[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2206 Enrolled Bill (ENR)]
S.2206
One Hundred Fifth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twenty-seventh day of January, one thousand nine hundred and ninety-
eight
An Act
To amend the Head Start Act, the Low-Income Home Energy Assistance Act
of 1981, and the Community Services Block Grant Act 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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

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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''.

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The table of contents for this Act is as follows:

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01869a907ffdf719b37896e7cd0c1feec2e936fa418207fbdd709b6345489541

TITLE I

-HEAD START PROGRAMS

This title may be cited as the ``Head Start Amendments of 1998''.

facd74b47f1fc2e8d49b72e952b1cedef68a0aefc591ba579b3f9e18febbb6a6

Section 636 of the Head Start Act (42 U.S.C. 9831) is amended to
read as follows:
``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, based on family needs assessments, to be
necessary.''.

5fc607df36cf1f61d6ea7595005683ae9ff12c4d5443f1a375bf179ae858a1cb

Section 637 of the Head Start Act (42 U.S.C. 9832) is amended--
(1) by redesignating paragraphs (1) and (2) as paragraphs (16)
and (17) and inserting the paragraphs at the end of the section;
(2) by inserting before paragraph (3) the following:
``(1) 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.
``(2) 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.'';
(3) by striking paragraph (4);
(4) by redesignating paragraph (3) as paragraph (4);
(5) by inserting after paragraph (2) the following:
``(3) The term `family literacy services' means services that
are of sufficient intensity in terms of hours, and of sufficient
duration, to make sustainable changes in a family, and that
integrate all of the following activities:
``(A) Interactive literacy activities between parents and
their children.
``(B) Training for parents regarding how to be the primary
teacher for their children and full partners in the education
of their children.
``(C) Parent literacy training that leads to economic self-
sufficiency.
``(D) An age-appropriate education to prepare children for
success in school and life experiences.'';
(6) in paragraph (6), 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.'';
(7) by striking paragraph (12) and inserting the following:
``(12) The term `migrant and 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.'';
(8) by inserting after paragraph (14) the following:
``(15) The term `scientifically based reading research'--
``(A) means the application of rigorous, systematic, and
objective procedures to obtain valid knowledge relevant to
reading development, reading instruction, and reading
difficulties; and
``(B) shall include research that--
``(i) employs systematic, empirical methods that draw
on observation or experiment;
``(ii) involves rigorous data analyses that are
adequate to test the stated hypotheses and justify the
general conclusions drawn;
``(iii) relies on measurements or observational methods
that provide valid data across evaluators and observers and
across multiple measurements and observations; and
``(iv) has been accepted by a peer-reviewed journal or
approved by a panel of independent experts through a
comparably rigorous, objective, and scientific review.'';
and
(9) in paragraph (17) (as redesignated in paragraph (1))--
(A) by striking ``Term'' and inserting ``term'';
(B) by striking ``Virgin Islands,'' and inserting ``Virgin
Islands of the United States, and the Commonwealth of the
Northern Mariana Islands, but for fiscal years ending before
October 1, 2001 (and fiscal year 2002, if the legislation
described in section 640(a)(2)(B)(iii) has not been enacted
before September 30, 2001), also means''; and
(C) by striking ``Palau, and the Commonwealth of the
Northern Mariana Islands.'' and inserting ``and the Republic of
Palau.''.

ad2b73240093d960829e51f488e846e4d054d6fd3ae705f6fe2ee0d85bb7ec00

Section 638(1) of the Head Start Act (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;''.

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Section 639 of the Head Start Act (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 paragraphs (1) and (2) 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 the amount that 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.''.

