[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2377 Introduced in House (IH)]






108th CONGRESS
  1st Session
                                H. R. 2377

 To establish the Child Care Provider Development and Retention Grant 
Program, the Child Care Provider Scholarship Program, and a program of 
 child care provider health benefits coverage, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 5, 2003

 Mr. George Miller of California (for himself, Mr. Platts, Mr. Kennedy 
 of Rhode Island, Mr. Andrews, Mr. Serrano, Ms. DeLauro, Mr. Davis of 
   Illinois, Ms. Solis, Mrs. Davis of California, Mr. Hinojosa, Mrs. 
   McCarthy of New York, Mr. Kildee, and Mr. Sanders) introduced the 
 following bill; which was referred to the Committee on Education and 
the Workforce, and in addition to the Committee on Energy and Commerce, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of 
                        the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To establish the Child Care Provider Development and Retention Grant 
Program, the Child Care Provider Scholarship Program, and a program of 
 child care provider health benefits coverage, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Focus On Committed and Underpaid 
Staff for Children's Sake Act'' or as the ``FOCUS Act''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress makes the following findings:
            (1) Research on early brain development and early childhood 
        demonstrates that the experiences children have and the 
        attachments children form early in life have a decisive, long-
        lasting impact on their later development and learning.
            (2) High-quality, developmentally appropriate child care 
        beginning in early childhood and continuing through the years 
        that children are in school improves the scholastic success and 
        educational attainment of children, and the success and 
        attainment persist into adulthood.
            (3) According to a growing body of research, the single 
        most important determinant of child care quality is the 
        presence of consistent, sensitive, well-trained, and well-
        compensated child care providers. However, child care programs 
        nationwide experience high turnover in teaching staff, fueled 
        by poor compensation and few opportunities for advancement.
            (4) The Department of Labor reports that, in 2001, the 
        average wage for a child care provider was $8.16 per hour, or 
        $16,980 annually. For full-time, full-year work, the average 
        annual wage for a child care provider was not much above the 
        2001 poverty line of $14,630 for a family consisting of a 
        parent and 2 children. Family child care providers earned even 
        less. The median weekly wage of a family child care provider in 
        2001 was $264, which equals an annual wage of $13,728.
            (5) Despite the important role child care providers may 
        play in early child development and learning, on average, a 
        child care provider earns less in a year than a bus driver 
        ($29,430), barber ($21,190), or janitor ($19,800).
            (6) Employer-sponsored benefits are minimal for most child 
        care staff. Even for child care providers at child care 
        centers, the availability of health care coverage for staff 
        remains woefully inadequate.
            (7) To offer compensation that would be sufficient to 
        attract and retain qualified child care providers, child care 
        programs would have to charge parents fees that many parents 
        could not afford. For programs that serve low-income children 
        whose families qualify for Federal and State child care 
        subsidies, the reimbursement rates set by the State strongly 
        influence the level of compensation that staff receive. Current 
        reimbursement rates for center-based child care services and 
        family child care services are insufficient to recruit and 
        retain qualified child care providers and to ensure high-
        quality services for children.
            (8) Teachers leaving the profession are being replaced by 
        staff with less education and formal training in early child 
        development.
            (9) As a result of low wages and limited benefits, many 
        child care providers do not work for long periods in the child 
        care field. Approximately 30 percent of all teaching staff 
        employed at child care centers leaves employment with a child 
        care center each year.
            (10) Child care providers, as well as the children, 
        families, and businesses that depend upon the providers, suffer 
        the consequences of inadequate compensation. This is true, with 
        few exceptions, for providers in all types of programs, 
        including subsidized and nonsubsidized programs, programs 
        offered by for-profit and nonprofit entities, and programs in 
        large and small child care settings.
            (11) Because of the severe nationwide shortage of qualified 
        staff available for employment by child care programs, several 
        States have recently initiated programs to improve the quality 
        of child care by increasing the training and compensation of 
        child care providers. Such programs encourage the training, 
        education, and increased retention of qualified child care 
        providers by offering financial incentives, including 
        scholarships and increases in compensation, that range from 
        $350 to $6,500 annually.
            (12) Family child care providers are almost twice as likely 
        to lack health insurance as the general population. One in four 
        child care centers does not offer health insurance benefits to 
        employees. Even child care providers with health insurance 
        coverage state that it is difficult to afford out-of-pocket 
        health care expenses.
            (13) In a study of lower income family child care providers 
        without health insurance, more than half had used emergency 
        room services for their own health care in the past year.
    (b) Purposes.--The purposes of this Act are--
            (1) to establish the Child Care Provider Development and 
        Retention Grant Program, the Child Care Provider Scholarship 
        Program, and a program of child care provider health benefits 
        coverage; and
            (2) to help children receive the high quality child care 
        and early education the children need for positive cognitive 
        and social development, by rewarding and promoting the 
        retention of committed, qualified child care providers and by 
        providing financial assistance to improve the educational 
        qualifications of child care providers.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Child care provider.--The term ``child care provider'' 
        means an individual who provides a service directly to a child 
        on a person-to-person basis for compensation for--
                    (A) a center-based child care provider that is 
                licensed or regulated under State or local law and that 
                satisfies the State and local requirements applicable 
                to the child care services provided;
                    (B) a licensed or regulated family child care 
                provider that satisfies the State and local 
                requirements applicable to the child care services 
                provided; or
                    (C) an out-of-school time program that is licensed 
                or regulated under State or local law and that 
                satisfies the State and local requirements applicable 
                to the child care services provided.
            (2) Family child care provider.--The term ``family child 
        care provider'' has the meaning given such term in section 658P 
        of the Child Care and Development Block Grant Act of 1990 (42 
        U.S.C. 9858n).
            (3) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given such term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (4) Lead agency.--The term ``lead agency'' means the agency 
        designated under section 658D of the Child Care and Development 
        Block Grant Act of 1990 (42 U.S.C. 9858b).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (6) State.--The term ``State'' means any of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands of the United States, Guam, American 
        Samoa, or the Commonwealth of the Northern Mariana Islands.
            (7) Tribal organization.--The term ``tribal organization'' 
        has the meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).

