[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3686 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3686

 To authorize the Secretary of Health and Human Services to make block 
 grants to States for purposes of improving the quality of child care 
  services and making grants to business consortia to provide quality 
              child care services, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 1, 1998

  Mrs. Tauscher (for herself, Mr. Allen, Mr. Moran of Virginia, Mrs. 
Clayton, Mr. Condit, Ms. DeLauro, Mr. Frost, Ms. Harman, Mr. Kennedy of 
 Massachusetts, Ms. Lofgren, Mr. Miller of California, Mr. Tanner, Mr. 
   Torres, and Ms. Woolsey) introduced the following bill; which was 
        referred to the Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
 To authorize the Secretary of Health and Human Services to make block 
 grants to States for purposes of improving the quality of child care 
  services and making grants to business consortia to provide quality 
              child care services, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Model States Child Care Enhancement 
Act of 1998''.

                    TITLE I--GRANTS TO MODEL STATES

    Subtitle A--Grants To Improve the Quality of Child Care Services

SEC. 101. AUTHORITY TO MAKE CHALLENGE GRANTS.

    The Secretary may make grants in accordance with this subtitle to 
eligible States to improve the quality of child care services, to be 
used by such States for purposes the Secretary shall specify by rule, 
including--
            (1) to provide State or federally approved, developmentally 
        appropriate child care training that adheres to a program 
        widely recognized by the community of interest that serves 
        young children and that is accredited by national institutions 
        that are recognized by the Secretary of Education, beyond the 
        training described in section 102, to individuals who are 
        caregivers who are, or are employed by, child care providers 
        who provide child care services for compensation,
            (2) to require health consultation and age-appropriate 
        immunization in accordance with the then current immunization 
        recommendations issued by the Centers for Disease Control and 
        Prevention to--
                    (A) children who receive child care services for 
                which assistance is provided under the Child Care and 
                Development Block Grant Act of 1990 (42 U.S.C. 9858 et 
                seq.), and
                    (B) children not described in subparagraph (A) who 
                receive child care services provided by center-based 
                child care providers, and
            (3) to provide assistance to eligible child care providers 
        to achieve the developmentally appropriate child-per-caregiver 
        ratios established by a national association that accredits 
        child care providers and that is recognized by the Secretary,
            (4) in the aggregate amount of $1,000,000 or 5 percent of 
        such grant, whichever is less, to make grants to persons on a 
        competitive basis, established by the Secretary by rule, to be 
        used for improvements and startup costs (as defined by the 
        Secretary by rule) incurred to become eligible childcare 
        providers,
            (5) to pay costs incurred to obtain comprehensive 
        background checks required by section 102(a)(1)(A),
            (6) to increase payment rates to providers who serve 
        children under the Child Care and Development Block Grant Act 
        of 1990 and, at the option of the State, to require providers 
        to seek accreditation or otherwise enhance the quality of their 
        child care services as a condition of receiving increased 
        payment rates,
            (7) to expand activities to educate parents on the 
        availability and quality of child care, including the 
        development and operation of resource and referral systems, and
            (8) to improve the availability and quality of child care 
        services for children with special needs, including special 
        needs relating to health and disabilities.

SEC. 102. ELIGIBILITY.