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(a) Allotments.--Section 640(a) of the Head Start Act (42 U.S.C.
9835(a)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A)--
(i) by striking ``and migrant'' the first place it
appears and all that follows through ``handicapped
children'', and inserting ``Head Start programs, services
for children with disabilities, and migrant and seasonal
Head Start programs'';
(ii) by striking ``and migrant'' each other place it
appears and inserting ``Head Start programs and by migrant
and seasonal''; and
(iii) by striking ``1994'' and inserting ``1998'';
(B) in subparagraph (B), by striking ``(B) payments'' and
all that follows through ``Virgin Islands according'' and
inserting the following:
``(B) payments, subject to paragraph (7)--
``(i) to Guam, American Samoa, the Commonwealth of the
Northern Mariana Islands, and the Virgin Islands of the United
States;
``(ii) for fiscal years ending before October 1, 2001, to
the Federated States of Micronesia, the Republic of the
Marshall Islands, and the Republic of Palau; and
``(iii) if legislation approving renegotiated Compacts of
Free Association for the jurisdictions described in clause (ii)
has not been enacted before September 30, 2001, for fiscal year
2002 to those jurisdictions;
according'';
(C) in subparagraph (C), by striking ``; and'' and
inserting ``, of which not less than $3,000,000 of the amount
appropriated for such fiscal year shall be made available to
carry out activities described in section 648(c)(4);'';
(D) 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'';
(E) by inserting after subparagraph (D) the following:
``(E) payments for research, demonstration, and evaluation
activities under section 649.''; and
(F) by adding at the end the following: ``No Freely
Associated State may receive financial assistance under this
subchapter after fiscal year 2002.'';
(2) in paragraph (3)--
(A) in subparagraph (A)(i), by striking ``equal'' and all
that follows through ``amount;'' and inserting ``equal to the
sum of--
``(I) 60 percent of such excess amount for fiscal year 1999, 50
percent of such excess amount for fiscal year 2000, 47.5 percent of
such excess amount for fiscal year 2001, 35 percent of such excess
amount for fiscal year 2002, and 25 percent of such excess amount
for fiscal year 2003;'';
(B) 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'';
(iii) in clause (v), by inserting ``and collaboration
efforts for such programs'' before the period;
(iv) in clause (vi), by striking the period and
inserting ``, and are accessible to children with
disabilities and their parents.'';
(v) by redesignating clause (vii) as clause (viii); and
(vi) 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 scientifically based reading research, as
predictive of later reading achievement.'';
(C) in subparagraph (C)--
(i) in clause (i)--
(I) in subclause (I)--
(aa) by striking ``this subparagraph'' and
inserting ``this paragraph'';
(bb) by striking ``of staff'' and inserting
``of classroom teachers and other staff'';
(cc) by striking ``such staff'' and inserting
``qualified staff, including recruitment and
retention pursuant to achieving the requirements
set forth in section 648A(a)''; and
(dd) by adding at the end the following:
``Preferences in awarding salary increases, in
excess of cost-of-living allowances, with such
funds shall be granted to classroom teachers and
staff who obtain additional training or education
related to their responsibilities as employees of a
Head Start program.'';
(II) in subclause (II), by striking ``the
subparagraph'' and inserting ``this subparagraph''; and
(III) by adding at the end the following:
``(III) From the remainder of the amount reserved under this
paragraph (after the Secretary carries out subclause (I)), the
Secretary shall carry out any or all of the activities described in
clauses (ii) through (vii), placing the highest priority on the
activities described in clause (ii).'';
(ii) by amending clause (ii) to read as follows:
``(ii) To train classroom teachers and other staff to meet the
education performance standards described in section 641A(a)(1)(B),
through activities--
``(I) to promote children's language and literacy growth,
through techniques identified through scientifically based
reading research;
``(II) to promote the acquisition of the English language
for non-English background children and families;
``(III) to foster children's school readiness skills
through activities described in section 648A(a)(1); and
``(IV) to provide training necessary to improve the
qualifications of the staff of the Head Start agencies and to
support staff training, child counseling, and other services
necessary to address the problems of children participating in
Head Start programs, including children from dysfunctional
families, children who experience chronic violence in their
communities, and children who experience substance abuse in
their families.'';
(iii) by striking clause (v); and
(iv) by redesignating clauses (vi) and (vii) as clauses
(v) and (vi), respectively; and
(D) in subparagraph (D)(i)(II), by striking ``and migrant''
and inserting ``Head Start programs and migrant and seasonal'';
(3) in paragraph (4)--
(A) in subparagraph (A), by striking ``1981'' and inserting
``1998'';
(B) by amending subparagraph (B) to read as follows:
``(B) any amount available after all allotments are made under
subparagraph (A) for such fiscal year shall be distributed
proportionately on the basis of the number of children less than 5
years of age from families whose income is below the poverty
line.''; and
(C) by adding at the end the following:
``For purposes of this paragraph, for each fiscal year the Secretary
shall use the most recent data available on the number of children less
than 5 years of age from families whose income is below the poverty
line, as published by the Department of Commerce, unless the Secretary
and the Secretary of Commerce determine that use of the most recent
data available would be inappropriate or unreliable. If the Secretary
and the Secretary of Commerce determine that some or all of the data
referred to in this paragraph are inappropriate or unreliable, the
Secretaries shall issue a report setting forth their reasons in
detail.'';
(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 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
``(including coordination of services with those State
officials who are responsible for administering part C
and section 619 of the Individuals with Disabilities
Education Act (20 U.S.C. 1431-1445, 1419)), and
services for homeless children;''; 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; and
``(vi) encourage local Head Start agencies to appoint a State
level representative to represent Head Start agencies within the
State in conducting collaborative efforts described in
subparagraphs (B) and (D), and in clause (v).'';
(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
professional 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, State, and local 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 programs described in subclause (I)
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'';
(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).''; and
(C) by adding at the end the following:
``(B)(i) If the Secretary does not submit an interim report on the
preliminary findings of the Early Head Start impact study currently
being conducted by the Secretary (as of the date of enactment of the
Head Start Amendments of 1998) to the appropriate committees by June 1,
2001, the amount of the reserved portion for fiscal year 2002 that
exceeds the reserved portion for fiscal year 2001, if any, shall be
used for quality improvement activities described in section 640(a)(3)
and shall not be used to serve an increased number of eligible children
under section 645A.
``(ii) If the Secretary does not submit a final report on the Early
Head Start impact study to the appropriate committees by June 1, 2002,
or if the Secretary finds in the report that there are substantial
deficiencies in the programs carried out under section 645A, the amount
of the reserved portion for fiscal year 2003 that exceeds the reserved
portion for fiscal year 2002, if any, shall be used for quality
improvement activities described in section 640(a)(3) and shall not be
used to serve an increased number of eligible children under section
645A.
``(iii) In this subparagraph:
``(I) The term `appropriate committees' means the Committee on
Education and the Workforce and the Committee on Appropriations of
the House of Representatives and the Committee on Labor and Human
Resources and the Committee on Appropriations of the Senate.
``(II) The term `reserved portion', used with respect to a
fiscal year, means the amount required to be used in accordance
with subparagraph (A) for that fiscal year.
``(C)(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) of the Head Start
Act (42 U.S.C. 9835(d)) is amended--
(1) by striking ``1982'' and inserting ``1999'';
(2) by striking ``(as defined in section 602(a) of the
Individuals with Disabilities Education Act)''; and
(3) by adding at the end the following: ``Such policies and
procedures shall require Head Start agencies to coordinate
programmatic efforts with efforts to implement part C and section
619 of the Individuals with Disabilities Education Act (20 U.S.C
1431-1445, 1419).''.
(c) Increased Appropriations.--Section 640(g) of the Head Start Act
(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 the semicolon and
inserting ``, and organizations and public entities serving
children with disabilities;'';
(C) in subparagraph (D), by striking the semicolon and
inserting ``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 a semicolon; 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
``(H) the extent to which the applicant, in providing services,
plans 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, regarding such services and the education
services provided by such local educational agency.''; and
(2) by adding at the end the following:
``(4) Notwithstanding subsection (a)(2), after taking into account
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 activities described in such
subsection.''.
(d) Migrant and Seasonal Head Start Programs.--Section 640(l) (42
U.S.C. 9835(l)) is amended--
(1) by striking ``(l)'' and inserting ``(l)(1)'';
(2) by striking ``migrant Head Start programs'' each place it
appears and inserting ``migrant and seasonal Head Start programs'';
(3) by striking ``migrant families'' and inserting ``migrant
and seasonal farmworker families''; and
(4) by adding at the end the following:
``(2) For purposes of subsection (a)(2)(A), 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 migrant and
seasonal 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 eligible children of migrant farmworkers before
approving an increase in the allocation of funds provided under such
subsection for unserved eligible children of seasonal farmworkers. In
serving the eligible children of seasonal farmworkers, the Secretary
shall ensure that services provided by migrant and seasonal Head Start
programs do not duplicate or overlap with other Head Start services
available to eligible children of such farmworkers.
``(3) In carrying out this subchapter, the Secretary shall continue
the administrative arrangement responsible for meeting the needs of
children of migrant and seasonal farmworkers and Indian children and
shall ensure that appropriate funding is provided to meet such
needs.''.
(e) Conforming Amendment.--Section 644(f)(2) of the Head Start Act
(42 U.S.C. 9839(f)(2)) is amended by striking ``Except'' and all that
follows through ``financial'' and inserting ``Financial''.

