[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2758 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2758

Entitled ``The Child Care and Development Block Grant Amendments Act''.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 18, 2002

Mr. Dodd (for himself, Ms. Snowe, Mr. Jeffords, Mr. Reed, Mr. Bingaman, 
 Mrs. Clinton, Mrs. Murray, and Mr. Edwards) introduced the following 
  bill; which was read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
Entitled ``The Child Care and Development Block Grant Amendments Act''.

    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 ``Access to High 
Quality Child Care Act'' or as the ``2002 ACCESS Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                  TITLE I--ACCESS TO HIGH QUALITY CARE

Sec. 101. Goals.
Sec. 102. Authorization of appropriations.
Sec. 103. Lead agency.
Sec. 104. State plan requirements.
Sec. 105. Child care quality improvements.
Sec. 106. Improving parent access to quality child care by improving 
                            rates of reimbursement.
Sec. 107. Administration and enforcement.
Sec. 108. Improving data about families receiving subsidies.
Sec. 109. Child care research and data.
Sec. 110. Activities for infants and toddlers and children in other 
                            special populations.
Sec. 111. Resource and referral services and other activities.
Sec. 112. Funds for Indian tribes.
Sec. 113. Miscellaneous provisions.
Sec. 114. Definitions.
                TITLE II--QUALITY CHILD CARE INITIATIVES

          Subtitle A--Child Care Centers in Federal Facilities

Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. Providing quality child care in Federal facilities.
Sec. 204. Federal child care evaluation.
Sec. 205. Miscellaneous provisions relating to child care provided by 
                            Federal agencies.
         Subtitle B--Technical and Financial Assistance Grants

Sec. 211. Grants.
            Subtitle C--Improving the Availability of Books

Sec. 221. Short title.
Sec. 222. Findings.
Sec. 223. Definitions.
Sec. 224. Grants to State agencies.
Sec. 225. Contracts to child care resource and referral organizations.
Sec. 226. Use of funds.
Sec. 227. Report to Congress.
Sec. 228. Special postage stamps for child literacy.
Sec. 229. Authorization of appropriations.
                  TITLE III--EARLY CARE AND EDUCATION

Sec. 301. Short title.
Sec. 302. Findings.
Sec. 303. Purposes.
Sec. 304. Definitions.
Sec. 305. Allotment formula.
Sec. 306. General incentive grants.
Sec. 307. Lead agency and advisory council.
Sec. 308. State plans and application.
Sec. 309. Use of funds.
Sec. 310. State improvement bonus grants.
Sec. 311. Administration.
Sec. 312. Reports to Secretaries.
Sec. 313. Performance improvement plans.
Sec. 314. Noncompliance with State plan.
Sec. 315. Report to Congress.
Sec. 316. Clearinghouse.
Sec. 317. Supplementation of funds and maintenance of effort.
Sec. 318. Rules of construction.
Sec. 319. Authorization of appropriations.

                  TITLE I--ACCESS TO HIGH QUALITY CARE

SEC. 101. GOALS.

    Section 658A(b) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9801 note) is amended--
            (1) in paragraph (4), by striking ``assistance; and'' and 
        inserting ``assistance, and to other low-income parents;'';
            (2) in paragraph (5)--
                    (A) by inserting ``training,'' after ``safety,''; 
                and
                    (B) by striking the period and inserting ``; and''; 
                and
            (3) by adding at the end the following:
            ``(6) to assist States to provide access to high quality 
        child care that promotes early learning and facilitates school 
        readiness for all children, including children with 
        disabilities or other special needs.''.

SEC. 102. AUTHORIZATION OF APPROPRIATIONS.

    Section 658B of the Child Care and Development Block Grant Act of 
1990 (42 U.S.C. 9858) is amended by striking ``$1,000,000,000'' and all 
that follows and inserting ``$3,100,000,000 for fiscal year 2003 and 
such sums as may be necessary for each of fiscal years 2004 through 
2007.''.

SEC. 103. LEAD AGENCY.

    Section 658D(b) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858b(b)) is amended by striking paragraph (2) and 
inserting the following:
            ``(2) Development of state plan.--
                    ``(A) Parties consulted.--In the development of the 
                State plan described in paragraph (1)(B), the lead 
                agency shall consult with--
                            ``(i) appropriate representatives of units 
                        of general purpose local government;
                            ``(ii) parents and child care providers 
                        (including center-based child care providers, 
                        group home child care providers, and family 
                        child care providers);
                            ``(iii) representatives of State agencies 
                        responsible for children and families, 
                        including agencies with jurisdiction over 
                        education programs, the program carried out 
                        under part C of the Individuals with 
                        Disabilities Education Act (20 U.S.C. 1431 et 
                        seq.), health services, child protective 
                        services, the program of block grants to States 
                        to provide temporary assistance to needy 
                        families under part A of title IV of the Social 
                        Security Act (42 U.S.C. 601 et seq.), licensing 
                        and inspection of child care providers, and 
                        employment and training activities;
                            ``(iv) businesses, community-based 
                        organizations (including faith-based 
                        organizations), and philanthropic 
                        organizations;
                            ``(v) parents of children in special 
                        populations, providers with expertise 
                        concerning care of children in special 
                        populations, and special education and related 
                        services personnel;
                            ``(vi) institutions of higher education and 
                        other entities that provide professional 
                        development for early childhood educators and 
                        child care providers; and
                            ``(vii) other public and private providers 
                        of child and family support services, such as 
                        child care resource and referral organizations, 
                        providers of services through Head Start 
                        programs, family literacy programs, and 
                        institutions of higher education, other 
                        organizations representing child care and other 
                        early childhood education providers as 
                        determined appropriate by the State, and other 
                        individuals with expertise in child development 
                        as determined appropriate by the State.
                    ``(B) Purposes of state plan.--The lead agency 
                shall engage in consultation, as described in 
                subparagraph (A), in order to--
                            ``(i) develop a State plan under section 
                        658E that meets the needs of working parents 
                        and the social, emotional, physical, and 
                        cognitive developmental needs of children;
                            ``(ii) enable the lead agency, and the 
                        organizations and individuals described in 
                        subparagraph (A), to coordinate and utilize 
                        resources for early childhood development and 
                        child care for school-age children in a manner 
                        that provides a continuum of quality services 
                        for children and families;
                            ``(iii) enable the lead agency, 
                        organizations, and individuals to provide for 
                        resources for children with disabilities or 
                        other special needs and their families 
in planning and delivering services for children and families, in order 
to improve access to community-based inclusive child care programs for 
all children, including infants and toddlers, and families;
                            ``(iv) enable the lead agency, 
                        organizations, and individuals to design an 
                        application process for applications submitted 
                        under section 658E that improves parental 
                        access to services provided under this 
                        subchapter by reducing barriers to eligibility 
                        and continuing eligibility through the 
                        application process; and
                            ``(v) promote inclusion of organizations or 
                        individuals that provide child care and related 
                        services for children and families, and 
                        parents, in the design and delivery of such 
                        services.
                    ``(C) Inclusive child care program.--In this 
                paragraph, the term `inclusive child care program' 
                means a child care program--
                            ``(i) that serves children in special 
                        populations, and other children, together in a 
                        setting; and
                            ``(ii) in which not more than 50 percent of 
                        the children enrolled are children in special 
                        populations.''.

SEC. 104. STATE PLAN REQUIREMENTS.