SEC. 4. FUNDS FOR CHILD CARE PROVIDER DEVELOPMENT AND RETENTION GRANTS, 
              SCHOLARSHIPS, AND HEALTH BENEFITS COVERAGE.

    (a) In General.--From amounts appropriated to carry out this Act, 
the Secretary may allot and distribute funds to eligible States, and 
make payments to Indian tribes and tribal organizations, to pay for the 
Federal share of the cost of carrying out activities under sections 7, 
8, and 9 for eligible child care providers.
    (b) Allotments.--The funds shall be allotted and distributed, and 
the payments shall be made, by the Secretary in accordance with section 
5, and expended by the States (directly, or at the option of the 
States, through units of general purpose local government), and by 
Indian tribes and tribal organizations, in accordance with this Act.

SEC. 5. ALLOTMENTS TO STATES.

    (a) Amounts Reserved.--
            (1) Territories and possessions.--The Secretary shall 
        reserve not more than \1/2\ of 1 percent of the funds 
        appropriated under section 12(a), and not more than \1/2\ of 1 
        percent of the funds appropriated under section 12(b), for any 
        fiscal year for payments to the Virgin Islands of the United 
        States, Guam, American Samoa, and the Commonwealth of the 
        Northern Mariana Islands, to be allotted in accordance with 
        their respective needs.
            (2) Indian tribes and tribal organizations.--The Secretary 
        shall reserve not more than 3 percent of the funds appropriated 
        under section 12(a), and not more than 3 percent of the funds 
        appropriated under section 12(b), for any fiscal year for 
        payments to Indian tribes and tribal organizations with 
        applications approved under subsection (c).
    (b) Allotments to Remaining States.--
            (1) General authority.--From the funds appropriated under 
        section 12(a) for any fiscal year and remaining after the 
        reservations made under subsection (a), and from the funds 
        appropriated under section 12(b) for any fiscal year and 
        remaining after the reservations made under subsection (a), the 
        Secretary shall allot to each State an amount equal to the sum 
        of--
                    (A) an amount that bears the same ratio to 50 
                percent of the appropriate remainder as the product of 
                the young child factor of the State and the allotment 
                percentage of the State bears to the sum of the 
                corresponding products for all States; and
                    (B) an amount that bears the same ratio to 50 
                percent of such remainder as the product of the school 
                lunch factor of the State and the allotment percentage 
                of the State bears to the sum of the corresponding 
                products for all States.
            (2) Young child factor.--In this subsection, the term 
        ``young child factor'' means the ratio of the number of 
        children under 5 years of age in the State to the number of 
        such children in all the States, as determined according to the 
        most recent annual estimates of population in the States, as 
        provided by the Bureau of the Census.
            (3) School lunch factor.--In this subsection, the term 
        ``school lunch factor'' means the ratio of the number of 
        children who are receiving free or reduced price lunches under 
        the school lunch program established under the Richard B. 
        Russell National School Lunch Act (42 U.S.C. 1751 et seq.) in 
        the State to the number of such children in all the States, as 
        determined annually by the Department of Agriculture.
            (4) Allotment percentage.--
                    (A) In general.--Except as provided in subparagraph 
                (B), for purposes of this subsection, the allotment 
                percentage for a State shall be determined by dividing 
                the per capita income of all individuals in the United 
                States, by the per capita income of all individuals in 
                the State.
                    (B) Limitations.--For purposes of this subsection, 
                if an allotment percentage determined under 
                subparagraph (A)--
                            (i) is more than 1.2 percent, the allotment 
                        percentage of that State shall be considered to 
                        be 1.2 percent; and
                            (ii) is less than 0.8 percent, the 
                        allotment percentage of the State shall be 
                        considered to be 0.8 percent.
                    (C) Per capita income.--For purposes of 
                subparagraph (A), per capita income shall be--
                            (i) determined at 2-year intervals;
                            (ii) applied for the 2-year period 
                        beginning on October 1 of the first fiscal year 
                        beginning after the date such determination is 
                        made; and
                            (iii) equal to the average of the annual 
                        per capita incomes for the most recent period 
                        of 3 consecutive years for which satisfactory 
                        data are available from the Department of 
                        Commerce at the time such determination is 
                        made.
    (c) Payments to Indian Tribes and Tribal Organizations.--
            (1) Reservation of funds.--From amounts reserved under 
        subsection (a)(2), the Secretary may make grants to or enter 
        into contracts with Indian tribes and tribal organizations that 
        submit applications under this subsection, to plan and carry 
        out programs and activities--
                    (A) to encourage child care providers to improve 
                their qualifications;
                    (B) to retain qualified child care providers in the 
                child care field; and
                    (C) to provide health benefits coverage for child 
                care providers.
            (2) Applications and requirements.--To be eligible to 
        receive a grant or contract under this subsection, an Indian 
        tribe or tribal organization shall submit an application to the 
        Secretary at such time, in such manner, and containing such 
        information as the Secretary may require. The application shall 
        provide that the applicant--
                    (A) will coordinate the programs and activities 