65971abbda0e09cb64ef98beaf160106d6e8af279e239f5b868ae4cc66f6bcde

Section 641 of the Head Start Act (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) by inserting ``(in consultation with the chief
executive officer of the State involved, if such State expends
non-Federal funds to carry out Head Start programs)'' after
``Secretary'' the last place it appears;
(2) in subsection (b), by striking ``area designated by the
Bureau of Indian Affairs as near-reservation'' and inserting ``off-
reservation area designated by an appropriate tribal government in
consultation with the Secretary'';
(3) in subsection (c)--
(A) in paragraph (1)--
(i) by inserting ``, in consultation with the chief
executive officer of the State involved if such State
expends non-Federal funds to carry out Head Start
programs,'' after ``shall'';
(ii) by inserting ``or for-profit'' after
``nonprofit''; and
(iii) by striking ``makes a finding'' and all that
follows through the period at the end, and inserting the
following: ``determines that the agency involved fails to
meet program and financial management requirements,
performance standards described in section 641A(a)(1),
results-based performance measures developed by the
Secretary under section 641A(b), or other requirements
established by the Secretary.'';
(B) in paragraph (2), by inserting ``, in consultation with
the chief executive officer of the State if such State expends
non-Federal funds to carry out Head Start programs,'' after
``shall''; and
(C) by aligning the margins of paragraphs (2) and (3) with
the margin of paragraph (1);
(4) in subsection (d)--
(A) in the matter preceding paragraph (1), by inserting
after the first sentence the following: ``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 Head Start delegate agency in the
community and carried out a Head Start program that the
Secretary determines met or exceeded such performance standards
and such results-based performance measures.'';
(B) in paragraph (3), by inserting ``and programs under
part C and section 619 of the Individuals with Disabilities
Education Act (20 U.S.C 1431-1445, 1419)'' after ``(20 U.S.C.
2741 et seq.)'';
(C) in paragraph (4)--
(i) in subparagraph (A), by inserting ``(at home and in
the center involved where practicable)'' after
``activities'';
(ii) in subparagraph (D)--
(I) in clause (iii), by adding ``or'' at the end;
(II) by striking clause (iv); and
(III) by redesignating clause (v) as clause (iv);
(iii) in subparagraph (E), by striking ``and (D)'' and
inserting ``, (D), and (E)'';
(iv) by redesignating subparagraphs (D) and (E) as
subparagraphs (E) and (F), respectively; and
(v) by inserting after subparagraph (C) the following:
``(D) to offer to parents of participating children
substance abuse counseling (either directly or through referral
to local entities), including information on drug-exposed
infants and fetal alcohol syndrome;'';
(D) by amending paragraph (7) to read as follows:
``(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;'';
(E) in paragraph (8)--
(i) by striking the period at the end and inserting ``;
and''; and
(ii) by redesignating such paragraph as paragraph (9);
(F) by inserting after paragraph (7) the following:
``(8) the plan of such applicant to meet the needs of children
with disabilities;''; and
(G) by adding at the end the following:
``(10) the plan of such applicant to collaborate with other
entities carrying out early childhood education and child care
programs in the community.'';
(5) 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
(6) 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. In selecting from among qualified
applicants for designation as a Head Start agency under subsection (d),
the Secretary shall give priority to applicants that have demonstrated
capacity in providing comprehensive early childhood services to
children and their families.''.

