[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2566 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2566

      To improve early learning opportunities and promote school 
                 preparedness, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 23, 2002

 Mr. Kennedy (for himself, Mr. Gregg, Mrs. Murray, Mr. Voinovich, Mr. 
    Wellstone, Mr. Bond, Mr. Edwards, Mr. Stevens, and Mr. DeWine) 
introduced the following bill; which was read twice and referred to the 
          Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
      To improve early learning opportunities and promote school 
                 preparedness, 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 ``Early Care and Education Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Early childhood, which is the period in a child's life 
        from birth through age 6, is a critical time for children to 
        develop the physical, emotional, social, and cognitive skills 
        that the children will need for the rest of their lives.
            (2) Young children receive care in a wide variety of 
        settings. While 38 percent of those children receive care 
        solely from their parents, the remaining 62 percent receive 
        care through a variety of full-time and part-time arrangements, 
        including care by relatives, by nonrelatives (in a variety of 
        home-based settings), and through center-based programs.
            (3) Federal and State governments invest more than 
        $18,000,000,000 annually to help families (particularly low-
        income families) access early care and early education 
        activities. Yet, despite this investment, not all children are 
        entering school prepared to learn.
            (4) Learning is an active process that begins at birth, is 
        dependent on the existence of strong and stable relationships, 
        is influenced by a child's physical, emotional, social, and 
        cognitive capacities, and is shaped by a combination of biology 
        and experience.
            (5) Before children reach age 2, measurable differentiation 
        in their development and skills begins to appear. In the 
        absence of intervention, that differentiation may increase over 
        the preschool years.
            (6) Research shows that parental involvement and a stable 
        and well-educated workforce are important factors in improving 
        the quality of early care and early education programs and 
        improving outcomes for children.
            (7) The cognitive, social, and emotional development of 
        young children can be enhanced through parental involvement and 
        high-quality early care and early education activities that 
        motivate children to learn to read in order to benefit from 
        classroom instruction.
            (8) Research indicates that successful academic achievement 
        in education programs for children in kindergarten and grades 1 
        through 12 is linked to participation in high quality early 
        care and early education activities.

SEC. 3. PURPOSES.

    The purposes of this Act are--
            (1) to encourage States to improve the quality and 
        availability of early learning opportunities and activities for 
        young children;
            (2) to develop and retain a well-educated and trained early 
        childhood workforce;
            (3) to promote school preparedness by encouraging children, 
        families, and caregivers (in a variety of home-based and out-
        of-home settings) to engage in a variety of highly interactive, 
        developmentally appropriate, and age-appropriate activities, 
        during the first 6 years of the children's lives, that will--
                    (A) improve the children's social, emotional, and 
                behavioral skills; and
                    (B) foster their early cognitive and literacy 
                development; and
            (4) to promote parental and family involvement in the 
        education of young children.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given that 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            (2) Secretaries.--The term ``Secretaries'' means the 
        Secretary of Education and the Secretary of Health and Human 
        Services, as specified in a memorandum of understanding entered 
        into by the Secretaries.
            (3) State.--The term ``State'' means any of the several 
        States, the District of Columbia, and the Commonwealth of 
        Puerto Rico.
            (4) Young child.--The term ``young child'' means an 
        individual under the age of compulsory school attendance in the 
        State where the child resides.

SEC. 5. ALLOTMENT FORMULA.