    Section 658E(c) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858c(c)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A)(i)(II), by striking 
                ``658P(2)'' and inserting ``658T(2)'';
                    (B) by striking subparagraph (D) and inserting the 
                following:
                    ``(D) Consumer and child care provider 
                information.--
                            ``(i) Certification.--Certify that the 
                        State will collect and disseminate, through 
                        organizations that provide resource and 
                        referral services and through other means as 
                        determined appropriate by the State, to parents 
                        of eligible children and the general public, 
                        consumer education information that will 
                        promote informed child care choices, including 
                        information about quality child care that meets 
                        the social, emotional, physical, and cognitive 
                        developmental needs of children.
                            ``(ii) Description.--Describe how the State 
                        will--
                                    ``(I) ensure that staff from the 
                                lead agency will coordinate activities 
                                with the staff of the State program 
                                funded under part A of title IV of the 
                                Social Security Act (42 U.S.C. 601 et 
                                seq.) to inform parents who are 
                                applying for, receiving, or ending 
                                assistance under the State program 
                                about eligibility for assistance under 
                                this subchapter and local resource and 
                                referral services; and
                                    ``(II) inform other low-income 
                                parents about such eligibility and 
                                services.
                            ``(iii) Report the manner in which the 
                        information described in clause (i) was 
                        disseminated to parents, and the number of 
                        parents to whom such information was 
                        disseminated, for the 2-year period of the 
                        previous State plan.'';
                    (C) in subparagraph (G), by inserting ``, and that 
                the procedures include unannounced visits for each such 
                child care provider (except that the State may choose 
                to exempt from the procedures requiring such visits, a 
                relative of the child who is a provider described in 
                section 658T(5)(B)) and the facility in which the 
                provider provides child care'' before the period; and
                    (D) by adding at the end the following new 
                subparagraphs:
                    ``(I) Enhancement of parental access.--Describe how 
                the State will improve parental access to eligibility 
                procedures during the process of establishing 
                eligibility in order to obtain or retain assistance 
                under this subchapter, including improving access by 
                simplifying applications for assistance and otherwise 
                simplifying the process by adopting procedures and 
                practices such as--
                            ``(i) posting eligibility forms and 
                        information about needed documentation on State 
                        websites and in other places frequented by 
                        parents with children such as libraries, health 
                        care facilities, schools, and 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);
                            ``(ii) allowing filing of eligibility and 
                        other required information by postal mail, 
                        phone, fax, or electronic mail;
                            ``(iii) minimizing requests for 
                        documentation, and utilizing documents already 
                        on file;
                            ``(iv) providing applications at multiple 
                        sites;
                            ``(v) offering nonconventional hours of 
                        operation at eligibility offices and providing 
                        toll-free telephone lines, including during 
                        evening and weekend hours, to handle 
                        eligibility issues;
                            ``(vi) providing expedited procedures for 
                        changing child care providers;
                            ``(vii) calculating eligibility in a way 
                        that permits the averaging of hours of 
                        employment or participation in a job training 
                        or educational program, or of income, across a 
                        number of months, in order to provide for 
                        continuing eligibility without the necessity 
                        for frequent reporting of small changes in 
                        family circumstances;
                            ``(viii) establishing a coordinated, 
                        seamless eligibility system so that, regardless 
                        of the source of funding for the assistance, 
                        families do not have to file additional 
                        applications and the assistance is provided in 
                        a way that does not disrupt families and 
                        supports continuity of care; and
                            ``(ix) eliminating the need for case 
                        closure and reapplication in instances in which 
                        children remain eligible but their category of 
                        eligibility changes.
                    ``(J) Eligibility redetermination.--
                            ``(i) Redetermination process.--Demonstrate 
                        that for the purposes of redetermination of 
                        eligibility of a child under this subchapter, 
                        and for the reporting of changes as provided 
                        for in clauses (iii) and (iv), the State will 
                        have in place procedures that allow a working 
                        parent access to the redetermination process 
                        and allow for the reporting of changes without 
                        requiring an absence from the workplace, which 
                        procedures may include--
                                    ``(I) the provision of extended 
                                office hours such as office hours 
                                before 8 a.m., after 6 p.m., or on the 
                                weekend; and
                                    ``(II) the use of postal mail or 
                                electronic communications such as 
                                communications by telephone, fax, or 
                                electronic mail, and provision of a 
                                receipt providing confirmation.
                            ``(ii) Minimum period.--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, except as provided in 
                        clauses (iii) and (iv).
                            ``(iii) Child no longer living in the 
                        home.--Demonstrate that the State will ensure 
                        that policies and procedures are in place to 
                        require that a parent report to the lead 
                        agency, during the period prior to 
                        redetermination, if the family no longer needs 
                        assistance under this subchapter for a child 
                        because the child is no longer in the home.
                            ``(iv) Parent no longer engaged in work-
                        related activities.--Demonstrate that--
                                    ``(I) the State will ensure that 
                                policies and procedures are in place to 
                                require that a parent report to the 
                                lead agency, during the period prior to 
                                redetermination, the loss of work or 
                                cessation of attendance of a job 
                                training or educational program for 
                                which the family was receiving 
                                assistance under this subchapter; and
                                    ``(II) the State will not terminate 
                                the assistance based on the loss of 
                                work or cessation of attendance without 
                                continuing the assistance for a 
                                reasonable period of time, of not less 
                                than 1 month, after such loss or 
                                cessation in order for the parent to 
                                engage in a job search and resume work, 
                                or resume attendance of a job training 
                                or educational program, as soon as 
                                possible.
                    ``(K) Training in early learning and childhood 
                development.--Certify that there are in effect within 
                the State training requirements, designed to enable 
                child care providers to promote the social, emotional, 
                physical, and cognitive development of children 
                (including children in special populations), that are 
                applicable to child care providers that provide 
                services for which assistance is made available under 
                this subchapter (except that the State may choose to 
                exempt from the requirements relatives of the children 
                involved who are providers described in section 
                658T(5)(B)).
                    ``(L) Coordination of services.--Describe how the 
                State will--
                            ``(i) coordinate the provision of services 
                        under this subchapter with other Federal, 
                        State, and local child care and early childhood 
                        development programs; and
                            ``(ii) increase coordination between, and 
                        improve the ability of children to make 
                        transitions between--
                                    ``(I) early childhood care, 
                                development, and education programs; 
                                and
                                    ``(II) elementary schools.
                    ``(M) State child care quality goals.--
                            ``(i) Use of funds to improve quality.--
                        Provide an assurance that the State will submit 
                        the report described in section 658M(c)(1), 
                        including the demonstrations described in such 
                        section, to the Secretary at the end of each 
                        fiscal year.
                            ``(ii) Goals.--Describe goals that the 
                        State will use to evaluate the effectiveness of 
                        the activities carried out by the State under 
                        section 658G(a), in order to evaluate the 
                        State's progress in improving the quality of 
                        child care services provided under this 
                        subchapter, including, at a minimum, goals to--
                                    ``(I) improve child care provider 
                                recruitment, payment, and retention 
                                rates;
                                    ``(II) increase the number of child 
                                care providers who receive high quality 
                                preservice and ongoing professional 
                                development (including the number of 
                                such providers who provide informal 
                                care, care for children in special 
                                populations, or care for children in 
                                rural areas);
                                    ``(III) increase the number of 
                                providers who receive training in the 
                                care and development of children with 
                                disabilities or other special needs;
                                    ``(IV) increase the number of 
                                families served by resource and 
                                referral services;
                                    ``(V) increase the number of child 
                                care programs that meet applicable 
                                State and local licensing requirements 
                                or nationally recognized accreditation 
                                standards; and
                                    ``(VI) increase the payment rates, 
                                to maximize parental choice among 
                                quality child care providers.
                            ``(iii) State child care quality 
                        measures.--Describe a quantifiable, objective 
                        measure for each goal.
                            ``(iv) Progress.--Describe the State's 
                        progress in achieving the measures for the 
                        goals.
                    ``(N) Access to care for special populations.--
                            ``(i) Reimbursement for special needs 
                        care.--Certify that the State is taking the 
                        cost of specialized care for infants and 
                        toddlers and children with disabilities or 
                        other special needs into account when 
                        determining reimbursement rates for child care 
                        services for which assistance is provided under 
                        this subchapter.
                            ``(ii) Compliance with disability laws.--
                        Certify that the State will ensure that 
                        eligible child care providers within the State 
                        are informed about the requirements associated 
                        with the Americans with Disabilities Act of 
                        1990 (42 U.S.C. 12101 et seq.), the Individuals 
                        with Disabilities Education Act (20 U.S.C. 1400 
                        et seq.), and section 504 of the Rehabilitation 
                        Act of 1973 (29 U.S.C. 794), and describe how 
                        the State will assist eligible child care 
                        providers by providing training, technical 
                        assistance, and resources in order to assist 
                        the providers in complying with those Acts.
                            ``(iii) Coordination with other applicable 
                        activities.--Certify and describe the State's 
                        efforts to coordinate--
                                    ``(I) training, services, and other 
                                assistance provided under this 
                                subchapter with respect to children 
                                with disabilities or other special 
                                needs; and
                                    ``(II) similar activities supported 
                                under section 619, part C, or part D of 
                                the Individuals with Disabilities 
                                Education Act (20 U.S.C. 1419, 1431 et 
                                seq., or 1451 et seq.), or title V of 
                                the Social Security Act (42 U.S.C. 701 
                                et seq.).
                    ``(O) Information on food programs.--Certify that 
                the State will collect and disseminate, to each child 
                care provider that provides services for which 
                assistance is made available under this subchapter, 
                materials that include--
                            ``(i) an explanation of the benefits, and 
                        the importance to children and providers, of 
                        the child and adult care food program 
                        established under section 17 of the Richard B. 
                        Russell National School Lunch Act (42 U.S.C. 
                        1766); and
                            ``(ii) information concerning how benefits 
                        under the program may be obtained.
                    ``(P) No supplanting of prior spending.--
                            ``(i) Report.--Report the amount of Federal 
                        funds (other than funds made available under 
                        this subchapter), State funds, and local funds 
                        (to the extent such local funds were counted 
                        toward State matching or maintenance of effort 
                        obligations under this subchapter), that were 
                        expended in the State to provide assistance for 
                        child care services and to improve the quality 
                        of child care services provided in the State 
                        during fiscal year 2002.
                            ``(ii) Assurance.--Provide an assurance 
                        that funds made available to the State under 
                        this subchapter will be used to supplement and 
                        not supplant the Federal funds (other than 
                        funds made available under this subchapter), 
                        State funds, and local funds (to the extent 
                        such local funds were counted toward State 
                        matching or maintenance of effort obligations 
                        under this subchapter), that were expended in 
                        the State to provide assistance for such 
                        services and to improve the quality of such 
                        services provided in the State during fiscal 
                        year 2002.'';
            (2) in paragraph (3)--
                    (A) in subparagraph (B)--
                            (i) by striking ``The State'' and inserting 
                        the following:
                            ``(i) In general.--The State'';
                            (ii) in clause (i) (as designated in clause 
                        (i) of this subparagraph)--
                                    (I) by striking ``appropriate to 
                                realize any of the goals specified in 
                                paragraphs (2) through (5) of'' and 
                                inserting ``appropriate (which may 
                                include an activity described in clause 
                                (ii)) to realize any of the goals 
                                specified in''; and
                                    (II) by striking ``with special 
                                needs'' and inserting ``with 
                                disabilities or other special needs''; 
                                and
                            (iii) by adding at the end the following:
                            ``(ii) At-home infant care program.--A 
                        State may use amounts described in clause (i) 
                        to conduct a program of at-home infant care 
                        described in paragraph (6).'';
            (3) in paragraph (4)--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (B) by inserting after subparagraph (A) the 
                following:
                    ``(B) Market rates.--In submitting the State plan, 
                the State shall meet the applicable requirements of 
                paragraphs (1) and (2) of section 658H(b).''; and
            (4) by adding at the end the following:
            ``(6) State option to conduct a program of at-home infant 
        care.--
                    ``(A) Use of funds to conduct program.--The State 
                plan shall specify whether the State elects to use 
                amounts provided under this subchapter to conduct a 
                program of at-home infant care, under which a family 
                with an infant may elect to--
                            ``(i) receive assistance from the State in 
                        the form of a payment to a parent or child care 
                        services consistent with paragraph (2)(A), and 
                        in an amount not exceeding the amount of 
                        assistance that the family would otherwise be 
                        eligible to receive under this subchapter; and
                            ``(ii) use the assistance to allow a parent 
                        to remain at home and care for the child for a 
                        period determined by the State, but not to 
                        exceed 24 months.
                    ``(B) Requirements and provisions.--In the case of 
                a State that elects to use amounts described in 
                subparagraph (A) for a program described in 
                subparagraph (A), the State plan shall describe the 
                requirements and provisions of such program, and shall 
                certify that--
                            ``(i) in providing assistance for child 
                        care services under this subchapter, the State 
                        will not give priority or preference to parents 
                        seeking to receive assistance through the 
                        program over other parents of eligible children 
                        who apply for or are on a waiting list for 
                        assistance for child care services in the 
                        State;
                            ``(ii) the State--
                                    ``(I) will provide, to parents 
                                applying to receive assistance under 
                                this subchapter, information on their 
                                range of options for child care 
                                services for which assistance is 
                                provided under this subchapter, and on 
                                the opportunity to receive the 
                                assistance in the form of a payment or 
                                child care services consistent with 
                                paragraph (2)(A);
                                    ``(II) will ensure that approved 
                                applicants for assistance through the 
                                program are permitted to choose between 
                                receipt of a payment or child care 
                                services consistent with paragraph 
                                (2)(A); and
                                    ``(III) will provide that a family 
                                receiving such assistance may change 
                                the form of the assistance, to receive 
                                child care services consistent with 
                                paragraph (2)(A) at any time during 
                                program participation; and
                            ``(iii) the State will develop or update, 
                        and implement, a plan to improve the quality 
                        and expand the supply of infant care in the 
                        State.''.

SEC. 105. CHILD CARE QUALITY IMPROVEMENTS.

    Section 658G of the Child Care and Development Block Grant Act of 
1990 (42 U.S.C. 9858e) is amended to read as follows:

``SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE SERVICES.

    ``(a) In General.--A State that receives funds to carry out this 
subchapter for a fiscal year shall reserve and use not less than 4 
percent of the funds (and not less than 10 percent of the funds after 
the date specified in subsection (b)) for activities designed to 
improve the quality of child care services, consisting of--
            ``(1) the recruitment, education, and retention of child 
        care providers, including family child care providers and child 
        care providers in rural areas, through compensation enhancement 
        programs (such as the Teacher Education and Compensation Helps 
        Early Childhood Project, the Child Care WAGE$ Project, and the 
        Compensation and Recognition Enhances Stability programs) that 
        reward and support participation in professional development 
        and education, including the attainment of credentials and 
        degrees;
            ``(2) initiatives to improve the quality and availability 
        of child care for children in special populations, including 
        special populations in rural areas, which may include workforce 
        development initiatives that provide specialized training or 
        technical assistance for the providers, or initiatives that 
        provide higher reimbursement rates for child care providers 
        that provide child care services for those children, provide 
        (where appropriate) for consultations with licensed 
        professionals for the providers, or promote efforts to assist 
        the providers in complying with the Americans with Disabilities 
        Act of 1990 (42 U.S.C. 12101 et seq.), the Individuals with 
        Disabilities Education Act (20 U.S.C. 1400 et seq.), and 
        section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794);
            ``(3) support for a coordinated statewide system of local 
        resource and referral services that--
                    ``(A) provides information and support concerning 
                child care to families and child care providers;
                    ``(B) collects data on the availability of and 
                demand for child care services within the political 
                subdivisions of the State;
                    ``(C) connects the business community and other 
                organizations to public-private partnerships for child 
                care;
                    ``(D) increases the availability of and improves 
                the quality of child care services within the State;
                    ``(E) provides training and support for family 
                child care providers, including networks of family 
                child care providers (such as family child care 
                providers in rural areas);
                    ``(F) provides training and technical assistance 
                for child care providers who serve children with 
                disabilities or other special needs and child care 
                providers in rural areas;
                    ``(G) supports at-home child care providers; and
                    ``(H) promotes literacy through the provision of 
                technical assistance, training about developmentally 
                appropriate reading activities, and books to child care 
                programs and families, to make books accessible to 
                children at an early age;
            ``(4)(A) initiatives that--
                    ``(i) enhance the skills of the child care 
                workforce by providing professional development and 
                technical assistance concerning the social, emotional, 
                physical, and cognitive development of children, and 
                other critical areas such as health, safety, and youth 
                development, including training opportunities for child 
                care providers in informal care settings and ongoing 
                professional development opportunities; and
                    ``(ii) are carried out by community organizations, 
                institutions of higher education, child care resource 
                and referral organizations, or other appropriate 
                entities; and
            ``(B)(i) activities that improve the training and support 
        for family child care providers, including family child care 
        providers in rural areas, including providing access to 
        resource lending libraries, the child and adult care food 
        program described in section 17 of the Richard B. Russell 
        National School Lunch Act (42 U.S.C. 1766), and in-home 
        training and professional development; and
            ``(ii) projects that provide opportunities for career 
        counseling, director training, and leadership development for 
        the child care workforce;
            ``(5)(A) the provision of grants or loans to child care 
        providers to assist the providers in meeting applicable State 
        and local requirements relating to child care licensing or 
        regulation and recognized accreditation standards; and
            ``(B) projects that improve the ability of State or local 
        government, as applicable, to monitor compliance with, and to 
        enforce, State and local licensing, regulatory, and 
        registration requirements applicable to child care providers;
            ``(6) community projects that--
                    ``(A) establish a single point of entry system for 
                child care, based on a military model that--
                            ``(i) establishes links with child care 
                        centers, family child care homes, providers of 
                        after-school programs, and other child care 
                        providers; and
                            ``(ii) provides parents with a single 
                        location to find licensed, regulated, or 
                        registered child care in the community;
                    ``(B) establish a community-wide training and 
                professional development program that is linked to 
                compensation and recognition for child care providers, 
                including family child care providers, whose services 
                are available through the system;
                    ``(C) provide financial incentives and other 
                support for child care providers described in 
                subparagraph (B) to achieve accreditation by a national 
                organization; and
                    ``(D) provide information to parents on the cost 
                and quality of the various child care providers 
                described in subparagraph (B);
            ``(7) activities described in section 309 of the Early Care 
        and Education Act;
            ``(8) activities to improve the quality of child care in 
        rural areas; or
            ``(9) other activities that the State determines 
        appropriate to improve the quality of child care services, 
        including the provision of emergency child care.
    ``(b) Increased Reservation.--The requirement to reserve and use 
not less than 10 percent of the funds under subsection (a) takes effect 
on October 1 of the first fiscal year for which the amount made 
available under section 418 of the Social Security Act (42 U.S.C. 618) 
exceeds 115 percent of the amount made available under that section for 
fiscal year 2002.''.