9030ca02de5500b6229295b0ad4a296d521daad9f2624be8a02fdcbaa24ea4ae

(a) Quality Standards.--Section 641A(a) of the Head Start Act (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 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 language to communicate for
various purposes;
``(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) of the Head Start Act
(42 U.S.C. 9836a(b)) is amended--
(1) in the heading, by inserting ``Results-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 inserting before ``(referred'' the following: ``,
and the impact of the services provided through the programs to
children and their families''; and
(D) by striking ``performance measures'' and inserting
``results-based performance measures''; 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'';
(ii) by striking ``and peer review'' and inserting ``,
peer review, and program evaluation''; and
(iii) by inserting ``, not later than July 1, 1999''
before the semicolon;
(E) in subparagraph (C), by inserting ``be developed''
before ``for other''; and
(F) by adding at the end the following: ``The performance
measures shall include the performance standards described in
subsection (a)(1)(B)(ii).'';
(4) in paragraph (3)(A), by striking ``and by region'' and
inserting ``, regionally, and locally''; and
(5) by adding at the end the following:
``(4) Educational performance measures.--Such results-based
performance measures shall include educational performance measures
that ensure that children participating in Head Start programs--
``(A) know that letters of the alphabet are a special
category of visual graphics that can be individually named;
``(B) recognize a word as a unit of print;
``(C) identify at least 10 letters of the alphabet; and
``(D) associate sounds with written words.
``(5) Additional local results-based performance measures.--In
addition to other applicable results-based performance measures,
Head Start agencies may establish local results-based educational
performance measures.''.
(c) Monitoring.--Section 641A(c) of the Head Start Act (42 U.S.C.
9836a(c)) is amended--
(1) in paragraph (1), by inserting ``and results-based
performance measures developed by the Secretary under subsection
(b)'' after ``standards established under this subchapter''; and
(2) in paragraph (2)--
(A) in subparagraph (B), by striking ``and'' at the end;
(B) in subparagraph (C)--
(i) by inserting ``(including children with
disabilities)'' after ``eligible children''; and
(ii) by striking the period at the end and inserting a
semicolon; and
(C) by adding at the end the following:
``(D) include as part of the reviews of the programs, a
review and assessment of program effectiveness, as measured in
accordance with the results-based performance measures
developed by the Secretary pursuant to subsection (b) and with
the performance standards established pursuant to subparagraphs
(A) and (B) of subsection (a)(1); and
``(E) seek information from the communities and the States
involved about the performance of the programs and the efforts
of the Head Start agencies to collaborate with other entities
carrying out early childhood education and child care programs
in the community.''.
(d) Termination.--Section 641A(d) of the Head Start Act (42 U.S.C.
9836a(d)) is amended--
(1) in paragraph (1)--
(A) by inserting ``or results-based performance measures
developed by the Secretary under subsection (b)'' after
``subsection (a)''; and
(B) by amending subparagraph (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)''.
(e) Report.--Section 641A(e) of the Head Start Act (42 U.S.C.
9836a(e)) is amended by adding at the end the following: ``Such report
shall be widely disseminated and available for public review in both
written and electronic formats.''.

8246db531199176d6876bd4f9b775ba2dd9863b081cac0f33d8727d9466346fa

Section 642 of the Head Start Act (42 U.S.C. 9837) is amended--
(1) in subsection (a), by inserting ``or for-profit'' after
``nonprofit'';
(2) in subsection (b)--
(A) in paragraph (6)--
(i) by striking subparagraph (D); and
(ii) by redesignating subparagraphs (E) and (F) and
subparagraphs (D) and (E), respectively;
(B) in paragraph (8), by striking ``and'' at the end;
(C) in paragraph (9), by striking the period at the end and
inserting ``; and'';
(D) by redesignating paragraphs (6) through (9) as
paragraphs (7) through (10), respectively;
(E) by inserting after paragraph (5) the following:
``(6) offer to parents of participating children substance
abuse counseling (either directly or through referral to local
entities), including information on drug-exposed infants and fetal
alcohol syndrome;'';
(F) in paragraph (8) (as redesignated in subparagraph (D)),
by striking ``paragraphs (4) through (6)'' and inserting
``paragraphs (4) through (7)''; and
(G) by adding at the end the following:
``(11)(A) inform custodial parents in single-parent families
that participate in programs, activities, or services carried out
or provided under this subchapter about the availability of child
support services for purposes of establishing paternity and
acquiring child support; and
``(B) refer eligible parents to the child support offices of
State and local governments.'';
(3) in subsection (c)--
(A) by inserting ``and collaborate'' after ``coordinate'';
(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
(C) by inserting ``and programs under part C and section
619 of the Individuals with Disabilities Education Act (20
U.S.C 1431-1445, 1419)'' after ``(20 U.S.C. 2741 et seq.)'';
(4) in subsection (d)--
(A) in paragraph (1)--
(i) by striking ``carry out'' and all that follows
through ``maintain'' and inserting ``take steps to ensure,
to the maximum extent possible, that children maintain'';
(ii) by inserting ``and educational'' after
``developmental''; 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''; and
(5) by adding at the end the following:
``(e) Head Start agencies shall adopt, in consultation with experts
in child development and with classroom teachers, an assessment to be
used when hiring or evaluating any classroom teacher in a center-based
Head Start program. Such assessment shall measure whether such teacher
has mastered the functions described in section 648A(a)(1).''.