    (a) Reservations.--
            (1) Indian tribes, alaska natives, and native hawaiians.--
                    (A) In general.--From the funds appropriated under 
                section 19 for a fiscal year, the Secretaries--
                            (i) shall reserve 1 percent of such funds 
                        for the Secretary of the Interior for incentive 
                        grants and bonus grants to Indian tribes (other 
                        than Regional Corporations);
                            (ii) shall reserve 0.2 percent of such 
                        funds for incentive grants and bonus grants to 
                        Regional Corporations; and
                            (iii) shall reserve 0.2 percent of such 
                        funds for incentive grants and bonus grants to 
                        Native Hawaiian entities.
                    (B) Requirements.--The provisions of this Act 
                (other than subsections (b) and (c)) that apply to a 
                State shall apply to an entity receiving funds under 
                this paragraph, in the manner and to the extent 
                provided by the Secretary of the Interior, or by the 
                Secretaries, as appropriate.
                    (C) Definitions.--In this paragraph:
                            (i) Indian tribe.--The term ``Indian 
                        tribe'' has the meaning given the term in 
                        section 4(e) of the Indian Self-Determination 
                        and Education Assistance Act (25 U.S.C. 
                        450b(e)).
                            (ii) Regional corporation.--The term 
                        ``Regional Corporation'' has the meaning given 
                        the term in section 419(4)(B) of the Social 
                        Security Act (42 U.S.C. 619(4)(B)).
            (2) Administration.--The Secretaries shall reserve not more 
        than 5 percent of the funds appropriated under section 19 for 
        each fiscal year to carry out the administration of this Act, 
        including section 10(g)(3)(B).
    (b) State Allotments.--
            (1) In general.--Subject to paragraph (2), from the funds 
        appropriated under section 19 for each fiscal year and 
        remaining after the reservations made under subsection (a), the 
        Secretaries--
                    (A) shall reserve 20 percent of the funds to make 
                grants under section 10(a); and
                    (B) from the balance, shall allot to each State an 
                amount equal to the sum of--
                            (i) an amount that bears the same ratio to 
                        50 percent of such balance as the number of 
                        individuals under age 6 in the State bears to 
                        the number of such individuals in all States; 
                        and
                            (ii) an amount that bears the same ratio to 
                        50 percent of such balance as the number of 
                        children in poverty in the State bears to the 
                        number of such children in all States.
            (2) Small state minimum allotment.--The Secretaries shall 
        ensure that no State shall receive an allotment under paragraph 
        (1)(B) for a fiscal year that is less than \1/3\ of 1 percent 
        of the balance described in paragraph (1)(B) for the fiscal 
        year.
    (c) Definitions.--In this section:
            (1) Child in poverty.--The term ``child in poverty'' means 
        an individual under age 6 from a family with an income below 
        the poverty line.
            (2) Poverty line.--The term ``poverty line'' means the 
        income official poverty line (as defined by the Office of 
        Management and Budget, and revised annually in accordance with 
        section 673(2) of the Community Services Block Grant Act (42 
        U.S.C. 9902(2))) applicable to a family of the size involved.

SEC. 6. GENERAL INCENTIVE GRANTS.

    (a) Program.--The Secretaries shall establish and carry out an 
incentive grant program.
    (b) Grants.--In carrying out the program, the Secretaries shall 
award grants to eligible States, to enable the States to develop or 
enhance high-quality systems of early care and early education programs 
and activities, designed to improve school preparedness, by increasing 
and making effective use of existing and new delivery systems and funds 
for early care and early education. The Secretaries shall award the 
grants from allotments made under section 5(b)(1)(B).

SEC. 7. LEAD AGENCY AND ADVISORY COUNCIL.

    (a) Lead Agency.--The chief executive officer of a State desiring 
to receive a grant under this Act shall designate an agency (which may 
be an appropriate collaborative agency), or establish a joint 
interagency office, to serve as the lead agency for the State under 
this Act.
    (b) Advisory Council.--
            (1) In general.--The chief executive officer of a State 
        desiring to receive a grant under this Act shall designate or 
        establish a council to serve as the advisory council for the 
        State under this Act.
            (2) Composition.--In designating or establishing the 
        council, the chief executive officer--
                    (A) may designate an existing entity (as of the 
                date of the designation) to serve as the council; and
                    (B) shall include in the council--
                            (i) representatives of agencies responsible 
                        for administering early care and early 
                        education programs in the State;
                            (ii) parents; and
                            (iii) a wide array of persons interested in 
                        and involved with early care and early 
                        education issues in the State, such as 
                        representatives of--
                                    (I) the State educational agency 
                                and local educational agencies;
                                    (II) the State Head Start 
                                Association;
                                    (III) early childhood education 
                                professionals;
                                    (IV) kindergarten teachers and 
                                teachers in grades 1 through 4;
                                    (V) health care professionals;
                                    (VI) child welfare agencies;
                                    (VII) child care resource and 
                                referral agencies;
                                    (VIII) child care providers;
                                    (IX) State Interagency Coordinating 
                                Councils established under section 641 
                                of the Individuals with Disabilities 
                                Education Act (20 U.S.C. 1441);
                                    (X) the State agency with 
                                responsibility for the special 
                                supplemental nutrition program for 
                                women, infants, and children 
                                established by section 17 of the Child 
                                Nutrition Act of 1966 (42 U.S.C. 1786);
                                    (XI) institutions of higher 
                                education;
                                    (XII) other agencies that provide 
                                resources for young children;
                                    (XIII) religious and business 
                                leaders;
                                    (XIV) State legislators and local 
                                officials; and
                                    (XV) other relevant entities in the 
                                State.
            (3) Duties.--The State advisory council shall conduct local 
        needs assessments in order to advise and assist the lead agency 
        and chief executive officer in the development of the State 
        plans and application described in section 8.
    (c) State Plans and Application.--The chief executive officer and 
the lead agency shall, after consultation with the advisory council, 
develop the State plans and application.