    (a) Application Required for All Fiscal Years.--To be eligible to 
receive a grant under section 101 for a fiscal year, and subject to 
subsection (b), a State shall submit to the Secretary an application at 
such time, in such form, and containing such information as the 
Secretary may require by rule, including the following:
            (1) A certification that there is in effect in such State, 
        and that the State maintains a mechanism to enforce, a 
        requirement that--
                    (A) each center-based child care provider, and each 
                group home child care provider, in such State obtain 
                from such State, or from an entity of local government 
                designated by such State, a preemployment criminal 
                background check of each individual subsequently 
                employed by such provider to provide child care 
                services, and
                    (B) such State, or such entity, conduct criminal 
                background checks requested for the purpose of 
                complying with subparagraph (A), at a cost to child 
                care providers that does not exceed $50 or 50 percent 
                of the cost of conducting each such check, whichever is 
                less.
            (2) A certification that there is in effect in such State, 
        and that such State enforces, a requirement that an entity of 
        State or local government--
                    (A) inspect center-based child care providers at 
                least semiannually, group home child care providers at 
                least annually, and family child care providers at 
                least biennially; and
                    (B) periodically inspect all other child care 
                providers;
        for compliance with the health and safety requirements 
        applicable to such providers under State law.
            (3) A certification that there is in effect in such State, 
        and that such State enforces, a requirement that all caregivers 
        who provide child care services for which assistance is 
        provided under the Child Care and Development Block Grant Act 
        of 1990 (42 U.S.C. 9858 et seq.), receive training in providing 
        medical first aid.
            (4) A certification that there is in effect in such State, 
        and that such State enforces, a requirement that caregivers who 
        are, or are employed by, child care providers who provide child 
        care services for compensation have specific minimum training 
        as determined and provided by the lead agency.
            (5) A certification that there is in effect in such State, 
        and that such State enforces, a requirement that all child care 
        providers in such State who provide child care services for 
        compensation obtain from the parents (or legal guardians) of 
        the children who receive such services information regarding 
        whether such children have received age-appropriate 
        immunizations in accordance with the then current immunization 
        recommendations issued by the Centers for Disease Control and 
        Prevention.
            (6) A certification that there is in effect in such State, 
        and that such State enforces, a requirement that specifies 
        developmentally appropriate child-per-caregiver ratios 
        applicable to center-based child care providers in such State.
            (7) An assurance that such State will comply with the 
        requirements of this subtitle applicable with respect to such 
        grant.
            (8) A certification that such State complies with section 
        658E(c)(4)(A) of the Child Care and Development Block Grant Act 
        (42 U.S.C. 9858c(c)(4)(A)).
            (9) An assurance that the State will not reduce or remove 
        any requirement applicable to child care providers, that 
        exceeds any requirement applicable under this title.
    (b) Additional Requirement for Subsequent Fiscal Years.--A State 
that receives a grant under this subtitle for a fiscal year and that 
applies for a grant under this subtitle for a subsequent fiscal year 
shall include in the application information in such form as the 
Secretary may require by rule, that demonstrates to the satisfaction of 
the Secretary that in the most recent fiscal year for which such State 
received a grant under this title such State enforced the requirements 
certified under section 102 by such State.

SEC. 103. ALLOTMENT OF FUNDS FOR GRANTS.

    (a) Formula for Allotments.--Funds appropriated for a fiscal year 
to carry out this subtitle shall be allotted among the States based on 
the formula used for determining payments to States under section 
403(n) of the Social Security Act as in effect before October 1, 1995.
    (b) Reallotments.--Any portion of an allotment made under 
subsection (a) that the Secretary determines will not be used for 
grants to a State shall be reallotted to other States in proportion to 
the original allotments to such other States.
    (c) Grants.--Grants made under section 101 to a State shall be made 
from funds allotted or reallotted under this section to such State.

                Subtitle B--Grants to Business Consortia

SEC. 151. AUTHORITY MAKE GRANTS.

    (a) In General.--The Secretary shall make grants to States to be 
used to provide grants to eligible entities described in subsection (b) 
to assist such entities to improve access to affordable, local, quality 
child care services.
    (b) Eligible Entities Described.--
            (1) In general.--An eligible entity described in this 
        subsection is a consortium that--
                    (A) shall consist of representatives from not fewer 
                than 5 businesses (or a nonprofit organization that 
                represents not fewer than 5 businesses); and
                    (B) has not received a grant under this title.
            (2) Additional requirement.--To the maximum extent 
        practicable, each business or organization that forms an 
        eligible entity under paragraph (1) shall be located in the 
        same geographic region of the United States.
    (c) Priority for Small Businesses.--In providing grants under 
subsection (a), a State shall give priority to eligible entities that 
consist of a majority of representatives from small businesses.
    (d) Maximum Amount of Grant.--The amount of a grant provided to an 
eligible entity under subsection (a) may not exceed $50,000 for any 
fiscal year.

SEC. 152. APPLICATION.

    The Secretary may not provide a grant under section 151 to an 
eligible entity unless such entity submits to the Secretary an 
application that contains--
            (1) a proposal to use such grant for the purposes specified 
        in section 101 (including the purposes specified by the 
        Secretary by rule) to provide quality child care services; and
            (2) such information as the Secretary may reasonably 
        require by rule.

SEC. 153. USE OF AMOUNTS.

    (a) In General.--The Secretary may not provide a grant under 
section 151 to an eligible entity unless such entity agrees to use such 
grant to initiate a quality, affordable, local child care program that 
carries out the proposal included in the application submitted under 
section 152 by such entity.
    (b) Conduct of Program.--In carrying out the program described in 
subsection (a), the eligible entity may--
            (1) establish a board of directors to oversee the program; 
        and
            (2) provide child care services on a sliding fee scale that 
        provides for cost sharing by the families of the children who 
        receive such services.
    (c) Administrative Costs.--The eligible entity may use not more 
than 15 percent of the amount of a grant to pay for administrative 
costs associated with the program described in subsection (a).

