funds, for activities
consistent with the purposes of this subtitle.
``(b) Other Activities.--
``(1) Use of remainder.--If a State uses less than 100
percent of payments from a grant under section 675A, or the
State allotment under section 675B, to make grants under
subsection (a), the State shall use the remainder of such
payments (subject to paragraph (2)) for--
``(A) providing training and technical assistance to those
entities in need of such training and assistance;
``(B) coordinating State-operated programs and services
targeted to low-income children and families with services
provided by eligible entities and other organizations funded
under this subtitle, including detailing appropriate
employees of State or local agencies to entities funded under
this subtitle, to ensure increased access to services
provided by such State or local agencies;
``(C) supporting statewide coordination and communication
among eligible entities;
``(D) analyzing the distribution of funds made available
under this subtitle within the State to determine if such
funds have been targeted to the areas of greatest need;
``(E) supporting asset-building programs for low-income
individuals, such as programs supporting individual
development accounts;
``(F) supporting innovative programs and activities
conducted by community action agencies or other neighborhood-
based organizations to eliminate poverty, promote self-
sufficiency, and promote community revitalization; and
``(G) supporting other activities, consistent with the
purposes of this subtitle.
``(2) Administrative cap.--No State may spend more than the
greater of $55,000, or 5 percent, of the State allotment for
administrative expenses, including monitoring activities. The
cost of activities conducted under paragraph (1)(A) shall not
be considered to be administrative expenses.
``SEC. 676. APPLICATION AND PLAN.
``(a) Designation of Lead Agency.--
``(1) Designation.--The chief executive officer of a State
desiring to receive an allotment under this subtitle shall
designate, in an application submitted to the Secretary under
subsection (b), an appropriate State agency that complies
with the requirements of paragraph (2) to act as a lead
agency for purposes of carrying out State activities under
this subtitle.
``(2) Duties.--The lead agency designated in accordance
with paragraph (1) shall--
``(A) develop the State plan to be submitted to the
Secretary under subsection (b);
``(B) in conjunction with the development of the State plan
as required under subsection (b), hold at least one hearing
in the State with sufficient time, and statewide distribution
of notice of such hearing, to provide to the public an
opportunity to comment on the proposed use and distribution
of funds to be provided through the allotment for the period
covered by the State plan; and
``(C) conduct reviews of eligible entities under section
678B.
``(3) Legislative hearing.--In order to be eligible to
receive an allotment under this subtitle, the State shall
hold at least one legislative hearing every 3 years in
conjunction with the development of the State plan.
``(b) State Application and Plan.--Beginning with fiscal
year 2000, to be eligible to receive an allotment under this
subtitle, a State shall prepare and submit to the Secretary
an application and State plan covering a period of not less
than 1 fiscal year and not more than 2 fiscal years. The plan
shall be submitted not later than 30 days prior to the
beginning of the first fiscal year covered by the plan, and
shall contain such information as the Secretary shall
require, including--
``(1) an assurance that funds made available through the
allotment will be used to support activities that are
designed to assist low-income families and individuals,
including homeless families and individuals, migrant or
seasonal farmworkers, and elderly low-income individuals and
families, and a description of how such activities will
enable the families and individuals--
``(A) to remove obstacles and solve problems that block the
achievement of self-sufficiency;
``(B) to secure and retain meaningful employment;
``(C) to attain an adequate education;
``(D) to make better use of available income;
``(E) to obtain and maintain adequate housing and a
suitable living environment;
``(F) to obtain emergency assistance through loans, grants,
or other means to meet immediate and urgent individual and
family needs;
``(G) to achieve greater participation in the affairs of
the community involved; and
``(H) to make more effective use of other programs related
to the purposes of this subtitle (including State welfare
reform efforts);
``(2) a description of how the State intends to use
discretionary funds made available from the remainder of the
allotment described in section 675C(b) in accordance with
this subtitle, including a description of how the State will
support innovative community and neighborhood-based
initiatives related to the purposes of this subtitle;
``(3) based on information provided by eligible entities in
the State, a description of--
``(A) the service delivery system, for services provided or
coordinated with funds made available through the allotment,
targeted to low-income individuals and families in
communities within the State;
``(B) how linkages will be developed to fill identified
gaps in the services, through the provision of information,
referrals, case management, and followup consultations;
``(C) how funds made available through the allotment will
be coordinated with other public and private resources; and
``(D) how the funds will be used to support innovative
community and neighborhood-based initiatives related to the
purposes of this subtitle;
``(4) an assurance that the State will provide, on an
emergency basis, for the provision of such supplies and
services, nutritious foods, and related services, as may be
necessary to counteract conditions of starvation and
malnutrition among low-income individuals;
``(5) an assurance that the State will coordinate, and
establish linkages between, governmental and other social
services programs to assure the effective delivery of such
services to low-income individuals;
``(6) an assurance that the State will ensure coordination
between antipoverty programs in each community, and ensure,
where appropriate, that emergency energy crisis intervention
programs under title XXVI (relating to low-income home energy
assistance) are conducted in such community;
``(7) an assurance that the State will permit and cooperate
with Federal investigations undertaken in accordance with
section 678D;
``(8) an assurance that any eligible entity that received
funding in the previous fiscal year under this subtitle will
not have its funding terminated under this subtitle, or
reduced below the proportional share of funding the entity
received in the previous fiscal year unless, after providing
notice and an opportunity for a hearing on the record, the
State determines that cause exists for such termination or
such reduction, subject to review by the Secretary as
provided in section 678C(b);
[[Page S9074]]
``(9) an assurance that the State will, to the maximum
extent possible, coordinate programs with and form
partnerships with other organizations serving low-income
residents of the communities and members of the groups served
by the State, including faith-based organizations, charitable
groups, and community organizations;
``(10) an assurance that the State will require each
eligible entity to establish procedures under which a low-
income individual, community organization, or faith-based
organization, or representative of low-income individuals
that considers its organization, or low-income individuals,
to be inadequately represented on the board (or other
mechanism) of the eligible entity to petition for adequate
representation;
``(11) an assurance that the State will secure from each
eligible entity, as a condition to receipt of funding by the
entity under this subtitle for a program, a community action
plan (which shall be submitted to the Secretary, at the
request of the Secretary, with the State plan) that includes
a community-needs assessment for the community served, which
may be coordinated with community-needs assessments conducted
for other programs;
``(12) an assurance that the State and all eligible
entities in the State will, not later than fiscal year 2002,
participate in the Results Oriented Management and
Accountability System, any other performance measure system
established by the Secretary under section 678E(b), or an
alternative system for measuring performance and results that
meets the requirements of that section, and a description of
outcome measures to be used to measure eligible entity
performance in promoting self-sufficiency, family stability,
and community revitalization; and
``(13) information describing how the State will carry out
the assurances described in this subsection.
``(c) Determinations.--For purposes of making a
determination in accordance with subsection (b)(8) with
respect to--
``(1) a funding reduction, the term `cause' includes--
``(A) a statewide redistribution of funds provided under
this subtitle to respond to--
``(i) the results of the most recently available census or
other appropriate data;
``(ii) the designation of a new eligible entity; or
``(iii) severe economic dislocation; or
``(B) the failure of an eligible entity to comply with the
terms of an agreement to provide services under this
subtitle; and
``(2) a termination, the term `cause' includes the material
failure of an eligible entity to comply with the terms of
such an agreement and the State plan to provide services
under this subtitle or the consistent failure of the entity
to achieve performance measures as determined by the State.
``(d) Procedures.--The Secretary may prescribe procedures
relating to the implementation of this section only for the
purpose of assessing the effectiveness of eligible entities
in carrying out the purposes of this subtitle.
``(e) Revisions and Inspection.--
``(1) Revisions.--The chief executive officer of each State
may revise any plan prepared under this section and shall
submit the revised plan to the Secretary.
``(2) Public inspection.--Each plan or revised plan
prepared under this section shall be made available for
public inspection within the State in such a manner as will
facilitate review of, and comment on, the plan.
``(f) Fiscal Year 1999.--For fiscal year 2000, to be
eligible to receive an allotment under this subtitle, a State
shall prepare and submit to the Secretary an application and
State plan in accordance with the provisions of this subtitle
(as in effect on the day before the date of enactment of the
Coats Human Services Reauthorization Act of 1998), rather
than the provisions of subsections (a) through (c) relating
to applications and plans.
``SEC. 676A. DESIGNATION AND REDESIGNATION OF ELIGIBLE
ENTITIES IN UNSERVED AREAS.
``(a) Qualified Organization in or Near Area.--
``(1) In general.--If any geographic area of a State is
not, or ceases to be, served by an eligible entity under this
subtitle, and if the chief executive officer of the State
decides to serve such area, the chief executive officer may
solicit applications from, and designate as an eligible
entity, one or more--
``(A) private nonprofit organizations geographically
located in the unserved area that meet the requirements of
this subtitle; or
``(B) private nonprofit organizations (which may include
eligible entities) located in an area contiguous to or within
reasonable proximity of the unserved area that are already
providing related services in the unserved area.
``(2) Requirement.--In order to serve as the eligible
entity for the area, an entity described in paragraph (1)(B)
shall agree to add additional members to the board of the
entity to ensure adequate representation--
``(A) in each of the three required categories described in
subparagraphs (A), (B), and (C) of section 676B(a)(2), by
members that reside in the community comprised by the
unserved area; and
``(B) in the category described in section 676B(a)(2)(B),
by members that reside in the neighborhood served.
``(b) Special Consideration.--In designating an eligible
entity under subsection (a), the chief executive officer
shall grant the designation to an organization of
demonstrated effectiveness in meeting the goals and purposes
of this subtitle and may give priority, in granting the
designation, to local entities that are providing services in
the unserved area, consistent with the needs identified by a
community-needs assessment.
``(c) No Qualified Organization in or Near Area.--If no
private, nonprofit organization is identified or determined
to be qualified under subsection (a) to serve the unserved
area as an eligible entity the chief executive officer may
designate an appropriate political subdivision of the State
to serve as an eligible entity for the area. In order to
serve as the eligible entity for that area, the political
subdivision shall have a board or other mechanism as required
in section 676B(b).
``SEC. 676B. TRIPARTITE BOARDS.
``(a) Private Nonprofit Entities.--
``(1) Board.--In order for a private, nonprofit entity to
be considered to be an eligible entity for purposes of
section 673(1), the entity shall administer the community
services block grant program through a tripartite board
described in paragraph (2) that fully participates in the
development, planning, and implementation of the program to
serve low-income communities.
``(2) Selection and composition of board.--The members of
the board referred to in paragraph (1) shall be selected by
the entity and the board shall be composed so as to assure
that--
``(A) \1/3\ of the members of the board are elected public
officials, holding office on the date of selection, or their
representatives, except that if the number of elected
officials reasonably available and willing to serve on the
board is less than \1/3\ of the membership of the board,
membership on the board of appointive public officials or
their representatives may be counted in meeting such \1/3\
requirement;
``(B) not fewer than \1/3\ of the members are persons
chosen in accordance with democratic selection procedures
adequate to assure that these members are representative of
low-income individuals and families in the neighborhood
served;
``(C) the remainder of the members are officials or members
of business, industry, labor, religious, law enforcement,
education, or other major groups and interests in the
community served; and
``(D)(i) each member resides in the community; and
``(ii) each representative of low-income individuals and
families selected to represent a specific neighborhood within
a community under this paragraph resides in the neighborhood
represented by the member.
``(b) Public Organizations.--In order for a public
organization to be considered to be an eligible entity for
purposes of section 673(1), the entity shall administer the
community services block grant program through--
``(1) a tripartite board, which shall have members selected
by the organization and shall be composed so as to assure
that not fewer than \1/3\ of the members are persons chosen
in accordance with democratic selection procedures adequate
to assure that these members--
``(A) are representative of low-income individuals and
families in the neighborhood served;
``(B) reside in the neighborhood served; and
``(C) are able to participate actively in the development,
planning, and implementation of programs funded under this
subtitle; or
``(2) another mechanism specified by the State to assure
decisionmaking and participation by low-income individuals in
the development, planning, and implementation of programs
funded under this subtitle.
``SEC. 677. PAYMENTS TO INDIAN TRIBES.
``(a) Reservation.--If, with respect to any State, the
Secretary--
``(1) receives a request from the governing body of an
Indian tribe or tribal organization within the State that
assistance under this subtitle be made directly to such tribe
or organization; and
``(2) determines that the members of such tribe or tribal
organization would be better served by means of grants made
directly to provide benefits under this subtitle,
the Secretary shall reserve from amounts that would otherwise
be allotted to such State under section 675B for the fiscal
year the amount determined under subsection (b).
``(b) Determination of Reserved Amount.--The Secretary
shall reserve for the purpose of subsection (a) from amounts
that would otherwise be allotted to such State, not less than
100 percent of an amount that bears the same ratio to the
State allotment for the fiscal year involved as the
population of all eligible Indians for whom a determination
has been made under subsection (a) bears to the population of
all individuals eligible for assistance under this subtitle
in such State.
``(c) Awards.--The sums reserved by the Secretary on the
basis of a determination made under subsection (a) shall be
made available by grant to the Indian tribe or tribal
organization serving the individuals for whom such a
determination has been made.
``(d) Plan.--In order for an Indian tribe or tribal
organization to be eligible for a grant award for a fiscal
year under this section, the tribe or organization shall
submit to the Secretary a plan for such fiscal year that
meets such criteria as the Secretary may prescribe by
regulation.