SEC. 8. STATE PLANS AND APPLICATION.

    (a) In General.--To be eligible to receive funds under this Act, a 
State shall prepare and submit to the Secretaries an application, for a 
2-year period, at such time, in such manner, and containing such 
information as the Secretaries shall require, including--
            (1) information identifying the agency or joint interagency 
        office that serves as the lead agency for the State;
            (2) a State plan that--
                    (A) identifies barriers in the State to the 
                effective use of Federal, State, and local public 
                funds, and private funds, for early care and early 
                education that are available to the State on the date 
                on which the application is submitted;
                    (B) specifies, for each fiscal year, how the State 
                will use funds made available under this Act, including 
                how the State will make effective use of such funds, 
                and the funds described in subparagraph (A), in order 
                to create an early childhood education system, by 
                developing or enhancing a high-quality system of early 
                care and early education programs and activities, 
                designed to ensure that all children, including 
                children from economically or otherwise disadvantaged 
                families, enter school prepared to learn; and
                    (C) provides information that describes how the 
                State is working to measurably improve the overall 
                school preparedness of children, while taking into 
                consideration the age of the children and the setting 
                in which the early care and early education programs 
                and activities are provided;
            (3) a description of how the State, in order to expand 
        accessibility and continuity of quality early care and early 
        education, will coordinate the early childhood education 
        activities assisted under this Act with--
                    (A) programs carried out under the Child Care and 
                Development Block Grant Act of 1990 (42 U.S.C. 9858 et 
                seq.);
                    (B) programs carried out under the Head Start Act 
                (42 U.S.C. 9831 et seq.), including the Early Head 
                Start programs carried out under section 645A of that 
                Act (42 U.S.C. 9840a);
                    (C)(i) Early Reading First and Even Start programs 
                carried out under subparts 2 and 3 of part B of title I 
                of the Elementary and Secondary Education Act of 1965 
                (20 U.S.C. 6371 et seq., 6381 et seq.);
                    (ii) other preschool programs carried out under 
                title I of that Act (20 U.S.C. 6301 et seq.); and
                    (iii) the Ready-to-Learn Television program carried 
                out under subpart 3 of part D of title II of that Act 
                (20 U.S.C. 6775 et seq.);
                    (D) programs carried out under part C of the 
                Individuals with Disabilities Education Act (20 U.S.C. 
                1431 et seq.);
                    (E) State pre-kindergarten programs; and
                    (F) other early childhood education programs;
            (4)(A) a description of performance goals to be achieved by 
        the State through activities assisted under this Act; and
            (B) the performance outcome measures the State will use to 
        evaluate progress toward achieving such goals;
            (5) a description of how the State will address children 
        with special needs and children from economically or otherwise 
        disadvantaged families through activities in a way that 
        recognizes the role of parents as a child's primary and most 
        important teachers;
            (6) a description of the State's voluntary program 
        guidelines for early care and early education programs, the 
        State's general goals for school preparedness for children 
        entering kindergarten (developed in consultation with the local 
        educational agencies in the State), and a description of 
        suggested activities for parents and caregivers to offer young 
        children that can improve the children's preparedness for 
        school;
            (7) a description of a State workforce development plan 
        that--
                    (A) ensures comprehensive training for early 
                childhood education professionals that is linked to a 
                compensation package; and
                    (B) creates a career ladder that is ultimately tied 
                to higher education;
            (8) a description of how the State will create linkages 
        between formal early care and early education programs, and 
        elementary education programs, to ensure a smooth transition 
        from preschool to elementary school; and
            (9) a description of a State plan--
                    (A) to ensure that institutions of higher 
                education, providers of community-based training that 
                is not provided for course credit, and other qualified 
                providers, in the State that offer programs and 
                training for early childhood education professionals, 
                use curricula that will prepare early childhood 
                education professionals to effectively implement 
                curricula identified as scientifically based and 
                effective to prepare young children to succeed in 
                school; and
                    (B) to promote better access to the programs and 
                training.
    (b) Unified Plan.--The State plan described in subsection (a)(2) 
may be a unified plan that includes the State plan described in section 
658E of the Child Care and Development Block Grant Act of 1990 (42 
U.S.C. 9858c).