SEC. 106. IMPROVING PARENT ACCESS TO QUALITY CHILD CARE BY IMPROVING 
              RATES OF REIMBURSEMENT.

    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. IMPROVING PARENT ACCESS TO QUALITY CHILD CARE BY IMPROVING 
              RATES OF REIMBURSEMENT.

    ``(a) In General.--A State that receives funds to carry out this 
subchapter for a fiscal year shall reserve and use not less than 5 
percent of the funds for activities described in this section.
    ``(b) Eligibility.--
            ``(1) State plan requirement.--To be eligible to receive 
        funds to carry out this subchapter, a State shall submit a 
        State plan under section 658E that--
                    ``(A) demonstrates that the State has conducted a 
                statistically valid survey of the market rates for 
                child care services in the State within the 2 years 
                preceding the date of the submission of the 
                application;
                    ``(B) details the methodology of the survey 
                conducted pursuant to subparagraph (A);
                    ``(C) contains the survey and the results of the 
                survey;
                    ``(D) describes the State's plan to increase 
                payment rates from the initial baseline determined 
                under subparagraph (B);
                    ``(E) describes how the State will increase payment 
                rates in accordance with the survey results; and
                    ``(F) describes the State's plan to assure that the 
                State will make the payments on a timely basis and 
                follow the usual and customary market practices with 
                regard to payment for child absentee days.
            ``(2) Continuing eligibility requirement.--
                    ``(A) In general.--In submitting a State plan under 
                section 658E--
                            ``(i) for fiscal year 2004 or a subsequent 
                        fiscal year, each State shall demonstrate that 
                        the State has made progress in increasing 
                        payment rates for child care providers under 
                        this subchapter to rates that reflect the 
                        market rates determined under the survey 
                        described in paragraph (1)(A), including the 
                        market rates for various types of child care 
                        providers and market rates for child care of 
                        children at various ages; and
                            ``(ii) for fiscal year 2006 or a subsequent 
                        fiscal year, each State shall demonstrate that, 
                        not later than September 30, 2005, the State 
                        increased the payment rate for child care 
                        providers under this subchapter to a rate at 
                        not less than the 80th percentile of the market 
                        rate determined under the survey described in 
                        paragraph (1)(A).
                    ``(B) Waiver.--A State may apply to the Secretary 
                for a 1-year waiver of the requirements of subparagraph 
                (A)(ii). The Secretary may, in the discretion of the 
                Secretary, grant the waiver and require the State to 
                demonstrate, not later than September 30, 2006, that 
                the State increased the payment rate in accordance with 
                subparagraph (A)(ii).
    ``(c) Use of Funds.--
            ``(1) Priority use.--An eligible State that receives funds 
        under this subchapter to carry out this section shall use the 
        funds to increase the payment rate for child care providers 
        under this subchapter until the rate is not less than the 85th 
        percentile of the market rate determined under the survey 
        described in subsection (b)(1)(A).
            ``(2) Allowable use.--
                    ``(A) In general.--An eligible State that 
                demonstrates to the Secretary that the State has 
                achieved a payment rate for such providers at not less 
                than the 85th percentile of that market rate may use 
                funds described in paragraph (1)--
                            ``(i) to provide an increased payment rate 
                        for such providers, which may exceed the 100th 
                        percentile of that market rate, to reflect the 
                        cost associated with improving the quality of 
                        child care; or
                            ``(ii) to provide tiered reimbursement to 
                        child care providers, as described in 
                        subparagraph (B).
                    ``(B) Tiered reimbursement.--Such tiered 
                reimbursement shall consist of a regular payment plus 
                an additional payment for child care that is in limited 
                supply, such as care of infants, care during 
                nontraditional hours, care for children with 
                disabilities or other special needs, care for children 
                in low-income or rural communities, and care provided 
                by accredited child care providers.
            ``(3) Supplement not supplant.--Amounts made available to a 
        State under this subchapter to carry out this section shall be 
        used to supplement and not supplant other Federal, State, or 
        local funds made available to the State under this subchapter 
        or any other provision of law.
            ``(4) Limitation.--No State may establish eligibility 
        standards for children that are more restrictive than the 
        standards in effect on the date of enactment of the Access to 
        High Quality Child Care Act, or increase the copayments by 
        families required as part of cost sharing above the level of 
        such copayments on such date of enactment, to achieve the 
        higher payment rates described in subsection (b)(2) or this 
        subsection.
    ``(d) Evaluations and Reports.--
            ``(1) State evaluations.--Each State described in 
        subsection (c)(1) 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 described in subsection (b) as a baseline for 
        determining the progress of each eligible State in maintaining 
        increased payment rates.
    ``(e) Payment Rate.--In this section, the term `payment rate' means 
the rate of reimbursement to providers for subsidized child care.
    ``(f) Effective Date.--This section takes effect on October 1 of 
the first fiscal year for which the amount made available under section 
418 of the Social Security Act (42 U.S.C. 618) exceeds 105 percent of 
the amount made available under that section for fiscal year 2002.''.

SEC. 107. ADMINISTRATION AND ENFORCEMENT.

    Section 658I of the Child Care and Development Block Grant Act of 
1990 (42 U.S.C. 9858g) is amended by adding at the end the following:
    ``(c) Compliance With Quality Requirements of State Plan.--
            ``(1) Annual report.--
                    ``(A) Use of funds for quality activities.--Each 
                State that receives funds to carry out this subchapter 
                for a fiscal year shall, not later than 6 months after 
                the end of that fiscal year, submit an annual report to 
                the Secretary in which--
                            ``(i) the State demonstrates the manner in 
                        which the State complied with section 658G 
                        during the year, and describes how the State 
                        used funds made available to carry out this 
                        subchapter to comply with section 658G during 
                        the year;
                            ``(ii) the State demonstrates that a 
                        portion of such funds was used to carry out the 
                        activities described in paragraphs (1), (2), 
                        and (3) of section 658G(a) during the year, and 
                        describes the specific activities carried out 
                        with the funds, and the amount of the funds 
                        that the State allocated to each activity, 
                        during the year; and
                            ``(iii) the State describes the specific 
                        activities carried out under section 658I, and 
                        the amount of funds that the State allocated to 
                        each activity, during the year.
                    ``(B) Progress in achieving state child care 
                quality goals and measures.--The State shall include in 
                the report--
                            ``(i) a description of the goals and 
                        measures described in the State plan under 
                        section 658E(c)(2)(M); and
                            ``(ii) evidence demonstrating the extent to 
                        which the State made progress in achieving the 
                        measures for the goals during the fiscal year 
                        including, at a minimum, evidence demonstrating 
                        measurable improvement toward achieving the 
                        measures for the goals described in section 
                        658E(c)(2)(M)(ii).
            ``(2) Improvement plan.--If the Secretary determines that a 
        State failed to make progress as described in paragraph 
        (1)(B)(ii) for a fiscal year, the Secretary shall require the 
        State to submit an improvement plan that describes the measures 
        the State will take to make that progress. The Secretary shall 
        require the State to comply with the improvement plan by a date 
        specified by the Secretary but not later than 1 year after the 
        date of the determination.''.

SEC. 108. IMPROVING DATA ABOUT FAMILIES RECEIVING SUBSIDIES.

