[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3524 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 3524
To amend the Child Care and Development Block Grant Act of 1990 to
provide access to early care and education so that families can work
and children can receive quality custodial care.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 19, 2001
Mr. George Miller of California (for himself, Mr. Andrews, Mr. Owens,
Mr. Moran of Virginia, Mr. Hinojosa, Ms. Lee, Mr. Frank, Ms. Woolsey,
Mr. Green of Texas, Mr. Kildee, Ms. McCollum, Mr. Abercrombie, Mr.
McGovern, Ms. DeLauro, Mr. Nadler, Mr. Brown of Ohio, Mr. Stark, and
Mrs. McCarthy of New York) introduced the following bill; which was
referred to the Committee on Education and the Workforce, and in
addition to the Committee on Ways and Means, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To amend the Child Care and Development Block Grant Act of 1990 to
provide access to early care and education so that families can work
and children can receive quality custodial care.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Child Development
and Family Employment Act of 2002''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--CHILD CARE SUBSIDIES DEVELOPMENT FUND
Sec. 101. Purpose and goals.
Sec. 102. Authorization of appropriations.
Sec. 103. State plan requirements.
Sec. 104. Payment rates.
Sec. 105. Child care accountability improvements.
Sec. 106. Incentive grants to States.
Sec. 107. Administration and enforcement.
Sec. 108. Reports.
Sec. 109. Amounts reserved.
Sec. 110. Definitions.
Sec. 111. Conforming amendments.
TITLE II--CHILD CARE QUALITY IMPROVEMENT
Sec. 201. Short title.
Sec. 202. Findings and purpose.
Sec. 203. Definitions.
Sec. 204. Funds for child care provider development and retention
grants and for child care provider
scholarships.
Sec. 205. Allotments to States.
Sec. 206. Application and plan.
Sec. 207. Child care provider development and retention grant program.
Sec. 208. Child care provider scholarship program.
Sec. 209. Annual report.
Sec. 210. Authorization of appropriations.
TITLE I--CHILD CARE SUBSIDIES DEVELOPMENT FUND
SEC. 101. PURPOSE AND GOALS.
(a) Purpose and Goals.--Section 658A of the Child Care and
Development Block Grant Act of 1990 (42 U.S.C. 9801 note) is amended--
(1) in the heading by striking ``and goals'' and inserting
``, purpose, and goals'';
(2) in subsection (b)--
(A) in subparagraph (4) by striking ``and'' at the
end;
(B) in subparagraph (5) by striking the period at
the end and inserting ``; and''; and
(C) by adding the end the following:
``(6) to assist States to provide access to high quality
child care that promotes early learning and facilitates school
readiness.''; and
(D) by redesignating such subsection as subsection
(c); and
(3) by inserting after subsection (a) the following:
``(b) Statement of Purpose.--It is the purpose of this subchapter
to provide low-income families access to safe, quality child care so
that families can work and young children can receive the high quality
early care and learning they need to start school ready to learn and
school-age children can receive after-school care and enrichment.''.
SEC. 102. AUTHORIZATION OF APPROPRIATIONS.
(a) Child Care and Development Block Grant Act of 1990.--Section
658B of the Child Care and Development Block Grant Act of 1990 (42
U.S.C. 9858) is amended to read as follows:
``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS; AMOUNTS AVAILABLE FOR
INCENTIVE GRANTS TO IMPROVE QUALITY OF CHILD CARE
SERVICES.
``(a) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this subchapter--
``(1) $4,000,000,000 for each of the fiscal year 2003;
``(2) $5,000,000,000 for each of the fiscal year 2004;
``(3) $6,000,000,000 for each of the fiscal year 2005;
``(4) $7,000,000,000 for each of the fiscal year 2006; and
``(5) $8,000,000,000 for each of the fiscal year 2007.
``(b) Amounts Available for Incentive Grants To Improve Quality of
Child Care Services.--Of the amounts made available under section
418(c)(2) of the Social Security Act (42 U.S.C. 618(c)(2)) to carry out
activities under this subchapter--
``(1) $500,000,000 for fiscal year 2003;
``(2) $500,000,000 for fiscal year 2004;
``(3) $500,000,000 for fiscal year 2005;
``(4) $750,000,000 for fiscal year 2006; and
``(5) $750,000,000 for fiscal year 2007;
shall be used to make grants under section 658H after reserving the
amounts required by section 658O(a)(3).''.
(b) Social Security Act.--Section 418 of the Social Security Act
(42 U.S.C. 618) is amended--
(1) in subsection (a)--
(A) in paragraph (1) by inserting ``and subsection
(c)(2)'' after ``paragraph (3)''; and
(B) in paragraph (3) by striking subparagraphs (A)
through (F) and inserting the following:
``(A) $4,217,000,000 for fiscal year 2003;
``(B) $5,317,000,000 for fiscal year 2004;
``(C) $6,417,000,000 for fiscal year 2005;
``(D) $7,517,000,000 for fiscal year 2006; and
``(E) $8,617,000,000 for fiscal year 2007.''; and
(2) in subsection (c)--
(A) by inserting ``(1)'' before
``Notwithstanding'';
(B) by inserting ``and except as provided in
paragraph (2)'' after ``law''; and
(C) by adding at the end the following:
``(2) Notwithstanding any other provision of law, from the amounts
appropriated under subsection (a)(3) for fiscal years 2003 through
2007, the Secretary shall carry out section 658B(b) of the Child Care
and Development Block Grant Act of 1990 (42 U.S.C. 9858(b)).''.