SEC. 9. USE OF FUNDS.

    (a) In General.--A State that receives funds under this Act may 
only use the funds to--
            (1) improve the quality of early care and early education 
        programs and activities through training activities, education, 
        and professional development, that relate to scientifically-
        based early childhood teaching strategies, to early childhood 
        competencies, and to appropriate early childhood developmental 
        activities, and through wage incentive programs and recruitment 
        and retention incentives for early childhood professionals;
            (2)(A) conduct State and local needs assessments, including 
        assessments of the needs of disadvantaged communities, and 
        evaluations on the extent to which the State is achieving the 
        performance goals and performance outcome measures described in 
        the State applications submitted under sections 8 and 10; and
            (B) evaluate the effectiveness of programs and services 
        offered in the State to young children;
            (3) provide training and technical assistance to health 
        care providers on conducting child development analyses as part 
        of normal routine physical examinations;
            (4) provide information to parents on age-appropriate 
        developmental activities and resources that will assist in 
        their child's overall development, including language and 
        literacy development;
            (5)(A) conduct a campaign to improve public awareness of 
        early childhood development (including early literacy) and 
        activities that can help children reach social, emotional, and 
        cognitive milestones;
            (B) carry out the campaign through a joint venture between 
        the State and existing for-profit and nonprofit entities in the 
        State (existing as of the date the campaign begins); and
            (C) in carrying out the campaign, ensure broad access to 
        and distribution of information in a form that is easily 
        understood by parents, including ensuring that the 
        information--
                    (i) is accessible through mass media, including 
                public television; and
                    (ii) is distributed in physician's offices, offices 
                of the special supplemental nutrition program for 
                women, infants, and children established by section 17 
                of the Child Nutrition Act of 1966 (42 U.S.C. 1786), 
                libraries, public and private schools, and child care 
                centers;
            (6) support voluntary programs (such as the Parents as 
        Teachers, Reach Out and Read, and Home Instruction Program for 
        Preschool Youngsters programs) that provide training, 
        mentoring, information to parents on child development and age-
        appropriate activities (which may include parent-child learning 
        opportunities), and other resources, that have been shown to 
        improve a child's early literacy, school preparedness, and 
        overall development; and
            (7) support or improve existing (as of the date of receipt 
        of the funds) Federal, State, or local programs and projects 
        (including quality improvement activities authorized under the 
        Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
        9858 et seq.) and activities authorized under the Early 
        Learning Opportunities Act (20 U.S.C. 9401 et seq.), except 
        section 808(b)(6) of that Act (20 U.S.C. 9407(b)(6))) that--
                    (A) are consistent with the State applications 
                submitted under sections 8 and 10 as approved by the 
                Secretaries; and
                    (B) are linked to improving school preparedness as 
                determined by an appropriate performance outcome 
                measure described in section 10(f)(2).
    (b) Limitation on Administrative Costs.--A State that receives 
funds under this Act for a fiscal year may use not more than 5 percent 
of the funds to pay for administrative costs incurred by such State to 
carry out the State's functions and duties under this Act.