SEC. 154. REQUIREMENT OF MATCHING FUNDS.

    The Secretary may not provide a grant under section 151 to an 
eligible entity unless such entity agrees that--
            (1) it will make available non-Federal contributions toward 
        the costs of carrying out a program under section 153 in an 
        amount that is not less than $1 for each $1 of Federal funds 
        provided under a grant under section 151; and
            (2) of such non-Federal contributions, not less than $1 of 
        each such $2 shall be from businesses participating in the 
        eligible entity.

                     Subtitle C--General Provisions

SEC. 191. DEFINITIONS.

    For purposes of this title:
            (1) Caregiver.--The term ``caregiver'' has the meaning 
        given such term in section 658P of the Child Care and 
        Development Block Grant Act of 1990 (42 U.S.C. 9858n).
            (2) Eligible child care provider.--The term ``eligible 
        child care provider'' has the meaning given such term in 
        section 658P of the of the Child Care and Development Block 
        Grant Act of 1990 (42 U.S.C. 9858n).
            (3) Lead agency.--The term ``lead agency'' has the meaning 
        given such term in section 658P of the Child Care and 
        Development Block Grant Act of 1990 (42 U.S.C. 9858n).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (5) State.--The Term ``State'' has the meaning given such 
        term in section 658P of the of the Child Care and Development 
        Block Grant Act of 1990 (42 U.S.C. 9858n).

SEC. 192. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization of Appropriations for Subtitle A.--There is 
authorized to be appropriated for fiscal years 1999, 2000, 2001, 2002, 
and 2003 to carry out subtitle A $5,000,000,000 in the aggregate.
    (b) Authorization of Appropriations for Subtitle B.--There is 
authorized to be appropriated for each of the fiscal years 1999, 2000, 
2001, 2002, and 2003 to carry out subtitle B an amount equal to 
$100,000,000 or 10 percent of the amount appropriated under subsection 
(a) for the respective fiscal year, whichever is less.

               TITLE II--CHILD CARE STANDARDS ENFORCEMENT

SEC. 201. AUTHORITY TO MAKE GRANTS FOR CHILD CARE STANDARDS ENFORCEMENT 
              PROGRAM.

    (a) Establishment of Program.--Section 658G of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858e) is amended--
            (1) by inserting ``(a) Consumer Education.--'' before ``A 
        State''; and
            (2) by adding at the end the following:
    ``(b) Child Care Standards Enforcement.--
            ``(1) State plan requirement.--To be eligible to receive 
        payments under section 658J(b)(3), a State shall include in the 
        State plan under section 658E--
                    ``(A) a child care standards enforcement plan that 
                describes the activities the State will carry out, 
                directly or indirectly, with funds allotted to the 
                State from amounts appropriated under section 658C, 
                which may include--
                            ``(i) initiatives to increase the number of 
                        qualified staff engaged in licensing child care 
                        providers and in enforcing licensing, health, 
                        safety, and other applicable standards;
                            ``(ii) increasing monitoring and 
                        enforcement activities, including unannounced 
                        inspections; and
                            ``(iii) other activities designed to ensure 
                        that child care providers comply with 
                        applicable standards;
                    ``(B) an assurance that the State will not reduce 
                or remove any of such standards applicable to child 
                care providers under this subchapter; and
                    ``(C) assurances that payments received by the 
                State under section 658J(b)(3) will not be used to 
                supplant Federal or non-Federal funds for existing 
                services and activities which promote the purposes of 
                this subsection.''.
    (b) Authorization of Appropriations for Child Care Standards 
Enforcement.--Section 658B of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858) is amended--
            (1) by inserting ``(a) General Authorization of 
        Appropriations.--'' before ``There'',
            (2) by inserting ``(other than section 658G(b))'' after 
        ``subchapter'', and
            (3) by adding at the end the following:
    ``(b) Authorization of Appropriations for Child Care Standards 
Enforcement.--There is authorized to be appropriated to carry out 
section 658G(b) $100,000,000 for each of the fiscal years 1999, 2000, 
2001, 2002, and 2003.''.
    (c) Payments.--Section 658J of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9358h) is amended--
            (1) in subsection (a) by inserting ``and subsection 
        (b)(3)'' after ``appropriations''; and
            (2) in (b) by adding at the end the following:
            ``(3) Payments for Child Care Standards Enforcement.--If a 
        State plan contained in an application approved under section 
        658E includes the provisions required by section 658G(b) 
        applicable to a fiscal year, then such State shall be entitled 
        to a payment under this section equal to the amount such State 
        expended to carry out such provisions or the amount allotted to 
        such State under section 658O from funds appropriated under 
        section 658B(b) for such fiscal year, whichever is less.''.
    (d) Annual Report.--Section 658K(a)(2) of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858i(a)(2)) is 
amended--
            (1) in subparagraph (D) by striking ``and'' at the end;
            (2) in subparagraph (E) by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(H) enforcement of child care quality and safety 
                standards, including data, by type of provider, on--
                            ``(i) the number of facilities inspected 
                        (and the number of facilities receiving more 
                        than 1 inspection);
                            ``(ii) the numbers and types of 
                        deficiencies identified (and the numbers of 
                        serious deficiencies presenting risks to health 
                        or safety); and
                            ``(iii) such other data as the Secretary 
                        may require.''.