``(e) Definitions.--In this section:
``(1) Indian tribe; tribal organization.--The terms `Indian
tribe' and `tribal organization' mean a tribe, band, or other
organized group recognized in the State in which the tribe,
band, or group resides, or considered by the Secretary of the
Interior, to be an Indian tribe or an Indian organization for
any purpose.
``(2) Indian.--The term `Indian' means a member of an
Indian tribe or of a tribal organization.
``SEC. 678. OFFICE OF COMMUNITY SERVICES.
``(a) Office.--The Secretary shall carry out the functions
of this subtitle through an Office of Community Services,
which shall be established in the Department of Health and
Human Services. The Office shall be headed by a Director.
``(b) Grants, Contracts, Cooperative Agreements.--The
Secretary shall carry out functions of this subtitle through
grants, contracts, or cooperative agreements.
[[Page S9075]]
``SEC. 678A. TRAINING AND TECHNICAL ASSISTANCE.
``(a) Activities.--The Secretary shall use the amounts
reserved in section 674(b)(2) for training, technical
assistance, planning, evaluation, and data collection
activities related to programs carried out under this
subtitle.
``(b) Process.--The process for determining the training
and technical assistance to be carried out under this section
shall--
``(1) ensure that the needs of eligible entities and
programs relating to improving program quality, including
financial management practices, are addressed to the maximum
extent feasible; and
``(2) incorporate mechanisms to ensure responsiveness to
local needs, including an ongoing procedure for obtaining
input from the national and State networks of eligible
entities.
``SEC. 678B. MONITORING OF ELIGIBLE ENTITIES.
``(a) In General.--In order to determine whether eligible
entities meet the performance goals, administrative
standards, financial management requirements, and other
requirements of a State, the State shall conduct the
following reviews of eligible entities:
``(1) A full onsite review of each such entity at least
once during each 3-year period.
``(2) An onsite review of each newly designated entity
immediately after the completion of the first year in which
such entity receives funds through the community services
block grant program.
``(3) Followup reviews including prompt return visits to
eligible entities, and their programs, that fail to meet the
goals, standards, and requirements established by the State.
``(4) Other reviews as appropriate, including reviews of
entities with programs that have had other Federal, State, or
local grants (other than assistance provided under this
subtitle) terminated for cause.
``(b) Requests.--The State may request training and
technical assistance from the Secretary as needed to comply
with the requirements of this section.
``SEC. 678C. CORRECTIVE ACTION; TERMINATION AND REDUCTION OF
FUNDING.
``(a) Determination.--If the State determines, on the basis
of a review pursuant to subsection 678B, that an eligible
entity has had a failure described in section 676(c), the
State shall--
``(1) inform the entity of the deficiency to be corrected;
``(2) require the entity to correct the deficiency;
``(3)(A) offer training and technical assistance, if
appropriate, to help correct the deficiency, and prepare and
submit to the Secretary a report describing the training and
technical assistance offered; or
``(B) if the State determines that such training and
technical assistance are not appropriate, prepare and submit
to the Secretary a report stating the reasons for the
determination;
``(4)(A) at the discretion of the State (taking into
account the seriousness of the deficiency and the time
reasonably required to correct the deficiency), allow the
entity to develop and implement, within 60 days after being
informed of the deficiency, a quality improvement plan to
correct such deficiency within a reasonable period of time,
as determined by the State; and
``(B) not later than 30 days after receiving from an
eligible entity a proposed quality improvement plan pursuant
to subparagraph (A), either approve such proposed plan or
specify the reasons why the proposed plan cannot be approved;
and
``(5) after providing adequate notice and an opportunity
for a hearing, initiate proceedings to terminate the
designation of or reduce the funding under this subtitle of
the eligible entity unless the entity corrects the
deficiency.
``(b) Review.--A determination to terminate the designation
or reduce the funding of an eligible entity is reviewable by
the Secretary. The Secretary shall, upon request, review such
a determination. The review shall be completed not later than
60 days after the determination to terminate the designation
or reduce the funding. If the review is not completed within
60 days, the determination of the State shall become final at
the end of the 60th day.
``SEC. 678D. FISCAL CONTROLS, AUDITS, AND WITHHOLDING.
``(a) Fiscal Controls, Procedures, Audits, and
Inspections.--
``(1) In general.--A State that receives funds under this
subtitle shall--
``(A) establish fiscal control and fund accounting
procedures necessary to assure the proper disbursal of and
accounting for Federal funds paid to the State under this
subtitle, including procedures for monitoring the funds
provided under this subtitle;
``(B) ensure that cost and accounting standards of the
Office of Management and Budget apply to a recipient of funds
under this subtitle;
``(C) prepare, at least every year (or in the case of a
State with a 2-year State plan, every 2 years) in accordance
with paragraph (2) an audit of the expenditures of the State
of amounts received under this subtitle and amounts
transferred to carry out the purposes of this subtitle; and
``(D) make appropriate books, documents, papers, and
records available to the Secretary and the Comptroller
General of the United States, or any of their duly authorized
representatives, for examination, copying, or mechanical
reproduction on or off the premises of the appropriate entity
upon a reasonable request for the items.
``(2) Audits.--Each audit required by subsection (a)(1)(C)
shall be conducted by an entity independent of any agency
administering activities or services carried out under this
subtitle and shall be conducted in accordance with generally
accepted accounting principles. Within 30 days after the
completion of each such audit in a State, the chief executive
officer of the State shall submit a copy of such audit to any
eligible entity that was the subject of the audit at no
charge, to the legislature of the State, and to the
Secretary.
``(3) Repayments.--The State shall repay to the United
States amounts found not to have been expended in accordance
with this subtitle or the Secretary may offset such amounts
against any other amount to which the State is or may become
entitled under this subtitle.
``(b) Withholding.--
``(1) In general.--The Secretary shall, after providing
adequate notice and an opportunity for a hearing conducted
within the affected State, withhold funds from any State that
does not utilize the State allotment in accordance with the
provisions of this subtitle, including the assurances such
State provided under section 676.
``(2) Response to complaints.--The Secretary shall respond
in an expeditious and speedy manner to complaints of a
substantial or serious nature that a State has failed to use
funds in accordance with the provisions of this subtitle,
including the assurances provided by the State under section
676. For purposes of this paragraph, a complaint of a failure
to meet any one of the assurances provided under section 676
that constitutes disregarding that assurance shall be
considered to be a complaint of a serious nature.
``(3) Investigations.--Whenever the Secretary determines
that there is a pattern of complaints of failures described
in paragraph (2) from any State in any fiscal year, the
Secretary shall conduct an investigation of the use of funds
received under this subtitle by such State in order to ensure
compliance with the provisions of this subtitle.
``SEC. 678E. ACCOUNTABILITY AND REPORTING REQUIREMENTS.
``(a) State Accountability and Reporting Requirements.--
``(1) Performance measurement.--
``(A) In general.--By October 1, 2001, each State that
receives funds under this subtitle shall participate, and
shall ensure that all eligible entities in the State
participate, in a performance measurement system, which may
be a performance measurement system established by the
Secretary pursuant to subsection (b), or an alternative
system that the Secretary is satisfied meets the requirements
of subsection (b).
``(B) Local agencies.--The State may elect to have local
agencies that are subcontractors of the eligible entities
under this subtitle participate in the performance
measurement system. If the State makes that election,
references in this section to eligible entities shall be
considered to include the local agencies.
``(2) Annual report.--Each State shall annually prepare and
submit to the Secretary a report on the measured performance
of the State and the eligible entities in the State. Prior to
the participation of the State in the performance measurement
system, the State shall include in the report any information
collected by the State relating to such performance. Each
State shall also include in the report an accounting of the
expenditure of funds received by the State through the
community services block grant program, including an
accounting of funds spent on administrative costs by the
State and the eligible entities, and funds spent by eligible
entities on the direct delivery of local services, and shall
include information on the number of and characteristics of
clients served under this subtitle in the State, based on
data collected from the eligible entities. The State shall
also include in the report a summary describing the training
and technical assistance offered by the State under section
678C(a)(3) during the year covered by the report.
``(b) Secretary's Accountability and Reporting
Requirements.--
``(1) Performance measurement.--The Secretary, in
collaboration with the States and with eligible entities
throughout the Nation, shall establish one or more model
performance measurement systems, which may be used by the
States and by eligible entities to measure their performance
in carrying out the requirements of this subtitle and in
achieving the goals of community action plans. The Secretary
shall provide technical assistance, including support for the
enhancement of electronic data systems, to States and to
eligible entities to enhance their capability to collect and
report data for such a system and to aid in their
participation in such a system.
``(2) Reporting requirements.--At the end of each fiscal
year beginning after September 30, 1999, the Secretary shall,
directly or by grant or contract, prepare a report containing
each of the following elements:
``(A) A summary of the planned use of funds by each State,
and the eligible entities in the State, under the community
services block grant program, as contained in each State plan
submitted pursuant to section 676.
``(B) A description of how funds were actually spent by the
State and eligible entities in the State, including a
breakdown of funds spent on administrative costs and on the
direct delivery of local services by eligible entities.
``(C) Information on the number of entities eligible for
funds under this subtitle, the number of low-income persons
served under this subtitle, and such demographic data on the
low-income populations served by eligible entities as is
determined by the Secretary to be feasible.
``(D) A comparison of the planned uses of funds for each
State and the actual uses of the funds.
``(E) A summary of each State's performance results, and
the results for the eligible entities, as collected and
submitted by the States in accordance with subsection (a)(2).
``(F) Any additional information that the Secretary
considers to be appropriate to carry out this subtitle, if
the Secretary informs the States
[[Page S9076]]
of the need for such additional information and allows a
reasonable period of time for the States to collect and
provide the information.
``(3) Submission.--The Secretary shall submit to the
Committee on Education and the Workforce of the House of
Representatives and the Committee on Labor and Human
Resources of the Senate the report described in paragraph
(2), and any comments the Secretary may have with respect to
such report. The report shall include definitions of direct,
indirect, and administrative costs used by the Department of
Health and Human Services for programs funded under this
subtitle.
``(4) Costs.--Of the funds reserved under section
674(b)(3), not more than $350,000 shall be available to carry
out the reporting requirements contained in paragraph (2) and
the provision of technical assistance described in paragraph
(1).
``SEC. 678F. LIMITATIONS ON USE OF FUNDS.
``(a) Construction of Facilities.--
``(1) Limitations.--Except as provided in paragraph (2),
grants made under this subtitle (other than amounts reserved
under section 674(b)(3)) may not be used by the State, or by
any other person with which the State makes arrangements to
carry out the purposes of this subtitle, for the purchase or
improvement of land, or the purchase, construction, or
permanent improvement (other than low-cost residential
weatherization or other energy-related home repairs) of any
building or other facility.
``(2) Waiver.--The Secretary may waive the limitation
contained in paragraph (1) upon a State request for such a
waiver, if the Secretary finds that the request describes
extraordinary circumstances to justify the purchase of land
or the construction of facilities (or the making of permanent
improvements) and that permitting the waiver will contribute
to the ability of the State to carry out the purposes of this
subtitle.
``(b) Political Activities.--
``(1) Treatment as a state or local agency.--For purposes
of chapter 15 of title 5, United States Code, any entity that
assumes responsibility for planning, developing, and
coordinating activities under this subtitle and receives
assistance under this subtitle shall be deemed to be a State
or local agency. For purposes of paragraphs (1) and (2) of
section 1502(a) of such title, any entity receiving
assistance under this subtitle shall be deemed to be a State
or local agency.
``(2) Prohibitions.--Programs assisted under this subtitle
shall not be carried on in a manner involving the use of
program funds, the provision of services, or the employment
or assignment of personnel, in a manner supporting or
resulting in the identification of such programs with--
``(A) any partisan or nonpartisan political activity or any
political activity associated with a candidate, or contending
faction or group, in an election for public or party office;
``(B) any activity to provide voters or prospective voters
with transportation to the polls or similar assistance in
connection with any such election; or
``(C) any voter registration activity.
``(3) Rules and regulations.--The Secretary, after
consultation with the Office of Personnel Management, shall
issue rules and regulations to provide for the enforcement of
this subsection, which shall include provisions for summary
suspension of assistance or other action necessary to permit
enforcement on an emergency basis.
``(c) Nondiscrimination.--
``(1) In general.--No person shall, on the basis of race,
color, national origin, or sex be excluded from participation
in, be denied the benefits of, or be subjected to
discrimination under, any program or activity funded in whole
or in part with funds made available under this subtitle. Any
prohibition against discrimination on the basis of age under
the Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.)
or with respect to an otherwise qualified individual with a
disability as provided in section 504 of the Rehabilitation
Act of 1973 (29 U.S.C. 794), or title II of the Americans
with Disabilities Act of 1990 (42 U.S.C. 12131 et seq.) shall
also apply to any such program or activity.
``(2) Action of secretary.--Whenever the Secretary
determines that a State that has received a payment under
this subtitle has failed to comply with paragraph (1) or an
applicable regulation, the Secretary shall notify the chief
executive officer of the State and shall request that the
officer secure compliance. If within a reasonable period of
time, not to exceed 60 days, the chief executive officer
fails or refuses to secure compliance, the Secretary is
authorized to--
``(A) refer the matter to the Attorney General with a
recommendation that an appropriate civil action be
instituted;
``(B) exercise the powers and functions provided by title
VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.),
the Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.),
section 504 of the Rehabilitation Act of 1973 (29 U.S.C.