SEC. 10. STATE IMPROVEMENT BONUS GRANTS.

    (a) In General.--The Secretaries shall use the funds described in 
section 5(b)(1)(A) to make bonus grants to States to enable States to 
make, and to reward States that have demonstrated, measurable progress 
in achieving the performance outcome measures described in subsection 
(f)(2).
    (b) Development.--For each fiscal year before the year described in 
subsection (c), the Secretaries shall use the funds to make grants 
under subsection (a) to States--
            (1) to develop and establish the performance goals and 
        performance outcome measures described in subsection (f)(2); 
        and
            (2) for State improvement through activities described in 
        section 9.
    (c) Progress on Competencies and Retention.--For the first fiscal 
year for which not less than $500,000,000 is appropriated under section 
19 and that is not earlier than the third full fiscal year after the 
date of enactment of this Act, the Secretaries shall use the funds to 
make bonus grants under subsection (a) to States that the Secretaries 
determine have shown measurable progress in achieving the appropriate 
performance outcome measures described in subsection (f)(2) as 
demonstrated by--
            (1) improved competencies relating to the knowledge and 
        skills of early childhood providers, compared to the previous 
        year; and
            (2) increased retention of competent providers described in 
        paragraph (1), compared to the previous year.
    (d) Progress on School Preparedness.--
            (1) In general.--For each fiscal year after the year 
        described in subsection (c), the Secretaries shall use the 
        funds to make bonus grants under subsection (a) to States that 
        the Secretaries determine have shown measurable progress in 
        achieving the performance outcome measures described in 
        subsection (f)(2)--
                    (A) as demonstrated by the improved competencies 
                and increased retention described in subsection (c); 
                and
                    (B) as demonstrated by increased school 
                preparedness of the kindergartners in the State, 
                compared with the previous year.
            (2) Equal weight.--In determining whether States have shown 
        the measurable progress described in paragraph (1), the 
        Secretaries shall give equal weight to progress demonstrated as 
        described in paragraph (1)(A) and progress demonstrated as 
        described in paragraph (1)(B).
    (e) Amount.--In making a bonus grant to a State under subsection 
(a) for a fiscal year, the Secretaries shall make the grant in an 
amount equal to 20 percent of the total amount of the State's general 
incentive grant under section 6, and the State's bonus grant under 
subsection (a), for that fiscal year.
    (f) Application.--
            (1) In general.--To be eligible to receive a bonus grant 
        under subsection (a), a State shall submit an application to 
        the Secretaries at such time, in such manner, and containing 
        such information as the Secretaries may require.
            (2) Goals and measures.--A State that submits an 
        application under this subsection for a year described in 
        subsection (c) or (d) shall include in the application--
                    (A) a description of performance goals to be 
                achieved by the State through activities assisted under 
                this Act, relating to the improved competencies and 
                increased retention referred to in subsection (c) and 
                the increased school preparedness referred to in 
                subsection (d); and
                    (B) the performance outcome measures the State will 
                use to evaluate progress toward achieving such goals.
    (g) Indicators and Measures.--
            (1) Panel.--
                    (A) In general.--The Board on Children, Youth, and 
                Families of the National Research Council, and the 
                Institute of Medicine, of the National Academy of 
                Sciences shall establish an independent panel of 
                experts to provide guidance and technical assistance to 
                the States in the task of assessing progress in--
                            (i) improving competencies and increasing 
                        retention as described in subsection (c); and
                            (ii) increasing school preparedness of the 
                        kindergartners in the State.
                    (B) Composition.--The panel of experts shall 
                include, to the extent practicable, representatives of 
                the Centers for Disease Control and Prevention, the 
                National Institute of Mental Health, the National 
                Institute of Child Health and Human Development, the 
                National Association for the Education of Young 
                Children, the National Center for Learning 
                Disabilities, the American Academy of Pediatrics, the 
                Office of Educational Research and Improvement of the 
                Department of Education, the General Accounting Office, 
                and other noted experts in the field of early care and 
                early education.
                    (C) Timing.--The Board and the Institute of 