821aa13c3284cbbc8e00414f65e00f21a6e0b976adeecba74d32812ad61fbc6a

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 educational, 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.);
``(6) assisting families, administrators, and teachers in
enhancing educational and developmental continuity between Head
Start services and elementary school classes; and
``(7) linking the services provided in such Head Start program
with the education services provided by such local educational
agency.''.

5e2585c0809298056c4669d6f35209c5d21af5ebf2b56e700871c8e18369cad9

The first sentence of section 643 of the Head Start Act (42 U.S.C.
9838) is amended--
(1) by striking ``30 days'' and inserting ``45 days'';
(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 in the State)''; and
(3) by inserting before the period ``, as evidenced by a
written statement of the Secretary's findings that is transmitted
to such officer''.

c65a9f0a29963c6eb205811ea058589c5543cb4e5cbdc6470ca20ceaab155ad5

(a) Regulations.--Section 645(a)(1) of the Head Start Act (42
U.S.C. 9840(a)(1)) is amended--
(1) by striking ``provide (A) that'' and inserting the
following: ``provide--
``(A) that'';
(2) by striking ``assistance; and (B) pursuant'' and inserting
the following: ``assistance; and
``(B) pursuant'';
(3) in subparagraph (B), by striking ``that programs'' and
inserting ``that--
``(i) programs''; and
(4) by striking ``clause (A).'' and inserting the following:
``subparagraph (A); 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) of the Head Start Act (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) of the Head Start Act (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.''.
(d) Off-Reservation Area.--Section 645(d)(1)(B) of the Head Start
Act (42 U.S.C. 9840(d)(1)(B)) is amended by striking ``a community
with'' and all that follows through ``Indian Affairs'' and inserting
``a community that is an off-reservation area, designated by an
appropriate tribal government, in consultation with the Secretary''.

212d5c277459c804d83566c6dcfbd65d20d72e984128bd761369489f8f788ae4

TODDLERS.
Section 645A of the Head Start Act (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) in paragraph (1), by striking ``; and'' and inserting a
period;
(B) by striking paragraph (2); and
(C) by striking ``for--'' and all that follows through
``(1)'' and inserting ``for'';
(3) in subsection (b)--
(A) in paragraph (5), by inserting ``(including programs
for infants and toddlers with disabilities)'' after
``community'';
(B) in paragraph (7), by striking ``and'' at the end;
(C) by redesignating paragraph (8) as paragraph (9); and
(D) by inserting after paragraph (7) the following:
``(8) ensure formal linkages with the agencies and entities
described in section 644(b) of the Individuals with Disabilities
Education Act (20 U.S.C. 1444(b)) and providers of early
intervention services for infants and toddlers with disabilities
under the Individuals with Disabilities Education Act (20 U.S.C.
1400 et seq.); and'';
(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) in paragraph (1), by adding ``and'' at the end;
(B) by striking paragraph (2);
(C) by redesignating paragraph (3) as paragraph (2); and
(D) in paragraph (2), as redesignated in subparagraph (C),
by inserting ``or for-profit'' after ``nonprofit'';
(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),'';
(9) by striking subsection (h); and
(10) by adding at the end the following:
``(g) Monitoring, Training, Technical Assistance, and Evaluation.--
``(1) Requirement.--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.
``(2) Training and technical assistance account.--
``(A) 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.
``(B) Activities.--Funds in the account may be used by the
Secretary for purposes including--
``(i) 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;
``(ii) 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;
``(iii) providing ongoing training and technical
assistance for existing recipients (as of the date of such
training or assistance) of grants under subsection (a) and
support and program planning and implementation assistance
for new recipients of such grants; and
``(iv) 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.''.

4e8a2adf47a1eedce954df53d315ad792d267c08222eb16d3b36c3d4f1bfc847

(a) In General.--Section 648 of the Head Start Act (42 U.S.C. 9843)
is amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking ``and'' at the end;
(B) in paragraph (2), by striking the period and inserting
``; and''; and
(C) 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.''; and
(2) in subsection (c)--
(A) by amending paragraph (1) to read as follows:
``(1) give priority consideration to--
``(A) activities to correct program and management
deficiencies identified through reviews carried out pursuant to
section 641A(c) (including the provision of assistance to local
programs in the development of quality improvement plans under
section 641A(d)(2)); and
``(B) assisting Head Start agencies in--
``(i) ensuring the school readiness of children; and
``(ii) meeting the educational performance measures
described in section 641A(b)(4);'';
(B) in paragraph (2), by inserting ``supplement amounts
provided under section 640(a)(3)(C)(ii) in order to'' after
``(2)'';
(C) in paragraph (4)--
(i) by inserting ``and implementing'' after
``developing''; and
(ii) 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'';
(D) in paragraph (7), by striking ``; and'' and inserting a
semicolon;
(E) in paragraph (8), by striking the period and inserting
``; and'';
(F) by redesignating paragraphs (3) through (8) as
paragraphs (5) through (10), respectively;
(G) by inserting after paragraph (2) the following:
``(3) assist Head Start agencies in the development of
collaborative initiatives with States and other entities within the
States, to foster effective early childhood professional
development systems;
``(4) provide technical assistance and training, either
directly or through a grant, contract, or cooperative agreement
with an entity that has experience in the development and operation
of successful family literacy services programs, for the purpose
of--
``(A) assisting Head Start agencies providing family
literacy services, in order to improve the quality of such
family literacy services; and
``(B) enabling those Head Start agencies that demonstrate
effective provision of family literacy services, based on
improved outcomes for children and their parents, to provide
technical assistance and training to other Head Start agencies
and to service providers that work in collaboration with such
agencies to provide family literacy services;''; and
(H) by adding at the end the following:
``(11) provide support for Head Start agencies (including
policy councils and policy committees, as defined in regulation)
that meet the standards described in section 641A(a) but that have,
as documented by the Secretary through reviews conducted pursuant
to section 641A(c), significant programmatic, quality, and fiscal
issues to address.''.
(b) Services.--Section 648(e) of the Head Start Act (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''.