794), or title II of the Americans with Disabilities Act of
1990 (42 U.S.C. 12131), as may be applicable; or
``(C) take such other action as may be provided by law.
``(3) Action of attorney general.--When a matter is
referred to the Attorney General pursuant to paragraph (2),
or whenever the Attorney General has reason to believe that
the State is engaged in a pattern or practice of
discrimination in violation of the provisions of this
subsection, the Attorney General may bring a civil action in
any appropriate United States district court for such relief
as may be appropriate, including injunctive relief.
``SEC. 679. OPERATIONAL RULE.
``(a) Faith-Based Organizations Included as Nongovernmental
Providers.--For any program carried out by the Federal
Government, or by a State or local government under this
subtitle, the government shall consider, on the same basis as
other nongovernmental organizations, faith-based
organizations to provide the assistance under the program, so
long as the program is implemented in a manner consistent
with the Establishment Clause of the first amendment to the
Constitution. Neither the Federal Government nor a State or
local government receiving funds under this subtitle shall
discriminate against an organization that provides assistance
under, or applies to provide assistance under, this subtitle,
on the basis that the organization has a faith-based
character.
``(c) Faith-Based Character and Independence.--
``(1) In general.--A faith-based organization that provides
assistance under a program described in subsection (a) shall
retain its faith-based character and control over the
definition, development, practice, and expression of its
faith-based beliefs.
``(2) Additional safeguards.--Neither the Federal
Government nor a State or local government shall require a
faith-based organization--
``(A) to alter its form of internal governance, except (for
purposes of administration of the community services block
grant program) as provided in section 676B; or
``(B) to remove religious art, icons, scripture, or other
symbols;
in order to be eligible to provide assistance under a program
described in subsection (a).
``(3) Tenets and teachings.--A faith-based organization
that provides assistance under a program described in
subsection (a) may require that employees adhere to the
religious tenets and teachings of such organization, and such
organization may require that employees adhere to rules
forbidding the use of drugs or alcohol.
``(c) Limitations on Use of Funds for Certain Purposes.--No
funds provided through a grant or contract to a faith-based
organization to provide assistance under any program
described in subsection (a) shall be expended for sectarian
worship, instruction, or proselytization.
``(d) Fiscal Accountability.--
``(1) In general.--Except as provided in paragraph (2), any
faith-based organization providing assistance under any
program described in subsection (a) shall be subject to the
same regulations as other nongovernmental organizations to
account in accord with generally accepted accounting
principles for the use of such funds provided under such
program.
``(2) Limited audit.--Such organization shall segregate
government funds provided under such program into a separate
account. Only the government funds shall be subject to audit
by the government.
``(e) Treatment of Eligible Entities and Other Intermediate
Organizations.--If an eligible entity or other organization
(referred to in this subsection as an `intermediate
organization'), acting under a contract, or grant or other
agreement, with the Federal Government or a State or local
government, is given the authority under the contract or
agreement to select nongovernmental organizations to provide
assistance under the programs described in subsection (a),
the intermediate organization shall have the same duties
under this section as the government.
``SEC. 680. DISCRETIONARY AUTHORITY OF THE SECRETARY.
``(a) Grants, Contracts, Arrangements, Loans, and
Guarantees.--
``(1) In general.--The Secretary shall, from funds reserved
under section 674(b)(3), make grants, loans, or guarantees to
States and public agencies and private, nonprofit
organizations, or enter into contracts or jointly financed
cooperative arrangements with States and public agencies and
private, nonprofit organizations (and for-profit
organizations, to the extent specified in paragraph (2)(E))
for each of the objectives described in paragraphs (2)
through (4).
``(2) Community economic development.--
``(A) Economic development activities.--The Secretary shall
make grants described in paragraph (1) on a competitive basis
to private, nonprofit organizations that are community
development corporations to enable the corporations to
provide technical and financial assistance for economic
development activities designed to address the economic needs
of low-income individuals and families by creating employment
and business development opportunities.
``(B) Consultation.--The Secretary shall exercise the
authority provided under subparagraph (A) after consultation
with other relevant Federal officials.
``(C) Governing boards.--For a community development
corporation to receive funds to carry out this paragraph, the
corporation shall be governed by a board that shall consist
of residents of the community and business and civic leaders
and shall have as a principal purpose planning, developing,
or managing low-income housing or community development
projects.
``(D) Geographic distribution.--In making grants to carry
out this paragraph, the Secretary shall take into
consideration the geographic distribution of funding among
States and the relative proportion of funding among rural and
urban areas.
``(E) Reservation.--Of the amounts made available to carry
out this paragraph, the Secretary may reserve not more than 1
percent for each fiscal year to make grants to private,
nonprofit organizations, or to enter into contracts with
private, nonprofit or for-profit organizations, to enable the
organizations involved to provide technical assistance to aid
community development corporations in developing or
implementing activities funded to carry out this paragraph
and to evaluate activities funded to carry out this
paragraph.
[[Page S9077]]
``(3) Rural community development activities.--The
Secretary shall provide the assistance described in paragraph
(1) for rural community development activities, which shall
include providing--
``(A) grants to private, nonprofit corporations to enable
the corporations to provide assistance concerning home repair
to rural low-income families and concerning planning and
developing low-income rural rental housing units; and
``(B) grants to multistate, regional, private, nonprofit
organizations to enable the organizations to provide training
and technical assistance to small, rural communities
concerning meeting their community facility needs.
``(4) Neighborhood innovation projects.--The Secretary
shall provide the assistance described in paragraph (1) for
neighborhood innovation projects, which shall include
providing grants to neighborhood-based private, nonprofit
organizations to test or assist in the development of new
approaches or methods that will aid in overcoming special
problems identified by communities or neighborhoods or
otherwise assist in furthering the purposes of this subtitle,
and which may include providing assistance for projects that
are designed to serve low-income individuals and families who
are not being effectively served by other programs.
``(b) Evaluation.--The Secretary shall require all
activities receiving assistance under this section to be
evaluated for their effectiveness. Funding for such
evaluations shall be provided as a stated percentage of the
assistance or through a separate grant awarded by the
Secretary specifically for the purpose of evaluation of a
particular activity or group of activities.
``(c) Annual Report.--The Secretary shall compile an annual
report containing a summary of the evaluations required in
subsection (b) and a listing of all activities assisted under
this section. The Secretary shall annually submit the report
to the Chairperson of the Committee on Education and the
Workforce of the House of Representatives and the Chairperson
of the Committee on Labor and Human Resources of the Senate.
``SEC. 681. COMMUNITY FOOD AND NUTRITION PROGRAMS.
``(a) Grants.--The Secretary may, through grants to public
and private, nonprofit agencies, provide for community-based,
local, statewide, and national programs--
``(1) to coordinate private and public food assistance
resources, wherever the grant recipient involved determines
such coordination to be inadequate, to better serve low-
income populations;
``(2) to assist low-income communities to identify
potential sponsors of child nutrition programs and to
initiate such programs in underserved or unserved areas; and
``(3) to develop innovative approaches at the State and
local level to meet the nutrition needs of low-income
individuals.
``(b) Allotments and Distribution of Funds.--
``(1) Not to exceed $6,000,000 in appropriations.--Of the
amount appropriated for a fiscal year to carry out this
section (but not to exceed $6,000,000), the Secretary shall
distribute funds for grants under subsection (a) as follows:
``(A) Allotments.--From a portion equal to 60 percent of
such amount (but not to exceed $3,600,000), the Secretary
shall allot for grants to eligible agencies for statewide
programs in each State the amount that bears the same ratio
to such portion as the low-income and unemployed population
of such State bears to the low-income and unemployed
population of all the States.
``(B) Competitive grants.--From a portion equal to 40
percent of such amount (but not to exceed $2,400,000), the
Secretary shall make grants on a competitive basis to
eligible agencies for local and statewide programs.
``(2) Greater available appropriations.--Any amounts
appropriated for a fiscal year to carry out this section in
excess of $6,000,000 shall be allotted as follows:
``(A) Allotments.--The Secretary shall use 40 percent of
such excess to make allotments for grants under subsection
(a) to eligible agencies for statewide programs in each State
in an amount that bears the same ratio to 40 percent of such
excess as the low-income and unemployed population of such
State bears to the low-income and unemployed population of
all the States.
``(B) Competitive grants for local and statewide
programs.--The Secretary shall use 40 percent of such excess
to make grants under subsection (a) on a competitive basis to
eligible agencies for local and statewide programs.
``(C) Competitive grants for nationwide programs.--The
Secretary shall use the remaining 20 percent of such excess
to make grants under subsection (a) on a competitive basis to
eligible agencies for nationwide programs, including programs
benefiting Indians as defined in section 677 and migrant or
seasonal farmworkers.
``(3) Eligibility for allotments for statewide programs.--
To be eligible to receive an allotment under paragraph (1)(A)
or (2)(A), an eligible agency shall demonstrate that the
proposed program is statewide in scope and represents a
comprehensive and coordinated effort to alleviate hunger
within the State.
``(4) Minimum allotments for statewide programs.--
``(A) In general.--From the amounts allotted under
paragraphs (1)(A) and (2)(A), the minimum total allotment for
each State for each fiscal year shall be--
``(i) $15,000 if the total amount appropriated to carry out
this section is not less than $7,000,000 but less than
$10,000,000;
``(ii) $20,000 if the total amount appropriated to carry
out this section is not less than $10,000,000 but less than
$15,000,000; or
``(iii) $30,000 if the total amount appropriated to carry
out this section is not less than $15,000,000.
``(B) Definition.--In this paragraph, the term `State' does
not include Guam, American Samoa, the United States Virgin
Islands, the Commonwealth of the Northern Mariana Islands, or
the Freely Associated States.
``(5) Maximum grants.--From funds made available under
paragraphs (1)(B) and (2)(B) for any fiscal year, the
Secretary may not make grants under subsection (a) to an
eligible agency in an aggregate amount exceeding $50,000.
From funds made available under paragraph (2)(C) for any
fiscal year, the Secretary may not make grants under
subsection (a) to an eligible agency in an aggregate amount
exceeding $300,000.
``(c) Report.--For each fiscal year, the Secretary shall
prepare and submit, to the Committee on Education and the
Workforce of the House of Representatives and the Committee
on Labor and Human Resources of the Senate, a report
concerning the grants made under this section. Such report
shall include--
``(1) a list of grant recipients;
``(2) information on the amount of funding awarded to each
grant recipient; and
``(3) a summary of the activities performed by the grant
recipients with funding awarded under this section and a
description of the manner in which such activities meet the
objectives described in subsection (a).
``(d) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$25,000,000 for fiscal year 1999, and such sums as may be
necessary for each of fiscal years 2000 through 2003.
``SEC. 682. NATIONAL OR REGIONAL PROGRAMS DESIGNED TO PROVIDE
INSTRUCTIONAL ACTIVITIES FOR LOW-INCOME YOUTH.
``(a) General Authority.--The Secretary is authorized to
make a grant to an eligible service provider to administer
national or regional programs to provide instructional
activities for low-income youth. In making such a grant, the
Secretary shall give priority to eligible service providers
that have a demonstrated ability to operate such a program.
``(b) Program Requirements.--Any instructional activity
carried out by an eligible service provider receiving a grant
under this section shall be carried out on the campus of an
institution of higher education (as defined in section
1201(a) of the Higher Education Act of 1965 (20 U.S.C.
1141(a))) and shall include--
``(1) access to the facilities and resources of such an
institution;
``(2) an initial medical examination and follow-up referral
or treatment, without charge, for youth during their
participation in such activity;
``(3) at least one nutritious meal daily, without charge,
for participating youth during each day of participation;
``(4) high quality instruction in a variety of sports (that
shall include swimming and that may include dance and any
other high quality recreational activity) provided by coaches
and teachers from institutions of higher education and from
elementary and secondary schools (as defined in section 14101
of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 8801)); and
``(5) enrichment instruction and information on matters
relating to the well-being of youth, to include educational
opportunities and information on study practices, education
for the prevention of drug and alcohol abuse, and information
on health and nutrition, career opportunities, and family and
job responsibilities.
``(c) Advisory Committee; Partnerships.--The eligible
service provider shall, in each community in which a program
is funded under this section--
``(1) ensure that--
``(A) a community-based advisory committee is established,
with representatives from local youth, family, and social
service organizations, schools, entities providing park and
recreation services, and other community-based organizations
serving high-risk youth; or
``(B) an existing community-based advisory board,
commission, or committee with similar membership is utilized
to serve as the committee described in subparagraph (A); and
``(2) enter into formal partnerships with youth-serving
organizations or other appropriate social service entities in
order to link program participants with year-round services
in their home communities that support and continue the
objectives of this subtitle.
``(d) Eligible Providers.--A service provider that is a
national private, nonprofit organization, a coalition of such
organizations, or a private, nonprofit organization applying
jointly with a business concern shall be eligible to apply
for a grant under this section if--
``(1) the applicant has demonstrated experience in
operating a program providing instruction to low-income
youth;
``(2) the applicant agrees to contribute an amount (in cash
or in kind, fairly evaluated) of not less than 25 percent of
the amount requested, for the program funded through the
grant;
``(3) the applicant agrees to use no funds from a grant
authorized under this section for administrative expenses;
and
``(4) the applicant agrees to comply with the regulations
or program guidelines promulgated by the Secretary for use of
funds made available through the grant.