                        TITLE III--LOAN DEFERRAL

SEC. 301. STUDENT LOAN DEFERRAL FOR CHILD CARE PROVIDERS.

    (a) Federally Insured Loans.--Section 427(a)(2)(C) of the Higher 
Education Act of 1965 (20 U.S.C. 1077(a)(2)(C)) is amended--
            (1) by striking ``or'' at the end of clause (ii);
            (2) by inserting ``or'' after the semicolon at the end of 
        clause (iii); and
            (3) by inserting after clause (iii) the following new 
        clause:
                            ``(iv) not in excess of 2 years throughout 
                        which a borrower who holds a degree in early 
                        childhood education or a related discipline, 
                        and is a licensed child care provider, provides 
                        child care services not less than 30 hours per 
                        week for compensation as a child care provider 
                        or as an employee of a child care provider, and 
                        for purposes of this clause a borrower shall be 
                        considered to have a degree in early childhood 
                        education or a related discipline if the degree 
                        prepares individuals to provide care and 
                        education to groups of children younger than 
                        school-age, or to groups of school age children 
                        during out-of-school periods;''.
    (b) Federally Guaranteed Loans.--Section 428(b)(1)(M) of the Higher 
Education Act of 1965 (20 U.S.C. 1078(b)(1)(M)) is amended--
            (1) by striking ``or'' at the end of clause (ii);
            (2) by inserting ``or'' after the semicolon at the end of 
        clause (iii); and
            (3) by inserting after clause (iii) the following new 
        clause:
                            ``(iv) not in excess of 2 years throughout 
                        which a borrower who holds a degree in early 
                        childhood education or a related discipline, 
                        and is a licensed child care provider, provides 
                        child care services not less than 30 hours per 
                        week for compensation as a child care provider 
                        or as an employee of a child care provider, and 
                        for purposes of this clause a borrower shall be 
                        considered to have a degree in early childhood 
                        education or a related discipline if the degree 
                        prepares individuals to provide care and 
                        education to groups of children younger than 
                        school-age, or to groups of school age children 
                        during out-of-school periods;''.
    (c) Federal Direct Student Loans.--Section 455(f)(2) of the Higher 
Education Act of 1965 (20 U.S.C. 1087e(f)(1)) is amended--
            (1) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (2) by inserting after subparagraph (B) the following new 
        subparagraph:
                    ``(C) not in excess of 2 years throughout which a 
                borrower who holds a degree in early childhood 
                education or a related discipline, and is a licensed 
                child care provider, provides child care services not 
                less than 30 hours per week for compensation as a child 
                care provider or as an employee of a child care 
                provider, and for purposes of this subparagraph, a 
borrower shall be considered to have a degree in early childhood 
education or a related discipline if the degree prepares individuals to 
provide care and education to groups of children younger than school-
age, or to groups of school age children during out-of-school 
periods;''.

                 TITLE IV--RESEARCH AND DEMONSTRATIONS

SEC. 401. AUTHORITY TO MAKE GRANTS FOR RESEARCH AND DEMONSTRATIONS.

    (a) Authority.--The Child Care and Development Block Grant Act of 
1990 (42 U.S.C. 9858b et seq.) is amended by adding at the end the 
following:

``SEC. 658T. RESEARCH AND DEMONSTRATIONS.