                Medicine shall establish the panel not later than 90 
                days after the date of enactment of this Act.
            (2) Measures.--Not later than the last day of the first 
        full fiscal year after the date of enactment of this Act, the 
        panel described in paragraph (1) shall--
                    (A) identify indicators, measures, and assessments 
                for competencies described in subsection (c)(1); and
                    (B)(i) generate an inventory of science-based 
                indicators of cognitive, language, social, emotional, 
                and physical development, and age-appropriate 
                competencies in early literacy and numeracy; and
                    (ii) identify a selection of valid and reliable 
                measures for those indicators, including measures from 
                scientifically validated assessments, systematic 
                observational measures, and measures from parent and 
                teacher inputs.
            (3) Use of measures.--
                    (A) In general.--In making the demonstration 
                described in subsection (c)(1) or (d)(1)(B) in an 
                application submitted under subsection (f), a State may 
                use any of the measures identified under subparagraph 
                (A) or (B), respectively, of paragraph (2), or may use 
                an alternative evaluation approach identified in the 
                application.
                    (B) Assistance.--The Secretaries shall provide to 
                States that elect to use a measure identified under 
                subparagraph (A) or (B) of paragraph (2), assistance in 
                implementing the measure.
    (h) Results.--Assessment results may be used to make the 
demonstration described in subsection (d)(1)(B) for a State only if--
            (1) the assessment is conducted on a scientifically derived 
        sample of children across the State;
            (2) the assessment is conducted on kindergarten children by 
        certified or licensed teachers; and
            (3) the State certifies to the Secretaries that the 
        assessment tools are--
                    (A) valid and reliable and used only for the 
                purposes of making the demonstration;
                    (B) age appropriate for the population served;
                    (C) based on systematic observational measurements 
                that shall be conducted in the children's natural 
                environments (unless a certified or licensed teacher 
                determines that another environment would be more 
                appropriate) and used in conjunction with information 
                gathered through parent and provider interviews and the 
                children's work; and
                    (D) able to provide information on children's 
                cognitive, language, social, emotional, and physical 
                development.
    (i) Form and Use of Information.--
            (1) Identifying characteristics.--A State (or a local 
        educational agency collecting information for the State under 
        this section) shall aggregate the information the State uses to 
        demonstrate eligibility for a bonus grant under subsection (a). 
        The State may not include in the information data relating to a 
        child's name, address, or other personal identifying 
        characteristics.
            (2) Use of information.--A State may not use the 
        information--
                    (A) to track a child; or
                    (B) to determine whether a child should be retained 
                in kindergarten.
    (j) Allocation of Additional Funds.--Notwithstanding any other 
provision of this Act, from any amounts described in section 5(b)(1)(A) 
and remaining for a fiscal year that is not described in subsection (k) 
after the Secretaries carry out subsection (a), the Secretaries may--
            (1) use the remainder to increase the amount of the bonus 
        grants provided under subsection (a) to those States for that 
        year; or
            (2) reserve the remainder to provide bonus grants under 
        subsection (a) to eligible States for the following year.
    (k) Performance Improvement Demonstration Project.--
            (1) In general.--Notwithstanding any other provision of 
        this Act, for the second fiscal year after the year described 
        in subsection (c), from any amounts described in section 
        5(b)(1)(A) and remaining for that second fiscal year after the 
        Secretaries carry out subsection (a), the Secretaries shall use 
        the remainder to carry out this subsection.
            (2) Demonstration project.--During that year, the 
        Secretaries shall establish a demonstration project to assist 
        States that are not eligible to receive bonus grants under 
        subsection (a) for that year. In carrying out the project, the 
        Secretaries shall make grants to local entities in those States 
        to enable the entities to carry out activities, based on 
        information collected from States with successful State 
        systems, to improve the ability of the States to achieve the 
        performance outcome measures described in the State 
        applications submitted under section 8 and subsection (f).