``(e) Applications Process.--To be eligible to receive a
grant under this section, a service provider shall submit to
the Secretary, for approval, an application at such time, in
such manner, and containing such information as the Secretary
may require.
``(f) Promulgation of Regulations or Program Guidelines.--
The Secretary shall promulgate regulations or program
guidelines to ensure funds made available through a grant
made
[[Page S9078]]
under this section are used in accordance with the objectives
of this subtitle.
``(g) Authorization of Appropriations.--There is authorized
to be appropriated $15,000,000 for each of fiscal years 1999
through 2003 for grants to carry out this section.
``SEC. 683. REFERENCES.
``Any reference in any provision of law to the poverty line
set forth in section 624 or 625 of the Economic Opportunity
Act of 1964 shall be construed to be a reference to the
poverty line defined in section 673. Any reference in any
provision of law to any community action agency designated
under title II of the Economic Opportunity Act of 1964 shall
be construed to be a reference to an entity eligible to
receive funds under the community services block grant
program.''.
SEC. 202. CONFORMING AMENDMENTS.
(a) Older Americans Act of 1965.--Section 306(a)(6)(E)(ii)
of the Older Americans Act of 1965 (42 U.S.C.
3026(a)(6)(E)(ii)) is amended by striking ``section 675(c)(3)
of the Community Services Block Grant Act (42 U.S.C.
9904(c)(3))'' and inserting ``section 676B of the Community
Services Block Grant Act''.
(b) Anti-Drug Abuse Act of 1988.--Section 3521(c)(2) of the
Anti-Drug Abuse Act of 1988 (42 U.S.C. 11841(c)(2)) is
amended by striking ``, such as activities authorized by
section 681(a)(2)(F) of the Community Services Block Grant
Act (42 U.S.C. section 9910(a)(2)(F)),''.
SEC. 203. REPEALERS.
(a) Community Economic Development Act of 1981.--The
Community Economic Development Act of 1981 (42 U.S.C. 9801 et
seq.) is repealed.
(b) Human Services Reauthorization Act of 1986.--Sections
407 and 408 of the Human Services Reauthorization Act of 1986
(42 U.S.C 9812a and 9910b) are repealed.
TITLE III--LOW-INCOME HOME ENERGY ASSISTANCE
SEC. 301. AUTHORIZATION.
(a) In General.--Section 2602(b) of the Low-Income Home
Energy Assistance Act of 1981 (42 U.S.C. 8621(b)) is
amended--
(1) by striking ``are authorized'' and inserting ``is
authorized''; and
(2) by striking ``fiscal years 1995 through 1999'' and
inserting ``fiscal years 1999 through 2004''.
(b) Program Year.--Section 2602(c) of such Act (42 U.S.C.
8621(c)) is amended to read as follows:
``(c) Amounts appropriated under this section for any
fiscal year for programs and activities under this title
shall be made available for obligation in the succeeding
fiscal year.''.
(c) Incentive Program for Leveraging Non-Federal
Resources.--Section 2602(d) of such Act (42 U.S.C. 8621(d))
is amended--
(1) by striking ``(d)'' and inserting ``(d)(1)'';
(2) by striking ``are authorized'' and inserting ``is
authorized'';
(3) by striking ``$50,000,000'' and all that follows and
inserting the following: ``$30,000,000 for each of fiscal
years 1999 through 2004, except as provided in paragraph
(2).''; and
(4) by adding at the end the following:
``(2) For any of fiscal years 1999 through 2004 for which
the amount appropriated under subsection (b) is not less than
$1,400,000,000, there is authorized to be appropriated
$50,000,000 to carry out section 2607A.''.
(d) Technical Amendments.--Section 2602(e) of such Act (42
U.S.C. 8621(e)) is amended--
(1) by striking ``are authorized'' and inserting ``is
authorized''; and
(2) by striking ``subsection (g)'' and inserting
``subsection (e) of such section''.
SEC. 302. DEFINITIONS.
Section 2603(4) of the Low-Income Home Energy Assistance
Act of 1981 (42 U.S.C. 8622(4)) is amended--
(1) by striking ``the term'' and inserting ``The term'';
and
(2) by striking the semicolon and inserting a period.
SEC. 303. NATURAL DISASTERS AND OTHER EMERGENCIES.
Section 2603 of the Low-Income Home Energy Assistance Act
of 1981 (42 U.S.C. 8622) is amended--
(1) by redesignating paragraphs (6) through (9) as
paragraphs (8) through (11), respectively;
(2) by inserting before paragraph (8) (as redesignated in
paragraph (1)) the following:
``(7) Natural disaster.--The term `natural disaster' means
a weather event (relating to cold or hot weather), flood,
earthquake, tornado, hurricane, or ice storm, or an event
meeting such other criteria as the Secretary, in the
discretion of the Secretary, may determine to be
appropriate.'';
(3) by redesignating paragraphs (1) through (5) as
paragraphs (2) through (6), respectively; and
(4) by inserting before paragraph (2) (as redesignated in
paragraph (3)) the following:
``(1) Emergency.--The term `emergency' means--
``(A) a natural disaster;
``(B) a significant home energy supply shortage or
disruption;
``(C) a significant increase in the cost of home energy, as
determined by the Secretary;
``(D) a significant increase in home energy disconnections
reported by a utility, a State regulatory agency, or another
agency with necessary data;
``(E) a significant increase in participation in a public
benefit program such as the food stamp program carried out
under the Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), the
national program to provide supplemental security income
carried out under title XVI of the Social Security Act (42
U.S.C. 1381 et seq.), or the State temporary assistance for
needy families program carried out under part A of title IV
of the Social Security Act (42 U.S.C. 601 et seq.), as
determined by the head of the appropriate Federal agency;
``(F) a significant increase in unemployment, layoffs, or
the number of households with an individual applying for
unemployment benefits, as determined by the Secretary of
Labor; or
``(G) an event meeting such criteria as the Secretary, in
the discretion of the Secretary, may determine to be
appropriate.''.
SEC. 304. STATE ALLOTMENTS.
Section 2604 of the Low-Income Home Energy Assistance Act
of 1981 (42 U.S.C. 8623) is amended--
(1) in subsection (b)(1), by striking ``the Northern
Mariana Islands, and the Trust Territory of the Pacific
Islands.'' and inserting ``the Commonwealth of the Northern
Mariana Islands, and the combined Freely Associated
States.'';
(2) in subsection (c)(3)(B)(ii), by striking
``application'' and inserting ``applications'';
(3) by striking subsection (f);
(4) in subsection (g)--
(A) in the first sentence, by striking ``(a) through (f)''
and inserting ``(a) through (d)''; and
(B) by striking the last two sentences and inserting the
following: ``In determining whether to make such an allotment
to a State, the Secretary shall take into account the extent
to which the State was affected by the natural disaster or
other emergency involved, the availability to the State of
other resources under the program carried out under this
title or any other program, whether a Member of Congress has
requested that the State receive the allotment, and such
other factors as the Secretary may find to be relevant. Not
later than 30 days after making the determination, but prior
to releasing an allotted amount to a State, the Secretary
shall notify Congress of the allotments made pursuant to this
subsection.''; and
(5) by redesignating subsection (g) as subsection (e).
SEC. 305. ADMINISTRATION.
Section 2605 of the Low-Income Home Energy Assistance Act
of 1981 (42 U.S.C. 8624) is amended--
(1) in subsection (b)--
(A) in paragraph (9)(A), by striking ``and not transferred
pursuant to section 2604(f) for use under another block
grant'';
(B) in paragraph (14), by striking ``; and'' and inserting
a semicolon;
(C) in the matter following paragraph (14), by striking
``The Secretary may not prescribe the manner in which the
States will comply with the provisions of this subsection.'';
and
(D) in the matter following paragraph (16), by inserting
before ``The Secretary shall issue'' the following: ``The
Secretary may not prescribe the manner in which the States
will comply with the provisions of this subsection.''; and
(2) in subsection (c)(1)--
(A) in subparagraph (B), by striking ``States'' and
inserting ``State''; and
(B) in subparagraph (G)(i), by striking ``has'' and
inserting ``had''.
SEC. 306. PAYMENTS TO STATES.
Section 2607(b)(2)(B) of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8626(b)(2)(B)) is amended--
(1) in the first sentence, by striking ``and not
transferred pursuant to section 2604(f)''; and
(2) in the second sentence, by striking ``but not
transferred by the State''.
SEC. 307. RESIDENTIAL ENERGY ASSISTANCE CHALLENGE OPTION.
(a) Evaluation.--The Comptroller General of the United
States shall conduct an evaluation of the Residential Energy
Assistance Challenge program described in section 2607B of
the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C.
8626b).
(b) Report.--Not later than 2 years after the date of
enactment of this Act, the Comptroller General of the United
States shall prepare and submit to Congress a report
containing--
(1) the findings resulting from the evaluation described in
subsection (a); and
(2) the State evaluations described in paragraphs (1) and
(2) of subsection (b) of such section 2607B.
(c) Incentive Grants.--Section 2607B(b)(1) of the Low-
Income Home Energy Assistance Act of 1981 (42 U.S.C.
8626b(b)(1)) is amended by striking ``For each of the fiscal
years 1996 through 1999'' and inserting ``For each fiscal
year''.
(d) Technical Amendments.--Section 2607B of such Act (42
U.S.C. 8626b) is amended--
(1) in subsection (e)(2)--
(A) by redesignating subparagraphs (F) through (N) as
subparagraphs (E) through (M), respectively; and
(B) in clause (i) of subparagraph (I) (as redesignated in
subparagraph (A)), by striking ``on'' and inserting ``of'';
and
(2) by redesignating subsection (g) as subsection (f).
SEC. 308. TECHNICAL ASSISTANCE, TRAINING, AND COMPLIANCE
REVIEWS.
(a) In General.--Section 2609A(a) of the Low-Income Home
Energy Assistance Act of 1981 (42 U.S.C. 8628a(a)) is
amended--
(1) in the matter preceding paragraph (1)--
(A) by striking ``$250,000'' and inserting ``$300,000'';
and
(B) by striking ``Secretary--'' and inserting ``Secretary
to conduct onsite compliance reviews of programs supported
under this title or--''; and
(2) in paragraph (2)--
(A) by inserting ``or interagency agreements'' after
``cooperative arrangements''; and
(B) by inserting ``(including Federal agencies)'' after
``public agencies''.
(b) Conforming Amendment.--The section heading of section
2609A of such Act (42 U.S.C. 8628a) is amended to read as
follows:
[[Page S9079]]
``technical assistance, training, and compliance reviews''.
TITLE IV--ASSETS FOR INDEPENDENCE
SEC. 401. SHORT TITLE.
This title may be cited as the ``Assets for Independence
Act''.
SEC. 402. FINDINGS.
Congress makes the following findings:
(1) Economic well-being does not come solely from income,
spending, and consumption, but also requires savings,
investment, and accumulation of assets because assets can
improve economic independence and stability, connect
individuals with a viable and hopeful future, stimulate
development of human and other capital, and enhance the
welfare of offspring.
(2) Fully \1/2\ of all Americans have either no,
negligible, or negative assets available for investment, just
as the price of entry to the economic mainstream, the cost of
a house, an adequate education, and starting a business, is
increasing. Further, the household savings rate of the United
States lags far behind other industrial nations, presenting a
barrier to economic growth.
(3) In the current tight fiscal environment, the United
States should invest existing resources in high-yield
initiatives. There is reason to believe that the financial
returns, including increased income, tax revenue, and
decreased welfare cash assistance, resulting from individual
development accounts will far exceed the cost of investment
in those accounts.
(4) Traditional public assistance programs concentrating on
income and consumption have rarely been successful in
promoting and supporting the transition to increased economic
self-sufficiency. Income-based domestic policy should be
complemented with asset-based policy because, while income-
based policies ensure that consumption needs (including food,
child care, rent, clothing, and health care) are met, asset-
based policies provide the means to achieve greater
independence and economic well-being.
SEC. 403. PURPOSES.
The purposes of this title are 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 by saving a portion of
their earned income;
(2) the extent to which an asset-based policy that promotes
saving for postsecondary education, homeownership, and
microenterprise development may be used to enable individuals
and families with limited means to increase their economic
self-sufficiency; and
(3) the extent to which an asset-based policy stabilizes
and improves families and the community in which they live.
SEC. 404. DEFINITIONS.
In this title:
(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) Eligible individual.--The term ``eligible individual''
means an individual who is selected to participate by a
qualified entity under section 409.
(3) Emergency withdrawal.--The term ``emergency
withdrawal'' means a withdrawal by an eligible individual
that--
(A) is a withdrawal of only those funds, or a portion of
those funds, deposited by the individual in the individual
development account of the individual;
(B) is permitted by a qualified entity on a case-by-case
basis; and
(C) is made for--
(i) expenses for medical care or necessary to obtain
medical care, for the individual or a spouse or dependent of
the individual described in paragraph (8)(D);
(ii) payments necessary to prevent the eviction of the
individual from the residence of the individual, or
foreclosure on the mortgage for the principal residence of
the individual, as defined in paragraph (8)(B); or
(iii) payments necessary to enable the individual to meet
necessary living expenses following loss of employment.
(4) 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.
(5) Individual development account.--
(A) In general.--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, or enabling the eligible
individual to make an emergency withdrawal, but only if the
written governing instrument creating the trust meets the
following requirements:
(i) No contribution will be accepted unless it is in cash
or by check.