    (a) Collection of Information.--Section 658K(a)(1) of the Child 
Care and Development Block Grant Act of 1990 (42 U.S.C. 9858i(a)(1)) is 
amended--
            (1) in subparagraph (B)--
                    (A) by striking clause (v) and inserting the 
                following:
                            ``(v) whether the family has income from--
                                    ``(I) employment, including self-
                                employment; or
                                    ``(II) assistance under the program 
                                of block grants to States to provide 
                                temporary assistance to needy families 
                                under part A of title IV of the Social 
                                Security Act (42 U.S.C. 601 et seq.) or 
                                a State program for which State 
                                spending is counted toward the 
                                maintenance of effort requirement under 
                                section 409(a)(7) of the Social 
                                Security Act (42 U.S.C. 609(a)(7));'';
                    (B) by striking clause (vi) and inserting the 
                following:
                            ``(vi) the size of the family;'';
                    (C) by striking clause (ix) and inserting the 
                following:
                            ``(ix) the cost of child care for such 
                        family, separately stating the amount of the 
                        State's subsidy payment, and the amount of the 
                        family's copayment, toward that cost;''; and
                    (D) by inserting after clause (x) the following:
                            ``(xi) for a family in which a parent 
                        demonstrates eligibility for a subsidy under 
                        this subchapter on the basis of employment, 
                        whether the usual hours of work for the parents 
                        in the family--
                                    ``(I) occur between 8 a.m. and 6 
                                p.m. on weekdays;
                                    ``(II) occur after 6 p.m. on 
                                weekdays, or on weekends; or
                                    ``(III) vary substantially over the 
                                course of a month; and
                            ``(xii) whether a child in the family who 
                        receives child care through a subsidy under 
                        this subchapter is a child with a disability or 
                        other special needs;''; and
            (2) in subparagraph (D)(i), by adding at the end the 
        following: ``The Secretary may designate core data elements and 
        require that a State collect information under subparagraph (B) 
        on those elements for all families described in subparagraph 
        (B).''.
    (b) Elimination of Requirement for State Annual Reports.--Section 
658K(a) of the Child Care and Development Block Grant Act of 1990 (42 
U.S.C. 9858i(a)) is amended by striking paragraph (2).
    (c) Case Closure Codes.--Section 658K(a) of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858i(a)), as amended by 
subsection (b), is further amended by adding at the end the following:
            ``(2) Improving understanding of case closures.--The 
        Secretary, after consultation with representatives of States, 
        researchers, and other interested persons, shall develop a 
        uniform set of case closure codes for specifying the reasons 
        for which child care assistance under this subchapter is 
        terminated. The Secretary shall require that States submit 
        information describing (for reporting quarters beginning not 
        later than the reporting quarter beginning on October 1, 2005) 
        the reasons for case closures under this subchapter, using the 
        uniform codes, with the information required to be submitted 
        under paragraph (1).''.
    (d) Consolidated Reporting.--Section 658K(a) of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858i(a)), as amended by 
subsection (c), is further amended by adding at the end the following:
            ``(3) Addendum to quarterly reports.--
                    ``(A) Information collection.--
                            ``(i) In general.--The State shall collect 
                        information on--
                                    ``(I) the number of families and 
                                children receiving a subsidy under this 
                                subchapter;
                                    ``(II) the number of child care 
                                providers who received payments under 
                                this subchapter, and shall separately 
                                identify that number for each type of 
                                provider specified in section 658T(5); 
                                and
                                    ``(III) the number of such payments 
                                made by the State through vouchers, 
                                under contracts, or through payments to 
                                parents, and shall separately identify 
                                those numbers by the type of child care 
                                services involved.
                            ``(ii) Timing.--The State shall collect the 
                        information described in clause (i)(I) on a 
                        monthly basis. The Secretary may elect to 
                        require that the State collect the information 
                        described in subclauses (II) and (III) of 
                        clause (i) less frequently than monthly, but 
                        not less frequently than annually.
                    ``(B) Reporting.--The State shall submit the 
                information described in subparagraph (A)(i)(I) to the 
                Secretary on a quarterly basis, in an addendum to a 
                report required under paragraph (1). The State shall 
                submit the information required in subclauses (II) and 
                (III) of subparagraph (A)(i) to the Secretary on an 
                annual basis, in an addendum to a report required under 
                paragraph (1).
                    ``(C) Public access.--Not later than 30 days after 
                submitting a report under subparagraph (B), the State 
                shall post the information contained in such report on 
                a State website accessible to the public.''.
    (e) Report by Secretary.--Section 658K of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858i) is amended by 
adding at the end the following:
    ``(c) Report by Secretary.--
            ``(1) Contents.--Not later than April 1, 2003, and annually 
        thereafter, the Secretary shall prepare and submit to the 
        Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Health, Education, Labor, 
        and Pensions of the Senate a report that contains--
                    ``(A) a summary and analysis of the data and 
                information provided to the Secretary in the State 
                reports submitted under subsection (a);
                    ``(B) a summary of program information provided in 
                the most recent State plans (including amendments to 
                State plans) submitted under section 658E;
                    ``(C) an assessment of, and (in appropriate cases) 
                recommendations to Congress concerning, efforts that 
                should be undertaken to improve access to quality, 
                affordable child care services in the United States; 
                and
                    ``(D) a description of the extent to which States 
                have repeated, in an accurate and timely manner, the 
                data required to be reported under this subchapter, 
                information identifying any barriers to such accurate 
                and timely reporting, and a description of the 
                Secretary's plans and activities to provide technical 
                assistance and take other action to ensure such 
                accurate and timely reporting.
            ``(2) Public access.--Not later than 30 days after 
        submitting a report under paragraph (1), the Secretary shall 
        post the information contained in the report on an appropriate 
        child care website that is accessible to the public.''.
    (f) Section Heading.--The section heading for section 658K of the 
Child Care and Development Block Grant Act of 1990 (20 U.S.C. 9858i) is 
amended to read as follows:

``SEC. 658K. REPORTS AND AUDITS.

    (g) Effective Date.--The amendments made by subsections (a), (b), 
and (d) shall apply to reports for fiscal year 2004 and subsequent 
fiscal years.

SEC. 109. CHILD CARE RESEARCH AND DATA.

    Section 658L of the Child Care and Development Block Grant Act of 
1990 (42 U.S.C. 9858j) is amended to read as follows:

``SEC. 658L. CHILD CARE RESEARCH AND DATA.

    ``(a) Data System.--
            ``(1) In general.--The Secretary shall provide for the 
        establishment of a national child care data system and make 
        arrangements with appropriate entities to collect and analyze 
        data on the availability of, demand for, and quality of early 
        care and early education programs and before- and after-school 
        programs for the system. The system shall utilize, to the 
        extent practicable, the national child care data system 
        available through child care resource and referral 
        organizations at the national, State, and local levels.
            ``(2) Data.--The data collected through the system shall be 
        provided in a way that responds in a timely manner to the needs 
        of State and local officials, the Secretary, and Congress, and 
        shall, to the extent practicable, include national, State, and 
        local data on--
                    ``(A) the number and capacity of legally operating 
                family child care providers;
                    ``(B) the number and capacity of licensed group 
                programs, such as center and part-day enrichment 
                programs;
                    ``(C) the number and capacity of child care 
                programs and providers that provide care to infants and 
                toddlers;
                    ``(D) the number of child care programs and 
                providers that are providing or have provided within 
                the previous 6 months child care for children with 
                disabilities or other special needs, and the number of 
                such children who are receiving such child care or 
                received such child care within the previous 6 months;
                    ``(E) the number and capacity of child care 
                programs and providers that provide child care during 
                nontraditional hours;
                    ``(F) the number and capacity of employer-sponsored 
                centers;
                    ``(G) the education, training, and credentials of 
                child care providers, by setting;
                    ``(H) the turnover rates for child care providers, 
                by setting;
                    ``(I) the average (including the median) salaries 
                and benefits of caregivers in programs described in 
                subparagraph (A), by setting and by position (such as 
                lead teacher, assistant teacher, or aide);
                    ``(J) the number and capacity of accredited child 
                care centers;
                    ``(K) the number and capacity of accredited family 
                child care homes;
                    ``(L) the type of child care families are 
                requesting;
                    ``(M) the number of children on a waiting list for 
                a program described in paragraph (1), by community; and
                    ``(N) other data indicative of the availability of, 
                demand for, and quality of child care throughout the 
                United States, particularly for low-income families.
            ``(3) Census data.--The Secretary shall collaborate with 
        the Director of the Bureau of the Census to obtain relevant 
        data through the American Community Survey or other surveys 
        that describes the employment trends of families, child care 
        choices, and other demographic information as appropriate.
            ``(4) Annual report.--Using data from the system described 
        in subparagraph (A), the Secretary shall prepare and submit to 
        Congress by June 1, 2004, and annually thereafter, reports, by 
        State, on all of the measures and factors specified in 
        paragraph (2). The reports shall also describe trends relating 
        to the measures and factors over time.
            ``(5) Training and technical assistance.--In providing for 
        the system, the Secretary shall provide training and technical 
        assistance to appropriate entities to assist the entities in 
        reporting, collecting, and analyzing useful data for the 
        system.
            ``(6) Hardware, software, training, and technical 
        assistance.--For fiscal year 2003, the Secretary shall use a 
        portion of the funds reserved under subsection (c) to obtain 
        hardware, software, training, and technical support, for the 
        system.
    ``(b) Studies of Child Care Quality and Subsidy Use.--
            ``(1) In general.--The Secretary shall provide for 
        nationally representative studies of child care that--
                    ``(A) describe the child care choices made by--
                            ``(i) parents of eligible children who use 
                        the system of subsidies provided under this 
                        subchapter; and
                            ``(ii)(I) parents of eligible children who 
                        used but stopped using the subsidy system; and
                            ``(II) parents of eligible children who 
                        have not used the subsidy system;
                    ``(B) investigate how the child care choices of the 
                parents described in subparagraph (A)(ii) are impacted 
                by their lack of a subsidy;
                    ``(C) describe the quality of child care received 
                by children of parents described in subparagraph (A)(i) 
                as compared to the quality received by children of 
                parents described in subparagraph (A)(ii);
                    ``(D) analyze the quality of child care in the 
                United States, by setting, including center-based child 
                care, family child care, infant and toddler care, care 
                through school-age child care programs, care during 
                nontraditional hours, care for children with 
                disabilities and other special needs, and care for 
                infants and toddlers;
                    ``(E) determine the number of child care programs 
                and providers that provide care to children with 
                disabilities and other special needs; and
                    ``(F) describe the quality of child care available 
                at payment rates above the 85th percentile of the 
                applicable market rates, and analyze how, if at all, 
                child care available at payment rates above the 85th 
                percentile of applicable market rates differs from 
                child care available at payment rates that are at or 
                below the 85th percentile of applicable market rates, 
                on measures relating to child care quality, including 
                measures of provider accreditation, provider education 
                and training, staff turnover, and parent satisfaction.
            ``(2) Report.--By September 30, 2006, the Secretary shall 
        submit to Congress a report that contains the findings 
        resulting from the studies and shall post the findings on a 
        website of the Department of Health and Human Services.
    ``(c) Reservation.--Of the funds appropriated to carry out this 
subchapter for a fiscal year, the Secretary shall reserve not more than 
1 percent to carry out this section and section 658K.''.

SEC. 110. ACTIVITIES FOR INFANTS AND TODDLERS AND CHILDREN IN OTHER 
              SPECIAL POPULATIONS.

    The Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
9858 et seq.) is amended--
            (1)(A) by redesignating section 658P as section 658T; and
            (B) by inserting section 658T (as so redesignated) after 
        section 658S;
            (2)(A) by redesignating section 658J as section 658P; and
            (B) by inserting section 658P (as so redesignated) after 
        section 658O;
            (3)(A) in section 658M--
                    (i) by striking the section heading; and
                    (ii) by redesignating subsections (a) and (b) as 
                subsections (c) and (d), respectively; and
            (B) by moving subsections (c) and (d) (as so redesignated) 
        to the end of section 658F;
            (4)(A) by redesignating section 658I as section 658M; and
            (B) by inserting section 658M after section 658L; and
            (5) by inserting after section 658H (as added by section 
        106) the following:

``SEC. 658I. ACTIVITIES FOR INFANTS AND TODDLERS.

    ``(a) In General.--A State that receives funds to carry out this 
subchapter for a fiscal year shall reserve and use for that fiscal 
year--
            ``(1) not less than the State young child amount for 
        activities described in subsection (b); and
            ``(2) not less than the State covered child amount for 
        activities described in subsection (c).
    ``(b) Infant and Toddler Activities.--The State shall use the funds 
reserved under subsection (a)(1) to carry out activities that improve 
and expand child care, including emergency child care, for infants and 
toddlers, which may include--
            ``(1) developing and implementing a health and safety 
        licensing requirements plan for providers of child care for 
        infants and toddlers;
            ``(2) developing specialized training for such providers 
        that emphasizes the unique developmental needs of infants and 
        toddlers, including infants and toddlers who are children with 
        disabilities or other special needs;
            ``(3) creating a statewide system of specialists on infants 
        and toddlers and children with disabilities and other special 
        needs, to provide training and consultations for such providers 
        who are--
                    ``(A) center-based child care providers;
                    ``(B) family child care providers;
                    ``(C) group home child care providers; or
                    ``(D) relatives of the infants and toddlers who are 
                providers described in section 658T(5)(B); or
            ``(4) establishing local networks of support for providers 
        described in paragraph (1) who are family child care providers.
    ``(c) Infant and Toddler and Other Activities.--
            ``(1) In general.--The State shall use the funds reserved 
        under subsection (a)(2) for activities to improve the 
        availability and quality of child care for--
                    ``(A) infants and toddlers;
                    ``(B) children with disabilities or other special 
                needs; or
                    ``(C) children who need child care during 
                nontraditional hours.
            ``(2) Activities.--The activities referred to in paragraph 
        (1) may include activities described in subsection (b), and may 
        include improving reimbursement rates for providers of child 
        care described in paragraph (1).
    ``(d) Definitions.--In this section:
            ``(1) State covered child amount.--The term `State covered 
        child amount', used with respect to a fiscal year, means the 
        product of--
                    ``(A) the State percentage for that fiscal year; 
                and
                    ``(B)(i) for fiscal year 2003, $100,000,000;
                    ``(ii) for fiscal year 2004, $125,000,000;
                    ``(iii) for fiscal year 2005, $150,000,000;
                    ``(iv) for fiscal year 2006, $175,000,000; and
                    ``(v) for fiscal year 2007, $200,000,000.
            ``(2) State percentage.--The term `State percentage', used 
        with respect to a fiscal year, means the percentage received by 
        the State of the funds allotted to States under section 658O 
        for that fiscal year.
            ``(3) State young child amount.--The term `State young 
        child amount', used with respect to a fiscal year, means the 
        product of--
                    ``(A) the State percentage for that fiscal year; 
                and
                    ``(B) $100,000,000.''.