    ``(a) In General.--The Secretary may, either directly or through 
grants, contracts, or other arrangements, carry out research, 
demonstration projects, and other activities relating to child care 
services, including activities designed to improve the quality and 
increase the availability of child care services.
    ``(b) Allowable Activities.--Activities referred to in subsection 
(a) may include the following:
            ``(1) Research on child care needs of low-income 
        families.--Research designed to identify and overcome barriers 
        restricting availability, affordability, and quality of child 
        care for low-income families.
            ``(2) Demonstrations of technology-based education and 
        training.--Demonstration projects testing use of remote site 
        and interactive computer technology to provide education and 
        training to child care providers and parents.
            ``(3) Demonstration projects for new methods.--
        Demonstration projects addressing the particular child care 
        needs of certain parents, such as stay-at-home parents of 
        newborns or newly adopted children, low-income families, single 
        parents, and parents of children with special needs.
            ``(4) National center on child care statistics.--
        Establishment and operation of a National Center on Child Care 
        Statistics for the collection and dissemination of data and 
        information on child care.
            ``(5) Hotline and consumer education.--Establishment and 
        operation of a hotline to assist parents to locate their local 
        child care resource and referral agency and public education 
        activities to assist parents in becoming informed consumers of 
        quality child care.''.
    (b) Authorization of Appropriations for Research and 
Demonstrations.--
            (1) Authorization.--Section 658B of the Child Care and 
        Development Block Grant Act of 1990 (42 U.S.C. 9858), as 
        amended by section 201, is amended by adding at the end the 
        following:
    ``(c) Authorization of Appropriations for Research and 
Demonstrations.--There is authorized to be appropriated to carry out 
section 658T $30,000,000 for each of the fiscal years 1999, 2000, 2001, 
2002, and 2003.''.
            (2) Technical amendments.--Section 658O of the Child Care 
        and Development Block Grant Act of 1990 (42 U.S.C. 9858m) is 
        amended--
                    (A) in subsection (a)--
                            (i) in paragraph (1) by inserting ``(other 
                        than funds appropriated under section 
                        658B(c))'' after ``subchapter'', and
                            (ii) in paragraph (2) by inserting ``(other 
                        than subsection (c) of such section)'' after 
                        ``section 658(B)'', and
                    (B) in subsection (b) by inserting ``(other than 
                subsection (c) of such section)'' after ``section 
                658(B)''.
    (c) Report to Congress.--Section 658L of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858j) is amended by 
inserting ``and progress on development of research and demonstration 
projects carried out under section 658T'' after ``section 658K''.

 TITLE V--AMENDMENTS TO THE CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT 
                                OF 1990

SEC. 501. CERTIFICATION RELATING TO PAYMENT RATES.

    (a) Amendment.--Section 658E(c)(4)(A) of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858c(c)(4)(A)) is 
amended by inserting ``(based on a survey of the cost of child care 
services in local markets throughout the State, conducted not more than 
2 years before the date the application is submitted under subsection 
(a))'' after ``sufficient''.
    (b) Application of Amendment.--The amendment made by subsection (a) 
shall not apply with respect to applications submitted for fiscal years 
beginning before the date of the enactment of this Act.

SEC. 502. AUTHORIZATION OF APPROPRIATIONS.

    Section 658B of the Child Care and Development Block Grant Act of 
1990 (42 U.S.C. 9858) is amended by striking ``2002'' and inserting 
``1998, and $2,000,000,000 for each of the fiscal years 1999, 2000, 
2001, 2002, and 2003''.

                 TITLE VI--CHILD AND ADULT FOOD PROGRAM

SEC. 601. REVISION OF REIMBURSEMENT RATES FOR FAMILY OR GROUP DAY CARE 
              HOMES UNDER THE CHILD AND ADULT CARE FOOD PROGRAM UNDER 
              THE NATIONAL SCHOOL LUNCH ACT.

    (a) In General.--Section 17(f)(3) of the National School Lunch Act 
(42 U.S.C. 1766(f)(3)) is amended--
            (1) in subparagraph (A)(iii)(I)--
                    (A) in division (aa), by striking ``95 cents for 
                lunches and suppers, 27 cents for breakfasts, and 13 
                cents for supplements'' and inserting ``$1.03 for 
                lunches and suppers, 38 cents for breakfasts, and 18 
                cents for supplements''; and
                    (B) in division (bb), by striking ``1997'' and 
                inserting ``1998''; and
            (2) in the second sentence of subparagraph (B), by 
        inserting after ``Such levels'' the following: ``shall be those 
        levels in effect on June 30, 1998, increased by $2.00 per home 
        and''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on June 30, 1998, or the date of the enactment of this Act, 
whichever is later.

                    TITLE VII--SENSE OF THE CONGRESS

SEC. 701. SENSE OF THE CONGRESS.

    It is the sense of the Congress that funds should be appropriated 
under the amendments made by this Act to the maximum extent authorized 
and consistently with achieving a balanced Federal budget.
                                 <all>