                involved, to the maximum extent practicable, with the 
                lead agency in each State in which the applicant will 
                carry out such programs and activities; and
                    (B) will make such reports on, and conduct such 
                audits of the funds made available through the grant or 
                contract for, programs and activities under this Act as 
                the Secretary may require.
    (d) Data and Information.--The Secretary shall obtain from each 
appropriate Federal agency, the most recent data and information 
necessary to determine the allotments provided for in subsection (b).
    (e) Reallotments.--
            (1) In general.--Any portion of an allotment under 
        subsection (b) to a State for a fiscal year that the Secretary 
        determines will not be distributed to the State for such fiscal 
        year shall be reallotted by the Secretary to other States in 
        proportion to the original corresponding allotments made under 
        such subsection to such States for such fiscal year.
            (2) Limitations.--
                    (A) Reduction.--The amount of any reallotment to 
                which a State is entitled under this subsection shall 
                be reduced to the extent that such amount exceeds the 
                amount that the Secretary estimates will be distributed 
                to the State to carry out corresponding activities 
                under this Act.
                    (B) Reallotments.--The amount of such reduction 
                shall be reallotted to States for which no reduction in 
                a corresponding allotment, or in a corresponding 
                reallotment, is required by this subsection, in 
                proportion to the original corresponding allotments 
                made under subsection (b) to such States for such 
                fiscal year.
            (3) Amounts reallotted.--For purposes of this Act (other 
        than this subsection and subsection (b)), any amount reallotted 
        to a State under this subsection shall be considered to be part 
        of the corresponding allotment made under subsection (b) to the 
        State.
            (4) Indian tribes or tribal organizations.--Any portion of 
        a grant or contract made to an Indian tribe or tribal 
        organization under subsection (c) that the Secretary determines 
        is not being used in a manner consistent with the provision of 
        this subchapter in the period for which the grant or contract 
        is made available, shall be used by the Secretary to make 
        payments to other tribes or organizations that have submitted 
        applications under subsection (c) in accordance with their 
        respective needs.
    (f) Cost-sharing.--
            (1) Child care provider development and retention grants 
        and scholarships.--
                    (A) Federal share.--The Federal share of the cost 
                of carrying out activities under sections 7 and 8, with 
                funds allotted under this section and distributed by 
                the Secretary to a State, shall be--
                            (i) not more than 90 percent of the cost of 
                        each grant made under such sections, in the 
                        first fiscal year for which the State receives 
                        such funds;
                            (ii) not more than 85 percent of the cost 
                        of each grant made under such sections, in the 
                        second fiscal year for which the State receives 
                        such funds;
                            (iii) not more than 80 percent of the cost 
                        of each grant made under such sections, in the 
                        third fiscal year for which the State receives 
                        such funds; and
                            (iv) not more than 75 percent of the cost 
                        of each grant made under such sections, in any 
                        subsequent fiscal year for which the State 
                        receives such funds.
                    (B) Non-federal share.--
                            (i) In general.--The State may provide the 
                        non-Federal share of the cost in cash or in the 
                        form of an in-kind contribution, fairly 
                        evaluated by the Secretary.
                            (ii) In-kind contribution.--In this 
                        subparagraph, the term ``in-kind contribution'' 
                        means payment of the costs of participation of 
                        eligible child care providers in health 
                        insurance programs or retirement programs.
            (2) Child care provider health benefits coverage.--
                    (A) Federal share.--The Federal share of the cost 
                of carrying out activities under section 9, with funds 
                allotted under this section and distributed by the 
                Secretary to a State, shall be not more than 50 percent 
                of such cost.
                    (B) Non-federal share.--The State may provide the 
                non-Federal share of the cost in cash or in kind, 
                fairly evaluated by the Secretary, including plant, 
                equipment, or services. The State shall provide the 
                non-Federal share directly or through donations from 
                public or private entities. Amounts provided by the 
                Federal Government, or services assisted or subsidized 
                to any significant extent by the Federal Government, 
                may not be included in determining the amount of such 
                share.
    (g) Availability of Allotted Funds Distributed to States.--Of the 
funds allotted under this section for activities described in sections 
7 and 8 and distributed by the Secretary to a State for a fiscal year--
            (1) not less than 67.5 percent shall be available to the 
        State for grants under section 7;
            (2) not less than 22.5 percent shall be available to the 
        State for grants under section 8; and
            (3) not more than 10 percent shall be available to pay 
        administrative costs incurred by the State to carry out 
        activities described in sections 7 and 8.
    (h) Definition.--For the purposes of subsections (a) through (e), 
the term ``State'' includes only the 50 States, the District of 
Columbia, and the Commonwealth of Puerto Rico.