SEC. 111. RESOURCE AND REFERRAL SERVICES AND OTHER ACTIVITIES.

    The Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
9858 et seq.) is amended by inserting after section 658I (as added by 
section 110) the following:

``SEC. 658J. RESOURCE AND REFERRAL SERVICES AND OTHER ACTIVITIES.

    ``(a) Reservation.--Of the funds appropriated to carry out this 
subchapter for a fiscal year, the Secretary shall reserve--
            ``(1) $18,120,000 to carry out subsection (b); and
            ``(2) $1,000,000 to carry out subsection (c).
    ``(b) Resource and Referral Services and School-Age Child Care 
Activities.--
            ``(1) Grants.--The Secretary shall award grants to States 
        from allotments made under paragraph (2) for resource and 
        referral services and school-age child care activities.
            ``(2) Allotments.--The Secretary shall allot to each State, 
        for a fiscal year, an amount equal to the State percentage of 
        the funds reserved under subsection (a)(1) for that fiscal 
        year.
            ``(3) Definition.--In this subsection, the term `State 
        percentage', used with respect to a fiscal year, means the 
        percentage received by the State of the funds allotted to 
        States under section 658O for that fiscal year.
    ``(c) National Child Care Aware Toll-Free Hotline.--The Secretary 
shall make a grant to the National Association of Child Care Resource 
and Referral Agencies for the operation of the national child care 
aware toll-free hotline, to assist families in accessing local 
information on child care options.''.

SEC. 112. FUNDS FOR INDIAN TRIBES.

    (a) Increase in Reservation.--Section 658O(a)(2) of the Child Care 
and Development Block Grant Act of 1990 (42 U.S.C. 9858m(a)(2)) is 
amended by striking ``1 percent, and not more than 2 percent,'' and 
inserting ``2 percent''.
    (b) Treatment of Reservation.--Section 6580(b)(1) of the Child Care 
and Development Block Grant Act of 1990 (42 U.S.C. 9858m(b)(1)) is 
amended in the matter preceding subparagraph (A), by striking 
``subsection (a)'' and inserting ``subsection (a) or section 658J or 
658L''.
    (c) Payments for the Benefit of Indian Children.--
            (1) Child care services requirements.--Section 658O(c)(2) 
        of the Child Care and Development Block Grant Act of 1990 (42 
        U.S.C. 9858m(c)(2)) is amended by adding at the end the 
        following:
                    ``(D) Child care services requirements.--The 
                applicant will--
                            ``(i) establish requirements applicable to 
                        child care services (including requirements 
                        designed to protect the health and safety of 
                        children), which shall--
                                    ``(I) be stated in the application; 
                                and
                                    ``(II) notwithstanding any other 
                                provision of law, including 
                                subparagraphs (E), (F), and (G) of 
                                section 658E(c)(2), be the child care 
                                services requirements applicable to 
                                child care providers that receive funds 
                                from the applicant to provide services 
                                under this subchapter; and
                            ``(ii) submit such reports to the Secretary 
                        concerning compliance with the requirements as 
                        the Secretary may require.''.
            (2) Negotiated rulemaking.--Section 658O(c) of the Child 
        Care and Development Block Grant Act of 1990 (42 U.S.C. 
        9858m(c)) is amended--
                    (A) by redesignating paragraphs (4), (5), and (6) 
                as paragraphs (5), (6), and (7), respectively; and
                    (B) by inserting after paragraph (3) the following:
            ``(4) Negotiated rulemaking.--In determining the amount of 
        the base amount provided to Indian tribes and tribal 
        organizations under this subsection, the Secretary shall 
        conduct a negotiated rulemaking. The Secretary shall include in 
        the negotiated rulemaking committee representatives of the 
        Indian tribes and tribal organizations that the Secretary 
determines to be eligible to receive grants or contracts under this 
subsection. The Secretary shall conduct the negotiated rulemaking in 
accordance with subchapter III of chapter 5 of title 5, United States 
Code, as in effect on November 28, 1996.''.
            (3) Construction or renovation.--Paragraph (7)(C) of 
        section 658O(c) of the Child Care and Development Block Grant 
        Act of 1990 (as redesignated by paragraph (2)(A)) is amended--
                    (A) by striking ``The'' and inserting the 
                following:
                            ``(i) In general.--Except as provided in 
                        clause (ii), the''; and
                    (B) by adding at the end the following:
                            ``(ii) Temporary decrease.--The Secretary 
                        may permit an Indian tribe or tribal 
                        organization to use amounts provided under this 
                        subsection for construction or renovation even 
                        if such use will result in a temporary decrease 
                        described in clause (i), if--
                                    ``(I) the Secretary determines that 
                                the construction or renovation will 
                                enable the tribe or organization to 
                                increase, in fiscal years subsequent to 
                                the year for which the determination 
                                under subparagraph (B) is made,the 
                                level of child care services provided 
                                by the tribe or organization as 
compared to the level of such services provided by the tribe or 
organization in the fiscal year for which the determination is made; 
and
                                    ``(II) the tribe or organization 
                                submits to the Secretary, and obtains 
                                approval of, a multi-year plan for the 
                                construction or renovation.''.
    (d) Conforming Amendments.--
            (1) Section 658E(c)(2)(E) of the Child Care and Development 
        Block Grant Act of 1990 (42 U.S.C. 9858c(c)(2)(E) is amended--
                    (A) by striking the following:
                    ``(E) Compliance with state licensing 
                requirements.--
                            ``(i) In general.--Certify'' and inserting 
                        the following:
                    ``(E) Compliance with state licensing 
                requirements.--Certify''; and
                    (B) by striking clause (ii).
            (2) Section 658F(b)(1) of the Child Care and Development 
        Block Grant Act of 1990 (42 U.S.C. 9858d(b)(1)) is amended by 
        striking ``658O(c)(6)'' and inserting ``658O(c)(7)''.

SEC. 113. MISCELLANEOUS PROVISIONS.

    Section 658S of the Child Care and Development Block Grant Act of 
1990 (42 U.S.C. 9858q) is amended by inserting ``, including section 
658E(c)(6),'' after ``this subchapter''.

SEC. 114. DEFINITIONS.

    Section 658T of the Child Care and Development Block Grant Act of 
1990 (42 U.S.C. 9858n) (as redesignated by section 110(1)(A)) is 
amended--
            (1) by inserting after paragraph (2) the following:
            ``(3) Child with a disability or other special needs.--The 
        term `child with a disability or other special needs' means a 
        child who is--
                    ``(A) eligible for early intervention services 
                under part C of the Individuals with Disabilities 
                Education Act (20 U.S.C. 1431 et seq.);
                    ``(B) eligible for services under part B of the 
                Individuals with Disabilities Education Act (20 U.S.C. 
                1411 et seq.); or
                    ``(C) a child with special health care needs, 
                within the meaning of title V of the Social Security 
                Act (42 U.S.C. 701 et seq.), who is an individual with 
                a disability, as defined in section 7(20)(B) of the 
                Rehabilitation Act of 1973 (29 U.S.C. 705(20)(B)).'';
            (2) in paragraph (4)--
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(A)(i) who is less than 13 years of age;
                    ``(ii) who is 13, if the individual was receiving 
                assistance under this subchapter on the individual's 
                13th birthday, the birthday occurred during a school 
                year, and the school year has not ended; or
                    ``(iii) who is--
                            ``(I) younger than 19; and
                            ``(II) physically or mentally incapable of 
                        caring for the child, or under court 
                        supervision;'' and
                    (B) in subparagraph (C)--
                            (i) in clause (i)--
                                    (I) by striking ``or attending'' 
                                and inserting ``, are attending'';
                                    (II) by inserting ``, or (in the 
                                case of a parent receiving assistance 
                                through a State program described in 
                                section 658E(c)(6)) have a recent work 
                                history under criteria determined by 
                                the State and meet the other 
                                requirements of the State program'' 
                                before the semicolon; and
                                    (III) by striking ``or'' at the 
                                end;
                            (ii) in clause (ii), by striking the period 
                        and inserting ``; or''; and
                            (iii) by adding at the end the following:
                            ``(iii) is a foster child.'';
            (3) in paragraph (5)(A), by inserting ``a system or network 
        of family child care homes,'' after ``a family child care 
        provider,'';
            (4) by redesignating paragraphs (8) and (9) as paragraphs 
        (9) and (10), respectively;
            (5) by inserting after paragraph (7) the following:
            ``(8) Infants and toddlers.--The term `infants and 
        toddlers' means children from birth through age 2.'';
            (6) by redesignating paragraphs (13) and (14) as paragraphs 
        (14) and (16), respectively;
            (7) by inserting after paragraph (12) the following:
            ``(13) Special population.--The term `special population' 
        includes infants and toddlers, children with disabilities or 
        other special needs, and children who require care during 
        nontraditional hours.''; and
            (8) by inserting after paragraph (14) (as redesignated in 
        paragraph (6)) the following:
            ``(15) System or network of family child care homes.--The 
        term `system or network of family child care homes' means an 
        organization or agency that has a contractual relationship with 
        1 or more family child care providers to provide child care 
        services on a regular basis and that provides administrative 
        and programmatic support to such providers.''.

                TITLE II--QUALITY CHILD CARE INITIATIVES

          Subtitle A--Child Care Centers in Federal Facilities

SEC. 201. SHORT TITLE.

    This subtitle may be cited as the ``Federal Employees Child Care 
Act''.

SEC. 202. DEFINITIONS.

    In this subtitle:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of General Services.
            (2) Entity sponsoring a child care center.--The term 
        ``entity sponsoring'', used with respect to a child care 
        center, means a Federal agency that operates, or an entity that 
        enters into a contract (including a licensing agreement) with a 
        Federal agency to operate, a child care center primarily for 
        the use of Federal employees.
            (3) Executive agency.--The term ``Executive agency'' has 
        the meaning given the term in section 105 of title 5, United 
        States Code, except that the term--
                    (A) does not include the Department of Defense and 
                the Coast Guard; and
                    (B) includes the General Services Administration, 
                with respect to the administration of a facility 
                described in paragraph (4)(B).
            (4) Executive facility.--The term ``executive facility''--
                    (A) means a facility that is owned or leased by an 
                Executive agency; and
                    (B) includes a facility that is owned or leased by 
                the General Services Administration on behalf of a 
                judicial office.
            (5) Federal agency.--The term ``Federal agency'' means an 
        Executive agency, a legislative office, or a judicial office.
            (6) Head.--The term ``head'', used with respect to an 
        agency, includes the designee of the head of the agency.
            (7) Judicial facility.--The term ``judicial facility'' 
        means a facility that is owned or leased by a judicial office 
        (other than a facility that is also a facility described in 
        paragraph (4)(B)).
            (8) Judicial office.--The term ``judicial office'' means an 
        entity of the judicial branch of the Federal Government.
            (9) Legislative facility.--The term ``legislative 
        facility'' means a facility that is owned or leased by a 
        legislative office.
            (10) Legislative office.--The term ``legislative office'' 
        means an entity of the legislative branch of the Federal 
        Government.
            (11) State.--The term ``State'' has the meaning given the 
        term in section 658T of the Child Care and Development Block 
        Grant Act of 1990 (42 U.S.C. 9858n).

SEC. 203. PROVIDING QUALITY CHILD CARE IN FEDERAL FACILITIES.