84611b4d67a1d84ce4dd2b1d7527ac6593d7f79d7d19a5d59be7579eb4c13a45

Section 648A of the Head Start Act (42 U.S.C. 9843a) is amended--
(1) by amending subsection (a) to read as follows:
``(a) Classroom Teachers.--
``(1) Professional requirements.--The Secretary shall ensure
that each Head Start classroom in a center-based program is
assigned one teacher who has demonstrated competency to perform
functions that include--
``(A) 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 language, their
understanding and use of increasingly complex and varied
vocabulary, their appreciation of books, and their problem
solving abilities;
``(B) establishing and maintaining a safe, healthy learning
environment;
``(C) supporting the social and emotional development of
children; and
``(D) 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.
``(2) Degree requirements.--
``(A) In general.--The Secretary shall ensure that not
later than September 30, 2003, at least 50 percent of all Head
Start teachers nationwide in center-based programs have--
``(i) an associate, baccalaureate, or advanced degree
in early childhood education; or
``(ii) an associate, baccalaureate, or advanced degree
in a field related to early childhood education, with
experience in teaching preschool children.
``(B) Progress.--The Secretary shall require Head Start
agencies to demonstrate continuing progress each year to reach
the result described in subparagraph (A).
``(3) Alternative credentialing requirements.--The Secretary
shall ensure that, for center-based programs, each Head Start
classroom that does not have a teacher that meets the requirements
of clause (i) or (ii) of paragraph (2)(A) is assigned one teacher
who has--
``(A) a child development associate credential that is
appropriate to the age of the children being served in center-
based programs;
``(B) a State-awarded certificate for preschool teachers
that meets or exceeds the requirements for a child development
associate credential; or
``(C) a degree in a field related to early childhood
education with experience in teaching preschool children and a
State-awarded certificate to teach in a preschool program.
``(4) Waiver.--
``(A) In general.--On request, the Secretary shall grant a
180-day waiver of the requirements of paragraph (3), 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 (3),
with respect to an individual who--
``(i) is enrolled in a program that grants any such
credential, certificate, or degree; and
``(ii) 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.
``(B) Limitation.--The Secretary may not grant more than
one such waiver with respect to such individual.''; and
(2) in subsection (b)(2)(B)--
(A) by striking ``staff,'' and inserting ``staff or''; and
(B) by striking ``, or that'' and all that follows through
``families''.

4a8889ef62706803a8a95d63e16d7d2fb2eb00eab32329435f50d751bc64f930

Section 649 of the Head Start Act (42 U.S.C. 9844) is amended--
(1) in subsection (d)--
(A) in paragraph (6), by striking ``and'' at the end;
(B) in paragraph (7), by striking the period at the end and
inserting a semicolon;
(C) by redesignating paragraphs (2) through (7) as
paragraphs (3) through (8), respectively;
(D) by inserting after paragraph (1) the following:
``(2) establish evaluation methods that measure the
effectiveness and impact of family literacy services program
models, including models for the integration of family literacy
services with Head Start services;''; and
(E) by adding at the end the following:
``(9) 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; and
``(10) provide for--
``(A) using the Survey of Income and Program Participation
to conduct an analysis of the different income levels of Head
Start participants compared to comparable persons who did not
attend Head Start programs;
``(B) using the National Longitudinal Survey of Youth,
which began gathering data in 1988 on children who attended
Head Start programs, to examine the wide range of outcomes
measured within the Survey, including outcomes related to
cognitive, socio-emotional, behavioral, and academic
development;
``(C) using the Survey of Program Dynamics, the new
longitudinal survey required by section 414 of the Social
Security Act (42 U.S.C. 614), to begin annual reporting,
through the duration of the Survey, on Head Start program
attendees' academic readiness performance and improvements;
``(D) ensuring that the Survey of Program Dynamics is
linked with the National Longitudinal Survey of Youth at least
once by the use of a common performance test, to be determined
by the expert panel, for the greater national usefulness of the
National Longitudinal Survey of Youth database; and
``(E) disseminating the results of the analysis,
examination, reporting, and linkage described in subparagraphs
(A) through (D) to persons conducting other studies under this
subchapter.
The Secretary shall ensure that an appropriate entity carries out a
study described in paragraph (9), and prepares and submits to the
appropriate committees of Congress a report containing the results of
the study, not later than September 30, 2002.''; and
(2) 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 make a grant to, or enter
into a 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;
``(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 and at the end of first
grade (whether 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 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) 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 information on--
``(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 development of children receiving services under this
subchapter.''.

ffa2d9e0e7af5da5f08e9ced1a26c966f956de2e72c5589b5ac9fafdf947a042

Section 650 of the Head Start Act (42 U.S.C. 9846) is amended--
(1) by inserting ``(a) Status of Children.--'' before ``At'';
(2) by striking ``and Labor'' each place it appears and
inserting ``and the Workforce''; and
(3) by adding at the end the following:
``(b) Facilities.--At least once during every 5-year period, 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
condition, location, and ownership of facilities used, or available to
be used, by Indian Head Start agencies (including Native Alaskan Head
Start agencies) and Native Hawaiian Head Start agencies.''.