(ii) The trustee is a federally insured financial
institution, or a State insured financial institution if no
federally insured financial institution is available.
(iii) The assets of the trust will be invested in
accordance with the direction of the eligible individual
after consultation with the qualified entity providing
deposits for the individual under section 410.
(iv) The assets of the trust will not be commingled with
other property except in a common trust fund or common
investment fund.
(v) Except as provided in clause (vi), any amount in the
trust which is attributable to a deposit provided under
section 410 may be paid or distributed out of the trust only
for the purpose of paying the qualified expenses of the
eligible individual, or enabling the eligible individual to
make an emergency withdrawal.
(vi) Any balance in the trust 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 that
date as directed by that individual to another individual
development account established for the benefit of an
eligible individual.
(B) Custodial accounts.--For purposes of subparagraph (A),
a custodial account shall be treated as a trust if the assets
of the custodial account are held by a bank (as defined in
section 408(n) of the Internal Revenue Code of 1986) or
another person who demonstrates, to the satisfaction of the
Secretary, that the manner in which such person will
administer the custodial account will be consistent with the
requirements of this title, and if the custodial account
would, except for the fact that it is not a trust, constitute
an individual development account described in subparagraph
(A). 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 that custodial account shall be
treated as the trustee thereof.
(6) 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.
(7) Qualified entity.--
(A) In general.--The term ``qualified entity'' means--
(i) one or more not-for-profit organizations 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, or a tribal
government, submitting an application under section 405
jointly with an organization described in clause (i).
(B) Rule of construction.--Nothing in this paragraph shall
be construed as preventing an organization described in
subparagraph (A)(i) from collaborating with a financial
institution or for-profit community development corporation
to carry out the purposes of this title.
(8) Qualified expenses.--The term ``qualified expenses''
means one or more of the following, as provided by the
qualified entity:
(A) Postsecondary educational expenses.--Postsecondary
educational expenses paid from an individual development
account directly to an eligible educational institution. In
this subparagraph:
(i) Postsecondary educational expenses.--The term
``postsecondary educational expenses'' means the following:
(I) Tuition and fees.--Tuition and fees required for the
enrollment or attendance of a student at an eligible
educational institution.
(II) Fees, books, supplies, and equipment.--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 enactment of this
title.
(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 enactment
of this title.
(B) First-home purchase.--Qualified acquisition costs with
respect to a 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. In this
subparagraph:
(i) Principal residence.--The term ``principal residence''
means a principal residence, the qualified acquisition costs
of which do not exceed 100 percent of the average area
purchase price applicable to such residence.
(ii) 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.
(iii) Qualified first-time homebuyer.--
(I) In general.--The term ``qualified first-time
homebuyer'' means an individual participating in the project
(and, if married, the individual'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. In 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).
[[Page S9080]]
(iv) Qualified plan.--The term ``qualified plan'' means a
business plan, or a plan to use a business asset purchased,
which--
(I) is approved by a financial institution, a
microenterprise development organization, or 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 adviser.
(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 individual's spouse; or
(ii) any dependent of the individual with respect to whom
the individual is allowed a deduction under section 151 of
the Internal Revenue Code of 1986.
(9) 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.
(10) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(11) Tribal government.--The term ``tribal government''
means a tribal organization, as defined in section 4 of the
Indian Self-Determination and Education Assistance Act (25
U.S.C. 450b) or a Native Hawaiian organization, as defined in
section 9212 of the Native Hawaiian Education Act (20 U.S.C.
7912).
SEC. 405. APPLICATIONS.
(a) Announcement of Demonstration Projects.--Not later than
3 months after the date of enactment of this title, the
Secretary shall publicly announce the availability of funding
under this title for demonstration projects and shall ensure
that applications to conduct the demonstration projects are
widely available to qualified entities.
(b) Submission.--Not later than 6 months after the date of
enactment of this title, a qualified entity may submit to the
Secretary an application to conduct a demonstration project
under this title.
(c) Criteria.--In considering whether to approve an
application to conduct a demonstration project under this
title, the Secretary shall assess the following:
(1) 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. In making
such assessment, the Secretary shall consider the overall
quality of project activities in making any particular kind
or combination of qualified expenses to be an essential
feature of any project.
(2) Administrative ability.--The experience and ability of
the applicant to responsibly administer the project.
(3) Ability to assist participants.--The experience and
ability of the applicant in recruiting, educating, and
assisting project participants to increase their economic
independence and general well-being through the development
of assets.
(4) Commitment of non-federal funds.--The aggregate amount
of direct funds from non-Federal public sector and from
private sources that are formally committed to the project as
matching contributions.
(5) Adequacy of plan for providing information for
evaluation.--The adequacy of the plan for providing
information relevant to an evaluation of the project.
(6) Other factors.--Such other factors relevant to the
purposes of this title as the Secretary may specify.
(d) Preferences.--In considering an application to conduct
a demonstration project under this title, the Secretary shall
give preference to an application that--
(1) demonstrates the willingness and ability to select
individuals described in section 408 who are predominantly
from households in which a child (or children) is living with
the child's biological or adoptive mother or father, or with
the child's legal guardian;
(2) provides a commitment of non-Federal funds with a
proportionately greater amount of such funds committed by
private sector sources; and
(3) targets such individuals residing within one or more
relatively well-defined neighborhoods or communities
(including rural communities) that experience high rates of
poverty or unemployment.
(e) Approval.--Not later than 9 months after the date of
enactment of this title, the Secretary shall, on a
competitive basis, approve such applications to conduct
demonstration projects under this title as the Secretary
deems appropriate, taking into account the assessments
required by subsections (c) and (d). The Secretary is
encouraged to ensure that the applications that are approved
involve a range of communities (both rural and urban) and
diverse populations.
(f) Contracts With Nonprofit Entities.--The Secretary may
contract with an entity described in section 501(c)(3) of the
Internal Revenue Code of 1986 and exempt from taxation under
section 501(a) of such Code to carry out any responsibility
of the Secretary under this section or section 412 if--
(1) such entity demonstrates the ability to carry out such
responsibility; and
(2) the Secretary can demonstrate that such responsibility
would not be carried out by the Secretary at a lower cost.
SEC. 406. DEMONSTRATION AUTHORITY; ANNUAL GRANTS.
(a) Demonstration Authority.--If the Secretary approves an
application to conduct a demonstration project under this
title, the Secretary shall, not later than 10 months after
the date of enactment of this title, authorize the applicant
to conduct the project for 4 project years in accordance with
the approved application and the requirements of this title.
(b) Grant Authority.--For each project year of a
demonstration project conducted under this title, the
Secretary may make a grant to the qualified entity authorized
to conduct the project. In making such a grant, the Secretary
shall make the grant on the first day of the project year in
an amount not to exceed the lesser of--
(1) the aggregate amount of funds committed as matching
contributions by non-Federal public or private sector
sources; or
(2) $1,000,000.
SEC. 407. RESERVE FUND.
(a) Establishment.--A qualified entity under this title,
other than a State or local government agency, or a tribal
government, shall establish a Reserve Fund which shall be
maintained in accordance with this section.
(b) Amounts in Reserve Fund.--
(1) In general.--As soon after receipt as is practicable, a
qualified entity shall deposit in the Reserve Fund
established under subsection (a)--
(A) all funds provided to the qualified entity by any
public or private source in connection with the demonstration
project; and
(B) the proceeds from any investment made under subsection
(c)(2).
(2) Uniform accounting regulations.--The Secretary shall
prescribe regulations with respect to accounting for amounts
in the Reserve Fund established under subsection (a).
(c) Use of Amounts in the Reserve Fund.--
(1) In general.--A qualified entity shall use the amounts
in the Reserve Fund established under subsection (a) to--
(A) assist participants in the demonstration project in
obtaining the skills (including economic literacy, budgeting,
credit, and counseling) and information necessary to achieve
economic self-sufficiency through activities requiring
qualified expenses;
(B) provide deposits in accordance with section 410 for
individuals selected by the qualified entity to participate
in the demonstration project;
(C) administer the demonstration project; and
(D) provide the research organization evaluating the
demonstration project under section 414 with such information
with respect to the demonstration project as may be required
for the evaluation.
(2) Authority to invest funds.--
(A) Guidelines.--The Secretary shall establish guidelines
for investing amounts in the Reserve Fund established under
subsection (a) in a manner that provides an appropriate
balance between return, liquidity, and risk.
(B) Investment.--A qualified entity shall invest the
amounts in its Reserve Fund that are not immediately needed
to carry out the provisions of paragraph (1), in accordance
with the guidelines established under subparagraph (A).
(3) Limitation on uses.--Not more than 9.5 percent of the
amounts provided to a qualified entity under section 406(b)
shall be used by the qualified entity for the purposes
described in subparagraphs (A), (C), and (D) of paragraph
(1), of which not less than 2 percent of the amounts shall be
used by the qualified entity for the purposes described in
paragraph (1)(D). If two or more qualified entities are
jointly administering a project, no qualified entity shall
use more than its proportional share for the purposes
described in subparagraphs (A), (C), and (D) of paragraph
(1).
(d) Unused Federal Grant Funds Transferred to the Secretary
When Project Terminates.--Notwithstanding subsection (c),
upon the termination of any demonstration project authorized
under this section, the qualified entity conducting the
project shall transfer to the Secretary an amount equal to--
(1) the amounts in its Reserve Fund at time of the
termination; multiplied by
(2) a percentage equal to--
(A) the aggregate amount of grants made to the qualified
entity under section 406(b); divided by
(B) the aggregate amount of all funds provided to the
qualified entity by all sources to conduct the project.
SEC. 408. ELIGIBILITY FOR PARTICIPATION.
(a) In General.--Any individual who is a member of a
household that is eligible for assistance under the State
temporary assistance for needy families program established
under part A of title IV of the Social Security Act (42
U.S.C. 601 et seq.), or that meets each of the following
requirements shall be eligible to participate in a
demonstration project conducted under this title:
(1) Income test.--The adjusted gross income of the
household does not exceed the earned income amount described
in section 32 of the Internal Revenue Code of 1986 (taking
into account the size of the household).
(2) Net worth test.--
(A) In general.--The net worth of the household, as of the
end of the calendar year preceding the determination of
eligibility, does not exceed $10,000.
(B) Determination of net worth.--For purposes of
subparagraph (A), 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.
(C) Exclusions.--For purposes of determining the net worth
of a household, a household's assets shall not be considered
to include the primary dwelling unit and one motor vehicle
owned by the household.
[[Page S9081]]
(b) Individuals Unable To Complete the Project.--The
Secretary shall establish such regulations as are necessary,
including prohibiting future eligibility to participate in
any other demonstration project conducted under this title,
to ensure compliance with this title 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 that project.
SEC. 409. SELECTION OF INDIVIDUALS TO PARTICIPATE.
From among the individuals eligible to participate in a
demonstration project conducted under this title, each
qualified entity shall select the individuals--
(1) that the qualified entity deems to be best suited to
participate; and
(2) to whom the qualified entity will provide deposits in
accordance with section 410.
SEC. 410. DEPOSITS BY QUALIFIED ENTITIES.
(a) In General.--Not less than once every 3 months during
each project year, each qualified entity under this title
shall deposit in the individual development account of each
individual participating in the project, or into a parallel
account maintained by the qualified entity--
(1) from the non-Federal funds described in section
405(c)(4), a matching contribution of not less than $0.50 and
not more than $4 for every $1 of earned income (as defined in
section 911(d)(2) of the Internal Revenue Code of 1986)
deposited in the account by a project participant during that
period;
(2) from the grant made under section 406(b), an amount
equal to the matching contribution made under paragraph (1);
and
(3) any interest that has accrued on amounts deposited
under paragraph (1) or (2) on behalf of that individual into
the individual development account of the individual or into
a parallel account maintained by the qualified entity.
(b) Limitation on Deposits for an Individual.--Not more
than $2,000 from a grant made under section 406(b) shall be
provided to any one individual over the course of the
demonstration project.
(c) Limitation on Deposits for a Household.--Not more than
$4,000 from a grant made under section 406(b) shall be
provided to any one household over the course of the
demonstration project.
(d) Withdrawal of Funds.--The Secretary shall establish
such guidelines as may be necessary to ensure that funds held
in an individual development account are not withdrawn,
except for one or more qualified expenses, or for an
emergency withdrawal. Such guidelines shall include a
requirement that a responsible official of the qualified
entity conducting a project approve such withdrawal in
writing. The guidelines shall provide that no individual may
withdraw funds from an individual development account earlier
than 6 months after the date on which the individual first
deposits funds in the account.
(e) Reimbursement.--An individual shall reimburse an
individual development account for any funds withdrawn from
the account for an emergency withdrawal, not later than 12
months after the date of the withdrawal. If the individual
fails to make the reimbursement, the qualified entity
administering the account shall transfer the funds deposited
into the account or a parallel account under section 410 to
the Reserve Fund of the qualified entity, and use the funds
to benefit other individuals participating in the
demonstration project involved.
SEC. 411. LOCAL CONTROL OVER DEMONSTRATION PROJECTS.
A qualified entity under this title, other than a State or
local government agency or a tribal government, shall,
subject to the provisions of section 413, have sole authority
over the administration of the project. The Secretary may
prescribe only such regulations or guidelines with respect to
demonstration projects conducted under this title as are
necessary to ensure compliance with the approved applications
and the requirements of this title.