SEC. 103. STATE PLAN REQUIREMENTS.
Section 658E(c)(2) of the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858c(c)(2)) is amended--
(1) in subparagraph (A)--
(A) in clause (ii) by striking ``and'' at the end;
(B) in clause (iii) by adding ``and'' at the end;
and
(C) by inserting after clause (iii) the following:
``(iv) in order to help ensure that parents
have the freedom to choose quality center-based
child care services, the State shall make
significant effort to develop contracts with
accredited child care providers in low-income
and rural communities;'';
(2) by amending subparagraph (D) to read as follows:
``(D) Consumer education information.--Certify that
the State will collect and disseminate to parents of
eligible children and the general public, consumer
education information that will promote informed child
care choices, and describe how the State will inform
parents receiving assistance under a State program
funded under part A of title IV of the Social Security
Act (42 U.S.C. 601 et seq.) and other low-income
parents about eligibility for assistance under this
subchapter.'';
(3) by amending subparagraph (H) to read as follows:
``(H) Meeting the needs of certain populations.--
Demonstrate the manner in which the State will meet the
specific child care needs of families who are receiving
assistance under a State program under part A of title
IV of the Social Security Act, families who are
attempting through work activities to transition off of
such assistance program, families with children with
special needs, low-income families not receiving cash
assistance under a State program under part A of title
IV of the Social Security Act, and families that are at
risk of becoming dependent on such assistance.''; and
(4) by adding at the end the following:
``(I) Availability of staff.--Describe how the
State will ensure that staff from the lead agency
described in section 658D will be available, at the
offices of the State program funded under part A of
title IV of the Social Security Act, to provide
information about eligibility for assistance under this
subchapter and to assist individuals in applying for
such assistance.
``(J) Eligibility redetermination.--Demonstrate
that each child that receives assistance under this
subchapter in the State will receive such assistance
for not less than 1 year before the State redetermines
the eligibility of the child under this subchapter.
``(K) Establishment of training requirements.--
Certify that there are training requirements in effect
within the State, under State or local law, that are
designed to support the learning and development of
children and that are applicable to all child care
providers that provide services for which assistance is
made available under this subchapter. Such requirements
shall include requirements relating to preservice
training in childhood development. Such training shall
be relevant to the ages of the children for whom such
provider delivers care.
``(i) For States that do not presently
require preservice training in child
development meeting the requirements specified
in this subparagraph--
``(I) the State shall submit as
part of its plan, how it will ensure
that this subparagraph is implemented
not later than 1 year after the date of
the enactment of Child Development and
Family Employment Act of 2002; and
``(II) the State may elect for a
child care provider who is not required
to be registered, licensed, or
regulated but who must comply with
section 658E(c)(F), to consider
inservice training in child development
that is completed not later than 60
days after a child's first day of
enrollment with such provider, as
compliance with this subparagraph.
``(ii) Nothing in clause (i) shall be
considered to preempt or supersede any State or
local law that requires child care providers to
have preservice training in child development.
``(L) Insuring the safety of children.--Certify
that there are requirements in effect within the State,
under State or local law, that require that evaluators
from an appropriate State or local agency make not less
than 2 unannounced visits annually to each child care
provider in the State that provides services for which
assistance is made available under this subchapter. A
State may elect to exempt from this subparagraph child
care providers who are not required to be licensed or
regulated but who are required to comply with
subparagraph (F).
``(M) Supplement not supplant.--Provide assurances
that the amounts paid to a State under this subchapter
shall be used to supplement and not supplant other State or local funds
expended or otherwise available to support payments for child care
assistance and to increase the quality of available child care for
eligible families under this subchapter.''.
SEC. 104. PAYMENT RATES.
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--
(1) by striking ``such access'' and inserting ``equal
access to comparable quality and types of services''; and
(2) by adding at the end the following:
``(i) Market rate surveys (that reflect
variations in the cost of child care services
by locality) shall be conducted by the State
not less often than at 2-year intervals, and
the results of such surveys shall be used to
implement payment rates that ensure equal
access to comparable services as required by
this subparagraph.
``(ii) Payment rates shall be adjusted at
intervals between such surveys to reflect
increases in the cost of living, in such manner
as the Secretary may specify.
``(iii) Payment rates shall reflect
variations in the cost of providing child care
services for children of different ages and
providing different types of care.''.
SEC. 105. CHILD CARE ACCOUNTABILITY IMPROVEMENTS.
Section 658G of the Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858e) is amended--
(1) by amending the heading to read as follows:
``SEC. 658G. CHILD CARE ACCOUNTABILITY IMPROVEMENTS.'',
(2) by amending the matter following the section heading to
read as follows:
``(a) Activities To Improve the Quality of Child Care.--
``(1) In general.--A State that receives funds to carry out
this subchapter shall reserve and use not less than 16 percent
of the funds for improvements in the quality of child care
services provided in the State and in political subdivisions of
the State.
``(A) Not less than 35 percent of the funds
reserved under this paragraph shall be used for
activities that are designed to increase the quality
and supply of child care services for children from
birth through 3 years of age.