SEC. 6. APPLICATION AND PLAN.

    (a) Application.--To be eligible to receive a distribution of funds 
allotted under section 5, a State shall submit to the Secretary an 
application at such time, in such manner, and containing such 
information as the Secretary may require by rule and shall include in 
such application--
            (1) a State plan that satisfies the requirements of 
        subsection (b); and
            (2) assurances of compliance satisfactory to the Secretary 
        with respect to the requirements of section 9.
    (b) Requirements of Plan.--
            (1) Lead agency.--The State plan shall identify the lead 
        agency to make grants under this Act for the State.
            (2) Recruitment and retention of child care providers.--The 
        State plan shall describe how the lead agency will encourage 
        both the recruitment of qualified child care providers who are 
        new to the child care field and the retention of qualified 
        child care providers who have a demonstrated commitment to the 
        child care field.
            (3) Notification of availability of grants and benefits.--
        The State plan shall describe how the lead agency will identify 
        all eligible child care providers in the State and notify the 
        providers of the availability of grants and benefits under this 
        Act.
            (4) Distribution of grants.--The State plan shall describe 
        how the lead agency will make grants under sections 7 and 8 to 
        eligible child care providers in selected geographical areas in 
        the State in compliance with the following requirements:
                    (A) Selection of geographical areas.--For the 
                purpose of making such grants for a fiscal year, the 
                State shall--
                            (i) select a variety of geographical areas, 
                        determined by the State, that, collectively--
                                    (I) include urban areas, suburban 
                                areas, and rural areas; and
                                    (II) are areas whose residents have 
                                diverse income levels; and
                            (ii) give special consideration to 
                        geographical areas selected under this 
                        subparagraph for the preceding fiscal year.
                    (B) Selection of child care providers to receive 
                grants.--In making grants under section 7, the State 
                may make grants only to eligible child care providers 
                in geographical areas selected under subparagraph (A), 
                but may give special consideration in such areas to 
                eligible child care providers--
                            (i) who have attained a higher relevant 
                        educational credential;
                            (ii) who provide a specific kind of child 
                        care services;
                            (iii) who provide child care services to 
                        populations who meet specific economic 
                        characteristics; or
                            (iv) who meet such other criteria as the 
                        State may establish.
                    (C) Limitation.--The State shall describe how the 
                State will ensure that grants made under section 7 to 
                child care providers will not be used to offset 
                reductions in the compensation of such providers.
                    (D) Reporting requirement.--With respect to each 
                particular geographical area selected under 
                subparagraph (A), the State shall provide an assurance 
                that the State will, for each fiscal year for which 
                such State receives a grant under section 7--
                            (i) include in the report required by 
                        section 10, detailed information regarding--
                                    (I) the continuity of employment of 
                                the grant recipients as child care 
                                providers with the same employer;
                                    (II) with respect to each employer 
                                that employed such a grant recipient, 
                                whether such employer was accredited by 
                                a recognized national or State 
                                accrediting body during the period of 
                                employment; and
                                    (III) to the extent practicable and 
                                available to the State, the rate and 
                                frequency of employment turnover of 
                                qualified child care providers 
                                throughout such area,
                        during the 2-year period ending on the deadline 
                        for submission of applications for grants under 
                        section 7 for that fiscal year; and
                            (ii) provide a follow-up report, not later 
                        than 90 days after the end of the succeeding 
                        fiscal year that includes information 
                        regarding--
                                    (I) the continuity of employment of 
                                the grant recipients as child care 
                                providers with the same employer;
                                    (II) with respect to each employer 
                                that employed such a grant recipient, 
                                whether such employer was accredited by 
                                a recognized national or State 
                                accrediting body during the period of 
                                employment; and
                                    (III) to the extent practicable and 
                                available to the State, detailed 
                                information regarding the rate and 
                                frequency of employment turnover of 
                                qualified child care providers 
                                throughout such area,
                        during the 1-year period beginning on the date 
                        on which the grant to the State was made under 
                        section 7.
            (5) Child care provider development and retention grant 
        program.--The State plan shall describe how the lead agency 
        will determine the amounts of grants to be made under section 7 
        in accordance with the following requirements:
                    (A) Sufficient amounts.--The State shall 
                demonstrate that the amounts of individual grants to be 
                made under section 7 will be sufficient--