SEC. 412. ANNUAL PROGRESS REPORTS.
(a) In General.--Each qualified entity under this title
shall prepare an annual report on the progress of the
demonstration project. Each report shall include both program
and participant information and shall specify for the period
covered by the report the following information:
(1) The number of individuals making a deposit into an
individual development account.
(2) The amounts in the Reserve Fund established with
respect to the project.
(3) The amounts deposited in the individual development
accounts.
(4) The amounts withdrawn from the individual development
accounts and the purposes for which such amounts were
withdrawn.
(5) The balances remaining in the individual development
accounts.
(6) 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.
(7) What service configurations of the qualified entity
(such as peer support, structured planning exercises,
mentoring, and case management) increased the rate and
consistency of participation in the demonstration project and
how such configurations varied among different populations or
communities.
(8) Such other information as the Secretary may require to
evaluate the demonstration project.
(b) Submission of Reports.--The qualified entity shall
submit each report required to be prepared under subsection
(a) to--
(1) the Secretary; and
(2) the Treasurer (or equivalent official) of the State in
which the project is conducted, if the State or a local
government or a tribal government committed funds to the
demonstration project.
(c) Timing.--The first report required by subsection (a)
shall be submitted not later than 60 days after the end of
the calendar year in which the Secretary authorized the
qualified entity to conduct the demonstration project, and
subsequent reports shall be submitted every 12 months
thereafter, until the conclusion of the project.
SEC. 413. SANCTIONS.
(a) Authority To Terminate Demonstration Project.--If the
Secretary determines that a qualified entity under this title
is not operating the demonstration project in accordance with
the entity's application or the requirements of this title
(and has not implemented any corrective recommendations
directed by the Secretary), the Secretary shall terminate
such entity's authority to conduct the demonstration project.
(b) Actions Required Upon Termination.--If the Secretary
terminates the authority to conduct a demonstration project,
the Secretary--
(1) shall suspend the demonstration project;
(2) shall take control of the Reserve Fund established
pursuant to section 407;
(3) shall make every effort to identify another qualified
entity (or entities) willing and able to conduct the project
in accordance with the approved application (or, as modified,
if necessary to incorporate the recommendations) and the
requirements of this title;
(4) shall, if the Secretary identifies an entity (or
entities) described in paragraph (3)--
(A) authorize the entity (or entities) to conduct the
project in accordance with the approved application (or, as
modified, if necessary, to incorporate the recommendations)
and the requirements of this title;
(B) transfer to the entity (or entities) control over the
Reserve Fund established pursuant to section 407; and
(C) consider, for purposes of this title--
(i) such other entity (or entities) to be the qualified
entity (or entities) originally authorized to conduct the
demonstration project; and
(ii) the date of such authorization to be the date of the
original authorization; and
(5) if, by the end of the 1-year period beginning on the
date of the termination, the Secretary has not found a
qualified entity (or entities) described in paragraph (3),
shall--
(A) terminate the project; and
(B) from the amount remaining in the Reserve Fund
established as part of the project, remit to each source that
provided funds under section 405(c)(4) 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 section 405(c)(4) bears to the
amount provided by all such sources under that section.
SEC. 414. EVALUATIONS.
(a) In General.--Not later than 10 months after the date of
enactment of this title, 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 title.
(b) Factors To Evaluate.--In evaluating any demonstration
project conducted under this title, the research organization
shall address the following factors:
(1) The effects of incentives and organizational or
institutional support on savings behavior in the
demonstration project.
(2) The savings rates of individuals in the demonstration
project based on demographic characteristics including
gender, age, family size, race or ethnic background, and
income.
(3) The economic, civic, psychological, and social effects
of asset accumulation, and how such effects vary among
different populations or communities.
(4) The effects of individual development accounts on
savings rates, homeownership, level of postsecondary
education attained, and self-employment, and how such effects
vary among different populations or communities.
(5) 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.
(6) The lessons to be learned from the demonstration
projects conducted under this title and if a permanent
program of individual development accounts should be
established.
(7) Such other factors as may be prescribed by the
Secretary.
(c) Methodological Requirements.--In evaluating any
demonstration project conducted under this title, the
research organization shall--
(1) for at least one site, use control groups to compare
participants with nonparticipants;
(2) before, during, and after the project, obtain such
quantitative data as are necessary to evaluate the project
thoroughly; and
(3) develop a qualitative assessment, derived from sources
such as in-depth interviews, of how asset accumulation
affects individuals and families.
(d) Reports by the Secretary.--
(1) Interim reports.--Not later than 90 days after the end
of the calendar year in which the Secretary first authorizes
a qualified entity to conduct a demonstration project under
this title, and every 12 months thereafter until all
demonstration projects conducted under this title are
completed, the Secretary shall submit to Congress an interim
report setting forth the results of the reports submitted
pursuant to section 412(b).
(2) Final reports.--Not later than 12 months after the
conclusion of all demonstration projects conducted under this
title, the Secretary shall submit to Congress a final report
setting forth the results and findings of all reports and
evaluations conducted pursuant to this title.
(e) Evaluation Expenses.--The Secretary shall expend such
sums as may be necessary,
[[Page S9082]]
but not more than 2 percent of the amounts appropriated under
section 416 for a fiscal year, to carry out the purposes of
this section.
SEC. 415. TREATMENT OF FUNDS.
Of the funds deposited in individual development accounts
for eligible individuals only the funds deposited by the
individuals (including interest accruing on those funds) may
be considered to be the income, assets, or resources of the
individuals, for purposes of determining eligibility for, or
the amount of assistance furnished under, any Federal or
federally assisted program based on need.
SEC. 416. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this
title, $25,000,000 for each of fiscal years 1999, 2000, 2001,
2002, and 2003 to remain available until expended.
Mr. COATS. Mr. President, I am pleased to bring before the Senate, on
behalf of the Committee on Labor and Human Resources, S. 2206, the
Coats Human Services Reauthorization Act of 1998.
This legislation is truly the result of a significant bi-partisan
effort. We have worked closely with members of the committee to make
important changes in program focus and in our expectations for
measurable outcomes.
Few federal programs engender the kind of positive feelings as do the
programs we are discussing today: Head Start, the Community Services
Block Grant, the Low Income Home Energy Assistance program, and a new
program--close to my heart, the Assets for Independence Act.
These programs all have one important thing in common--they represent
the federal government at its best, forging public and private
partnerships to combat the effects of poverty, and unleashing the vast
resources of one of our most important assets--the local community.
Whether in a Head Start classroom, a food bank, or a community action
agency, the programs we are about to reauthorize provide a valuable
link between families and the services and opportunities they need.
I have had the privilege of visiting a number of Head Start programs
in my own state, and have found at each one a common thread--the
commitment of staff and of parents to be there for their children. In
Head Start centers across America, parents serve as volunteers, as
teachers, as aides, in whatever capacity they are needed. Many have
told me that thanks to Head Start, they have gone on to higher
education. Thanks to Head Start, their children have hope for a future.
I say that it is thanks to their commitment as parents that their
children's hopes have been realized.
S. 2206 continues this legacy--and does so in a way that supports the
family as a unit. Head Start is a program serving children in families.
CSBG is a program serving families in communities. And Assets for
Independence makes it possible for families to become fully self
sufficient.
Before I briefly discuss the specifics issues addressed in the
legislation I want to thank members of the Committee (Senator Dodd,
Kennedy, Jeffords, DeWine and McConnell in particular) and of course
their staffs for their commitment to this process being open and bi-
partisan. I think the fruit of all of our efforts is in the bill we
will vote on today. I also would also like Karen Spar from the
Congressional Research Service who has been tireless in her efforts to
provide support to my staff and Liz Aldridge-King from the Office of
Legislative Counsel who worked virtually around the clock to get this
bill out on time. Thank you to all who contributed to this effort.
Head Start is a program that has been identified as one with enormous
potential in giving children an opportunity to realize their full
potential; however, it has been a program which has experienced varying
degrees of quality. With the 1994 reauthization, Congress and the
Administration formed an important partnership to devise ways to make
program quality a primary focus. Since the last reauthorization, the
Head Start Bureau has offered technical assistance, resources, and
support to Head Start programs that are committed to pursuing
excellence--and terminated the grants of those programs that were
experiencing significant program deficiencies. Close to 100 Head Start
grantees have been terminated or have relinquished their grants since
1994.
S. 2206 takes further steps to ensure quality and to make sure that
Head Start students attain the goal of school readiness by expanding
the use of quality improvement funds to provide staff training related
to the promotion of language skills and literacy growth of children and
the acquisition of English for children from non-English-speaking
backgrounds and by requiring the establishment of education performance
standards to ensure school readiness and that children develop a
minimum level of literacy awareness and understanding. Further, the
Secretary is directed to develop outcome-based performance measures and
to apply those measures to local grantees when evaluating program
effectiveness. Under this scenario, consistent poor performers would be
identified, offered technical assistance, and if they failed to correct
the deficiency--terminated and their grant re-competed.
We have responded to concerns that Head Start programs be able to
more fully respond to emerging needs of working families for full-day,
full-year services by significantly enhancing the collaboration grant
program in current law by requiring active collaboration between Head
Start, the State liaison appointed by the Governor, and other early
care and education programs within the State. We have attempted to
eliminate barriers to effective collaboration and have instructed the
Secretary to design an administrative structure whereby additional
barriers that are identified can be addressed. Taken together, these
provisions should make it much easier for States to include Head Start
in unified planning regarding early care and education services at the
state and local level.
To respond to the recent research on the importance of early brain
development, we have included the President's request for an expansion
of the Early Head Start program from 7.5 percent in FY 1999 to 10
percent in FY 2003. We have required the Secretary to set aside a
portion of these funds to provide technical assistance to ensure the
maintenance of program quality and given the Secretary the authority to
reduce the set aside amounts, if necessary to avoid a reduction in
regular Head Start services or quality.
To respond to the issue of improved teacher competence, we have added
a new section to the section in the law pertaining to staff
qualifications to ensure that each head start classroom has a teacher
with demonstrated competency to perform certain functions. This was
done in lieu of mandating additional degrees such as 2 or 4 year
college degree which is not the norm for preschools in America, and
which in fact, are not a good measure for teacher competence. Rather,
we focus on specific demonstrated competencies which must first be
achieved in order to qualify as a teacher.
During the last reauthorization in 1994 we required every Head Start
classroom to have a teacher with at least Child Development Associate
credential. With near accomplishment of that goal we wanted to make
sure that waivers to this requirement would only be given in the most
limited circumstance. Therefore we allow a 180-day waiver which will
only be available where a Head Start agency could document that it had
unsuccessfully attempted to recruit an individual with the required
credential, certificate or degree. Such a waiver would be for an
individual who is enrolled in a program that grants the appropriate
credential, and who will receive the appropriate credential within 180
days of beginning employment as a Head Start teacher.
In response to concerns raised by the General Accounting Office and
others about the lack of reliable research on Head Start which can be
used to determine its effectiveness, we have authorized a national
impact study of Head Start and also included, at the request of Senator
DeWine, several smaller comparative studies of children participating
in head start with eligible children who did not participate in Head
Start or other preschool programs. These studies should yield very
valuable information about how this program is working, and whether
Head Start is, as we all hope and believe it is, making a difference.
Title II of S. 2206 authorizes the Community Services Block Grant.
This program had not been updated since 1981 when CSBG came into
existence as a block grant. Therefore, we have done a complete redraft
of this program to bring it current and to make some very
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important changes to program structure and goals.
First, we have established some very specific program goals which
include strengthening community capabilities for planning, coordinating
and supporting innovative responses to community needs and conditions.
CSBG is an excellent example of what can happen when Washington gets
out of the way and allows local communities to design effective
responses to local problems. Ninety percent of the funds provided under
this act must be passed through by the State to local eligible entities
which include a variety of public and non-profit organizations,
community action agencies, and faith-based neighborhood organizations.
Second, we have established a mechanism for state monitoring of
eligible entities to determine whether such entities meet performance
goals, administrative standards, financial management requirements, and
other requirements of the state. Each State will be required to
participate in a performance measurement system, although they will be
able to choose from a menu of priorities to reflect the current program
they are instituting at the local level.
Third, we have grand fathered in all existing public CAPS but are
requiring that any new public CAPS may come into existence only if
there is no private, nonprofit organization identified or qualified to
serve as the CSBG recipient. Like private nonprofit agencies, public
CAPS would have to agree to administer their program through a local
tripartite board and ensure adequate low income representation on it.
Fourth, with respect to the discretionary programs under CSBG, we
have reauthorized the Community Economic Development program, the Rural
Community Development program, National Youth Sports, and Community
Food and Nutrition. We have created a new program called Neighborhood
Innovation Projects for grants to neighborhood based, private non-
profits to test or assist in the development of new approaches or
methods of dealing with community problems. These grants may be used
for a variety of purposes including gang interventions, addressing
school violence, or any other purposes that are identified by the
community as a problem resulting from poverty and consistent with the
purposes of this CSBG.
Title III are reauthorizes the Low Income Home Energy Assistance
Program at the current level of $2 billion for each of the fiscal years
1999 through 2004. The amount available for leveraging is reduced from
$50,000,000 to $30,000,000 except in any year in which appropriations
fall below $1.4 billion at which time the leveraging pot goes back to
$50,000,000.