29bfd39a2785b00815e12388168b732c2e2e76cc97ad40074671bf21ec75190d

Section 657A of the Head Start Act (42 U.S.C. 9852a) is repealed.

6f9add5218c30641e4cc60c978f68c3b435d11385e7862f48dce846c74a47df5

The Head Start Transition Project Act (42 U.S.C. 9855-9855g) is
repealed.

95c3d213beac05bd9d6b6f70aa9c469c7a64d752890509601819ad7b62b0bacf

6001c7fd44b32c5112ad5879e20ac9fdfc416dbfb12f18f314a3760027c83c84

TITLE II

-COMMUNITY SERVICES BLOCK GRANT PROGRAM

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.''.

fd0a51b1889a13e3f23e53879eb69af5e1be586e1a4f0237006c8c1b06af8b61

(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) Community Economic Development Act of 1981.--
(1) Source of funds.--Section 614 of the Community Economic
Development Act of 1981 (42 U.S.C. 9803) is repealed.
(2) Advisory community investment board.--Section 615(a)(2) of
the Community Economic Development Act of 1981 (42 U.S.C.
9804(a)(2)) is amended by striking ``through the Office'' and all
that follows and inserting ``through an appropriate office.''.
(c) Human Services Reauthorization Act of 1986.--Section 407 of the
Human Services Reauthorization Act of 1986 (42 U.S.C. 9812a) is
amended--
(1) in subsection (a)--
(A) by inserting after ``funds available'' the following:
``(before the date of enactment of the Coats Human Services
Reauthorization Act of 1998)''; and
(B) by inserting after ``9910(a))'' the following: ``(as in
effect before such date)''; and
(2) in subsection (b)(2)--
(A) by inserting after ``funds available'' the following:
``(before the date of enactment of the Coats Human Services
Reauthorization Act of 1998)''; and
(B) by inserting after ``9910(a))'' the following: ``(as in
effect before such date)''.
(d) 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)),''.

07385b7ea01750708706b3d4a9c82dea47fc6f88bad6251cca6732ed64fe7fe4

This title may be cited as the ``Low-Income Home Energy Assistance
Amendments of 1998''.

6a366f377f86f1380d823fe7b613cd3126e429ea41556daa6d8bc469315b493d

TITLE III

-LOW-INCOME HOME ENERGY ASSISTANCE

(a) In General.--Section 2602(b) of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended by inserting ``,
such sums as may be necessary for each of fiscal years 2000 and 2001,
and $2,000,000,000 for each of fiscal years 2002 through 2004'' after
``1995 through 1999''.
(b) Program Year.--Section 2602(c) of the Low-Income Home Energy
Assistance Act of 1981 (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 the Low-Income Home Energy Assistance Act of 1981
(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 the Low-Income Home
Energy Assistance Act of 1981 (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''.

de1dc0f134e9c03c1fdfaf5307309592df9070b29b474bf7f5e31db6cd12a973

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.

b7fdd5112a8f43293bd9ad54fbd0605c27cea8823d7d868662df345236890e66

(a) Definitions.--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) 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) 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.''.
(b) Considerations.--Section 2604(g) of the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8623(g)) is amended 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, 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.''.

c5ada27a41dd617438dfd81c4a6d4e9a523d4747701533aa476d0004b8470688

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 ``and the Commonwealth of the Northern Mariana
Islands.'';
(2) in subsection (c)(3)(B)(ii), by striking ``application''
and inserting ``applications'';
(3) by striking subsection (f);
(4) in the first sentence of subsection (g), by striking ``(a)
through (f)'' and inserting ``(a) through (d)''; and
(5) by redesignating subsection (g) as subsection (e).

0b3c663e371c3e7d7d0b6ca9d26ab392d74f4a28a1d9ca0ea7a6e010366cdb00

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.'';
(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''; and
(3) in paragraphs (1) and (2)(A) of subsection (k) by inserting
``, particularly those low-income households with the lowest
incomes that pay a high proportion of household income for home
energy'' before the period.

47220b7ee864f2fda37670bc1e123c5d50946056bb774478b71bf2e313f5c261

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''.

6ac738967febbd0d3553253d99049c5e2482197bcf6b6ce074efc018702ba834

(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 the Low-Income Home
Energy Assistance Act of 1981 (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).

99bf4c8620790320b95eaf45c6060d936df35c87205f611bb72f8e4271c12b99

(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), by striking
``$250,000'' and inserting ``$300,000'';
(2) by striking ``Secretary--'' and all that follows through
``(1) to make'' and inserting the following: ``Secretary--
``(1) to--
``(A) make'';
(3) by striking ``organizations; or'' and all that follows
through ``(2) to enter'' and inserting the following:
``organizations; or
``(B) enter'';
(4) by striking the following:
``to provide'' and inserting the following:
``to provide'';
(5) by striking ``title.'' and inserting the following:
``title; or
``(2) to conduct onsite compliance reviews of programs
supported under this title.''; and
(6) in paragraph (1)(B) (as redesignated in paragraphs (2) and
(3))--
(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
the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8628a) is
amended to read as follows:
``technical assistance, training, and compliance reviews''.