``(B) Funds reserved under this paragraph shall be
used for 1 or more activities consisting of--
``(i) providing directly, or providing
financial assistance to private nonprofit
organizations or public entities (including
units of general purpose local government) for
the development, establishment, expansion,
operation, and coordination of, child care
resource and referral services;
``(ii) making grants or providing loans to
eligible child care providers to assist the
providers in meeting applicable State and local
child care standards and recognized
accreditation standards;
``(iii) improving the ability of State or
local government, as applicable, to monitor
compliance with, and to enforce, State and
local licensing and regulatory requirements
(including registration requirements)
applicable to child care providers;
``(iv) providing training and technical
assistance in areas relating to the provision
of child care services, such as training
relating to promotion of health and safety,
promotion of good nutrition, provision of first
aid, recognition of communicable diseases,
child abuse detection and prevention, and care
of children with special needs;
``(v) improving salaries and other
compensation paid to full-time and part-time
staff who provide child care services for which
assistance is made available under this
subchapter;
``(vi) making grants or providing financial
assistance to eligible child care providers for
training in child development and early
education;
``(vii) making grants or providing
financial assistance to eligible child care
providers to support delivery of early
education and child development activities;
``(viii) making grants or providing
financial assistance to eligible child care
providers to make minor renovations to such
providers' physical environments that enhance
the quality of the child care services they
provide;
``(ix) improving and expanding the supply
of child care services for children with
special needs;
``(x) supporting the system described in
paragraph (2); and
``(xi) other activities that can be
demonstrated to increase the quality of child
care services and parental choice.
``(2) Child care resource and referral system.--The State
shall use a portion of the funds reserved under paragraph (1)
to support a system of local child care resource and referral
organizations coordinated by a statewide-led child care
resource and referral organization. The local child care
resource and referral organizations shall--
``(A) provide parents in the State with information
and support concerning child care options in their
communities;
``(B) collect data on the supply of and demand for
child care in political subdivisions within the State;
``(C) develop links with the business community or
other organizations involved in providing child care
services;
``(D) increase the supply and improve the quality
of child care in the State and in political
subdivisions in the State;
``(E) hire specialists in health, mental health,
early literacy, special needs, and infant and toddler
care to support or supplement community child care
providers; or
``(F) provide training or facilitate connections
for training to community child care providers.''.
SEC. 106. INCENTIVE GRANTS TO STATES.
The Child Care and Development Block Grant Act of 1990 (42 U.S.C.
9858 et seq.) is amended by inserting after section 658G the following:
``SEC. 658H. INCENTIVE GRANTS TO STATES.
``(a) Authority.--
``(1) In general.--The Secretary shall use the amount made
available under section 658B(b) for a fiscal year to make
grants to eligible States in accordance with this section.
``(2) Annual payments.--The Secretary shall make an annual
payment for such a grant to each eligible State out of the
allotment for that State determined under subsection (c).
``(b) Eligible States.--
``(1) In general.--In this section, the term `eligible
State' means a State that--
``(A) has conducted a survey of the market rates
for child care services in the State within the 2 years
preceding the date of the submission of an application
under paragraph (2); and
``(B) submits an application in accordance with
paragraph (2).
``(2) Application.--
``(A) In general.--To be eligible to receive a
grant under this section, a State shall submit an
application to the Secretary at such time, in such
manner, and accompanied by such information, in
addition to the information required under subparagraph
(B), as the Secretary may require.
``(B) Information required.--Each application
submitted for a grant under this section shall--
``(i) detail the methodology and results of
the State market rates survey conducted
pursuant to paragraph (1)(A);
``(ii) describe the State's plan to
increase payment rates from the initial
baseline determined under clause (i);
``(iii) describe how the State will
increase payment rates in accordance with the
market survey results, for all types of child
care providers who provide services for which
assistance is made available under this
subchapter;
``(iv) describe how rates are set to
reflect the variations in the cost of providing
care for children of different ages and
different types of care; and
``(v) describe how the State will
prioritize increasing payment rates for care of
higher-than-average quality, such as care by
accredited providers, care that includes the
provision of comprehensive services, care
provided at nonstandard hours, care for
children with special needs, care in low-income
and rural communities, and care of a type that
is in short supply.
``(3) Continuing eligibility requirement.--The Secretary
may make an annual payment under this section to an eligible
State only if--
``(A) the Secretary determines that the State has
made progress, through the activities assisted under
this subchapter, in maintaining increased payment
rates; and
``(B) at least once every 2 years, the State
conducts an update of the survey described in paragraph
(1)(A).
``(4) Requirement of matching funds.--
``(A) In general.--To be eligible to receive a
grant under this section, the State shall agree to make
available State contributions from State sources toward
the costs of the activities to be carried out by a
State pursuant to subsection (d) in an amount that is
not less than 20 percent of such costs.
``(B) Determination of state contributions.--State
contributions shall be in cash. Amounts provided by the
Federal Government may not be included in determining
the amount of such State contributions.
``(c) Allotments to Eligible States.--The amount made available
under section 658B(b) for a fiscal year shall be allotted among the
eligible States in the same manner as amounts are allotted under
section 658O(b).
``(d) Use of Funds.--An eligible State that receives a grant under
this section shall use the funds received to significantly increase the
payment rate for the provision of child care assistance in accordance
with this subchapter up to the 150th percentile of the market rate
survey described in subsection (b)(1)(A).
``(e) Evaluations and Reports.--
``(1) State evaluations.--Each eligible State shall submit
to the Secretary, at such time and in such form and manner as
the Secretary may require, information regarding the State's
efforts to increase payment rates and the impact increased
rates are having on the quality of, and accessibility to, child
care in the State.