The most significant change in this program is the addition of a new
section which clarifies the criteria by which LIHEAP funds can be
released in an emergency or natural disaster. Currently, there is an
arbitrary standard for determining an emergency or natural disaster,
this language will rectify this problem by listing standards under
which funds may be released which may include: significant home energy
supply shortage or disruption; a significant increase in the cost of
home energy, as determined by the secretary; a significant increase in
home energy disconnections reported by a utility, a state regulatory
agency, or another agency with necessary data; significant increase in
participation in a public benefit program such as the food stamp
program; a significant increase in unemployment or layoffs; or any
other event meeting criteria as the secretary may determine to be
appropriate.
This is an important addition, and I would like to thank Senators
Jeffords and Kennedy for their leadership in this matter.
Finally, Title IV establishes a five year demonstration program to
determine the social, civic, psychological and economic effects that
Individual Development Account (IDA) savings accounts can have on low
income individuals and their families.
In some respects, IDAs are like IRAs for the working poor. They are
dedicated savings accounts that can be used for purchasing a first
home, post-secondary education, or capitalizing a business. These
investments are associated with extremely high rates of return that
have the potential to bring a new level of economic and personal
security to families and communities.
The individual or family deposits whatever they can save (typically
$5-$20 a month) in the account. The sponsoring organization ``matches''
that deposit with funds provided by local churches and service
organizations, corporations, foundations, and state or local
governments.
The intent of this demonstration program is to encourage participants
to develop and reaffirm strong habits for saving money. To assist this,
sponsor organizations will provide participating individuals and
families intensive financial counseling and counseling to develop
investment plans for education, home ownership, and entrepreneurship.
In addition, participating welfare and low-income families build
assets whose high return on investment propels them into independence
and stability. The community will also benefit from the significant
return on an investment in IDAs: we can expect welfare rolls to be
reduced; tax receipts to increase; employment to increase; and local
enterprises and builders can expect increased business activity.
Neighborhoods will be rejuvenated as new microenterprises and increased
home renovation and building drive increased employment and community
development.
In fact, it is estimated that an investment of $100 million in asset
building through these individual accounts would generate :7,050 new
businesses; 68,799 new jobs; $730 million in additional earnings;
12,000 new or rehabilitated homes; $287 million in savings and matching
contributions and earnings on those accounts; 188 million in increased
assets for low-income families 6,600 families removed from welfare
rolls 12,000 youth graduates from vocational education and college
programs; 20,000 adults obtaining high school, vocational, and college
degrees.
IDAs are planned or now available on a small scale across the
country, including Indiana, Illinois, Virginia, Oregon, and Iowa. The
Assets for Independence Act has been developed after a review of
numerous, similar, successful programs, and most notably one run by the
Eastside Community Investments community development corporation in
Indianapolis, Indiana. This provision incorporates a number of
protections developed with their assistance and based on their
experience.
Mr. President, taken together, I think we have an excellent package
of programs designed to reauthorize programs which have been vital to
many low-income individuals and communities. These programs are for the
most part locally designed and controlled and offer unique
opportunities for self-sufficiency and enhanced community involvement.
Mr. JEFFORDS. Mr. President, I am pleased the Senate has turned to
consideration of the Community Opportunities, Accountability, Education
and Training Services Act of 1998--the COATS Act--which reauthorizes
the Human Services Act. This legislation, sponsored by Senator Coats,
Senator Dodd, myself, and Senator Kennedy, was voted unanimously out of
the Senate Labor and Human Resources Committee on June 24, 1998, and
continues to have broad bipartisan support.
This bill includes the reauthorization of three of our most important
programs providing services and assistance to the neediest of
Americans: the Head Start program, the Community Services Block Grant,
and the Low Income Home Energy Assistance Program. It also includes a
new program, the Assets for Independence Act, to empower these citizens
into achieving economic independence.
This legislation draws upon over thirty years of experience with
these programs. While each of these programs is working--and working
well--there are clearly some things that we can be doing better. So
while this bill leaves present law largely intact, it does include some
important changes to make these programs more accountable and more
effective in carrying out the specific tasks that we have asked of
them.
The Head Start Program has been instrumental in helping many children
enter school ready to learn. It goes beyond child care, by providing
medical, dental, and other services to children enrolled in the
program. However, I believe that its major contribution has been to
support parents in their role as
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the primary teacher for their children. Head Start is a comprehensive
service program that has made a difference in the lives of so many
children and their parents.
While most of us know the difference that Head Start has made in the
lives of millions of children and their parents, it is important that
we continue to ensure that the program is the very best it can be. This
reauthorization includes a major evaluation and research initiative. I
believe this research will help demonstrate the positive impact of high
quality, comprehensive services for children and families. More
importantly, this initiative can provide the American people with more
information about how best to help prepare all of our children for the
challenges that lie ahead in the next century.
We also have increased funding for the Infant and Toddler Head Start
program. Although this program is relatively new, the emerging research
on early brain development clearly indicates that tremendous benefits
can be gained by supporting parents in their efforts to be good parents
for their children. Few young parents have the family and community
support networks that were once such an integral part of raising
children. The Infant and Toddler program strives to re-create those
networks in order to help mothers and fathers better meet the
challenges of parenthood.
One of the more controversial changes in this year's reauthorization
is the inclusion of for-profit providers as eligible grantees for Head
Start. Yet, working with Senators Kennedy and Dodd, we were able to
reach an acceptable compromise that makes clear exactly what is and is
not allowed. Briefly, the legislation opens up the competitive process
to another segment of child care and human service provider . However,
it does not require the Secretary to award a grant to a non-profit
entity. It does not lessen the requirements and standards that any Head
Start program must meet. I do not believe that, by virtue of an
organization's tax status, it is either more or less capable of
providing the high quality of services which we require of all Head
Start grantees. I am pleased that an agreement on this issue has been
reached.
The second major program authorized under this legislation is the
Community Services Block Grant. This program provides funding which
enables States to work with their communities to reduce poverty. That's
an easily defined goal, but getting there takes lots of work. Because
it is locally-driven and community-based, the CSBG is used differently
in every community--drawing upon available strengths and resources to
meet the unique needs of each.
In Vermont, the CSBG serves communities all across our state, from
Brattleboro to the Northeast Kingdom. Under the current formula,
Vermont receives a little more than $2.6 million in CSBG funds. Whether
it's using CSBG dollars to help the underprivileged learn new job
skills or go back to school, or helping families become self-sufficient
by teaching them how to search for affordable housing or simply work
within a budget, I think countless families and communities in our
State would agree that the initial investment has earned priceless
returns. Communities are using those dollars to make a difference.
For this reason, I am pleased that we have made only minor
adjustments in these programs, and that most of these changes make some
necessary improvements that will allow us to better determine the
effectiveness of CSBG programs. For example, this bill requires states
to monitor their grantees to determine whether they are meeting
performance goals, administrative standards, and financial management
requirements. The bill also establishes state and federal
accountability and reporting provisions, and requires grantees to
participate in a performance measurement system. Presently, grantees
may participate in this system, but are not required to do so. The
changes in this bill mean that we will be able to better monitor the
progress of programs and measure the effectiveness of the delivery of
programs.
I want to point out, however, that I am aware that through a
technical change that we were unable to remove at the last minute, this
legislation contains language repealing the Community Economic
Development program. This was brought to my attention, and to the
attention of the Ranking Member, last Friday, and we have taken steps
to remedy the situation. Our House colleagues have indicated their bill
will not repeal this provision, and Senator Coats and I have pledged
that we will remove the language repealing this program in conference.
This is a matter that was due to a technical oversight only; it is
certainly not the intention of the committee to end this program, and I
am grateful for the assistance of Congressman Bill Goodling and his
staff in helping us resolve this matter satisfactorily.
I also want to mention that I know there was some concern about
allowing faith-based organizations to participate as direct grantees in
CSBG programs. I want to be clear that this bill does not allow faith-
based organizations any priority in becoming grantees. It simply says
that they may participate. If a faith-based organization receives a
grant, it will still be expected to run quality programs and operate in
the same way any other grantee would, including establishing a tri-
partite board to administer the programs. Further, there is language in
this bill essentially grandfathering in existing community action
agencies as eligible grantees, so there should not be a concern that
current grantees will suddenly find themselves jockeying for funding.
If they are delivering good services, they may continue to do so.
There was also some concern over including a new program, the
Neighborhood Innovation Project, as an allowable activity under the
discretionary account because it would mean less funds for the other
programs authorized in the account. Let me explain why this is not the
case--and, in fact, if Congressional appropriators follow the
authorization carefully, there should be more funding for programs
within this account.
Under current law, the discretionary account receives a set-aside of
nine percent of the CSBG funds. Presently, the discretionary account
only contains the community economic development programs and the rural
community development programs as allowable expenditures. However, at
appropriations time, the appropriators have been folding the National
Youth Sports program (NYSP) and the Community Food and Nutrition Act
(CFNP) into the nine percent set-aside. What the law actually says--and
what this bill reinforces--is that the NYSP and the CFNP program are
both worthwhile programs that should receive separately appropriated
line-items; they should not be competing with the community economic
development and rural community development initiatives to receive a
part of that nine-percent set-aside. I hope the appropriators will
follow the authorization and limit the programs funded through the
nine-percent set-aside.
Under the new bill, we maintain the NYSP and CFNP as separate
accounts that do not compete with programs in the discretionary
account. I know this all sounds like maudlin bookkeeping, but what it
means is that, even with the new Neighborhood Innovation Project
included in the discretionary account, there are now only three
programs among which the discretionary account can be divided, not
four. That should mean funding can go a little bit further for these
programs. Meanwhile, the NYSP and CNFP can receive their own separate
streams of funding. That is clearly our intent.
While on the subject of the NYSP, let me just mention one change we
made in the current program to ensure a more comprehensive delivery of
services. What this legislation would do is link youth who participate
in this five week summer program to community-based youth services that
can serve their needs all year long.
The third major program reauthorized in this legislation is the Low
Income Home Energy Assistance Program (LIHEAP), which, due to the
forward-funded nature of the program, is authorized through 2004. The
program provides assistance to 4.3 million low-income households to
help families pay their heating and cooling bills. LIHEAP is a state
block grant program that has faced more than its fair share of budget
cuts. In fact, I am very dismayed that appropriators on the House side
have voted to slash funding for the program.
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Our bill reauthorizes the program at the $2 billion level and
continues to authorize funds to be released on an emergency basis by
the President. On that subject, we have included language that
clarifies the criteria under which LIHEAP funds can be released during
an emergency or natural disaster. Last winter, when much of Northern
New England was devastated by a 100-year ice storm, 53 Senators
unsuccessfully wrote to the President asking him to release LIHEAP
emergency funds. Our bill includes language that will help states
obtain funds when they face similar natural or economic disasters.
Finally, this bill authorizes a new, $25 million program known as the
Assets for Independence Act. This new program builds upon the
Individual Development Accounts that we allowed under welfare reform.
The Assets for Independence Act would help qualified, poor individuals
establish individual savings accounts that they can later use for post-
secondary education, purchase of a first home, or business
capitalization.
In Vermont, we are already operating a program very much like this
under our welfare waiver. However, Vermont's program does not look
exactly like what is in this bill, and I want to make it clear that
Vermont, and any other state, may continue to operate existing IDA
programs as they deem fit, using their existing resources. States do
not have to make their program look like those established in this bill
unless they specifically apply for the funding made available under
this section. What is in this bill does not override any existing IDA
program. Knowing this, I am pleased we were able to include this new
section in the bill, as I know it has been a priority for Senator
Coats, and I commend him for working with me to ensure that Vermont can
continue to run its existing programs.
This legislation is the result of months of hard work, negotiation,
and compromise. This is a very good bill that deserves the support of
the Senate. It reinforces what works in these programs, and discards
what does not. It continues the mission that we began many years ago of
empowering communities to help their most vulnerable populations, and
it does this in a responsible manner.
I am pleased with the bipartisan atmosphere that has surrounded this
bill so far, and I look forward to finishing the reauthorization in the
same manner. I want to thank Senator Coats for his excellent work on
this important legislation. As always, it is a pleasure working with
him, and I want to commend him for his hard work in crafting this
compromise. Senator Kennedy and Senator Dodd were instrumental in
drafting this bill and moving it through the committee, and each has
left a definite mark on this legislation. I also appreciate the
valuable input from Senators DeWine and Ashcroft in drafting some key
provisions of the bill.
There are a number of staff who have worked very hard on this
legislation who deserve recognition for their efforts. In particular, I
want to thank Stephanie Monroe with Senator Coats--her effort was
extraordinary; Suzanne Day, Jeanne Ireland and Jim Fenton with Senator
Dodd; Stephanie Robinson with Senator Kennedy; and Geoff Brown,
Kimberly Barnes-O'Connor and Brian Jones of my staff. In addition, I
want to note the contributions of Vince Ventimiglia with Senator Coats
on the IDA section; Aaron Grau with Senator DeWine for his help with
migrant and seasonal Head Start; Robin Bowen with Senator McConnell for
her assistance on the CED correction; and Denzel McGuire with Chairman
Goodling for her help in assuring a smooth debate with the House.
Again, Mr. President, I am proud of this legislation and of all the
work that has gone into it. I look forward to working with our House
colleagues to approve final legislation, with broad bipartisan support,
before the 105th Congress adjourns for the year.
I yield the floor.
Mr. McCONNELL. Mr. President, I want to thank Senator Coats and
Senator Jeffords for their exemplary work on the Coats Act's
reauthorization of Head Start, Community Services Block Grants. Low-
Income Home Energy Assistance, and the new authorization for an
Individual Development Account demonstration.