    (a) Executive Facilities.--
            (1) State and local licensing requirements.--
                    (A) In general.--With respect to a child care 
                center, and the entity sponsoring the child care 
                center, in an executive facility, the head of the 
                Executive agency involved shall ensure that the center 
                and the entity--
                            (i) comply with child care standards 
                        relating to health, safety, facilities, and 
                        other aspects of child care (including 
                        requirements that child care centers be 
                        inspected for, and be free of, lead hazards) 
                        that are no less stringent than applicable 
                        State or local licensing requirements that are 
                        related to the provision of child care in the 
                        State or locality involved; or
                            (ii) obtain the applicable State or local 
                        licenses, as appropriate, for the center.
                    (B) Compliance.--Not later than 6 months after the 
                date of enactment of this Act--
                            (i) the head of the Executive agency shall 
                        certify to the appropriate committees of 
                        Congress that the child care center and the 
                        entity sponsoring the child care center are 
                        complying with subparagraph (A); and
                            (ii) any contract (including a licensing 
                        agreement) used by the Executive agency for the 
                        provision of child care services in the 
child care center shall include a condition that the child care be 
provided by a child care center and an entity sponsoring the child care 
center that comply with the standards described in subparagraph (A)(i) 
or obtain the licenses described in subparagraph (A)(ii).
            (2) Accreditation standards.--The child care center, and 
        the entity sponsoring the child care center, shall comply with 
        the standards of a nationally recognized child care 
        accreditation entity.
            (3) Evaluation and compliance.--
                    (A) Evaluation.--
                            (i) In general.--At least annually, the 
                        head of the Executive agency shall evaluate the 
                        compliance with the requirements of paragraphs 
                        (1) and (2), as appropriate, of child care 
                        centers, and entities sponsoring child care 
                        centers, in the executive facilities of the 
                        agency. The head of the Executive agency may 
                        conduct the evaluation of such a child care 
                        center or entity directly, or through an 
agreement with another Federal agency, State child care provider 
licensing agency, or private entity, other than the Federal agency for 
which the child care center is providing services.
                            (ii) Other evaluator.--
                                    (I) Determination of 
                                noncompliance.--If an evaluator other 
                                than the head of the Executive agency 
                                determines, on the basis of the 
                                evaluation, that the child care center 
                                or entity is not in compliance with the 
                                requirements, the evaluator shall 
                                notify the head of the Executive 
                                agency.
                                    (II) Decision concerning threat to 
                                life or risk of serious bodily harm.--
                                On making that determination, the 
                                evaluator shall decide, on the basis of 
                                the evaluation, whether any deficiency 
                                in the operation of the child care 
                                center is life threatening or presents 
                                a risk of serious bodily harm and, if 
                                so, shall include that determination in 
                                the notification.
                            (iii) Head of executive agency.--On 
                        receiving such a notification the head of the 
                        Executive agency shall--
                                    (I) determine whether the child 
                                care or entity is not in compliance 
                                with the requirements; and
                                    (II) if so, decide whether any 
                                deficiency in the operation of the 
                                child care center is life threatening 
                                or presents a risk of serious bodily 
                                harm.
                            (iv) Report to congress.--If the head of 
                        the Executive agency makes a different 
                        determination under clause (iii)(I) than the 
                        evaluator did under clause (ii)(I), or makes a 
                        different decision under clause (iii)(II) than 
                        the evaluator did under clause (ii)(II), the 
                        head of the Executive agency shall submit to 
                        the appropriate committees of Congress a report 
                        explaining the reasons for the difference.
                    (B) Effect of noncompliance.--If the head of the 
                Executive agency determines that the child care center 
                or entity is not in compliance with the requirements, 
                the head of the Executive agency shall--
                            (i) if the entity operating the child care 
                        center is the agency--
                                    (I) not later than 2 business days 
                                after the date of the determination, 
                                correct any deficiencies that the head 
                                of the Executive agency decides are 
                                life threatening or present a risk of 
                                serious bodily harm;
                                    (II) not later than 4 months after 
                                the date of the determination, develop 
                                a plan to correct any other 
                                deficiencies in the operation of the 
                                child care center and bring the center 
                                and entity into compliance with the 
                                requirements;
                                    (III) provide the parents of the 
                                children receiving child care services 
                                at the child care center and employees 
                                of the center with a notification 
                                detailing the deficiencies described in 
                                subclauses (I) and (II) and actions 
                                that will be taken to correct the 
                                deficiencies, and post a copy of the 
                                notification in a conspicuous place in 
                                the center for 5 working days or until 
                                the deficiencies are corrected, 
                                whichever is later;
                                    (IV) bring the child care center 
                                and entity into compliance with the 
                                requirements and verify that the center 
                                and entity are in compliance, based on 
                                an onsite evaluation of the center and 
                                entity conducted by an individual with 
                                expertise in child care health and 
                                safety; and
                                    (V) in the event that deficiencies 
                                that the head of the Executive agency 
                                decides are life threatening or present 
                                a risk of serious bodily harm cannot be 
                                corrected within 2 business days after 
                                the date of the determination, close 
                                the child care center, or the affected 
                                portion of the center, until the 
                                deficiencies are corrected and notify 
                                the appropriate committees of Congress 
                                of the closure; and
                            (ii) if the entity operating the child care 
                        center is a contractor (including a licensee) 
                        of the Executive agency--
                                    (I) require the contractor, not 
                                later than 2 business days after the 
                                date of the determination, to correct 
                                any deficiencies that the head of the 
                                Executive agency decides are life 
                                threatening or present a risk of 
                                serious bodily harm;
                                    (II) require the contractor, not 
                                later than 4 months after the date of 
                                the determination, to develop and 
                                provide to the head of the agency a 
                                plan to correct any other deficiencies 
                                in the operation of the child care 
                                center and bring the center and entity 
                                into compliance with the requirements;
                                    (III) require the contractor to 
                                provide the parents of the children 
                                receiving child care services at the 
                                child care center and employees of the 
                                center with a notification detailing 
                                the deficiencies described in 
                                subclauses (I) and (II) and actions 
                                that will be taken to correct the 
                                deficiencies, and to post a copy of the 
                                notification in a conspicuous place in 
                                the center for 5 working days or until 
                                the deficiencies are corrected, 
                                whichever is later;
                                    (IV) require the contractor to 
                                bring the child care center and entity 
                                into compliance with the requirements 
                                and certify to the head of the agency 
                                that the center and entity are in 
                                compliance, based on an onsite 
                                evaluation of the center and entity 
                                conducted by an independent entity with 
                                expertise in child care health and 
                                safety; and
                                    (V) in the event that deficiencies 
                                that the head of the Executive agency 
                                decides are life threatening or present 
                                a risk of serious bodily harm cannot be 
                                corrected within 2 business days after 
                                the date of the determination, close 
                                the child care center, or the affected 
                                portion of the center, until the 
                                deficiencies are corrected and notify 
                                the appropriate committees of Congress 
                                of the closure, which closure may be 
grounds for the immediate termination or suspension of the contract of 
the contractor.
            (4) Definition.--In this subsection, the term ``appropriate 
        committees'' means the Committee on Education and the Workforce 
        of the House of Representatives, the Committee on Health, 
        Education, Labor and Pensions of the Senate, and the 
        appropriate subcommittees of the Committee on Appropriations of 
        the House of Representatives and of the Committee on 
        Appropriations of the Senate.
    (b) Legislative Facilities.--
            (1) Accreditation.--The Chief Administrative Officer of the 
        House of Representatives, the Librarian of Congress, and the 
        head of a designated entity in the Senate shall ensure that, 
        not later than 1 year after the date of enactment of this Act, 
        the corresponding child care center obtains accreditation by a 
        nationally recognized child care accreditation entity, in 
        accordance with the accreditation standards of the entity.
            (2) Regulations.--If the corresponding child care center 
        does not maintain accreditation status with a nationally 
        recognized child care accreditation entity, the Chief 
        Administrative Officer of the House of Representatives, the 
        Librarian of Congress, or the head of the designated entity in 
        the Senate shall issue regulations governing the operation of 
        the corresponding child care center, to ensure the safety and 
        quality of care of children placed in the center. The 
        regulations shall be no less stringent in content and effect 
        than the requirements of subsection (a)(1).
            (3) Corresponding child care center.--In this subsection, 
        the term ``corresponding child care center'', used with respect 
        to the Chief Administrative Officer, the Librarian, or the head 
        of a designated entity described in paragraph (1), means a 
        child care center operated by, or under a contract (including a 
        licensing agreement) with, an office of the House of 
        Representatives, the Library of Congress, or an office of the 
        Senate, respectively.
    (c) Judicial Branch Standards and Compliance.--
            (1) In general.--With respect to a child care center, and 
        the entity sponsoring the child care center, in a judicial 
        facility, the head of the judicial office involved shall ensure 
        that the center and the entity--
                    (A) comply with child care standards relating to 
                health, safety, facilities, and other aspects of child 
                care (including requirements that child care centers be 
                inspected for, and be free of, lead hazards) that are 
                no less stringent than applicable State or local 
                licensing requirements that are related to the 
                provision of child care in the State or locality 
                involved; or
                    (B) obtain the applicable State or local licenses, 
                as appropriate, for the center.
            (2) Accreditation standards.--The child care center, and 
        the entity sponsoring the child care center, shall comply with 
        the standards of a nationally recognized child care 
        accreditation entity.
            (3) Evaluation and compliance.--
                    (A) Director of the administrative office of the 
                united states courts.--The Director of the 
                Administrative Office of the United States Courts shall 
                have the same authorities and duties with respect to 
                the evaluation and compliance of child care centers, 
                and entities sponsoring child care centers, in judicial 
                facilities as the head of an Executive agency has with 
                respect to the evaluation and compliance of child care 
                centers and entities sponsoring child care centers, in 
                executive facilities.
    (d) Interagency Council.--
            (1) Composition.--The Secretary of Health and Human 
        Services shall establish an interagency council, comprised of--
                    (A) representatives of all Executive agencies with 
                8 or more child care centers sponsored in facilities 
                owned or leased by an Executive agency, and other 
                Executive agencies at the election of the heads of such 
                agencies;
                    (B) a representative of the Chief Administrative 
                Officer of the House of Representatives, at the 
election of the Chief Administrative Officer;
                    (C) a representative of the head of the designated 
                Senate entity described in subsection (b), at the 
                election of the head of the entity;
                    (D) a representative of the Librarian of Congress, 
                at the election of the Librarian; and
                    (E) a representative of the Director of the 
                Administrative Office of the United States Courts, at 
                the election of the Director.
            (2) Functions.--The council shall facilitate cooperation 
        and sharing of best practices, and develop and coordinate 
        policy, regarding the provision of child care, including the 
        provision of areas for nursing mothers and other lactation 
        support facilities and services, in the Federal Government.
    (e) Application.--This section shall not apply to a child care 
center operated in a facility owned or leased by the General Services 
Administration.

SEC. 204. FEDERAL CHILD CARE EVALUATION.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Administrator and the Director of the Office of 
Personnel Management shall jointly prepare and submit to Congress a 
report that evaluates child care provided by entities sponsoring child 
care centers in executive facilities, legislative facilities, or 
judicial facilities.
    (b) Contents.--The evaluation shall contain, at a minimum--
            (1) information on the number of children receiving child 
        care described in subsection (a), analyzed by age, including 
        information on the number of those children who are age 6 
        through 12; and
            (2) recommendations for improving the quality and cost-
        effectiveness of child care described in subsection (a), 
        including recommendations of options for creating an optimal 
        organizational structure and using best practices for the 
delivery of the child care.

SEC. 205. MISCELLANEOUS PROVISIONS RELATING TO CHILD CARE PROVIDED BY 
              FEDERAL AGENCIES.