                            (i) to encourage child care providers to 
                        improve their qualifications; and
                            (ii) to retain qualified child care 
                        providers in the child care field.
                    (B) Amounts to credentialed providers.--Such grants 
                made to eligible child care providers who have a child 
                development associate credential (or equivalent) and 
                who are employed full-time to provide child care 
                services shall be in an amount that is not less than 
                $1,000 per year.
                    (C) Amounts to providers with higher levels of 
                education.--The State shall make such grants in amounts 
                greater than $1,000 per year to eligible child care 
                providers who have higher levels of education than the 
                education required for a credential such as a child 
                development associate credential (or equivalent), 
                according to the following requirements:
                            (i) Providers with baccalaureate degrees in 
                        relevant fields.--An eligible child care 
                        provider who has a baccalaureate degree in the 
                        area of child development or early child 
                        education shall receive a grant under section 7 
                        in an amount that is not less than twice the 
                        amount of the grant that is made under section 
                        7 to an eligible child care provider who has an 
                        associate of the arts degree in the area of 
                        child development or early child education.
                            (ii) Providers with associate degrees.--An 
                        eligible child care provider who has an 
                        associate of the arts degree in the area of 
                        child development or early child education 
                        shall receive a grant under section 7 in an 
                        amount that is not less than 150 percent of the 
                        amount of the grant that is made under section 
                        7 to an eligible child care provider who has a 
                        child development associate credential (or 
                        equivalent) and is employed full-time to 
                        provide child care services.
                            (iii) Other providers with baccalaureate 
                        degrees.--
                                    (I) In general.--Except as provided 
                                in subclause (II), an eligible child 
                                care provider who has a baccalaureate 
                                degree in a field other than child 
                                development or early child education 
                                shall receive a grant under section 7 
                                in an amount equal to the amount of the 
                                grant that is made under section 7 to 
                                an eligible child care provider who has 
                                an associate of the arts degree in the 
                                area of child development or early 
                                child education.
                                    (II) Exception.--If an eligible 
                                child care provider who has such a 
                                baccalaureate degree obtains additional 
                                educational training in the area of 
                                child development or early child 
                                education, as specified by the State, 
                                such provider shall receive a grant 
                                under section 7 in an amount equal to 
                                the amount of the grant that is made 
                                under section 7 to an eligible child 
                                care provider who has a baccalaureate 
                                degree specified in clause (i).
                    (D) Amounts to full-time providers.--The State 
                shall make a grant under section 7 to an eligible child 
                care provider who works full-time in a greater amount 
                than the amount of the grant that is made under section 
                7 to an eligible child care provider who works part-
                time, based on the State definitions of full-time and 
                part-time work.
                    (E) Amounts to experienced providers.--The State 
                shall make grants under section 7 in progressively 
                larger amounts to eligible child care providers to 
                reflect the number of years worked as child care 
                providers.
            (6) Distribution of child care provider scholarships.--The 
        State plan shall describe how the lead agency will make grants 
        for scholarships in compliance with section 8 and shall specify 
        the types of educational and training programs for which the 
        scholarship grants made under such section may be used, 
        including only programs that--
                    (A) are administered by institutions of higher 
                education that are eligible to participate in student 
                financial assistance programs under title IV of the 
                Higher Education Act of 1965 (20 U.S.C. 1070 et seq.); 
                and
                    (B) lead to a State or nationally recognized 
                credential in the area of child development or early 
                child education, an associate of the arts degree in the 
                area of child development or early child education, or 
                a baccalaureate degree in the area of child development 
                or early child education.
            (7) Employer contribution.--The State plan shall describe 
        how the lead agency will encourage employers of child care 
        providers to contribute to the attainment of education goals by 
        eligible child care providers who receive grants under section 
        8.
            (8) Supplementation.--The State plan shall provide 
        assurances that amounts received by the State to carry out 
        sections 7, 8, and 9 will be used only to supplement, and not 
        to supplant, Federal, State, and local funds otherwise 
        available to support existing services and activities (as of 
        the date the amounts are used) that--
                    (A) encourage child care providers to improve their 
                qualifications and that promote the retention of 
                qualified child care providers in the child care field; 
                or
                    (B) provide health benefits coverage for child care 
                providers.