``(2) Reports to congress.--The Secretary shall submit
biennial reports to Congress on the information described in
paragraph (1). Such reports shall include data from the
applications submitted under subsection (b)(2) as a baseline
for determining the progress of each eligible State in
maintaining increased payment rates.
``(f) Payment Rate.--In this section, the term `payment rate' means
the rate of reimbursement to providers for subsidized child care.''.
SEC. 107. ADMINISTRATION, ENFORCEMENT, AND EVALUATION.
Section 658I of the Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858g) is amended--
(1) in the heading by striking ``and enforcement'' and
inserting ``, enforcement, and evaluation'';
(2) in subsection (a)(3) by inserting before the period at
the end ``and including the establishment of a national
training and technical assistance center specializing in infant
and toddler care and their families''; and
(3) by adding at the end the following:
``(c) Federal Administration and Evaluation Activities.--The
Secretary shall--
``(1) establish a national data system through grants,
contracts or cooperative agreements to develop statistics on
the supply of, demand for, and quality of child care, early
education, and non-school-hours programs, including use of data
collected through child care resource and referral
organizations at the national, State, and local levels; and
``(2) prepare and submit to Congress an annual report on
the supply of, demand for, and quality of child care, early
education, and non-school-hours programs, using data collected
through State and local child care resource and referral
organizations and other sources.''.
SEC. 108. REPORTS.
Section 658K(a) of the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858i(a)) is amended--
(1) in paragraph (1)(B)--
(A) in clause (ix) by striking ``and'' at the end;
(B) in clause (x) by adding ``and'' at the end; and
(C) by inserting after clause (x) the following:
``(xi) whether the child care provider is
accredited by a national or State accrediting
body;''; and
(2) in paragraph (2)--
(A) in the matter preceding subparagraph (A) by
striking ``aggregate data concerning'';
(B) in subparagraph (D) by striking ``and'' at the
end;
(C) in subparagraph (E) by adding ``and'' at the
end; and
(D) by indenting the left margin of subparagraphs
(A) through (E) 2 ems to the right and redesignating
such subparagraphs as clauses (i) through (v),
respectively;
(E) by inserting after clause (v), as so
redesignated, the following:
``(vi) findings from market rate surveys,
disaggregated by the types of services provided
and by the sub-State localities, as
appropriate;''; and
(F) by inserting before clause (i), as so
redesignated, the following:
``(A) information on how all of the funds reserved
under section 658G were allocated and spent, and
information on the effect of those expenditures, to the
maximum extent practicable; and
``(B) aggregate date concerning--''.
SEC. 109. AMOUNTS RESERVED.
Section 658O(a) of the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858m(a)) is amended by adding at the end the
following:
``(3) Administration.--The Secretary shall reserve not more
than 2 percent of the amount made available to carry out this
subchapter (including the amount made available under section
418(c)(2) of the Social Security Act) for each fiscal year to
carry out section 658I.''.
SEC. 110. DEFINITIONS.
Section 658P(4)(C) of the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858n(4)(C)) is amended--
(1) in clause (i) by striking ``or'' at the end;
(2) in clause (ii) by striking the period and inserting ``;
or''; and
(3) by adding at the end the following:
``(iii) is a foster child.''.
SEC. 111. CONFORMING AMENDMENTS.
The Child Care and Development Block Grant Act of 1990 (42 U.S.C.
9858 et seq.) is amended--
(1) in section 658E(c)(3)--
(A) in subparagraph (B) by striking ``through (5)
of section 658A(b)'' and inserting ``through (6) of
section 658A(c)''; and
(B) in subparagraph (D) by striking ``1997 through
2002'' and inserting ``2003 through 2007'';
(2) in section 658K(a)(2) by striking ``1997'' and
inserting ``2003''; and
(3) in section 658L--
(A) by striking ``July 31, 1998'' and inserting
``October 1, 2004'';
(B) by striking ``Economic and Educational
Opportunities'' and inserting ``Education and the
Workforce''; and
(C) by striking ``Labor and Human Resources'' and
inserting ``Health, Education, Labor, and Pensions''.
TITLE II--CHILD CARE QUALITY IMPROVEMENT
SEC. 201. SHORT TITLE.
This title may be cited as the ``Focus On Committed and Underpaid
Staff for Children's Sake Act'' or as the ``FOCUS Act''.
SEC. 202. FINDINGS AND PURPOSE.
(a) Findings.--Congress makes the following findings:
(1) Research on early brain development and early childhood
demonstrates that the experiences children have and the
attachments children form early in life have a decisive, long-
lasting impact on their later development and learning.
(2) High-quality, developmentally appropriate child care
beginning in early childhood and continuing through the years
that children are in school improves the scholastic success and
educational attainment of children, and the success and attainment
persist into adulthood.
(3) According to a growing body of research, the single
most important determinant of child care quality is the
presence of consistent, sensitive, well-trained, and well-
compensated child care providers. However, child care programs
nationwide experience high turnover in teaching staff, fueled
by poor compensation and few opportunities for advancement.
(4) Despite the important role child care providers can
play in early child development and learning, in 1999 the
average wage for a child care provider was $7.42 per hour, or
$15,430 annually. For full-time, full-year work, the average
annual wage for a child care provider was not much above the
1999 poverty line of $13,423 for a family consisting of a
parent and 2 children. Family child care providers earned even
less. The median weekly wage of a family child care provider in
1999 was $264, which equals an annual wage of $13,728.