    (a) Availability of Federal Child Care Centers for Onsite 
Contractors; Percentage Goal.--Section 616 of the Act of December 22, 
1987 (40 U.S.C. 490b) is amended--
            (1) in subsection (a)--
                    (A) by striking ``officer or agency of the United 
                States'' and inserting ``Federal agency or officer of a 
                Federal agency''; and
                    (B) by striking paragraphs (2) and (3) and 
                inserting the following:
            ``(2) the officer or agency determines that the space will 
        be used to provide child care and related services to--
                    ``(A) children of Federal employees or onsite 
                Federal contractors; or
                    ``(B) dependent children who live with Federal 
                employees or onsite Federal contractors; and
            ``(3) the officer or agency determines that the individual 
        or entity will give priority for available child care and 
        related services in the space to Federal employees and onsite 
        Federal contractors.''; and
            (2) by adding at the end the following:
    ``(f)(1)(A) The Administrator of General Services shall confirm 
that at least 50 percent of aggregate enrollment in Federal child care 
centers governmentwide are children of Federal employees or onsite 
Federal contractors, or dependent children who live with Federal 
employees or onsite Federal contractors.
    ``(B) Each provider of child care services at an individual Federal 
child care center shall maintain 50 percent of the enrollment at the 
center of children described under subparagraph (A) as a goal for 
enrollment at the center.
    ``(C)(i) If enrollment at a center does not meet the percentage 
goal under subparagraph (B), the provider shall develop and implement a 
business plan with the sponsoring Federal agency to achieve the goal 
within a reasonable timeframe.
    ``(ii) The plan shall be approved by the Administrator of General 
Services based on--
            ``(I) compliance of the plan with standards established by 
        the Administrator; and
            ``(II) the effect of the plan on achieving the aggregate 
        Federal enrollment percentage goal.
    ``(2) The Administrator of General Services may enter into public-
private partnerships or contracts with nongovernmental entities to 
increase the capacity, quality, affordability, or range of child care 
and related services and may, on a demonstration basis, waive 
subsection (a)(3) and paragraph (1) of this subsection.''.
    (b) Payment of Costs of Training Programs.--Section 616(b)(3) of 
such Act (40 U.S.C. 490b(b)(3)) is amended to read as follows:
    ``(3) If a Federal agency has a child care facility in a Federal 
space, or is a sponsoring agency for a child care facility in a Federal 
space, the agency or the General Services Administration may pay 
accreditation fees, including renewal fees, for that center to be 
accredited. Any Federal agency that provides or proposes to provide 
child care services for children referred to in subsection (a)(2), may 
reimburse any Federal employee or any person employed to provide the 
services for the costs of training programs, conferences, and meetings 
and related travel, transportation, and subsistence expenses incurred 
in connection with those activities. Any per diem allowance made under 
this section shall not exceed the rate specified in regulations 
prescribed under section 5707 of title 5, United States Code.''.
    (c) Technical and Conforming Amendments.--Section 616(c) of such 
Act (40 U.S.C. 490b(c)) is amended--
            (1) by inserting ``Federal'' before ``child care centers''; 
        and
            (2) by striking ``Federal workers'' and inserting ``Federal 
        employees''.
    (d) Provision of Child Care by Private Entities.--Section 616(d) of 
such Act (40 U.S.C. 490b(d)) is amended to read as follows:
    ``(d)(1) If a Federal agency has a child care facility in a Federal 
space, or is a sponsoring agency for a child care facility in a Federal 
space, the agency, the child care center board of directors, or the 
General Services Administration may enter into an agreement with 1 or 
more private entities under which the private entities would assist in 
defraying the general operating expenses of the child care providers 
including salaries and tuition assistance programs at the facility.
    ``(2)(A) Notwithstanding any other provision of law, if a Federal 
agency does not have a child care program, or if the Administrator of 
General Services has identified a need for child care for Federal 
employees at a Federal agency providing child care services that do not 
meet the requirements of subsection (a), the agency or the 
Administrator may enter into an agreement with a non-Federal, licensed, 
and accredited child care facility, or a planned child care facility 
that will become licensed and accredited, for the provision of child 
care services for children of Federal employees.
    ``(B) Before entering into an agreement, the head of the Federal 
agency shall determine that child care services to be provided through 
the agreement are more cost-effectively provided through the 
arrangement than through establishment of a Federal child care 
facility.
    ``(C) The Federal agency may provide any of the services described 
in subsection (b)(3) if, in exchange for the services, the facility 
reserves child care spaces for children referred to in subsection 
(a)(2), as agreed to by the parties. The cost of any such services 
provided by a Federal agency to a Federal child care facility on behalf 
of another Federal agency shall be reimbursed by the receiving agency.
    ``(3) This subsection does not apply to residential child care 
programs.''.
    (e) Pilot Projects.--Section 616 of such Act (40 U.S.C. 490b) is 
further amended by adding at the end the following:
    ``(g)(1) Upon approval of the agency head, a Federal agency may 
conduct a pilot project not otherwise authorized by law for no more 
than 2 years to test innovative approaches to providing alternative 
forms of quality child care assistance for Federal employees. A Federal 
agency head may extend a pilot project for an additional 2-year period. 
Before any pilot project may be implemented, a determination shall be 
made by the agency head that initiating the pilot project would be more 
cost-effective than establishing a new Federal child care facility. 
Costs of any pilot project shall be paid solely by the agency 
conducting the pilot project.
    ``(2) The Administrator of General Services shall serve as an 
information clearinghouse for pilot projects initiated by other Federal 
agencies to disseminate information concerning the pilot projects to 
the other Federal agencies.
    ``(3) Within 6 months after completion of the initial 2-year pilot 
project period, a Federal agency conducting a pilot project under this 
subsection shall provide for an evaluation of the impact of the project 
on the delivery of child care services to Federal employees, and shall 
submit the results of the evaluation to the Administrator of General 
Services. The Administrator shall share the results with other Federal 
agencies.''.
    (f) Definitions.--Section 616 of such Act (40 U.S.C. 490b) is 
further amended by adding at the end the following:
    ``(h) In this section:
            ``(1) The term `Federal agency' has the meaning given the 
        term `Executive agency' in section 202 of the Federal Employees 
        Child Care Act.
            ``(2) The terms `Federal building' and `Federal space' have 
        the meanings given the term `executive facility' in such 
        section 202.
            ``(3) The term `Federal child care center' means a child 
        care center in an executive facility, as defined in such 
        section 202.
            ``(4) The terms `Federal contractor' and `Federal employee' 
        mean a contractor and an employee, respectively, of an 
        Executive agency, as defined in such section 202.''.

         Subtitle B--Technical and Financial Assistance Grants

SEC. 211. GRANTS.

    (a) Definitions.--In this section:
            (1) Child care facility.--The term ``child care facility'' 
        means a center-based or home-based child care facility.
            (2) Eligible intermediary.--The term ``eligible 
        intermediary'' means a private, nonprofit intermediary 
        organization or Indian tribe or tribal organization that has 
        demonstrated experience in--
                    (A) providing technical or financial assistance for 
                the construction and renovation of physical facilities;
                    (B) providing technical or financial assistance to 
                child care providers; and
                    (C) securing private sources for capital financing 
                of child care or low-income community development.
            (3) Eligible recipient.--The term ``eligible recipient'' 
        means--
                    (A) any existing or new center-based or home-based 
                child care provider that provides services to eligible 
                children under a program carried out under the Child 
                Care and Development Block Grant Act of 1990 (42 U.S.C. 
                9858 et seq.), or another program serving low-income 
                children as determined by the Secretary; and
                    (B) any organization in the process of establishing 
                a center-based or home-based child care program or 
                otherwise seeking to provide child care services to 
                children described in subparagraph (A).
            (4) Indian tribe; tribal organization.--The terms ``Indian 
        tribe'' and ``tribal organization'' have the meanings given the 
        terms in section 658T of the Child Care and Development Block 
        Grant Act of 1990.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
    (b) Grant Authority.--The Secretary may award grants on a 
competitive basis in accordance with this section to eligible 
intermediaries to assist the intermediaries in carrying out the 
activities described in subsection (e).
    (c) Applications.--To be eligible to receive a grant under this 
section an eligible intermediary shall submit to the Secretary an 
application, in such form and containing such information as the 
Secretary may require.
    (d) Priority.--
            (1) In general.--In awarding grants under this section the 
        Secretary shall give priority to applicants under subsection 
        (c) that propose to assist eligible recipients that serve low-
        income areas, such as--
                    (A) a community that--
                            (i) is in a metropolitan area; and
                            (ii) has a median household income that is 
                        not more than 80 percent of the median 
                        household income of the metropolitan area; or
                    (B) a community that--
                            (i) is not in a metropolitan area; and
                            (ii) has a median income that is not more 
                        than 80 percent of the median household income 
                        of the State in which the community is located.
            (2) Definition.--In this subsection, the term 
        ``metropolitan area'' has the meaning given the term in section 
        102 of the Housing and Community Development Act of 1974 (42 
        U.S.C. 5302).
    (e) Use of Funds.--
            (1) Revolving fund.--Each eligible intermediary that 
        receives a grant under this section shall deposit the grant 
        amount into a child care revolving fund established by the 
        eligible intermediary.
            (2) Payments from fund.--Subject to subsection (f), from 
        amounts deposited into the revolving fund under paragraph (1), 
        each eligible intermediary shall provide technical and 
        financial assistance (in the form of loans, grants, 
        investments, guarantees, interest subsidies, and other 
        appropriate forms of assistance) to eligible recipients to pay 
        for the Federal share of the cost of the acquisition, 
        construction, or improvement of child care facilities or 
        equipment, or for the improvement of related management and 
        business practices, for each such recipient. The amounts may be 
        used solely for the purpose of providing technical or financial 
        assistance.
            (3) Loan repayments and investment proceeds.--Any amount 
        received by an eligible intermediary from an eligible recipient 
        in the form of a loan repayment or investment proceeds shall be 
        deposited into the child care revolving fund of the eligible 
        intermediary for redistribution to other eligible recipients in 
        accordance with this section.
    (f) Federal Share.--
            (1) In general.--The Federal share of the cost described in 
        subsection (e)(2) shall be not more than 50 percent.
            (2) Non-federal share.--The non-Federal share of the cost 
        may be provided in cash or in kind, fairly evaluated, including 
        plant, equipment, or services.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $50,000,000 for each of fiscal 
years 2003 through 2007.

            Subtitle C--Improving the Availability of Books

SEC. 221. SHORT TITLE.

    This subtitle may be cited as the ``Book Stamp Act''.

SEC. 222. FINDINGS.

    Congress finds the following:
            (1) Literacy is fundamental to all learning.
            (2) Between 40 and 60 percent of the Nation's children do 
        not read at grade level, particularly children in families or 
        school districts that are challenged by significant financial 
        or social instability.
            (3) Increased investments in child literacy are needed to 
        improve opportunities for children and the efficacy of the 
        Nation's education investments.
            (4) Increasing access to books in the home is an important 
        means of improving child literacy, which can be accomplished 
        nationally at modest cost.
            (5) Effective channels for book distribution already exist 
        through child care providers, hospitals, pediatrician's 
        offices, entities carrying out faith-based programs, and 
        entities carrying out early literacy programs.

SEC. 223. DEFINITIONS.

    In this subtitle:
            (1) Early learning program.--The term ``early learning'', 
        used with respect to a program, means a program of activities 
        designed to facilitate development of cognitive, language, 
        motor, and social-emotional skills in children under age 6 as a 
        means of enabling the children to enter school ready to learn, 
        such as a Head Start or Early Head Start program carried out 
        under the Head Start Act (42 U.S.C. 9831 et seq.), or a State 
        pre-kindergarten program.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (3) State.--The term ``State'' means the 50 States, the 
        District of Columbia, the Commonwealth of Puerto Rico, Guam, 
        the United States Virgin Islands, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.
            (4) State agency.--The term ``State agency'' means an 
        agency designated under section 658D of the Child Care and 
        Development Block Grant Act of 1990 (42 U.S.C. 9858b).

SEC. 224. GRANTS TO STATE AGENCIES.

    (a) Establishment of Program.--The Secretary shall establish and 
carry out a program to promote child literacy and improve children's 
access to books at home and in early learning, child care, literacy, 
and nutrition programs, by making books available through early 
learning programs, child care programs, hospital-based or clinic-based 
literacy programs, library-based literacy programs, nutrition programs 
at clinics described in section 226(a)(2)(A)(v), faith-based literacy 
programs, and other literacy programs.
    (b) Grants.--
            (1) In general.--In carrying out the program, the Secretary 
        shall make grants to State agencies from allotments determined 
        under paragraph (2).
            (2) Allotments.--For each fiscal year, the Secretary shall 
        allot to each State an amount that bears the same ratio to the 
        total of the available funds for the fiscal year as the amount 
        the State receives under section 658O(b) of the Child Care and 
        Development Block Grant Act of 1990 (42 U.S.C. 9858m(b)) for 
        the fiscal year bears to the total amount received by all 
        States under that section for the fiscal year.
    (c) Applications.--To be eligible to receive an allotment under 
this section, a State shall submit an application to the Secretary at 
such time, in such manner, and containing such information as the 
Secretary may require.
    (d) Accountability.--The provisions of sections 658M(b) and 658K(b) 
of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
9858g(b), 9858i(b)) shall apply to State agencies receiving grants 
under this subtitle, except that references in those sections--
            (1) to a subchapter shall be considered to be references to 
        this subtitle; and
            (2) to a plan or application shall be considered to be 
        references to an application submitted under subsection (c).
    (e) Definition.--In this section, the term ``available funds'', 
used with respect to a fiscal year, means the total of--
            (1) the funds made available under section 417(c)(1) of 
        title 39, United States Code, for the fiscal year; and
            (2) the amounts appropriated under section 229 for the 
        fiscal year.