In particular, I appreciate their commitment to address a matter of
serious concern to me regarding provisions that would unintentionally
impact the Rural Development Loan Fund currently administered by the
U.S. Department of Agriculture.
The Coats Act includes the repeal of section 407 of the Human
Services Reauthorization Act of 1986 and the Community Economic
Development Act. These statutory repeals were included to achieve a
reasonable clarification of the statutory authority held by the U.S.
Department of Health and Human Services. Upon further examination of
these provisions after the committee mark-up, we discovered that this
house-keeping action for HHS would eliminate provisions essential to
the USDA's administration of the Rural Development Loan Fund, a lending
program that has provided vital economic support to several communities
in Kentucky.
I understand that during conference, Senators Coats and Jeffords have
agreed to recede to the House position and drop the Coats Act
provisions that repeal section 407 and CEDA.
Mr. COATS. That is correct. We were attempting to do a significant
cleanup of a statute that has not been modified in any real way since
1981. We were informed that these programs were obsolete and had not
received funding from the Department of Health and Human Services for
some time. We therefore, as part of a package of technical corrects
identified to bring the statute into conformity, repealed these two
programs. Senator McConnell was very helpful in bringing this error to
our attention and we have given him our assurance that it will be
corrected in Conference with the House.
Mr. McCONNELL. I thank the Senator from Indiana for his commitment to
resolve this issue, and greatly appreciate his understanding of the
Rural Development Loan Fund's importance to Kentucky's efforts to spur
economic growth in rural areas.
Mr. DODD. Mr. President, I am very pleased that today we take up the
reauthorization of the the Community Opportunities, Accountability,
Training and Educational Services (COATS) Act, which includes Head
Start, LIHEAP and the Community Service Block Grant. This bill is
sponsored by Chairman Jeffords, Senator Kennedy, Senator Coats, and
myself, and was reported unanimously by the Labor and Human Resources
Committee a month ago. This strong record of bipartisan support is a
clear statement of how we all view these crucial programs. But it is
also a testament to the leadership of Senator Coats on this
legislation. As a tribute, we on the Committee insisted on naming this
important bill after him.
This bill is fundamentally about improving the reach of opportunity
in America to all of our citizens.
Head Start will serve over 830,000 children and their families this
year; nearly 6,000 in my home state of Connecticut. These families and
their children will receive access to the nation's leading child
development program. Head Start focuses on the needs of the whole
child. Inherently, we know that a child cannot be successful if he or
she has unidentified health needs, if his or her parents are not
involved in their education, and if he or she is not well-nourished or
well-rested. Head Start is the embodiment of those concerns and works
each day to meet children's critical needs.
The bill before us today further strengthens the Head Start program:
We continue the expansion of the Early Head Start program, increasing
the set aside for this program to 10 percent in FY 2002. Anyone who has
picked up a magazine or newspaper within the last year knows how vital
the first three years of a child's life are to their development. This
program, which we established in 1994, extends comprehensive, high-
quality services to these young children and their parents, to make
sure the most is made of this window of opportunity.
We have added new provisions to encourage collaboration within states
and local communities as well as within individual Head Start programs
to expand the services they offer to families to full-day and full-year
services, where appropriate, and to leverage other child care dollars
to improve quality and better meet family needs.
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We emphasize the importance of school readiness and literacy
preparation in Head Start. While I think this has always been a
critical part of Head Start, this bill ensures that gains will continue
to be made in this area.
Mr. President, this bill puts Head Start on strong footing as we
approach the 21st Century. It is a framework within which Head Start
can continue to grow to meet the needs of more children and their
families. What is unfortunate is that we cannot guarantee more funding
for Head Start--I think it is shameful that there are waiting lists for
Head Start and that only 40 percent of eligible children are served by
this program. And Early Head Start, which is admittedly a new program,
serves just a tiny fraction of the infants and toddlers in need of
these services.
The President has set a laudable goal to reach 1 million children by
2002. But I say we need to do more. We need a plan to serve 2 million
children--all those eligible and in need of services--as soon as
possible.
Some argue that meeting the goal of fully funding Head Start will be
too costly. Yes, it will cost a great deal to get there. But my
question is how much more will it cost not to get there?
Studies show us that children in quality early childhood development
programs, such as Head Start, start school more ready to learn than
their non-Head Start counterparts. They are more likely to keep up with
their classmates, avoid placement in special education, and graduate
from high school. They are also less likely to become teenage mothers
and fathers, go on welfare, or become involved in violence or the
criminal justice system.
How much does it cost when we don't see these benefits?
I know this is an issue for another place and another venue. But I am
hopeful as we strengthen the program we can also strengthen our resolve
to expand this successful program to more children and their families.
Mr. President, the bill before us also makes important changes to the
Community Services Block Grant program. CSBG makes funds available to
states and local communities to assist low-income individuals and help
alleviate the causes of poverty. One thousand local service providers--
mainly Community Action Agencies--use these federal funds to address
the root causes of poverty within their communities. CSBG dollars are
particularly powerful because local communities have substantial
flexibility in determining where these dollars are best spent to meet
their local circumstances.
I have had the pleasure of visiting Community Action Agencies in
Connecticut many times. They are exciting, vibrant places at the very
center of their communities--filled with adults taking literacy and job
training courses, children at Head Start centers, seniors with housing
or other concerns, and youths participating in programs or volunteering
their time.
To see clearly how critical the CSBG program is to the nation's low
income families, one only needs to look at the statistics. The CSBG
program in 1995 served more than 11.5 million people, or one in three
Americans living in poverty. Three-quarters of CSBG clients have
incomes that fall below the federal poverty guideline.
This bill recognizes the fundamental strength of this program and
makes modest changes to encourage broader participation by neighborhood
groups. In addition, it improves the accountability of local programs.
This bill also reauthorizes the vitally important Low Income Home
Energy Assistance Program, or LIHEAP. Nearly 4.2 million low-income
households received LIHEAP assistance during FY1996, more than 70,000
households in Connecticut. One quarter of those assisted by LIHEAP
funds are elderly. Another 25 percent are individuals with
disabilities. I cannot overvalue the importance of this assistance--it
is nearly as necessary as food and water to a low-income senior citizen
or family with children seeking help to stay warm in the winter--or as
we have seen recently in the Southwest--to stay cool during the summer.
This bill makes no fundamental changes to the LIHEAP program. I am
very pleased we increase the authorization of the program to $2
billion, which recognizes the great need for this help. I wish House
appropriators, who eliminated the program earlier this month, shared
this commitment to meeting these most basic needs. We also put into
place a system to more accurately and quickly designate natural
disasters. Early disaster designation will allow for the more efficient
distribution of the critically important emergency LIHEAP funds, aiding
States devastated by a natural disaster.
This bill contains one new, important program--the Individual
Development Accounts, based on a bill offered by Senator Coats and
Senator Harkin. Individual Development Accounts, or IDA's, are
dedicated savings accounts for very low income families, similar in
structure to IRA's, that can be used to pay for post-secondary
education, buy a first home, or capitalize a business. This program is
a welcome addition to the Human Services Act family. The Assets for
Independence title will provide low-income individuals and families
with new opportunities to move their families out of poverty through
savings.
This is strong bill and it is a good bill. And I want to thank
Senator Coats again for his committed leadership on this important
bill.
Mr. KENNEDY. Mr. President, the Human Services Reauthorization Act
before us today is landmark legislation and is backed by a broad bi-
partisan coalition. It represents legislation at its best, with Members
on both sides of the aisle working closely together and with the
Administration to achieve better results for America's children.
I commend Senator Jeffords, Senator Coats, and Senator Dodd for their
leadership in making this bill a reality. Together we have produced
legislation that preserves and enhances these needed family programs
while addressing the concerns that have been raised. Our bipartisan
goal is to take these worthwhile programs and make them even better.
The pending bill is an important step toward a more effective family
policy. This legislation consolidates, reorganizes, and reauthorizes
services for poor families and their children by investing in programs
to strengthen families, promote child development, and build
communities. In keeping with efforts to reinvent government, the Act
promotes one-stop shopping by consolidating several existing
categorical programs into more comprehensive and coordinated programs.
It improves performance by developing outcome measures and monitoring
progress, and it puts families first by promoting self-sufficiency. We
have worked carefully to draft a bill that addresses the concerns of
Senators on both sides of the aisle. I urge my colleagues to support
this important bill, and I urge my colleagues in the House, both
Democrat and Republican, to join together as we have to provide
services to America's families.
Title I: Head Start Act of 1998
Title I of the bill reauthorizes Head Start while making improvements
in this strong and effective program. The 1994 Act significantly
improved the quality and scope of Head Start services. The bill before
us today recognizes these successes and builds on them.
Before we acted in 1994, the Carnegie Foundation had released a
report which called for a greater national effort to support low-income
children, particularly those under age 3 who are at the greatest risk.
The period between birth and age three is critical to be a child's
development. Synapses not formed in a child's brain period can never be
formed later.
We responded to these findings by introducing the Early Head Start
program to provide comprehensive services to families who qualify for
Head Start and who have children under age 3. We introduced this
program by phasing it in gradually over 4 years, and it is now
providing crucial services to 40,000 of the nation's neediest infants
and toddlers.
The present bill continues to gradually expand this vital program, in
keeping with advice from experts on child development. Early Head Start
will be expanded to twice its size by 2002, so that 80,000 children can
receive these services. This expansion will still serve only 1 out of
every 25 eligible babies and toddlers, but it will give us more
knowledge and experience on how to help most at this crucial period in
children's lives.
[[Page S9087]]
We have also added to Early Head Start a training and technical
assistance fund which will enable the program to grow in quality. To
maximize its effectiveness, it is important to ensure the highest
possible quality. The set-aside in Head Start has helped to maintain
and improve the quality of these services, and Early Head Start needs
similar safeguards.
In 1994, we also made significant improvements to Head Start by
implementing stringent quality standards. As a result, dozens of
programs not meeting these standards were closed down, and many more
were brought back to health and now serve as strong programs. Today, we
build on these improvements by adding requirements that ensure that
children with disabilities will receive services appropriate to their
needs and that Head Start centers will be physically accessible to
children and their families. We have also sought more research, so that
we can continue to build on this program in the most effective ways
possible in future years.
This legislation also includes three other priorities. It
reauthorizes and amends the Community Services Block Grant and the Low
Income Home Energy Assistance Program, and it creates demonstration
projects to study the benefits of Individual Development Accounts.
title ii: community services block grant act of 1998
This bill recognizes the strength of the Community Services Block
Grant program and leaves it largely unchanged. I am proud to have been
a supporter of the Community Action Agencies funded under the CSBG
block grants as long as I have been in the Senate. Robert Kennedy, as a
Senator, sponsored the original Community Development Corporation
legislation that is now funded under these block grants. Community
Action Programs were created to respond to the complex social problems
that face low-income individuals, families, and communities. These
community-based public-private partnerships are a central part of the
low-income service delivery network. In reauthorizing the Community
Service Block Grant, we are promoting self sufficiency, family
stability, and community revitalization.
title iii: liheap
This legislation also reauthorizes the Low-Income Home Energy
Assistance Program through the year 2004. For over four million LIHEAP
beneficiaries across the nation, including 112,000 in Massachusetts,
this program has made a major difference in the lives of thousands of
working families and elderly households. Last week in Texas, for
example, LIHEAP funds were made available to help families suffering
from the triple-digit temperatures.
LIHEAP does more than just keep households warm in the winter and
cool in the summer. It is also a lynchpin for self-sufficiency.
Many working parents are concerned about the health of their
families. Researchers at Boston City Hospital have found that higher
utility bills during the coldest months force low-income families to
spend less money on food--the so-called ``heat or eat'' effect.
Unfortunately, the House Appropriations Committee voted to eliminate
funding for this important program. Unless this funding is restored--
and I am confident that it will be in the Senate--it will be a very
cold Winter for millions of LIHEAP recipients across the nation.
By reauthorizing LIHEAP, the Senate will be placing this program on a
solid footing for the future. I am especially pleased that this
legislation includes provisions that I sponsored with Senators Jeffords
and Senator Harkin to clarify the criteria for the President to release
emergency LIHEAP funds, so that needed funds can help low-income
families adversely affected by hot or cold weather, ice storms, floods,
earthquakes, and other natural disasters get through the emergency. In
addition, it will enable the release of emergency LIHEAP funds if there
is a significant increase in unemployment or home energy
disconnections.
title iv: individual development accounts
Finally, this bill establishes Independent Development Account
demonstration projects. This program will determine whether providing
matching funds to poor individuals using savings accounts is an
effective way to encourage them to save for their futures and develop
self sufficiency. States and towns with such programs have seen
impressive results. The demonstration projects in today's bill will
enable us to see whether these programs can be effective nationwide.
This bipartisan bill puts families first. It is an excellent example
of what happens when we work together in the interest of American
families. This legislation will benefit millions of families living in
poverty, and will bring immeasurable benefits to our society as a
whole. I urge the Senate to approve it.
Mr. HATCH. Mr. President, I ask unanimous consent the committee
substitute be agreed to, the bill be read a third time, and passed, the
motion to reconsider be laid upon the table, and that any statements
relating to S. 2206 appear in the Record.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Committee amendment was agreed to.
The bill was ordered to be engrossed for a third reading and was
deemed read the third time.
The bill (S. 2206), as amended, was passed.
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