(5) To offer compensation that would be sufficient to
attract and retain qualified child care providers, child care
programs would have to charge parents fees that many parents
could not afford. For programs that serve low-income children
whose families qualify for Federal and State child care
subsidies, the reimbursement rates set by the State strongly
influence the level of compensation that staff receive. Current
reimbursement rates for center-based child care services and
family child care services are insufficient to recruit and
retain qualified child care providers and to ensure high-
quality services for children.
(6) As a result of low wages and limited benefits, many
child care providers do not work for long periods in the child
care field. Approximately 30 percent of all teaching staff
employed at child care centers leaves employment with a child
care center each year. Teachers leaving the profession are
being replaced by staff with less education and formal training
in early child development.
(7) Child care providers, as well as the children,
families, and businesses that depend upon the providers, suffer
the consequences of inadequate compensation. This is true, with
few exceptions, for providers in all types of programs,
including subsidized and nonsubsidized programs, programs
offered by for-profit and nonprofit entities, and programs in
large and small child care settings.
(8) Because of the severe nationwide shortage of qualified
staff available for employment by child care programs, several
States have recently initiated programs to improve the quality
of child care by increasing the training and compensation of
child care providers. Such programs encourage the training,
education, and increased retention of qualified child care
providers by offering financial incentives, including
scholarships and increases in compensation, that range from
$350 to $6,500 annually.
(b) Purposes.--The purposes of this title are--
(1) to establish the Child Care Provider Development and
Retention Grant Program and the Child Care Provider Scholarship
Program; and
(2) to help children receive the high quality child care
and early education the children need for positive cognitive
and social development, by rewarding and promoting the
retention of committed, qualified child care providers and by
providing financial assistance to improve the educational
qualifications of child care providers.
SEC. 203. DEFINITIONS.
In this title:
(1) Child care provider.--The term ``child care provider''
means an individual who provides a service directly to a child
on a person to person basis for compensation for--
(A) a center-based child care provider that is
licensed or regulated under State or local law and that
satisfies the State and local requirements applicable
to the child care services provided;
(B) a licensed or regulated family child care
provider that satisfies the State and local
requirements applicable to the child care services
provided; or
(C) an out-of-school time program that is licensed
or regulated under State or local law and that
satisfies the State and local requirements applicable
to the child care services provided.
(2) Family child care provider.--The term ``family child
care provider'' 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).
(3) Indian tribe.--The term ``Indian tribe'' has the
meaning given such term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(4) In-kind contribution.--The term ``in-kind
contribution'' means payment of the costs of participation of
eligible child care providers in health insurance programs or
retirement programs.
(5) Lead agency.--The term ``lead agency'' means the agency
designated under section 658D of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858b).
(6) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
(7) State.--The term ``State'' means any of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, Guam, American Samoa, or the Commonwealth of the Northern
Mariana Islands.
(8) Tribal organization.--The term ``tribal organization''
has the meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
SEC. 204. FUNDS FOR CHILD CARE PROVIDER DEVELOPMENT AND RETENTION
GRANTS AND FOR CHILD CARE PROVIDER SCHOLARSHIPS.
(a) In General.--The Secretary may allot and distribute funds
appropriated to carry out this title to eligible States and Indian
tribes and tribal organizations to pay for the Federal share of the
cost of making grants under sections 207 and 208 to eligible child care
providers.
(b) Allotments.--The funds shall be allotted and distributed by the
Secretary in accordance with section 205, and expended by the States
(directly, or at the option of the States, through units of general
purpose local government), and by Indian tribes and tribal
organizations, in accordance with this title.
SEC. 205. ALLOTMENTS TO STATES.
(a) Amounts Reserved.--
(1) Territories and possessions.--The Secretary shall
reserve not more than \1/2\ of 1 percent of the funds
appropriated to carry out this title for any fiscal year for
distribution to Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands, to be allotted in accordance with
their respective needs, to plan and carry out programs and
activities to encourage child care providers to improve their
qualifications and to retain qualified child care providers in
the child care field.
(2) Indian tribes and tribal organizations.--The Secretary
shall reserve not more than 3 percent of the funds appropriated
to carry out this title for any fiscal year for payments to
Indian tribes and tribal organizations with applications
approved under subsection (c), to plan and carry out programs
and activities to encourage child care providers to improve
their qualifications and to retain qualified child care
providers in the child care field.
(b) Allotments to Remaining States.--
(1) General authority.--From the funds appropriated to
carry out this title for any fiscal year and remaining after
the reservations made under subsection (a), the Secretary shall
allot to each State (excluding Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands) an amount equal
to the sum of--
(A) an amount that bears the same ratio to 50
percent of such remainder as the product of the young
child factor of the State and the allotment percentage
of the State bears to the sum of the corresponding
products for all States; and
(B) an amount that bears the same ratio to 50
percent of such remainder as the product of the school
lunch factor of the State and the allotment percentage
of the State bears to the sum of the corresponding
products for all States.
(2) Young child factor.--In this subsection, the term
``young child factor'' means the ratio of the number of
children under 5 years of age in the State to the number of
such children in all the States, as determined according to the
most recent annual estimates of population in the States, as
provided by the Bureau of the Census.
(3) School lunch factor.--In this subsection, the term
``school lunch factor'' means the ratio of the number of
children who are receiving free or reduced price lunches under
the school lunch program established under the Richard B.
