To amend the Public Health Service Act to make modifications in the program for adolescent family life demonstration projects.

Revises title XX (Adolescent Family Life Demonstration Projects) of the Public Health Service Act.

Mandates grants for demonstration projects to help communities provide care or prevention services (or both) in easily accessible locations using such methods as will strengthen the capacity of families to deal with the sexual behavior, pregnancy, or parenthood of adolescents and to make use of support systems such as other family members, friends, and organizations.

Lists permitted uses of grant funds, including coordinating among providers, providing supplemental services as determined by the Secretary of Health and Human Services, and planning. Prohibits using grant funds for the provision of family planning services other than counseling and referral unless such services are not otherwise available in the community.

Requires, in applying a fee schedule, consideration of the income of the family of an unemancipated minor, unless the parents or guardians refuse to pay.

Requires parental notification and permission, except if: (1) an adolescent is solely requesting pregnancy testing or treatment of venereal disease; (2) there is incest involving a parent; (3) certain blood relatives certify that notification would result in physical injury to the minor; and (4) with regard to permission, the parents are attempting to compel an abortion.

Directs the Secretary to coordinate Federal policies and programs providing services relating to the prevention of adolescent sexual relations and initial and recurrent adolescent pregnancies and providing care services for pregnant adolescents.

Authorizes grants and contracts for certain research and dissemination activities, including descriptive or explanatory surveys, longitudinal studies, or limited demonstration projects. Requires scientific peer review and approval of grant and contract applications.

Authorizes appropriations to carry out this Act.

Allows grants or payments to be made only to programs that do not: (1) provide abortions or abortion counseling or referral; (2) subcontract with any person who provides abortions or abortion counseling or referral; or (3) advocate, promote, or encourage abortion.