SEC. 7. CHILD CARE PROVIDER DEVELOPMENT AND RETENTION GRANT PROGRAM.

    (a) In General.--A State that receives funds allotted under section 
5 and made available to carry out this section shall expend such funds 
to pay for the Federal share of the cost of making grants to eligible 
child care providers in accordance with this section, to improve the 
qualifications and promote the retention of qualified child care 
providers.
    (b) Eligibility to Receive Grants.--To be eligible to receive a 
grant under this section, a child care provider shall--
            (1) have a child development associate credential (or 
        equivalent), an associate of the arts degree in the area of 
        child development or early child education, a baccalaureate 
        degree in the area of child development or early child 
        education, or a baccalaureate degree in an unrelated field; and
            (2) be employed as a child care provider for not less than 
        1 calendar year, or (if the provider is employed on the date of 
        the eligibility determination in a child care program that 
        operates for less than a full calendar year) the program 
        equivalent of 1 calendar year, ending on the date of the 
        application for such grant, except that not more than 3 months 
        of education related to child development or to early child 
        education obtained during the corresponding calendar year may 
        be treated as employment that satisfies the requirements of 
        this paragraph.
    (c) Preservation of Eligibility.--A State shall not take into 
consideration whether a child care provider is receiving, may receive, 
or may be eligible to receive any funds or benefits under any other 
provision of this Act for purposes of selecting eligible child care 
providers to receive grants under this section.