Russell National School Lunch Act (42 U.S.C. 1751 et seq.) in
the State to the number of such children in all the States, as
determined annually by the Department of Agriculture.
(4) Allotment percentage.--
(A) In general.--Except as provided in subparagraph
(B), for purposes of this subsection, the allotment
percentage for a State shall be determined by dividing
the per capita income of all individuals in the United
States, by the per capita income of all individuals in
the State.
(B) Limitations.--For purposes of this subsection,
if an allotment percentage determined under
subparagraph (A)--
(i) is more than 1.2 percent, the allotment
percentage of that State shall be considered to
be 1.2 percent; and
(ii) is less than 0.8 percent, the
allotment percentage of the State shall be
considered to be 0.8 percent.
(C) Per capita income.--For purposes of
subparagraph (A), per capita income shall be--
(i) determined at 2-year intervals;
(ii) applied for the 2-year period
beginning on October 1 of the first fiscal year
beginning after the date such determination is
made; and
(iii) equal to the average of the annual
per capita incomes for the most recent period
of 3 consecutive years for which satisfactory
data are available from the Department of
Commerce at the time such determination is
made.
(c) Payments to Indian Tribes and Tribal Organizations.--
(1) Reservation of funds.--From amounts reserved under
subsection (a)(2), the Secretary may make grants to or enter
into contracts with Indian tribes and tribal organizations that
submit applications under this subsection, to plan and carry
out programs and activities to encourage child care providers
to improve their qualifications and to retain qualified child
care providers in the child care field.
(2) Applications and requirements.--To be eligible to
receive a grant or contract under this subsection, an Indian
tribe or tribal organization shall submit an application to the
Secretary at such time, in such manner, and containing such
information as the Secretary may require. The application shall
provide that the applicant--
(A) will coordinate the programs and activities
involved, to the maximum extent practicable, with the
lead agency in each State in which the applicant will
carry out such programs and activities; and
(B) will make such reports on, and conduct such
audits of the funds made available through the grant or
contract for, programs and activities under this title
as the Secretary may require.
(d) Data and Information.--The Secretary shall obtain from each
appropriate Federal agency, the most recent data and information
necessary to determine the allotments provided for in subsection (b).
(e) Reallotments.--
(1) In general.--Any portion of the allotment under
subsection (b) to a State for a fiscal year that the Secretary
determines will not be distributed to the State for such fiscal
year shall be reallotted by the Secretary to other States in
proportion to the original allotments made under such
subsection to such States for such fiscal year.
(2) Limitations.--
(A) Reduction.--The amount of any reallotment to
which a State is entitled under this subsection shall
be reduced to the extent that such amount exceeds the
amount that the Secretary estimates will be distributed
to the State to make grants under this title.
(B) Reallotments.--The amount of such reduction
shall be reallotted to States for which no reduction in
an allotment, or in a reallotment, is required by this
subsection, in proportion to the original allotments
made under subsection (b) to such States for such
fiscal year.
(3) Amounts reallotted.--For purposes of this title (other
than this subsection and subsection (b)), any amount reallotted
to a State under this subsection shall be considered to be part
of the allotment made under subsection (b) to the State.
(f) Cost-Sharing.--
(1) Federal share.--The Federal share of the cost of making
grants under sections 207 and 208, with funds allotted under
this section and distributed by the Secretary to a State, shall
be--
(A) not more than 90 percent of the cost of each
grant made under such sections, in the 1st fiscal year
for which the State receives such funds;
(B) not more than 85 percent of the cost of each
grant made under such sections, in the 2d fiscal year
for which the State receives such funds;
(C) not more than 80 percent of the cost of each
grant made under such sections, in the 3d fiscal year
for which the State receives such funds; and
(D) not more than 75 percent of the cost of each
grant made under such sections, in any subsequent
fiscal year for which the State receives such funds.
(2) State share.--The non-Federal share of the cost of
making such grants shall be paid by the State in cash or in the
form of an in-kind contribution, fairly evaluated by the
Secretary.
(g) Availability of Allotted Funds Distributed to States.--Of the
funds allotted under this section and distributed by the Secretary to a
State for a fiscal year--
(1) not less than 67.5 percent shall be available to the
State for grants under section 207;
(2) not less than 22.5 percent shall be available to the
State for grants under section 208; and
(3) not more than 10 percent shall be available to pay
administrative costs incurred by the State to carry out this
title.
SEC. 206. APPLICATION AND PLAN.
(a) Application.--To be eligible to receive a distribution of funds
allotted under section 205, a State shall submit to the Secretary an
application at such time, in such manner, and containing such
information as the Secretary may require by rule and shall include in
such application a State plan that satisfies the requirements of
subsection (b).
(b) Requirements of Plan.--
(1) Lead agency.--The State plan shall identify the lead
agency to make grants under this title for the State.
(2) Recruitment and retention of child care providers.--The
State plan shall describe how the lead agency will encourage
both the recruitment of eligible child care providers who are
new to the child care field and the retention of eligible child
care providers who have a demonstrated commitment to the child
care field.
(3) Notification of grant availability.--The State plan
shall describe how the lead agency will identify all eligible
child care providers in the State and notify the providers of
the availability of grants under this title.