SEC. 11. ADMINISTRATION.

    The Secretaries shall enter into a memorandum of understanding that 
specifies how the Secretaries will carry out this Act and award grants 
under this Act. Notwithstanding any other provision of law, such 
memorandum of understanding shall include provisions for the 
establishment of a Joint Office of Early Care and Education.

SEC. 12. REPORTS TO SECRETARIES.

    (a) In General.--Each State that receives a grant (including a 
bonus grant) under this Act shall prepare an annual report that 
contains--
            (1) a description of the manner in which the State has used 
        the funds made available through the grant and a report of the 
        expenditures made with the funds; and
            (2)(A) a summary of the State's progress toward providing 
        the activities, and an evaluation of the State's progress 
        toward achieving the performance outcome measures, described in 
        the State's initial State applications submitted under sections 
        8 and 10 for the fiscal year involved; and
            (B) in the case of a State with a modified State 
        application submitted under section 8 or 10--
                    (i) a summary of the State's progress toward 
                providing the activities, and an evaluation of the 
                State's progress toward achieving the performance 
                outcome measures, described in the modified State 
                application for the fiscal year involved; and
                    (ii) the rationale for the modifications involved.
    (b) Contents.--The report shall contain--
            (1) data on the number of early childhood professionals in 
        the State who received training, education, or professional 
        development during the period of the grant and remained in the 
        early care and early education field;
            (2) data on the school preparedness of children in the 
        State;
            (3) a description of the State's progress in overcoming 
        barriers to the effective use of Federal, State, and local 
        public funds, and private funds, for early care and early 
        education; and
            (4) a description of the manner in which the State has 
        addressed children from economically or otherwise disadvantaged 
        families.
    (c) Submission.--The State shall submit the report, at the end of 
each fiscal year, to the Secretaries and the advisory council for the 
State.

SEC. 13. PERFORMANCE IMPROVEMENT PLANS.

    (a) Determination.--At the end of the third full fiscal year after 
the date of enactment of this Act, and of each subsequent fiscal year, 
the Secretaries shall determine whether each State that receives funds 
under this Act made progress during that fiscal year toward achieving 
the performance outcome measures described in the initial State 
applications (or, if appropriate, the modified State applications) 
approved for the State under sections 8 and 10 for the fiscal year 
involved. The Secretaries shall make the determination on the basis of 
the State report described in section 12.
    (b) Plan.--If the Secretaries determine that a State did not make 
progress as described in subsection (a) for a fiscal year, the 
Secretaries shall require the State to submit a performance improvement 
plan that describes the measures the State will take to make that 
progress. To be eligible to receive funds under this Act for the 
following fiscal year, the State shall prepare and submit the plan to 
the Secretaries. To be eligible to receive funds under this Act for a 
subsequent fiscal year, the State shall demonstrate reasonable progress 
in implementing such plan.

SEC. 14. NONCOMPLIANCE WITH STATE PLAN.

    (a) Review.--The Secretaries shall review each report submitted 
under section 12 for a fiscal year to ensure that the funds 
appropriated to carry out this Act for the fiscal year were expended in 
accordance with the provisions of the State plan described in section 
8(a)(2)(B) that are applicable to that fiscal year.
    (b) Determination and Withholding.--If the Secretaries determine 
that the funds were not expended in accordance with the provisions of 
the State plan--
            (1) the Secretaries shall withhold the amount of the funds 
        that were improperly expended, from the State's allotment under 
        section 5(b)(1)(B) for the following fiscal year; and
            (2) the State shall not be eligible for a bonus grant under 
        section 10(a) for the following fiscal year.
    (c) Use of Withheld Funds.--The Secretaries shall use funds 
withheld from 1 or more States for a fiscal year under subsection 
(b)(1) to provide assistance to the remaining States in accordance with 
section 5(b)(1)(B). For purposes of this Act, such assistance made 
available to a State for a fiscal year shall be considered to be a part 
of the allotment for that State under that subsection for that fiscal 
year.

SEC. 15. REPORT TO CONGRESS.

    (a) In General.--The Secretaries shall prepare an annual report 
that--
            (1) describes the progress of each State toward achieving 
        the performance outcome measures described in subparagraph (A) 
        and, if appropriate, subparagraph (B), of section 12(a)(2) for 
        the year covered by the report; and
            (2) compares that progress with the progress of the State 
        toward achieving those measures for the preceding fiscal year.
    (b) Submission.--The Secretaries shall submit the report to the 
appropriate committees of Congress.