SEC. 225. CONTRACTS TO CHILD CARE RESOURCE AND REFERRAL ORGANIZATIONS.

    A State agency that receives a grant under section 224 shall use 
funds made available through the grant to enter into contracts with 
local child care resource and referral organizations to carry out the 
activities described in section 226. The State agency may reserve not 
more than 3 percent of the funds made available through the grant to 
support a public awareness campaign relating to the activities.

SEC. 226. USE OF FUNDS.

    (a) Activities.--
            (1) Book payments for eligible providers.--A child care 
        resource and referral organization that receives a contract 
        under section 225 shall use the funds made available through 
        the grant to provide payments for eligible providers, on the 
        basis of local needs, to enable the providers to make books 
        available to promote child literacy and improve children's 
        access to books at home and in early learning, child care, 
        literacy, and nutrition programs.
            (2) Eligible providers.--To be eligible to receive a 
        payment under paragraph (1), a provider shall--
                    (A)(i) be a center-based child care provider, a 
                group home child care provider, or a family child care 
                provider, described in section 658T(5)(A) of the Child 
                Care and Development Block Grant Act of 1990 (42 U.S.C. 
                9858n(5)(A));
                    (ii) be a Head Start agency designated under 
                section 641 of the Head Start Act (42 U.S.C. 9836), an 
                entity that receives assistance under section 645A of 
                such Act (42 U.S.C. 9840a) to carry out an Early Head 
                Start program, or another provider of an early learning 
                program;
                    (iii) be an entity that carries out a hospital-
                based or clinic-based literacy program;
                    (iv) be an entity that carries out a library-based 
                literacy program serving children under age 6;
                    (v) be an entity that carries out a nutrition 
                program at a clinic (as defined in part 246.2 of title 
                7, Code of Federal Regulations (or any corresponding 
                similar regulation or ruling)) under section 17(b)(6) 
                of the Child Nutrition Act of 1966 (42 U.S.C. 
                1786(b)(6));
                    (vi) be an entity that carries out a faith-based 
                literacy program serving children under age 6; or
                    (vii) be another entity carrying out a literacy 
                program serving children under age 6; and
                    (B) provide services in an area where children face 
                high risks of literacy difficulties, as defined by the 
                Secretary.
    (b) Responsibilities.--A child care resource and referral 
organization that receives a contract under section 225 to provide 
payments to eligible providers shall--
            (1) consult with local individuals and organizations 
        concerned with early literacy (including parents, teachers, 
        pediatricians, directors 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), 
        literacy coalitions, and organizations carrying out the Reach 
        Out and Read, First Book, and Reading Is Fundamental programs) 
        regarding local book distribution needs;
            (2) make reasonable efforts to learn public demographic and 
        other information about local families and child literacy 
        programs carried out by the eligible providers, as needed to 
        inform the agency's decisions as the agency carries out the 
        contract;
            (3) coordinate local orders of the books made available 
        under this subtitle;
            (4) distribute, to each eligible provider that receives a 
        payment under this subtitle, not fewer than 1 book every 6 
        months for each child served by the provider for more than 3 of 
        the preceding 6 months;
            (5) use not more than 5 percent of the funds made available 
        through the contract to provide training and technical 
        assistance to the eligible providers on the effective use of 
        books with young children at different stages of development; 
        and
            (6) be a training resource for eligible providers that want 
        to offer parent workshops on developing reading readiness.
    (c) Discounts.--
            (1) In general.--Federal funds made available under this 
        subtitle for the purchase of books may only be used to purchase 
        books on the same terms as are customarily available in the 
        book industry to entities carrying out nonprofit bulk book 
        purchase and distribution programs.
            (2) Terms.--An entity offering books for purchase under 
        this subtitle shall be presumed to have met the requirements of 
        paragraph (1), absent contrary evidence, if the terms include a 
        discount of 43 percent off the catalogue price of the books, 
        with no additional charge for shipping and handling of the 
        books.
    (d) Administration.--The child care resource and referral 
organization may not use more than 6 percent of the funds made 
available through the contract for administrative costs.

SEC. 227. REPORT TO CONGRESS.

    Not later than 2 years after the date of enactment of this Act, the 
Secretary shall prepare and submit to Congress a report on the 
implementation of the activities carried out under this subtitle.

SEC. 228. SPECIAL POSTAGE STAMPS FOR CHILD LITERACY.

    Chapter 4 of title 39, United States Code is amended by adding at 
the end the following:
``Sec. 417. Special postage stamps for child literacy
    ``(a) In order to afford the public a convenient way to contribute 
to funding for child literacy, the Postal Service shall establish a 
special rate of postage for first-class mail under this section. The 
stamps that bear the special rate of postage shall promote childhood 
literacy and shall, to the extent practicable, contain an image 
relating to a character in a children's book or cartoon.
    ``(b)(1) The rate of postage established under this section--
            ``(A) shall be equal to the regular first-class rate of 
        postage, plus a differential of not to exceed 25 percent;
            ``(B) shall be set by the Governors in accordance with such 
        procedures as the Governors shall by regulation prescribe (in 
        lieu of the procedures described in chapter 36); and
            ``(C) shall be offered as an alternative to the regular 
        first-class rate of postage.
    ``(2) The use of the special rate of postage established under this 
section shall be voluntary on the part of postal patrons.
    ``(c)(1) Of the amounts becoming available for child literacy 
pursuant to this section, the Postal Service shall pay 100 percent to 
the Department of Health and Human Services.
    ``(2) Payments made under this subsection to the Department shall 
be made under such arrangements as the Postal Service shall by mutual 
agreement with such Department establish in order to carry out the 
objectives of this section, except that, under those arrangements, 
payments to such agency shall be made at least twice a year.
    ``(3) In this section, the term `amounts becoming available for 
child literacy pursuant to this section' means--
            ``(A) the total amounts received by the Postal Service that 
        the Postal Service would not have received but for the 
        enactment of this section; reduced by
            ``(B) an amount sufficient to cover reasonable costs 
        incurred by the Postal Service in carrying out this section, 
        including costs attributable to the printing, sale, and 
        distribution of stamps under this section,
as determined by the Postal Service under regulations that the Postal 
Service shall prescribe.
    ``(d) It is the sense of Congress that nothing in this section 
should--
            ``(1) directly or indirectly cause a net decrease in total 
        funds received by the Department of Health and Human Services, 
        or any other agency of the Government (or any component or 
        program of the Government), below the level that would 
        otherwise have been received but for the enactment of this 
        section; or
            ``(2) affect regular first-class rates of postage or any 
        other regular rates of postage.
    ``(e) Special postage stamps made available under this section 
shall be made available to the public beginning on such date as the 
Postal Service shall by regulation prescribe, but in no event later 
than 12 months after the date of enactment of this section.
    ``(f) The Postmaster General shall include in each report provided 
under section 2402, with respect to any period during any portion of 
which this section is in effect, information concerning the operation 
of this section, except that, at a minimum, each report shall include 
information on--
            ``(1) the total amounts described in subsection (c)(3)(A) 
        that were received by the Postal Service during the period 
        covered by such report; and
            ``(2) of the amounts described in paragraph (1), how much 
        (in the aggregate and by category) was required for the 
        purposes described in subsection (c)(3)(B).
    ``(g) This section shall cease to be effective at the end of the 2-
year period beginning on the date on which special postage stamps made 
available under this section are first made available to the public.''.

SEC. 229. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this subtitle, 
$50,000,000 for each of fiscal years 2003 through 2007.

                  TITLE III--EARLY CARE AND EDUCATION

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Early Care and Education Act''.

SEC. 302. 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. 303. PURPOSES.

    The purposes of this title 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. 304. DEFINITIONS.

    In this title:
            (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. 305. ALLOTMENT FORMULA.

    (a) Reservations.--
            (1) Indian tribes, alaska natives, and native hawaiians.--
                    (A) In general.--From the funds appropriated under 
                section 319 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 title 
                (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 319 for 
        each fiscal year to carry out the administration of this title, 
        including section 310(g)(3)(B).
    (b) State Allotments.--
            (1) In general.--Subject to paragraph (2), from the funds 
        appropriated under section 319 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 310(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. 306. 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 305(b)(1)(B).

SEC. 307. LEAD AGENCY AND ADVISORY COUNCIL.

    (a) Lead Agency.--The chief executive officer of a State desiring 
to receive a grant under this title 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 title.
    (b) Advisory Council.--
            (1) In general.--The chief executive officer of a State 
        desiring to receive a grant under this title shall designate or 
        establish a council to serve as the advisory council for the 
        State under this title.
            (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 organizations;
                                    (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 308.
    (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. 308. STATE PLANS AND APPLICATION.

    (a) In General.--To be eligible to receive funds under this title, 
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 title, 
                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 title 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 title; 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. 309. USE OF FUNDS.

    (a) In General.--A State that receives funds under this title 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 308 and 310; 
        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 308 and 310 as approved by the 
                Secretaries; and
                    (B) are linked to improving school preparedness as 
                determined by an appropriate performance outcome 
                measure described in section 310(f)(2).
    (b) Limitation on Administrative Costs.--A State that receives 
funds under this title 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 title.

SEC. 310. STATE IMPROVEMENT BONUS GRANTS.

    (a) In General.--The Secretaries shall use the funds described in 
section 305(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 309.
    (c) Progress on Competencies and Retention.--For the first fiscal 
year for which not less than $500,000,000 is appropriated under section 
319 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 306, 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 title, 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 title, from any amounts described in section 
305(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 title, for the second fiscal year after the year described 
        in subsection (c), from any amounts described in section 
        305(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 308 and subsection (f).

SEC. 311. ADMINISTRATION.

    The Secretaries shall enter into a memorandum of understanding that 
specifies how the Secretaries will carry out this title and award 
grants under this title. 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. 312. REPORTS TO SECRETARIES.

    (a) In General.--Each State that receives a grant (including a 
bonus grant) under this title 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 
        308 and 310 for the fiscal year involved; and
            (B) in the case of a State with a modified State 
        application submitted under section 308 or 310--
                    (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. 313. 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 title 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 308 and 310 for the fiscal year 
involved. The Secretaries shall make the determination on the basis of 
the State report described in section 312.
    (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 title for the 
following fiscal year, the State shall prepare and submit the plan to 
the Secretaries. To be eligible to receive funds under this title for a 
subsequent fiscal year, the State shall demonstrate reasonable progress 
in implementing such plan.

SEC. 314. NONCOMPLIANCE WITH STATE PLAN.

    (a) Review.--The Secretaries shall review each report submitted 
under section 312 for a fiscal year to ensure that the funds 
appropriated to carry out this title for the fiscal year were expended 
in accordance with the provisions of the State plan described in 
section 308(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 305(b)(1)(B) for the following fiscal year; and
            (2) the State shall not be eligible for a bonus grant under 
        section 310(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 305(b)(1)(B). For purposes of this title, 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. 315. 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 312(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. 316. 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 title) 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 310(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. 317. SUPPLEMENTATION OF FUNDS AND MAINTENANCE OF EFFORT.

    (a) Supplement, Not Supplant.--Amounts appropriated under this 
title 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 title 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. 318. RULES OF CONSTRUCTION.

    (a) In General.--Nothing in this title 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 title 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 title 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. 319. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to carry 
out this title $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>