(4) Distribution of grants.--The State plan shall describe
how the lead agency will make grants under sections 207 and 208
to child care providers in selected geographical areas in the
State in compliance with the following requirements:
(A) Selection of geographical areas.--For the
purpose of making such grants for a fiscal year, the
State shall--
(i) select a variety of geographical areas,
determined by the State, that, collectively--
(I) include urban areas, suburban
areas, and rural areas; and
(II) are areas whose residents have
diverse income levels; and
(ii) give special consideration to
geographical areas selected under this
subparagraph for the preceding fiscal year.
(B) Selection of child care providers to receive
grants.--In making grants under section 207, the State
may make grants only to eligible child care providers
in geographical areas selected under subparagraph (A),
but--
(i) may give special consideration in such
areas to eligible child care providers who have
attained a higher relevant educational
credential, who provide a specific kind of
child care services, who provide child care
services to populations who meet specific
economic characteristics, or who meet such other criteria as the State
may establish; and
(ii) shall give special consideration to
eligible child care providers who received a
grant under such section in the preceding
fiscal year.
(C) Limitation.--The State shall describe how the
State will ensure that grants made under section 207 to
child care providers will not be used to offset
reductions in the compensation of such providers.
(D) Reporting requirement.--With respect to each
particular geographical area selected under
subparagraph (A), the State shall provide an assurance
that the State will, for each fiscal year for which
such State receives a grant under section 207--
(i) include in the report required by
section 209, detailed information regarding--
(I) the continuity of employment of
the grant recipients as child care
providers with the same employer;
(II) with respect to each employer
that employed such a grant recipient,
whether such employer was accredited by
a recognized national or State
accrediting body during the period of
employment; and
(III) to the extent practicable and
available to the State, the rate and
frequency of employment turnover of
qualified child care providers
throughout such area,
during the 2-year period ending on the deadline
for submission of applications for grants under
section 207 for that fiscal year; and
(ii) provide a follow-up report, not later
than 90 days after the end of the succeeding
fiscal year that includes information
regarding--
(I) the continuity of employment of
the grant recipients as child care
providers with the same employer;
(II) with respect to each employer
that employed such a grant recipient,
whether such employer was accredited by
a recognized national or State
accrediting body during the period of
employment; and
(III) to the extent practicable and
available to the State, detailed
information regarding the rate and
frequency of employment turnover of
qualified child care providers
throughout such area,
during the 1-year period beginning on the date
on which the grant to the State was made under
section 207.
(5) Child care provider development and retention grant
program.--The State plan shall describe how the lead agency
will determine the amounts of grants to be made under section
207 in accordance with the following requirements:
(A) Sufficient amounts.--The State shall
demonstrate that the amounts of individual grants to be
made under section 207 will be sufficient--
(i) to encourage child care providers to
improve their qualifications; and
(ii) to retain qualified child care
providers in the child care field.
(B) Amounts to credentialed providers.--Such grants
made to child care providers who have a child
development associate credential and who are employed
full-time to provide child care services shall be in an
amount that is not less than $1,000 per year.
(C) Amounts to providers with higher levels of
education.--The State shall make such grants in amounts
greater than $1,000 per year to child care providers
who have higher levels of education than the education
required for a credential such as a child development
associate credential, according to the following
requirements:
(i) Providers with baccalaureate degrees in
relevant fields.--A child care provider who has
a baccalaureate degree in the area of child
development or early child education shall
receive a grant under section 207 in an amount
that is not less than twice the amount of the
grant that is made under section 207 to a child
care provider who has an associate of the arts
degree in the area of child development or
early child education.
(ii) Providers with associate degrees.--A
child care provider who has an associate of the
arts degree in the area of child development or
early child education shall receive a grant
under section 207 in an amount that is not less
than 150 percent of the amount of the grant
that is made under section 207 to a child care
provider who has a child development associate
credential and is employed full-time to provide
child care services.
(iii) Other providers with baccalaureate
degrees.--
(I) In general.--Except as provided
in subclause (II), a child care
provider who has a baccalaureate degree
in a field other than child development
or early child education shall receive
a grant under section 207 in an amount
equal to the amount of the grant that
is made under section 207 to a child
care provider who has an associate of
the arts degree in the area of child
development or early child education.
(II) Exception.--If a child care
provider who has such a baccalaureate
degree obtains additional educational
training in the area of child
development or early child education,
as specified by the State, such
provider shall receive a grant under
section 207 in an amount equal to the
amount of the grant that is made under
section 207 to a child care provider
who has a baccalaureate degree
specified in clause (i).
(D) Amounts to full-time providers.--The State
shall make a grant under section 207 to a child care
provider who works full-time in a greater amount than
the amount of the grant that is made under section 207
to a child care provider who works part-time, based on
the State definitions of full-time and part-time work.
(E) Amounts to experienced providers.--The State
shall make grants under section 207 in progressively
larger amounts to child care providers to reflect the
number of years worked as child care providers.
(6) Distribution of child care provider scholarships.--The
State plan shall describe how the lead agency will make grants
for scholarships in compliance with section 208 and shall
specify the types of educational and training programs for
which the scholarship grants made under such section may be
used, including only programs that--
(A) are administered by institutions of higher
education that are eligible to participate in student
financial assistance programs under title IV of the
Higher Education Act of 1965 (20 U.S.C. 1070 et seq.);
and
(B) lead to a State or nationally recognized
credential in the area of child development or early
child education, an associate of the arts degree in the
area of child development or early child education, or
a baccalaureate degree in the area of child development
or early child education.