SEC. 8. CHILD CARE PROVIDER SCHOLARSHIP PROGRAM.

    (a) In General.--A State that receives funds allotted under section 
5 and made available to carry out this section shall expend such funds 
to pay for the Federal share of the cost of making scholarship grants 
to eligible child care providers in accordance with this section, to 
improve their educational qualifications to provide child care 
services.
    (b) Eligibility Requirement for Scholarship Grants.--To be eligible 
to receive a scholarship grant under this section, a child care 
provider shall be employed as a child care provider for not less than 1 
calendar year, or (if the provider is employed on the date of the 
eligibility determination in a child care program that operates for 
less than a full calendar year) the program equivalent of 1 calendar 
year, ending on the date of the application for such grant.
    (c) Selection of Grantees.--For purposes of selecting eligible 
child care providers to receive scholarship grants under this section 
and determining the amounts of such grants, a State shall not--
            (1) take into consideration whether a child care provider 
        is receiving, may receive, or may be eligible to receive any 
        funds or benefits under any other provision of this Act, or 
        under any other Federal or State law that provides funds for 
        educational purposes; or
            (2) consider as resources of such provider any funds such 
        provider is receiving, may receive, or may be eligible to 
        receive under any other provision of this Act, under any other 
        Federal or State law that provides funds for educational 
        purposes, or from a private entity.
    (d) Cost-Sharing Required.--The amount of a scholarship grant made 
under this section to an eligible child care provider shall be less 
than the cost of the educational or training program for which such 
grant is made.
    (e) Annual Maximum Scholarship Grant Amount.--The maximum aggregate 
dollar amount of a scholarship grant made by a State to an eligible 
child care provider under this section in a fiscal year shall be 
$1,500.

SEC. 9. CHILD CARE PROVIDER HEALTH BENEFITS COVERAGE.

    (a) Short Title.--This section may be cited as the ``Healthy Early 
Education Workforce Grant Program Act''.
    (b) Definition.--In this section, the terms ``dependent'', 
``domestic partner'', and ``spouse'', used with respect to a State, 
have the meanings given the terms by the State.
    (c) General Authority.--A State that receives funds allotted under 
section 5 and made available to carry out this section shall expend 
such funds to pay for the Federal share of the cost of providing access 
to affordable health benefits coverage for--
            (1) eligible child care providers; and
            (2) at the discretion of the State involved, the spouses, 
        domestic partners, and dependents of such providers.
    (d) Permissible Activities.--In carrying out subsection (c), the 
State may expend such funds for any of the following:
            (1) To reimburse an employer of an eligible child care 
        provider, or the provider, for the employer's or provider's 
        share (or a portion of the share) of the premiums or other 
        costs for coverage under group or individual health plans.
            (2) To offset the cost of enrolling eligible child care 
        providers in public health benefits plans, such as the medicaid 
        program under title XIX of the Social Security Act (42 U.S.C. 
        1396 et seq.), the State children's health insurance program 
        under title XXI of such Act (42 U.S.C. 1397aa et seq.), or 
        public employee health benefit plans.
            (3) To otherwise subsidize the cost of health benefits 
        coverage for eligible child care providers.
    (e) Eligibility Criteria for Health Benefits Coverage.--The State 
may establish criteria to limit the child care providers who may 
receive benefits through the allotment.
    (f) Selection of Grantees.--For purposes of selecting eligible 
child care providers to receive benefits under this section for a 
fiscal year, a State shall give--
            (1) highest priority to--
                    (A) providers that meet any applicable criteria 
                established in accordance with subsection (e) and 
                received such assistance during the previous fiscal 
                year; and
                    (B) at the State's discretion, the spouses, 
                domestic partners, and dependents of such providers; 
                and
            (2) second highest priority to--
                    (A) providers that meet any applicable criteria 
                established in accordance with subsection (e) and are 
                accredited by the National Association for the 
                Education of Young Children or the National Association 
                for Family Child Care; and
                    (B) at the State's discretion, the spouses, 
                domestic partners, and dependents of such providers.