SEC. 16. CLEARINGHOUSE.

    (a) In General.--The Secretaries, acting through the appropriate 
officers of the Department of Health and Human Services (including the 
National Institute of Child Health and Human Development and the 
National Institute of Mental Health) and the Department of Education 
shall support (using funds made available under Federal law other than 
this Act) a collaborative research project, through a clearinghouse in 
existence on the date the project begins, to--
            (1) identify, compile, and disseminate information on 
        effective, research-based, early care and early education 
        (including prereading and language) programs, curricula, and 
        teaching strategies that address--
                    (A) cognitive development;
                    (B) language development;
                    (C) social and emotional development;
                    (D) physical and motor development; and
                    (E) emergent literacy and phonemic awareness;
            (2)(A) compile information that describes--
                    (i) the systems of early care and early education 
                programs and activities in States eligible to receive 
                grants under section 10(a); and
                    (ii) the methods that the eligible States have used 
                to establish successful systems described in clause 
                (i); and
            (B) disseminate the information to other States;
            (3)(A) identify State best practices relating to early care 
        and early education, including effective State activities, 
        standards, and guidelines; and
            (B) compile and disseminate information that describes the 
        practices, including the activities, standards, and guidelines; 
        and
            (4)(A) identify and evaluate model tools for conducting 
        observational assessments in kindergarten; and
            (B) compile and disseminate information that describes the 
        tools.
    (b) Dissemination.--The Secretaries shall--
            (1) disseminate information about the existence of the 
        clearinghouse described in subsection (a); and
            (2) ensure wide dissemination, through the Internet, 
        through public television, through public libraries, and by 
        other means, of materials describing the clearinghouse, and the 
        availability of the information disseminated by the 
        clearinghouse.

SEC. 17. SUPPLEMENTATION OF FUNDS AND MAINTENANCE OF EFFORT.

    (a) Supplement, Not Supplant.--Amounts appropriated under this Act 
shall be used to supplement and not supplant other Federal, State, and 
local public funds, expended to provide services for early care and 
early education programs and activities.
    (b) Maintenance of Effort.--The Secretaries shall not award a grant 
under this Act to any State for a fiscal year unless the Secretaries 
first determine that the total expenditures by the State to support 
early care and early education programs and activities for the 
preceding fiscal year are not less than such expenditures for the 
fiscal year in which the date of enactment of this Act occurs.
    (c) Waiver.--The Secretaries may waive the requirements of 
subsection (b) if the Secretaries determine that a waiver would be 
equitable due to a precipitous decline in the financial resources of a 
State that has necessitated across-the-board reductions in State 
services, including early care and early education programs.

SEC. 18. RULES OF CONSTRUCTION.

    (a) In General.--Nothing in this Act shall be construed to permit 
or require a State--
            (1) to impose State child care licensing requirements on 
        any type of early childhood provider, including any such 
        provider who is exempt from State child care licensing 
        requirements on the date of enactment of this Act;
            (2) to require an early childhood provider (including a 
        child care provider, such as a parent, grandparent, family 
        child care provider, or religious provider) in a State to 
        comply with a State voluntary guideline or recommendation for 
        effective early childhood education activities; or
            (3) to require a parent to have a child submit to 
        developmental screening.
    (b) Prohibition on Required Participation.--No State receiving 
funds under this Act may require any child to participate in any 
Federal, State, local, or private early childhood education program.
    (c) Prohibition on Use of Funds for Testing.--No State receiving 
funds under this Act may use the funds--
            (1) to permit testing, as opposed to systematic 
        observational assessment, of a young child; or
            (2) to permit testing or assessment that results in 
        penalties or sanctions being imposed on a young child.

SEC. 19. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to carry 
out this Act $1,000,000,000 for fiscal year 2003 and such sums as may 
be necessary for each of fiscal years 2004 through 2007.
    (b) Availability.--Any sums appropriated under the authorization 
contained in this section shall remain available, without fiscal year 
limitation, until expended.
                                 <all>