7ab4d672b25b978fc364d7816d899ddc0b794a65ad7b664c043552591a9477e2

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

d1c4afc84232f6ba4d442b3273354169d1ec0083229cc6e64433576c98be8e70

TITLE IV

-ASSETS FOR INDEPENDENCE

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.

cc9e2c3da28820624fa35cf83cd246e7b8367c7268dfbcdde4b22f723e0d57d7

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 the families live.

b58ac1104cc223eeefb925dab5b65c433ba49aaaa14cd439c54cc3d6b3e1cce8

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 in a
demonstration project 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 contains the
following requirements:
(i) No contribution will be accepted unless the
contribution 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 that 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 of the
account.
(6) Project year.--The term ``project year'' means, with
respect to a demonstration project, any of the 5 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 a 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 101 or 102 of the
Higher Education Act of 1965.
(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 main 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 involved (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 that is established in a federally
insured financial institution (or in a State insured financial
institution if no federally insured financial institution is
available) 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).
(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 an 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, acting through the Director of Community
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).

e0453f3358c39d231f8ca0eef3d59c8974dcb3457b1f4796012a1f3595862ee0

(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 one or more qualified expenses.
(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 from 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 considers to be appropriate, taking into account the
assessments required by subsections (c) and (d). The Secretary shall
ensure, to the maximum extent practicable, 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.
(g) Grandfathering of Existing Statewide Programs.--Any statewide
individual asset-building program that is carried out in a manner
consistent with the purposes of this title, that is established under
State law as of the date of enactment of this Act, and that as of such
date is operating with an annual State appropriation of not less than
$1,000,000 in non-Federal funds, shall be deemed to meet the
eligibility requirements of this subtitle, and the entity carrying out
the program shall be deemed to be a qualified entity. The Secretary
shall consider funding the statewide program as a demonstration project
described in this subtitle. In considering the statewide program for
funding, the Secretary shall review an application submitted by the
entity carrying out such statewide program under this section,
notwithstanding the preference requirements listed in subsection (d).
Any program requirements under sections 407 through 411 that are
inconsistent with State statutory requirements in effect on the date of
enactment of this Act, governing such statewide program, shall not
apply to the program.

cdca311ca8bc63135598d28cf5a83335fcf4bffabf229ffcd2e3a361777b4360

(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 5
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 from non-Federal public or private sector sources; or
(2) $1,000,000.

0779c77d5b6b74ba5aa96ada0a5abeba23001737a64fa54f8fece79b6c493e87

(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 that 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 from 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 skills) 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 the 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 from all sources to conduct the project.

096fead1282ac218f82d4fe2bf62e3b589cb775f46f46963400d4294ec044bd2

(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 a member of the household.
(b) Individuals Unable To Complete the Project.--The Secretary
shall establish such regulations as are necessary 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,
including regulations prohibiting future eligibility to participate in
any other demonstration project conducted under this title.

d6f2b7185c4576d7ce4b8671c618ca502cea0f9a3fea75c271ad073269ace6f9

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 determines to be best suited to
participate; and
(2) to whom the qualified entity will provide deposits in
accordance with section 410.

6ece7faffcb7b428d797871a906fbc6a7ff33c4feafc6abad942cd756bcdb9e2

(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 a withdrawal from
such an account 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 this section to
the Reserve Fund of the qualified entity, and use the funds to benefit
other individuals participating in the demonstration project involved.

5c023dcc4165b3683f65125e490e9f769fdc5136ecf5886ffe3daf7bffb16258

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.

a92dd30ce9d1446a54fb98d28318a2bb1b14e84b3d0eaf0504055be7af6790e2

(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 and characteristics 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 configurations relating to 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.

f1d82bef8d4e3b77c93a0be35d7341871b008c578df94a2fb13dfac792d5c7ac

(a) Authority To Terminate Demonstration Project.--If the Secretary
determines that a qualified entity under this title is not operating a
demonstration project in accordance with the entity's approved
application under section 405 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, if modification is
necessary to incorporate the recommendations, the application as
modified) 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, if
modification is necessary to incorporate the recommendations,
the application as modified) 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
from the source under section 405(c)(4) bears to the amount
provided from all such sources under that section.

7591087665aa1a4061e5f1100deedbf0f5949ce9c77a608d7687e7986e10fffc

(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 the demonstration
projects conducted under this title, individually and as a group,
including evaluating all qualified entities participating in and
sources providing funds for 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 2 percent of
the amount appropriated under section 416 for a fiscal year, to carry
out the objectives of this section.

dc21bbfb66d04c93e83cd934277e6fb2c1e5883c7874468cb50d9f45d6a5eda0

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.

cfdf9da4445cf9e76aa1c79a20d4a16a888e398c63ea498cdfe5e8a117160e65

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.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

a089215178f69eed5feb993e45e42726965c9724ce9201c6e6f5c901abde5903

Coats Human Services Reauthorization Act of 1998

Other Sections

TITLE I

TITLE II

TITLE III

TITLE IV

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