(7) Employer contribution.--The State plan shall describe
how the lead agency will encourage employers of child care
providers to contribute to the attainment of education goals by
child care providers who receive grants under section 208.
(8) Supplementation.--The State plan shall provide
assurances that amounts received by the State to carry out
sections 207 and 208 will be used only to supplement, and not
to supplant, Federal, State, and local funds otherwise
available to support existing services and activities (as of
the date the amounts are used) that encourage child care
providers to improve their qualifications and that promote the
retention of qualified child care providers in the child care
field.
SEC. 207. CHILD CARE PROVIDER DEVELOPMENT AND RETENTION GRANT PROGRAM.
(a) In General.--A State that receives funds allotted under section
205 and made available to carry out this section shall expend such
funds to make grants to eligible child care providers in accordance
with this section, to improve the qualifications and promote the
retention of qualified child care providers.
(b) Eligibility To Receive Grants.--To be eligible to receive a
grant under this section, a child care provider shall--
(1) have a child development associate credential or
equivalent, an associate of the arts degree in the area of
child development or early child education, a baccalaureate
degree in the area of child development or early child
education, or a baccalaureate degree in an unrelated field; and
(2) be employed as a child care provider for not less than
1 calendar year, or (if the provider is employed on the date of
the eligibility determination in a child care program that
operates for less than a full calendar year) the program
equivalent of 1 calendar year, ending on the date of the
application for such grant, except that not more than 3 months
of education related to child development or to early child
education obtained during the corresponding calendar year may
be treated as employment that satisfies the requirements of
this paragraph.
(c) Preservation of Eligibility.--A State shall not take into
consideration whether a child care provider is receiving, may receive,
or may be eligible to receive any funds under section 208 for purposes
of selecting eligible child care providers to receive grants under this
section.
SEC. 208. CHILD CARE PROVIDER SCHOLARSHIP PROGRAM.
(a) In General.--A State that receives funds allotted under section
205 and made available to carry out this section shall expend such
funds to make scholarship grants to eligible child care providers in
accordance with this section, to improve their educational
qualifications to provide child care services.
(b) Eligibility Requirement for Scholarship Grants.--To be eligible
to receive a scholarship grant under this section, a child care
provider shall be employed as a child care provider for not less than 1
calendar year, or (if the provider is employed on the date of the
eligibility determination in a child care program that operates for
less than a full calendar year) the program equivalent of 1 calendar
year, ending on the date of the application for such grant.
(c) Selection of Grantees.--For purposes of selecting eligible
child care providers to receive scholarship grants under this section
and determining the amounts of such grants, a State shall not--
(1) take into consideration whether a child care provider
is receiving, may receive, or may be eligible to receive any
funds under any other provision of this title, or under any
other Federal or State law that provides funds for educational
purposes; or
(2) consider as resources of such provider any funds such
provider is receiving, may receive, or may be eligible to
receive under any other provision of this title, under any
other Federal or State law that provides funds for educational
purposes, or from a private entity.
(d) Cost-Sharing Required.--The amount of a scholarship grant made
under this section to an eligible child care provider shall be less
than the cost of the educational or training program for which such
grant is made.
(e) Annual Maximum Scholarship Grant Amount.--The maximum aggregate
dollar amount of a scholarship grant made by a State to an eligible
child care provider under this section in a fiscal year shall be
$1,500.
SEC. 209. ANNUAL REPORT.
A State that receives funds appropriated to carry out this title
for a fiscal year shall submit to the Secretary, not later than 90 days
after the end of such fiscal year, a report--
(1) specifying the uses for which the State expended such
funds, and the aggregate amount of funds (including State
funds) expended for each of such uses;
(2) containing available data relating to grants made with
such funds, including--
(A) the number of child care providers who received
such grants;
(B) the amounts of such grants;
(C) any other information that describes or
evaluates the effectiveness of this title;
(D) the particular geographical areas selected
under section 206 for the purpose of making such
grants;
(E) with respect to grants made under section 207--
(i) the number of years grant recipients
have been employed as child care providers;
(ii) the level of training and education of
grant recipients;
(iii) to the extent practicable and
available to the State, detailed information
regarding the salaries and other compensation
received by grant recipients to provide child
care services before, during, and after
receiving such grant;
(iv) the number of children who received
child care services provided by grant
recipients;
(v) information on family demographics of
such children;
(vi) the types of settings described in
subparagraphs (A), (B), and (C) of section
203(a)(1) in which grant recipients are
employed; and
(vii) the ages of the children who received
child care services provided by grant
recipients;
(F) with respect to grants made under section 208--
(i) the number of years grant recipients
have been employed as child care providers;
(ii) the level of training and education of
grant recipients;
(iii) to the extent practicable and
available to the State, detailed information
regarding the salaries and other compensation
received by grant recipients to provide child
care services before, during, and after
receiving such grant;
(iv) the types of settings described in
subparagraphs (A), (B), and (C) of section
203(a)(1) in which grant recipients are
employed;
(v) the ages of the children who received
child care services provided by grant
recipients;
(vi) the number of course credits or
credentials obtained by grant recipients; and
(vii) the amount of time taken for
completion of the educational and training
programs for which such grants were made; and
(G) such other information as the Secretary may
require by rule.
SEC. 210. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated $5,000,000,000 in the
aggregate for fiscal years 2002 through 2006 to carry out this title.
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