SEC. 10. ANNUAL REPORT.

    A State that receives funds appropriated to carry out this Act for 
a fiscal year shall submit to the Secretary, not later than 90 days 
after the end of such fiscal year, a report--
            (1) specifying the uses for which the State expended such 
        funds, and the aggregate amount of funds (including State 
        funds) expended for each of such uses;
            (2) containing available data relating to grants made and 
        benefits provided with such funds, including--
                    (A) the number of eligible child care providers who 
                received such grants and benefits;
                    (B) the amounts of such grants and benefits;
                    (C) any other information that describes or 
                evaluates the effectiveness of this Act;
                    (D) the particular geographical areas selected 
                under section 6 for the purpose of making such grants;
                    (E) with respect to grants made under section 7--
                            (i) the number of years grant recipients 
                        have been employed as child care providers;
                            (ii) the level of training and education of 
                        grant recipients;
                            (iii) to the extent practicable and 
                        available to the State, detailed information 
                        regarding the salaries and other compensation 
                        received by grant recipients to provide child 
                        care services before, during, and after 
                        receiving such grants;
                            (iv) the number of children who received 
                        child care services provided by grant 
                        recipients;
                            (v) information on family demographics of 
                        such children;
                            (vi) the types of settings described in 
                        subparagraphs (A), (B), and (C) of section 3(1) 
                        in which grant recipients are employed; and
                            (vii) the ages of the children who received 
                        child care services provided by grant 
                        recipients;
                    (F) with respect to grants made under section 8--
                            (i) the number of years grant recipients 
                        have been employed as child care providers;
                            (ii) the level of training and education of 
                        grant recipients;
                            (iii) to the extent practicable and 
                        available to the State, detailed information 
                        regarding the salaries and other compensation 
                        received by grant recipients to provide child 
                        care services before, during, and after 
                        receiving such grants;
                            (iv) the types of settings described in 
                        subparagraphs (A), (B), and (C) of section 3(1) 
                        in which grant recipients are employed;
                            (v) the ages of the children who received 
                        child care services provided by grant 
                        recipients;
                            (vi) the number of course credits or 
                        credentials obtained by grant recipients; and
                            (vii) the amount of time taken for 
                        completion of the educational and training 
                        programs for which such grants were made; and
                    (G) such other information as the Secretary may 
                require by rule.

SEC. 11. EVALUATION OF HEALTH BENEFITS PROGRAMS BY SECRETARY.

    (a) Evaluation.--The Secretary shall conduct an evaluation of 
several State programs carried out with grants made under section 9, 
representing various approaches to raising the rate of child care 
providers with health benefits coverage.
    (b) Assessment of Impacts.--In evaluating State programs under 
subsection (a), the Secretary may consider any information appropriate 
to measure the success of the programs, and shall assess the impact of 
the programs on the following:
            (1) The rate of child care providers with health benefits 
        coverage.
            (2) The take-up rate by eligible child care providers.
            (3) The turnover rate in the child care field.
            (4) The average wages paid to a child care provider.
    (c) Report.--Not later than 3 years after the date of enactment of 
this Act, the Secretary shall prepare and submit a report to Congress 
containing the results of the evaluation conducted under subsection 
(a), together with recommendations for strengthening programs carried 
out with grants made under section 9.

SEC. 12. AUTHORIZATION OF APPROPRIATIONS.

    (a) Child Care Provider Development, Retention, and Scholarships.--
There are authorized to be appropriated to carry out the activities 
described in sections 7 and 8 $500,000,000 for fiscal year 2004 and 
such sums as may be necessary for each of fiscal years 2005 through 
2008.
    (b) Child Care Provider Health Benefits Coverage.--There is 
authorized to be appropriated to carry out the activities described in 
section 9 $200,000,000 for fiscal year 2004 and such sums as may be 
necessary for each of fiscal years 2005 through 2008.
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